Barbershop Business Plan
Barbershop is a trendy men’s business that can bring good profits and become a matter for the soul. In this article, we calculated what the opening of the men’s salon would cost.
How to open barbershop from scratch
The goal of the project is to open a barbershop (hairdressing salon for men) in Rostov-on-Don. The demand for services in men’s salons is increasing, which is confirmed by the growth in the number of barbershop in Russia. The potential audience of the Barbershop is men with high incomes and their sons, as well as creative young people aged 18 to 35 who carefully watch their appearance, love to wear mustaches and beards and agree to spend on their appearance from 1000-1500 rubles. per month.
The main services of the barbershop are:
grooming and modeling beard and mustache
Total investment in the opening of the Barbershop will amount to 948.3 rubles. The sales plan is 341 thousand rubles. planned to reach 5 months after the start of the salon. The payback period of the Barbershop is 9 months.
Description of the industry
The goal of the project is to open a barbershop (barber shop or, in other words, a men’s hair salon) in a city with a population of over 1 million people (Rostov-on-Don). The choice in favor of a men’s hair salon is due to several reasons, which are based on current trends in the domestic market for hairdressing services.
The popularity of barbershops in Russia began to increase from 2011-2012, when the first classic men’s hairdressing salons appeared in Moscow, and then in other major cities of the country. At the core of their business idea was the image of European barbershop and the Russian barber tradition, lost during the Soviet era. An institution in the format of a closed men’s club turned out to be in demand among men, who were “tired” of being clients of hairdressing salons, where women completely reigned.
Contributed to the growth of the popularity of barbershop and trends in the appearance of a man. The fashion for youth has replaced the image of bright masculinity with all its attributes in the form of a beard and mustache. However, modern men more carefully relate to their appearance, often use men’s cosmetics, care for hair, beard, mustache and skin of the face. By 2015, about 200 barbershop appeared in Russia, offering a straight razor shave, men’s classic and modern haircuts, beard design, and other services, including men’s manicure, pedicure, etc.
Despite the narrower category of clients, which are mostly men with incomes “above average”, it is noticed that business does not have a strong effect on the crisis phenomena in the economy. Haircut and personal care are mandatory expenses for men. On average, men attend a hairdressing salon 1.5 times more often than women and do not have the habit of refusing services because of rising prices. According to the experience of domestic barbershop, the share of return customers can reach 65-70%.
In general, the purely masculine hairdressing market is, if not in embryo, then in the first, “post-conception” stage of development. The most acute competition between the Barbershop is felt in Moscow and St. Petersburg. In the regions, Cyrillin services can be called a rarity – the word barbershop is mostly familiar to residents of million-plus cities and large regional centers. The standard of living in the regions is much lower, therefore the target audience is concentrated in the large business centers of cities, and the average check in barbershop is about 1.5 times lower than in the capital. Based on this, it is decided to choose a reasonable level of prices with high quality of service rendering.
The Barbershop itself is a rented room of 53 sq. M. meters, located on the first floor of a multi-storey residential building. The building has a separate entrance and parking for customers. The area of the main hall is 32 square meters. meters 9 square meters. meters accounts for the office in which it is planned to place the administrative staff. Another 13 square meters. meters accounts for the entrance space (corridor), bathroom and utility room.
The management structure includes the founder of the company, which directly manages the business. Administrative functions are assigned to administrative staff – a senior administrator and an assistant, to whom some of the functions have been transferred. The service itself is provided by four professional barbers, working in shifts.
The basic set of barbershop services was decided to make a man’s haircut, beard care and shaving with a straight razor. Additional services include styling, camouflaging gray hair, correction and design of eyebrows. At the workplace there are at least two barbers, each of which makes up to 10-15 haircuts per day. The project works in a high price segment, if to speak in comparison with traditional hairdressers. However, an average check of 1,100 rubles is generally comparable with the indicators of direct competitors working in this format.