Cost of living: owner of 17th Barber Club in Walton-le-Dale wants more to be done to help start-ups as he recounts his struggles

29-year-old Nick Davis started his first ever business, 17th Barber Club, in September 2022, and says he has been shocked at how much the cost of living crisis has affected him.

Having been a barber for years, when Nick’s old boss offered to sell him his business, Nick decided to “give it a go” however he soon found the economic climate harder to navigate than expected.

Nick said: “I bought the business off him, redecorated, and I was like fabulous, let's crack on, but then in November, it started coming on the news about the cost of living going up, electricity bills going up, and I was thinking, I picked the perfectly wrong time to open a business.

“I'd looked at the existing rates on the building in terms of electricity and water and they were higher than I thought, but it was manageable. It was only when I got my first bill and at first I thought it was a quarterly bill, but I read further and saw it was one month's worth, I honestly was gobsmacked, it was £400 for a month and my shop’s not exactly massive either, so that's what started it for me.

“When the news started reporting on the cost of living, we also saw a massive decline in clients coming into the shop, it was crazy, I've never known a month so quiet. That started making me think I'd made the wrong decision, because it was my second month having the shop and the volume of haircuts just dropped, it caught me by surprise.”

Since then, Nick says he has found his feet, maintaining a loyal clientele, but costs have remained high, with electricity bills now averaging £380 a month, and the cost of goods continuing to increase - he cites how his clippers have gone from £115 to £145 in a year- meaning he has found it impossible to make a profit.

For December and January just gone, Nick says they were “blessed” by how busy the shop was, however despite this increased footfall, the shop still made barely any profit, providing a stark reminder of how hard it is during the cost of living crisis.

Nick said: “You think you're doing great, and you're really happy with the volume of haircuts you’re going through but once all your expenses have come out - the rent, the booking system charges, and then the lecky bill on top of that - with how expensive everything is at the moment, it's just like, what's the point?”

Despite finding it a struggle, Nick says owning his own business has still been worth it, and he is concerned that the current climate will deter others from taking a leap of faith.

Nick has already seen how the cost of living crisis is affecting the industry’s profitability, as one of his employed barbers had to leave the profession as he was not making enough money.

Hoping to encourage others to still try, Nick said: “At the end of the day, how would you know you can't do something unless you try it. I know it's not easy, and the electric bills and cost of general living going up will make it daunting, but you've just got to give it a go.”

In particular, Nick has gotten by with the help of his step-father, a businessman, and he is concerned that other hopeful business owners do not have that support.

Nick added: “I've got quite fortunate having someone who can help and advise me, but other people that are trying to start their own business, they don't have those sort of resources at hand, so it's not fair.”

While he hopes the local council could provide some advice or funds to help start-ups, Nick overall thinks the government needs to step in. He added: “If I was to go to the council and ask for help, I genuinely wouldn't know what they could do, because it's the electrical companies really, they’ve been making profits that are bigger than they've ever made before, whilst all the consumers are struggling. It's down to the government realistically, no one else.”

What does the council say about Nick’s fears?

Councillor James Flannery, Cabinet Member for Planning, Business Support and Regeneration said, “As a result of national Government’s actions we are certainly in a period of high economic uncertainty, and businesses are facing challenges with the rising costs of utilities and products, teamed with decreased spending from consumers as a result of their own challenges brought upon by the cost of living crisis.

“It’s a grim picture, but as a council we recognise this, and are doing all we can to support existing businesses alongside encouraging new businesses to South Ribble. Despite national uncertainty, we want to be proactive and we’ve just approved a new Economic Strategy to give us a framework to guide the way ahead. The strategy sets out how we will work as a council with our partners to create the best possible conditions for business in South Ribble through access to support, advice, facilities and a skilled workforce.

“We’re in regular communication with our businesses to understand their concerns and in December last year we launched a scheme to specifically support business with their energy costs.

“Alongside this, we are also investing in our town centres such as through our Leyland Town Deal plans and our recent masterplan which has been developed for Penwortham to encourage people to shop and stay local and to entice new business to the borough.

“I would encourage any business who is seeking support, to get in touch with us to see how we can help.

“The team can be contacted on [email protected] and detail of our energy support scheme can be found at www.businessinsouthribble.com/srbcbee.”