Owning a barbershop is a profitable way to make money. You can compete with hair salon franchises like Sport Clips and Cost Cutters by providing friendly customer service and a great atmosphere.
Barbershops have evolved. For centuries, they were places where men gathered to get a trim and a cut and socialize. Then, in the Middle Ages, barbers were surgeons because they had the tools and skills to pull teeth and amputate limbs.
Thankfully, those days are past, and nobody will ask you to do much more than cut hair and trim beards. But even though operating a barbershop is much simpler these days, there are still some things you should know before you open your shop.
1. How to Assess Your Risk and Protect Your Business
Every business has risks, including a barbershop. Barbershops are exposed to slips and falls, fires, electrical dangers, hazardous materials, and transmittable illnesses. Therefore, creating a safety plan to address these risks is critical.
Getting the right insurance policies for your business can help you transfer that risk and protect your business when injuries and accidents happen. In addition, business insurance is available for an affordable monthly fee, and it can help you with lost wages and defence costs in you are ever included in a lawsuit.
The best insurance companies for small businesses make it easy for you to get a quote, make payments, and file claims when needed. So get started here and have a quote in less than ten minutes that is tailored to your barbershop.
Risk is unavoidable, and operating your own business can put you at risk of being sued by employees, vendors, or customers when accidents happen. Partnering with the right insurance company protects you and your business.
2. How to Create a Brand For Your Barbershop
You have an opportunity to give your customers more than a haircut. You can provide them with a unique barbershop experience if you want to.
Whatever you decide, to make your barbershop stand out, you need to create a solid brand. Everything a customer sees concerning your barbershop needs to be focused on delivering your brand.
A brand is like making a promise. Your brand says, “This is who we are, and this is what you can expect from us.” You can develop your barbershop brand in several ways.
The name of your barbershop should be the first thing you use to promote your brand. Then, use a mission statement to help you define what your brand’s promise will be. Finally, use your mission statement to fall back on whenever you make key decisions about your barbershop.
It’s also important to create a visual identity. Successful chains do one thing really well: create branding so that everyone recognizes them as soon as they see their logo and brand colors. You can do that with your barbershop, but on a smaller scale.
3. How to Beat the Competition
Before you open your barbershop, you need to do a thorough competitive analysis to determine where you can fit into the market.
After you complete a competitive analysis, you can decide if there is a spot for your business in your area. It can also help you determine how to get your market share.
Is it through offering unique services that no one else does? Are you targeting a specific type of customer? First, you must understand your competitors’ business models and what they charge to gain market share.
Also, look at your competitors’ weaknesses because you will be able to capitalize on those. Avoid competing with them in areas where they show strength. Use Porter’s Five Forces Framework to help you make critical decisions.
4. How to Create a Budget and Control Costs
In the early phases of a business startup, controlling costs can be challenging. You should create a startup budget to help you manage your initial costs. Use a business startup calculator to get some ideas.
You must also develop a budget and keep track of your expenses. You can use Excel spreadsheets, but if you use software designed for small businesses like your barbershop, it will save you time.
Accounting software is more efficient and worth the expense because keeping track of finances is an integral part of your business. In addition, this software has several advantages, like automatic processes and reports that help you control costs and avoid missed deadlines.
Accounting software will make filing taxes easier, help you keep your records organized, reduce errors, and save you time and money in the long run. It’s never a good idea to fly by the seat of your pants, and if you use accounting software, your accountant will love you for it.
Protect and Build Your Business
Anyone who starts a small business knows that you put your heart and soul into it, especially during the first several years. After that, you will work hard to create a unique barbershop with a brand that outpaces the competition.
Protect your investment by getting the proper insurance, and learn to control your expenses by keeping close track of your finances.