A barbershop is a valuable part of any community. More than just a place for a haircut and a shave, a barbershop provides a safe space for community building, dialogue on local issues, health matters, sports, and relationships. The bond between a barber and a customer is an intimate one, providing an escape from the daily grind and a chance to build self-esteem through self-care. Perhaps you’ve dreamed of creating such a haven in your community and wonder: How much does it cost to start a barbershop? Let’s explore the expenses associated with starting your own shop vs. investing in and opening a franchise.
Go Your Own Way: How Much Does It Cost to Start a Barbershop?
There’s a lot to consider when starting your own barbershop, and the costs can quickly mount. Typical startup fees can vary depending on your city and state.
Location: You’ll want to find a location that is highly visible, draws foot traffic, has ample parking, and isn’t across the street from the most popular competitor in town. When choosing a location for your barbershop, factor in local expenses like trash collection fees, utilities, local/state taxes, and local wage requirements. And above all, make sure the rent is realistic for your business model.
Expenses: Expenses run the gamut, and you’ll want to be prepared. Insurance can safeguard against unexpected business closures, personal accidents, injury to your employees or customers, and damage. Acquiring the proper licensing and registration for your business is essential; fees vary from state to state but can cost from $25 to several hundred dollars. Once you find your ideal location, you’ll need to obtain permits for your build-out and purchase equipment like barber chairs, barbering tools, mirrors, TVs, and sound systems. Software for business management, bookkeeping, and payroll is another expense.
Employees: To keep your customers coming back, hire the best employees to deliver consistent, high-quality service. Attracting well-trained and experienced barbers, cleaners, receptionists, and managers means offering competitive wages and benefits, bonuses, and time off. A barber’s average hourly salary is $16.12 and varies from state to state.
Marketing: Marketing your barbershop involves more than hanging out a great shingle. You’ll want to promote your business on a user-friendly website, social media, offer business cards, service brochures, and an app where your customers can easily book appointments. You can handle all of this yourself or hire a marketing expert to navigate this uber-important aspect of starting your barbershop. Whether you hire a marketing agency or a freelancer, fees vary widely depending on region of the country, and size and reputation of the agency.
You’ve Got a Friend: Why You Should Franchise
If the answer to your question, “How much does it cost to start a barbershop?” is giving you a migraine, a franchise investment may be the better choice. A franchise investment can be more cost-effective, plus it’s like working with a really smart friend who already knows the ropes. Here are some of the advantages of franchising:
Groundwork laid: When you choose a franchise investment, the foundations of the business plan are solid. Don’t know how to start a barbershop? Don’t fret. With a franchise, that work’s been done.
Business systems: Figuring out the flow of staffing and training, as well finding suppliers for equipment and products, is handled when you make a franchise investment. Apps and websites are up and running.
Branding: Key to starting a successful barbershop is having a clear vision of your brand and who your customer is. With a franchise, the brand has been established and the customer identified. Offering brand consistency ensures your barbershop has a stellar reputation and satisfied customers.
Marketing: Promoting your business properly can eat up tons of time and revenue. Without the research and know-how, you could be spinning your wheels. A franchise offers the needed support for targeting the top markets and customers for your barbershop.
Support: With a franchise investment, you’re never alone. A corporate team is there to assist and train and grow your franchise. Instead of going it alone, you’re a valued member of a community, which is one of the things that attracted you to this barbershop game in the first place, isn’t it?
Learn more about franchising with Scissors & Scotch
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