Stepping out on your own and buying a business takes courage, hard work, and persistence. There are many “unknowns” that go along with the responsibilities of ownership, so the ability to persevere and adapt to changing circumstances is crucial to your success.
As a barber shop owner, you should possess the necessary certification, training, and experience that’s required to be able to excel in the industry. It’s also helpful to have a working knowledge of business and financial administration, marketing, and investing.
Finance and statistics
In addition to the costs of getting your barber shop off the ground, the daily expenses of running a small business can make it challenging to navigate short-term gaps in cash flow.
In many cases, banks and credit unions will offer low interest loans to help get your business started. This type of loan can help cover the cost of equipment, staff hiring and training, product inventory, and marketing and advertising expenses.
Visit here to see the approximate price range for barber shops currently for sale.
What to look for in a business
Prior to purchasing your barber shop, you should take the time to develop a detailed business plan that will act as a blueprint of how your business will look and operate. A thorough plan should include the following items:
- Operational values and mission statement
- Hiring process and amount of staff needed
- Training and certification requirements for staff
- Timeline for specific goals and deadlines
- Ideal location, setting, and price
- Cost of furniture, equipment, decor, and supplies
- Financing opportunities
By taking the time to consider these vital elements, you’ll avoid unnecessary pitfalls and sloppy operations that can result from poor planning—and sometimes lead to business failure.
Also, keep in mind that a good location is crucial in this industry. Typically, there are three options for barber shop locations:
Generally, the cost for this location is a little higher than average, but the extra revenue generated by the visibility and foot traffic from surrounding businesses easily offsets the higher cost. When looking at retail areas, consider the vicinity because high-end clothing stores and popular restaurants will attract large volumes of people, resulting in more exposure and growth opportunities for your business.
With this location, you’ll probably have businesses on both sides of your establishment. But, depending on the other stores in the strip mall, foot traffic can easily become walk-in appointments for your shop. Also, if there are schools or community centres located nearby, you can increase your visibility and establish an active presence in the local area by offering promotions and sponsoring events.
Starting a barber shop in a shopping mall can be expensive. If this is your top choice, be sure to do your research and fully understand all policies and regulations as there are usually strict guidelines for operations and advertising. Once you’ve narrowed in on a specific location, evaluate the surrounding area, and ask yourself the following questions:
- What is my competition, and how can I do things differently to stand apart from them?
- How affluent are the local homeowners, and what should my price points be for services and products?
- How visible, accessible, and convenient is my barber shop?
Licences and permissions
Licences can vary from state to territory, so it’s extremely important to seek help from your local council and do research to make sure you’re legally compliant. Depending on the type of shop you’re opening, you may need to acquire some of the following permits or licences:
- Business operation license
- Certificate of occupancy
- License to sell retail
- Liquor licence
- Food or beverage licence
- Building and fire department permits
- Training certificates
In addition to licences and permits, you will also need to stay abreast of all government standards regarding proper hygiene and sanitation as well as the handling and storing of hazardous chemicals.
It’s vital to take the time to conduct a thorough due diligence of the barber shop you’re considering.
A helpful tool to assist you is this handy government guide that includes information such as potential startup costs as well as a checklist of various items to consider throughout the buying process.
It’s simple. The more time and effort you spend conducting due diligence, the more prepared and successful you’ll ultimately be.
Taking the leap
One important thing to remember is you do not have to go through this journey alone. Hire a professional broker with experience in the barber shop industry to alleviate stress and to provide you with valuable tips and advice.
If you’re ready to move forward and find the barber shop that’s perfect for you, we’re here to help! Visit here for a detailed list of the barber shops available for sale in your area. Want to have a look at other businesses for sale? Take a look here.