How to Start a Barbershop Business After Lockdown in 2021 (Feroze Mcleod from Singapore)

How to Start a Barbershop Business After Lockdown in 2021 (Feroze Mcleod from Singapore)

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you need a clap i was getting ready to be  disappointed three thousand dollars for one meal   oh my god i started to get very stressed out one  of the main business mistakes that i made was like   hardcore is like let's talk a bit more about  numbers every single thing that that is in   there makes me happy in this video we are  going to talk about how to open a barbershop   how much money you need to invest potential  revenue and profit we will also discuss how   to find the best location for your barber shop  where to hire talented barbers and mistakes that   you can make in the beginning our guest today is  ferrous mccloud he is a famous guy in the tattoo   scene but on top of being an artist himself and  owning a tattoo shop he recently restarted his   barbershop business which he was running for  several years before shutting it down in 2017.   enjoy when you are very famous in tattoo business  world right yeah i don't know about that yeah and   i got your first or two from you this time this  beautiful thing actually so that's how we met   but today we're gonna talk more about like  your second business barbershop business   um you opened the the shop first time in 2012  yeah how you came up with this idea in the   first place because you were doing like tattoos  before and then you came up with this yeah so   i was growing up in new zealand and  i was playing music with punk bands   and i was skateboarding a lot and a lot of  the a lot of the people that i looked up to   they all had tattoos and they all had their hair  really nicely combed and stuff like that and i   didn't really know what was going on that much  and i was trying to you know follow this style   right and so when i started to investigate  about how how these guys were living   their lifestyle and then i started to to read  up on how they used to spend a lot of time in   barber shops and tattoo shops and that's where  their community used to come together and and   hang out you know what i mean so when i came back  to singapore i was this this at this point i was   living in new zealand and then i came back to  singapore and then i started you know going to   the regular barber shops and and i was trying  to find that that vibe yeah so i i was going   to these barber shops and and trying to to tell  them how to cut my hair and stuff like that but i   remember the feeling that every time i went there  i was like i was getting ready to be disappointed   you know what i mean like i know i knew that when  i walked in there everybody like they were gonna   [ __ ] it up and i was gonna be like oh my god  i don't know so i started to have to really tell   them exactly like how i wanted it cut and stuff  like this and i used to get laughed at a lot   because that wasn't a very common style to like  have your hair really neat at that point of time   this is like i don't know 2005 so everybody had  really messy hair or that was the trend back then   so after after like being really really annoyed  by by trying to get my hair cut and trying to get   like a hotel shave experience i started to think  to myself like man like i should probably do it   because there's no there's nowhere in singapore  that i can do it so i started tattooing and then   i wanted to open a tattoo shop but i didn't  want it to be like a regular tattoo shop   so then i was you know people were always making  making jokes about how i would open a barber shop   because of the way i dressed i was always dressed  nicely with with a neat haircut and stuff like   that like in terms of spending so how's life in  singapore is it's expensive right yes life in   singapore is pretty expensive what would be your  like monthly spendings okay so i have my apartment   which i pay about three thousand dollars a month  for and that's just rental yeah and on top of that   your bills come up to about 200 bucks and then  you have food and your average meal here is about   12 or 15 for one meal and that's like that's  like not expensive that's like a cheap meal   yeah and so daily expenses man i  think you're looking at around 50   a day on top of that transport so i have this  car and i have two motorcycles motorcycles are a   lot cheaper to run yeah and i mean for me petrol  and parking costs about hundred dollars a month and so you open this one uh this barber shop not  another location but the same concept in 2012   then you closed it in five years yes why was it  and why you reopen it right now so when i when   when we when we opened in 2012 we were the first  of this kind of barber shop to open in singapore   so i was very young i was 25 and in the back  of the shop i had my tattoo shop that's where   i started the tattoo shop team and then slowly  you know the barber shop started to get a lot of   traction it started to get really really popular  purely because we were the first ones to do it and   we had a very we had a very um alternative  attitude into running a business we didn't   we didn't really care what people thought  we did whatever the [ __ ] we wanted we had   massive parties we had you know it was it was  really really awesome it was a great vibe and   i was really happy about how it turned out  but it got really really popular and that   led to to me making a lot of business mistakes  because i was just not i was not business heavy   and i was really just going along with the ride  and one at one point they got they got really   really too big for me to be able to handle the  business and so i started to get very stressed out   because i had been right about so many things when  i was running the business at the start that i   became scared to make a wrong decision yeah do you  understand you said about mistakes can you can you   tell me what was the mistakes what was the main  challenges in the beginning so one of the main   business mistakes that i made was the salary  structures for for barbers yeah see because i   didn't i didn't have anything