Do you have a passion for cutting hair? If you’ve ever wondered how to open a barber shop, you’re in the right place.

We interviewed Bernard Franklin, the owner of Busy B’s Barbershop. His shop now makes $130K in revenue per year. We’ll share strategies and tips to start a barbershop, lead a team, get customers, and provide customer service that keeps them coming back.

Get ready to learn how to open your own barber shop business. You can either keep reading or click on any of the links below to jump to the section that interests you:

What is a barber shop?

A barber shop focuses on cutting and trimming men’s hair, necks, and beards. A barber shop owner will normally be male dominated. Salons, meanwhile, tend to cater more to women’s styles, hair dye, and eyebrow waxing.

Skill and customer service make a huge difference. Bernard told us:

Learn About the Industry

The barbershop industry is expected to grow 1.3% per year between 2023 and 2026, which is slower than hair and nail salons at 2.5%. Barber shops may see profits decline, but with an 18% profit margin, they will fare much better than hair and nail salons. Salons are currently in a period of declining profits.

When classifying your hair business, you will have better loan opportunities if you classify it as a barbershop rather than as a hair salon.

Are barbers required to go to school?

Every state requires barbers to get a cosmetology or hair-cutting license. In most states, you will have to go to a school and meet a minimum number of experience hours, but some states allow you to do an apprenticeship under successful barbers. Check your state’s barbershop requirements.

How much does a barber make?

According to the U.S. Bureau of Labor Statistics, the average barber makes $36,150 per year, or $17.38 per hour. Top barbers often earn over $61,090 per year in wages.

The average small business owner will also get an extra $7,446 in profit. That means when you start a barbershop, you should expect to make between $42,000 and $61,000 in take-home pay.

Based on what Bernard told us, he earns around $54,000 after taxes while running at 50% capacity. Assuming his chairs are rented year round, his maximum income would be around $80,000 without expanding his offerings.

How much to open a barbershop?

The costs to open a barbershop are normally between $50,000 and $150,000. Your location, licensing fees, inventory, and business insurance costs will impact the final amount.

Just because the costs to start a barbershop business are often that high doesn’t mean you can’t do it for less. Bernard told us:

Case Study: Busy B’s Barbershop

Bernard grew up around barbers before joining the Navy. After the Navy, he went into network marketing before going to Bellingham Cosmetology School.

His military and marketing experience made starting a barber shop way easier. He heavily focuses on being active in the community and providing a quality service.

Check out our interview with Bernard below:

How to Open a Barber Shop

To open a barbershop, you’ll need to:

1. Write a barber business plan.
2. Fund your barber shop.
3. Get barber shop products and equipment.
4. Choose a barbershop name.
5. Start your barbershop business legally.
6. Prepare to start barbershop operations.
7. Create and implement a marketing strategy.

Step #1. Write a Barber Business Plan

Having a business plan is beneficial for opening a barber shop. At a minimum, you’ll want to plan for startup costs, ongoing costs, marketing, and managing your operations. Check out our blog about one-page strategic plans, or watch the interview with Mike Andes about writing business plans:

Step #2. Fund Your Barber Shop

Most business owners will use one of the following strategies for opening a barbershop:

• Using personal funds or personal assets
• Borrowing from family or friends
• Finding a business partner
• Applying for government grants or loans

Check out the free courses on financial strategy and funding programs from the Small Business Administration (SBA). Alternative sources of funding include:

• Crowdfunding
• Credit cards
• Home equity loans
• Business or personal loans

Retirement funds (rollover for business startups)

Step #3. Get Barber Shop Products and Equipment

Before barbers open their doors, they need certain pieces of equipment. Bernard suggests getting at least the following items:

• Edger: $100
• High-quality shears: $250
• Two-speed trimmer: $250
• Detachable blades: $25 to $50 each

He also suggests buying Andis, Oster Pro, or BaBylissPRO tools.

Step #4. Choose a Barbershop Name

You’ll need a barbershop business name before you open your doors. Make sure your business name is simple and easy to remember. It should also be available as a domain name and on social media.

Try our business name generator for inspiration. When you find a name you like, just click on it to buy the domain on DreamHost.

Step #5. Start Your Barbershop Business Legally

You need to start your barbershop business legally by completing the following tasks:

• Get your barber license.
• Form a legal business entity.
• Obtain an employer identification number.
• Get state business licenses and permits.
• Set up tax filings and withholdings.
• Put up work posters.
• Take out unemployment insurance.

You might want to hire a local attorney. They’ll help you get your paperwork in order so that you can focus on other aspects of how to start a barbershop.

Each location has different licenses, permits, or tax forms required. Use the SBA’s license and permits page to identify what your barber shop or hair salon needs.

Next, let’s look at some of the barber shop licenses you’ll need when you start your new business.

