Are barbershops still a viable business?

BARBERSHOPS are common in suburbs across Zimbabwe.

But, with the country’s growing population and ever-changing style needs, demand for haircut services is not likely to wane anytime soon.

The attractiveness of the barbershop business is its low startup costs and steady customer base.

The attractiveness of the barbershop business is its low startup costs and steady customer base

Business registration and legal requirements

Company registration — It is important to register the business with the Department of Deeds, Companies and Intellectual Property. The estimated cost of this process is between US$50 to US$100 for registration, depending on whether it is a sole proprietorship, partnership or company.

Harare City Council licensing —  One must have a local business operating licence from the municipality.

This should cost you between US$100 to US$200 annually, varying by location.

Tax registration — There is need for registering with the Zimbabwe Revenue Authority (Zimra) for tax purposes, including income tax, value-added tax (VAT) and presumptive tax for small businesses.

Shop location and rent

It is important to choose a strategic location in high-traffic areas like the city centre or residential shopping complexes.

In terms of rental costs, monthly rent should range between US$200 to US$500, depending on the location (urban vs rural areas, city centre vs suburbs).

Shop setup and equipment

Interior setup — This consists of basic shop decor and layout, including mirrors, chairs and reception space. Equipment will include tools such as clippers, scissors, razors and sterilisers.

The cost of these tools and equipment can range between US$500 and US$1 500, depending on the quality and quantity of equipment. Furnishings, namely the reception desk, waiting area chairs and TV or entertainment system can set you back between US$300 and US$600. To create a shop sign and basic branding for visibility, you need to budget between US$50 and US$150.

Staffing and training

With regards to hiring barbers, average barber salaries in Zimbabwe range from US$100 to US$300 per month.

It is important to consider training programmes or apprenticeships to enhance their skills, and this may set you back around US$100 to US$200 for a two- to three-month course.

Operational costs

Utilities, including, electricity, water and internet costs, are estimated at between US$50 and US$100 per month.

Having your stock of consumables, such as hair products, aftershave, sanitisers and cleaning materials, should set you back between US$50 and US$150 per month.