So, you want to open your barbershop? You enjoy cutting hair, and it’s time to take your professionalism to the next level. You’re ready to learn what it takes to start your own barbershop business!
Understanding how to start a barbershop might not be as simple as some believe. There’s a lot that goes into opening a business of any sort. First, you must be certain it’s what you want to do and then prepare for the journey ahead.
How will you know if you have what it takes to open your shop? Going through a complete breakdown of how to open your own barbershop business will help you make your final decision. Below is our guide on all the steps you need to take when planning on opening a barbershop.
Read this guide and decide if this is the right path for you!
Build Your Business Plan
The first step in opening any business is creating a solid business plan. This might sound like an old high school teacher telling you to create an outline before starting a paper, and you’re sure you can do without one, but you can’t skimp on your business plan.
When it comes time to take out a business loan or find a business partner, you will need a solid business plan written out to present to these people. No one will want to invest in something with no plan.
Take your time writing yours out and include things such as the expected cost to start the business and keep it running, the name of the business, the target customer, and more.
Remember, you’re going to refer back to your business plan, so keep it detailed and organized.
Claim Your Business
You’ll want to claim your business by establishing a legal entity. There are several different legal structures to choose from. It’s important that you take your time and select the one that works best for you.
The different options you have are c-corporation or s-corporation, sole proprietor, and a limited liability company or LLC. Be sure to do your research on each one as they all differ from one another and can affect you and your business in different ways.
Once you do so, your business is ready to go, but you’ll also want to have your license and certification to cut hair. Having a business license is great, but your clients will want to see that you’ve completed all the necessary training to cut their hair professionally.
Display your credentials for everyone to see.
Prepare for Tax Season
Now that you have an actual business, it’s time to apply for an EIN or an employer identification number. It would help if you had an EIN to register your business to pay taxes.
Not only will you need to register for state taxes, but you’ll also need to register for federal taxes. Skip this step, and you could find yourself in a lot of trouble come tax season. So instead, be sure to pay all your business taxes throughout the year.
Open a Business Account
You’re going to have several financial transactions coming through your business. Because of this, it’s much easier to open a business account at your bank. This will help you stay organized by separating your personal and business finances.
If you use the same account, you also need to consider that all your personal assets are at risk if you’re ever sued. So keep them separate from your business account to prevent this.
You should also take out a business credit card and debit card. All purchases made specifically for your business should be placed on these cards. This type of organization will be handy when it comes time to file your taxes.
Your business is going to need insurance as well. It would help if you had insurance to operate as a legal business and protect your business. General liability insurance is a good starting place.
It works well for small businesses and businesses just starting. It’ll cover all the basics. As time goes by, you can choose a different type of insurance coverage that may be more suitable for your business needs.
Be sure to do some research on the different types of insurance policies as well to ensure you find the right barber shop insurance option for you.
Select Your Location
Choosing the right location is a huge factor. Who’s your target customer? Who are you marketing?
Where do these clients live? Where do they shop? These are all things to consider when searching for the right location for your shop.
You’ll need to find a spot that’s easily accessible and stands out to those passing by. You never know when someone might be walking by and decide to stop in. Because of this, a busy location is usually a good choice.
Create and Market Your Brand
Don’t forget that you will also need to purchase software for your barbershop. This software ranges from payment options to website management. Find software that works well for you and improves your client’s experience.
You’ll then need to create and market your brand. So what makes your barbershop different from other shops? Why should clients come to you rather than go somewhere else?
What’s different about your brand? First, then, you need to have a great online presence on social media platforms with links to your website.
Do You Know How to Start a Barbershop?
Knowing how to start a barbershop isn’t something that can be learned overnight. There’s a lot to be done when you want to create your own business. Use this guide as your starting point, and then go from there!
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