Get Your Barber License

You need your barber license to become a barber. Getting your license normally requires:

• Proof that you completed schooling or an apprenticeship
• 1,000 to 4,000 hours of experience
• Passing written and practical exams
• Registration fees
• A background check (sometimes)

Form a Business Entity

Owning a barbershop means that you’ll need to form a business. There are a few ways you can go:

• Limited liability company (LLC): As long as you keep your business finances in a separate bank account from your personal finances, an LLC will provide liability protection when opening a barbershop.
• Corporations: Barbershop franchising companies or schools may want to start a corporation. Corporations can sell shares but have to comply with far more state and federal regulations.
• Sole proprietorship: This is the easiest way to start a barbershop, but a sole proprietorship doesn’t protect the owner from personal liability.
• Partnership: If more than one person will own a barbershop, you might want a partnership if you can’t get a limited liability company.

Check your state requirements for LLCs.

Apply for an EIN

Every business entity operating in the United States needs an employer identification number. You’ll use it to apply for business loans, bank accounts, and business credit cards.

Plus, it ties your business payments to the employee and independent contractor state and federal taxes. Apply for your EIN through the Internal Revenue Service website.

State Business Licenses and Sales Tax Permits

Most states require business licenses and sales tax permits. The states that don’t have sales taxes are:

• Alaska
• Delaware
• Montana
• New Hampshire
• Oregon

Additionally, local governments can levy a sales tax. You may have other taxes that you need to file such as state income taxes or higher property taxes. Make sure to also find out if local businesses need any licensing from the county or municipality.

Avalara has a guide on sales taxes. Check it out, but remember that the best person to advise you on taxes is a local accountant who specializes in business taxes.

Step #6. Prepare to Start Barber Shop Operations

You want to complete the following tasks before you start your own barbershop business:

• Get a business bank account.
• Apply for business credit.
• Get business insurance.
• Start business accounts with supply stores.
• Find a business location (and remodel it if necessary).
• Start marketing.

Let’s look at each of these in more detail.

Get a Business Bank Account

You’ll find it much easier to run a successful business if you have a separate business bank account. Separating your personal and business assets is required for liability protection under an LLC or corporation. It will also simplify the process of getting business credit.

Consider getting a business bank account with a small bank or credit union because they tend to have the highest credit approval rates. Learn more about business bank accounts.

Apply for Business Credit

If you want business credit, consider talking to a bank or credit union. You may also qualify for a personal loan that you can use for business expenses. Personal loans from Borrow Nation lenders range from $1K to $50K.

This can be particularly helpful if you’re buying a building and all the equipment.

Get Business Insurance

Businesses have a lot that can go wrong, so be sure to protect your investment with business insurance. You’ll want at least general liability insurance, but you should consider other coverage like professional liability. Check out Simply Business insurance for barbers. 

Start Business Accounts With Supply Stores

You can get most supplies for a barbershop on Amazon. They even offer special pricing for businesses. 

Most hairstylists I know suggest going to Sally Beauty Supply if you want the best products for a barbershop business and you can’t wait. Sally Beauty Supply has an affiliate program where you can earn 5% on each sale to your customers.

Find a Business Location

Bernard told us:

There are a lot of ways you can find a space depending on whether you want to rent a chair, a barber suite, or an entire commercial space. Try checking with barber shops in your area or looking on social media. If you want to rent a larger space, you may have better luck with a broker or real estate agent.

The National Association of Barbers has a great blog about choosing locations and negotiating rental costs. As you look for places, don’t forget that you’ll have to abide by building codes, which will add to the price of the location.

Construction costs can add up quickly, especially if the local government authority has building and health departments you must comply with.

Step #7. Create and Implement a Marketing Strategy

You’re going to want to market your barber shop, and there are a ton of approaches to take. Bernard likes traditional word-of-mouth marketing, but he also uses other marketing strategies.

Start by creating a marketing plan. From there, you can set up a website and social media accounts to establish your online presence.

When Bernard first started, he would give each of the barbers 25 to 50 business cards to hand out. They offered a free clip for every person who referred five appointments. He called this strategy “armed and dangerous.”

Create a Marketing Plan

You need to create a marketing plan to help guide marketing decisions for your barbershop business. A marketing plan is simply a strategy for how you will drive more customers to your store. Market research helps to establish:

• Your target market
• Your communication channels with potential clients
• Your customer service style
• Ways to turn first-time customers into returning customers
• Ways to convert your best clients into referral sources

Get Some Business Cards

Business cards play a critical role in every small business. Some ways you can use business cards include:

• Giving them to customers
• Handing them out to people you meet
• Entering business card drawings at restaurants
• Sharing cards at other businesses
• Placing magnetic cards in strategic places

Canva is a really easy way to design and print business cards. You can even add a QR code that sends customers to your website or booking page.

Launch a Website

An attractive and functional website tells people who you are and that you’re capable. Make sure the website has payment and booking functionality to make your life easier. You can also sell products on your site to make it simpler for customers to restock on products they like.

Check out our blog about building a website, then start a website on SquareSpace or WordPress.

