How to Start a Profitable Barber Shop

Just like brushing your teeth and wearing clothes, having our hair done has become an essential requirement of modern society.

For people to take us seriously, we need to look well-groomed for both social and business reasons.

Because these hair grooming services cannot be easily done at home, most people have to visit a beauty salon or barbershop at least once every month.

A barbershop (locally known as Kinyozi) is a good example of a sustainable business because people will always need haircuts.

Fashion styles may come and go, but hair cuts aren’t a fad or trend – they are a basic necessity.

Moreover, Kenya’s middle-class is growing at an alarming rate and you can jump onto this tide by starting your own executive barbershop.

One good thing about Kinyozi business is that it is not seasonal. Business flows in as usual come rain come shine.

This makes it a worthwhile venture to delve into.

Below is a step by step guide on what it takes to start an executive barbershop.

*Getting Started*

Before you start your own barbershop you will need to become a barber.

A beauty course in one of the many training centres in the country is inexpensive, and you can complete school and obtain your recommendations within a short period.

If however you’re not interested in becoming a barber (or if you are busy with your current occupation) then you can always consider the option of hiring a trained barber.

*Find Ideal Premises*

Of course, the ideal location is one that is easy to locate and access.

Most first-time customers to your business will be walk-in customers and therefore it is important to maximize on available foot traffic by choosing a strategic location for your business.

Keep in mind that you might be required to pay a good-will fee on some of the prime locations.

Average rent prices in residential areas in urban centres vary from Ksh.5,000 – Ksh.30,000 per month.

The same unit may go for Ksh.3,000 – Ksh.7,000 per month in rural areas.

High end streets attract premium rents of above Ksh.80 per square foot.

Keep in mind that some landlords require payment of a deposit prior to moving in.

So just to be safe, set aside a budget of Ksh.20,000 for premises if you are moving into a Ksh.10,000 per month premises.

*Shop Fit Out*

Call in a carpenter to carry out a basic shop fit out. This may include installing mirrors, cabinets as well as painting the shop.

On average carpentry labour costs Ksh.1,000 per day. The entire project may take three days and therefore you should budget for Ksh.20,000 or more depending on how beautiful you want your interior.

*Apply For Licenses*

The most basic form of license you will require in order to operate is the single business permit.

Cost of this permit varies from county to county with small stalls attracting as little as Ksh.7,000 license cost per year in some regions.

Those in the Nairobi Metropolitan region are advised to set aside at least Ksh.20,000 for single business permit.

*Buy Equipment*

The following is an example of a shopping list you can use. Note that it is not mandatory to buy all the items listed as you start. You can forego some of them and stock up on as the business grows.

*2 Basic barber chairs – Ksh.10,000 each (Locally made)

*2 WAHL Clippers – Ksh.3,000 each

*Equipment Sterilizer – Ksh.10,000

*Locally Made Sink Seat – Ksh.15,000

*Cosmetic Products – Ksh.3,000 (Including spirit and after-shave)

*Fabric sheets, towels, apron – Ksh.3,000

*Hair Style Charts – Ksh.1,000

*Waiting Lounge Chair – Ksh.1,500

*Water heating & storage – Ksh.5,000

*Small Basins – Ksh.1,000

*Backup Generator – Ksh.50,000

*Entertainment System – Ksh.30,000

*Hire and keep qualified, trained personnel*

Untrained personnel are more likely to cause harm and health problems to your clients (and a liability to your business).

It is important that you hire only qualified and well-trained barbers, beauticians, stylists, and other personnel.

It is your responsibility as the owner to ensure that your personnel are adequately trained and understand the importance of safe procedures.

You also have to consider providing training classes on a regular basis to help your personnel improve their product knowledge, skills and awareness of the latest trends in beauty, fashion and style.

The hardest thing with personnel in this business is keeping them. Good, well trained and professional stylists and beauticians are in constant demand and can leave your staff at very short notice.

The big challenge is to devise a strategy (just like with your customers) to keep them invested in your business. A good strategy is to let your employees earn a slice of money (commission) made from any services they offer.

This way, when they work more, they earn more and vice versa. This strategy works better than a flat wage or monthly salary which is usually the single biggest costs for any salon or barbershop business.

Often times, the best way to get the kind of well-trained and professional personnel you are looking for is to poach them from your competitors.

They may cost you more, but they are usually worth the money and effort.

Perks, performance incentives and awards are simple but often overlooked ways of reducing staff turnover and ensuring stability in your business.

