How To Open a Barbershop: 12 Steps for Small Businesses

Barbering is one of the only creative services that generates repeat business from a mass-market audience. You might only commission one painting or tattoo in your life, but you could get a haircut from the same person every six weeks or so. Extrapolate that out to a wide enough client base, and you have the makings of a truly lucrative business.

Historically, barbershops have also provided important social gathering spaces, which means that opening a barbershop offers the chance to perform a key community function while also earning a reliable income in a creative field. Nowadays, many barbershops cater to both men and women, whether they need a trim or want to try out a completely new style.

Here’s how to open a barbershop:

How to know if you’re ready to open your own barbershop

If you’re an experienced barber considering going into business for yourself, ask yourself the following questions to gauge whether you’re truly ready. First, do you have more clients on your roster than you can currently handle? If you find yourself turning down appointments or handing clients over to other barbers in your shop, there may be enough demand for your services to support a new business.

Next, consider whether you can afford to lose a significant portion of your customers. Even if you have an established and loyal customer base, plenty of people won’t follow you to a new location. You may be ready to go solo if you could lose 50% of your regular clientele and still make ends meet. Consider whether you have the capital to offset empty chairs, too: A six-month cushion covering rent, utilities, and salaries can significantly reduce your risk exposure.

How to open a barbershop

1. Research your target market
2. Obtain your barber license
3. Form and register your business
4. Choose a staffing model
5. Curate products and services
6. Create a financial plan
7. Create a business plan
8. Find your location
9. Purchase supplies
10. Design your space
11. Obtain insurance, licenses, and permits
12. Launch your marketing plan

Successful barbershop business owners are expert stylists and entrepreneurs, but most didn’t start out with both skill sets. Opening a barbershop is about assessing what you know, what you don’t, and how to fill the gaps. Use these 12 steps to get your business off the ground:

1. Research your target market

Market research is the process of gathering information about the consumers and businesses in your industry to learn about your target audience, identify major players, explore relevant industry trends, and uncover any areas of unmet customer need. You’ll use this information to develop your brand positioning, pricing, and marketing strategies.

Business owners use primary and secondary research methods for market research:

• Primary research. Primary research involves gathering your own data. Common tactics include customer interviews, focus groups, and surveys.

• Secondary research. Secondary research relies on data assembled by others. Look for trustworthy sources like government and industry reports, consumer studies, and articles in trade publications.

You can also conduct a competitive analysis, a market research tactic focused on understanding how your competitors differentiate themselves. Go to other barbershops in your area: what are their prices, which demographics do they cater to, and what’s their availability? This can help you determine whether there’s space in the market for a new barbershop and how you can set yourself apart.

2. Obtain your barber license

Although licensing processes vary, every US state requires licensure for individuals who offer barber services. Requirements may include exams, graduation from a barber school, apprenticeship, and continuing education upkeep.

Here’s how to determine your requirements and become a licensed barber in your state:

Locate your licensing body

Use a search engine to identify the entity that manages barber certification in your state (often a board convened under the Secretary of State’s office) and review online materials relevant to your licensure processes. You can also consult the National Conference of State Legislatures’ National Occupational Licensing Database for a state-by-state comparison.

Find a training program

Consult your Secretary of State’s website for a list of accredited schools, keeping in mind that terminology may vary. For example, Massachusetts lists barbering schools under their Division of Occupational Licensing, and Minnesota does so under their Division of Health Licensing’sBoard of Barber Examiners. If your state doesn’t require graduation from a barber school, you can also review the licensing board’s experience requirements to identify qualified apprenticeships or other training pathways.

Choose a program

Compare tuition, class time, total training, graduate job placements, and curriculum to choose a school or an apprenticeship. You’re free to attend a barber school even if your state doesn’t require it, and aspiring barbershop owners can benefit from a formal curriculum addressing marketing and business management best practices.

Take exams

Every US state requires barbers to pass at least one licensing exam after completing training. Consult your state licensing entity’s online resources to identify and register for required exams.

Maintain your license

Review your state’s renewal process, and set calendar reminders to ensure you don’t miss a deadline. If your state requires continuing education credits, identify and schedule options early to avoid any end-of-year crunch.

3. Form and register your business

Name your business, choose a business structure, and legally form your business entity. Asset protection is a key consideration: Barbers regularly see clients in person on business premises, which increases their likelihood of a suit.

Here are three common barbershop business structures:

Sole proprietorships

In a sole proprietorship, you (the proprietor) are the business. You’ll take payments under your own name (or a “doing business as” name) and file taxes using your Social Security number (SSN) instead of an employer identification number (EIN). Although set-up is easy, this business structure offers no legal protection for your personal assets.

