There are more than 140,000 businesses providing barbershop services in the United States. These barbershops offer almost 150,000 direct employment opportunities and generated almost $800 million in revenues. Running and maintaining a positive cash flow for a barbershop is very important.
A salon or a barbershop needs sufficient amount of cash available to fulfill its operations and other obligations. Cash flow is calculated by the amount of cash a salon or barbershop generates in a certain time frame. It could be calculated on a daily, weekly, monthly or quarterly basis.
A positive cash flow might not convert into profitability. However, it does specify that a business can meet its requirements. A barbershop generates most of its revenue from the services they provide, may need less amount of working capital as compared to a large business in retail products.
Without sufficient amount of cash flow on hand, it may be quite difficult to manage short-term financial requirements, such as covering the employees’ payroll, paying invoices, purchasing inventory or even something as simple as keeping the shop running.
And if you are lacking cash to invest in to your business, a small business loan is the ideal solution for you to acquire. Here is how a small business loan can help your barbershop;
- Hire Assistants
If you are the only barber in your shop and have too much burden of work on your shoulders that you can’t handle, you can hire 1-2 assistants to manage your customers. You can do this with the help of small business loans. These loans can help you pay your workers and manage some other operational expenses.
- Revamping Your Interiors
Don’t forget to revamp your interiors because many barbershop owners are busy enough in making their customers look and feel good, but they even didn’t pay attention to their shop interiors. Upgrading or revamping your shop interiors can attract not only your customers’ attention, but also motivate new customers to come to your shop.
- Buy New Equipment
The quality of the equipment can affect your work, therefore barbers avoid using low-quality products. Most of the equipment are expensive such as barber chairs and sterilizers, as well as electric trimmers and these expensive equipment can be purchased by getting a small business loan. Here are some of the equipment used in a barbershop;
- Electric trimmers
- Disinfection and cleaners
- Hair vacuum
- Shaving and beard products
- Haircare products
- Open Second Location
If you are looking to expand your barbershop business into multiple location, small business loan can help by providing the required working capital. Evaluate your business plan, and find out if you could financially manage operating multiple locations. This can be a large undertaking, but with the help of a small business loan, it is definitely possible. You can afford the construction cost and other opening costs.
- Marketing and Branding Expenses
How can you get customers if you don’t have any marketing strategy? Having a solid marketing strategy can help you attract more new customers. The same way, branding is another important factor to consider. You can increase your overall sales by updating digital presence, which include your website, social media pages, and other marketing resources. These all additional costs can be managed with small business loan.
If you have examined your business plan and don’t have enough cash in hand to expand your business; the best move that you can make is apply for a small business loan!
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