Barbershop Business Overview

Barbershops offer hair cutting, styling, and grooming services primarily for men and boys. Most barbershops specialize in traditional techniques for cutting hair and maintaining facial hair, though many now include modern styling methods. The barbershop industry combines time-honored practices with contemporary styling preferences, creating spaces where clients receive personalized grooming services. While haircuts remain the primary service, many shops have expanded their offerings to include specialized treatments, product sales, and comprehensive grooming experiences.

Many barbershops thrive on the small-town, close-knit feel they can establish with their customers. Traditionally, shops are small, with just a few barbers on staff. Barbers are known for striking up conversations with their customers as they work, leading to a relationship and familiarity with customers. In many ways, barbers offer their customers an experience rather than just a cut or a shave, and that experience and focus on the customer’s individual style and preferences is what helps barbers earn loyal customers.

There are different ways barbershops set up their operations:

• Single Owner-Operator: A barber who owns and runs their own shop, handling all client services and business management. This setup allows direct client relationships and complete control over service quality and business decisions.
• Multi-Chair Independent Shop: A barbershop with multiple chairs where independent barbers rent space and manage their own client lists. Each barber operates as a separate business, sharing overhead costs and contributing to a collaborative atmosphere.
• Commission-Based Shop: A barbershop owner employs several barbers who earn a percentage of their service revenue. This structure provides stability for barbers while allowing the owner to maintain consistent service standards.
• Franchise Location: An independently owned shop that operates under a larger brand name, following standardized practices and procedures. Owners benefit from established systems and brand recognition while maintaining some operational flexibility.

Industry Summary

The barbershop industry operates under NAICS code 81211—Barber Shops. This classification encompasses establishments that primarily cut, trim, and style men’s and boys’ hair, as well as facial hair grooming services. Barbershops have been around for centuries, and they’re currently enjoying a resurgence in popularity. Following are some highlights in the industry:

Barbershop Industry Size & Growth: The barbershop industry generates $5.8 billion annually. Over the past five years, the industry has shown steady progress, with a yearly growth rate of 1.7%. The industry is projected to continue expanding as population growth drives demand for personal grooming services. The reopening of the economy and stabilizing economic conditions suggest continued growth, particularly as consumer spending on personal services rebounds. (IBISWorld)

Number of Barbershops: Approximately 143,000 barbershops are operating across the country. The industry remains highly fragmented, with no single company or franchise controlling a significant portion of the market. This reflects barbershop businesses’ local, community-based nature, where individual owners and operators serve specific neighborhood markets. Most establishments are independently owned and operated, contributing to the diverse and competitive landscape. (IBISWorld)

Barbershop Average Profit Margin: Profit margins for barbershops typically range between 4% to 10% of total revenue. These margins reflect the balance between service revenue and operating costs, including labor, supplies, and overhead expenses. (IRS)

States with Most Barbershops: The highest concentration of barbershops occurs in densely populated states, with California, Texas, New York, and Florida leading in establishment numbers. These states combine large populations with strong demand for personal grooming services, creating favorable conditions for barbershop businesses. (U.S. Census Bureau)

Also See: Ideas for Naming a Barbershop

How Much Does It Cost To Start a Barbershop?

Starting a barbershop could range from $20,000 to $90,000. The lower end represents a small shop with basic equipment and minimal renovations, while the higher end includes premium chairs and extensive renovations.

Here are the main costs to consider when starting a barbershop:

Location Setup ($8,000 – $40,000): First and last month’s rent plus security deposit starts your lease. Renovations include plumbing for wash stations, electrical work, flooring, and basic interior improvements. Finding a previous salon space can reduce renovation costs.

Equipment ($8,000 – $30,000): Barber chairs, washing stations, mirrors, storage cabinets, and waiting area furniture form your basic setup. Professional equipment includes clippers, trimmers, scissors, sterilization equipment, and styling tools. Quality chairs range from $500-2,000 each.

Shop Supplies ($2,000 – $10,000): Initial inventory includes cutting capes, towels, hair products, cleaning supplies, and basic retail items for resale. Professional cleaning equipment and sanitization systems maintain shop hygiene.

Business Management ($2,000 – $10,000): Point-of-sale system, booking software, and security equipment handle daily operations. Initial marketing materials and signage help establish your presence in the community.

These cost estimates are approximate, and actual expenses will vary based on your business model and scale of operations.

Resources:
American Barber Association
National Association of Barber Boards of America
National Association of Barbers
National Barbers Association
Professional Association for the Beauty Industry