How Much Does It Cost to Start a Barbershop in Minnesota?

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Starting a Barbershop in Minnesota typically costs between $14,100 and $164,500, with a median estimate of $61,100. Minnesota’s cost of living is 6% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Minnesota costs $155 to file. Most barbershop businesses take 2-4 months to launch.

Last updated: May 2026

Barbershop startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Barbershop in Minnesota?

Low

$14,100

Medium

$61,100

High

$164,500

National average: $15,000 – $175,000

Interactive Startup Cost Calculator

Startup Cost Calculator

Barbershop in Minnesota

Budget:

Shop Space Lease & Build-Out

$23,500

Barber Chairs & Equipment

$9,400

Barber Tools & Supplies

$2,820

State License & Business Permits

$940

Insurance

$1,410

Booking Software

$752

Marketing & Branding

$2,820

Working Capital Reserve

$9,400

Options

Include 3 months working capital (+$22,560)

Employees:Just Me1–34–10

Startup Costs

$51,042

Monthly Costs

$7,520

First Year Total

$141,282

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Shop Space Lease & Build-Out	$4,700	$23,500	$75,200	A 4-chair shop needs 600-1,000 sq ft. Classic barber shop aesthetic (brick, dark wood, vintage chairs) drives repeat visits.
Barber Chairs & Equipment	$2,820	$9,400	$28,200	Takara Belmont and Belvedere are the dominant barber-chair brands and are priced as a meaningful per-chair capital purchase. Vintage chair restorations from estate sales add character at materially lower cost.
Barber Tools & Supplies	$940	$2,820	$7,520	Wahl and Andis professional clippers are the workhorse tools for the trade. A complete starter kit per barber — clippers, trimmers, shears, straight razor, strop — is a low-to-mid four-figure investment.
State License & Business Permits	$188	$940	$2,820	Barber licenses require 1,000-1,500 hours of schooling in most states. The establishment license itself is typically a low three-figure cost; the larger gate is the school requirement.
Insurance	$470	$1,410	$3,760	Barber insurance is typically a low-to-mid three-figure annual cost through industry associations like ABMP (https://www.abmp.com/) or independent insurers.
Booking Software	$188	$752	$2,820	StyleSeat, Booksy, and Squire are popular barbershop-specific booking platforms billed on monthly subscriptions that scale with chair count.
Marketing & Branding	$470	$2,820	$9,400	Instagram transformation content and before/after photos are essential for barbershop marketing.
Working Capital Reserve	$2,820	$9,400	$28,200	Barbershops build loyal clientele quickly — most shops reach break-even within 6-12 months.
Total Startup Cost	$12,596	$51,042	$157,920	Required costs only

Licenses & Permits in Minnesota

General Business License

Minnesota does not have a statewide general business license. Businesses must register their entity with the Minnesota Secretary of State and register with the Minnesota Department of Revenue for sales and use tax and withholding tax purposes. Some Minnesota cities require local business licenses, though this varies by municipality. Minneapolis and Saint Paul have their own business licensing requirements. Many business types are regulated through specific licensing programs at the state level.

Industry-Specific Licenses

Food Handler License — Minnesota Department of Agriculture or Local Health Department
Cost: Varies — contact agency • Renewal: Annual
Residential Building Contractor License — Minnesota Department of Labor and Industry
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist Examiners
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — Minnesota Department of Commerce — Real Estate
Cost: Varies — contact agency • Renewal: Annual
Child Care Center License — Minnesota Department of Human Services — Child Care Licensing
Cost: Varies — contact agency • Renewal: Annual
On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local Authority
Cost: Varies — contact agency • Renewal: Annual
Cannabis Retailer License — Minnesota Office of Cannabis Management
Cost: Varies — contact agency • Renewal: Annual
Pesticide Business License — Minnesota Department of Agriculture
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Minnesota municipalities regulate home-based businesses through local zoning ordinances. Minneapolis allows home occupations in all residential zones with restrictions on customer visits, signage, and deliveries. Saint Paul has similar home occupation rules. Minnesota's rural areas are generally very accommodating of home-based businesses. The state's Cottage Food Law specifically supports home-based food production and direct consumer sales.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Barbershop:

Low

$3,000/mo

Medium

$8,000/mo

High

$20,000/mo

Revenue Potential

Annual Revenue Range

$60,000 – $450,000 (annual)

Profit Margins

15-30%

Break-Even Timeline

6-18 months

How Minnesota Compares to Neighboring States

Minnesota is one of the more affordable states for launching a Barbershop, with a cost-of-living index of 93.6 (national average is 100). Compared to neighboring Wisconsin ($59,150 median startup cost), Minnesota has higher costs for a Barbershop.

State	Est. Cost	LLC Fee
Minnesota (current)	$61,100	$155
Wisconsin	$59,150	$130
Iowa	$53,950	$50
South Dakota	$53,950	$150
North Dakota	$53,300	$135

Common Mistakes to Avoid

1
Opening in a location with poor foot traffic — barbershops live on walk-ins plus loyal repeat clients
2
Not building a booking system early — appointment slots are inventory; wasted slots are revenue lost forever
3
Underpricing cuts — pricing meaningfully below the local market floor races to the bottom and undercuts the entire P&L; price for the actual quality of the work
4
Hiring barbers without confirming their state licensure status
5
Not creating a distinct brand and aesthetic that makes clients want to come back and refer friends

Next Steps to Launch Your Barbershop

1
Obtain your Minnesota barber license from the Minnesota Board of Barber Examiners before cutting hair
2
Register your Barbershop as an LLC with the Minnesota Secretary of State ($155 filing fee)
3
Pass the Minnesota health department inspection for your barbershop — includes sanitation practices and blade sterilization
4
Lease your space and outfit barber chairs, mirrors, back bar, wash stations, and waiting area
5
Establish wholesale accounts for clippers, trimmers, barbicide, and grooming product suppliers
6
Get professional liability and general liability insurance for barbershop operations; premiums scale with chair count
7
Set up your booking system — Square Appointments, Booksy, or GlossGenius work well for barbershops
8
Hire licensed barbers — verify all staff hold current Minnesota barber licenses before their first cut

Frequently Asked Questions

Opening a barbershop spans a wide range. A small two-chair shop in modest space can open in the low-to-mid five figures. A four-to-six chair barbershop with premium aesthetic and equipment requires meaningfully more — well into the five to low six figures. A high-end flagship barbershop with private suites and full grooming services requires materially more capital. Use the calculator on this page to model your specific scenario.

Owner take-home varies materially with model and chair count. A four-chair shop running at full utilization grosses meaningful annual revenue, with the owner's net depending on the commission split or booth-rental structure plus rent and supplies. Booth-rental shops where barbers pay weekly rent provide more predictable owner income because the rent is fixed regardless of each barber's daily volume.

You need a state barbershop establishment license, a business license, and all employed barbers must hold valid state barber licenses. Barber licenses require 1,000-1,500 hours of education at a licensed barber school plus a state licensing exam.

Booth rental (a fixed weekly chair fee) provides predictable owner income regardless of individual barber performance. Commission (a percentage split with the house) rewards high performers but leaves owner income variable. Most shops start with commission to control quality, then offer booth rental to top performers who want independence.

A skilled barber sees roughly a dozen clients per 8-hour day, averaging half an hour per cut. At standard service rates, one full-time barber generates a six-figure annual gross. A four-barber shop scales that to a multiple of single-chair revenue.

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Start a Barbershop in Other States

See the national overview for Barbershop or browse all businesses you can start in Minnesota.