Pairing Barbershops and Tech | How I Built This with Guy Raz | NPR

Transcript

hello and welcome to how i built this resilience edition this is where we talk with entrepreneurs about the creative ways they're coping with the economic slowdown uh in the window next to me is song lauren co-founder of the app squire hello song hey how's it going hello um squire if you don't know is a booking and payment platform it connects peop... Read More

Summary

In this interview, the co-founder of Squire, Song Lauren, discusses how the app is helping barbershops manage their businesses and connect with customers. Despite the economic slowdown caused by COVID-19, Lauren remains optimistic and emphasizes the resilience of New Yorkers. He explains the business model of Squire, which generates revenue through payment processing and subscription fees. Lauren also discusses the different business models in the barber shop industry and how Squire offers customized solutions for both independent contractors and commission-based barbers. He shares the story of how he and his co-founder came up with the idea for Squire and the challenges they faced in raising capital. Lauren also touches upon the impact of COVID-19 on bookings, the precautions being taken by barbershops during the pandemic, and the potential for growth in the black entrepreneurship landscape. He concludes by expressing his commitment to focus on the barber shop market and expand Squire's offerings to meet the specific needs of this industry.

Questions & Answers

Q: Can you provide more details about Squire and its role in the barber shop industry?

Squire is a business management and point-of-sale software designed for barber shops. It offers a comprehensive solution for barber shops, including booking, payment processing, and inventory management. On the consumer side, clients can use the app or website to find a barber shop, book appointments, and make payments. It can be likened to Zocdoc for barber shops, providing a streamlined and modernized experience.

Q: How does Squire make money?

Squire generates revenue through payment processing and a subscription model. Barber shops using the platform pay a monthly subscription fee ranging from $100 to $250. Additionally, customers who book and pay through Squire are charged a booking fee of approximately one dollar, which goes to Squire. These revenue streams allow Squire to sustain its operations and continue providing value to both barbershops and customers.

Q: What are the different business models in the barber shop industry?

There are two main business models in the barber shop industry. The first is the booth rental model, where barbers are independent contractors, managing their own schedules and paying rent to the shop owner. The second model is the commission model, where barbers are treated more like employees, having set hours and splitting the transaction percentage with the shop. Both models have their pros and cons, and Squire caters to the specific needs of each model with its customized software solutions.

Q: How did the founders of Squire come up with their idea?

The idea for Squire came from the founders' own experience in barber shops. They noticed that the industry had not changed much over the years and identified pain points such as outdated booking systems and long wait times. Drawing from their own experiences of going to barber shops and wanting to improve the customer experience, they decided to create a modernized platform specifically tailored for the barber shop industry.

Q: How did Squire navigate fundraising and raising capital for the company?

Fundraising was challenging for Squire, especially in the early stages as first-time entrepreneurs without a significant network or track record in the tech industry. They were fortunate to have a network of professionals in New York City who believed in their vision and provided angel and seed funding. However, fundraising remained a constant struggle, and they always had to be proactive in securing investment to keep the business afloat. Nevertheless, Squire has successfully raised substantial funding and recently closed a round of over $30 million.

Q: How has COVID-19 impacted Squire and the barber shop industry?

When COVID-19 hit and the shutdowns started, Squire experienced a significant dip in bookings, resulting in zero revenue for a period of time. To support their customers, they decided to waive all subscription charges until October and help barbershops navigate the economic crisis. However, as barbershops have started reopening, Squire has seen a rebound in bookings, and some shops are even exceeding their pre-COVID numbers. There is a pent-up demand for haircuts, and people are eager to return to the normalcy of the barber shop experience.

Q: Have the past few months made Squire rethink its business model?

The past few months have reinforced the need for resilience and adaptability in business. While Squire always believed it would fare well in an economic downturn, the COVID-19 pandemic was a black swan event that highlighted the unpredictable nature of the future. However, Squire has discovered that its business model is even more resilient than initially thought. By adapting to the new reality and catering to the changing needs of customers, Squire has seen an increase in inbound interest and new customer sign-ups.

Q: In light of recent attention to racial injustice, what advice would you give to aspiring black entrepreneurs?

While the entrepreneurial landscape for black founders has traditionally been challenging, recent shifts in societal consciousness have created more opportunities. Song Lauren encourages aspiring black entrepreneurs to pursue their dreams but emphasizes the importance of measured risks and personal financial preparedness. He believes that entrepreneurship, particularly in the tech industry, offers unparalleled opportunities for wealth creation. However, he recognizes the risks involved and encourages individuals to build a strong network, focus on their customers, and be prepared for the challenges and uncertainties that come with entrepreneurship.

Q: How has Squire maintained professional relationships during these challenging times?

Squire has prioritized maintaining strong professional relationships with its team and co-founder. As the company was already somewhat distributed before the pandemic, they were accustomed to collaborating remotely. They have incorporated social activities such as virtual happy hours to foster a sense of camaraderie and provide space for non-business-related conversations. While virtual interactions cannot fully replace in-person interactions, Squire strives to create an environment that supports and engages its employees.

Q: How has the pandemic affected the barbershop industry, and what precautions are barbershops taking for safety?

The pandemic has significantly impacted the barbershop industry, with bookings initially plummeting when the shutdowns started. However, as shops reopen, there has been a surge in demand, with bookings quickly ramping up. Barbershops are taking precautions such as wearing masks, disinfecting tools and seats between customers, and implementing social distancing measures. Many shops are not offering services that require customers to remove their masks. Overall, barbering is a well-regulated industry where barbers receive training in disinfecting and safety measures, making them well-prepared to operate in the current environment.

Q: How do barbershops maintain customer safety during the pandemic?

Barbershops prioritize customer safety by implementing various measures. Barbers and customers wear masks, and waiting inside the shop is no longer allowed. Customers may need to wait outside or in their cars until their appointment time. Shops also practice social distancing by spacing out chairs and limiting the number of customers served at a given time. While there are inherent risks in any environment, barbershops are taking precautions to ensure a safe experience for both customers and staff.

Takeaways

The interview with Song Lauren, co-founder of Squire, provides insights into the challenges and resilience of the barber shop industry during the COVID-19 pandemic. Squire focuses on business management and payment processing for barber shops, offering customized solutions tailored to the unique needs of the industry. Despite the economic slowdown, Lauren remains optimistic about the rebound in bookings as the industry gradually reopens. He stresses the importance of focus and adaptability in business and shares his experiences raising capital as a black founder. Lauren encourages aspiring black entrepreneurs to pursue their dreams while being prepared for the risks and uncertainties inherent in entrepreneurship. Overall, Squire's story showcases the potential for success in niche markets and the resilience of entrepreneurs in navigating challenging times.