![How to plan and track the budget of your barber shop [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-8_6c7eae5f-2772-4b65-90e0-ecb75c55b575.png?v=1715856524&width=1100)
If you don’t plan and track your barber shop budget properly, you're setting yourself up for failure.
When we developed our strategy pack for barber shop owners, we saw a lot of barbers struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having a steady stream of clients.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your barber shop's finances around and set you on the path to success!
Get the budget tracker tailored for barber shops
Most barber shop owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for barber shops
Here is an example of a (very) detailed budget for a barber shop, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for barber shop space | $3,000 | $36,000 |
| Electricity | Power consumption for lighting and equipment | $400 | $4,800 |
| Water | Water usage for washing hair and cleaning | $150 | $1,800 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Master Barber | 1 | $4,000 | $4,000 | $48,000 |
| Barbers | 3 | $2,500 | $7,500 | $90,000 |
| Receptionist | 1 | $2,000 | $2,000 | $24,000 |
| Manager | 1 | $3,500 | $3,500 | $42,000 |
3. Supplies & Inventory
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Hair Products | Shampoos, conditioners, styling products | $500 | $6,000 |
| Sanitation Supplies | Disinfectants, sanitizers, cleaning supplies | $200 | $2,400 |
| Tools & Equipment | Clippers, scissors, combs, etc. | $300 | $3,600 |
| Uniforms | Barber capes, aprons, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $200 | $2,400 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of barber tools | $200 | $2,400 |
| Licenses & Permits | Business licenses, health permits, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Staff Training | Training programs and materials | $150 | $1,800 |
Some barber shops make 5x more profit than you!
We have studied the strategies of the best barber shops in the world. Replicate them now!
What are the biggest expenses for a barber shop?
Be mindful of these pitfalls. Here are five major costs every barber shop owner needs to consider, along with some tips on how to manage them effectively.
- Hair and grooming productsThese can take up a significant portion of your budget. You're dealing with consumables, and prices can vary based on brand, quality, and supplier. To keep these costs in check, focus on inventory management, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by stocking too much or opting for premium products that don’t add enough value.
- Your barber shop staffYour team is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled team to provide excellent service and keep operations running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your barber shopPrime locations come with high rent, but they can attract more clients. Utilities like electricity, water, and heating are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to get the word out about your barber shop, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Barber equipment and maintenance costsThis includes everything from clippers and scissors to chairs and mirrors. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, high-quality equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your barber shop?
Here are practical tips to help you, as a barber shop owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Hair Products | Partner with local suppliers for bulk purchases of high-quality, cost-effective hair products. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient appliances to reduce electricity bills. |
| Marketing | Run social media contests for your barber shop and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of clippers, scissors, and other tools. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Furniture | Invest in high-quality, durable chairs and stations that can withstand frequent use. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep skills up-to-date. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle where possible. |
| Technology | Invest in multi-functional grooming tools and utilize barber shop management software for appointments and customer records. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable capes and towels. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan supply runs to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital appointment systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best barber shops in the world!
There are barber shops that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a barber shop
Yes, some expenses for your barber shop are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Barber Shop Expense | Reason It's Useless |
|---|---|
| Luxurious Decor | Overly lavish decor doesn't necessarily attract more clients and can be a drain on the budget. |
| Premium Hair Products | Unless you cater to a high-end clientele, most customers are satisfied with mid-range products. |
| Excessive Service Options | A large variety of services increases inventory costs and can complicate scheduling. |
| High-End Barber Chairs | Top-of-the-line chairs are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your barber shop. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Hair Products | Using rare products can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Towels | Personalized towels are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Waiting Area Decor | Elaborate decor in the waiting area is often ignored by customers and adds to the cost. |
| High-End Tools | Luxury tools are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Service Menus | Frequently redesigning service menus is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Grooming Equipment | Specialized grooming equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your barber shop!
Managing a budget for a barber shop when funds are tight can feel like a nightmare. It's like being in a bind where any unexpected expense can overwhelm you.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to spend.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of barber shops just like yours. Get them now!
Make your barber shop more profitable
We have studied the strategies of the best barber shops in the world. All their tactics are explained in our pack!
