Analysis of Barbershop Business and Tips for Starting a Business

One type of business that has had a significant change is the men's barbershop or what is now often called a barbershop. In the past, the men's barbershop only provided haircut services and had a simple interior design. However, at this time the barbershop business has transformed to be more contemporary both in terms of services, facilities, and interior design following the tastes and developments of the times. Thus, men now have quite varied choices in determining the haircut they like and the facilities they want to enjoy.

When viewed from how many kiosks were established, the development of the barbershop business also has a good trend. More and more, it is easier for us to find new barbershops with modern concepts that they bring. So, are there any BFI friends here who are interested in running a barbershop business? If so, this time the BFI Finance team provides tips for running a barbershop business including an overview of the equipment, equipment, and the range of capital needed. Hopefully, this article can help BFI friends in starting this barbershop business. Let's see together!

9 Tips for Running a Barbershop Business from Zero a la BFI Finance

1. Determining the Brand and Business Logo

The first step in starting a barbershop business is to create a brand name and logo. Brand identity is determined by a logo and the name of the business. Create a brand name that is easy to remember and has never been used by another barbershop. You can do a survey by making a list of barbershop business actors in your city or through the Google search engine.

After determining the brand name, then you can create a brand logo. Currently, there are many business logo creation services that you can consider using. Regarding the use of logos, try not to copy the logos of other businesses.

2. Determine the Services Provided

The second step in running a barbershop business is to determine what services will be provided to customers. Generally, standard barbershop services include haircuts, head massages, and hair gelling. There are also extra services such as providing warm towels for the face, giving hair vitamins, and drinking water. In addition to serving haircuts, you can also add other services such as hair coloring, mustache and sideburns, and cream baths. The price per type of service is of course different and varies from region to region.

3. Creating Comfortable Facilities

In addition to providing the best primary service, you also have to pay attention to customer comfort in terms of the facilities you provide at the barbershop. To make the customer comfortable in waiting, you can install air conditioning, Wi-fi, and a music player. Cleanliness must also always be maintained properly in the main barbershop room and in the toilet. If you carry a kids-friendly theme, you can also add a small playground in the barbershop waiting room area.

4. Determine the Strategic Location of the Barbershop

Determining the location of the barbershop business determines how many customers will come to your kiosk. You can determine the location according to the target customer. If you are targeting customers who come from among students, you can choose a business located close to campus. If you decide to target the general public, you can choose a business location near modern/traditional markets, sports arenas, and other crowded centers.

You can choose to rent a barbershop or own one. The price for renting a shophouse per year is usually set from Rp. 12,000,000 to Rp. 15,000,000, depending on the area of ​​business. Building a barbershop business at your own home can also be done, you know, BFI friends if you have large enough vacant land.

5. Buying Barbershop Equipment

Next, you can start detailing and buying the equipment needed for this barbershop business activity. The following is the range of costs incurred to purchase barber equipment:

6. Buying Barbershop Business Equipment

In addition to buying equipment for cutting hair, you also need some supporting equipment in the barbershop room. Here are the equipment needed and the cost range to run a barbershop business:

7. Calculating Monthly Operating Costs

Operational costs are costs that arise to run barbershop business operations every month. The details of the barbershop's operational costs are:

The cost of employee salaries is adjusted to the number of employees. For starters, you can hire 2 to 3 employees according to your needs.

8. Preparing Promotional/Marketing Costs

One more cost of a barbershop business that should not be missed is the cost of promotion or marketing. In today's modern era, marketing activities can be done online without leaving offline marketing either.

Creating social media accounts such as Instagram and Facebook is a must to be able to compete today. Social media is needed to increase the presence of your barbershop business in the eyes of consumers. Consumers will first find out about your brand, and look for reviews and prices through social media. If you run promotions through social media organically, of course, the promotion costs incurred are much lower. Instead, you can take advantage of the paid advertising features that Instagram and Facebook provide. You can adjust the cost according to your needs and the length of time your ad runs. Minimum advertising costs on Instagram and Facebook can run with a budget of IDR 20,000 per day.

For offline marketing costs, you can prepare funds for the cost of making brochures that can be distributed or pasted in certain places. Prepare funds to print brochures of approximately Rp. 300,000. Meanwhile, if you decide to use advertising on social media, you can prepare a budget of IDR 300,000 per month. So, the total marketing costs used for this barbershop business can range from IDR 600,000.

9. Analysis of Profits and Break-Even Points of Barbershop Business

Assume that the price per haircut is Rp. 40,000, a day it can serve 15 customers, then the turnover per day is Rp. 40,000 x 15 = Rp. 600,000. So, the turnover per month is IDR 600,000 x 30 = IDR 18,000,000.

The details of the total initial costs needed to build a barbershop business are:

Net Profit per month:

Turnover – Operational Costs per month = IDR 18,000,000 – IDR 3,950,000 = IDR 14,050,000

Break Event Points:

(Initial Capital : Net Profit per Month) = (Rp 2,060,000 + Rp 14,125,000 + Rp 600,000) : (Rp 18,000,000 – Rp 3,950,000) = Rp 16,785,000 : Rp. 14,050,000 = 1.19

So, assuming a gross income per month of IDR 18,000,000 and an initial capital of 16,785,000, your initial capital will return on investment in approximately 1 month.

Such is the picture in opening a barbershop business, including the range of business capital. Are BFI Friends interested in getting started? If you are interested and need funds as additional business capital, you can apply for a business capital loan through BFI Finance! The way is enough to guarantee BPKB Cars, Motorcycles, and Home Certificates, you have the opportunity to get loans with various ceilings, low interest, and fast approval processes. You can get a loan limit of at least IDR 10,000,000 for car BPKB guarantees, IDR 1,000,000 for Motorcycle BPKB guarantees, and IDR 70,000,000 for Home Certificate guarantees. BFI Finance has been registered and supervised by OJK, and is one of the oldest finance companies in Indonesia. BFI Finance has approximately 300 branches and outlets spread throughout Indonesia and have served the financial needs of thousands of customers from all over Indonesia. In this digital era, applying for financing is easier because only by accessing the form below, you can immediately apply for a loan according to your needs! Come on, submit your financing immediately through BFI Finance!

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