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 2021

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.

Frequently Asked Questions

  1. How Do You Start A Barbershop Business?
  • Get the required barber’s training and experience
  • Choose a name and register the business
  • Draft a detailed Business Plan and market strategy
  • Secure the needed licenses and permits
  • Apply for an EIN (Employer Identification Number)/Federal Tax ID Number
  • Open a corporate bank account
  • Lease and equip a Barbing Salon
  • Hire employees
  • Promote and Market your Business
  1. What Are The Types Of Barbershop Businesses?
  • General Barbershop
  • Adult Barbershop
  • Children’s Barbershop
  • Mobile Barbershop
  1. Who Is The Target Market For A Barbershop?
  • Adult male
  • Children
  • Females
  1. What Makes A Good Barbershop?
  • Attention to details
  • Attention to health and hygiene
  • Neat
  • Well ventilated
  • Always deliver excellent cuts
  • Customer’s friendly
  1. What Kind Of Barber Equipment Do You Need To Open A Barbershop?
  • Clippers
  • Sterilizers
  • The Right Furniture
  • Barber Poles
  • Combs and Hair Dryers
  • Led Light
  • After Shave Lotion And Styling Gel
  1. How Do You Succeed In Barbershop Business?
  • Be diligent
  • Be professional
  • Be consistent in delivering excellent services
  • Always improvise on ways to do things better
  • Fix competitive price for your services
  • Be creative with your branding and marketing
  1. What Does A Beginner Barber Need?
  • Disinfectants for barbers.
  • Neck strips & dispenser for neck strips
  • Clippers
  • Clipper accessories
  • Hair Shears for Barbers
  • Razor holder and razor blades
  1. Where Can You Find A Barbershop Sample Business Plan?

Your go-to place to find a barbershop business plan sample is https://www.profitableventure.com/

  1. How Much Money Can You Make As A Barber?

The mean annual wage of a barber is $30,480. Barbers in the 75-90th percentile can make between $37,490-$48,480 annual salary. The average hourly and annual wages of barbering vary, however, according to your location and position.

  1. What Licenses And Permits Do You Need To Start A Barbershop?

Aside from your regular business license and permits, if you play recorded music, music videos or the radio in your salon or barbershop you’ll need both a PPL and PRS license.

  1. Where Can You Find Good Barbershop Software?

BookSteam is a cloud-based appointment scheduling software aimed at small and large barbershops.

  1. What Types Of Business Insurance Do Barbershops Need?
  • Property insurance
  • Liability insurance
  • Legal expenses insurance
  • Personal accident insurance
  • Workers’ compensation
  • Professional Liability Insurance
  1. Is Barber Shop A Good Business?

Barbershops are some of the most successful startups in America. Well managed barber shops have many opportunities to make profit.

  1. What Are The Benefits Of Owning Your Own Barbershop?
  • You will be your own boss
  • You will earn as much as you can
  • You will have your time to yourself
  • You will have the opportunity to network with your customers
  1. What Skills Do Barbers Need?
  • Arm/hand control, stability
  • Ability to stand for long periods of time.
  • Manual dexterity and strength (the ability to grip and manipulate tools)
  • Finger dexterity (the ability to grasp and manipulate very small objects)
  • Good interpersonal skills
  • Good communication skills
  1. How Difficult Is It To Run A Barbershop?

In the actual sense, it is not difficult to run a barbershop because the business can be run on autopilot.

  1. What Are The Costs Involved In Opening A Barber Shop?
  • The cost of registering the business
  • The cost of obtaining the required business licenses and permits
  • The cost of renting and equipping a shop
  • The cost of purchasing clippers and barbing salon accessories
  • The cost of branding and promoting your barbershop
  1. Do You Need A License To Own A Barber Shop?

It depends in the jurisdiction you are operating your barber shop.

  1. What Qualifications Do I Need To Be A Barber?

There are three qualifications to choose from at this level: Level 3 NVQ Diploma in Hairdressing. Level 3 NVQ Diploma in Barbering. Level 3 NVQ Diploma in Hairdressing (Combined Hair Types).

  1. How Much Does It Cost To Set Up A Barber Shop?

Plan to spend $75,000 to start a smaller shop with just a few stations; larger shops can cost $150,000 and more. Common startup costs for a barbershop include: Barber school – $5,000 – $10,000. Shop equipment and supplies such as clippers, scissors, trimmers, combs, etc.

  1. What Are The Ongoing Expenses For A Barber Shop?
  • The cost for the purchase of aftershave, powder, shampoos, hair dyes, sterilizers et al
  • The cost for paying your barbers
  • The cost for paying of your utility bills
  1. How Do Barbershop Owners Make Money?

Some ways barber shop owners can earn more money include: offering haircuts, and renting out booths. Monthly booth rental fees can range anywhere from $200 per month to over $600—depending on your location and facilities.

  1. Is Buying A Barbershop A Good Investment?

A barber shop is very profitable. You can make good money without even being a barber yourself.

  1. How Much Money Can You Make Owning A Barbershop?

According to The Barber School, barbershop owners make an average salary of $30,000.

  1. Any Tips For Choosing A Location For A Barbershop?
  • A location that is centrally positioned
  • A location that is easily accessible
  • In a residential estate
  • A location with good human and vehicular traffic
  • A location with the right demography of adult males.
  1. How Do You Write A Barber Shop Business Plan?

You download a business plan template online. It will enable you write your own barber shop business plan with little or no stress.

  1. How Much Does It Cost To Open A Barber Shop?

Plan to spend $75,000 to start a smaller shop with just a few stations; larger shops can cost $150,000 and more. Common startup costs for a barbershop include: Barber school – $5,000 – $10,000. Shop equipment and supplies such as clippers, scissors, trimmers, combs, etc.

