Opening and running a barbershop has its own unique costs and operating expenses. Like any business, there is some overhead. Understanding the costs of opening a barbershop is essential for planning a successful launch and building a thriving business. These costs might vary slightly depending on which state in which you are operating.
Total Costs
The average cost to open a barbershop is between $50,000 and $150,000 according to data from Profitable Venture. Several factors go into this cost range, including rent, utilities, location, licensing, inventory costs, business insurance, and size of the business.
Other factors which can contribute to the cost of opening and operating a barbershop include property cost, interior renovation and shop design, supplies, equipment and fixtures, and barbering tools.
Business Structure
Before anything, you’ll need to form a business structure. Many barbershops are either limited liability companies (LLCs), sole proprietorships, or partnerships. Each of these structures needs to be set up with your state, and there are annual fees for certain structures, like LLCs or partnerships.
Sole proprietorships are the easiest to set up, but they don’t offer the same business protection as LLCs. Partnerships are set up with two or more people as stakeholders, sharing ownership of the business. Talk to a legal advisor for businesses to get more information and make the best decision for your barbershop.
Location
Location is a big factor in how much traffic you can expect to your barbershop. It should be in a good retail location and easy for people to travel to. Generally, the better the location, the more expensive the commercial lease will be. But if your shop is in a populous area, it may get lots of foot traffic, leading to more clients.
Barbershop Size and Lease Agreement
Commercial space is often leased, unless you have the capital to buy the building outright. Most commercial leases are from $2 to $40 per square foot per month. The rate will depend on what city you are in, and the going market rates for the neighborhood.
The size of your barbershop should include enough room for workstations, barber chairs, sinks, reception and waiting area, and check-in desk. Be sure to calculate how much space you will need and research with a commercial property agency to get an idea of market prices and average shop size in your area.
Licenses and Permits
Before opening a barber shop, you’ll need permits and licenses as per your local regulations. These usually include passing an inspection from the local health department, a business license from the city or county, and any local operating licenses.
Be sure to research this early and plan ahead each year to pay these on time to avoid penalties.
Insurance
Business insurance is something you’ll need to have to cover any workplace or customer accidents. Check around to see what premiums cost in your area with an insurance broker.
Barber School and Licensure
Each state has different regulations for becoming a licensed barber. To become a barber in California, you must complete a state Board approved training program of at least 1,000 hours before you can take your licensure exam. The cost of barber school should be factored into the total cost of opening a barbershop. Many barbers work a few years in another shop or salon before opening up their own barbershop. This allows them to build up a client base before opening their own business.
Labor Cost
A small barbershop you may run by yourself, but if you hire staff for a larger barbershop, it may cost between 5k and 15k to train them. Consider how much revenue you will need to sustain your business.
Want to learn more about Campus?
Our admissions advisors can answer your questions.
Equipment and Supplies
Once you’ve figured out the monthly overhead for your barbershop, you’ll need to invest in equipment, tools, and supplies. Some of the equipment might need occasional repair or upgrade. These are the bare minimum essentials you’ll need for your barbershop.
· Barber chairs
· Reception area seating
· Styling stations, with counters and mirrors
· Hair washing sinks
· Lighting fixtures
· Clippers, scissors, trimmers, combs, razors
· Hair care and grooming products
· Point of sale system
· Brooms and sanitation supplies
Marketing and Advertising
Once your barbershop is open, you’ll want to invest in marketing and advertising campaigns to attract new clients. Some of the ways you can do this are:
· Building and promoting a website
· Sharing hairstyles on branded social media accounts
· Online ads and promotions
· Print advertising
· Signage and promotional ma
· Business cards
It is crucial to measure the return on investment (ROI) you get from each of these efforts so you can determine the most effective marketing channels for your barbershop.
Ongoing Operational Costs
These can include utilities, garbage, water, internet, payment processing, and cleaning. These are ongoing costs that should be accounted for each month.
Conclusion
Remember that the costs for opening and operating a barber shop will vary from state to state and it can depend on the rates for commercial property, licensing costs, shop location, utility choices, and local labor costs.
Be sure to look up rates in your local city and determine how many clients you’ll need to maintain your barbershop.
Become a Barber in About 30 Weeks
If you’re ready to become a fully trained and licensed barber, Campus has a world-class barber training program at our Sacramento college. You can become a barber in the state of California in about 30 weeks. Students will learn a full curriculum of professional skills in barbering, hairstyling, styling facial hair, and business skills like client relations, retail sales, and the fundamentals of salon management.
To take the first step to becoming a professional barber, contact our Admissions specialists, or Request More Information from the Campus education team.