How to Start a Barbershop: Costs, Requirements & Step-by-Step Guide

If you’re a people person with a passion for style, chances are you’ve thought about owning a barbershop. It’s a chance to shape a creative community space for people to connect and leave feeling their best. But learning how to start a barbershop takes a whole lot of prepwork, not to mention budgeting.

If you’re feeling daunted by the logistical challenges (like licensing, equipment, and staffing), we’ve got the info to help you plan with confidence. Let’s walk through the key steps, typical costs, and legal details that come with starting a barbershop.

TL;DR: How to start a barbershop business

Here’s a quick and easy rundown of what you need to open your own barbershop:

How to start your own barbershop in 9 simple steps:

1. Get your barber license and meet legal requirements
2. Create a barbershop business plan
3. Choose a business model
4. Find the ideal location
5. Secure funding
6. Set up your business’s space
7. Get necessary permits and approvals
8. Hire and onboard your team
9. Kick off launch day and keep troubleshooting

Permits, certificates, and legal requirements for opening a barber shop:

• Barber license
• Cosmetology board approval
• Business license and Employer Identification Number (EIN)
• Certificate of occupancy for your space
• Sanitation and health inspections
• Liability insurance

How much does it cost to open a barber shop:

• One-time costs: $8,000–$25,000
• Monthly costs: $15,000–$40,000
• Total investment: $25,000–$200,000

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How to start a barbershop step by step

Here’s how to start a barbershop business from brainstorming all the way through launch day:

Step 1: Get your barber license and meet legal requirements

Legal requirements for opening a barbershop vary state-by-state, but there are three core components:

• Barber certification. Most states require completing an approved barbering program to prove you have the skill level (and sanitation knowledge) to work professionally.
• State board licensing. Once you’re trained, you’ll complete your Barber State Board Exam so you can apply for a license to open your barbershop. 
• Health and safety regulations. States have sanitation, cleaning schedules, and tool-handling rules that need to be followed, no questions asked.

Step 2: Create your barbershop business plan

A business plan is the backbone of your barbershop. It gives you a roadmap for your goals, and shows potential funders that you know what you’re doing.

These are the must-have components of a business plan for opening a barbershop:

• Services: Clearly list what you’ll offer from day one, from cuts to grooming extras. 
• Pricing: Undercharging loses income, overcharging loses customers. Research local rates and match them with your skill level, business costs, and target clientele.
• Branding: Come for the haircut, stay for the vibes. Your shop’s voice and visual identity are what makes you memorable and marketable.
• Competitors: What are nearby shops doing well? Where do gaps exist? Be clear on what will make you stand out.
• Financial projections: Give a detailed estimate of revenue, expenses, and growth scenarios. If you want buy-in from funders, you need to prove your shop is sustainable.

Step 3: Choose your business model

There are four common barbershop business models to choose from:

• Independent shop. You control everything: operations, pricing, atmosphere, and the brand itself. Great if you want creative freedom and are ready for big responsibility.
• Booth rental. Barbers rent stations at a barbershop and treat it as a semi-independent business. Useful for barbers who are saving up for their own shop, or owners who want to save money on rent.
• Mobile barbering. Instead of a storefront, you bring services directly to clients. A good option for scheduling masters who like novelty and traveling.
• Franchise barbershop. A franchise offers a proven system and built-in marketing. You have less control and need to pay ongoing fees, but you can avoid the pitfalls of starting a business from scratch.

Step 4: Find the right location

“Only three things matter when opening a business: location, location, location!” While the old saying is hyperbole, it’s not far off from the truth—location really can make or break a business.

Look for a spot that’s highly visible, near other popular businesses (that your clientele would frequent), workable parking, and a neighborhood that fits your vibe.

Before you sign any leases, be sure to look at:

• Term length
• Rent increases
• Build-out permissions
• Responsibilities for utilities and repairs

Step 5: Secure funding

If you’re looking into how to start a barbershop, you’ll learn fast that you can’t do it for free. But even if you have a tight budget, there are ways to make it work. .