to base it on i was  the first one to do it i i didn't know any of the   structures of of how people got paid so i treated  it like a tattoo shop okay but it's different   it's totally different okay what's that what's the  difference in a tattoo shop people make commission   only so only only commission okay yeah so i  treated the barbers as as they were tattooers   but when you go down the road if you already give  them a certain commission and it doesn't work for   the business then there's no way for you to pay  them less you know unless unless you you don't   care about them and i cared about them i worked  with friends like a lot of them were my friends so   it was very difficult for me to balance the the  friendship and the and the work relationship with   them and so that was one of the main problems  was also the business structure of how we paid   the salaries and how we balance the books and and  accounting and everything it was very very off   but a lot of people that run barber shops now  follow that structure yeah which is i mean it's   fortunate for me now because now i know how to how  to avoid that but there are still a lot of shops   that do that yeah and if if people are planning  to open a barbershop and having a commission   structure like it's probably best that they don't  because they have to look at the numbers properly   they have to do a pl p l sheet properly and  really understand what kind of target that   they want to hit and what kind of salary they  want to give so that the business doesn't suffer   if for example you do if you do 30 less people  a month then you're not going to suffer yeah in   those days it was only commission so if we if we  had a slow month the business would really suffer   because then we have to pay them whatever it was  50 or whatever the percentage was at that time   uh how you look for the professional barbers i  guess it's the one of the main things like in this   business to find a real professional yeah and also  a person who can talk right or who can like like   communicate with the customer in a right way yeah  that is the most challenging aspect of running the   barbershop it is the most challenging and it was  the most challenging challenging from the start   when we started if you can imagine  there's no barbers everybody was uh   there was only hairdressers so i had to teach my  friends how to do it so that's why a lot of the   people that worked for me were friends of mine  yeah and so now there are a lot more barbers but   obviously you need to know where to find them  so usually that leads to poaching right now so   when we look for barbers we've we've looked we  usually look for someone that can lead the team   so that when he is there other people can follow  his example so freddie is that guy for us so   we decided to work with him as a partner so that  he has a stake in the business and so when he   comes into this into the barber shop we know  that he cares about how the barbershop runs   if you hire a professional barber that has his own  following and has his own thing it's the same as a   tattooist they don't need you you know what i mean  they could just do it at home and they'd be fine   so obviously having an environment that is very  comfortable for a barber to work is one of the   things that can attract barbers to work in your in  your shop but also having a good leader that has   charisma and and is able to lead younger barbers  to to follow his footsteps is what we're going for   yeah so we're mostly going for young barbers  that are enthusiastic and that are happy to   be here and then you teach them yes you train  them yeah okay tell me about this car it's it's   ridiculously amazing this car yeah so i bought  this car five years ago yeah and i really wanted   a classic car so i just looked online and to be  honest it was really lucky that i found it because   i just found the listing on the website yeah and  then yeah i figured out how to buy it and then i   did that was five years ago but you know that car  prices here super expensive right oh yeah yeah   how much of that for this car yeah i bought it for  around 60 000 60k yeah and it only had three years   left on the on the tax the co attacks so i just  renewed it recently i renewed it two years ago   yeah so i have had to put another  forty thousand dollars into the car   so if for example you have like really good  professional barber um what would be the the   the percentage of fixed for him and the commission  so if commission probably will be much much bigger   so that's where the balance comes in because  then you have to you have to base the whole   your whole target of of what you want to sell in  one month and then you have to know how much of   that goes to salaries yeah after you know how  much of that goes to salaries and how much you   want the company how much you want the company to  profit every month for you to build the business   and then you can start to put aside how  much you think is fair for each of the   staff for example there's a guy that  would probably have 10 years experience   obviously you get paid more than  somebody who has one year experience   but at the same time the amount that you have for  salaries that you put aside has to balance that   so if if somebody is making say 1200 basic plus  a low target so if he makes 1200 basic and he   has a target of say 5 000 sales then he hits  a percentage commission somebody with 10 years   experience may get 3000 basic but then have a 9  000 target for him to start getting his commission   because we're trusting in him to have a high basic  so that he doesn't have to worry too much about   clientele but at the same time he has the ability  to be able to reach a target so that he can start   earning commission uh why you don't drink if  i can ask uh so i used to play in a lot of   a lot of punk bands when i was growing up and one  of the bands that i played in became really really   popular at the time so yeah it was a hardcore  band and while we were playing the there was a lot   of young kids that that listened to us and so i  didn't drink and i didn't i didn't i never smoked   so in the