How to Open a Barbershop: The 10 Most Important Steps

Open a barber shop through ten decisive moves that lock cash flow, compliance, space, staffing, and demand into one working system. Start with a revenue-sound business model and a bankable business plan, set a legal structure, register a distinctive business name, secure business licenses and barber shop licenses, verify every licensed barber, negotiate a productive lease, hire staff, standardize systems, and launch with listings on customer review sites. The proof is in the pudding, and execution wins.

Quick list of the 10 steps:

1. Define the business model
2. Write a bankable business plan
3. Pick a legal structure
4. Register the business name
5. Secure business licenses and barber shop licenses
6. Confirm licensed barber compliance
7. Choose location, negotiate lease, plan layout
8. Hiring staff and compensation design
9. Systems, vendors, and SOPs
10. Launch plan and customer review sites

Step 1: What business model fits your barbershop business?

The business model that fits a barbershop business matches chair economics to the target market. Choose commission, chair rental, or hybrid and map services offered to throughput and average ticket. Track utilization and rebook rate to forecast new clients and retention from existing ones.

Revenue mix and capacity

Add beard grooming, shaves, and retail to lift ticket size. Keep occupancy cost near 8–12 percent of sales.

Step 2: Write the business plan

The business plan converts concept into capital, capacity, and campaigns. Lead with a crisp executive summary, defend the local market with market research, and show a 24-month pro forma with upside and downside cases.

Executive summary

The executive summary states positioning, target audience, neighborhood thesis, securing funding, use of funds, and milestones.

Tooling and vendor selection

Tooling and vendor selection defines service flow and the client journey from booking to checkout. Many owners search for a Fresha alternative, like Booksy when comparing fees, data export paths, waitlist and no-show controls, staff app usability, and marketplace reach. Document must-haves, run a short pilot, and lock total cost of ownership before launch.

Go-to-market and discovery hooks

Go-to-market and discovery hooks target comparison and near-me intent to attract customers. Map channel mix across Google Business Profile, TikTok, Instagram, and partnerships to convert first visits.

Financial model and break-even

The financial model sets average ticket, service time, chair count, payroll load, fixed costs, and cash runway. Use accounting software to keep track of receipts, tips, and taxes. Treat the monthly close as a step-by-step checklist.

Step 3: Which legal structure reduces risk and tax friction?

The legal structure that reduces risk and tax friction is often a limited liability company taxed as S-Corp once margins cover officer payroll. Register a federal employer identification number, file any DBA, and protect personal assets with separate accounts.

Ownership and compliance

Document the operating agreement for members, track renewal dates for licenses and permits, and keep general liability insurance and other insurance coverage current.

Step 4: Register a business name and brand assets

Register a business name after clearance across state records, domain, and handles. Build a simple website and a consistent social media presence to match the brand.

Availability and protection

Run a trademark screen, note signage rules, and prepare a short style guide for menus and price boards.

Step 5: Business licenses and barber shop licenses checklist

Business licenses and permits come from state and city government agencies. Expect a barber shop license for the premises and barbering licenses for individual staff, plus a certificate of occupancy, health permit, fire inspection, and sales tax registration.

Health, safety, and local permits

Obtain a building permit for plumbing, electrical, or structural changes. Maintain sharps disposal, chemical handling SOPs, and posted sanitation rules. Keep inspection binders near the front desk.

Startup Costs Snapshot

Step 6: Licensed barber standards and training program

Licensed barber standards and training protect clients and pass audits. Verify every barbering license, track renewal dates, and require sanitation and bloodborne pathogen training.

Credential checks and education

Create an onboarding checklist, an incident log, and mentorship time with senior barbers. Great customer service and clean stations make all the difference.

Step 7: Location, lease, and layout for a high-throughput barber shop

Location, lease, and layout drive client flow and profit. Favor visibility, foot traffic, parking, and existing plumbing, then negotiate exclusivity and assignment options.

Site criteria and space programming

Plan stations, dispensary, POS, comfortable seating, and a waiting zone for clear sightlines. Size HVAC for full occupancy and keep ADA routes open across the shop.

Step 8: How should hiring staff and compensation work?

Hiring staff and compensation work through a clear role ladder and written terms. Choose owner-operator plus juniors or a full team, then set tiers that reward retention and retail.

Workforce model and policies

Write commission or chair rental agreements, tip rules, schedule norms, and a rework policy. Set clear KPIs for employees. Growth follows consistency.

Step 9: Systems, vendors, and SOPs

Systems, vendors, and SOPs stabilize a new business. Standardize cash handling, inventory, sanitation, client data retention, and website updates.

Tech stack and controls

Adopt PCI-safe payments, time tracking, and an analytics dashboard. A simple CRM plus steady marketing efforts supports loyalty programs for target customers and reduces churn.

Step 10: Launch plan and customer review sites strategy

Launch plan and customer review sites strategy fill the calendar and compound ranking. Aim for 50 verified online reviews in 60 days and promote memberships through local businesses and local newspapers to reach new customers.

Go-to-market and retention loops

Use word of mouth marketing, referrals, and reactivation texts at 30, 60, and 120 days. Word of mouth thrives when great service meets a clean, modern shop. Scissors cut hair, not overhead.

Conclusion

Opening success rests on a math-driven business plan, a defensible location, and a compliant framework that protects personal assets. Operational strength flows from licensed talent, documented SOPs, and a tech stack that keeps data clean while providing services at pace. Demand compounds through a focused marketing strategy, a trusted brand, and steady visibility where target customers search.

FAQ

How much does it cost to open a barber shop?

Typical ranges run $50,000–$150,000 for a new shop, driven by buildout, deposits, stations, and working capital. A smaller footprint with careful planning lands near the low end.

How profitable is a barber shop?

Mature shops often target 10–20 percent net margins with labor near 45–55 percent of sales and rent near 8–12 percent. Strong rebook rates, retail, and a clear marketing plan lift performance.

What is required to start a barbershop?

Requirements include a legal structure, business licenses, licenses and permits, barber shop licenses where mandated, insurance, and a lease. Add a booking system, POS, brand assets, and a staff of licensed professionals.

How much does it cost to set up a barbershop?

Setup costs include the lease deposit, buildout, stations, tools, software, permits, and launch marketing. A lean four-chair layout controls spend while the shop builds a base of clients.