Startup cost
$150k–$200k
TRUiC Business Ideas
How to Start a Barber Shop
Decision Snapshot
Barber Shop
Idea Score
57
Profit margin
21%
Break-even
18 mo–36 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
High
Time commitment
Full time
Part 1 - How to start a Barber Shop business - Background
Barbershops provide men and boys with grooming services, such as haircuts and shaves. They are small shops that specialize in cutting men’s hair and shaving the neck and face. Since the times of ancient Rome, approximately 296 BC specifically, the barbershop has been known as a place to socialize in the neighborhood. It is a place for men to network and connect with others in the community.
Our guide is in 3 parts:
- Part 1 - How to start a Barber Shop business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a barber shop?
Experienced barbershop owners suggest a minimum capital investment of $150,000 to $200,000. This includes the following items:
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Attending barber school – $6,500 to $10,000
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Office space – cost varies, based on location
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Construction costs – your space must be up to current electric and plumbing standards
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Permits and licenses
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Insurance – speak with a licensed agent to determine what policies you need $2,400.
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Marketing materials – $3,000
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Shop equipment – cash register, business management software, signage – $14,000
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Shop inventory – chairs, child seats, clippers, scissors, trimmers, razors, brushes, mirrors, shaving powder, hair cream, after shave, cleaning supplies, etc. – $20,000
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Furniture and miscellaneous necessities – $5,000
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Website – $1,500 to $3,500
Should you decide to invest in one of many franchise opportunities, budget another $25,000 for franchising fees.
What are the ongoing expenses for a barber shop?
There are a number of items you should budget for to properly run a barbershop:
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Rent, phone, Internet, and utilities
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Marketing materials and campaigns
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Insurance
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Replenishing of both professional and retail supplies
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Regular cleaning and maintenance of shop and barber equipment
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Payroll and taxes – To reduce this expense, consider hiring barbers as independent contractors. They will compensate you for use of your chair by either paying rent or a percentage of their income. Commissions range from 30-70% of the barber’s profits.
Who is the target market?
Your customers will primarily be adult males. From time to time, you will have a younger boy customer in need of a haircut. Your client base will be comprised of individuals who appreciate the artistry of a quality barber and enjoy the camaraderie and social atmosphere that a barbershop offers.
How does a barber shop make money?
A barbershop makes money by charging a fee for services provided.
How much can you charge customers?
Pricing varies, depending upon the services you offer, your location, and experience. Neck clean up prices average $10, while haircuts can range anywhere from $20-$90.
How much profit can a barber shop make?
The average annual profit for a barber shop owner is $35,000. Many have reported profits of $70,000 and higher, depending upon location and the number of barbers they employ.
How can you make your business more profitable?
Barbershop owners suggest the following strategies to increase annual profits:
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Offer additional services, such as facials, hair coloring, and custom design haircuts.
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Have a retail section that includes products such as hair gel, razors, and brushes.
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Offer a mobile barber service
Day-to-Day and Growth
What happens during a typical day at a barber shop?
There are a number of items that will require your attention from day to day:
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Scheduling client appointments
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Consulting with customers regarding the cut and/or shave they would like
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Cutting and/or shaving clients
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Interacting with customers throughout the day
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Providing information regarding proper aftercare, when necessary
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Cleaning and maintaining all equipment
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Keeping shop clean
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Reordering supplies
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Networking and marketing
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Administrative tasks
What are some skills and experiences that will help you build a successful barber shop?
Before getting started, you will need to attend barber school and obtain the necessary certification. Additionally, many states require barbers to log a certain number of training hours, ranging anywhere from 800-2,000 hours.
This is a highly social profession, so you must be able to connect with clients from all backgrounds. The ability to listen is just as important as conversing.
As the owner, strong business acumen would also prove beneficial. If you fall short in this area, consider taking a basic business course or hiring a consultant.
What is the growth potential for a barber shop?
Deeply entrenched in history, barbershops are considered one of the most lucrative businesses in the world. Entrepreneurs who are willing to invest time and resources have the potential to expand their venture well beyond their primary location.
What are some insider tips for jump starting a barber shop?
Veteran barbershop owners offer the following tips:
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Before renting your space, research the areas to determine the necessity for your services. This will also help in deciding how much space you need and how many chairs you can rent to other barbers.
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Get experience in the industry before opening your own shop.
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When deciding on a location, make sure you set up in a high traffic area with ample parking.
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Start small, building as the business grows. Don’t initially invest in the most expensive equipment or too large of a space.
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Consider your clientele, when setting your hours of operation. For many, nights and weekends are preferred over weekdays.
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Try to design your shop with an old school feel with accents of trendy flair throughout.
How and when to build a team
While it’s recommended that you start small, you will need to hire additional barbers once the shop starts to gain recognition. Each barber should be licensed and well-groomed. He/she should be personable and dedicated to delivering quality customer service. Veteran shop owners caution against hiring perfectionists. Successful barbers are detail-oriented, but able to work swiftly.
Part 2 - Is a Barber Shop business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Barber Shop business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Barber Shop Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Barber Shop business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.