Business Tips: Barbershops: Are Barbershops Profitable?

Barber Shops are some of the most successful start-ups in India. It has tremendously grown over the past decade. It is considered as one of the profitable businesses to start. The key to success is barbershop business plans. Planning is essential while starting a barbershop. If you have a proper system and a well-managed barbershop, the chances are that it would grow and earn large profits for you.

However, profitable barber shops depend on several factors, like location, consistency, work ethic, individual skills, business acumen, professionalism, etc. It all depends on your hard work and how much planning you do. You should know how to open a barbershop and how much to open a barbershop? We will cover everything in this article.

How to start a barbershop?

The steps to open a barbershop are as follows:

1. Identify the market

The first step in starting your barbershop is to make a barbershop business plan and identify the market. Many barbershops have become profitable only by focusing on their target markets. If you try to focus on all the generations of people, the growth might be stagnant. Identify your target market, specifically youngsters. Youngsters are more fashionable, and they like to follow the trends.

2. Location

Another important factor is location. If your barbershop is located in the market, it might attract more customers. More customers mean more profit. So, it is an excellent option to lease a place near the market or a luxurious area where people in business can pay more. If your target market is families, then consider opening a shop near schools.

3. Diversify the services

Diversifying your services allows your customers to have a better experience and the chances are that they will come to your shop again. Adding extra services will increase your profits. You can add services like shaved hair designs, eyebrow shape, facial, trim shave, and cleansing treatments. If you want to make your barbershop more popular and attract more customers, you must change your service style and diversify it as per the trends and requirements.

4. Partnership with Vendors

Many businesses have become successful by adding their retail products to the market for sale. If you have the potential or interest to create new hair products, then you can consider partnering with different vendors to sell your products. It can increase your profits manifold.

5. Rent out spaces

If you have extra space in your barbershop or a spare room at your home or shop, you can rent out your extra space to other barbers. It will create an aesthetic look for your existing shop and attract more customers. It will also increase your profits. You can rent your extra space on a daily, weekly, or monthly basis.

6. Payment Systems

It is highly essential to understand the importance of the revenue stream. In the past, barbers used to stash their cash in a drawer. However, with new technological advancements, automatic payments and services can automate the payment methods. It helps to streamline the payment options.

7. Quality Education

Many universities and colleges have finance, management, and time-related study courses. These courses can help you start a business, take care of your finances, and understand time management’s importance. All the business owners who run successful barbershops have quality education in their specific fields. It allows you to think rationally and intellectually. It increases your profits manifold.

How much does it cost to open a barbershop?

Initially, when you open a barbershop, the expenses would be much less. However, the costs are dependent on your techniques and equipment. If you use a simple hair cutting technique and medium-ranged blades and equipment, then your business’s cost would fall under the range of INR 60,000 to INR 1 Lakhs. The expenses are subject to change. The rent of your shop might increase yearly, and it would directly affect your expenses and profits.

Other than that, you can choose to expand your business once you start earning profits. You can choose a better location and shift there, or you can upgrade your technical skills, or you can gain experience in a related course. Another significant expense includes advertising and promotion. Promotion is an essential step towards increasing profits. You can advertise through social media platforms or by hiring an advertising agency. It might cost you INR 5,000 to INR 10,000 depending upon the type of promotion and how much audience you want to cover.

Some of the other essential expenses include –

• INR 40,000 to INR 50,000 of deposit money for the rented shop is required. Barbershop owners might have to pay this advance deposit. It is refundable once you leave the shop.
• The rent of the place varies from one location to another. You might encounter furnishing and decoration expenses of INR 10,000 to INR 30,000 while opening your shop.
• Other expenses might include salaries of your staff, electricity bill, etc. It might cost around INR 12,000 to INR 20,000.

Thus, to conclude, we can say that a barbershop is a profitable business to start. It requires proper planning and systematic organisation of the business. If you are interested in fashion and the latest trends of good looks, then starting a barbershop business is a great idea for you. This article answers all the questions that might come to your mind related to barbershops, like how much to start a barbershop, or how to start a barbershop, step-by-step process, etc.

Also read:

1) How to open a salon? Here's what you need to know
2) Tips to Understand Your Market while Starting a Small Business
3) Tips for Businesses to Overcome the Covid Blues - Revival Tips for Businesses
4) What are the keys to success when operating a small scale business?
5) OkCredit: All you need to know about OkCredit & how it works.

FAQs

Q. How much money does a barber make?

Ans. The monthly income of a barber varies from location to location. The average income of a barber ranges between INR 20,000 to INR 25,000 per month. However, if you make a proper plan and advertise your barbershop business, you could easily earn around INR 50,000 per month. Some of the successful barbers in the country earn INR 1 Lakhs or above in a month. They further earn from advertisements, affiliate marketing, promoting other brands, and by starting their brand.

Q. Is becoming a barber worth it?

Ans. Being a barber is considered one of the trendiest career paths. It has lots of benefits. You don't have to be dependent on anybody else. You are your boss. It comes with job security. You don't have to worry about answering your superiors. If the business becomes successful, you will have the majority of profits. You can reinvest that amount and expand your business or can launch a hair product. It also gives you room to be more creative.

Q. How many cuts does a barber do in a day?

Ans. The number of cuts in a day depends on your techniques, haircuts, and professionalism. If you are a pro barber, then you can easily do 20-22 standard cuts. You can also do 10-12 full-service haircuts. If you mix both, you can do 12 standard cuts and 4-5 full-service cuts. If you are a beginner, you will be able to properly do 10 standard cuts and 3-4 full-service haircuts. So, it all depends on your cutting techniques and haircut styles. An experienced barber can even cut more than a standard barber.