How Much Does it Cost to Open a Barbershop?

The barber business always remains in demand. A professional barber can invest in the barber business to reap long-term benefits and achieve a successful business. Before starting a business, we need to create a plan, just like other businesses. If we understand the expenses of our business, then it can be easily managed in our budget. Plan your budget carefully so you won’t incur any extra costs.

In this article, I will share everything based on research and conduct different existing barber shop owners interviews but your shop location and state matter your expenses. I covered opening a barber shop like business licenses, insurance and permits, security deposits, and remodeling expenses.

How Much Does it Cost to Open a Barbershop?

Opening a barbershop has an average cost for a small one of 30,000$ to 50,000$, or a large 75,000$ to 200,000$ for an open franchise or large-sized shop. A lot of factors to invest the amount including rent, utilities, location, licensing, inventory costs, business insurance, and size of the business. When you open a barber shop, you need some investment in property cost, interior renovation and shop design, supplies, equipment, fixtures, and barbering tools.  

Business Structure

First, you need to register your business in your state. There are a few business structures: limited liability companies (LLCs), sole proprietorships, and partnerships. You can set up your business according to your state, and some yearly fees like LLC and partnership.   

A sole proprietorship business is very easy to set up, but it doesn’t provide the same protection as an LLC. Partnership model: 2 or more persons as stakeholders and sharing the ownership. If you want to get more information, you can go to a legal advisor, who provides complete information. 

Location

Location is the main factor in the barber business. If you choose a location near the highway need more expenses, but if you create good traffic new area, then more chances to get clients. If you try to find a commercial area need more budget. If you select near a residential area to get more foot traffic and grab more clients.

Barbershop Size and Lease Agreement

If you don’t have the money to buy a commercial area, you need to consider leasing. Many commercial areas have an average leased price of  $2 to 40$ per square foot. However, it depends on the city you are in and the neighborhood market rate. If you are starting a business with your friends or a partner, you need between 200 to 500 square feet for 2 to 3 seats. You plan 4 to 8 workstations and need a shop of 500 to 1500 square feet. If you need 10 or more workstations, then you require more than 1500 square feet. 

If you design only a simple and cozy barber shop that offers only haircuts or shaves, you can go for a smaller area. If you want to create a luxurious area with a large waiting area, and a refreshment area, and provide extra services like facials and nail care, you need more space. Then need $6000 to $20,000 for deposits as security or according to the local market. After that, your monthly rent could be between $1,500 and $4,500, depending on the size of the shop you choose.

A Breakdown of The Average Costs For Starting A Barber Shop Business

Now I will explain how to break down average costs. This helps future shop owners understand how much money they’ll need and if they should save more before opening.

• The lease (security) deposit can range from $6,000 to $20,000.
  
• Construction, renovations, and remodeling may cost between $8,000 and $30,000.
  
• Expect to spend approximately $3,000 to $10,000 on furniture.
  
• Barber licenses, business permits, registration, and insurance typically cost around $3,000 to $5,000.
  
• The cost of barber tools, supplies, and equipment is usually between $1,000 and $2,000.
  
• Setting up a website may require an investment of $1,500 to $5,000.
  
• Signage for your shop can cost anywhere from $1,000 to $5,000.
  
• Marketing expenses can be around $5,000.
  
• Installing a point-of-sale system will likely cost between $3,000 and $5,000.
  
• Professional services such as legal and accounting support may cost between $500 and $2,500.

These are some of the monthly expenses you will need to cover regularly:

• Monthly rent for the shop.
  
• Utility bills like electricity, water, and internet.
  
• Employee salaries (if you hire staff).
  
• Marketing costs (if you use any services).
  
• Daily-use supplies like hair products and cleaning items.
  
• Software fees for booking or managing your shop.

Factors that Influence the Cost of Starting A Barber Shop

Staffing, Licensing, and Permits

Most states allow opening a barber shop to get a license. Mostly, barber shops hire licensed barbers who are skilled in cutting hair, styling fades, and doing clean shaves. You should include in your business plan how you’ll hire people and teach them what to do. If you are mentioning licenses, you are aware of the rules needed to run a barber shop legally. If you get licensed in every state cost is between 50$ and 200$ per barber. If you get unlicensed, you may be an extra 100$ to 150$ for each person. 

Business licenses and permits depend on the state or city from range between 150$ to 750$. Also required are other permits for building licenses, zonal, and signage permits. Depending on the state, what types of permits are required? 

Most states ask about your insurance when you are directly dealing with the public. While insurance is not always required, it is considered a basic necessity. If you choose to get it, expect to pay an additional $1,500 to $3,500 per year.

Barber School and Licensure

Every state has its requirements to get a licensed barber. For example, if you are open in California, you need to have a state board-approved training program of at least 1000 hours before you can take your licensure exam. You can also add the cost of barber school to opening a barber shop. Most new barbers work at another barbershop first to build a client base before opening their own shop.

Labor Cost

If you open a small shop, you might be able to run it on yourself. But if you open a larger barbershop, you’ll need to hire staff. This also means extra expenses for training programs, salaries, and other employee-related costs.      

Remodeling, Furniture, and Equipment Costs

When final your shop, then convert it into a barbershop. First, you need to remodel your shop need to thousands of dollars. Small changes and light construction, like adding lights, sinks, and counters, usually cost between $8,000 and $30,000. 

