How Much Money Do You Need to Start a Barbershop Business?
How much does it cost to open a barbershop? What does it take owning a barbershop without being a barber? Do you need a barber license to own or open a barber shop? Is owning a barber shop profitable?
Starting a barbershop business although quite lucrative has its own challenges, as well as opportunities. For the person interested in starting this business, this article seeks to provide the necessary details regarding the cost implications of starting this business.
We will not end there, as we would also highlight other requirements needed for the success and smooth running of your barbershop.
A barbershop essentially provides haircuts to clients who would need a shave or may need to trim their hair. Men are the primary focus here, as they form the bulk of clients who patronize barbershop. The cost implications of starting one may largely depend on the size or scale of the business, as well as the equipment and the location.
These primarily affect the cost of starting a barbershop. So I need how to start a barber shop what do i need?
1. Initial Requirements
When starting a barbershop, there are immediate requirements which you must meet. First, the passion and desire to start the business must be there. The passion and desire you have will sustain you through times of difficulties which may be experienced as a result of teething problems faced by the business.
Apart from having this basic ingredient, you also need to possess good barbing skills, as anything short of this is not good enough.
An exception to not having adequate skills is to hire skilled barbers for your barbershop. Although this may seem off from the onset of the business, however, if the barbershop is a large one, then you need to hire more experienced barbers.
If you do not possess the required skills, you may want to enrol in a barbing school, or learn at other barbershops.
2. Obtaining Licensing for your Business
Do I have to have a barber license to cut hair? There is some form of licensing provided by a board which may oversee or regulate the activities of barbers.
Before this is issued, it is expected that you should provide a proof of your practice and skills. This is a way of providing recognition to your business, and building trust in potential clients regarding your services.
How much does it Cost to Start a Barbershop? Barber Shop Monthly Expenses
This is the central discussion of this article. The cost implications of starting a barbershop may vary depending on the location of the business, the scale of the barbershop, and the type of equipment needed.
Depending on your need, the cost of starting a barbershop business differs significantly based on the above reasons. However, there is a cost range or estimate associated with starting a barbershop in America. Typically, the cost may range from $80,000 to $200,000.
The startup capital for the business is used in renting an outlet (this may either be costly or moderate depending on location: It costs higher to rent a business outlet in affluent areas, as opposed to other low-cost areas which cost far lesser), the purchase of equipment as well as furniture. Some of these equipment include clippers, combs, scissors among several other equipment and tools.
Apart from the startup cost, there are also other associate costs which you may incur in the course of obtaining licensing. This may come from the barber license, the cost of which may range from $50-$200 dollars. Also if you do not have the required skills, but are interested in learning these skills, a barber school may cost you some money.
Depending on the type of school you enrol in, the cost implications may range from $1,000 to $5,000.
3. Raising the Investment Sum
Before starting the business, raising the required sum of money is necessary to the success of the business. If you can’t raise this money from personal savings, then you may want to consider obtaining loans from lenders. These may either be financial institutions such as banks or may be individuals or investors who may be interested in providing funding for businesses. A common characteristic with all lenders is that interest rates are attached to the services they provide.
You may want to be careful in choosing or selecting a lender. It is advisable to get detailed information from different lenders about their terms of agreement. This gives you a better picture which is most favourable to your business.
4. The Choice of a Business Location
When selecting a location for your barbershop, you should choose the most suitable location which would increase the chances of higher patronage. These are normally areas with high human traffic. Such places are likely to considerably increase patronage.
Making the choice of a business location is very important to the success of your business. On the other hand, some other locations may impact your business negatively.
Another factor with the choice of location is competition. It is important that this forms a major selection criterion for a location for your barbershop. Locating your barbershop in an area where there are several other barbershops may attract stiff competition.
Starting a barbershop depends on what you are interested in. These decisions, at the long run may either impact your business positively or negatively.
This article has looked at the question “how much does it cost to start a barbershop?” The cost implications as well as other necessary information have been provided to guide the entrepreneur willing to start a barbershop.