How to Open a Barber Shop

Operating a barbershop is the dream of many around the world, however, few ever make the leap. Whether you’re a trendsetting barber, aspiring business owner, or both, this article is going to go in depth on how you can open your own barbershop. But where do you even begin? Well, like you might think, starting a business begins with finding your customers—probably not in the way that you imagine, though.

Laying the Foundation: Identifying a Niche Market

A niche is the specific skill, tactic, look, process, etc. that sets you apart from the rest of the industry. If you don’t already have an idea in mind of what that might be, there’s a few things that we’d recommend trying!

• Soul Search: Look within! If you aren’t too sure what it is that makes you special, explore things like your hobbies, beliefs, or professional experiences for common themes. (Hint: Everyone has something that makes them unique—never sell yourself short!)
• Talk to Your Friends/Family: Understandably so, it can be tough to reflect on yourself from an internal perspective. Ask your loved ones or those close to you what exactly it is that makes you, YOU.
• Research Industry Trends: If all else fails, it never hurts to see what kind of trends are popular around your area or industry as a whole. Maybe there’s something trending that you could mold or sculpt to align with your passion or vibe more directly.

With your niche discovered, you’ll be even more prepared to resonate with your target market. A target market is the ideal audience or group of clients that you are wanting to offer your exclusive services to. Now that you know who to speak to, and what it is you’re going to be offering to them, it’s time for some planning.

Creating a Business Plan: What, Why, How?

Before starting—well, just about anything—it’s best to have a goal or a plan in mind for what you want to accomplish. If you have a detailed vision or plan in mind, you’re more likely to make those goals a reality. So, before making any official moves, we recommend creating a business plan. What should your business plan entail, exactly? There are three things that your barbershop business plan should absolutely include:

1. The main goals for your barbershop
2. The specific steps that you’re going to take to achieve these goals
3. A general (or detailed) timeline framing when you will reach said goals

Now, to take it a step further, how do you properly create a goal? There are a few ways you can do this. A technique that we’ve mentioned multiple times in the past and actively stand by is the SMART goal method. Short for Specific, Measurable, Attainable, Relevant and Timely, SMART goals help to iron out a majority of the unknowns that may derail your progress to achieving your goal. Since we’ve covered SMART goals in the past, we won’t go too in-depth now, but strongly recommend you read the Getting Started section of the article found HERE for more information regarding SMART goals.

As you can see, your SMART goal could act as your entire business plan, but be careful not to limit yourself! As we mentioned previously, your business plan can be as detailed as you wish. Including things like your business hours, employee handbook, or business mission statement are all items that can be helpful to include. With our business plan made and SMART goals at the forefront of your mind, it's time to take care of some of the technical stuff that goes into opening your barbershop.

Registering Your Business/Licensing: Become a Legitimate Entity

As an aspiring barbershop owner, it’s safe to assume that you likely already have your barber or cosmetology license. If you don’t, you’ll need to pass whatever state board test is needed following your barbering program. For example, The California Board of Barbering and Cosmetology Licensing Exam is needed in order to legally practice barbering services in the state of California. To actually open your own barbershop, however, there’s a few extra things that you’ll need to iron out as well.

Create a Business Name: A business name will be needed for just about every one of the following items listed below, and you probably already have a few great ideas! If you can’t devise a name that you feel fits, it’s completely okay to use a fictitious temporary name. However, if you ever change your business name or address, be sure to report it to your state government immediately to avoid any possible penalties.

File Taxes/Employer Identification: File any needed documents with the state in order to verify your identity and ability to perform the services that you want to offer.

Business License: Aside from your barbering license, you will also need a valid business license to begin operating a barbershop. This can be obtained fairly easily nowadays, especially online. Prior to getting your business license, however, you’ll first need to choose a business structure: corporation, LLC, sole proprietorship, etc.

Before You Continue: Final Checklist

With a detailed business plan & SMART goal on hand, plus the technical foundation laid for your barbershop, you’re just about ready to make the first move. Before you get too excited though, take a look at the final checklist below to ensure that you’ve completed all the necessary items to open a functioning barbershop:

Projected Expenses/Spending: Before jumping headfirst into opening your barbershop, it’s best to know how much doing so is going to cost! Things like property/rent costs, employee wages, the costs of your services, and any outside funding that you may need are all things that should be taken into consideration.

By having an idea of the possible costs or setbacks that may occur when running your business, you can ensure that you always stay financially afloat in a sea of unknowns or constant change. Pair this with something like Vagaro’s in-depth reporting feature, and you’re sure to never fall behind.

Market Research/Marketing Strategies: Marketing effectively is arguably one of the most difficult aspects of operating a barbershop, and there’s a seemingly endless list of ways that you can do it. Social media promos, email campaigns, blogs—which is the right option for you? How do you show potential clients that you’re the real deal? Well, this ties in directly to when you first identified your niche and target market just a few moments ago. When releasing marketing material, you want to keep that same audience in the absolute forefront of your mind.

If you’re unsure as to where to start, take a moment to watch some TV or scroll through social media, then ask yourself if the ads and commercials that you see are effectively working on you. To make things even simpler, you could use something like Vagaro’s in-house email and text marketing content builder to create cutting-edge marketing material that’s sent to clients automatically, or specifically when you choose.

Internal Employee Agreements or Handbooks: If you’re not planning on hiring an extra pair of hands for your barbershop right away, then this step can be a priority when you do cross that bridge later on. Regardless, having rental agreements, employee handbooks, or job descriptions ready when you need them would prove to be a much smoother process in the long run. Remember, as a business owner, it's best to be proactive, not reactive.

There are a lot of great templates online for just about any form or paperwork that you need, but if you want something in-house, completely customizable, and automated, then Vagaro’s Forms feature is exactly what you need. More info on that HERE.

Additional Permits/Licensing: Make sure you’re not going to be met with a line of red tape when you try to offer your first service. Ensure there aren’t any extra permits or licensing needed for your location or the services that you’re going to offer. As mentioned, a quick web search can prove to be extremely valuable, since most states have a .gov website dedicated to opening a business.

Using a Business Management Software: Why it’s Necessary in Today’s Age

If you’re a barber currently, you’re fully aware that time is money. It’s the most desired resource, yet the one we have the least of. If you’re going to be performing multiple roles in your position, there may even come a time when you have to start denying business opportunities due to not having the extra capacity or resources to take part. That’s where the Vagaro barber management app comes in. With its online booking capabilities & marketplace, plus a setup & onboarding process that we walk through with you, you can now make bookings and make money in your sleep! It doesn’t just stop there. Vagaro provides business owners—at any point in their journey—with the means to market and expand their business. You shouldn’t have to choose between your business & your sanity, so check out Vagaro FREE for 30 days to see what it can do for your own success!