Understanding the Barbershop Industry
A barbershop is where people get haircuts. While some hair cutters call themselves stylists and work in salons, others are barbers who trim hair and shave necks in barbershops. Historically, barbers specialized in men’s facial hair. Today barbers specialize in men’s skin and hair.
The barbershop industry is a $5 billion industry employing over 150,000 people in the US. Most barbers make $14 to $18 per hour. The most common barbershop customer is a man who wants a quick haircut and possibly a beard trim or shave. For employees and customers, a barbershop is a way of life and social circle.
Starting Your Own Barbershop
To start a barbershop business, have a barber pole, select a vintage decor, ensure good lighting, and don’t forget the waiting area. Barbershop owners make money by renting chairs to barbers who then keep their earnings after paying the rent.
Barbershop Terminology and Business Models
There are barbershop terms every professional should know. A "regular cut" means a simple haircut with no fades. "Tapers" and "fades" describe styles. So knowing the lingo is key in a barbershop.
Usually, a barber business works through either commission or rent. Renting a chair is more independent because you manage your own business.
When you consider opening a barbershop, there are three models: Rent a chair, open your own shop, or buy a franchise. Most barbers start by renting a space in an existing shop.
However, profitable shops depend on location, consistency, work ethic, skills, professionalism, etc. You should identify your market. If you try to focus on all generations, growth might stagnate.
Barbershop startup costs range from $28,900 to $66,800, averaging $45,000. This includes barber school costs. If you’re a trained barber, costs will be lower. You’ll need chairs, equipment, etc.
Essentially, barbers are contractors who rent space. The commission model shares each cut’s earnings. Finally, barbers can be employees who earn salaries and benefits. Consider franchising opportunities.