Launching A Successful Business!

By Mark Rabone

As Esquire have just completed the task of relocating one of our shops, even after 20 years in business, it reminded me of the importance of planning and being prepared for what may eventuate.

These are my 5 non negotiables that anyone about to take the leap into barbershop ownership should have planned before you sign that lease!

1. Have a well-researched Business Plan

A robust business plan serves as a roadmap for your future, I still revert back to my original plan made over 20 years ago and while it’s evolved and become far more astute, it still serves as a reminder of the core principles I set out to achieve as a young businessman. For a plan to be successful it needs to be done with genuine research and conclusions, not with ‘potentially’ & likely’ scenarios.

When choosing your location conduct thorough research to understand market trends, foot traffic, customer needs, and even potential business interruptions (Brisbane has been hit by 2 severe floods in my time of business) This analysis informs strategic decisions and identifies opportunities for difference.

Liaise with other local business’s, hang around for the day to identity the quieter time & do some searches for potential development around the area.

Your plan should include your financial projections, outlining expected revenue, expenses and growth projection.

A marketing strategy that will resonate & reach your intended demographic... if you’re trying to attract CEO and corporate types, TikTok probably isn’t the space for it!

Your plan should also include the structure you intend to go down (sole trader, company etc) and ensure compliance with local laws, including necessary licenses and permits.

2. Your target demographic

Knowing your target market enables you to tailor your services, prices, and be more effective with your marketing strategies. Whether you decide that you want to be more classic, modern, urban or a traditional shop, knowing what client you want to attract should be on top of your list as it will be the basis of many decisions you have to make moving forward. Of course, these lines will blur and get crossed to a degree, but deciding what your ‘bread and butter’ client base looks like is paramount in deciding the direction that your business will head in.

3. Selecting the Ideal Location

The location of your business profoundly influences the afore mentioned customer base, marketing, and overall success, you’ve already decided on your target clientele, so now you want to ensure your business is situated where your customers reside or frequent or work.

For instance, a modern shop targeting young professionals would thrive in urban areas with a high concentration of units, offices (residents AND workers) Whilst Google is fantastic for small business operators, visibility for a shop is still a game changer when it comes to being busy, there’s a reason why shopping centres are so popular! Ground floor rents is always premium so make sure the foot traffic going past reflects the rent you pay. Finally, parking is a must for most shops, the more access to parking you have the further people will be prepared to travel for your services

4. Managing Costs

Financial knowledge and planning are essential during the length of your business but even more so at the beginning, a good accountant is your friend here!

You are probably very good at knowing Client’s and cutting hair but running a business is a completely different skill set that takes up many facets, but the first you must master is knowing what your outgoings and breakeven Look like.

As we are a very labour-intensive industry, it is difficult to break down our overheads in a traditional sense i.e. 30% going to fixed costs. 30% going to variable costs 10% to GST and 30% to the owners. Your fixed costs will be wages and rent, your variables will be insurances, stock, utility bills, marketing etc.

These can mount up very quickly so knowing ahead and being prepared for what is to come is essential. When budgeting for your fit out, make sure you have contingency, as often there will be things that arise you weren’t planning on! for example if the building is more than two stories high and you intend to have basins you’ll need an engineer report, possibly core drilling to be done, and of course to be approved by council which can mount up in costs before any work been done!

5. Branding

Your name should become synonymous with your branding, your identity, work ethos and the people that you hire should all align with your brand. It’s not just a logo. It is the very crux of what your business is about, and the clients should know what to expect when they come to see you simply because of that brand name. This will take time to become a reality, but make sure that the logos and your mission statement align with the business that you intend to build.

In conclusion, launching a successful business demands careful consideration of location, a deep understanding of your target demographic, prudent financial management, and comprehensive planning. By diligently addressing these aspects, you lay a strong foundation for your business’s growth and prosperity.

@esqmalegrooming @mark_rabone_hair