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

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Starting a Barbershop in Minnesota typically costs between $14,700 and $171,500, with a median estimate of $63,700. Minnesota’s cost of living is 2% 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: March 2026

Barbershop startup costs illustration — typical equipment and setup

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

Low

$14,700

Medium

$63,700

High

$171,500

National average: $15,000 – $175,000

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Startup Cost Calculator

Barbershop in Minnesota

Budget:

Shop Space Lease & Build-Out

$24,500

Barber Chairs & Equipment

$9,800

Barber Tools & Supplies

$2,940

State License & Business Permits

$980

Insurance

$1,470

Booking Software

$784

Marketing & Branding

$2,940

Working Capital Reserve

$9,800

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$53,214

Monthly Costs

First Year Total

$53,214

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Shop Space Lease & Build-Out	$4,900	$24,500	$78,400	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	$2,940	$9,800	$29,400	Takara Belmont and Belvedere barber chairs cost $800-$3,000 each. Vintage chairs from $300-$2,000 resale add character.
Barber Tools & Supplies	$980	$2,940	$7,840	Wahl and Andis professional clippers cost $80-$200 each. A complete barber kit runs $500-$1,500.
State License & Business Permits	$196	$980	$2,940	Barber licenses require 1,000-1,500 hours of schooling in most states. Establishment license costs $50-$300.
Insurance	$490	$1,470	$3,920	Barber insurance typically costs $500-$1,500/year through ABMP or independent insurers.
Booking Software	$196	$784	$2,940	StyleSeat, Booksy, and Squire are popular barbershop-specific booking platforms at $30-$100/month.
Marketing & Branding	$490	$2,940	$9,800	Instagram transformation content and before/after photos are essential for barbershop marketing.
Working Capital Reserve	$2,940	$9,800	$29,400	Barbershops build loyal clientele quickly — most shops reach break-even within 6-12 months.
Total Startup Cost	$13,132	$53,214	$164,640	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: $100-$800 • Renewal: Annual
Residential Building Contractor License — Minnesota Department of Labor and Industry
Cost: $150-$500 • Renewal: Annual
Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist Examiners
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Minnesota Department of Commerce — Real Estate
Cost: $150-$400 • Renewal: Annual
Child Care Center License — Minnesota Department of Human Services — Child Care Licensing
Cost: $50-$200 • Renewal: Annual
On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local Authority
Cost: $300-$3,000 • Renewal: Annual
Cannabis Retailer License — Minnesota Office of Cannabis Management
Cost: $2,500-$10,000 • Renewal: Annual
Pesticide Business License — Minnesota Department of Agriculture
Cost: $50-$200 • 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 close to the national average for Barbershop startup costs, with a cost-of-living index of 98. Compared to neighboring Wisconsin ($61,750 median startup cost), Minnesota has higher costs for a Barbershop.

State	Est. Cost	LLC Fee
Minnesota (current)	$63,700	$155
Wisconsin	$61,750	$130
Iowa	$59,150	$50
South Dakota	$63,050	$150
North Dakota	$64,350	$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 — $25-$35 for a quality cut is standard; don't race to the bottom
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 ($5,000–$20,000)
5
Establish wholesale accounts for clippers, trimmers, barbicide, and grooming product suppliers
6
Get professional liability and general liability insurance for barbershop operations ($1,000–$3,000/year)
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 costs $15,000 to $175,000. A small 2-chair shop in modest space can open for $15,000-$35,000. A 4-6 chair barbershop with premium aesthetic and equipment typically costs $50,000-$120,000. A high-end flagship barbershop with private suites and full grooming services can reach $175,000.

Barbershop owners earn $40,000-$120,000+ annually. A 4-chair shop with barbers averaging $400/day in cuts grosses $576,000/year. The owner takes 40-50% after paying barber commissions (50-60%), rent, and supplies. Booth rental shops where barbers pay rent have more predictable owner income.

You need a state barbershop establishment license ($50-$300), 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 ($200-$500/week per chair) provides predictable owner income regardless of individual barber performance. Commission (40-50% to barbers) 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 10-15 clients per 8-hour day, averaging 30-40 minutes per cut. At $35/cut with 12 clients/day, one barber generates $420/day or $100,000+/year. A 4-barber shop can generate $400,000+/year in gross 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.