How Much Does It Cost to Start a Barbershop in North Dakota?

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Starting a Barbershop in North Dakota typically costs between $12,300 and $143,500, with a median estimate of $53,300. North Dakota’s cost of living is 9% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in North Dakota costs $135 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 North Dakota?

Low

$12,300

Medium

$53,300

High

$143,500

National average: $15,000 – $175,000

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Startup Cost Calculator

Barbershop in North Dakota

Budget:

Shop Space Lease & Build-Out

$20,500

Barber Chairs & Equipment

$8,200

Barber Tools & Supplies

$2,460

State License & Business Permits

$820

Insurance

$1,230

Booking Software

$656

Marketing & Branding

$2,460

Working Capital Reserve

$8,200

Options

Include 3 months working capital (+$19,680)

Employees:Just Me1–34–10

Startup Costs

$44,526

Monthly Costs

$6,560

First Year Total

$123,246

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Shop Space Lease & Build-Out	$4,100	$20,500	$65,600	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	$2,460	$8,200	$24,600	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	$820	$2,460	$6,560	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	$164	$820	$2,460	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	$410	$1,230	$3,280	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	$164	$656	$2,460	StyleSeat, Booksy, and Squire are popular barbershop-specific booking platforms billed on monthly subscriptions that scale with chair count.
Marketing & Branding	$410	$2,460	$8,200	Instagram transformation content and before/after photos are essential for barbershop marketing.
Working Capital Reserve	$2,460	$8,200	$24,600	Barbershops build loyal clientele quickly — most shops reach break-even within 6-12 months.
Total Startup Cost	$10,988	$44,526	$137,760	Required costs only

Licenses & Permits in North Dakota

General Business License

North Dakota does not have a statewide general business license. Businesses must register their entity with the North Dakota Secretary of State and register with the North Dakota Office of State Tax Commissioner for sales and use tax purposes. North Dakota has minimal business regulation relative to most states. Some cities, particularly Fargo, Bismarck, and Grand Forks, require local business licenses, but many communities have no local licensing requirements.

Industry-Specific Licenses

Food Establishment License — North Dakota Department of Health and Human Services — Division of Food and Lodging
Cost: Varies — contact agency • Renewal: Annual
General Contractor License — North Dakota Secretary of State (registration only, no state license required for most)
Cost: Varies — contact agency • Renewal: Annual
Cosmetology Salon License — North Dakota State Board of Cosmetology
Cost: Varies — contact agency • Renewal: Annual
Real Estate Broker License — North Dakota Real Estate Commission
Cost: Varies — contact agency • Renewal: Annual
Child Care Center License — North Dakota Department of Health and Human Services — Early Childhood Services
Cost: Varies — contact agency • Renewal: Annual
Commercial Pesticide Applicator License — North Dakota Department of Agriculture
Cost: Varies — contact agency • Renewal: Annual
Retail Liquor License — North Dakota Office of the Attorney General — Alcoholic Beverage Licensing
Cost: Varies — contact agency • Renewal: Annual
Oil and Gas Operator License — North Dakota Industrial Commission — Oil and Gas Division
Cost: Varies — contact agency • Renewal: Annual

Home-Based Business Rules

Home-based businesses in North Dakota face minimal regulation in rural and unincorporated areas, which represent most of the state's land area. Fargo, Bismarck, and other cities regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. North Dakota's small-town culture generally supports home-based businesses. The state's cottage food law supports home-based food production and direct consumer sales subject to a state-defined annual cap.

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 North Dakota Compares to Neighboring States

North Dakota is one of the more affordable states for launching a Barbershop, with a cost-of-living index of 91.1 (national average is 100). Compared to neighboring Minnesota ($61,100 median startup cost), North Dakota offers lower costs for a Barbershop.

State	Est. Cost	LLC Fee
North Dakota (current)	$53,300	$135
Minnesota	$61,100	$155
South Dakota	$53,950	$150
Montana	$63,050	$35

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 North Dakota barber license from the North Dakota Board of Barber Examiners before cutting hair
2
Register your Barbershop as an LLC with the North Dakota Secretary of State ($135 filing fee)
3
Pass the North Dakota 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 North Dakota 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 North Dakota.