Baber Shop: Business Administration Department Entrepreneurship Management 4 Semester

BABER SHOP
Business Administration Department

Entrepreneurship Management
4th Semester
2019 - 2020
Supervised by:
Ms. Sharoo N. Fadhil
Students Names
Amal Ibrahim Nasrdin Eman Tahir Muhamad Sima Rauf Abdulrahman
Sonya Shamsadin Shaima Mustafa Hasan Parwin Sdiq Mawlud

HOW TO START A BARBER SHOP
Introduction
Barbershops provide men and boys with grooming services, such as haircuts and
shaves. They are small shops that specialize in cutting men's hair and shaving the neck and
face. Since the times of ancient Rome, approximately 296 BC specifically, the barbershop
has been known as a place to socialize in the neighborhood. It is a place for men to network
and connect with others in the community.
Learn how to start your own Barber Shop and whether it is the right fit for you.
Start a barber shop by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step.
There is more to starting a business than just registering it with the state. We have put
together this simple guide to starting your barber shop. These steps will ensure that your
new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the
specifics of your business and discover some unknowns. A few important topics to consider
are:
 What are the startup and ongoing costs?

 Who is your target market?
 How long it will take you to break even?
 What will you name your business?
What are the costs involved in opening a barber

shop?
Experienced barbershop owners suggest a minimum capital investment of $150,000 to

$200,000. This includes the following items:
 Attending barber school - $6,500 to $10,000

 Office space - cost varies, based on location
 Construction costs - your space must be up to current electric and plumbing
standards
 Permits and licenses
 Insurance - speak with a licensed agent to determine what policies you need $2,400.
 Marketing materials - $3,000
 Shop equipment - cash register, business management software, signage - $14,000
 Shop inventory - chairs, child seats, clippers, scissors, trimmers, razors, brushes,
mirrors, shaving powder, hair cream, after shave, cleaning supplies, etc. - $20,000
 Furniture and miscellaneous necessities - $5,000
 Website - $1,500 to $3,500
Should you decide to invest in one of many franchise opportunities, budget another $25,000
for franchising fees.
What are the ongoing expenses for a barber
shop?
There are a number of items you should budget for to properly run a barbershop:
 Rent, phone, Internet, and utilities

 Marketing materials and campaigns
 Insurance
 Replenishing of both professional and retail supplies
 Regular cleaning and maintenance of shop and barber equipment
 Payroll and taxes - To reduce this expense, consider hiring barbers as independent
contractors. They will compensate you for use of your chair by either paying rent or
a percentage of their income. Commissions range from 30-70% of the barber’s
profits.
Who is the target market?
Your customers will primarily be adult males. From time to time, you will have a younger
boy customer in need of a haircut. Your client base will be comprised of individuals who
appreciate the artistry of a quality barber and enjoy the camaraderie and social atmosphere
that a barbershop offers.
How does a barber shop make money?

A barbershop makes money by charging a fee for services provided.
How much can you charge customers?
Pricing varies, depending upon the services you offer, your location, and experience. Neck
clean up prices average $10, while haircuts can range anywhere from $20-$90.
How much profit can a barber shop make?

The average annual profit for a barber shop owner is $35,000. Many have reported profits of
$70,000 and higher, depending upon location and the number of barbers they employ.
How can you make your business more profitable?

Barbershop owners suggest the following strategies to increase annual profits:
 Offer additional services, such as facials, hair coloring, and custom design haircuts.
 Have a retail section that includes products such as hair gel, razors, and brushes.
 Offer a mobile barber service
STEP 2: Form a legal entity

Establishing a legal business entity such as an LLC prevents you from being personally
liable if your barber shop is sued. There are many business structures to choose from
including: Corporations , LLC's , and DBA's.
STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for
business
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset
protection.
When your personal and business accounts are mixed, your personal assets (your home, car,
and other valuables) are at risk in the event your business is sued. In business law, this is
referred to as piercing your corporate veil .
Open a business bank account

 This separates your personal assets from your company's assets, which is necessary
for personal asset protection.
 It also makes accounting and tax filing easier
STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the
financial performance of your business. Keeping accurate and detailed accounts also greatly
simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause
your business to be shut down.
State & Local Business Licensing Requirements
In most states, it is necessary to obtain a barber’s license. Certain state permits and licenses
may be needed to operate a barber shop business. Learn more about licensing requirements
in your state by visiting
For more information about local licenses and permits:
 Check with your town, city or county clerk’s office

 Get assistance from one of the local associations listed in .
STEP 7: Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees,
workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is
perceived by the public. A strong brand will help your business stand out from
competitors.
How to promote & market a barber shop
To introduce yourself to the neighborhood, consider having a grand opening event.
Drop off flyers at businesses and homes in the surrounding area. Community
newspapers, local TV stations, and radio stations are also a great marketing
resource. Advertise the event well in advance and offer specials for those who
mention your flier.
A basic website and a social media presence should be part of your marketing
strategy. Research blogs that your clientele might read and advertise on those
websites. The National Barbers Association offers marketing opportunities for
barbershop professionals. They are also a great resource for keeping up with the
latest in industry trends.
How to keep customers coming back

