As of 2021, there are over 109,000 barbershops in the US. While that might sound like a lot, you can’t go wrong with opening one of your own. After all, practically everyone has hair, and they’ll all need to get it cut at some point!
You might have the financial side of things covered, and you might even have some haircutting skills and experience. But how do you go about starting a business?
Here’s a simple guide to starting a barbershop!
Name Your Business
The name of your barbershop is very important. It’ll be what the customers remember you by, so put some thought into it!
Come up with several ideas, as it’s very possible that your favorite is already taken. Once you have a nice list of potential names, do a quick search to see if they’re available.
Come Up With a Business Plan
Having a business plan will give you a better sense of direction. Not only that, but more importantly, it’ll increase the chances of a bank loaning you money.
You’ll want to put down on paper why your business will be successful and what you’re going to do to achieve that.
Form a Business Entity
Next, you’ll need to form a business entity. There are 4 types to choose from: sole proprietorship, partnership, corporation, and LLC (Limited Liability Company).
If you have partners, then you can’t form a sole proprietorship. Otherwise, all 4 are game, so do your research to see which suits you best.
Rent a Location
Hot spots in town will go in a flash, so stake your claim quickly. Not only will you want to rent property that’s in a prime location, but you also want to make sure it’s suitable for the various installations you’ll need, such as numerous sinks and stations.
Apply for Licenses and Permits
Speaking of licenses and permits, you’ll need to apply for them. You’ll need to get:
- An Employer Identification Number (EIN)
- Sales tax permit
- State barber license
- Occupancy permit
Get Financing
If you’ve got the money to start a barbershop on your own, then good for you! It’ll also be a lot easier.
However, most people don’t have the money upfront. If this is you, then you’ll need to present your business plan to lenders to get funding. In general, you need to make sure you have good credit and that you can invest up to 25% of your own money to start this business.
Get Insurance
Like most other businesses, you’ll need insurance to cover your bases. Typically, you’ll need:
- General liability insurance
- Commercial property insurance
- Workman’s compensation
Hire Employees
Lastly, it’s time to hire employees!
You can always put out ads, but if you’re struggling, you can try something like Hair for Hire. This specialized website makes hiring employees easy!
Get to Work on Starting a Barbershop
Now that you’ve learned what starting a barbershop takes, we hope this has given you the confidence needed to bite the bullet. At least get started on making a business plan so you can see if your dream can become a reality!
If you enjoyed learning about how to start a barbershop, then keep reading our blog for more business tips!
