Do you want to start a barbershop business and want to know the cost breakdown? If YES, here are 13 factors that determine how much it cost to open a barber shop. 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.

Estimated Cost Breakdown for Starting a Barber Shop in 2023

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;

  1. The total fee for registering the business in the United States of America – $750
  2. Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300
  3. 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
  4. The cost for hiring a business consultant (including writing business plan) – $2,500.
  5. The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  6. The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,000
  7. The cost for remodeling the shop – $5,000
  8. Other start-up expenses including stationery ($500), phone and utility deposits ($2,500)
  9. The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  10. 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
  11. The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  12. The cost for the purchase of furniture and gadgets (Telephone, tables and chairs et al): $4,000
  13. The cost for building and hosting a website: $600
  14. The cost for opening party: $2,000
  15. 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 Buy a Barber Shop 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

Having said that, here are some of the factors that will influence the cost of opening a barbershop business in the United States of America;

13 Factors That Determine the Cost of Opening a Barbershop

  1. The Type of Barbershop

A major factor that will determine the overall cost of opening a barbershop in the United States of America is the type of barbershop you want to open. A barber shop offers grooming services for men and children and perhaps ladies.

Most barbershops for kids usually go beyond offering their core services to putting facilities in place to attract children. They usually have toys, video games and play areas for kids to play in while waiting for their turns. Besides, some barbershops also offer home services. It is fact that these different types of barbershops have different startup cost.

  1. The Choice of Location

Another major factor that will determine the cost of opening a barbershop in the United States of America is the location. In business, location is key part of what determines the success of the business. There are business consultants who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability.

So, you will now agree that location can influence the cost of starting a business. For example, renting or leasing a shop facility in a location that is off the city center or off a major road is less expensive when compared to renting or leasing a shop facility in a highbrow area; a location along a major road with high vehicular and human traffic.

  1. The Required Licenses and Permits

In the United States of America, you cannot open a barbershop without first applying for the mandatory licenses and permits. You would need barbering license or operational license, building license, zonal permits, and signage permit and other specific permits and licenses that may be unique to different cities and states. These license and permits cost money and it will influence the overall cost of opening your barbershop.

Please note that you must pass several inspections before you can be issued your license and this will also cost you money. In order to get the overall cost of licensing and permits associated with opening a new barbershop in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.

  1. The Type of Facility

The type of facility you want to operate your barbershop from is also a major factor that will determine the overall cost of opening the business. As regards the facility, you have the options of renting a shop facility, leasing a shop facility in a booth rental salon or constructing your own barbershop facility from the scratch.

With renting and leasing, you might just have to spend extra to modify the facility to fit into what you have in mind, the number of seats/barber stands and waiting room that you want to attach to your barbershop, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.

Let us assume that you want to construct your facility from the scratch. It means that you will buy the land or a property, course construct and equip the barbershop facility. You will agree that you are going to spend more when compared to people that rent or lease a barbershop facility in a booth rental salon.

  1. The Size of the Barbershop

Another very important factor that determines the cost of opening a barbershop in the United States of America is the size of the barbershop. Of course, the larger the barbershop, the large the budget to get it up and running especially as it relates to stocking furnishing and equipping the barbershop.

Aside from the cost of furnishing and equipping the barbershop, it will also cost you more to position employees to man the barber stands and this will translate to spending more to open the barbershop. For example, less than a handful of employees can man a barbershop that is in a 12 by 12 shop facility or a booth rental salon while it will take about a dozen employees to man a barbershop that is in a 24 by 24 facility.

  1. The Cost of Hiring and Paying a Business Consultant and Attorney

If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, comprehensive SWOT analysis, and other advisory issues.

Also, an attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors) and offering you all the legal expertise that will help you start the business on the right foundation. Of course, these services will cost you money and it will indeed influence the overall cost of opening a barbershop in the United States of America.

  1. The Cost for Branding, Promotion and Marketing of the Barbershop

The cost for branding, promoting and marketing the barbershop is yet another key factor that will determine the overall cost of opening a barbershop in the United States of America. Trust me, if you need massive results from your business, then you must be willing to pay for effective branding, promotion and marketing.

As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your barbershop.

  1. The Cost for Furnishing and Equipping the Barbershop

Another factor that will determine the cost of opening a barbershop is the cost of furnishing and equipping the barbershop. You will quite agree that aside from the basic facilities that are expected to be found in a barbershop, an investor may decide to spend more than expected to furnish and equip the barbershop to look unique and very attractive.

Before you can open your barbershop, you should purchase items like clippers, clipper sterilizes, mirrors, storage hardware (bins, rack, shelves, food case), Flat Screen TVs, sound system, Video games, toys, Satellite dish and decoder, furniture (table, sofas and stools), telephones, filing cabinets), store equipment (cash register, POS machines, security, CCTV, ventilation, signage), security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening a barbershop in the United States of America.

  1. The Cost for Insurance

The cost for paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a barbershop in the United States of America. In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.

Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your barbershop business.

  1. The Cost for Registering the Business

The cost for registering the barbershop business is yet another cost that will influence the overall cost of opening a barbershop in the United States of America. Although, the cost of registering a business is affordable, but it will no doubt add to the overall cost of opening your barbershop.

  1. Cost of Recruiting and Training Your Staff

The fact that you are opening your barbershop as a new business means that you are expected to recruit and train your staff to conform to the kind of barbershop you want to operate. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers that will help you train your new hires, and that will add to the overall cost of opening a barbershop.

  1. The Cost for the Purchase of Uniforms for Your Employees

Another factor that will determine the overall cost of opening a barbershop in the United States is the cost of the purchase of cover clothes, uniforms, shoes, and caps amongst others. Barbers, front desk/payment attendants and security personnel all have different uniform and they are expected to put on these uniforms when they are on duty. All these uniforms will cost you money which is why it must be part of your budget.

  1. The Cost for Grand Opening of the Barbershop

You will agree that in recent times, no barbershop opens its door for business without first organizing an opening party to officially launch the business. This means that the cost of your grand opening will determine the overall cost of opening your barbershop in the United States of America.

You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and this cost will influence the overall cost of opening the barbershop business.

In Conclusion,

These are some of the factors that will determine the overall cost of opening a barbershop in the United States of America. Please note that there are other factors not listed above that will sure influence the overall cost of opening your barbershop business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide.

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