Are Barber Shops Profitable? 7 Facts You Should Know
The first question any businessperson should ask when starting a new business is whether it has the potential to make a profit. Barber shops are some of the most successful startups in America.
Well managed barber shops have many opportunities to make profit. The key to success is in the planning, there are seven important facts all entrepreneurs should consider when building a barber shop business.
1. Identify Your Market
Barber shops cater to a wide range of customers. People of all ages from all parts of society visit barbers. Many successful barber shops have increased their profitability by targeting their services towards certain types of customers. Older customers are more likely to buy beard dying services, and younger customers are motivated by fashion, adversely, affluent customers are willing to pay more if a barber shop has higher quality furniture.
2. Location, Location, Location
If a barber shop is to be successful, it must be located to a place that’s convenient to the market they are targeting. Barbershops targeting businessmen might want to lease space in a downtown location, and a shop targeting families would benefit from being near to a school.
3. Diversify Your Services
Barber shops that offer a wider range of services often benefit from by a higher revenue-per-customer. Barber shops have traditionally focussed on basic hair and beard cutting. Adding new services like eyebrow cutting, shaved hair designs, and facial treatments have the potential to bring in more profit.
4. Make Partnerships with Vendors
Many businesses in the haircare services industry have profited by adding retail products to their business offerings. New sources of profit might come from adding hair care products, newspapers & magazines, and premium shaving equipment.
5. Rent Out Spaces
Barber shop owners can increase their profitability by renting out space to other barbers. The increased traffic they bring in can help make a barber shop’s environment more vibrant. Their customers may buy a barber shop’s retail products in addition to their hair service. Barber shop spaces can be rented out on daily, monthly, or on long-term terms. Spaces can be split between barbers on different days which can help to ensure a steady stream of customers through a barber shop’s front door.
6. Payment Systems and Accounting
Business owners who understand the importance of managing their revenue are more likely to make a profit. Barber shops of the past stuffed their money into a drawer, whereas modern operations use computerized payment and accounting services that automate the accounting while offering customers a wide variety of payment methods.
7. Get a Quality Education
People who are successful before entering the barber shop industry are more likely to make a profit after getting a quality education. Students should select a school not only for the technical skills they teach but also for the business skills they teach. Evergreen Beauty College teaches a wide range of skills that focus on making your business more vibrant and profitable. Contact our admissions team now.
Are You Interested in Becoming a Barber?
Does barbering sound like something you’d be interested in? If you said yes, we at Evergreen Beauty College can help you achieve your dreams of becoming a barber. Our cosmetology and barbering programs teach and supports the fundamentals of successful barbering. Whether you want to work as a barber or own your own barber shop we can help you prepare for your future.