Are you considering opening a hair salon as a self-employed person but you don’t know how to start? Do you have several practical questions in your mind? You’re on the right page. Today, we’ll discuss in detail how you can create a successful barbershop business.
Barbershops have long been a popular destination for men and boys looking for a standard haircut. Many barber shops offer personality grooming services such as manicure, pedicure, and shaving, haircut, and nail treatments. Some barber shops also provide hair coloring services. Between 2008 and 2018, the employment rate among friends is expected to increase by 12%. In 2018, 728k people were employed in a barbershop. This business is rising due to the increasing demand for hair care and maintenance services. Barbershop owners often enhance their business profits by giving extra services.
Start a Barbershop business by following these steps:
Are you ready to accomplish your dream of starting your own business? Great! Now take the next step. Businesses can’t just be run just by registering with the state. It needs a lot more effort. In this article, we’ll help you with how you can run your business successfully. The following steps will ensure that your new business is adequately planned, properly registered, and compliant with the law.
1. Do market research to refine your idea.
As an entrepreneur, you need to understand your industry and market conditions fully. Who are the other players in space? Where is the industry going? These are some questions that you should have to answer.
Find out how many franchises are in business, what services they offer, and how they operate in different ways. Also, find small, successful independent stores and find out what styles they use to deliver their services. Besides, find out how they market their brand and innovate in the space. Pay close attention to the business model, supply chain, and quality of service.
Conduct national and local research in the national store industry. Look at the revenue and average income in your area. Competition can also help.
2. Layout your business plan
A clear and precise barber shop business plan is essential for the success of all types of businesses. This will help you eliminate fear, map business features, and find the unknown. Here are some key aspects to consider:
- What are the starting and running costs?
- Who is your target market?
- How much can you charge customers?
- What do you call your business?
Your business plan must have:
- General description of your future plans.
- Expected time of completion of your barbershop.
- Marketing strategy, including ways of your advertisement on social media.
- List your essential staff and sources of your revenue.
- Cost of technical equipment.
- Financial plans
- Approximate payback and competition in your area.
3. Cost of your barbershop business
Proficient Barbershop owners recommend a minimum investment of $150,000 to $200,000. Include the following:
- Attend hairdressing school: $6,500 to $10,000
- Office space: cost varies by location.
- Construction costs should be up to your current plumbing and electrical standards.
- Licenses and permits
- Insurance – speak from licensed agents to determine which of the policies suitable for your business-$2400
- Marketing content – $3,000
- Store supplies Cash registers, business management software, indicators: $14,000
- Store inventory: Mirrors, combs, chairs, baby seats, towel, Trimmers, razors, scissors, clippers, brushes, shaving powders, hair creams, skincare products, etc. $15,000 to $ 20,000
- Furniture and essentials: $5,000
- Business Website – $1,500 to $3,500
4. Find your barbershop Location
It is advisable to find a busy plaza or shopping center. Finding a place with a lot of human traffic will dramatically increase your earning potential. Keep in mind that having a store in your city in a central location in a large city will be subject to a much higher rent than any location in rural areas.
The size of the stores will depend on the type of store you want to build. If you’re going to run a small intimate business that aims to make a very loyal customer base, a small space with only two seats will do!
5. Create a legal entity.
Starting a business with a legal entity provides you liability protection and saves you money on taxes. You have four feasible legal frameworks for choosing your shop: sole proprietorship, common partnership, limited liability Company, or joint-stock Company.
Most of the entrepreneurs choose LLC for their barbershop business. It protects you from personal liability. LLCs are more resilient when it comes to taxes, but it can be tricky to set up.
6. Choose your company name.
Create name ideas with the Business Name Generator. Limit your choice of soliciting feedback from potential customers.
Once you’ve chosen a name, go to the next step, and protect your company name and logo from trademarks.
When registering a business name, we recommend checking your business name by:
- Register your state business model
- Federal and state trademark records
- Social media platform
- Web domain availability.
You should secure your domain name before anyone else does.
7. Obtain an EIN and set up the legal and financial basis.
An EIN, or Federal Tax Identification Number, is assigned to businesses through the IRS. If you hire staff, you will need an EIN.
Opening a professional bank account separate from your personal accounts save you from any liability. And it gives you access to professional banking services.
8. Buy business insurance.
Business insurance is vital to protect your business from losses caused by lawsuits, fire, flood, theft, etc. In a nutshell, it allows you to operate your business safely and lawfully.
9. Promote and market your Barbershop
To introduce yourself to the community, consider holding an opening ceremony. Leave nearby businesses and homes flying. Community newspapers, local television stations, and radio stations are also great sources of marketing. Promote the program in advance and make special offers to people who mention your children.
Having a basic website and social media presence should be part of your marketing strategy. Find blogs related to your niche that your client can read and advertise on these websites. The National Barbers Association provides marketing opportunities for hairdressing professionals. It is a great way to stay on top of modern industry trends.
10. Establish your presence on the web
A professional website allows users to learn more about your barbershop and the services you offer. You can also use social media accounts such as Facebook to entice new clients or subscribers.
Now you know how to start a Barbershop.
Are you ready for the opening work? Creating a one-stop-shop can be difficult. As you can see in this article, there are several steps you can take to begin the process of preparation for mediation. That being said, if you are highly skilled and passionate about your job and want to provide multiple services, this project will cost more than that.
We hope the above points explain this to you and help you take the first steps to open your barbershop door.