*Get close to your clients and keep them satisfied always.*

A barbershop or salon’s best advertisement tool is word-of-mouth. If a client is happy with your services, they will continue coming back and are very likely to tell their friends, family, and colleagues about your salon.

Satisfied clients are the best and cheapest means of letting everyone know about your business. Another great reason to keep clients satisfied is the volume of repeat business they bring.

The lifetime value of each and every customer is in thousands of shillings – if they continue to visit at least once a month over the next five to twenty years.

However, keeping your clients satisfied doesn’t mean another barbershop can’t and won’t do the same, or even better. A simple way to keep all your clients glued to your barbershop is to win their trust by getting personal with them.

Start by implementing a simple customer loyalty program. Repeat customers get discounts for paying regular visits to the barbershop or salon and referring new customers.

Keep records of your customers’ names, phone numbers, email addresses, birthdays, anniversaries etc.

Send them hair and beauty tips via SMS, WhatsApp or email and remember to send best wishes on their special days (birthdays and anniversaries).

And when a customer has skipped a visit to your salon, call to check up on them and try to find out why they have been away.

This kind of customer engagement and care always guarantees an addiction to your services!

*Tips*

-Evenings are peak hours as well as weekends and public holidays

-You may consider adding an money agent business (e.g M-Pesa or Agency Bank) on the side to ensure steady supply of business

-The business typically takes 6 months to reach peak

-High-end executive barbershops charge Ksh.500 for a routine hair trim while standard ones charge Ksh.150. If you are targetting low income earners then Ksh.50 per trim would be a fair bet.

*How Much To Invest*

If you are planning to start at full-scale operations then you will require a budget of at least Ksh.200,000 (For a standard executive barbershop).

However you can always start small with Ksh.50,000 e.g. by reducing on your list of equipment and renting out a small room.

*How Much To Expect*

On average a well performing Kinyozi can give a net profit of 30% of total investment per month.

*How do barbershops and beauty salons make money?*

Barbershops and beauty salons offer a wide range of services from a basic haircut to an upscale full-hair, skin and body service.

Depending on the kind of customers you intend to target, the prices for these services can vary significantly. If you set up shop in a relatively poor neighbourhood, price is likely to a key decision factor for the kind of customers you will attract.

Middle-income and rich customers may not usually bother about prices as long as the quality of service they get is superb.

There are quite a number of ways to make money in the barbershop and hair salon business. The most popular of these include:

*Hair services:* This usually includes haircuts, shaving, trims and style (especially for men); highlights/foils, weaving and braids; hair & scalp treatments; hair extensions (including wigs, artificial and human hair), relaxers and perms; colour jobs, shampoo and conditioning; curling, reconstructing and permanent waving.

*Nail and Skin care:* The most common nail and skin care services are manicures, pedicures, fixing of acrylic (artificial) nails, polishing, sculptured nails, nail repair and hand conditioning treatments. The popular skin care services are facials, body waxing and massage.

*Sale of hair and beauty products:* Many beauty salons make money though a wide range of hair and beauty products they offer for sale within their shops. This has become a major money making stream for most salons because it’s more convenient for the customer to buy everything they need in one place!

Popular products sold by salons include: shampoo, daily and deep treatment conditioners, hair styling products such as mousse, gel, pomades and other specialty hair products.

Retailing professional hair products is an important strategy for retaining clients and making additional profits.

*Spa services:* Spas are fast becoming a growing niche in the African beauty salon business. Most entrepreneurs run them as standalone outfits or offer them in addition to all the services mentioned above.

Spas are also becoming very popular due to a growing awareness of its beauty, health and wellness benefits.

The common services offered by spas include: massage/aromatherapy, body scrubs, skin lightening, body wrapping, herbal wraps, derma abrasion, stretch mark and blemish treatments, anti-aging, facials, makeup, skin care, waxing, polishing, and anti-acne treatments. (photo credit: madamnoire.com)

*Personalised Home services:* This category includes all the services mentioned above and are offered to high-profile clients who prefer to have these services in their homes instead of visiting the salon.

These are usually high-paying customers who are unable, due to time, physical or social constraints, to visit the salon.

Celebrities, politicians and physically-challenged people are happy to pay more money to enjoy this type of service.

*Final Word*

The executive barbershop business idea is an ideal option for anyone who wishes to widen their fishing net.

And you don’t have to be a trained barber to start one. You can simply use your entrepreneurial prowess to start, then train a few young men from your area and recruit them to work for you.

That way you will not only have established a source of livelihood for yourself but also helped create employment for deserving young men and women.

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By

Timothy Angwenyi
Business Consultant

Justine Nyachieo
Business Man & Mentor

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