Thinking about opening your own barbershop? The men’s grooming and barber industries have been growing in recent years, so it’s an exciting time to start a business in this field. Whether you’re brand new to the industry or have owned or worked in a barbershop before, there are a few things you can do before you open to set yourself up for success.
To help you get your bearings, we’ve pulled together some key tips to help you ensure your business is primed to attract customers and make sales from the start. Here’s what you can do to get off to a strong start:
- Know your market
- Clarify your niche
- Decide on services and prices
- Create a budget
Know your market
One of the first and most important things to do before starting your barbershop is to research and understand your market. This means understanding your competition so that you can stand out among them.
To do this effectively, start researching the barbershops in your area. Here are a few key things to look for: what kinds of services are offered, how the services are priced, what types of clients are served, and what types of spaces are used. While this isn’t an exhaustive list, it’ll give you enough information to get started on your own business plan and understand what the competition looks like.
Clarify your niche
After you’ve done your market research, you’ll be in a great position to clarify your niche and value proposition. Your niche is a specific sector of the market that you focus on, which makes your marketing easier and increases your chance of success. Focusing on a niche makes the customers you target feel like your offerings are tailor-made for them (rather than trying to appeal to everyone), which makes them more appealing. Additionally, if you choose a niche that not many others in your market have, this will decrease your competition and make it easier to be seen as the “go-to” barbershop for that niche.
Your niche can be based on any of the following: type of service, price and/or quality of service (luxury vs budget), target demographic (age, location, community membership), or target psychographic (values, interests, attitudes).
Having a targeted niche not only makes your business more likely to be successful from a strategic standpoint, it also makes your marketing decisions easier by providing direction and clarity. When you have an ideal client in mind, you create all your marketing materials and strategies based on them, which cuts down on overwhelm and gives you an idea of how to best direct your efforts. For example, if you provide a specific type of cut, make sure you advertise that on your website and social media to attract the right client.
Decide on services and prices
Having a clear niche will also make it easier for you to decide on your services and prices, which are another key element to get clear on before opening your barbershop. When choosing services and prices, consider what your ideal customer is interested in, the local market, and the level of service you offer (e.g. premium vs. budget). You’ll also want to consider your own skills and interests, and those of your team (if you have one). The best selection of services will be one that’s at the intersection of what you/your team excel at and like to do and what your ideal customers want, so aim for this in deciding what you’ll offer. It’s a good idea to focus on quality over quantity here – you’ll be better off focusing on doing a few things well than spreading yourself too thin and outside your expertise by doing too much.
Create a budget
Once you’ve completed market research and decided on your services and niche, you’ll need to create a budget to plan for how much you’ll need to invest, how much you’ll need to sell to be profitable, whether you need a loan, etc. Having a budget in place will give you clarity on what you need to do to reach your financial goals and allow you to plan for unexpected circumstances with peace of mind. Read our article for 5 simple steps to creating a budget.
When deciding what to include in your budget, consider the following factors, among others:
- Cost of registering your business
- Furniture
- Rent for space/barbershop studio
- Business website
- Insurance
- Licensing costs
- Marketing materials
- Inventory and equipment
It’s normal for these costs to shift and fluctuate over time, so aim to give yourself some financial cushion when creating your budget to account for unexpected expenses or changes in the market. Continue to research to see where you might be able to cut costs or use your resources more efficiently.
A barbershop is a great small business opportunity, especially as the men’s grooming industry continues to grow. Use this guide to get clear on your goals, and set your new venture up for success before opening. Additionally, read our article on what mistakes to avoid when starting a new business.