Remember those old barbershops with the red, white, and blue poles outside? Some are still places where people chat and laugh. Others have evolved into these fancy retreats where a simple haircut feels like a day at the spa.
Think about this: if you’re good at cutting hair, why not start a barber shop? One that’s a reflection of who you are and what you love.
Since 2013, the grooming industry has been steadily improving. This means a well-run barbershop can be a profitable venture.
But starting a business is hard. It’s like learning some dance moves. If you’re wondering how to start a barbershop. Dive in, and we’ll guide you through the steps.
According to the US Small Business Administration (SBA), the startup costs for barbershops typically sit between $50,100- $148,400. This includes barber school fees. So, if you’re already trained at a barber school, it’ll cost less.
Now, what do you need to open your shop? Here’s a simple list:
To learn more about how much it costs to start, check out the startup costs for launching a barbershop.
Before diving in, you must draft your barbershop business plan that outlines all these costs.
The earnings of a barbershop business can vary based on several factors. Most barbershop owners rent out chair space to independent contractors, who then pay a percentage of their haircut earnings for the space.
As per IBIS World, a barbershop typically makes a profit of 10-20% of its total sales. On average, as of 2022, a barber shop owner in the United States earns about $53,654 annually. However, earnings can differ state by state, influenced by population and local business dynamics.
Starting a barber shop business offers flexibility and networking opportunities, but it also comes with challenges.
Having weighed the pros and cons, let’s now dive into our comprehensive, step-by-step guide on how to establish and run a successful barbershop.
Table of Contents
It’s essential to do market research to determine who your customers will be—whether it’s men, women, kids, families, or anyone with hair.
With that being said, here are some significant trends and statistics that you should know about:
Barbershop Industry Size: The US barbershop market will be worth $4.9 billion by the end of 2023.
Growth History: The industry’s annual revenue has grown by 1.5% since 2017.
Future Growth: The barbershop business and beauty salons are predicted to grow. According to IBISWorld, there’s an expected 19% annual growth in job openings for barbers and related professions through 2030.
Business Numbers: The US has over 107,000 barber shops.
Employment: Barber shops employ around 135,000 people in the US.
Technology and Innovations in Barbering:
Challenges in the barbershop business:
Who works in barber shops?
Gender: Most barbershop managers (75%) are male, with 25% female.
Education: About 35% of these managers have a high school diploma.
Age: On average, a barber shop manager is 41 years old.
If you’re starting a barbershop, one of your first tasks will be to come up with a business name for it. This can be a challenging process, but here are a few tips to make it easier:
Once you’ve settled on a name, check its availability on the US Patent and Trademark Office website. Additionally, see if the related domain is available, preferably with “.com” or “.org” as they are more credible.
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Making the right decision about your barbershop’s location is essential. The location can significantly impact the flow of customers and the returns on your investment.
When looking for a location to start a barbershop, choosing a place in a densely populated area with a high demand for men’s haircuts and grooming services is important. This could be near residential places or commercial complexes. You can use online platforms such as Craigslist, Crexi, and Instant Offices to search for available commercial spaces for rent in your area.
Be sure to pick a spot with excellent visibility to draw walk-in customers. Additionally, consider the presence of complementary businesses like beauty salons or men’s clothing stores. They can boost the number of people passing by your barbershop.
Lastly, Think about your crew. A place that’s easy to get to has local amenities and ample parking. It’s not just a win for customers; your team will thank you, too.
Here is the list of the best states for opening a barbershop:
| State | Annual Salary |
|---|---|
| Illinois | $49,408 |
| West Virginia | $45,027 |
| Minnesota | $48,238 |
| Washington | $54,813 |
| Ohio | $43,111 |
| Connecticut | $46,379 |
| Vermont | $45,871 |
| Colorado | $43,988 |
| Kentucky | $42,289 |
| Maine | $50,004 |
Alright, here’s the deal: skills and experience? Check. But what’s the game plan? Crafting a rock-solid barbershop business plan is like cooking a master recipe – every ingredient matters.
Here’s what your barbershop business plan should include:
Crafting these sections with accuracy isn’t a simple task. It takes a lot of time, a keen eye for details, and ongoing hard work.
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Alright, diving deep into setting up your barbershop, one of the important aspects to nail down is your service menu. This isn’t just a list—it’s the heart and soul of what you’re offering. Here’s what you should have on your radar:
First and foremost, deciding on your business entity structure is crucial. If this is your maiden venture into the barber shop business, you have several entity options to consider:
First and foremost, deciding on the structure of your business is crucial. If this is your maiden venture into the barber shop business, you have a few options:
Many experts, including those from reputable sources like Forbes, often recommend selecting a business entity such as a Limited Liability Company (LLC) structure. It shields your personal assets from potential business debts and offers tax benefits.
