Business

Business plan to set up a barbershop

barber shop

In recent years, a business that seemed from another era has become fashionable again. Between the fashion of beards and the desire of many men to have a male hairdressing service, the demand is very high. For this reason, today, we will analyze the business plan of a very vintage business, the barbershop. A specialized service that seems to be here to stay.

How many barbershops are there in the USA?

There is less information about barbershops, but some sources put the number of establishments dedicated to shaving and hair care for men at 14,000. Assuming they are included in the previous total, they represent 30% of the establishments.

And a simple observation of the premises in the streets shows that, in recent years, it is much more common to see the typical barber’s pole, with its characteristic white, blue and red lines, in shop windows and facades. And it is not a surprise since, at present, 48% of Spaniards have a beard. Of course, many, wear it very short and do not need barber care, but some do.

Profile of the entrepreneur in the business plan of a barbershop

In this type of business, the most common is that the entrepreneur is one of the local workers. Therefore, the required profile is of a person with good treatment and techniques to cut hair or care for the beard.

It is also necessary to be able to follow the evolution of technology and fashion to offer customers the cuts they ask for.

Business approach

There are many ways to set up a barbershop business plan, but we are going to cite the three that seem most frequent:

  • Just beard care. It is a specialized business dedicated to serving those gentlemen with beards and mustaches that require special care.
  • Hairdresser and barbershop. It is probably the most common business model, which allows serving all types of male customers, and not just those men with beards.
  • Hairdressing, barbershop, and aesthetics. It is a new trend, very interesting. More and more men opt for cosmetic care and services such as hair removal. Having an offer that covers all-male aesthetic needs can be a winning bet.

Analysis of competition in the business plan of a barbershop

  • Other barbershops in the area. This is the most direct competition. It is a very local business, as customers seek the convenience of being served close to home or workplace. The price and the treatment are the two elements that will most influence when it comes to standing out.
  • Generalist hairdressers in the area. The vast majority of hairdressers serve both women and men. They don’t usually offer barber services, but since many men just need a haircut, they are in serious competition for the barber service. In addition, it is mostly female attention, unlike barbershops, which men usually run, and some clients prefer it.
  • Hair clippers and tutorials on Youtube. It may seem like an anecdotal competition, but many men do not go to the barbershop or salon because they cut their hair and beards on their own or with the help of family members. It does not take much investment, and there is much information on the Internet to do it correctly.

Customer segmentation

A barbershop client is a man who usually has a beard, although there may also be clients without a beard who just want a haircut. It is a rather young profile, which follows fashion. Many are also athletes. They are generally middle to upper-middle-income earners, especially those with a long beard that requires frequent professional grooming.

Opportunities and risks

The main opportunity in the sector is the background trend that makes men care more and more for their image. They go to the gym, take care of their haircut, and even hire aesthetic services such as waxing. Unfortunately, the male cosmetics and aesthetics market is still far from being similar to the female one. Still, a very interesting potential could mean good future growth for businesses such as barbershops.

The main risk is a change in trend. A few years ago, a few men wore beards. Now they are half, and the trend could be reversed within a while, affecting barber services. However, the demand for men’s hairdressing should not be affected.

Necessary means to set up the business

When considering the business plan for a barbershop, one of the most important analyzes is to see the necessary means to open the business.

It is important to have a place at street level, in a busy area. It doesn’t have to be very big, but it does have to be visible. In most cases, barbershops are much smaller venues than women’s salons.

The necessary material is very similar to that of a hairdresser: chairs, mirrors, hairdressing sinks, and of course, machines, scissors, sterilization material, dryers, computers, POS, and little else.

Communication strategy

How to publicize a barbershop? Several strategies usually work very well.

First, the showcase with the barber pole has to be a claim for all those customers who pass in front of the premises.

In addition, it is essential to have an online presence. Of course, you must register your business with Google for it to appear in local business searches. And it is also recommended to have social profiles on Instagram or Facebook to share photos of the cuts and reach a community.

In the medium term, reputation is the best publicity for this type of business. Satisfied customers recommend the place to their friends and family. In addition, many people leave positive opinions online on the company’s Google profile and social networks or pages specialized in services.

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