With the holidays winding down and 2023 soon to be fading in the rearview mirror, it’s time to turn your attention to the new year and all the glorious potential it holds. As a barber and entrepreneurial-minded individual, your mind no doubt drifts to the many exciting ways you can grow your business and flex your creative muscles in 2024.
While you will have opportunities to embrace those inspiring elements of your barbering career, it’s important to build a strong foundation first. In the world of business, that means having a plan and developing a budget to guide you in the new year.
Barbershop Budgeting for 2024: Expenses to Consider
Every barber’s plans and needs are different, making budgeting a uniquely personal experience. That said, there are a handful of universal considerations when thinking about your budgetary requirements for the coming year. By applying your personal circumstances to these ideas, you can develop a budget that sets your barbering biz up for success in the coming year.
Barber Insurance
All the planning in the world goes out the window when something unforeseen and unfortunate happens. Whether it’s a slip and fall accident, a reaction to a chemical, or a mistake on your part, any time a visitor to your shop experiences an injury, you could find yourself in a serious position.
Insurance is a safeguard that protects your business financially, preserves your reputation, and otherwise can save you from bad outcomes. Most great plans, like those from the National Association of Barbers, include both limited and general liability insurance for barbers, as well as a host of perks.
Marketing Your Barbershop
Reaching your ideal audience and attracting potential clients to your shop is a must, especially if you want to continue growing your barbering biz. To see this goal realized, you must invest in a solid marketing strategy that appeals to the people you want to attract.
Much of today’s marketing is done digitally, giving you incredible access to a massive audience. However, traditional marketing methods, such as word of mouth and physical materials, are still very effective and worth your time, attention, and inclusion in your budget.
Essential Supplies
To run smoothly, your barbershop relies on a steady store of essential supplies. From disinfectants to shampoos, now is the time to take stock of what you have, your consumption of said supplies in 2023, and your projected needs in the new year. Then, factor the amount of these products and any cost increases into your new budget.
Retail Hair and Skin Care Products
The end of the year is the perfect time to evaluate your retail products and how they performed over the last 12 months. What was in demand? What was profitable? What did customers like or dislike?
Answering these questions and determining which products were worth the investment can give you guidance for your retail strategy. Then, you can work this strategy into your 2024 budget, accounting for the inventory you need to keep on hand.
Barbershop Space
The physical space in which you do business is among the most significant expenses you have as a barber. Whether you operate in a building of your own or rent a barbering suite, considering your rent, utilities, upkeep, and other overhead expenses is vital when budgeting.
If any changes in these expenses are occurring, now is the time to account for them. Certain costs, such as utilities, may vary depending on the month and season, so looking back at last year’s expenses and operating off averages is a good way to project your expenses going forward.
Updates, Improvements, and Growth
Hopefully, the new year is filled with exciting opportunities to grow your barbering biz. From updating your barbershop space to offering new services to opening a second location, the expression of improvement and growth can vary.
The important thing is to factor any planned changes into your budget to ensure you have the financial capacity to facilitate those changes. This may be an exercise in prioritization, pushing you to allocate more funds to your goals while cutting back on optional expenditures elsewhere.
Having a plan as you enter the new year is essential to streamlining your operations and setting your barbershop up for success. Other aspects of your plan matter and can help you prioritize certain things in the coming months, but your budget is the engine that moves you forward.
For more barbering insights, subscribe to NAOB and visit our frequently updated blog. With the latest barbering news and tips at your disposal, you can equip yourself with the knowledge you need to thrive in 2024 and beyond.
