Barbershop businesses are now a favorite due to the transformation of the modern male lifestyle, which cares about appearance and demands personalized service, comfortable spaces, and contemporary experiences. Today's barbershops no longer focus solely on haircuts, but have evolved to offer additional services such as styling, coloring, treatments, head massages, and technology-based hospitality.
The emergence of franchises, online booking apps, and digital marketing has made the barbershop industry increasingly dynamic and competitive.
1. Market Research & Concept Determination
Before starting, analyzing local hairstyle trends, target demographics, and surveying nearby barbershops is crucial for determining business positioning.
Define your business concept and values by differentiating your services (e.g., kids-friendly, premium barbershop, minimalist/vintage concept, or collaborative franchise). Choose a unique brand name, a memorable logo, and a tagline.
2. Legality and Permits
Don't neglect business legality: take care of your Business License (SIUP), Taxpayer Identification Number (NPWP), HO/location permit, and ensure your business has obtained a regional operational permit. Legality issues can hinder, or even close, expansion or franchise opportunities.
3. Initial Capital and Operational Costs
Initial Investment Capital Details
- Main barbershop equipment:
- Barber chair: Rp 1,850,000 - Rp 7,000,000/unit
- Clipper & trimmer: Rp 350,000 - Rp 1,500,000/unit
- Professional scissors: Rp 50,000 - Rp 700,000
- Comb: Rp 25,000 - Rp 100,000
- Large mirror: Rp 785,000 - Rp 1,200,000
- Additional equipment (apron, spray, towel, soap bowl, sterilizer): Rp 20,000 - Rp 500,000
- Waiting table, chairs, air conditioning, decorations, supporting lighting: Rp 300,000 - 5,000,000
- Total estimated equipment: Rp 14,000,000 - Rp 17,000,000 depending on scale.
- Premises Rental:
- Kiosk/shophouse rental starts from Rp 12 - 30 million/year, or around Rp 1 - 3 million/month depending on location and city.
- Promotion & Digital Costs:
- Digital branding: social media, website, SEO (Rp 300,000 - 5,000,000/month)
- Offline promotion: banners, brochures, collaborative events, minimum Rp 250,000 - 1,000,000/month.
- Monthly operating costs:
- Electricity & water: Rp 500,000 - 1,000,000
- Employee salaries: Rp 2 - 4 million per employee (minimum 2 people)
- Product inventory (pomade, shampoo, vitamins): Rp 250,000 - 700,000
- Unforeseen costs and equipment maintenance: Rp 300,000
Total Initial Capital
Total (average, can be lower or higher) to start a small-to-medium-scale barbershop:
IDR 17 million - IDR 25 million (excluding purchasing a shophouse).
4. Services Offered
In addition to haircuts, modern barbershops can consider adding the following services:
- Hair washing and massages
- Styling (hair drying, gel, hair oil)
- Mustache/sideburn coloring and styling, cream baths
- Kids' treatments
- Product sales (pomade, premium shampoo)
- Hair care education for customers
Add digital-based services such as online reservations and membership/loyalty programs to increase repeat orders.
5. Modern Promotion Strategies
- Maximize Digital Platforms: Create Instagram, TikTok, Facebook, and website accounts.
- Post before-and-after haircuts, customer testimonials, seasonal promotions, and hair trend education.
- Influencer & KOL Collaborations: Invite local micro-influencers to amplify content.
- Bundling Promotions and Events: Happy hours, student discounts, membership points, holiday events, and community collaborations (e.g., motorcycle and sports communities).
- Local SEO: Optimize Google Maps searches and customer reviews.
- Referral Program: Reward customers who recommend the barbershop.
6. SWOT Analysis, Challenges, and Solutions
Strengths
- The demand for stylish grooming is increasing
- Revenue is not significantly impacted by the economic crisis (haircuts remain a basic need)
- Expansion into retail products/grooming packages
Weaknesses
- Competition is very tight in urban areas
- Profit margins can be eroded if efficiency is minimal
- Dependence on barber skills and employee loyalty
Opportunities
- Collaboration with national franchises
- Digital marketing expands reach
- Special services (VIP, children, quick cut corner, home service)
Threats
- Hairstyle trends change rapidly
- Macroeconomic changes, fluctuating purchasing power
- Regulations & permits, and challenges in maintaining the quality of human resources and services
Competitive Solutions
- Regular barber training on trends and services
- Investment in online reservation and loyalty applications
- Cost efficiency (bulk buying, supplier collaboration) (local)
- Digital-friendly service and interior innovations (Wi-Fi, charging stations)
7. Calculate Break-Even Point and Profit Projection
Conservative assumptions:
Per day: 12-18 customers x Rp 40,000 = Rp 480,000 - Rp 720,000
Monthly: Rp 14,400,000 - Rp 21,600,000
Removing monthly operating costs: net profit is approximately Rp 10-18 million/month.
Return on investment (BEK) in 1-2 months if customer growth is stable, but generally 4-6 months as a safety buffer, taking into account the promotional period and market adaptation.
8. Digitalization Best Practices & the Future of Barbershops
- Use automated cashier and bookkeeping applications
- Integrate online reservations (Go-Life, WhatsApp Business), and create a customer attendance dashboard
- Leverage digital feedback to improve services
- Prepare a daily/weekly financial monitoring dashboard
- Strive for sustainability by regularly educating HR on digital trends and services
Conclusion:
The barbershop business is a promising opportunity as long as you start with thorough preparation, a digital strategy, service innovation, and operational efficiency. The key: combine quality service, a seamless digital experience, consistent branding, and a team of barbers who are constantly upgrading their skills and are customer-friendly.
Design a business development roadmap from the start, remembering scale projections and updating regulatory and HR challenges to ensure your business remains sustainable amidst market dynamics.
That's an overview of opening a barbershop, including the estimated capital requirements. Are you interested in starting one? If you're interested and need additional capital, you can apply for a business loan through BFI Finance! Simply by pledging your car, motorcycle, or house title, you'll have the opportunity to obtain loans with various limits, low interest rates, and a fast approval process. You can get a minimum loan limit of IDR 10,000,000 for a car title, IDR 1,000,000 for a motorcycle title, and IDR 70,000,000 for a house title. BFI Finance is licensed and supervised by the Financial Services Authority (OJK) and is one of the oldest financing companies in Indonesia. BFI Finance has approximately 300 branches and outlets spread throughout Indonesia and has served the financial needs of thousands of customers from across the country. In this digital era, applying for financing is easier than ever. Simply access the form below and you can immediately apply for a loan tailored to your needs! Come on, apply for your financing through BFI Finance!
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