Do you want to start a profitable hair salon business? Find here a detailed barber shop business plan sample checklist for your ready reference.
Generally, opening a barbershop is a lucrative and self-rewarding business for any individual. However, the business demands specific skill, knowledge, and experience. If you are an experienced barber, then only you can think about initiating your own store. Basically, barbershop comes under the health and beauty segment. Hence, the business demands specific licenses from the specific authorities. Basically, the barbershops provide 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.
Market Potential – Is Owning a Barber Shop Profitable?
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 in 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. Additionally, you will learn how to clip hair and gain experience sculpting different hairstyles. Actually, the barber school programs are necessary for getting the certification from the authority.
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.
Is it Possible Owning a Barbershop without Being a Barber?
No, you can’t run or operate a shop without being a barber. Also, all other barbers in your salon will need to have this license to legally work there.
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
Actually, 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, 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 to 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 the name of the store, address, contact details and services you provide.
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 barber shop of your own.