Barbershop

How It Works

In the booth rental model, each barber pays you a fixed weekly fee for their station — typically $150–$350/week — and keeps all their own client revenue. The owner earns booth rent passively and optionally cuts their own clients from their own chair. In the commission model, barbers take 45–55% of revenue, providing higher gross but requiring more management. The owner's job shifts to filling chairs, maintaining the shop, and marketing. High-traffic locations (near barbershops, strip malls, urban corridors) are the primary driver of success.

Revenue Range

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 812111 · Barber Shops

Deal Size Distribution

Deal Flow Over Time

Financing Profile

Recent Comparable Deals

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Best For

Real estate investors who want a cash-flowing location-based business; owner-operators who cut hair and want to build a team

Operating Costs

Key costs: rent (15–25% of revenue in a good location), utilities, product/supply costs, insurance, and marketing. In a booth rental model, the owner's operating costs after rent are very low. Net margins of 18–28% are typical; strong owner-operators working their own chair can hit 35%+.