Barbershop Startup Costs: What You Need to Open Your Own Shop
February 20, 2025 | Last Updated on: February 24, 2025
By Stephanie Colestock
The barbershop industry in the United States is more significant than ever and is expected to keep growing in the future. In fact, there are currently more than 143,000 barbershops in this country, making it a worthwhile new business to consider if you’re interested in profitability and potential growth. Opening a barbershop can take anywhere from $50,000 to $150,000 or more.
Depending on your local market, the type of shop you want to open, and what sort of clientele you’re hoping to attract, your barbershop startup costs can vary considerably. Here’s a look at the average startup costs for a barber shop, some of the most common expenses you’ll encounter, and how to get the necessary small business funding.
Business Planning and Legal Structure
Adequate planning is one of the most critical first steps if you’re thinking about opening your own barbershop. This means everything from structuring your company for tax advantages and legal protection, to putting together a barbershop business plan to account for costs and market strategy.
Business plan
Entrepreneurs can certainly put together their DIY business plan, which might include a rundown of expected upfront barbershop startup costs and recurring expenses, marketing strategy, and target market research. Business plans will also outline a clear vision for your business, including everything from the customer experience to your shop’s aesthetic, services offered, your pricing strategy, and growth projections.
This plan is not only an excellent guide for what to expect in the first few years of your business but also helps you plan ahead for any pitfalls. (Having a business plan will also be necessary if you plan to take out a business loan, especially an SBA loan.)
If you’re not comfortable doing this on your own, you can hire a professional consultant to do the work for you.
Legal structure and permits
Making your business legal will help protect you and your financial interests, and make it easier to get certain permits, licenses, and even small business loans.
Your barbershop business can be formed as a sole proprietorship, LLC, or corporation, to name a few. Setting your business up legally can cost anywhere from a few hundred dollars in do-it-yourself LLC filing fees to a few thousand dollars in legal partnership formation. Since sole proprietorship is unincorporated, there isn’t always any sort of filing required, so there may not be a cost involved.
Another barbershop startup cost to note will be your licensing requirements. Different states, counties, and even towns have their own requirements, so be sure to do your research to see what your new business will need to be in compliance. You might need to obtain a business license, barber license, health and safety certification, liability insurance, and more for your new barbershop. Some of these costs will be one-time while others will require renewal on a regular basis.
You might also need to meet certain zoning requirements when opening a new barbershop business and could require permits from the county if doing renovations on an existing building.
Location and Rent
One of your biggest ongoing monthly expenses as a barbershop owner will be the roof over your head. Whether you buy, build, rent, or lease, real estate will be a significant portion of your barbershop startup costs.
Your monthly average costs will be impacted by not only the neighborhood you choose but also your barbershop size, lease term, and whether someone else builds out your shop. Be sure to also budget for things like utilities and insurance. If renting, don’t forget your security deposit and other lease fees that might add to your upfront expenses.
Picking the right location can be paramount to your success. For example, if you want to attract high-end customers, you will need to choose a neighborhood where that type of customer frequents or at least feels comfortable visiting. A high-quality shop location can be pricey, especially if you want to avoid nearby competition, increase foot traffic, lock in parking spaces and accessibility, and more.
Equipment and Furniture
A haircut really only requires a few basics: something to cut with and somewhere to sit. If you want to be a professional barber and provide haircuts to paying customers, though, you’re going to need a lot more. Accounting for these barbershop startup costs will ensure you have enough cash to buy everything your specific shop needs for success.
Some common barbershop equipment essentials include:
- Barber tools: scissors, clippers, shears, trimmers, capes, razors, combs, brushes, sterilization items
- Furniture: barber chair, drying and hair wash stations, front reception desk, waiting area seating, shelving, decor
- Stylist tools: blow dryers, grooming products, etc.
- Marketing items: signage, barber poles, and more
- Retail hair care products: shampoo, conditioner, styling gels, hairspray, etc.
You will also need some technology to take cash or credit card payments, such as a point of sale (POS) station, cash register, or even a mobile app. If you want to make it easier on your new and returning clients, an appointment scheduling platform can help you track your schedule and even send out reminders and of course, you’ll need a phone line so people can contact you and your hair salon.
Some of these items, you’ll only need to purchase once (or at least, only once every few years), such as your chairs and washing stations. Other items, like inventory and shears, will need to be replenished frequently. Be sure to factor in both these upfront and ongoing expenses when calculating your barbershop startup costs.