  1. How Do You Manage A Barber Shop?
  • Subscribe to Good Magazines and Invest in a Television Set.
  • Ensure That The Barber Shop is Clean.
  • Offer Consistent Service.
  • Talk to The Clients.
  • Make Your Shop Comfortable.
  • Provide Extra services and Entertainments.
  1. Is Owning A Barber Shop Profitable?

Yes, owning a barber shop is profitable. This is so because, according to the Bureau of Labor Statistics, the average annual income for a barbershop owner is $27,000, which comes out to about $11.00 an hour.

  1. How Much Does A Barber Make A Day?

Well, if you take $13 (hourly rate) and multiply it by about 10 hours of work, a barber can make at least $130 per day.

  1. Do Barbers Make A Lot Of Money?

According to ZipRecruiter, the national average salary as a Master Barber hovers around $45,822 per year. Master Barbers make the most money on average in New York ($52,878/year) and the least in Florida ($38,737/year). Some Master Barbers make upward of $68,000 or more per year

  1. How Do Apprentices Get Paid?

The government each year specifies a minimum wage that employers must pay their apprentices. The minimum wage rate applies to apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to national minimum wage rates for their age.

  1. What Is The Difference Between Barber School And Cosmetology?

The biggest difference is that barbering is strictly focused on hair, whereas cosmetology has a much broader inclusion, such as nails, skin, hair, and more. Barbering is much more zeroed in on hair and facial hair training and experience, and again, is typically focused on men’s needs.

  1. How Much Does A Barber Shop Chair Cost?

The cost for these chairs may run you anywhere between $1,500 to $6,000 each. Some of the brands of old school chairs you can get are Koken, Kochs, Emil J, and others. Each one of these manufacturers or dealers will have a variety of chairs you can choose from

  1. How Much Does It Cost To Become A Barber?

Community colleges and private technical schools offer barbering programs. The program costs vary significantly by a school from around $2,000 to more than $11,000.

  1. What Is The Growth Potential For A Barber Shop?

Over the five years to 2020, revenue for the Barber Shops industry is expected to grow at an annualized rate of 5.3% to $4.9 billion. In 2020 alone, industry revenue was projected to rise 1.3%. Industry operators have experienced rising revenue as high-end barber shops open.

  1. How Can You Improve Your Barber Skills?
  • Attend barber’s refresher courses
  • Watch training videos on latest barbing skills
  • Read resource materials on improving barbing skills
  • Practice, practice and practice
  1. What Happens During A Typical Day At A Barber Shop?
  • The shop, mirrors and chairs are cleaned and sanitized
  • The clippers and other barbing accessories and supplies are properly positioned
  • The shop is open for business.
  1. How Many Parking Spaces Does A Barbershop Need?

The parking space a barbershop needs depends on the size of the barbershop. For example, a medium scale barbershop in a high traffic prone area will need about 10 parking lots.

  1. Any Ideas For A Barbershop Grand Opening?
  • Throw open house party targeting the residence
  • Offer free hair cut for certain number of people
  1. What Subjects Do You Need To Be A Barber?

You will usually need 5 GCSEs at grades 9 to 4 (A* to C), or equivalent, including English and maths, for an advanced apprenticeship.

  1. What Are The Best Barber Chairs In The Market?
  • BR Beauty K.O. Professional Barber Chair
  • BarberPub Vintage Heavy Duty Metal Frame Chair
  • Artist Hand Vintage Barber Chair
  • Paddie Hydraulic Reclining Barber Shop Chair
  • Artist Hand Hydraulic Reclining Barber Chair
  • Artist Hand Hydraulic Reclining Barber Chair
  • BarberPub All Purpose Heavy Duty Vintage Chair
  1. How Many Cuts Does A Barber Do A Day?

A barber can do between 26 to 31 cuts in day. Please note that this will depend on loads of factors

  1. What’s The Best Type Of Business To Form If You Want To Open A Single Barbershop With A Staff Of Other Barbers?

A Sole proprietorship is the best type of business to form if you want to open a single barbershop with a staff.

  1. Who Is The Most Famous Barber In History?

Ambroise Paré. He was seen as the Godfather of Barbers

  1. Who Is The Richest Barber?

The richest barber is Ramesh Babu. He is the Billionaire Barber Who Owns 400+ Cars, Including BMWs, Jaguars & a Rolls Royce.

  1. What Is Barber Chair Tree?

The splitting of the butt of the log during the latter part of the fall. The tree often remains attached to the stump, thus creating a danger zone and ruining much of the log.

  1. Can Barbers Make 6 Figures?

Barber salary ranges can vary widely based on a number of factors, including how many hours are worked, how many cuts are performed, the price per haircut, the location of the barbershop, and the number of years in experience. With that said, the best barbers can earn 6-figure incomes.

  1. How Much Do You Tip A Barber For A 15 Dollar Haircut?

Although tipping is optional, it’s always great to show your appreciation for great service with 15–20% of the total cost of the hair service. If your haircut costs a total of $25 but you have a $5 off coupon which means you pay $20 then you should tip on the total amount of the haircut before the discount.

  1. What Do Barber Shops Sell?

If you are looking for a product idea to sell in your barber’s shop, then you should consider selling;

  • Clipper Blades
  • Barbing Apron
  • Clipper Bags
  • Sale of Hair Combs and Brushes
  • Sale of Shaving Powders and Shaving Preparations
  • Sale of Aftershaves
  • Sale of Face/Talcum Powders
  • Sale of Hair Cream
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