How Much Does It Cost to Start a Barbershop in Tennessee?
Starting a Barbershop in Tennessee typically costs between $13,800 and $161,000, with a median estimate of $59,800. Tennessee’s cost of living is 8% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Tennessee costs $300 to file. Most barbershop businesses take 2-4 months to launch.
Last updated: March 2026
How Much Does It Cost to Start a Barbershop in Tennessee?
Low
$13,800
Medium
$59,800
High
$161,000
National average: $15,000 – $175,000
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Barbershop in Tennessee
Options
One-Time Costs
$49,956
Monthly Costs
$0
First Year Total
$49,956
Full Cost Breakdown
| Cost Category | Low | Medium | High | Notes |
|---|---|---|---|---|
| Shop Space Lease & Build-Out | $4,600 | $23,000 | $73,600 | 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 | $2,760 | $9,200 | $27,600 | Takara Belmont and Belvedere barber chairs cost $800-$3,000 each. Vintage chairs from $300-$2,000 resale add character. |
| Barber Tools & Supplies | $920 | $2,760 | $7,360 | Wahl and Andis professional clippers cost $80-$200 each. A complete barber kit runs $500-$1,500. |
| State License & Business Permits | $184 | $920 | $2,760 | Barber licenses require 1,000-1,500 hours of schooling in most states. Establishment license costs $50-$300. |
| Insurance | $460 | $1,380 | $3,680 | Barber insurance typically costs $500-$1,500/year through ABMP or independent insurers. |
| Booking Software | $184 | $736 | $2,760 | StyleSeat, Booksy, and Squire are popular barbershop-specific booking platforms at $30-$100/month. |
| Marketing & Branding | $460 | $2,760 | $9,200 | Instagram transformation content and before/after photos are essential for barbershop marketing. |
| Working Capital Reserve | $2,760 | $9,200 | $27,600 | Barbershops build loyal clientele quickly — most shops reach break-even within 6-12 months. |
| Total Startup Cost | $12,328 | $49,956 | $154,560 | Required costs only |
Licenses & Permits in Tennessee
Licenses & Permits in Tennessee
General Business License
Tennessee requires most businesses to obtain a Standard Business License or Minimal Activity License through the Tennessee Department of Revenue. A Standard Business License is required for businesses with annual gross receipts over $10,000, while a Minimal Activity License covers businesses with receipts between $3,000 and $10,000. Businesses must also register their entity with the Tennessee Secretary of State. Tennessee has no state income tax on wages, which is a significant business advantage. Individual cities and counties also issue local business licenses.
Industry-Specific Licenses
- Food Service Establishment Permit — Tennessee Department of Health — Division of Environmental HealthCost: $50-$400 • Renewal: Annual
- Contractor License — Tennessee Board for Licensing ContractorsCost: $150-$700 • Renewal: Annual
- Cosmetology Salon License — Tennessee Board of Cosmetology and Barber ExaminersCost: $50-$150 • Renewal: Annual
- Real Estate Broker License — Tennessee Real Estate CommissionCost: $100-$300 • Renewal: Annual
- Child Care Agency License — Tennessee Department of Human Services — Child Care ServicesCost: $50-$200 • Renewal: Annual
- Wine and Beer License — Tennessee Alcoholic Beverage CommissionCost: $200-$3,000 • Renewal: Annual
- Talent Agency License — Tennessee Department of Commerce and InsuranceCost: $200-$800 • Renewal: Annual
- Medical Practice License — Tennessee Board of Medical ExaminersCost: $150-$500 • Renewal: Annual
Home-Based Business Rules
Tennessee municipalities regulate home-based businesses through local zoning ordinances. Nashville-Davidson County allows home occupations in residential zones with restrictions on customer visits, commercial signage, and non-resident employees. Tennessee's many rural communities are generally very accommodating of home-based businesses. Tennessee's cottage food law, with its high $100,000 annual sales cap, is particularly supportive of home-based food businesses.
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 Tennessee Compares to Neighboring States
Tennessee is one of the more affordable states for launching a Barbershop, with a cost-of-living index of 92.1 (national average is 100). Compared to neighboring Virginia ($67,600 median startup cost), Tennessee offers lower costs for a Barbershop.
| State | Est. Cost | LLC Fee |
|---|---|---|
| Tennessee (current) | $59,800 | $300 |
| Virginia | $67,600 | $100 |
| North Carolina | $62,400 | $125 |
| Georgia | $61,100 | $100 |
| Alabama | $57,200 | $200 |
| Mississippi | $55,250 | $50 |
| Arkansas | $57,850 | $45 |
| Missouri | $59,800 | $50 |
| Kentucky | $59,800 | $40 |
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 Tennessee barber license from the Tennessee Board of Barber Examiners before cutting hair
- 2
Register your Barbershop as an LLC with the Tennessee Secretary of State ($300 filing fee)
- 3
Pass the Tennessee 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 Tennessee barber licenses before their first cut
Frequently Asked Questions
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Start a Barbershop in Other States
See the national overview for Barbershop or browse all businesses you can start in Tennessee.