If you're a skilled and passionate barber who wants to build their own brand, you've come to the right place.  

Building a company from the ground up is expensive in any industry, including barbering. Education, licensing, equipment, rental space – the costs add up fast, especially when it's all necessary to open your own spot.  

So, how much does it cost to start a barbershop? Read on to do a deep dive into all the startup costs so you can make a financial plan or your business like a pro.   

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How to Start a Barbershop: Licensing Requirements  

Before you can start snipping in your very own shop, you need a license, which is one of the main requirements to open a barbershop.  

In most states, you'll need to complete a specialized barber training program before getting licensed. Barber school is expensive, often costing between $10,000 and $20,000. These educational programs teach valuable concepts like scissor techniques, haircut styles, shaving, skincare, beard trimming, business structure and management, and more.  

This education equips you with the knowledge needed to ace your local licensing exam. Professional barber exams typically cost between $100 and $200 to write the test, followed by a $20-$200 licensing fee once you pass. Barber licenses require regular renewal every couple of years. When you renew your license, you must pay another licensing fee. In some cases, there’s also an application fee, which is typically under $100.  

The cost of getting licensed varies widely depending on where you live, so review the guidelines of the state where you plan to open your shop.  

Barber Expenses List: 8 Barbershop Expenses 

Understanding the basics of owning a barbershop – and how much these basics cost – will help you budget and prepare to make your dream a reality. 

Here's a list of eight common one-time and monthly expenses for barbershops:  

1. Leasing or Purchasing the Perfect Space

Finding the perfect spot for your new barber business is exciting, but it can be expensive. Renting a place is a flexible option with a very low upfront cost. But if you can afford to buy, you won’t be at risk of getting priced out or needing to relocate for other reasons, so consider investing in a space if you can. Plus, landlords might limit how you customize your space, which is another reason buying could be better.

Factor monthly rent or mortgage payments into your budget, as well as any potential renovation costs. That includes decor, chairs for the waiting area, art you want to hang on the walls – any design elements that make the shop feel like it’s really yours. 

Choosing a suitable space can make or break your business in terms of budgeting and attracting clients, so do your research and take your time selecting.  

Average cost: Varies based on location with a national average of around $35 per square foot. In states like Utah, you’ll pay about $25 per square foot, but in New York or California you can expect to pay $30-50 per square foot. You’ll likely need several hundred dollars at minimum to put down a deposit for a lease. If your salon is 2,000 square feet, you’re looking at $50,000-100,000 per year in rent.

2. Paying Utilities  

Don’t forget about utilities! Electricity, water, and internet are all vital to operating your barbershop. You'll have to set them up during move-in and pay them on an ongoing basis. Research average utility costs in your area and include them in your monthly budget to avoid being surprised when it comes time to pay the bills. 

Average cost: Varies based on location and usage – check averages in your local region to calculate your estimated utility costs. Services like hydro or water vary by state, and internet plans can be anywhere from $50-300/month, and the average commercial building consumes about 22.5 kWh per square foot each year.

3. Buying Essential Equipment, Barbering Tools, Products, and Supplies  

Equipping your barbershop with everything it needs is a non-negotiable expense, from trimmers to grooming and hair care products. The following items are essential for barbers:  

• Barber chairs ($300–1,000+)
• Clippers ($50+)
• Scissors ($20–70+) 
• Straight razors ($20–60+) 
• Mirrors (Varies. Hand mirrors start around $8, but wall mirrors will be in the hundreds.)
• Towels ($6+)
• Capes ($15+)
• Cleaning products (Varies)
• Shampoos (Varies)
• Conditioners  (Varies)
• Styling products  (Varies)
• Combs ($5–20)

4. Hiring New Barbers and Staff 

Hiring skilled barbers and other team members is the only way you’ll achieve success, so it’s important to scout for good talent. It also means you’ll want to pay competitve rates to attract great team members, and potentially cover benefits, bonuses, and training costs. 

Hiring the right team helps your barbershop provide a superior customer experience and is definitely worth the cost – you just need to plan accordingly.   

Average cost: $52,123/year, but varies based on location. In Washington, the average is the nation’s highest at just over $60,000/year, with Florida barbers averaging the least, at $37,344/year.

5. Creating a Website 

A professional website is a must-have for barbershops because it helps current and potential clients find you online. It will also allow clients to book appointments 24/7 if it’s integrated with your booking system. 

GlossGenius' Custom Website Builder can help you create a user-friendly, modern site to help you stand out in a crowd. Our sites allow you to showcase your services, portfolio, and team members. They also have booking pages built-in to make scheduling appointments quick and easy for you and your clients. 

Average cost: For a website builder like GlossGenius or Squarespace, prices start around $24/month. Non-coding website builders generally range from $100-500/month. The price for a custom site by a web developer starts around $1,000. There could be potential upkeep costs not included in these estimates. 

6. Marketing and Advertising Campaigns  

Add traditional advertising campaigns to your budget. This is what you need to attract customers in the area and promote your services. You might consider:

• Print ads ($50-1,000+)
• Social media promotions ($100+/month)
• Local events (Varies based on your local market.)

