How to Start a Barbershop Business: An 8-Step Guide

A barbershop’s business name is the cornerstone of its brand identity. If a business owner pairs a good business name with a strong barbershop logo, they can have an identity that resonates with clients.

But finding the perfect business name isn’t the easiest thing in the world for a lot of barbers. Naming a business is part art, part science. A good business name is memorable, and it reflects the shop’s style and culture. But the name also needs to uphold any state regulations (which vary from place to place, so a barber will have to check the rules in their area). For one thing, the name needs to be available in the state; it can’t be claimed by another business. Business owners can check availability on their Secretary of State’s website (or a similar office’s website).

If the name passes the state availability check, it’s worth looking to see if there’s a matching domain name available so the website is easy to find online. Matching social media profiles are a huge plus, too.

Many entrepreneurs find that they’ve come up with the perfect name, but they’re not quite ready to use it. If that’s the case (and they don’t want to risk losing the name), they might be able to get a name reservation. Many states allow this, but the exact procedures vary by state.

Need some naming inspiration? A few examples of barbershop business name ideas include:

• The Gilded Razor
• Steel & Suede Barbers
• Anchor Point Barber Co.

A business plan is the tool that turns an idea into a decision. It separates the barbers who think about starting their own shop from those who actually strike out on their own.

But what business plan elements should a barber include in their plan? Every plan varies a little bit, but a good plan will include a description of the shop’s concept, its local competitors (and how it’ll stand out from those competitors), and its target clientele. This market analysis helps the barbershop owner make strategic decisions about where they’ll set up shop and how they’ll get started on a solid foundation.

That said, a huge, vital part of every business plan is the financial analysis. For a barbershop, the financial analysis should estimate the shop’s startup costs, its expected monthly expenses, and its revenue forecast for the first few years of operation. The financial projections should also explain the pricing structure for the shop’s services.

A barbershop’s financial projections are especially important if the owner decides to get financing or bring in a business partner. Lenders and partners will want to see that the shop has a clear path to profitability.

For a lot of barbers, the most intimidating part of starting a barbershop is how much the endeavor will cost. But understanding what to expect can make this much less intimidating.

This guide can’t provide a definitive number for every single barbershop; the startup costs for a barbershop vary widely depending on the shop’s size, location, and how much renovation the physical space needs. For example, a small leased space might not need a lot of renovations, so it might only cost $15,000 to $30,000 to get started. In contrast, a larger, premium location could require $100,000 or more to put in custom features and renovations to make plumbing upgrades. These funds also cover rent deposits, equipment purchases, initial inventory, licensing fees, and marketing.

Many entrepreneurs decide to secure some extra startup capital beyond what they strictly need. These funds can act as a buffer, covering the first few months of expenses while the business builds its client base.

Here are a few different sources business owners can use for financing:

Some entrepreneurs don’t realize that finding a location actually goes hand in hand with some of the licenses and permits that the business needs. Most business owners start with the basics: they need a location with good foot traffic and visibility. The barbershop will likely have more clients in the long run if the shop is accessible and has ample parking.

And then there’s the question of the barbershop itself: the shop needs the right plumbing for wash stations, enough electrical outlets for tools, and enough space for multiple barber chairs. If the space doesn’t have those amenities, the barbershop owner might be able to negotiate a tenant improvement allowance into their commercial lease. A tenant improvement allowance is money the landlord provides to help cover the cost of renovations.

But before the business owner signs their lease, they need to check that the location has a zoning permit for commercial use. If not, the space won’t work.

A later section of this guide will cover business and professional licenses.

Choosing a business structure determines how the business is taxed and what level of liability the owner assumes. Options like sole proprietorships and partnerships exist. That said, most barbershops form a limited liability company (LLC). An LLC creates a legal separation between the owner’s personal assets and the business’s debts. If the business faces a legal claim, the owner’s personal property is generally protected.

An LLC also offers tax flexibility. Profits pass through to the owner’s personal tax return by default. This structure avoids the double taxation that occurs with corporations. That said, the owner can decide to be taxed like a corporation if they prefer. The luxury of an LLC is that the owner can choose which approach works best.

As part of the LLC registration process, a barbershop owner will likely need to get an EIN (employer identification number), a federal tax ID issued by the IRS. An EIN allows a business owner to hire employees and get a business bank account, making it largely essential for a new barbershop.

Legal compliance is the unglamorous part of starting a barbershop business. The specific requirements vary by state and city. That said, there are several licenses that are pretty standard across the board. The cards below describe some of the most common licenses and permits for a barbershop.

Some businesses might need licenses beyond the “common” ones. For example, if a shop is going to sell retail products, then it’ll need a seller’s permit. Shops that offer a “luxury” experience by giving clients beer or alcohol to enjoy during their visit might need permits for serving alcohol. And those are just a couple of examples.

Long story short: a barbershop owner will need to take the time to carefully research which permits and licenses their business needs to get.

Finally, it’s time to get the business up and running. That means the barbershop owner will need to set up their space with all the furniture, tools, and supplies they need to serve clients. It’s also ideal to get online booking software that makes it easy for clients to schedule and manage their appointments.

Primary operational setup tasks include:

• Purchasing barber chairs, wash stations, and reception furniture.
• Stocking professional-grade clippers, shears, razors, and other tools.
• Buying back-bar products like shampoos and styling gels.
• Setting up a point-of-sale system for payments and a booking system for appointments.

The end goal? Creating a functional, inviting experience and environment that clients enjoy from start to finish.

Another part of setting up the shop is deciding on a compensation model for the staff. There are two common approaches: commission-based pay and chair rental. Under a commission model, the shop takes a percentage or “cut” of each haircut. But with chair rental, the barber pays a flat weekly or monthly fee to use the space, more like a contractor than an employee. Either approach is valid, but it’s important to set these terms and clearly communicate them to each barber working at the salon.

Once the shop is operational, a barber’s focus can shift to attracting clients. A strong opening marketing push builds momentum that sustains the business through its early months.

For a barbershop, a good marketing strategy mixes both online and offline tactics. For starters, a simple yet professional website can showcase the shop’s location, hours, services, and pricing. It’s also helpful to create or claim a Google Business Profile so the shop shows up in map searches and general Google searches. Social media profiles are also a great (and often free) way to showcase the barbers’ work and the shop’s atmosphere. High-quality photos of finished haircuts act like a digital portfolio.

But local, in-person marketing can still be helpful. For example, distributing flyers, posting posters in local businesses, or even hosting a grand opening event can help draw in the first wave of customers. Once they’ve visited, implementing a loyalty program encourages repeat visits. Offering a free service after a specific number of haircuts builds long-term client retention. Finally, encouraging satisfied clients to leave online reviews builds trust with potential new customers. A high rating on local search platforms directly impacts walk-in traffic.