Do you want to know exactly how much it cost to start a barbershop business? If YES, here is a detailed cost analysis for starting a barber shop and raising finance.

A barber shop is a place where people go to have their hair cut and of course it is the work place of a barber. A barber is a person whose livelihood is mainly to cut, dress, groom, style and shave men and boys’ hair and in some cases ladies/girls who keep low cut.

Aside from the fact that people go to have a haircut, dress, groom, style and shave in a barber shop, it is also place where people go to socialize with other folks in the neighborhood and also to engage in trendy discussions about the community or country as the case maybe. It is also a place where people go to network, to discuss sports and overall, it is a hub that contributes in shaping the male identity.

Now having provided you with a:

  1. Barbershop Industry Overview
  2. Market Research and Feasibility
  3. Barbershop Business Plan
  4. Barbershop Marketing Plan
  5. Barbershop Name ideas
  6. Barbershop Licenses and Permits
  7. Cost for Starting a Barbershop
  8. Barbershop Marketing ideas

We will consider how much it cost to start a barbershop business from scratch including the operating costs.

Industry Overview

In the United States of America, the labor law and licensing requirements as it concerns barbers for each state differ on their labor and licensing laws. For instance; a cosmetologist who operates in the state of Maryland cannot make use of a straight razor which is strictly reserved for barbers alone.

While in the state of New Jersey both barbers and cosmetologists are regulated by the State Board of Cosmetology and there is no longer a legal difference in barbers and cosmetologists, as they are issued the same license and can practice the art of straight razor shaving, coloring, other chemical work and haircutting if they choose.

If you have plans of becoming a barber and to open a barber shop, then you are expected to undergo a barber training. There are several means of getting trained as a barber. If you are in the United States of America you are expected to attend a “Barber School”, that’s only when you can easily acquire your license and permit. Besides, most states in the U.S require a barber to possess a license before they can be allowed to practice barbering professionally. People also learn the trade by understudying professional barbers in their shops.

No doubt, the cost of attending a barber school varies from state to state, and also from city to city. Schools in larger cities tend to cost more than those located in smaller cities and rural towns. So also, brand names can also affect the cost of barber school. On the average, most barber schools in the United States cost between $6,500 and $10,000 to complete.

The fact that each state has different minimums for training hours, the length and cost of the program can vary for that reason. Another factor that influences the fees is that some schools’ tuition includes supplies and textbooks, whereas others do not.  Note that Barber license exam fees typically range from $50 to $150 in the United States of America and Canada.

Lastly, most states in the U.S require the same amount of training hours for barbers as they do for cosmetologists. Basically, the number of hours required ranges from 800 to 2,000 training hours and it depends on the state’s licensing requirements. Over and above, most barbing programs can be completed in a year and three months or less.

How Much Does It Cost to Start a Barber Shop Business?

The cost analysis as it relates to starting a barber shop business in the United States of America, Canada, United Kingdom, and Australia can be said to be almost the same except for few variations. For example, the cost of key components in a barber shop such as clippers, clipper sterilizers, combs, mirrors, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair dye/color, hair creams, after shave and other barbing accessories and supplies are same especially when bench–marked against the US Dollars.

Other factors that may be slightly different in terms of costing when it comes to starting a barber shop business in any of the countries listed above are; cost of labor, cost of transportation and logistics, local tax, business incorporation fee, rent/leasing amongst other factors.

Over and above, when it comes to starting a medium scale barber shop, you should be prepared to either rent or lease a standard and centralized shop facility. This is going to be one of the areas where you are expected to spend the bulk of your start-up capital.

Other areas are the amount required to purchase clippers, combs, mirrors, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair creams, after shave and other barbing accessories and supplies, the scale/size of the business and also in paying your employees at least for the first three months of starting the business.

How Much Does It Cost to Start a Barber Shop Business in the United States?

These are the key expenses you are expected to make when starting a medium scale but standard barber shop business in the United States of America;

  • The total fee for registering the business in the United States of America – $750
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300
  • Marketing promotion expenses for the grand opening of the barber shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,000
  • The cost for remodeling the shop – $5,000
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500)
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (clippers, combs, mirror, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair creams, after shave and other barbing accessories and supplies) – $20,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, tables and chairs et al): $4,000
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of one hundred and fifty thousand dollars ($150,000) to successfully set up a medium scale but standard barber shop in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 month of operation and it only applies to a single barber shop.

Starting a small scale but standard barber shop business in the United States of America will cost about fifty thousand dollars to one hundred and fifty thousand dollars ($50,000 to $150,000).

When it comes to starting a standard and large scale barber shop with several outlets in key cities in the United States of America, a company with the intention of selling franchise, then you should look towards budgeting well over five hundred thousand dollars ($500,000).

How Much Does It Cost to Start a Barber Shop Business in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard barber shop business in the United Kingdom;

  • In the United Kingdom, online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – £700.
  • Marketing promotion expenses for the grand opening of the barber shop in the amount of £3,500 and as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
  • The cost for hiring a business consultant (including writing business plan) – £2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – £2,400.
  • The cost for payment of rent for 12 months at £1.76 per square feet in the total amount of £25,600.
  • The cost for shop remodeling – £3,000.
  • Other start-up expenses including stationery (£300), phone and utility deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000
  • The cost for start-up inventory (clippers, combs, mirror, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair creams, after shave and other barbing accessories and supplies) – £15,000
  • The cost for store equipment (cash register, security, ventilation, signage) – £9,500
  • The cost of purchase and installation of CCTVs: £4,500
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): £2,500.
  • The cost for building and hosting a website: £600
  • The cost for opening party – £2,000
  • Miscellaneous: £5,000

You will need an estimate of one hundred thousand pounds sterling (£100,000) to successfully set up a medium scale but standard coffee shop in the United Kingdom. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it only applies to a single barber shop outlet.

