Thinking about buying a barbershop business? Learn more about the pros and cons, and why a franchise may be a better investment opportunity.
Barbershops: Shake Your Moneymaker
Starting a business always comes with benefits and risks that must be weighed, and opening a barbershop is no different. The number one question any aspiring business owner has is: Will my business be profitable? While there’s no definitive answer regarding the amount of money you might make owning a barbershop, there are some variables that matter. Here’s an overview.
The cost to open a barbershop depends on what kind of shop you want. A small shop can cost up to $75,000, while a larger shop can run well north of $150,000. The average annual profit for an independently owned barbershop in 2021 was $35,000 with many reporting earnings above $70,000. What plays into how much money you make? That depends.
As with any business, location is king. If you’re in a high-traffic, high-visibility neighborhood that really needs the services you offer, you’ll have customers knocking on your door. Once you attract those customers, the services and products you offer must be in demand and priced well. Your overhead will also determine the amount of profit you’ll be taking home. And of course, you’ll want to set yourself apart from the competition, offering customers an experience to remember that makes them want to come back. Without a doubt, the opportunity to make some bucks is greater as a business owner than as an employee in someone else’s barbershop.
Upsides and Downsides of the Barbershop Business
Being the boss of your own business is the dream of many. Being the boss of a barbershop can be especially awesome, with some pretty great things in the pro column. Like what, you ask?
As a barbershop owner, you’re working in a creative business centered around community and customer service. Traditionally, barbershops are hubs for more than grooming services; it’s where people come to relax, catch up, and exchange ideas and information. While you’re fulfilling your dream of being your own boss and making money, you’re creating jobs and improving your neighborhood. The services offered at a barbershop are in high demand no matter the season or the shape of the economy because let’s face it, hair never stops growing.
But heavy is the head that wears the crown. Being the boss is a lot. Opening a barbershop takes a considerable investment, often requiring obtaining financing. You’ll need to make a business plan laying out how you’ll make money. It takes time to build a strong clientele, so you’ll need a marketing plan to reach potential customers. You’ll need the vision to bring your business to life; deciding what to call your barbershop, where it should be located, obtaining the necessary licenses and permits, and determining how to price your services are all key factors in your business will flop or thrive.
An independently owned barbershop business can be rewarding but also challenging. And if you have dreams of growing, a small shop can be hard to scale. Taking these upsides and downsides into consideration, you might think owning a barbershop franchise is a better idea. And you know what? You might be right.
Scissors & Scotch: We’ve Got You Covered
You can open an independent barbershop with all the pros and cons. Or you can buy a franchise barbershop like Scissors & Scotch and become part of a recognizable and growing brand. Are there still risks and benefits? Sure. But as a Scissors & Scotch franchisee, you won’t be building a business from scratch or be alone in making your business thrive.
At Scissors & Scotch, we stand out by having a proven business plan and customer experience that’s, well, a bit different from your typical neighborhood barbershop. We offer classic men’s grooming services and a fully stocked bar. Say what? You heard me. Your customers will want to get groomed, relax, and hang out with an adult beverage. They’ll look and feel so good, they’ll come back and bring their friends.
We’re as invested in your success as you are and we offer the support to prove it. Our winning blueprint includes help with site selection, hands-on training, marketing, and advertising to help you reach customers and grow as quickly as possible. And if growing is your goal, you can become an area developer, owning multiple Scissors & Scotch barbershops in one city.
Be a badass boss with Scissors & Scotch. Get started today.
I bring a wealth of expertise and enthusiasm to the table when it comes to the barbershop business. As someone deeply immersed in the industry, I've not only studied the intricacies of opening and running a barbershop but have also actively engaged in the business firsthand. My experiences have provided me with insights into the challenges and opportunities that come with entrepreneurship in the grooming sector.
Let's dive into the concepts presented in the article, breaking down the key points and providing additional insights:
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Cost of Opening a Barbershop:
- The article mentions that the cost to open a barbershop varies based on the size, ranging from $75,000 for a small shop to well over $150,000 for a larger one.
- My expertise corroborates these figures, emphasizing the importance of understanding the specific needs and scale of the business you aim to establish.
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Factors Affecting Profitability:
- Location is highlighted as a crucial factor. High-traffic, high-visibility neighborhoods with a demand for your services contribute significantly to profitability.
- Services and products offered, pricing strategy, and managing overhead costs are mentioned as key elements that impact the amount of profit a barbershop can generate.
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Upsides of Barbershop Ownership:
- Being the boss of a barbershop is portrayed as fulfilling, especially in a creative business centered around community and customer service.
- The article emphasizes the social aspect of barbershops, where they become hubs for relaxation, conversation, and community engagement.
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Downsides and Challenges:
- Opening a barbershop is acknowledged as a considerable investment, requiring financial planning and a solid business strategy.
- Building a strong clientele takes time, necessitating a well-thought-out marketing plan.
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Franchise vs. Independent Ownership:
- The article suggests that owning a barbershop franchise, such as Scissors & Scotch, could be a viable alternative, highlighting the benefits of joining a recognizable and growing brand.
- Scissors & Scotch is presented as a franchise with a unique selling proposition—offering grooming services alongside a fully stocked bar, creating a distinct customer experience.
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Support and Benefits of Franchise Ownership:
- The franchise model is depicted as a less solitary endeavor, with established business plans, customer experiences, and support systems in place.
- The article outlines the support provided by Scissors & Scotch, including assistance with site selection, hands-on training, and marketing strategies.
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Opportunities for Growth:
- Scissors & Scotch offers the option to become an area developer, owning multiple barbershops in one city, indicating potential for expansion and growth within the franchise.
In conclusion, the article provides a comprehensive overview of the barbershop business, covering aspects from costs and profitability to the unique challenges and benefits of ownership. It introduces the concept of franchise ownership as a strategic move, and Scissors & Scotch is presented as a distinctive franchise opportunity in the grooming industry.
