What to Consider When Starting a Barber Shop

considerations starting a barber shop hair cut startup company barbering business

According to Forbes, the worth of the barbering industry is expected to be more than $26 billion by 2020.  

The number of barber businesses in the United States reduced by 23% between 1992 and 2012. 

However, since 2013, barbering has become a rapidly growing business in the US and other countries.

Barbershops have now changed from being the forgotten relic to becoming a darling in the male grooming sector.

But as with all things that become a trend, the barbering industry is quite crowded, making it hard to establish a barber business. To succeed, you must create a clear business plan by factoring in all the things you need before you develop your business.

To help you make a better entrepreneurial decision in the barbering industry, we have discussed the main things you should consider before starting a barber shop.


1. Cost

The critical cost components that you must incur when starting a barbershop revolve around the equipment. These include the price of acquiring clippers, combs and mirrors, clipper sterilizers, shampoos, scissors, hair dyes, shaving powders, hair creams, sound systems, and much more.

There are also other barbing supplies and accessories costs which will be determined by the size of your barber shop, customers, and location. For example, this useful comparison evaluates the cost of hair cutting shears.

When planning for the cost, consider the costs of labor, cost of transport, local tax, logistics, the costs of renting or leasing, business incorporation costs, etc. These things need a large amount of capital, especially if you are starting a large scale business. As such, you must have a reliable source of income or investment plan that will support the project.


2. Customers

Who will be your customers? Do you have a specific population target for your barber shop?

The right answer to this question has a huge impact on the other factors that you must consider when opening your barber shop. It will also help you research on the likes and dislikes of your target population.

Consider your preferred customer experience when planning for your customers. Will you provide personal services such as free drinks to improve the customer experience?

Will you offer free massages after a hair cut? Once you figure out what you want, start looking for the right staff and tools.


3. Location 

The location of a business has a direct impact on the expected number of customers and returns. For instance, a barber shop located in a busy town will most likely have more customers as compared to one in a rural area.

Also, locating your business near similar businesses means that the level of competition will be high. You can only survive in a competitive business environment by being creative enough and offering more services than those provided by others.


4. Design

The interior and exterior design of your barber shop should depend on your budget, location, and your personal preference. A luxurious and attractive design cost you more than a simple one.

However, to get the best results, search for the online barber shop interior designs or look for a professional to help you out.


5. Staff / Workforce

You will need to outsource labor if you are starting a large scale barber shop. The essential professionals in a barber shop include barbers, sales agents, cleaners, cashiers, security guards, and the chief barber/manager.

When hiring, you can either rent chairs to independent contractors or hire permanent employees. The independent contractors must assume liability and withhold taxes for all the services they provide in the barber shop. For a small scale barber shop, you can do all the work or hire a single employee.


6. License Requirements

All businesses are regulated by each state's business licensing agency. As the owner or the master barber for the business, you must complete a barbers' training and pass the assessment test to get the business license.

Countries license barbers to guarantee public safety and ensure that the right safety practices and sanitation are availed to clients.


7. Business Requirements

New business owners must have a Federal Tax Identification Number or an Employer Identification Number.

However, the employer identification number is only important if you are planning to hire several employees. You can use your social security number only if you will be working alone.

Some states require all barbershops to have sales and tax identification. For instance, in Texas, all barbers must display their sales permit on the shop.

The sales tax identification number can be used to get supplies for the business at wholesale prices.


8. Website 

The Internet has a significant influence on the success of most modern businesses.

Its usage is also increasing as more people are learning more about it. You should, therefore, consider having a website for your barber website.

The site connects you to both local and international customers, and also allows the clients to leave their reviews. Besides, a website increases the trust and recognition of your business.


9. Marketing

There are various elements of a business that you must set up for easy active and passive marketing. The main one is establishing the brand.

Apart from the logo, you can improve your brand by ensuring that your SEO is locally visible, by using the right tone of marketing, and by treating your clients well. You should also observe what your competitors offer. If they are excelling, find out their marketing strategies and use the same ones.

Don't forget to look for professional marketers and sales agents to market the business on your behalf.

Starting a Barber Shop

A barbershop business idea is an excellent option for people who need to widen their fishing net or employ themselves full time. If you are passionate about the industry, start researching on what you may need.  

The points outlined in this guide will help you with starting a barber shop. Learn also from the experts or from the successful barbers in the industry.

For more information on starting a business, check out our entrepreneurship category page. Our excellent customer service will get back to you with useful advice and answers to all your concerns. 

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