For example, you could run a contest on your shop’s Instagram page, asking followers to like the post and follow you for the chance to win a free haircut. If you want more eyes on your post about the promo, you can pay to “boost” it. These types of promos can be great for new business but you just want to make sure you have enough funds set aside to pay for it and the free cut you’re offering.

7. Paying for Credit Card Fees 

Credit card processing fees are an unavoidable expense. Every time a client uses a credit card (including mobile wallets), you have to pay a processing fee for the transaction. These fees can add up over time so it’s important to research how much POS systems charge for payment processing before picking one. 

Save on credit card processing fees with GlossGenius' Point of Sale (POS) system. While other payment systems charge add-on fees based on the number of transactions you process or the client’s payment type, GlossGenius will only charge you a flat 2.6% rate — on ANY transaction. Yay for no hidden fees! 

Average cost: 2.6% and higher, depending on your provider and payment processing system. 

8. Barbershop Software

Running a successful barbershop requires efficiently managing calendars, staff schedules, and payroll. Comprehensive software solutions streamline these tasks, and some even offer additional services like website creation. 

GlossGenius is an all-in-one platform that does it all. With us, you can manage appointments, schedules, and Payroll seamlessly, ensuring your talented team gets paid on time. Plus, our tools allow you to build a professional website and handle all payment transactions effortlessly. 

Average cost: $24–300+ per month. 

Sign up for a 14-day free trial with GlossGenius!  

Owning a Barbershop: 7 Ways to Reduce Costs 

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Running a successful business requires financial savviness. Here are seven ways to spend smarter and save money so you can grow your operation:  

1. Understand Your Costs and Have a Budget 

If you want to stay on top of your finances, you need to know exactly where the money goes. Create a detailed budget that includes every single expense, including rent, utilities, staff wages, and supplies. Regularly review your budget and track all spending. Chances are, you'll be surprised how you spend your hard-earned income every month. Use this information to identify where to cut costs.   

2. Buy Used or Discounted Equipment

Buy used or discounted barbershop equipment instead of splurging on brand-new stuff. Much of what you'll secondhand find is in excellent condition, so why spend the extra money? Equipping your shop without breaking the bank leaves more funds for other must-buys.  

High-quality barber chairs, clippers, and other tools are available at secondhand shops and online hubs like Facebook Marketplace, Salon Equipment Warehouse, or Shop Salon City. 

3. Try DIY Renovations like Painting Yourself 

Not every renovation requires hired help, and the DIY approach saves money and lets you add a personal touch to your shop. Plus, small changes make a huge difference here. A fresh coat of paint can make your location look brand new, and it's not expensive. You can also DIY budget-friendly decor like basic shelving, hanging art in frames from Walmart or IKEA, and adding plants or funky items you find at a thrift store. 

4. Implement Cost-Effective Marketing Strategies 

Use affordable marketing strategies to attract new customers. High-impact, low-cost methods like text messages, emails, and reviews will help you maximize your reach and grow your business without overspending

GlossGenius's all-in-one platform offers built-in Marketing, including tools to send texts and email campaigns to current and potential clients based on visit history, past product purchases, and more. Sending messages like this is a cost-efficient way to share promotions, updates, or personalized birthday wishes, all of which build relationships with customers. 

We'll also automatically remind clients to leave a review on Google or your website right after their appointment. Reviews on your website add important social proof for prospective clients who are looking around on your website. They can also help you reach a broader audience by improving your visibility on search engines and review sites like Yelp.  

5. Optimize Downtime 

If you have downtime between appointments, make the most of it by having team members clean, pack orders, or prepare for the next busy period. A clean shop makes an excellent impression on clients, especially first-timers, which encourages repeat business and even drives sales. Plus, it keeps your employees busy when they’re on the clock and takes some tasks off your to-do list.

6. Reduce Overstaffing and Retain Current Staff 

Schedule your team carefully based on your shop's slow and busy times throughout the week. By not overstaffing, you avoid paying more in wages than you need on any business day.  

Use GlossGenius's Scheduling Software to manage team bookings and check on scheduled appointments from any device. You can keep an eye on the calendar to make sure you always have the right amount of employees working.  

It’s also important to retain your top-notch team, since hiring and training new employees is costly. To do this, create a positive work environment and offer incentives like regular bonuses and paid time off (PTO) to show team members how much you value them and their expertise. Evaluate their pay on a quarterly basis to make sure you’re keeping up with industry norms.

7. Examine Your Inventory 

Review your inventory regularly to avoid overstocking, which means you’re paying to purchase and store products that aren’t selling. Holding onto that stock get expensive.

GlossGenius' Inventory Management feature turns inventory into profits instead of costs by tracking items automatically, improving the client purchasing experience and revealing which products are the bestsellers so you know what to reorder and what to discontinue. 

Optimize Your Barbershop Business with GlossGenius 

Starting a business involves careful planning and budgeting, and GlossGenius's barber software supports you every step of the way. On top of appointment scheduling and management, website building, marketing, POS, inventory and staff features mentioned in this article, GlossGenius can also help you manage your business with extensive analytics and expense management tools. Check out the articles below and in our resource center for more info on how to start your barber shop.

Sign up for a 14-day free trial with GlossGenius!  

Ready to open the business of your dreams? Sign up for a free 14-day trial with GlossGenius so we can help you get started today.