Are you a skilled barber with dreams of owning your barber shop? Are you an entrepreneur looking to diversify your resources into the growing barbering industry? This article contains a detailed breakdown of all the costs required to start a barber shop. Starting a barbershop can be quite expensive and this greatly depends on the type of standard you want to establish. It would require a minimum capital investment of about $120,000 to $200,000. The type of business model, location, the rental`s fee, cost of purchasing equipment & supplies, cost of training, government registration fees, and licenses & permits fees, are some of the factors to be considered when estimating the cost of starting a barber shop.
What are the factors and costs to be considered when starting a barber shop?
- Location: the cost of renting or purchasing a space is dependent on the location of the building. If the building is located in a prime retail area, is easily accessible, and can easily build public awareness of the business, it will be much more expensive.
- Shop size: the size of the barbershop also determines its cost. A barber shop requires space that can accommodate different stations, chairs, sinks, etc.
- Government registration fees: this involves obtaining an Employer Identification Number (EIN). It is free when you register through the IRS.
- Licenses and permit fees, which includes insurance: typically, this costs $1,000 to $3,000, depending on your states requirements and fees.
- Cost of training: a barber training school costs between $5000 to $10,000.
- Cost of labor: hiring a staff would cost between $10,000 to $15,000.
- Marketing cost: running ads for your business would cost about $1,500.
- Operational cost: this includes the first few months rental fees, utility costs, internet costs, insurance costs, etc. This cost is between $5,000 to $30,000.
What are the equipment needed in a barber shop and their estimated cost?
You will need to invest a significant amount in purchasing the equipment required in a barber shop. Some of the essential equipment needed to start a barber shop and their cost includes:
- Clippers: $30 to $180.
- Scissors: $10 to $120.
- Combs: $1 to $25.
- Trimmers: $2 to $10.
- Hair dryers: $30 to $250.
- Long shaving brush with powder slot: $2 to $6.
- Barber pole: $100 to $800.
- After shave lotions: $7 to $25.
- Skincare products: $5.00 to $25.00
- Styling gels, wax, and pomades: $3 to $30.
- Hair dye/color and creams: $5 to 10.
- Hair care products: $9 to $15.
- Straight razors: $13 to $25.
- Disinfectants: $12 to $25.
- Sterilizer: $120 to $350.
- Towels: $4 to $35.
- Barber cap: $2 to $4.
- Cotton wool – $0.5 to $1
- Capes: $2 to $25
- Neck dusters: $5 to $20
- Barber rotating chairs: $300 to $1000
- Large wall Mirrors: $2 to $25
- Flat screen TVs: $100 to $250
- Sound system: $50 to $150
- Lighting: $30 to $150