HOW TO START A SUCCESSFUL BARBERSHOPwhat you need to know about establishing a successful barbershop
I will cover off some of the key elements to be aware of to make sure the business is profitable…
Location - You should choose a good location with good access for customers to get to (i.e. near public transport or business / retail district), but this can change if you are a destination barber shop i.e. the best and coolest in your area.
The Right Lease - when signing up your lease, you should bargain to get good contract terms. Ensure you are paying a good rate for your rent. Make If you are a good negotiator, you could also ask your landlord for cash assistance for the fit out…this means you could get your fit out for FREE!
Pricing - Ensure your pricing is inline with the local market or if you're a destination barber shop then you can charge a premium but make sure people can afford it!
Staffing - whether you are on a revenue share or salaried then make sure you have either the right revenue share (I suggest 60/40 + back bar) or that you are able to provide the right volume of customers to support salaries. I DO NOT recommend booth / chair renting as you do not benefit at all from growth in customers….unless you have a chair rent model which incorporates customer growth.
Back bar - when running a barber shop many people forget one of their biggest costs……the BACK BAR! The back bar is the costs associated with the use of products to fulfill your service, such as shampoo, conditioner, beard oil and finishing products such as wax and clay.
Customer Experience - if you are providing a great service and product, then you will have excellent customer retention and hence drive profit within your barber shop. There are various studies about how it is cheaper to retain a customer than to acquire a new one. If you deliver a great product, your customers will become your biggest marketing tool through word of mouth marketing (i.e. the cheapest form of marketing ).
Cost of Acquisition - make sure that the cost of acquiring your customers is relative to the profit you will make from the customer over their lifetime with you.
Customer Acquisition Cost: The One Metric That Can Determine Your Company’s Fate. Basically if you are using Google Adwords, a marketplace like Styleseat or Treatwell then you need to know whatever cost to your business to acquire a new customer is recovered…else your business will never be profitable.
In conclusion
Do not over spend on rent - sign the right lease terms
Cost cost control - manage to costs and watch them constantly
Retain customers - deliver a great product and drive word of mouth
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