You’ll probably need around $150,000 to $200,000 to get started, depending on how expensive things are, where you get them from and how many supplies you need to get. Space must be up to current electric and plumbing standards. Depending on you, you should either first save up this initial investment, or speed things up with a business loan. To form your own business, you will likely need to expand into hiring employees then you can consider making them salary, commission, or booth/chair renters. Renting Barber Chairs/Booths If you take this approach you will have a more hands-off approach to running your overall barbershop, leaving you with more time to focus on your own clients while you are guaranteed a fixed amount of income from your tenants. With happy employees or chair renters, you are more likely to retain talent over the long-term and the clients who come into your shop will also appreciate a workplace that exudes satisfaction. Partnership This can also be a successful combination, where you manage the barber aspects of the shop, while your partner managers the business end of things. Or Cooperative Model, you can arrange a system where your employees get a bonus when your barbershops profits exceed expectations in a given year.
Process: Plan your Business
You have found the perfect business idea, and now you are ready to take the next step. A clear plan as a business leader is key to your success. This allows you to define the details of your shop and figure out unknowns like What are the running costs and start-up? Who’s your target? And How long it will take you to break even?
Costs involved in opening a new branch of SRB
Permits and licenses for the new location
Insurance – speak with a licensed agent to determine what policies you need $2,400.
Marketing materials – $3,000
Shop equipment – cash register, business management software, signage – $14,000
Shop inventory – chairs, child seats, clippers, scissors, trimmers, razors, brushes, mirrors, shaving powder, hair cream, after shave, cleaning supplies, etc. – $20,000
Furniture and miscellaneous necessities – $5,000
Website – $1,500 to $3,500 or you can use some talented student to do it for you in a cheaper cost
The ongoing expenses
Rent, phone, Internet, and utilities
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.
Systems and Structure. Your target market Mainly will be adults, college students. You will have a younger boy who wants a haircut from time to time. Your customer base includes people who value the craft of a barber and enjoy the camaraderie and social atmosphere that the shop provides.When it comes on charging your customers The prices depend on the goods, location and skills you offer. you can make your business more profitable, you can offer additional services, such as facials, hair coloring and custom hair cutting. Have a retail area that includes hair gel, rasers and brushes. Providing a handheld barber service.
Open a business bank account & credit card. When your personal and business accounts are mixed, your personal assets are at risk in the event your business is sued. Get a business credit card, this helps you separate personal and business expenses by putting your business expenses all in one place.
Skills and experiences that will help you build a successful business log a certain number of training hours, ranging anywhere from 800-2,000 hours.
The ability to listen is just as important as conversing. Entrepreneurs who are willing to invest time and resources have the potential to expand their venture well beyond their primary location.
Defining your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. Promote & market your barber shop: Community newspapers, local TV stations, and radio stations are also a great marketing resource. They are also a great resource for keeping up with the latest in industry trends. Keep customers coming back. Word of mouth is often the best marketing tool in the service industry. Try to offer each customer an outstanding customer service. Encourage employers to give a referral discount to their friends. Most barbershops have kept clients effectively by providing regular membership or discounted days. Establish your Web Presence. A business website allows customers to learn more about your company and the products or services you offer.