If you’re thinking about opening a hair salon or barbershop, it’s a good idea to understand the challenges and rewards of owning one. Whether you’re a hair professional who wants to build your business and expand your career or an individual who is looking to invest and start one as a business venture, there are many things to consider. Let’s look at some of the challenges and rewards that come with owning a hair salon or barbershop.

CHALLENGES

Competition:

Hair salons and barbershops are popular businesses, and there is a lot of competition in the industry. It can be challenging to stand out from the crowd and attract customers.

Different ways to do this are creating a decorative theme to the place. Perhaps you want to give it a retro look or a modern, clean look. The look and feel of the place will attract a certain type of customer and can also set the expectation for the types of services offered as well as price points.

You can also stand out by offering unique services. For example, Dry Bar is not your typical hair salon. They specialize in hair styling and don’t do any cutting. Their unique position in the market gives them little competition. You might decide to have a location specializing in short haircuts, color processing or exclusive shaving experiences. By specializing in one area and getting really good at it, you salon or shop can generally charge more for the service.

Staffing:

Finding and retaining talented stylists and barbers can be a challenge. The turnover rate in the industry can be high, and it can be difficult to find reliable employees. While sometimes it cannot be helped, there are different things that can be done to improve retention rate. Keeping a positive and healthy environment, having clear and appropriate practices and providing fair station fees can all promote staff happiness. It’s important to get stylist and barber feedback so you can make improvements when needed.

Keeping up with trends:

The hair and beauty industry is constantly evolving, and it can be challenging to keep up with the latest trends, techniques, and products. This means staying in tune with the pulse of the industry which could mean attending shows, reading industry magazines and monitoring social media for what’s new. These trends, techniques and products could lead to new services offered, a more streamlined way of doing business or a healthier way to provide a service. If they are in demand, it could bring more business to the salon or barbershop.

Managing finances:

Running a successful salon or barbershop requires careful financial management. Owners must balance expenses such as rent, utilities, and supplies with revenue from services and retail sales. This is very important and is the backbone to its sustainability. Having an organized way of detailing out the costs and revenue can determine what areas costing too much and what areas are generating higher profits.

REWARDS

Creative expression:

Hair styling and grooming are creative professions, and owning a salon or barbershop allows owners to express their creativity and work with clients to achieve their desired look. By having a salon or barbershop you not only get to be creative with your client’s hair but also get to be creative with the look and feel of the environment. You can be creative with the décor, the name and build a larger brand.

Building relationships:

Salons and barbershops are often social spaces where clients come to relax and chat with their stylist or barber. Owners can build lasting relationships with their clients and create a welcoming and friendly environment. They also have a greater opportunity to build relationships with other hair professionals, retail brands, business professionals and more. The circle of relationships will expand.

Flexible schedule:

While owning a salon or barbershop requires hard work and dedication, it also allows for some flexibility in scheduling. Owners can set their own hours and manage their time to balance work and personal life.

Financial independence:

Owning a successful salon or barbershop can provide financial stability and independence. Owners have the potential to earn a good income and build a profitable business that can support their lifestyle and future goals. It can bring in more revenue and monetary gain if done right.

Of course, there are other challenges and rewards for owning a salon or barbershop but these are important ones. If you’re still inclined, a good recommendation is to speak to actual salon and shop owners and get their take. They have invaluable experience and knowledge which could open your eyes to aspects of ownership you didn’t anticipate. It’s important to do your due diligence before jumping in so you know what you’re getting yourself into. Good luck!