If you have ever considered running a barber shop, you’re probably wondering, is owning a barber shop profitable? Well, first of all, this is the first question of any person looking to start a business. Everyone wants to know whether or not their business is going to be profitable.
Well, barber shops have proven to be one of the most successful startups. Well managed barber shops have a lot of opportunities to make a great profit and see success. The key to success, however, is in the planning.
If you want your barber shop to be profitable, you need to know what you’re doing.
Is Owning a Barber Shop Profitable?
Realistically, there isn’t a one-size-fits-all answer to this question. Barber shops definitely have the opportunity to be profitable. However, it does depend a lot on the effort put in.
To open a profitable barber shop, you need to know what you are doing. When considering opening a barber shop business, you need to do the following things.
1. Identify Your Market
Barber shops are known to cater to a massive range of customers. In fact, people from all different backgrounds and ages visit barbers. Many successful barbers have been able to increase their profitability by targeting their services toward certain customers.
For example, older male customers are more likely to buy beard dying services while younger customers are heavily motivated by fashion. Higher-end customers are also likely to pay far more if a barber shop has nicer furniture. It is so important to identify your market so that you can centre your services toward them.
2. Diversify Your Services
An important thing to consider is the services that you are offering. Barber shops that currently offer a larger range of unique services will benefit far more than those offering a small number of common services.
Adding unique services will ensure that you bring in more profit. Some unique services include:
- Eyebrow cutting
- Facial treatment
- Shaved hair designs
These are unique services that people will often travel for.
3. Consider the Location
Location is everything when it comes to owning a barber shop. When asking yourself is owning a barber shop profitable, you need to focus greatly on the location. Your barber shop will need to be located in a convenient place where your target market is happy to go or frequents.
For example, a barber shop targeting businessmen would benefit from a location in the CBD. Shops targeting families would go well in town or near a school.
4. Rent Out Spaces
Is owning a barber shop profitable if you try to do everything yourself? No. Every good barber shop will often rent out spaces to other barbers to ensure success.
The increased traffic will also result in positive traffic entering your shop. In turn, it will be a vibrant and busy space that people want to come to. Offering spaces up for other barbers will often bring their previous clientele as well.
Spaces in barber shops can be rented out weekly, monthly, daily, or even more long-term. No matter what option you choose, renting out a space or two can ensure success most of the time.
5. Payment Systems and Accounting
While payment systems and accounting can be expensive, there are small business loans out there to help you navigate your business startup costs. Business owners who understand the importance of payment systems and accounting are above the rest immediately. In the past, barber shops have simply stuffed money in drawers.
However, payment systems can help automate all of the accounting. They can also offer customers a wide variety of payment methods.
6. Get a Quality Education
If you’re truly wondering is owning a barber shop profitable, you need to consider the variables. For example, nobody wants to get a haircut from someone who has no idea what they’re doing. People who are truly successful in this industry have had a quality education.
To get the best out of your barber shop business, you need to choose a school that will educate you properly to run a business. Not only do you need barber skills, but you will also need business skills.
Is Owning a Barber Shop Profitable for Me?
If you’re willing to put in the hard work and listen to the tips above, yes! Running a successful barber shop is all about putting in effort. If you have ever considered opening a barber shop, now is the time to do it!
If your finances are a concern at the moment, consider getting in touch with ALC Commercial today to get a small business loan or other financial help so that you can open the shop of your dreams. We are here to help you so that you can achieve your goals.