Opening a barbershop can be a great way to earn a living if you like to interact with people and have a sense of style. Many barbers spend years working in shops and salons until they are ready to start their own business. Indeed, barbers must be certified to cut hair, and then have a cosmetology license in the state of Maryland. Please visit the Department of Labor, Licensing and Regulation at http://www.dllr.state.md.us/ for requirements for your business.
In addition to licensing, successful barbershop owners should consider the political, economic, social, technological, environmental, and legal issues that stem from their industry. They should also examine the critical success factors and cost-drivers that impact the amount of revenue required to maintain the business.
The tables below depict the common issues and costs associated with operating a barbershop.
| Political | Labor laws – ensuring that staff is eligible to work in the US. Maintaining a safe work environment and compensating legally | |
| Economic | A location that can be supported by clientele, such as walk-in traffic | |
| Discretionary income for the latest hairstyles; frequency of haircuts | ||
| Social | Salons versus barbershops | |
| Keeping up with the latest styles | ||
| Technological | Record keeping – software and hardware | |
| Handling money and processing payments | ||
| Advertising online and using social media | ||
| Environmental | Waste disposal | |
| Storage of hazardous chemicals | ||
| Legal | Licensing requirements – barber and cosmetology licenses | |
| Waste water discharge permit | ||
| Critical Success Factors | Facility up to code for occupancy, including fire and health codes | |
| Acquiring and maintaining licenses, including barber and cosmetology licenses | ||
| Major Activities | Associated Costs | Cost Driver |
| Cutting and styling hair | Labor wages; licensing | Number of stylists |
| Cleaning salon facilities | Labor wages; use of cleaning supplies | Number of customers (rate of consumption) |
| Employee Costs including benefits | Year One Cost per month |
| Owner | $ 3,500 |
| Book Keeper – Outsourced | $ 800 |
| Legal – Outsourced | $ 800 |
| Tech Support – Outsourced | $ 250 |
| Barber | $ 2,400 |
| Wages Subtotal | $ 7,750 |
| Taxes, Fees | $ 1,163 |
| Subtotal | $ 8,913 |
| Supplies/Stock | |
| Hair product/supplies | $ 1,250 |
| Cleaning Supplies | $ 200 |
| Subtotal | $ 1,450 |
| Office/Facility | |
| Facility Expense (rent) | $ 1,700 |
| Electric | $ 300 |
| Water | $ 125 |
| Internet/Telephone | $ 100 |
| Office supplies | $ 50 |
| Property Insurance | $ 208 |
| Maintenance | $ 500 |
| Computers/Hardware | $ 100 |
| Subtotal | $ 3,083 |
| Marketing Costs | |
| Web site hosting and advertising | $ 200 |
| Web site updates | $ 100 |
| Business Cards, Pens, Swag | $ 50 |
| Subtotal | $ 350 |
| Shop | |
| Furniture and decorations | $ 500 |
| Subtotal | $ 500 |
| Projected Monthly Costs | $ 14,296 |