One of the more realistic small business dreams is to open a barber shop. No need to have a warehouse full of stock, a large staff, or years of R&D. All you need is a chair, a steady hand, and a sufficient amount of capital to make it through the doors and past the first few slow months.
The truth of the matter is that it depends on the location, size of space, and the level of polish you want the day you open. However, the average price of a new owner getting a barber shop from a blank lease to a viable business is somewhere between $30,000 and $120,000. Some lean operations are much less expensive; some upscale stores in big cities are more expensive.
This guide outlines all of the high costs you’ll encounter, and the little ones that people may forget to pay until the invoice arrives.
How Much Does It Cost To Open A Barber Shop?
If you are considering a small, no-frills shop with 1-3 chairs in a low-cost neighborhood, expect to spend $25,000 to $50,000. This includes a small lease deposit, some basic renovations, secondhand or budget furnishings, and the tools you’ll need on opening day to begin cutting hair.
Typically, the price range for a mid-sized shop, with four to six chairs, a proper waiting area, and a reasonable amount of interior work is $50,000 to $90,000.
Costs typically run into the $100,000s or more when opening in a commercial or high-traffic commercial building, selecting a higher-end design, or when the building is larger and has six or more stations. Once franchise fees are included, the top end of this range is the typical price for franchise locations.
These are only estimates and not guarantees. The real number will shift according to the choices outlined below.
Breakdown Of Startup Costs
Lease And Security Deposit
Normally, commercial landlords will require that the renter pays the first and last month’s rent plus a security deposit before they give over the keys. This will cost $5,000 to $18,000 upfront, depending on the size and location of the space. A bustling street corner in a booming city is going to be more expensive than a quiet strip mall in a less-populated town, and you’ll know the difference right away when you make your deposit.
Renovation And Build Out
Few places are available for renting as a barber shop the day you move in. There will be the need for new flooring, new electrical outlets for clippers and dryers, proper lighting, plumbing for sinks, and fresh paint. The cost of light renovations is $6,000 to $25,000, and a complete gut and rebuild can exceed that, particularly if plumbing has to be installed from the ground up.
Inquire of your landlord specifically if they will cover any build-out costs. Many will, especially for a longer lease, and it’s a discussion that could save you thousands.
Furniture And Equipment
The main attraction of the store is a barber chair. The price of entry-level chairs begins at about $400 to $600 per chair, and the more comfortable, high-end hydraulic chairs can cost $1,500 to $2,500 per chair. Typical furniture cost is $3,000 – $12,000, with furniture for the waiting area, mirrors, workstations, and reception furniture included.
Tools And Supplies
The initial equipment of clippers, trimmers, scissors, combs, capes, towels, shampoos, pomades, and aftershaves, etc. is $1000-$3000. This is a smaller cost than rent or renovation, but it’s also a cost that needs to be topped up on a regular basis, so make it a recurring cost, not a one-off purchase.
Licenses, Permits, And Insurance
All barbers in the shop must be licensed by the state, and this fee is typically $50 to $200 per state. In addition, the business must have a general business license and local signage and building permits, which usually cost $150 to $750. The cost of a small shop’s general liability insurance is typically anywhere between $1,200 and $3,000 per year, and it is not required in all states.
Point Of Sale and Booking Software.
All modern stores require an option for making payments and scheduling appointments. The basic setup of a point of sale system, including card processing hardware, costs about $300 to $1,000, and the monthly software fee is typically between $30 and $100, depending on the features you require.
Signage And Branding
The average price of exterior signage, window graphics, and a basic logo package is $1,000 to $5,000. Keep it simple and clean, and visible from the street. No flash here; a simple sign will do more for walk-in traffic than an expensive one that blends in with the block.
Marketing And Website
Most new shops will need at least a basic website as well as a Google Business profile to be found online. The cost to build a simple website is $500 to $2,000, and it will cost $500 to $2,000 more to market the site for launch with local advertisements, flyers or a grand opening promotion.
Professional Services
During the business registration process, having a little money to contribute to an accountant or lawyer to register the business properly, determine the correct entity structure, and prevent later problems with contracts or leases can save you a lot of money.
Monthly Costs After Opening
Opening the doors is just half the battle. As you’re running, take into account these recurring expenses:
- Rent: $1,200 – $4,000, depending on size and location.
- Utilities, generally $200 to $600
- Payroll or chair rentals, depending on staffing model (this can range significantly)
- The cost of restocking supplies is approximately $200 to $500.
- Software subscriptions (typically $50-$150).
- Monthly insurance payments of $100 to $300.
Many owners do not realize that they should have enough cash on hand to pay these costs for the first three to six months until they have enough clients. Three to four months’ operating expenses in addition to startup is a good rule of thumb.
What Affects The Cost The Most
The most important single factor is location. Even if a high-rent city neighborhood and a small town look alike on paper, a shop in the city neighborhood will always be more expensive to lease and renovate.
It’s important as well how many chairs you begin with. Each additional workstation will increase the furniture cost, space needs, and possible payroll. A lot of successful owners start with two or three chairs and add to it only when the demand warrants it.
The budget is also influenced by your staffing model. If you hire full-time barbers, then you have a guaranteed income from the first day, but if you are renting chairs to independent barbers, you are taking a lot of the risk out of the financial equation and can make the first year significantly easier.
Ways To Lower Your Startup Costs
Second-hand furniture and chairs can be purchased for almost half the price from closing shops or auctions. It’s okay to ask for a landlord contribution for renovations in all leases, no matter how awkward it may seem. Having fewer chairs and increasing them as your clientele expands will help manage the cost of furniture and payroll early on. Last but not least, you will have a social media following before the opening day, which means that you will not be marketing from scratch.
Conclusion
The idea of opening a barbershop quartet is a feasible one for most budding entrepreneurs, but it’s not a business that’s built on a whim. If you know your numbers before you sign a lease, negotiate where you can, and get started on the lean side, you have the best chance of getting through the initial months. When you have enough chairs and enough clientele, you’ll see the investment pay off a lot of times.
Frequently Asked Questions
Is it cheaper to buy an existing barber shop instead of starting from scratch?
In many cases, yes. When purchasing an established shop, the renovation work, furnishings, and even the clientele may already be done, and you will pay a premium for that goodwill, but your up-front cost may be significantly lower.
Is it possible to have a barber shop for less than $20,000?
If you’re using a single chair in an existing business, it’s possible. The benefit of this is that you can save a ton of money and get your clientele before you invest in your own location.
What is the expected time of profit?
It takes most new barber shops 6 months to a year to become profitable, depending on the location, the marketing, how fast the clientele increases, etc. One of the most crucial aspects of planning is to have adequate cash reserves for that increase.