Staff and Payroll
Will you be the only barber in your shop, or will your business structure allow other stylists and barbers to work there?
If you plan to have more than one barber in your shop, you’ll need to determine how they will be paid. In most barbershops, there are two options: You can hire them as employees with a set pay structure (hourly, salary, or commission-based), or you can let them be independent contractors (often renting space from you).
The right structure for you depends on what’s common in your area, the type of barbershop you plan to open, and whether you want to deal with the complexities of payroll, employee benefits, insurance, and even added tax obligations. If you hire employees, be sure to check with your state to see what you’re required to carry regarding worker’s compensation coverage, healthcare, and unemployment insurance protection. All of these can significantly add to your barbershop startup costs.
Beyond any other barbers in the shop, you will also need to factor in the hiring cost of support staff. These employees or contractors can include a receptionist, hair washers, a cleaning crew, a social media marketer, and more.
Marketing and Branding
Marketing your barbershop and creating an enticing brand can help attract new customers and retain existing ones.
You’ll first need to create your brand, which involves picking your shop name, choosing a logo design, and even generating your brand identity. If you’re creative, you might be able to do this yourself; otherwise, add the cost of professional branding services into your estimated barbershop startup costs. Once your brand is locked in, you can begin creating signage and print materials for your business.
Next, you have immediate and ongoing marketing experience. How much you spend here is really up to you, but the right budget directed toward the right efforts can have a substantial impact on your barbershop’s success.
Market costs include things like
- building and maintaining a website
- building up your site’s SEO
- social media advertising
- online listings and ads (on platforms like Yelp, Google, etc.)
- local ads (newspapers, mailers, billboards, etc.)
Utilities and Operating Costs
To operate your barbershop, you’ll need to cover utilities for the shop as well as certain ongoing expenses. Accounting for (and setting aside) at least the first few months of these expenses in your barbershop startup costs analysis can help give you a buffer until your business is up and running.
Monthly expenses and utilities include things like electricity, water, gas, sewer, trash, internet, software subscriptions, and phone services. The larger your shop, the more you may pay for certain utilities. You can also count credit card processing fees in this category, if you want, though the actual amount you’re charged will vary according to the payments you process.
Additional operating costs include cleaning services and maintenance of the building. You’ll also want to set aside money for taxes each year. To protect yourself, your employees, and your business investment, be sure to account for annual insurance premiums in your budget. You may need to purchase multiple policies including general liability coverage, property insurance, and more.
Final Thoughts
Whether you’re fresh out of barber school or have been dreaming of having your own place for a while, opening a new barbershop is an exciting business venture. You can open a niche shop on a busy street downtown or create a family-friendly environment in the suburbs, the opportunities are endless!
Before you can open your doors, though, it’s essential to plan out your business model ahead of time. That way, you can budget for both essential and optional expenses and fully understand your unique barbershop startup costs before you ever start shopping for a business loan or retail space. If you need help planning for financial stability or structuring your business, you can seek professional guidance from a business consultant, lawyer, accountant, marketer, and more.
FAQs on Barbershop Startup Costs
How much does it cost to open a barbershop?
The average barbershop costs between $50,000 and $150,000 to open. Your personal barbershop startup costs will vary, however, based on where you’re located, the size of the shop you open, and even the aesthetic you’re after when you design and remodel the space.
Do I need an LLC as a barber?
Creating an LLC can offer barbers certain protections against liability, especially if they plan to open a shop and even work with or hire other barbers. An LLC can be formed DIY, or you can work with a lawyer to draw up your paperwork and submit it to the state.
Can I take out a loan to open a barbershop?
Yes, you can take out a business loan to open a barbershop, purchase an existing barbershop from someone else, or even renovate a shop you already own. Your loan can cover barbershop startup costs including things like equipment, furniture, operating expenses, decor, marketing, and more. You can also take out equipment loans and business real estate loans to purchase your property, buy certain equipment, etc.
Do I need a license to open a barbershop?
While you don’t typically need a license to own a barbershop, opening your own shop requires a barber license if you plan to personally cut hair. All 50 states require barber licenses for anyone who will be cutting other people’s hair in a formal business setting or for pay, and most states offer reciprocity if you ever move.
Can I start a barbershop outside of my home?
Many states do allow you to open a small business space within your home, where you can offer barber cuts and other hair-cutting and styling services. The exact requirements will vary by location, but you’ll usually be expected to have a designated space for the business along with any other regulatory requirements regarding sanitization, health certifications, licensure, and more.
