Starting a barbershop is a great way to create connections with your customers and generate an income. A barbershop is a good business venture to start in the U.S. You can express your creativity by making your clients look neat. Many barbers have made a career in the industry and you too can succeed in the barbershop business. This is how you can get started.
Carry out a Feasibility Study
Before opening a barbershop business, you need to do a feasibility study. Get to know the market demand, business risks and opportunities. It will help you to plan your business and also maneuver through the competition. When carrying out a feasibility study, look for suitable areas you can open a barbershop. Also, window-shop for barbershop equipment for your business.
Read also: How to start a clothing store in the U.S.
Draft a Barbershop Business Plan
A business plan is very critical for the success of any business. It is a blueprint that every business needs before and after launching. If you have carried out a feasibility study, it easy to write a business plan since you have facts and figures. A good business plan should have startup costs, target market, competition, business location, risks and opportunities.
Your business plan should have a pricing criteria for services you will be offering. Using the pricing criteria, determine revenue projections at the end of the month. It will help you determine if your barbershop business will be profitable or not.
Find a Suitable Barbershop Business Location
The success of any business is partly influenced by business location. You need to find a good business location that is convenient and accessible by your clients. The business location should have high on foot traffic. You can set it up in a densely populated town or city. It will give you a share of customers to be visiting your shop.
Acquire Barbershop Business Licenses and Insurance
You need to make sure that you are operating a legal business. Each State has laws that govern business operations. You will therefore need to check with your local governing authorities about the business permits you need for a barbershop.
At the minimum, you will need the following business licenses in any State you want to operate a barbershop.
- Employer Identification Number (EIN). You need to get EIN if you plan to employ a worker in your barbershop.
- Business licensing and registration. You need to register your business and get a licenses in the State, City, or town in which you are operating your business.
- Inspection. In some States, every business must be inspected by the health department before its launch.
- Tax collection. You will need to open a tax collection account to ensure that your barbershop pays taxes to the State.
Read more: How to register a business in the U.S.
Services to Offer in Your Barbershop Business
You can offer the following services in your barbershop. Decide on the price of each service.
- Straight razor shave
- Trimming beards and mustache
- Trimming eyebrows
- Cuts and fades
- Professional braiding
Cost of starting a barbershop Business in the U.S
The cost of starting any business depends on its location and size. An average barbershop will cost you around $75,000. The following is a capital breakdown for a barbershop business:
- Barber training - $6,500
- Barbershop equipment - $4,500
- Barbershop chairs - $5,000
- Furnishing - $5,000
- Signage and marketing - $2,000
- Shaving inventory like shaving cream - $1,000
Is a Barbershop a Profitable Business in the U.S?
With a good business location with a large flow of customers, the barbershop is a profitable business in the U.S. A neck shave costs around $10 on average, while a hair cut costs between $30 and $70, depending on your business location. With this pricing and regular flow of customers, you can generate enough revenues to meet your operational costs and retain enough profits.
Read also: How to start a gym business in the U.S.
Challenges to Expect in the Barbershop Business
Any business has its challenges. However, challenges should not deter you from starting your barbershop business. Among the challenges, you can expect include competition from already established businesses. To win the competition, offer excellent customer service. This way, you can create a brand for excellent hair styling services.
The other challenge you may face is an economic downturn. Businesses like barbershops do not have a particular way they can retain customers. You need to create connections with customers and make friendship. Also, make sure you are up to date with the industry trends. Customers want to get the latest hairstyles and if you are not up to date with the trends, you can lose customers.