Just like our recent article about getting funding for hair salons, there’s a lot of similarities when it comes to barbershops. Most barbershops need extra working capital to expand and scale their business, fortunately obtaining working capital as a growing barbershop has better chances of approval than most industries. In this article, we’ll be giving you all the possible scenarios you may encounter when applying for a business loan for your barbershop. First, we’ll discuss the types of needs for this type of financing, then the types of loans available and how to qualify for them.
Equipment Financing
When growing a barbershop, it’s important that the tools needed to execute the service must be up to date. Statistics show that the reason small businesses cannot scale their barbershop and overall miss out on new business is because of their outdated equipment, fortunately, with equipment financing, you’re able to obtain working capital to purchase the equipment you need and put it to use immediately.
Expansion
Your barbershop has been operating for a few months now and finally, you’re profitable! But then you realize not only you have more workload than you can handle, but you’re missing a lot of opportunities as well. Whether it’s hiring more staff, building an addition to your current salon or opening a new location it is imperative to seek working capital to make this upgrade in your business.
Inventory Financing
As you’re growing your barbershop business, having quality products to properly serve your customers is very important. The quality of things like shampoo, clippers, etc will not only make a difference in the results of the service you’re offering but going the extra mile for your customers and investing in quality products will definitely result in higher client retention and a snowball effect which will produce more word of mouth referrals.
Marketing
This topic is always brought up in almost all industries, not just the cosmetics industry because without marketing breaking out of obscurity will be very difficult especially with the constant changes in acquiring new customers. Marketing strategies like social media or direct mail can take a toll on your overhead if you’re coming out of pocket. This is where obtaining working capital could benefit your business, strategically using the additional funds to generate more qualified clients to scale the business.