punk scene there is a lifestyle choice  called straight edge yeah and so i adopted this   lifestyle and i started promoting it to like help  young kids you know make better decisions on how   they want to live hopefully they can follow my  footsteps in uh not drinking and not poisoning   themselves with alcohol or drugs and stuff  like that yeah so that was what made me do it   i also used to do like this punk rock and hardcore  i played the guitar and also yeah i tried to do   i tried to sing as well i wouldn't call  it singing like yeah hardcore is like the social media like it looks like  sounds pretty active in social media yeah   is it like any particular strategy behind it you  have a someone who works exactly for this no so i   i do most of the posting and i do most  of the social media but i really hate   it i i don't because i feel that if you if  i mean obviously i don't know the game so   somebody that does know how to make their  social media accounts work for them obviously   they're winning and i think that if there are new  businesses that want to that want to get promotion   that's the probably the best and easiest way to do  it but i really believe way more in in old school   techniques with location with visibility with with  welcoming atmospheres with with paper trails with   the actual haircuts that walk out the  door that promote the business to other   people yeah and you said you buy ads from  facebook from instagram so you just do like   push this sponsor like the promote button yes yeah  the promo button yeah so you you you make a post   and then you you wait or you do the promotion  straight away i do a post and then i wait to   see if it gets enough traction that i feel that  people like the post and if it does well and then   i promote the post and also from promoting the  post i a lot of people promote the post and it   doesn't work for them and one reason is because  their their their um audience is too wide so   what i found was if i if i really think about the  exact audience that i want it's way more effective   you know that you can use your uh email  list for uh advertising right so you can   upload this list and then you can advertise uh on  these people and also you can do like a look-alike   audience which these 15 000 people that you  already have you do look alike and facebook   will find will find for you like this the same  kind of audience yeah i don't know any of that   i can be honest you need to teach me okay that's  we'll do after the show um you're like always very   kind of stylish you know like i read some  interviews and watch some videos and you always   like in this good outfit so what what what does it  mean to you like being like always dressed up so   what's the thing behind so for me especially when  it comes to my career and my work i feel that if   you if you are presentable and you have a sense of  pride in how you look then it shows that you are   serious about your work you know it shows that  you are pride you have pride in in what you do   and you're not and you're not in it just for just  for whatever um you know just for financial order   i mean that's totally okay but for me i take it  deeper than that you know because i'm i'm totally   in love with what i do like i love tattooing and  i love being in a barber shop and i love that   experience and i want to share it with people  yeah and i also and i also appreciate a lot of   a lot of craftsmen you know so when it comes  to clothing and stuff like i appreciate when   there is effort put into a piece of clothing  or a style or if there's a tailor that i that   i like the way he does stuff like you know and  i and i believe in his work and his details   his attention to detail because i want people to  also do the same for me so if i if i can support   small businesses with with fashion or even big  businesses it just shows that that i believe in   the product and i don't mind to spend for that  because it's the same for me you know somebody   that comes for me to me for a tattoo it's not  it's not cheap so yeah i would i would rather   be able to to support the people so that i believe  that i can be supported also how you compare like   tattoo artists versus the bar like the barber in  terms of their social media presence so if you   have the famous tattoo artist it's probably very  good for your business right so people kind of   get exactly for for this guy yeah that really  depends yeah if if tattoo artist is that famous   he doesn't need me yeah so in the business sense  it does not necessarily mean that the business   does well if he's there in fact he probably  demands more commission and we're we're really   benefiting from him saying that he's working  in the shop which doesn't mean that we could   get more bookings it just means that people know  where he is so so on the contrary it actually it   actually works better for businesses to have more  low profile any recommendations how how to find a   really like nice location for your  barbershop yeah so for for hounds   specifically we are a very classic and a very  old school traditional barber shop so obviously   we need a space that is in more of a heritage  area so a shop house would be the best for us if   you're looking at masses you're probably looking  at a shopping mall or something like that which   which will have a lot of benefits when it comes to  walk-in traffic and visibility yeah but also you   have to play by the rules of the shopping mall  so you have certain opening and closing times   you know you cannot control your air conditioning  or whatever like that let's talk a bit more about   numbers so if i want to open like same type of  barbershop how much money do i need to put on it   so when we opened the first barber shop i  opened it on fifteen thousand dollars okay   and so that was me going in there and renovating  it myself painting the walls myself with my dad   buying the cheapest furniture that i could that  fit the style we did it pretty good but it was   very very diy so something like this where we have  proper furniture we have proper chairs we have   proper sinks and basins and stuff like that  we're probably