How Much Does It Cost to Start a Barber Shop?

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.

 

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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:

Key equipment:

  1. Clippers: $30 to $180.
  2. Scissors: $10 to $120.
  3. Combs: $1 to $25. 
  4. Trimmers: $2 to $10.
  5. Hair dryers: $30 to $250.
  6. Long shaving brush with powder slot: $2 to $6.
  7. Barber pole: $100 to $800.

Care products:

  1. After shave lotions: $7 to $25.
  2. Skincare products: $5.00 to $25.00
  3. Styling gels, wax, and pomades: $3 to $30.
  4. Hair dye/color and creams: $5 to 10.
  5. Hair care products: $9 to $15.
  6. Straight razors: $13 to $25.
  7. Disinfectants: $12 to $25.
  8. Sterilizer: $120 to $350.
  9. Towels: $4 to $35.
  10. Barber cap: $2 to $4.
  11. Cotton wool – $0.5 to $1
  12. Capes: $2 to $25
  13. Neck dusters: $5 to $20

Others:

  1. Barber rotating chairs: $300 to $1000
  2. Large wall Mirrors: $2 to $25
  3. Flat screen TVs: $100 to $250
  4. Sound system: $50 to $150
  5. Lighting: $30 to $150
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