What should I check before buying a barbershop?

A barbershop looks simple, but its income rests on a handful of relationships and a lot of cash. Before you commit, test each of those relationships and each record you are shown. Bring your accountant and lawyer into the work early, since several of the items below turn on documents only they can properly read.

Walk-in or booked trade

Walk-in trade follows location, hours and wait times. Booked trade follows individual barbers. Ask for a typical week split between the two, and how bookings are taken. A shop that depends on walk-ins needs a location that stays good. A shop with booked regulars needs its barbers to stay.

How barbers are paid, and how much the owner cuts

Find out whether each barber is paid by commission, hourly, or rents a chair, and what is agreed in writing. Ask how much of the shop’s cutting the owner does. If the owner is the busiest chair, you may need to replace that work yourself or hire for it.

Cash, records and the lease

Some shops take part of their payments in cash. Compare the till records, card sales and bank deposits, and ask how tips are handled. Read the lease for its remaining term, renewal rights and whether the landlord must consent to a change of tenant. Ask your lawyer to review it.

Equipment and reputation

• Chairs, clippers, sinks and mirrors: age, condition and who owns them.
• Any leased equipment or unpaid supplier balances.
• Online reviews that name individual barbers rather than the shop.
• Complaints, incidents and how the owner dealt with them.

For wider checks, see how to find undisclosed debts and personal guarantees.