Many shop owners use small business loans, community lenders, or local grant programs. Others bring in partners or save up with income they made from booth rental barbering.

Step 6: Set up your barbershop space

As you plan your barbershop setup, keep in mind:

• Layout design: Your chairs and stations should be organized so clients move smoothly from check-in to the chair.
• Must-have barber equipment: Stock reliable clippers, trimmers, shears, combs, and disinfectants. Quality gear means better results and lower long-term costs.
• Creating the right atmosphere: Lighting, music, color, and décor set the energy for the space. Your space should reflect your style.
• Sanitation and state compliance setup: Not staying up to code with sanitation and workplace safety laws is the fastest way to get shut down. Invest in cleaning stations and proper storage that takes the stress out of inspections.

Step 7: Get your permits & local approvals

Before your doors open, you’ve got to get the go-ahead from a few local bodies.

Key paperwork and approvals include your:

• Business license
• Certificate of occupancy
• Retail sales permit (if you’re selling products)
• Local health department approval
• Signage permit
• Fire inspection clearance

Step 8: Hire and onboard your barbers

Building a reliable, talented team is the real key to client retention and crucial word-of-mouth support, and you can get the jump on it by:

• Connecting with barber schools and asking for referrals can help you build a solid hiring pool.
• Including a technical demo in interviews with promising candidates to get an idea of their skill level, professionalism, and personality fit.
• Setting customer service expectations from day one and providing ongoing training to keep your talent top-notch.

As you’re hiring, make sure you understand the differences in worker classification for employees versus booth renters. Knowing if you’re providing W2 Forms or 1099 Forms will protect you from scrambling to fix costly mistakes during tax season.

To keep your whole team on the same page after hiring them, our team communication tools let employees sort through schedules and swap shifts in one easy app. (And maybe send some memes. It’s good for morale!)

Step 9: Launch your barbershop

Launching your barbershop in two stages is a final way to test your operations. Use your soft opening to gather feedback from a smaller, trusted group of clients so you can make adjustments before the crowd arrives.

Once you’re feeling confident with your systems, a grand opening will bring energy and attention to your barbershop—not to mention big marketing opportunities.

Opening day & operations: how to run your barbershop smoothly

Opening a barbershop is one thing, but keeping it sustainable is another. The key? Organized systems and structures that your entire team knows how to follow.

When you’re starting a barbershop, be sure to:

• Set staffing and employee scheduling expectations: Make sure every barber understands their hours, responsibilities, and performance goals.
• Build consistent systems: Create routines for opening, closing, cleaning, and handling appointments so the shop runs predictably.
• Manage payroll compliance: You can use manual spreadsheets if it brings you joy, but know that automated payroll software will track hours, payouts, tax withholdings, and state requirements. Less time sink and less room for error.
• Keep your team synced with the right tech tools: Time tracking, scheduling, group messaging, POS, and inventory software streamline daily tasks, especially if they integrate with one another.

Legal requirements for opening a barber shop

Understanding the legal requirements for opening a barbershop protects your business from costly setbacks and losing trust with clients.

Before opening day, make sure that you’ve secured your:

• Barber license: You’ll need an active barbering license to cut hair legally in your state. This verifies you’ve completed training hours and sanitation standards.
• Cosmetology board approval: Some states require shop-level approval from the cosmetology board.
• Business license: A business license allows you to operate legally in your city.
• Employer Identification Number (EIN): This is legally required for taxes, payroll, and financial records.
• Certificate of occupancy: This document proves your building is safe for public use and follows zoning laws. Inspectors check structural elements, exits, and basic utilities.
• Sanitation and health inspections: Local health departments review your cleaning routines and equipment maintenance.
• Liability insurance: Insurance shields you from financial risk if accidents or property damage occur.

If you need a hand with business licensing, our free Business License Assistant cuts down on research time by building you a permit checklist that meets local requirements.

How much does it cost to start a barbershop?

