How to Start a Barbershop with Small Investment

Do you want to start a profitable barbershop? Find here a detailed barber shop business guide on how to start your own barbershop.

The barbershop comes under the health and beauty segment. Hence, the business demands specific licenses from the relevant authorities. As a barbershop owner, you will be providing services like shaves, haircuts and grooming services for men.

Generally, there are two ways you can open a barber store. Either as a franchise partner of a reputed brand or initiating your own store. If you are an absolute beginner in this industry, then you must consider starting as a franchise. In that case, the mother company will help you in initiating the business including advertising.

Is Owning a Barber Shop Profitable?

Barbershop is a recession-proof business.  The demand for haircuts is never going to stop irrespective of any season of the year. In addition to this, this business can be started with less investment.

According to the National Association of Barber Boards of America Executive Officer Charles Kirkpatrick, the industry is growing at roughly 10%. Currently, barbering is the fastest-growing profession in the U.S.

When people come in a shop, they just don’t only look better but also feel better. Along with the specific haircuts and treatments, barbershops help in rejuvenating the clients. So, that they can feel stressfree. Today’s barbershops are helping to define, enhance and critique traditional notions of what it is to be a man.

Additionally, a high-end barbershop often offers a wide waiting lounge, TV, WiFi, snacks, drinks etc. And definitely, this type of store has the revenue potential too to attract the upscale consumers who look for a lifestyle destination. Therefore, we can conclude owning a barber shop of any size is a profitable business these days.

Do you Need a Barber License to Open a Barbershop?

This is mandatory. For opening this type of store, you must be a barber first. And if you are not then you can attend specific classes to get the training.

First of all, you must be a legal adult for pursuing barber courses. Additionally, you must have a high school diploma to get the admission. Generally, barber schools teach how to become a professional barber.

After completion of your course, you must gain some practical experience. And after having that, you can apply for a barber’s license. To getting the barber’s license, you will need to apply in the specific application form with fees. Also, the authority may ask you to submit the proof of your practical experience.

After getting the barber’s license, you are now eligible for opening a shop of your own. However, in starting the business, you may need a business license for the commercial operation. Also, you will need to register your business either as a proprietorship or an LLC (Limited Liability Corporation) or as a corporation. Select the form of the organization very carefully.

It is better to consult with a small business advisor before incorporating the company. In addition to that, you will need to secure an employer identification number. Not all states require a salon to have a business license, so remember to check the requirements in your area.

Barber Shop Insurance

Also, buy a right insurance. This is not a type of license, but many states still require it for any business. The most common type of insurance is a general business liability. Actually, it protects your business from any liability claims caused by unexpected events, for example, a flood or a fire.

How to Start a Barber Shop & What do I Need?

Business Plan for a Barber Shop

Crafting a business plan is a must for this business. First of all, conduct a market research in your area. Check the other barber stores and their amenities. Also, check how much they are charging for specific services. These all will help you in determining several aspects of yours.

First of all, you will need to determine the business size. How much space you need for opening the store. And calculate the other startup costs. How you will compete with other stores. Also, plan for advertising and human resources.

How Much Does it Cost to Start a Barber Shop

Generally, the startup cost depends on the several aspects of this business. These are the number of stores you are opening, location, size of your store, amenities you are providing. Also, it depends on the quality of the equipment that you purchase to run the store.

Barbershop Monthly Expenses

Apart from the fixed costs, running a barber shop demands monthly expenses. And you must be prepared for that. Typically, you may need to consider the store rent, utility bills like electricity, telephone etc, employee salary and advertising and promotional expenses.

Location for Barber Shop

As with any other retail store business,  selecting a right location is a make or break decision in this business. Select a location that has a wide visibility. Also, the location must have the potential for sufficient footfalls. And according to your plan secure the space you need.

Establish the Store

After securing the space, you will need to set up the store. For this kind of business, you must prepare a floor plan. It is better to talk with an interior designer. Generally, you will need to provide space for keeping the chairs, storage, a waiting-lounge, and cash counter. In addition to that, your store must have some basic amenities like

  • Hot and cold running water
  • Public bathrooms
  • Drinking water
  • Each barber chair may have a square footage requirement (such as 35 ft2 per chair)
  • Containers for trash and soiled items
  • Cabinets that close for storage of barbering tools and clean towels

In addition to that, concentrate on the color, mirrors, floors and sitting arrangements. Moreover, you must provide a comfortable and relaxing atmosphere for your clients.

Barber Shop Equipment List

Actually, the specific requirement varies depending on the specific services you provide. However, some of the basic equipment lists may include

  • Barber chairs, child seats and seats for the waiting area
  • Scissors, clippers, trimmers, razors, brushes, mirrors etc.
  • Disinfectant chemicals and sanitizers per station
  • Spray bottles, neck dusters, talcum powder, towels
  • Garbage cans for waste products and ‘to be cleaned towels’

Promote your Barber Shop Business

This is a must. Promote the business both online and offline. However, word and mouth is the best way of promotion. You can publish an advertisement in the local print and electronic media. Also, offer opening discounts. Before opening, you must have a promotion plan. Also, use the social media carefully. Create your own business website. Your website must consist of the name of the store, address, contact details and services you provide.

Do you want to start to multiply your income from hair salon? Check “The Complete Guide To Hair Salon profits

Becoming a barber and starting a barber shop is completely two different things. If you have enough passion, dedication, and risk-taking ability, then only it is justifying to start a barbershop of your own.