Limited liability company (LLC)

Setting up a limited liability company (LLC) is more complicated and expensive than starting a sole proprietorship, but it protects your personal savings by partitioning your personal and business assets. LLC structures also allow owners to choose whether to be taxed as a corporation or as a sole proprietor.

Corporations

Like LLCs, corporations can protect your personal assets. Unlike LLCs, they have shareholders instead of owners or members and are required to pay the working owner (i.e., you) a W-2 salary. If you plan to expand your business to multiple locations or raise money by selling shares to investors, contact a business lawyer to discuss incorporation options.

Once you’ve formed your business entity, register your business with applicable federal, state, and local agencies.

4. Choose a staffing model

Barbershop businesses can hire skilled barbers as employees or rent chairs to independent contractors. Here are the pros and cons of each business model:

• Chair rental. Renting chairs to other barbers can reduce overhead expenses and provide a steady income stream. You won’t need to pay payroll taxes, provide ongoing training, or devote time and money to the hiring process. You’ll also collect rent even when business is slow. Drawbacks include decreased control of the customer experience and a chance that departing stylists will take clients with them.

• Employment. Hiring barbers increases your upfront costs, but it offers the chance to intentionally build and develop your ideal team. It also protects your brand image and allows you to profit directly from successful branding and marketing efforts.

Consider hiring employees in supporting roles, too. Many barbershops employ full- or part-time bookkeepers, administrative assistants, or marketing staff to help them manage client communications, booking requests, billing, and marketing.

5. Curate products and services

Assemble your service menu, prioritizing market needs and your unique interests and skills. You might close a market gap by offering your town’s only eyebrow styling service, respond to local demand for express services with a lunch-hour shave special, or highlight your passion for complicated dye projects with a trio of signature neon style options.

Here’s a list of services you could offer:

• Haircuts

• Color services

• Textured cuts

• Taper and fades

• Brow shaping

• Beard trims

• Mustache consults

• Body hair waxing

• Facials and scalp treatments

Next, build your product collection. Selling products in-store and online can provide a secondary revenue stream, boost brand awareness, and increase foot traffic to your space. It’s also a chance to reinforce your brand image. An upscale, classic barbershop might offer premium wood-handle shaving brushes and boar-bristle beard combs, while an edgy, community-focused shop might sell prints and branded merch featuring designs by local artists. A point-of-sale system like Shopify POS lets you sell items in person, while syncing your inventory and customer information with your online store.

Many shops also stock their preferred haircare product lines. If you have product development experience, you can even consider producing and selling your own line of branded haircare products.

For example, The Ritual, a barbershop, store, and haberdashery in San Luis Obispo, sells premium grooming products, clothes, accessories, and branded merch online and at its physical location.

6. Create a financial plan

A basic financial plan estimates profits, calculates startup costs, and creates a plan to raise the necessary funds. Start by dividing expenses into two categories, upfront costs and ongoing expenses:

Startup costs

• Commercial lease or mortgage down payment

• Equipment and furniture

• Website setup

• Initial branding and marketing expenses

• Initial licensing, permitting, and registration fees

Ongoing expenses

• Tools and supplies

• Insurance premiums

• Marketing costs

• Staff and contractor payments

• Software licenses

• Salaries

• Licensing and permitting renewal

• Continuing education expenses

Next, use market and competitor research to determine the going rate for your services. Multiply the average rate by your expected monthly appointment count to estimate your monthly revenue. You can also calculate profit margins by comparing this number to monthly costs, keeping in mind that you’ll need to pay down startup costs and will owe state and local taxes.

Building a client base takes time, and you may not fill your schedule every month, so cushion your prices accordingly. You can also adopt a different pricing strategy than your competitors. For example, you could choose a premium pricing model and spend more time on each haircut, perhaps adding a complementary wash and using premium products. Or you might decide to maximize volume, specializing in razor cuts with quick turnaround times and targeting busy professionals looking for time- and cost-efficiency.

Fellow Barber, for instance, is a chain of barbershops that offers a premium experience from knowledgeable barbers, including a shampoo and hot towel treatment.

Financial planning is complex, so consider consulting a financial planner who specializes in small businesses for help. A skilled planner can help you brainstorm options, look for ways to reduce expenses, and build a strategy to maximize profits.

7. Create a business plan

Business plans outline your business goals, specify how you plan to achieve them, and include an anticipated launch timeline. They typically include the following sections:

• Executive summary

• Business overview

• Products and services

• Market analysis

• Logistics and operations plan

• Marketing plan

• Financial projections

A thorough business plan contains all the information you need to launch your business. It also charts your path to profitability and can help you secure funding by allowing potential investors, loan officers, or financial advisers to validate your business’s profit potential upfront. You can use Shopify’s free business plan template to structure your plan and streamline the writing process.

