We’re excited to introduce you to the always interesting and insightful Miguel Cruz . We hope you’ll enjoy our conversation with Miguel below.

Miguel , thanks for taking the time to share your stories with us today Has Covid resulted in any major changes to your business model?

COVID definitely brought upon unexpected changes at Grayscale Barbershop. When the pandemic hit, we had to adapt quickly, both to keep our clients safe and to keep the business afloat. I had to make some tough decisions, like limiting the number of clients allowed in the shop at the same time, adjusting hours, and incorporating strict sanitation measures. It was a challenge, especially since the shop has always been about community and connection, and suddenly, we had to focus more on distance and safety. it was a life altering event that forever changed the world and how we do business. A few other things happened that made me realize i had to make a change in order to adapt and survive.

The biggest one was having to change the shops business structure. For context, there are many business models for barbershops out there but the most prevalent ones are the booth rental model and commission model. To be clear, when i set out to open a barbershop i always knew i wanted to run the commission model, from a business stand point it just makes the most sense. However, i was only familiar with the booth rental model and the commission model was a foreign and intimidating concept to me, so naturally i opted for the easier route and went rental.

This became a problem when we were suddenly forced to close our doors for nearly three months on short notice, reason being that even though there was government assistance available such as the payment protection program, it was mainly tailored in favor of companies with employees, With booth rental I did not fit into this criteria. Although i did finally receive an offer after a few rounds, I opted out & declined due to some of the stipulations in the fine print. I felt very helpless that i couldn’t do more for the barbers at the time. This was the catalyst for change that i needed so i set out to slowly transition from rental to commision.

This came with many obstacles and challenges as i tried to educate myself on how to implement this model. I read several books, listened to podcasts and tried to find as much information out there as i possibly could on the matter from payroll, taxes, labor laws, marketing to systems and leadership.
I eventually gathered enough information to move forward with the transition, but I have to admit it was far from easy. Shifting from rental to commission meant reworking everything: compensation structures, contracts, and even the culture of the shop. There were plenty of long nights, difficult conversations, and moments of uncertainty. But deep down, I knew it was the right move for the long-term success of the business.

One of the biggest challenges was getting the barbers to understand why this change was necessary and how it would ultimately benefit them. It wasn’t just about shifting the business model; it was about creating a more stable and growth-oriented environment for everyone. I wanted to build a place where the barbers felt more invested in the shop’s success, not just renting space, but contributing to something bigger.

Looking back, I’m proud of the decision. It gave us a more solid foundation, especially in those unpredictable times, and helped us create a team driven culture that we continue to build on today.

Since making the switch, I’ve seen a stronger sense of teamwork and commitment among the barbers, which has translated to an even better experience for our clients. It’s not just a business model change, it’s been a culture shift that’s made Grayscale a more unified and resilient shop. I like to think about it as a blessing in disguise.

Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.

My name is Miguel Cruz, I am 33 year old Houston native. I am small business owner and barber by trade, I opened my dream barbershop “Grayscale” in 2018 with the mission of bringing a new experience to my community. I got my start in this industry at an early age when I began giving my younger siblings haircuts. My mom would be the one to cut our hair at home growing up, and at the age of 12 I took it from there. Probably because I was tired of the 90’s bowl cuts and at this age most boys start to take interest in girls and personal appearance matters more all of sudden. I went from only cutting my siblings, to friends then eventually complete strangers. This was a hobby that I was passionate about which eventually flourished into a successful career. I pursued barbering full time after I dropped out of community college in 2013 and never looked back. My only regret is that I didn’t start sooner but everything is always 20/20 vision in hindsight and now i preach this to all the young kids I cut who often struggle to find their purpose. In fact I think that is one of the coolest aspects of my work, not only do I get to bring confidence to those I cut and make them feel good about themselves but I also get to build lasting relationships with my clients which eventually become friends. Some of the best people I know I met through cutting their hair. This is something common you will experience with all of our barbers at Grayscale barbershop, where we don’t just take a transactional approach to the customer experience and rush you out the chair but take the time to know you as a person. I feel like this is a big driver of our success and something that I am proud of.

Can you talk to us about how you funded your business?

this a question that I get asked often, and the way I opened my shop was through saving and living way below my means. When I first started working as a full time barber in a shop, I went from a steady paycheck to having to pay weekly rent for the chair in the shop. This was a new and intimidating concept to me but it taught me the discipline to not only to save but also to market myself in order to grow my clientele and income. My first goal was to eliminate all the bad debt that I had including my car at the time. Prior to this I could never keep more than a couple hundred dollars in my account and was constantly over drafting. I stopped going out with friends as much and really focused on my goal and eventually accomplished it.within a few months of cutting. After I finally eliminated all my bad debt my next goal was to begin saving. After the first one thousand, the next thousand came easier and eventually hit my goal of 10k. once I hit this mile stone, saving became a lot easier and I was able to live off that 10k for 6 months while I was saving almost 100% of my income for those 6 months. shortly after I was able to buy my dream vintage chairs for 30k. even though I wasn’t able to secure a lease for another two years, this was a major purchase and commitment at the time that kept me motivated to follow through. I basically repeated the same process and saved for the buildout of the shop. When the time finally came, I was able to open my shop with little to no debt or investors.

How do you keep your team’s morale high?

the best advice that I can give on this matter is to lead by example, im a firm believer that you have to hold yourself accountable before you can hold someone else accountable. I also believe that a business is an extension and direct reflection of the owner and if im a poor leader there will be no surprise if my employees perform poorly as well. therefore I always try my best to practice what I preach. We try to have monthly meetings where we discuss wins, areas of improvement and an overall temp/vibe check, everyone gets an opportunity to express their concerns if any. Aside from that, it is also important to have proper systems, roles, and expectations in place, instead of managing individuals you manage a set of systems and expectations so nothing becomes personal at the end of the day and your team knows exactly what is expected of them. Last but not least, leading with empathy, at the end of the day, everyone is human and life happens, you never know what an individual is facing in their personal lives so always keep that in mind when dealing with your team. Take care of your team and your team will take care of business.

Contact Info:

• Website: grayscalebarbershop.com
• Instagram: @grayscalebarbershop @miguelfadedit
• Facebook: https://www.facebook.com/GrayscaleBarbershopHouston
• Twitter: @grayscalebarber
• Youtube: https://www.youtube.com/@grayscalebarbershophtx5781
• Yelp: https://www.yelp.com/biz/grayscale-barbershop-katy
• Other: https://www.tiktok.com/@grayscalebarbershop

Image Credits
Chris Ayala