Critical
License Required
All barbers must hold a valid Tennessee barber license (1500 hours training + state exam).
Open a Barber Shop in Tennessee
Complete startup guide with TN-specific costs, licensing, and requirements.
Startup cost range — full setup
Barber Shop · TN
$22,500
–
$108,000
lower spend
higher spend
- Difficulty
- Medium
- Profit margin
- 10-20%
Overview
Tennessee has moderate barber shop startup costs close to the national average. Opening a barber shop in Tennessee requires $22,500 to $108,000 in startup capital. The average barbershop profit margin is 10-20%, with well-managed shops achieving higher margins through retail and premium services.
Heads-up
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Important Notices
Notice · WARNING
Competitive Market
There are 155,000+ barbershops in the US. Differentiate with specialty services, atmosphere, or location.
Notice · WARNING
Labor Costs
Staff wages are often 35-50% of revenue. Consider booth rental model to reduce overhead.
Cost breakdown
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Important Notices
| Item | Low | High | Magnitude |
|---|---|---|---|
| Shop Build-out $30-$100 per sq ft | $7,200 | $36,000 | |
| Barber Chairs $500-$2,500 per chair | $1,800 | $9,000 | |
| Equipment & Stations Mirrors, counters, storage | $4,500 | $18,000 | |
| Clippers & Tools Per barber station | $450 | $1,800 | |
| Initial Product Inventory Pomades, oils, aftershave | $1,800 | $6,750 | |
| POS & Booking System Monthly $25-$100 | $300 | $1,500 | |
| Signage & Branding Interior + exterior | $1,350 | $5,400 | |
| Business License Tennessee registration | $100 | $400 | |
| Barbershop Permit Establishment license | $100 | $500 | |
| LLC Filing Tennessee filing fee | $300 | $300 | |
| Insurance Liability + property | $1,350 | $4,500 | |
| Marketing Launch Grand opening, social media | $900 | $3,600 | |
| Working Capital 3 months expenses | $4,500 | $13,500 | |
| Startup range | $22,500 | $108,000 |
The line items above are the main cost drivers, not an exhaustive sum. Several are alternatives rather than additions — a mobile setup or a storefront, a rented kitchen or a build-out — so they are not added together. The startup range is the figure used across this page.
Related guide
Complete Barber Shop startup guide
National costs, equipment lists, pricing strategy, step-by-step instructions.
Read
What's required
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Barber License & Requirements
-
Barber License
$701500 hours required in Tennessee
-
Barber School
$3,000-$15,000State-approved program
-
State Board Exam
$50-$200Written + practical exam
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Barbershop License
$100-$500Establishment permit
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Business License
$100-$400Tennessee business registration
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EIN (Tax ID)
FreeIRS requirement
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Seller's Permit
Free-$50For retail product sales
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Health Inspection
$50-$250Sanitation compliance
-
Certificate of Occupancy
$50-$300Building code compliance
Markets
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Barber License & Requirements
| # | City | Note |
|---|---|---|
| 01 | Nashville Largest market in TN, high demand | Largest market in TN, high demand |
| 02 | Memphis Growing market, strong potential | Growing market, strong potential |
| 03 | Knoxville Suburban area, loyal clientele | Suburban area, loyal clientele |
| 04 | Chattanooga Regional hub, diverse demographics | Regional hub, diverse demographics |
| 05 | Murfreesboro Smaller market, less competition | Smaller market, less competition |
Cross-state
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Barber Shop Costs in Other States
Operator notes
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Tennessee Barber Shop Tips
Tip · 01
Booth Rental Model
Renting chairs to independent barbers reduces payroll costs and management burden while generating steady income.
Tip · 02
Retail Products
Grooming products offer 50%+ profit margins. 40% of clients will buy products when recommended.
Tip · 03
Membership Programs
Monthly memberships ($50-$150) provide predictable income and improve client retention.
Tip · 04
Second-Gen Space
Taking over an existing barbershop saves $10,000-$30,000 in build-out costs and plumbing work.
Tip · 05
No State Income Tax
Tennessee has no state income tax, improving your take-home profits.
Process
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Tennessee Barber Shop Tips
-
Get Licensed
Complete 1500 hours at a Tennessee-approved barber school and pass the state board exam.
-
Write Business Plan
Define your barbershop concept, target market, services, and financial projections.
-
Secure Financing
Arrange $22,500-$108,000 through savings, SBA loans, or investors.
-
Choose Location
Find a high-visibility space with parking in your target demographic area.
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Form LLC
Register your LLC with Tennessee Secretary of State ($300) and get EIN.
-
Build Out Space
Install plumbing, electrical, flooring, and barbershop-specific infrastructure.
-
Obtain Permits
Apply for barbershop license, business license, and schedule health inspection.
-
Purchase Equipment
Buy barber chairs, stations, clippers, and initial product inventory.
-
Hire Barbers
Recruit licensed barbers or consider booth rental model to reduce overhead.
-
Launch Marketing
Build social media presence, partner with local businesses, plan grand opening.
Common questions
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Tennessee Barber Shop FAQ
Q.01 How much does it cost to open a barber shop in Tennessee?
Barber shop startup costs in Tennessee range from $22,500 for a small shop to $108,000+ for a larger, upscale establishment. Major costs include build-out ($7,200-$36,000), equipment ($4,500-$18,000), and working capital.
Q.02 What licenses do I need to open a barber shop in Tennessee?
You need a barber license (1500 hours training + state exam), barbershop establishment license, business license, and seller's permit. All employed barbers must also hold valid state barber licenses.
Q.03 How long does it take to get a barber license in Tennessee?
Tennessee requires 1500 hours of barber school training, which typically takes 6-18 months. After completing training, you must pass the state board written and practical exams.
Q.04 What is the profit margin for barber shops?
Average barber shop profit margin is 10-20%. Solo owner-operators can achieve higher margins (up to 55%) since their labor isn't an explicit expense. Multi-chair shops with employees typically see 8-15% after payroll.
Q.05 Should I use booth rental or hire employees?
Booth rental reduces payroll costs and management burden—barbers rent chairs for $400-$1,200/month and manage their own clients. Employee model gives more control but increases overhead and complexity.
Q.06 How much do barber shop owners make in Tennessee?
Barber shop owners in Tennessee typically earn $50,000-$150,000 annually depending on location, shop size, and business model. Solo operators in busy areas can earn more, while multi-shop owners often exceed six figures.
Related
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