8. Find your location

Scout suitable locations for your shop, evaluating the following for each potential space:

• Accessibility. A good location is easily accessible by your target customers. Depending on your city and client base, this can mean it’s in a centrally located neighborhood, on a bus or train line, or has plenty of parking availability.

• Nearby businesses. Proximity to complementary businesses can boost brand awareness and reinforce your brand image. Look for businesses that cater to a similar target audience and generate significant foot traffic, and avoid setting up shop too close to a direct competitor.

• Cost and condition. Compare monthly rent or mortgage payments, estimated utilities, and the cost of any necessary renovations or updates.

• Compliance. Review zoning laws to confirm a location is eligible for registration as a barbershop, and consult your state licensing board to view barbershop-specific facility requirements.

New business owners also need to choose between renting and buying a location. Renting is the lower risk option, but if resale prospects are good and monthly rental costs significantly exceed what you’d pay for a mortgage, buying can save you money in the long term. Use a commercial property rent versus buy calculator to calculate how long you’d need to own a specific location to offset the increased costs associated with downpayments, closing costs, mortgage interest, and upkeep.

9. Purchase supplies

Sign your lease (or make your down payment) and purchase equipment and supplies for your new shop. Here’s what you’ll need:

• Cutting and styling tools. Shears, razor, comb, clippers, hair dryers, etc.

• Protective clothing. Capes, aprons, cape seals, etc.

• Cleaning and disinfecting tools. Neck brush, broom, vacuum, disinfectant, etc.

• Linens. Neck towels, hand towels, cleaning rags, etc.

• Products. Shampoo, conditioner, bleach, toner, dye, aftershave, shave gel—for use and purchase

• Furniture. Barber chairs, wash chairs, cutting stool, waiting room or sitting area furniture, mirrors, and lighting

• Decor and branding. Signage, décor, business cards, and a barber pole

• Operations tools. POS software, terminal, display unit, or an all-in-one system, like Shopify POS

10. Design your space

Plan your space, focusing on design choices that reinforce your brand identity and create a positive customer experience. An appealing storefront can attract new customers, and a welcoming and comfortable environment can encourage repeat business and boost customer satisfaction.

You can hire an interior designer, visit other barbershops in person, or browse spaces online for inspiration. Visit your competitors too, noting what you like about their spaces, what you don’t, and how you’ll provide a differentiated customer experience.

11. Obtain insurance, licenses, and permits

Many states require barbershops to maintain multiple licenses and permits to operate legally. Here’s an overview of common requirements:

• General business operating license. This license authorizes you to do business in a specific jurisdiction. Check with state and local governments to review your requirements and obtain your business license.

• Barber shop license. Contact your state’s barber licensing board to identify industry-specific licenses, apply for necessary shop licensing, and request inspections.

• Permits. Apply for a seller’s permit (or sales tax permit) if required by your state. You might need other licenses for specific activities, such as a building permit for renovations or a sign permit for outdoor advertising.

Some jurisdictions also require barbers to maintain general liability insurance, which covers third-party injury, property damage, reputational damage, and advertising injury. Consult state and local law to determine your obligation, but remember that business insurance can be a worthwhile investment even if you’re not legally required to obtain it. Review insurance types, and contact insurance providers to request quotes and compare plans.

12. Launch your marketing plan

Launch your marketing strategy and open your doors. Here are a few best practices to guide your marketing efforts:

Build a high-quality website

An effective website can help you attract and retain customers: It promotes your business, educates clients about your services, and lets them schedule appointments. Use a website builder to design a beautiful, branded website without hiring a web designer—and choose an ecommerce website builder like Shopify if you plan to sell products or let clients schedule appointments. Appointment booking apps easily integrate with your Shopify website to make your customer experience seamless.

Build your social media presence

Barbering services are creative, visual, and responsive to trends. In other words, they’re a perfect fit for social media marketing. Investing in a social media marketing strategy can be an effective way to promote your business.

Start a loyalty program

A loyalty program can boost repeat business and attract new clients by rewarding customers for activities like making referrals, scheduling regular appointments, or posting about your business on a customer review site.

Provide exceptional customer service

Quality customer service improves customer loyalty and boosts retention rates. It can also help you attract new clients to your business by encouraging word-of-mouth marketing. Best practices include offering multiple ways to contact you and personalizing your marketing efforts.

Launch with style

A grand opening can generate buzz about your new shop. Popular grand opening ideas include hosting a launch party, collaborating with another local business, or soft-launching your business for a few select customers.