The cost of opening a barbershop depends on your location, the size of your shop, and how much detail you want to put into the space itself. Some costs are one and done, but others are ongoing investments.

One-time startup costs

Typical one-time expenses for your barbershop setup include:

• Licensing fees: Barber and business licensing usually runs $100–$1000 depending on your state.
• Equipment (chairs, clippers, mirrors, lighting): Professional chairs alone can range $300–$1,500 each, with full stations and tools pushing the total to anywhere between $5,000–$15,000.
• Furniture and décor: Depending on how fancy you want to get, waiting-area seating, shelving, and décor could land between $2,000–$10,000.
• Initial product inventory: Capes, sanitizers, and grooming products usually start around $650–$1,500.

In total, your startup costs are likely to range between $8,000–$25,000. If you’re doing any major build out, that number can rise significantly. While these numbers are estimates and your actual costs will depend on many variables, you can expect your barbershop startup costs to be within this range.

Monthly operating costs

Your ongoing expenses help you figure out your monthly break-even point which is key for making smart business decisions.

Be sure to factor in:

• Rent: Rent varies widely from location to location, with a national average of about $35 per square foot per year. For a 1,500 square foot barbershop, except to pay about $4000 per month.
• Utilities: Similar to rent, utility costs vary based on location, but expect $300–$800 for electricity, water, and internet.
• POS system: Monthly fees often range from $40–$150, plus hardware set up fees.
• Insurance: Liability and property coverage often run $400–$700 monthly.
• Staff wages: Payroll varies widely based on the type of employees you have, the hours they work, and the wage you set. For a shop with four barbers working 30 hours a week at $25 hourly wage, you would be paying $12,000 per month. If you go with a booth rental model, you can lower those labor costs.
• Cleaning supplies: Budget $50–$200 for disinfectants and disposables.
• Marketing: You can go all in with marketing, or choose more cost effective options. Expect to land somewhere between $50–$500 per month.

There are a lot of factors that go into the monthly cost of owning a barbershop. Expect to land somewhere between $15,000–$40,000 per month.

Because of all the different types of employees barbershops have, tracking labor costs can be a big expense for barbershops. Check out how our time tracking app can save you time crunching numbers and money fixing mistakes.

Total investment estimate

Most barbershops launch with $25,000–$200,000 depending on location, square footage, and the intensity of the build-out. To estimate your own startup number, outline every cost category, compare multiple vendors, and create a buffer for delays or upgrades that come up during setup.

How profitable is owning a barbershop?

As far as small businesses go, owning a barbershop is fairly profitable! According to the American Barbers Association, typical profit margins land between 10-25%, and a busy, well-managed barbershop could turn $450 per chair a day.

Keep in mind, location and pricing will significantly factor into your profit. Specialty services and retail sales of hair products or beard oils can add a couple more streams of revenue.

How can a barber make $100,000 a year?

In the United States, a barber’s median annual salary comes out around $52,000, but that doesn’t mean $100,000 is unattainable.

Here are five ways to boost the profitability of owning a barbershop:

• Increasing services to include fades, hair coloring, braiding, beard work, waxing, or hair unit installation.
• Including higher value add-ons like premium products, scalp and facial treatments, straight razor finishes, or hot towel shaves.
• Implementing client retention strategies through rewards programs and follow-ups—and most importantly, consistent and exceptional service.
• Choosing the business structure that fits you. Do the math on what you have to gain from booth rental, commission, or salary structures.
• Maximizing booked hours with online scheduling tools. The right software will cut out tedious comms admin, reduce gaps, and keep your calendar full.

How to open a barbershop business: choosing your setup & model 

Exploring how to open a barbershop will look different depending on the model you choose. Each comes with different responsibilities and startup demands, so it’s best to have an idea of what you need to invest to meet your personal goals.

Independent barbershop

How it works: You own and operate the entire shop. Branding, staffing, and every operational decision is yours to make.

Startup costs: Often higher due to build-out, equipment, and full business setup.