In the service industry, word of mouth often proves to be the strongest marketing
tool. Strive to deliver exceptional customer service to each client. Encourage
patrons to refer their friends by offering a referral discount. Many barbershops
have also successfully retained customers by offering a membership or discount
days for regulars.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the
products or services you offer. You can also use social media to attract new clients
or customers.
Reference
https://howtostartanllc.com/business-ideas/barber-shop
https://www.google.com/search?
rlz=1C1CHZL_enIQ895IQ896&q=barber+shop+locations&npsic=0&rflfq=1&rlha=0&rllag=36204897,4398
9711,3280&tbm=lcl&ved=2ahUKEwjYqNGMvfDpAhWaDWMBHR8EClsQtgN6BAgMEAQ&tbs=lrf:!1m4!
1u3!2m2!3m1!1e1!1m4!1u2!2m2!2m1!1e1!2m1!1e2!2m1!1e3!
3sIAE,lf:1,lf_ui:2&rldoc=1#plsm=1&rlfi=hd:;si:8689958445897998867,l,ChViYXJiZXIgc2hvcCBsb2NhdGlvb
nNaGgoLYmFyYmVyIHNob3AiC2JhcmJlciBzaG9w;mv:[[36.293877605915355,44.28124409926756],
[36.103265256874195,43.800248921044904]]
https://www.google.com/maps/vt/data=MAH2DSxU_GvMOxAiCqD2BbkAwOIb5hFYWNMIWGkqb8EjXo
uRLUeiCSRkLIq5Y8iNX7tAfNl3HGuCoxYWslIhMvkVkKyFZEuTINFoe8Xc3i6ueJzEQM1Ktk2sY4e_wvbtNg0Q
7noZg52OebEO4gVgpMekERc8FFz6z3EVl0U6oYHCSEyj7tcb91HhuMzVTi-9PvUjaN0_g9VX-
QnCGd930QhaRC-95u-eKpYTGbsaJE-
owj_5Ia4hDDJZoW_L0FHORZJs9WUeMZMnLhynqV0WB_yepkQVRLvt6OYUXddsElt-u_RfBTFA_oF-
QEuKJ_TR11IuqDZdB6E0zBCg_v_qr6GdM2nppR35H_war8hXL-scEwylCI_ac0Lf9zuIoS1ECEgeT6yOVBU-
FdkMgpCWu-ncdsKek7alq0edAbkefkelDZNvVDcxXCUqJt_AmSOqA-JCRq8qUG-
smWYKGBhytZLa6AcElNYVE58lMOH4JPIdd1XVqaWSJFcxrZTcAbqNevZqdEr34CyFQCSfUxGISl-
T3rOhc1bUeMQBFRdYa4wSVG7uXR4xkDzcXgP3pJpwA5fYcQZ-
qI5ambAs2BVnXquaXg7GRigxBOM_RZJGnr6PFj7tMMw3VWNkUlzULEmz-TwiZMci3P50vl76xDcd-
myCrT5hvaWeGEr4tF899LrJIOwU-2G6ixF6aiYHkUSsWAyIlB6gEuoj-PZocaNNB3-
M_897Msb0p8Rvq3Bu6W9mmHVuh9SSOZbuQwIDKIRM52AFgrfrTSBaLYZiEAy9EGqrR-
3StFnN_NgmmFfzJHX19bChZuH25RvPSigqXzJvyFc-
VYWqRZXFVPMESK0Fpv_022FC7dONMrcgVDfhOD6_CqWOF4PhU_WZPMYbYv7WQUwkPEmAokMPYNt
u5Ddctk22x8JkBcGxzWwpzxgs4XjasW1tWPImlsp3HbCfsqjO94CBwD3TIVV3kiMbJOYjIQQrzK-
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ixPcO_RE9JzXRhTBsBP4mwxZrB0fOT1fCmxmDMfN_koEYp2s10DLrGAjy7UFT-KPj8c-
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………… And do you any idea and question?

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BABER SHOP

Business Administration Department

Sonya Shamsadin Shaima Mustafa Hasan Parwin Sdiq Mawlud

Start a barber shop by following these 9 steps:

STEP 1: Plan your Business

 What are the startup and ongoing costs?

What are the costs involved in opening a barber

Experienced barbershop owners suggest a minimum capital investment of $150,000 to

 Attending barber school - $6,500 to $10,000

 Rent, phone, Internet, and utilities

How does a barber shop make money?

How much profit can a barber shop make?

How can you make your business more profitable?

STEP 2: Form a legal entity

STEP 3: Register for taxes

Open a business bank account

STEP 5: Set up business accounting

STEP 6: Obtain necessary permits and licenses

For more information about local licenses and permits:

 Check with your town, city or county clerk’s office

STEP 7: Get Business Insurance

STEP 8: Define your brand

How to keep customers coming back

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