Marketing With Social Media

Something we didn’t talk about in our interview with Busy B’s is social media, but Bernard is doing it the right way. It’s an important part of your marketing mix. Let’s talk about some of the main platforms and what makes them unique:

• Facebook: Right now, professional marketers encourage Facebook groups because of lower competition. Many business owners have moved to other platforms, which makes Facebook low-hanging fruit.
• Instagram: Everyone is here. Instagram can be highly profitable, and you can link Instagram and Facebook to share or advertise on both channels. However, the competition is high. Cut hair, take a picture for your client on their phone, and ask them to tag you. Boom! You just got free marketing, built your authority, and potentially earned new customers.
• X: If you are community oriented, this site might be the place for you.
• LinkedIn: You can meet a lot of business professionals on LinkedIn. If you’re skilled at what you do, it’s not hard to get major players in an industry to network with you. You just have to be nice, interact in discussions, and give them a reason to want to respond. More often than not, they will. Avoid sending unsolicited marketing since those messages often get ignored.
• Medium: This is a neat trick. Write a blog, post it on Medium, and link back to your website. Guess what? It has a 94 authority score. If it’s not your highest authority backlink, please let me know what is.
• Linktree: Here’s another neat trick. Use Linktree to share all your socials and web assets in the same place. It’s free, or you can upgrade for advanced features. The best part? It has a 93 authority score.

Those last two tips are so good that even AOL Search and city governments don’t have rankings that high. Here’s proof:

That’s right! I am the three highest ranking backlinks to UpFlip. Even our YouTube channel isn’t considered a more trusted source about our site. It’s a flaw in Google that I hope they won’t catch.

Grow Your Email List

Customer data can help you stay in touch with your clients and potential customers. To accomplish this, you’ll want:

1. A form or online booking system to collect data online
2. An email address
3. Customer relationship management (CRM) software to keep track of clients’ phone numbers, emails, and frequency of booking
4. An email and SMS automation system to help you send standard emails (e.g., “Thank you for booking…”) and confirmation text messages.

Brevo and ActiveCampaign are both useful email marketing CRMs, but there are many more. In addition, you can combine most marketing automation with HubSpot and other well-liked CRM systems.

Running Your Barber Shop Business

You’ll spend most of your time managing your barber shop. Your three main priorities should be:

• Finding new customers for your business
• Retaining customers for your barbershop business
• Renting space to other barbers

Find New Customers

In addition to the marketing we discussed earlier, there are a variety of techniques you can use to get more clients. Bernard told us that his participation in the community helps spread awareness about his business. He also tried a grocery cart campaign for $650 but hadn’t yet decided whether he liked the results from it or not.

Chris Bossio reviewed our interview with Bernard and has some great insights. Check out his review of the interview below:

He has other videos about barbershops too.

Retain Customers for Your Barber Shop Business

Bernard shared tips on how to retain barbershop customers. In addition to offering conveniences like taking appointments, he said:

He also recommends tailoring each interaction to the customer’s personality. Not every customer wants to talk while they’re at the barber shop.

Most importantly, he explained how to handle a customer complaint:

Renting Space to Barbers

A barber shop makes additional revenue by renting stations to barbers. This business structure makes it so that you don’t have employees. To rent stations, you’ll need to:

1. Post the openings on sites that list spaces for rent.
2. Sign a contract with other barbers.
3. Collect daily, weekly, or monthly rent.
4. Add it to your income.

Based on the $40 per seat Bernard charges for a daily rate, he covers his normal business expenses if 11 out of 16 weekly spots are filled each month. With renting, there are also variable costs such as utilities, hair products, and payment processing fees.

Barbershop FAQ

How to open a barber shop with no money

While you can’t start a barbershop without money, you can go to barber school with a Pell Grant or student loans. Go to studentaid.gov to learn more.

You might be able to cover the costs of your equipment, barbershop licenses, and permits if you’re frugal. You aren’t really supposed to use the financial aid for anything except for school and living expenses, but your barbershop setup might qualify as a school expense.

Does a barber need a license?

Yes, all 50 states require a license to cut hair. You can learn more about your state’s barber’s license through NACAMS, the National Association of Complementary & Alternative Medicines. Most states include the barber license in the cosmetology license, which allows you to cut hair, style, dye, wax, and do other jobs that help people create looks they enjoy.

Can you open a barber shop without being a barber?

Yes, owners can get business licenses and permits to open barber shops. However, you can’t cut hair without a barber’s license. You’ll have to hire a licensed barber to actually operate.

Top Influencers

One of the best ways to become a more successful business is to learn from other successful business owners. Some of the best in the barbershop business are:

• Chris Bossio: Check out his YouTube or Tomb45, where he sells his own products and courses.
• Sofie Pok: Check out Sofie’s socials on Linktree.
• John Mosley: He was recognized as the 2022 Educator of the Year by the North American Hairstyling Awards. Check him out!

Besides these three, there are plenty of other awesome influencers out there to learn more about the industry.

How will you start your own barber shop?

We’ve shared the information you’ll need to open a barber shop, including advice from a barber shop business owner who’s already making a great living. We hope it helps you in your goal to become a barber.

Are there other aspects of barber shops, the beauty industry, or other related subjects you’d like to learn more about? What are they? 

We’re here to serve you. Let us know how we can help!