Setting up a barber shop

whacker1982

Hopefully im in the right area here, but im thinking of opening up a barbers in my town its a large enough town with a population of 6-7 thousand people living here and growing.

My questions are costs, so far i have rent, tax, power, water, bin charges and even vat.

What is the vat for a hair cut 23%

What is the tax gonna be like?

I will have two people working in there one full time and the other part time, the part time worker will be by girlfriend who is doing a beginners class in limerick and will advance to become a qualified barber.
The full time guy will be hired in, what kind of wages are barbers making?
want to crunch all the numbers together before making my decision.

Im working full time at the moment so i would like to have it up and running while i still work at my full time job. Will my taxes be higher because ill be running a business and making a profit, and also working in a full time job? Ill be doing night classes to become a barber myself and eventually it will be just myself and my girlfriend running the barbers.

If i forget any other costs please fell free to let me know, want to have every cost to me known before taking the plunge. thanks people.

sob1467

Similar thread here: http://www.boards.ie/vbulletin/showthread.php?p=76506596

Story is still probably the same. Also do not forget insurance costs.

whacker1982

public liability insurance, forgot that one! would i get any help from a development project to assist me with some of the costs, signage etc...

jimmii

Bank charges, marketing, till, bags, retail stock, music licensing, tea and coffee!

whacker1982

jimmii wrote: »

Bank charges, marketing, till, bags, retail stock, music licensing, tea and coffee!

All that would be acquired, I have the financial set up money. It's when the business is in motion is where I'm looking to find the costs. Tax, vat, rent etc...

jimmii

whacker1982 wrote: »

All that would be acquired, I have the financial set up money. It's when the business is in motion is where I'm looking to find the costs. Tax, vat, rent etc...

Well hopefully you'll have to buy more stock at some point! Hard to know which costs you are missing without listing them all but sounds like you have the major ones.

whacker1982

jimmii wrote: »

Well hopefully you'll have to buy more stock at some point! Hard to know which costs you are missing without listing them all but sounds like you have the major ones.

Yea just thinking that too, there is lots of other costs like wi fi and so on. Just need to put it down on paper. Be looking for a barber and a good one and how much would there hourly rate be

mickdw

Council rates would be a significant bill each year.

jimmii

whacker1982 wrote: »

Yea just thinking that too, there is lots of other costs like wi fi and so on. Just need to put it down on paper. Be looking for a barber and a good one and how much would there hourly rate be

Yeh definitely write it down there are a lot of €20-€100 costs that quickly add up.

hfallada

jimmii wrote: »

Bank charges, marketing, till, bags, retail stock, music licensing, tea and coffee!

Most banks offer a year free banking for new businesses. If op is sole trader a cheap personal current account is fine. Marketing will be minimal in a small town eg a Facebook page, a small launch day. There is a loop hole for music licencing if it's radio and for the employees enjoyment. This was decided legal in the courts here a few years ago. No barber in Dublin offers tea and coffee.

Op you have to ask what is your unique selling point. Why would people go to you instead of their current barber? You have to ask even if you are profitable. With such a small town can you make a decent living?

But it's a business with very small start up costs compared to other business eg restaurants can cost a million to set up in Dublin

MagicMarker

How much can a barber shop with a single full time barber and unqualified part timer make? Not that much I would have thought.

It would be one thing if you were going to be the full time barber. But after paying your girlfriend and a full time experienced barber (surely 25k min?, get what you pay for etc..), rents/costs/insurance/equipment.... What's left over for you?

MagicMarker

hfallada wrote: »

No barber in Dublin offers tea and coffee.

Mine does.

Consider having the barber you bring in rent the chair from you, as opposed to paying him a salary!

thecommander

Deleted User wrote: »

Consider having the barber you bring in rent the chair from you, as opposed to paying him a salary!

What happens when someone walks in off the street? Does the shop own the customer, or does the barber that's renting the chair? Just curious.

thecommander

thecommander wrote: »

What happens when someone walks in off the street? Does the shop own the customer, or does the barber that's renting the chair? Just curious.

Im not sure exactly how it works, but I have seen a few barbers operating this system. Years ago I went to a barber in Australia, there was about 15 chairs in the place, and each barber rented his own chair, and had a bunch of his/her own hair products etc. Brought their own scissors and so on. The place was very busy now with no downtime which might have been a reason that system worked. Worth investigating.

jimmii

hfallada wrote: »

There is a loop hole for music licencing if it's radio and for the employees enjoyment. This was decided legal in the courts here a few years ago.


No barber in Dublin offers tea and coffee.

You still pay IMRO no matter what and good luck getting PPI to back down unless you are willing to go to court for the sake off a few hundred then you end up paying they just ignore you until you do. I spent ages trying to convince them that I didn't have to pay but they didn't care. Very very annoying they are!!

If no barbers offer tea and coffee that seems like a dam good reason to offer tea and coffee.

guitarrrszz

vgood luck mate

Fukuyama

jimmii wrote: »

You still pay IMRO no matter what and good luck getting PPI to back down unless you are willing to go to court for the sake off a few hundred then you end up paying they just ignore you until you do. I spent ages trying to convince them that I didn't have to pay but they didn't care. Very very annoying they are!!

If no barbers offer tea and coffee that seems like a dam good reason to offer tea and coffee.

Have to say, if a barber asked me "would you like a coffee" I'd be a bit weirded out and likely respond "no, I want a haircut". Seems like more of a ladies salon type thing where clients go half for a haircut, half for a coffee + gossip.

Have heard of a few placed now offering a free bottle of beer and such. Wouldn't take one myself but some blokes would.

If OP became a good barber, known for doing decent haircuts with good finishes he'll do alright. Stick on a radio, have a few decent newspapers/magazines to read while waiting and did a bit of social media marketing he could build up a good loyal customer base.

I switched away from my usual place a while back because the owner hired a bunch of staff and stopped working himself. They were brutal and didn't remember me at all or do a consistent job each time. So I started going to a Chinese bloke who remembers me and my usual cut.

Edit: A mate of mine goes to a barber with a little stamped loyalty card. Ten haircuts then a free one. Plus, every time you use a loyalty card you get €2 off to bring the price down to €10.

jimmii

That sounds like a great loyalty card! Definitely a good addition. A lot of barbers seem to be stuck I their ways I think its definitely worth trying something different. I also wouldn't really go for a beer while having my hair cut (definitely wouldn't say no to a cup of tea though!) But I would imagine of could definitely be a deciding factor for a lot of people.

Aint Eazy Being Cheezy

Dean0088 wrote: »

Have to say, if a barber asked me "would you like a coffee" I'd be a bit weirded out and likely respond "no, I want a haircut".

Are you autistic?

sh1tstirrer

mickdw wrote: »

Council rates would be a significant bill each year.

On rates I found out a few years back that if the old tenant didn't pay his rates that the bill will automatically go to the new tenant, crazy but true. You need to check out any premises you rent for unpaid rates.

The Cunning Linguist

The Cunning Linguist wrote: »

Are you autistic?

Christ :pac::pac::pac::pac::D

I live in norway at the moment, last time I went into a barber first thing I was offered was a coffee. Mind you its almost 100 euro to get a haircut there so they would want to be offering you a few biscuits as well!