With your business entity decided upon, especially if you’re leaning towards an LLC or Corporation, you’ll need to appoint a Registered Agent.
They are responsible for receiving and responding to official communications and legal documents on behalf of your barber shop.
An individual or an agency must be based in the same state as your business.
Next up is registering your barber shop with the state. Procedures vary depending on your state’s requirements, so it’s good to be thorough. Typically, you’ll liaise with your state’s Secretary’s office.
During this phase, you must also get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Think of this number as a unique identity for your business. This number is significant for tax-related matters and opening a business bank account.
Lastly, let’s not forget about taxes. Make sure you’re registered appropriately for both state and federal taxes. This includes the usual suspects: sales tax, income tax, and employment taxes if you’re bringing some skilled barbers on board.
It might sound a tad complex, but having a registered agent by your side can make it flow much smoother, helping you navigate local laws and regulations.
If you’re taking steps on how to start a barbershop, you’ll soon realize that paperwork is an essential part of the journey. So, let’s get down to business!
First, it’s crucial to know that every barber shop business, or most small businesses, needs licenses or permits to kick off. The specifics might vary based on where you set up shop and local regulations.
At the state level, barber shops are usually under the microscope. But diving a bit deeper, here’s what you might need:
Finally, a word of advice. Go through your state and local websites meticulously. They’ll guide you on the exact licenses and permits for your area. And, since paperwork is a recurring part of the barbershop business, keep track of renewal dates to ensure smooth sailing. Remember, staying compliant is a big part of running a successful business.
Starting a barbershop isn’t just about sharp scissors and comfy chairs. To ensure your barbershop thrives, you need to think about the unforeseen. This is where business insurance comes into play.
While diving into how to start a barbershop, you’ll discover that insurance is your safety net. It’s there to catch you when unexpected hiccups threaten your dream. Now, there’s a variety of insurance types to consider:
Apply for a business bank account to keep your barber business finances clear and separate from personal assets. It’s like keeping your hair-cutting scissors separate from the ones you’d use for crafts. It ensures clarity and safety!
Here’s the simple breakdown:
A business credit card linked to your business accounts is not just about separating expenses. Business credit cards can also open doors to helpful funds like small business loans down the road.
Starting a barber shop requires an investment. It’s not just about getting a space and setting up chairs. You have to think about the tools, like clippers and scissors, and there are fees for licenses, insurance, and registrations. So, how can you get the funds to kick off your barber shop business?
Here’s the scoop:
When asking folks to invest in your barber shop, they’ll want to know the details. Where’s it located? What services will you offer? How will you handle business expenses? Your business plan should have all this info. So, make it detailed and be ready to share. The more precise your vision, the more likely people will want to join your barbershop journey.
Starting a successful barbershop business requires more than just a great location and equipment; it’s also about the people. Your team will be essential in how customers view your barber shop. So, who should be part of your team? Here are the roles that you should include:
You might hire all of these people, or just some, depending on how big your shop is and what you need. Sometimes, you might have one person doing many jobs or many people doing one job.
To find workers without spending money, you can put job ads on places like LinkedIn, Facebook, or Jobs.com. If you want to spend a little, you can use websites like Indeed, Glassdoor, or ZipRecruiter. If you have some extra money, you can also get a special company (recruitment agency) to find workers for you.
Before you launch your barbershop for customers, here are some things that you need to take care of:
Before opening the doors to your barber shop, ensure you have the right tools in place:
In today’s digital age, having a business website is crucial for any barbershop business. It’s not just about online visibility; it’s about building a brand and reaching a wider audience.
Here’s what your website should have:
Running a barber business can be complex, with numerous roles to juggle. Thankfully, the digital world offers tools to make tasks easier:
Consider using management software. These tools can assist with appointment scheduling, customer data handling, and invoicing.
A good marketing strategy is vital for both new and established businesses. It can expand your reach through digital platforms and bring in more customers.
Here’s how you can do this:
With a good business plan, you have a better shot at getting the money you need to start your shop.
Now that you know the ins and outs of opening a barbershop, you can transform your shop into a bustling hotspot for fresh cuts and shaves.
Ready to take the leap? Use our barbershop business plan template to ensure you’ve thought of everything and get your barbershop ready for customers.
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