You’ll also need furniture like sofas and chairs for the waiting area. Each barber chair starts at $500, but high-quality ones can cost up to $2,500. If you want to add entertainment like a TV or a music system, that can cost another $3,000 or more. You don’t need to buy expensive items right away. You can invest in luxury equipment later as your business grows. 

You’ll need to spend more on furniture such as couches and chairs. A single barber chair starts at about $500, but premium ones can go as high as $2,500. Adding extras like a TV and sound system for customer entertainment can raise your budget by another $3,000.

In the beginning, you can spend more on some things and save on others. You don’t have to buy a big TV, luxury chairs, or a fancy couch right away. Once your shop is running and money isn’t tight, you can upgrade later. Just think about the vibe you want your shop to have and choose furniture that fits that style, but always stick to your budget.

Marketing and Advertising

Marketing major part of the business. If your strategy of marketing strategy is good to help your business grow gradually. You grab more customers, but if you don’t know marketing. Then people don’t know your shop, and they won’t come. You need strong branding to promote your business to stand out from other local barbers and salons. 

Expect to spend around $1,000 to $5,000 on signs and banners for both inside and outside your barbershop. Planning a grand opening? Event signs might cost you another $1,000 to $3,000 based on how big or fancy they are.

You can choose the latest ideas to promote your shop, like creating a website, grabbing traffic, and building presence on social media. You can hire a digital marketing agency, it costs 1500$ to 5000$ at the start. After that, you may charge the SEO services and marketing 500$ to 2000$ monthly.

Barber Tools and Supplies

Launching a barbershop involves purchasing essential equipment and grooming products such as clippers, trimmers, shears, combs, guards, blow dryers, barber poles, styling products, shampoo, conditioner, antiseptic, and more.

At the start, you need basic equipment don’t need to buy extra. After some time, you buy extra equipment according to your needs. You’ll need clippers, trimmers, scissors, combs, guards, dryers, a barber pole, styling products like wax and pomade, sprays, shampoos, conditioners, antiseptics, and other essentials.

You’ll probably spend about $1,400 on the tools you need and between $500 and $2,000 on hair products. If you want to stock products for sale, that could add another $1,000 to $5,000 or more, depending on what your clients like.

Payroll Costs

If you hire a team, then you need to estimate your employees’ salaries and other costs. While some shops bring in hairdressers and color experts, others only hire two skilled barbers who specialize in men’s grooming. 

According to the U.S. Bureau of Labor Statistics, the average yearly income for barbers, hairstylists, or beauticians is just over $35,000. Some barbershops save money by using a mix of full-time and part-time workers. Others rent out chairs to barbers instead of hiring them, which helps cover costs. A medium-sized barbershop should expect to spend around $8,000 to $12,000 per month on staff salaries.

Professional Services

Cleaning and Maintenance

• Essential for hygiene and customer satisfaction.
  
• Costs range between $100–$200/month, depending on shop size and frequency.
  
• Helps with customer experience and better reviews.
  

Consultation Services

• Optional but valuable, especially in the first year.
  
• Includes business, financial, and marketing advice.
  
• Can cost $500–$1,000/hour.
  

Financial Management

• Covers accounting, bookkeeping, payroll, and tax filing.
  
• Can be done in-house or outsourced.
  
• Outsourced costs usually $100–$300/month.
  

Legal Services

• Important for licenses, permits, and legal compliance.
  
• Cost is around $150–$300/month.
  

Laundry Services

• Needed for items like towels, caps, etc.
  
• Some charge per pound ($1–$3/lb), others have monthly packages.
  
• Expect costs between $200–$500/month.

Franchise Costs

If you want to get a branch of any brand, there are many options available. Every franchise his requirements. You can research the upfront costs. If you want to open a barbershop through a franchise, you’ll need to think about franchise fees, how much money you need to start (capital), and other costs. Franchise fees usually range from $30,000 to $150,000 or more, depending on the brand.

Tips on Opening A Profitable Barber Shop

Start with Limited Chairs and Workstations

In the starting few workstations is a smart idea. One or two are enough to begin a small barbershop. If you plan to open a medium-sized shop, four to eight chairs should work well. If you start with fewer chairs, you’ll save on setup and staff costs. That means you’ll have more to spend on things that matter, like making the place look great or promoting your shop.

Minimize Renovation Costs

Renovation costs can spiral if you’re not careful, draining your budget fast. While a luxury look with premium chairs sounds great, it’s not always practical for new or small shops. Focus on what truly attracts and retains clients. Affordable décor and well-picked thrift furniture can still look sharp and feel inviting.

Conclusion

Every state has different costs when it comes to opening a barbershop. Things like rent, licenses, and worker pay can change depending on where you are. Do a little research in your city to see what the going rates are, and figure out how many clients you’ll need to keep your shop running.

Become a Barber in About 30 Weeks

If you’re ready to start your journey as a fully licensed barber, Campus offers a world-class training program at our Sacramento campus. In just 30 weeks, you can become a licensed barber in the state of California. Our comprehensive curriculum covers barbering, hairstyling, facial hair grooming, and essential business skills like client communication, retail sales, and salon management.