Starting A Barber Shop At 18
Hi everyone, I’m James, and I’m 18. I’m currently in full time employment, working at a convenience store as a duty manager. I’ve been with my current employers around a year now but as time passes I’m getting increasingly fustrated for a number of reasons. I’ve been contemplating starting my own business for a few years now but I think I’ve finally spotted a decent opportunity, one that I hope I can exploit. A shop, just accross the road from where I work now has become available to rent, at £6,500 per year. The shop’s currently a country wear shop but I’d like to convert it into a barbers shop, employing three full time staff, whilst keeping my own job to supplement the rent of the shop and other additional costs of the business if required. I earn £650 a month, and have absolutely no outgoings at all except for petrol and food. It’s in a good, central location, directly opposite the exit of the town’s largest car park. I’ve started writing a business plan, and have prepared a financial forecast, and estimate that in addition to the rent I require £6,000 to start up. Would it be hard to get a loan to cover this ammount? Also, any other additional comments or advice would be much appreciated, Thanks in advance, James
Hi James my first impression would be that you would need more than £6,000 to convert the shop and pay for salaries as well as other associated out goings unless you have other investors and personal savings you can use. Also a bank manager may ask what you have as collateral for the loan and look at your experience with in the sector.
I also I think it may be difficult to hold down a job and run the business at the same time at first. Unless you have someone you can really trust.
However, I would definitely put a business plan together and go speak to your bank manager. It sounds like a good idea in principle and its always better to try.
Printing Service UK
Thanks for your reply.
The £6,000 I said I needed wasn’t inclusive of wages, or rent. I’m aiming to include rent as a regular outgoing within my cashflow forecasts rather than taking out a loan to pay for it. Same goes for wages of the employees. Initially I’d estimated I’d needed that £6,000 to pay for the fittings and equipment required, costing £5,848 for enough equipment for three members of staff to be cutting hair at any one time. However, I’ve now condensed the that number to two, and have reduced my staffing estimates so that there will never be three members of staff working at any one time. (Obviously should the shop prove successful, I can always expand at a later date). In addition to this I’ve revised my equipment and fittings list, in an attempt to find cheaper alternatives. The major saver being some cheaper baber styling units and chairs. In all the estimated cost for the equipment and fittings has been reduced to £2,784.
To go into it in a bit more detail, I’ve decided the shop will open 9-5 on Mondays, Tuesdays, Thursdays and Fridays. With Wednesdays opening 9-6 and Saturdays opening 9-7. (Market days in the town are Wednesdays and Saturdays, hence the longer opening hours due to;
1. More people in town in general.
2. The location being opposite to the town’s largest car park, which is always full on Wednesdays and Saturdays.
I aim to hire three people. That’s one Barber Shop Manager, one regular barber, and one apprentice. The manager will be expected to carry out the duties of a regular barber in addition to managing the shop itself. The manager will be on 38 hours a week, £6.50 an hour, plus a monthly bonus ammount for hitting targets. The barber will be on £5.75 an hour, 34 hours a week. Finally the apprentice will be doing 32 hours a week in addition to the one day a week at college. I have no barbering experience at all, I’ve merely (hopefully) spotted a what I believe to be a decent oporunity to acquire a shop in a decent location that I believe could become a successful barber shop. This is the reason I absolutely need to hire someone with experience to manage the shop. In addition to this I have ensured and calculated that for the majority of the hours the shop is open, two members of staff will be working. I’ve predicted when the quieter days and times may be and have decided to have the apprentice working at these times (with either the manager or regular barber) The monthly salaries of the employees is therefore as follows;
Barber Shop Manager £832 + Bonuses
This coming to a total of £1934 per month.
This is assuming we’ll need this ammount of staff. It may be an option, and a safer one at that, to start out with one full time employee and the apprentice, and to then expand if neccesary. My main concern and reservation for doing this however is due to my worries that should the shop get busy periods, one full time member of staff isn’t going to be able to cope, also the shop would be heavily relying on one person, what would we do when that member of staff is sick? Also they need days off, and holidays.
On the reserved assumption that the shop would average two customers an hour, at £7 each, the shop would be making a profit of £353 a month. I’ve estimated that as the customer base grows, an average of three customers an hour at £7 each results in a monthly profit of £1249.
I’ve also been looking at potential additional opportunities associated with the shop, and as it’s a three storey building (Ground floor – Sales/Retail Area of 19’6 x 15’6, Workshop/Office of 15’6 x 10’6. First Floor – Storage Room of 14’2 x 12, with additional Kitchenette and WC. Second Floor – 16’10 x 15’9) I’ve been considering the possibility of coverting either the ‘workshop/office’ on the ground floor, or the storage room on the first floor into possibly an internet cafe, or a Men’s Fashion Shop, or even both (With the Internet Cafe being on the ground floor, and the Men’s Fashion Shop on the second. Obviously any additional income generated from these two would be a real bonus, but the other added bonus is the opportunity to market the Barbers shop to customers of the Internet Cafe/Fashion Shop and vice versa.