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 positive cash flow for a barbershop is very important.
A salon or a barbershop needs a 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.
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.
If you are lacking cash to invest into your business, a small business loan can be an ideal solution. 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 business 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 the customers look and feel good, that they miss out on the ‘glam-up’ of their shop interiors. Upgrading or revamping your shop interiors can catch the customers’ attention, and will also motivate the new customers to come to your shop.
- Buy New Equipment
Make sure your tools are at the top of their game. The quality of the equipment can affect your work, therefore avoiding using low-quality products can help. Most of the equipment is expensive such as barber chairs, sterilizers, electric trimmers, and this expensive equipment can be purchased with the help of a small business loan. If you are looking for a checklist consisting of all of the necessary equipment, we have got you covered. Scan the below-mentioned list:
- 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 locations, a small business loan can help by providing the required working capital. Analyze your business plan, and find out if you can financially manage to operate at multiple locations. This might seem a lot to take on but with the aid of a small business loan, it is definitely worth thinking about. You can afford the construction cost and other opening costs with the help of a small business loan.
- Marketing and Branding Expenses
Solid Marketing strategy is a prerequisite of the customer flow. 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 includes your website, social media pages, and other marketing strategies. Small Business Loan will be your savior amidst all of this.
If you have examined your business plan and don’t have enough cash in hand to expand your business, your safest bet is to apply for a small business loan with Merchant Advisors!
Want to learn more about a small business loan? Read our blog or more business-related tips and strategies or follow us on Twitter (@Onlinecheck) and Facebook (@Onlinecheck).