How to Use a Barber Shop Loan for Business Growth
Ultimately, even if you have impressive barber shop ideas, you can’t execute them if you don’t have ample working capital. That’s why we suggest applying for a barber shop loan! You’ll have financing available to put towards the five ideas we suggest in this post, or any other plans you want to pursue.
5 Ways to Spend Your Barber Shop Loan:
1. Hire a Few Assistants
Don’t rush through haircuts and other services because you have other customers waiting. It’s a simple fix – use a business loan to hire more employees who can help lighten your burden! Consider offering an apprenticeship, where you teach up-and-coming barbers the craft. You’ll be able to train them and offer them a job once they have gained enough experience.
Another way to recruit assistants is to visit local barber schools. You can recruit up-and-coming barbers in these programs and hire them once they complete their programs.
We also suggest trying a simple tactic – word of mouth recruiting! Reach out to people you know in the industry and see if they know anyone looking for a job at a barbershop business.
Ultimately, hiring more assistants will help you grow your customer base, and in turn increase your business’s sales.
2. Refresh Your Interior
You might be focusing on making your customers’ hair look top notch, but don’t underestimate the importance of your barber shop’s appearance! If your location needs updated paint, decor, chairs and other renovations, you should apply for a barber shop loan.
Giving your business’s interior a much-needed makeover will ensure that your customers’ experience is relaxing. Plus, you won’t have to worry about your store’s appearance deterring patrons from visiting.
3. Invest in New Tools
The quality of your scissors, clippers, razors and other tools can affect your work. Some barbers avoid updating these instruments so that they can save money, but this mistake might cause you to lose sales in the long-run.
So, instead of cutting corners on this area, you could use a business financing to purchase new tools. You’ll be surprised at how much easier your job could be when you have the right supplies!
4. Open a New Location
Do you have dreams of expanding your barber shop or salon business into a multi-location enterprise? If so, having access to additional working capital can help make that a reality!
Once you’re finished writing a business plan for your barber shop and have conducted some sales forecasting, determine if you could financially handle operating more than one location. This can be a large undertaking, but with the help of a small business loan, it’s certainly possible. You’ll be able to afford construction and opening costs, so that you can get your new establishment off to a strong start.
5. Boost Your Branding
If your current branding is underwhelming, you’re not going to attract new customers. To increase sales, use your business funding to pay for the following updates:
- Hire a web designer to give your business’s website a makeover.
- Allot money in your budget to pay for social media advertisements on networks such as Facebook, Instagram, and Twitter.
- Order printed marketing materials like flyers, stickers, and signs.
- Pay for advertising space on local directories, or popular platforms like Yelp and Foursquare.
Rejuvenating your marketing efforts will hopefully entice customers that have overlooked you in the past to visit your barber shop.
Are You Ready to Apply for a Barber Shop Business Loan?
If you’ve evaluated your barber shop business plan and found that you don’t have enough money to improve your establishment; apply for a loan! Having the funds you need to bring your barber shop ideas to fruition will enable you to build the best business possible.
If you’re a business owner that has received a barber shop loan, we want to hear from you! Tell us about your business grew after receiving barber shop financing by leaving a comment in the section below.
Editor’s Note: This post was updated for accuracy and comprehensiveness in May 2019.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.