Pros:

• Full creative control
• All profits go back into the shop
• Flexible branding and service options

Cons:

• Requires strong management skills
• Higher financial risk
• More admin time

Booth rental barbershop

How it works: Barbers rent stations from you and operate independently while you manage the space itself.

Startup costs: Moderate, depending on the number of chairs and build-out needs.

Pros:

• Stable income from weekly or monthly rent
• Less scheduling and payroll responsibilities
• Attracts experienced, independent barbers

Cons:

• Less control over service
• Strict rental rules in some states
• Turnover can make revenue inconsistent

Barbershop franchise

How it works: You buy into an established brand and follow their system for operations, marketing, and design.

Startup costs: Higher due to franchise fees and required build-out standards.

Pros:

• Built-in brand recognition
• Corporate training and operational support
• Established marketing tools

Cons:

• Ongoing franchise fees
• Less creative freedom
• High upfront investment

Mobile barbershop

How it works: You bring your services directly to clients using a vehicle or mobile setup.

Startup costs: Low to moderate, mainly tied to the vehicle and equipment.

Pros:

• Lower overhead than a storefront
• Flexible schedule and location
• Accessible, convenient experience for clients

Cons:

• Weather and travel risks
• Limited number of clients you can serve at once
• Requires strong scheduling skills

What do you need to open a barber shop?

To open a barbershop, you’ll need a mix of professional credentials, legal documents, and the tools and equipment for a great barbershop setup:

• Barber license
• Business entity formation for taxes and liability.
• Lease agreement
• Insurance (general and professional liability, workers compensation, property)
• Equipment for stations, mirrors
• Barber chairs and tools
• Up to code sanitation tools
• POS and/or booking software
• Staffing plan for hiring, scheduling, and team management

Marketing your barbershop and building clientele

For barbershops, small business marketing showcases your style and celebrates your community, turning first-time clients into regulars.

Here are a few tools and strategies you can use for barbershop marketing:

Branding and social media presence

Your brand identity tells the story of your shop, and social media is where to tell the story of its characters. Before and after pictures show off your barbers’ skills, and videos of them at work highlight their personalities and specialties so clients can find their ideal match.

Online booking tools

Easy-to-use booking software reduces friction for clients and keeps your schedule full. When clients can book from their phones at any time, you increase the chances of consistent appointments and fewer no-shows. Plus, there is less room for miscommunication.

Loyalty programs

It’s simple but it’s tried and true: rewarding repeat visits encourages clients to return more often. Simple punch cards, points systems, or digital rewards incentivize business. Adding a free service as a one-time reward can also get a client to upgrade moving forward.

Referral programs

What do you need to open a barbershop? Word-of-mouth, plain and simple. If clients love your barbershop, chances are they’ll tell your friends. Offer them a discount or bonus for referrals? Now you’ve got a street team.

Community partnerships

Getting involved in local events, sponsoring sports teams, or collaborating with nearby businesses puts your shop in front of a wider audience. Barbershops can serve as community hubs, and giving back is the fastest way to create new connections.

FAQs about starting a barbershop

How much money do I need to start a barber shop?

To start a barbershop, you typically need to invest between $25,000 to $150,000, depending on location, size, and setup. This covers licensing, equipment, furniture and décor, starting inventory, and build-out costs.

Additional savings will help you with monthly expenses when your business is just getting started.

How do I start my own barbershop?

You start your own barbershop by getting licensed, securing a location and funding, and creating a space that matches your business model. From there, hiring great staff and marketing your business will help you grow.

How to start a barbershop that lasts

Starting a barbershop takes planning, but it doesn’t need to be intimidating. Once you’ve got the legal prep done and your location secured, the real fun begins: designing a space where confidence thrives. Follow the steps, trust in your vision, and you’ll make magic.

When you’re getting ready to open your doors, shoot us a message! Homebase helps you manage employee schedules, timetracking, hiring, and payroll from one simple app.

Focus on cutting hair, not administrative headaches. Reach out today.

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