Barbershops provide men and boys with grooming services, such as haircuts and shaves. They are small shops that specialize in cutting men’s hair and shaving the neck and face. Since the times of ancient Rome, approximately 296 BC specifically, the barbershop has been known as a place to socialize in the neighborhood. It is a place for men to network and connect with others in the community.
Learn how to start your own Barber Shop and whether it is the right fit for you.
Start a barber shop by following these 10 steps:
- Plan your Barber Shop
- Form your Barber Shop into a Legal Entity
- Register your Barber Shop for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Barber Shop
- Get the Necessary Permits & Licenses for your Barber Shop
- Get Barber Shop Insurance
- Define your Barber Shop Brand
- Create your Barber Shop Website
- Set up your Business Phone System
What are the ongoing expenses for a barber shop?
There are a number of items you should budget for to properly run a barbershop:
- Rent, phone, Internet, and utilities
- Marketing materials and campaigns
- Insurance
- Replenishing of both professional and retail supplies
- Regular cleaning and maintenance of shop and barber equipment
- Payroll and taxes – To reduce this expense, consider hiring barbers as independent contractors. They will compensate you for use of your chair by either paying rent or a percentage of their income. Commissions range from 30-70% of the barber’s profits.
Who is the target market?
Your customers will primarily be adult males. From time to time, you will have a younger boy customer in need of a haircut. Your client base will be comprised of individuals who appreciate the artistry of a quality barber and enjoy the camaraderie and social atmosphere that a barbershop offers.
How does a barber shop make money?
A barbershop makes money by charging a fee for services provided.
How much can you charge customers?
Pricing varies, depending upon the services you offer, your location, and experience. Neck clean up prices average $10, while haircuts can range anywhere from $20-$90.
How much profit can a barber shop make?
The average annual profit for a barber shop owner is $35,000. Many have reported profits of $70,000 and higher, depending upon location and the number of barbers they employ.
How can you make your business more profitable?
Barbershop owners suggest the following strategies to increase annual profits:
- Offer additional services, such as facials, hair coloring, and custom design haircuts.
- Have a retail section that includes products such as hair gel, razors, and brushes.
- Offer a mobile barber service