Before you open up your very own barbershop business, there are a number of monthly expenses that you need to be aware of. That way, you will have a full understanding of what you can expect to pay each month, which will allow you to budget much better and ensure that each month in business ends up being profitable.
While some of the barbershop monthly expenses can vary from business to business, it’s essential to remember that there are other expenses, which are practically unavoidable, and those are the ones that we will be focusing on in today’s article.
Without further ado, let’s take a look at 5 barbershop monthly expenses you should know before opening up.
Rent & Utilities
Unless you own the property or the building where your barbershop is going to be located, rent is going to be the most consistent bill you’ll have to pay when running a barbershop business.
The amount you have to pay for rent varies depending on several factors. For example, if you get a spot in a very busy area in the center of the city, you’re likely going to have to pay more than if you get a spot in a more secluded area. It can be hard to find ways to save money when renting, but one of the best things you can do is look at as many spaces as possible so you can find one that perfectly fits your budget, tastes, and needs.
Another expense you need to take into account when running a barbershop is the utilities. This includes electricity for the general operation and functioning of the barbershop to water, which will be used for the hair washing sinks (if you plan on having any). You’ll have to pay for these bills monthly, and since they are practically unavoidable, it’s a good idea to plan and budget for them each month.
Tools & Maintenance
For a barbershop to be operational, you’re going to have to pay for a lot of different tools and equipment. Some of the most common tools and equipment include a clipper, scissors, gels and hair styling products, and more. And while most of these are relatively inexpensive, other necessities that are often overlooked are pretty pricey.
For instance, have you ever asked yourself, “how much is a barber’s chair?”. If you haven’t, a barber’s chair costs between $500 and $1,800 per piece on average. And unsurprisingly, when opening up a barbershop, the chairs are going to be one of your biggest barbershop monthly expenses if you plan on getting them on a repayment plan.
On top of that, you’re going to have to pay for mirrors, sinks, electrical fixtures, and other tools barbers may use for the job. Granted, some barbers have their own toolkits, but barbershops still have to supply them with certain things.
As mentioned earlier, you won’t have to buy a new set of tools every month. You will have to replace some things from time to time, but tools are more of a one-time investment rather than a consistent expense.
However, if you want the tools to last longer, you need to make sure to maintain them properly. Usually, maintaining tools and machines will cost you some money and is something you need to do regularly. So, remember to set aside a budget for that.
In most cases, you can’t run a barbershop alone. Even if you’re the most skilled barber in the world, you need to hire a staff to help you out as the business continues to grow. You are going to need multiple barbers, someone to run the cashier, and maybe cleaning staff. All these people need to be paid regularly, which is one of the major barbershop monthly expenses you need to consider.
Salaries can vary depending on skill level, area, and more. However, if you open a barbershop (or any business, for that matter), you need to make sure that you consider salaries in your budget.
If it’s your first time opening a business, you’ll be surprised by how much of your business is actually going to be done over the internet. For example, if you want your customers to be able to book appointments over the internet, you’re going to have to use a booking software, which you’ll often have to pay for on a monthly basis.
And while a booking software isn’t absolutely necessary, it’s a very good idea to have, especially if you plan on spreading the message about your business over social media. That being said, if you plan on taking the social media of your barbershop to the next level, you should also consider paying for a social media scheduling and monitoring software like Buffer or Hootsuite.
Unless your barbershop is operating on a cash-only basis, you’re going to have to buy a card reader and face payment processing fees every single time a customer pays for your service. And while the cost is pretty minimal (usually 1-3% from the total payment), the total amount you’re paying for payment fees quickly adds up.
One of the best ways to save on payment fees, while still taking digital payments is by using apps like tapeeno
. Granted, to use tapeeno, you’ll have to pay a regular fee but it’s nothing in comparison to getting charged a percentage whenever your customer runs their card through the payment processing machine. This will save you a lot of money on a monthly basis.
On top of that, you won’t even need a machine. With tapeeno, all you need is a phone to accept card payments, which is extremely convenient and affordable for business owners that are just looking to start out.
There are many barbershop monthly expenses you need to be aware of before investing your hard-earned money into a physical business. And while some bills such as rent and utilities are inevitable, you can save money in other areas such as using apps like tapeeno to collect payments and save on those hefty payment processing fees.