Starting a small scale but standard barber shop business in the United Kingdom will cost about twenty five thousand to seventy five thousand pounds sterling (£25,000 to $75,000).

When it comes to starting a standard and large scale barber shop with several outlets in the United Kingdom, a company with the intention of selling franchise, then you should look towards budgeting well over three hundred and fifty thousand pounds sterling (£350,000).

How Much Does It Cost to Start a Barber Shop Business in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard barber shop business in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Canada’s online Filing Centre ($250 if filed through other means).
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the barber shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,000.
  • The cost for remodeling the shop – $5,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (clippers, combs, mirrors, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair creams, after shave and other barbing accessories and supplies) – $20,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, tables and chairs et al): $4,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of one hundred and fifty thousand dollars ($150,000CAD) to successfully set up a medium scale but standard barber shop in Canada. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it only applies to a single barber shop.

Starting a small scale but standard barber shop business in Canada will cost about fifty thousand dollars to one hundred and fifty thousand dollars ($50,000CAD to $150,000CAD).

When it comes to starting a standard and large scale barber shop with several outlets in key cities in Canada, a company with the intention of selling franchise, then you should look towards budgeting well over five hundred thousand dollars ($500,000CAD).

How Much Does It Cost to Start a Barber Shop Business IN Australia?

These are the key expenses you are expected to make when starting a medium scale but standard barber shop business in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year, $80 for 3 years.
  • Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the barber shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,000.
  • The cost for remodeling the shop – $5,000.
  • Other start-up expenses including stationery ($500), phone and utility deposits ($2,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (clippers, combs, mirror, flat screen TVs, sound system, scissors, shampoos, shaving powders, hair creams, after shave and other barbing accessories and supplies) – $20,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, tables and chairs et al): $4,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $2,000
  • Miscellaneous: $5,000

You will need an estimate of one hundred and fifty thousand dollars (AUD$150,000) to successfully set up a medium scale but standard barber shop in Australia. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and it only applies to a single barber shop.

Starting a small scale but standard barber shop business in Australia will cost about fifty thousand dollars to one hundred and fifty thousand dollars (AUD$50,000 to AUD$150,000).

When it comes to starting a standard and large scale barber shop with several outlets in key cities in Australia, a company with the intention of selling franchise, then you should look towards budgeting well over five hundred thousand dollars (AUD$500,000).

Estimating Start-Up Cost for Barber Shop Business was Based on the following factors;

  • Staff/Manpower

When it comes to starting a standard barber shop business on a large scale, you would need the services of certain professionals. These people play a very vital and important role in the barber shop business. The following professionals are needed;

  • Chief Barber/Chief Executive Officer (Owner)
  • Deputy Chief Barber/Barbing Salon Manager
  • Barbers
  • Sales Agent
  • Cashier (Counter Agent)
  • Cleaners
  • Security Guards

Can a Barber Shop Business be Bootstrapped on a Lean Budget Right from Home?

A barber shop business is one of many businesses that despite the fact that it can be started with a relatively lean budget, it can’t be operated from home except you want to major only in offering home services – going to the houses of your clients.

This is because you would not want people to continue to knock at your door and invade your privacy just because you want to cut/groom their hair. As a matter of fact, it is a security risk and you are likely not going to get a clearance from the regulating department in your city.

Although in some countries, you can successfully launch a small scale barber shop or kiosk in your front yard. With that, you can indeed bootstrap your barber shop on a very lean budget within your residential apartment/estate. Just ensure that you consult the required authority in your city to be sure you secure a permit to run a business in a residential area.

How Much Does It Cost to Buy a Barber Shop Business Franchise?

In the United States of America, the Average Cost of Purchasing a Barbershop Franchise is $120,000. Examples of 3 Well – Known Barbershop Franchising Companies in the United States of America are;

  • Hammer & Nails/Grooming Shop for Guys
  • Sharkey’s Cuts for Kids
  • Image Studios 360

In the United Kingdom, the Average Cost of Purchasing a Barbershop Franchise is £80,000. Examples of 3 Well – Known Barbershop Franchising Companies in the United Kingdom are;

  • Headcase-Barbers Franchise
  • Tommy Gun’s Original Barbershop
  • Hair for Men Ltd

In Canada, the Average Cost of Purchasing a Barbershop Franchise is $150,000 (Canadian Dollar). Examples of 3 Well – Known Barbershop Franchising Companies in Canada are;

  • MVP Modern Barbers
  • Tommy Gun’s Original Barbershop
  • The Barbershop A Hair Salon for Men ®

In Australia, the Average Cost of Purchasing a Barbershop Franchise is AUD$150,000. Examples of 3 Well – Known Barbershop Franchising Companies in Australia are;

  • Tommy Gun’s Original Barbershop
  • BarberVan® franchise family
  • Wellington & Barber