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 $14,850 and $173,250, with a median estimate of $64,350. North Dakota’s cost of living is 1% 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: March 2026

Barbershop startup costs illustration — typical equipment and setup

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

Low

$14,850

Medium

$64,350

High

$173,250

National average: $15,000 – $175,000

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Startup Cost Calculator

Barbershop in North Dakota

Budget:

Shop Space Lease & Build-Out

$24,750

Barber Chairs & Equipment

$9,900

Barber Tools & Supplies

$2,970

State License & Business Permits

$990

Insurance

$1,485

Booking Software

$792

Marketing & Branding

$2,970

Working Capital Reserve

$9,900

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$53,757

Monthly Costs

First Year Total

$53,757

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Shop Space Lease & Build-Out	$4,950	$24,750	$79,200	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	$2,970	$9,900	$29,700	Takara Belmont and Belvedere barber chairs cost $800-$3,000 each. Vintage chairs from $300-$2,000 resale add character.
Barber Tools & Supplies	$990	$2,970	$7,920	Wahl and Andis professional clippers cost $80-$200 each. A complete barber kit runs $500-$1,500.
State License & Business Permits	$198	$990	$2,970	Barber licenses require 1,000-1,500 hours of schooling in most states. Establishment license costs $50-$300.
Insurance	$495	$1,485	$3,960	Barber insurance typically costs $500-$1,500/year through ABMP or independent insurers.
Booking Software	$198	$792	$2,970	StyleSeat, Booksy, and Squire are popular barbershop-specific booking platforms at $30-$100/month.
Marketing & Branding	$495	$2,970	$9,900	Instagram transformation content and before/after photos are essential for barbershop marketing.
Working Capital Reserve	$2,970	$9,900	$29,700	Barbershops build loyal clientele quickly — most shops reach break-even within 6-12 months.
Total Startup Cost	$13,266	$53,757	$166,320	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: $50-$300 • Renewal: Annual
General Contractor License — North Dakota Secretary of State (registration only, no state license required for most)
Cost: $50-$200 • Renewal: Annual
Cosmetology Salon License — North Dakota State Board of Cosmetology
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — North Dakota Real Estate Commission
Cost: $80-$250 • Renewal: Annual
Child Care Center License — North Dakota Department of Health and Human Services — Early Childhood Services
Cost: $50-$150 • Renewal: Annual
Commercial Pesticide Applicator License — North Dakota Department of Agriculture
Cost: $50-$150 • Renewal: Annual
Retail Liquor License — North Dakota Office of the Attorney General — Alcoholic Beverage Licensing
Cost: $200-$1,500 • Renewal: Annual
Oil and Gas Operator License — North Dakota Industrial Commission — Oil and Gas Division
Cost: $500-$2,000 • 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 up to $50,000 annually.

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 close to the national average for Barbershop startup costs, with a cost-of-living index of 99.2. Compared to neighboring Minnesota ($63,700 median startup cost), North Dakota has higher costs for a Barbershop.

State	Est. Cost	LLC Fee
North Dakota (current)	$64,350	$135
Minnesota	$63,700	$155
South Dakota	$63,050	$150
Montana	$68,900	$70

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 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 ($5,000–$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 North Dakota 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 North Dakota.