looking at 50 000 to 60 000   on renovation cost just renovation just  renovation costs okay including furniture   including furniture cool so we are around this  very nice area in singapore what would be the   range of price for this size like similar size  place for rental for rental around this area   you're probably looking at for the same amount of  space this is a 1 100 square feet and around this   size for this area you're probably looking at 8  000 per month for for rental at this point of time   so this is 2021 post covered yeah so depending  on how much businesses come back and how much the   economy picks up yeah it will probably get  higher up which was the case before coping   okay so the final profit margin what percent would  be out of the revenue terence is really the better   guy to ask about this but i'll try my best to  to see if i can answer but if we're looking at   around 40k so that works out to be 20 25 000 or  30 000. yeah i don't know what that makes up to be   and now you're taking out 8 000 for  rent you're taking out about 2 000 for   um marketing costs okay stuff like that we also  have revenue from the cafe which is separate   yeah but yeah we're looking at a profit  margin of around 10k a month 10 cameras yeah   ideally ideally on an average month yeah so  meaning you you have like eight shares here   like four chairs running with four chairs yeah but  if you add like four more chairs all the chairs   busy so it's much more exactly okay exactly so  the way that we run the profit and loss sheets   was based on the worst case scenario yeah of six  clients a day at four chairs running six clients   a day four chairs each chair each chair yes okay  so that's why we've prepared for that is that   with the space we've decided to have eight eight  chairs so that if things do get better yeah then   we have the means to hire more barbers and  make sure that the waiting time is as little   as possible for walk-ins and make sure that the  appointments are running super smoothly yeah   so running at eight chairs and if we're doing an  average of six so obviously that number doubles   yeah so that's that's the hope so you said you  spent like 2k for marketing on a monthly basis   what would be your spending for so spending for  marketing would mostly be on the app so we have   our own hounds sg app which is a booking app run  by mindbody and what this app does is that it has   this function called shadow marketing which means  that if somebody signs up to the app or somebody   registers his account and he is inactive for  two weeks they send automatic notifications and   they they you know they contact him and  they push promotions out to him and that's   that's a really really effective way to get  people to keep engaging in the app like don't   forget about your haircut yeah something  like that or we run promos on it we can   easily do discount codes and and and we  have a database another another cost of   marketing is through the website which  also has the um email subscription list and   and mailing lists another part of the course comes  from facebook and instagram ads sponsored ads   which is also really effective if you want  people to see it but unfortunately it's the   same thing your your followers don't see  it there's only new people that see it   and so another cost of marketing also comes  with business cards and actual paper brochures   and postcards that we give out and so i print  really high quality cards and i and i believe   in old school techniques with with postcards  and flyers and stuff like that i think that that   works out way better than anything social for  me so if we give an advice to someone who wants   you know to open a barbershop would you advise to  start with yourself not start from business idea   absolutely i believe in i believe that's that's  that's i've been thinking about this a lot and i   think that the only reason that that people have  supported the stuff that i do or the reason that   some of the stuff that i do has been successful  is because i put a lot of myself into it and i   have a lot of i have a lot of experience where  i meet people who run a business and it is not   personal it's not on a personal level for them so  it becomes very difficult for them to understand   what they need to do to make things work and  so yes i believe that when somebody wants to do   a business or something it has to have a big piece  of them inside that business yeah and if you are   true to yourself i think that it will it will  definitely work because if you are a nice person   then you know that will translate to your business  are there any recommendations how people can like   find this this interests of themselves  i mean it is so cliche for me to say but   literally just be yourself you know just  do it just do what you love and just do it   till the end just don't stop because this is  i mean there's always going to be um obstacles   and hurdles and stuff that will bring it  down bring you down or whatever but that's   that's as cliche as it sounds that's that's  really what you have to do i think i mean i'm not   the most um you know ideal image of a successful  businessman but i do what i love and even if i   don't make a million bucks i'm happy with  what i built you know like i walk into my   shop and i'm really happy because i'm just like  every single thing that i love is in there yeah   from the paintings on the walls to  the motorcycle hanging on that shelf   the sofas i mean every single thing  that that is in there makes me happy so   that's the that's that reminds me every day that  that's why i do it no that's that's right i think   that that that's what people want they think they  want million dollars but actually they they want   to laugh yes they want to be in this environment  that that you had that you have and yeah all right if you like this video  please tell me in the comment below   what kind of other businesses you want  me to present on this channel and of   course smash the like button it helps youtube  algorithm a lot and see you in the next video

2021-07-10 23:37

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