Transforming Barbershops: The Squire Story of Innovation and Efficiency
Company profile
Company business details
Motivation to build the product
The founders were motivated by the inefficiencies they observed in the barbershop industry, such as long wait times and cash-based transactions. They aimed to create a solution that would streamline operations and enhance the customer experience.Problem that their product solves
Squire addresses the challenges faced by barbershop owners, such as managing appointments, payments, and client communications. The end users are barbershop owners and individual barbers, and solving these problems is important for improving operational efficiency and customer satisfaction in the barbershop experience.Their unfair advantage
Squire's unfair advantage lies in its vertical integration as a SaaS platform specifically tailored for the barbershop industry, providing unique features that address the specific needs of barbershops.Strategies
Pre-Launch (Product Development & MVP)
Vertical SaaS Development
Squire focused on creating a vertically integrated SaaS platform specifically for barbershops, addressing unique pain points such as appointment booking, payment processing, and inventory management. The CEO, Songe LaRon, emphasized the importance of automating communications and streamlining operations to enhance the customer experience. This approach allowed Squire to differentiate itself from generic solutions, ensuring that barbershops could manage their businesses more effectively and improve client interactions.
Market Research through Direct Engagement
Before officially launching Squire, Songe LaRon and his co-founder Dave Salvant engaged directly with barbers, shop owners, and customers to identify key pain points in the barbershop experience. They frequented barbershops in New York City, sometimes even getting haircuts to converse with barbers about their challenges. This hands-on approach allowed them to gather valuable insights and understand the needs of their target market, which informed the development of their software solution.
Prototyping with a Mobile App Concept
Initially, LaRon and Salvant conceptualized a mobile app modeled after 'Uber for barbers.' They attempted to implement this idea by hauling a heavy barber chair to coworking spaces, bringing barbers directly to customers. This innovative approach aimed to demonstrate the potential of their service, although they faced challenges in getting barbershops to adopt the app, leading them to pivot towards a SaaS product.
Launch Stage
Waiving Subscription Fees
In response to the COVID-19 pandemic, Squire decided to waive all subscription fees for barbershops using their software. This initiative was aimed at alleviating the financial burden on barbershop owners who were forced to shut down and had no means of generating income. By removing the subscription cost, Squire enabled barbers to continue using their services without additional overhead, thus supporting the barber community during a challenging time.
Free Marketing Features
Squire made its marketing feature, called Engage, free for all users during the pandemic. This feature allows barbershops to send emails, text messages, and push notifications to their clients. By providing this tool at no cost, Squire empowered barbers to communicate with their customers effectively, keeping them informed and engaged during the shutdowns.
Online Gift Cards Feature
To help barbershops generate income while closed, Squire launched an online gift card feature. This allowed barbershops to sell gift cards to their customers, providing immediate cash flow even when services could not be rendered. The feature proved to be successful, with many shops selling tens of thousands of dollars in gift cards, which helped them support their families during the shutdown.
Free Trial for New Barbers
To attract new barbers entering the industry, Squire offered its services for free for the first six months. This strategy was aimed at young barbers, particularly those from Gen Z, who are just starting their careers. By removing the financial barrier during the initial setup phase, Squire positioned itself as a supportive partner in their journey, thereby increasing its user base and establishing long-term relationships with new business owners.
Y Combinator Acceptance and Networking
After pivoting to a SaaS model, Squire was accepted into Y Combinator's summer 2016 batch. This opportunity allowed LaRon and Salvant to travel between New York City and the Bay Area, where they could network with other startups and gain mentorship. The experience at Y Combinator was pivotal in refining their business model and gaining exposure to potential investors and partners.
Growth Stage
Digital Waiting Room Feature
As barbershops began to reopen, Squire introduced a digital waiting room feature. This allowed customers to wait in their cars or outside the shop instead of in a physical waiting area, in compliance with state guidelines. Barbers could send push notifications or text messages to clients when it was their turn, enhancing the customer experience while ensuring safety.
COVID Waiver Form
Squire developed a COVID waiver form that required clients to certify they did not have COVID-19 symptoms or had not traveled to high-risk areas. This feature provided peace of mind for barbers and barbershop owners, ensuring that clients were aware of safety protocols before receiving services.
One Touch Payout Feature
Squire created a One Touch Payout feature that simplifies the payment process for barbershop owners. This feature automates the payment of barbers, accounting for tips and commissions, allowing owners to focus on running their business without the stress of managing payroll manually.
Squire Supply Launch
Squire launched a new business line called Squire Supply, enabling barbershop owners to purchase necessary supplies directly through the Squire platform. This included items like razor blades, PPE, and other retail products. By streamlining the supply purchasing process, Squire aimed to make it easier for barbershops to operate efficiently and safely.
Customer Experience Enhancement
Squire implemented features like mobile payments and pre-booking to improve the customer experience at barbershops. By making it easier for clients to tip and book appointments through their phones, Squire aimed to create a seamless experience that would encourage repeat visits. LaRon noted that once customers adapt to these conveniences, they find it difficult to revert to traditional methods, thus fostering loyalty and increasing the frequency of visits.
Data-Driven Growth Strategy
During the growth phase, LaRon emphasized the importance of tracking specific metrics to measure Squire's success. He adopted a practice of weekly tracking of key performance indicators, which he learned at Y Combinator. This focus on data allowed the team to identify what actions were driving growth and to make informed decisions about the company's direction.
Maturity & Scaling
Transaction-Based Revenue Model
Squire established a revenue model based on transaction fees tied to payment processing and monthly subscriptions from barbershops. This model not only provided a steady income stream but also aligned Squire's success with the success of its clients. By offering additional services like automatic rent collection for booth rental models and lending products based on transaction volumes, Squire aimed to deepen its integration into the barbershop operations, ensuring that it remained indispensable to its users.
Building a Strong Company Culture
As Squire scaled from two to over 100 employees, LaRon prioritized building a strong company culture. He recognized that the first 10 to 20 employees would set the tone for the organization. LaRon fostered an environment of openness, encouraging team members to share feedback and grievances. He also emphasized the importance of hiring individuals who were fully aligned with the company's mission to ensure long-term commitment and stability.
Learn more about Squire
Interview with Squire - The App That is Positively Disrupting the Barber Industry
CEO Interview: Squire Creates New Operating System for Neighborhood Barbershops
