Are you planning to start a barbershop? Not sure about how much money to invest? Find herein this article, a startup guide on types of cost factors and an approximation on how much does it cost to start a barbershop.
There are many types of barbershops that operate in your nearby locality. It can be a street-side barbershop or a standard professional high-end barbershop. If you want to start a standard barbershop, you should be prepared to invest a reasonable amount. Existing successful barbershop owners suggest that an amount 0f $1,00,000 to $2,00,000 is needed to open and run a fullfledged standard barbershop. Before diving into the actual cost, let us first understand the areas where you need to invest in starting a barbershop.
How Much Does it Cost to Start a Barbershop – Cost Types
1. Training Fees to be Certified Barber
If you are planning to start a barbershop, it is advised that you yourself get trained as a certified barber. There are many reputed training institutes that provide certificate and diploma courses on barbering. Understanding the various aspects of barbering is extremely critical in starting and running a successful barbershop business.
2. Cost of Barbershop Retail Space
The success of a barbershop largely depends on the location of the retail space. Space must be located in a place where most local people can visit at ease. The cost will depend on the place you choose. So, as per budget, choose the one which is best as per your budget.
3. Cost of Designing and Interior Decoration
The barbershop studio must provide a good and comfortable ambiance to the customers. You need to talk to a local interior decoration consultant and take a quote from them.
4. Registration Cost for Barbershop Company Formation
For a legally compliant business, it is mandatory to register your barbershop company. The business structures provided differ from state to state and countries. Talk to a local attorney and select the most-suited structure of your barbershop company as per the resources and scale of your business.
5. Licenses & Permits Cost
Like registration of a company, licenses and permits also differ state and country wise. You need to talk to local competent authorities and get the required licenses and permits need to start a run a barbershop business.
Suggested Read: How to Write a Barber Shop Business Plan
6. Business Insurance Cost
Getting your barbershop insured is another aspect you must take seriously while starting a barbershop. This is because customers might get injured while availing of the services provided by you. Business insurance also works as a safety net in case of any unforeseen unfortunate incidents like personal accidents, business interruption, etc. that can take place in the future. Some of the features you must look at before buying insurance for your barbershop are public liability insurance, treatment liability cover, employer’s liability insurance, etc.
7. Cost of Equipment
You will be in need of various equipment while running a barbershop like the point of sale software, bookkeeping tools, cash register, signage, etc. Have a separate budget for procuring this type of equipment. Buy a barcode scanner if you intend to sell grooming products from your barbershop.
8. Inventory & Other Expenses
Inventory is another investment area for running a barbershop. Stuff like chairs, child seats, clippers, scissors, trimmers, combs, Televisions, sound system, razors, mirrors, brushes, shaving powder, hair cream, aftershave, cleaning supplies, and others which you think necessary need to be procured.
If you are planning to start to run the barbershop on a larger scale, you have to hire skilled barbers and other professionals. To hire those people, you will need to pay to manpower consultants or put advertisements on local newspapers and magazines.
9. Barber Shop Monthly Expenses
To run a barbershop there will be monthly recurring expenses that you need to keep in the account. Some are the following:
- Monthly Retail Space Rent
- Trash Expenses
- Local & State Taxes
- Salaries of Employees
- Telephone & Other Utilities
- Recurring Promotional Expenses
10. Marketing Expenses
All said and done, you need to reach people and get clients for your barbershop. You will have to set up a separate budget for marketing and promotional expenses. Visiting cards, brochures, flyers, kiosks, advertisements in local magazines and newspapers are some of the tools and places of promoting your barbershop to reach end customers. Last but not least put some money to create your barbershop website.
How Much Does it Cost to Start a Barbershop in the United States
Below find an approximate cost and its breakup if you are planning to start a standard barbershop in the United States:
- Training Fees: $10,000
- Cost of Retail Space: Approximate rent charge for 2000 Sq. ft retail space @ $2 per square feet comes to $48000.
- Cost of Designing and Interior Decoration: $7,500.
- Registration Cost for Barbershop Company Formation: $1000
- Licenses & Permits Cost: $4000
- Business Insurance Cost: $2500
- Cost of Equipment: $15000
- Inventory & Other Expenses: $25,000
- Cost of Hiring Skilled Manpower: $5000
- Marketing Expenses: $5000
You must be prepared with at least three months of the working capital recurring cost that includes salaries of employees, utility bills, electricity bills, etc. So the approximate total cost of starting a professional standard barbershop in the United States will come around $1,25,000. However, if you are planning to start in a low budget, a minimum investment of $50,000 is required to start a barbershop in the U.S.
Another way of starting a barbershop in the United States is by buying a barbershop franchise of a reputed brand. The cost of buying a franchise of barbershop will be approximately in the range of $3,00,000 to 5,00000.
How Much Does it Cost to Start a Barbershop in the UK
If you are planning to start a barbershop in the United Kingdom, the approximate total cost will range from £5000 to £60,000 depending upon the size and the location of the retail space of the barbershop. The chunk of the expenses of starting a barbershop in the U.K goes into the rent and interior designing costs. The other expenses are not much.
If you want to own a barbershop through the franchise route, the estimated cost of buying a barbershop franchise in the U.K will be around £50,000 to £80,000.
The cost of starting a barbershop anywhere in the world like Canada, Australia the expenses largely remain the same. The only cost which actually differs is the retail space cost. Hence, if you own retail space in a potentially high foot-fall location, starting a barbershop will not cost much.