Opening a barbershop in Canada can be an excellent business opportunity. The men's grooming market is constantly growing, and more and more men are looking for quality services and professional experience in modern barbershops.
In this complete guide, we explain step by step everything you need to know to open your barbershop in Canada: from legal requirements and necessary permits, to initial investment, strategic location, equipment, and management tools that will help you succeed from day one.
8 Steps to Open Your Barbershop in Canada
Research and Business Plan
Before opening your barbershop in Canada, it's essential to conduct thorough market research and create a solid business plan. This step is crucial to understand the market, identify opportunities, and minimize risks.
Key elements to research:
- Competition analysis: Identify how many barbershops are in your area, what services they offer, their prices, and what differentiates them. Use tools like Google Maps, Yelp Canada, and local business directories to analyze local competition.
- Target audience: Define who will be your ideal client: age, socioeconomic level, preferences, and consumption habits. Use Statistics Canada data to understand the demographics of your area.
- Average market prices: Research how much other barbershops charge for similar services in your area. Review websites, social media, and call directly to get pricing information. Typical prices in Canada range from $20-$50 CAD for a haircut, $30-$70 for haircut and beard trim.
- Service demand: Evaluate if there's sufficient demand in the location you're considering. Consider factors like population density, demographic growth, and market trends in cities like Toronto, Vancouver, Montreal, Calgary, or Ottawa.
- Peak hours: Identify when there are more potential clients available. Observe traffic patterns and consider office and nearby university schedules.
Your business plan should include:
- Executive summary: Overview of your business, objectives, and main strategy. Should be concise but complete, ideally 1-2 pages.
- Market and competition analysis: Information about the local market, competitors, and your position. Includes demographic data, market size, and competitive analysis.
- Marketing strategy: How you plan to attract and retain clients. Includes digital, traditional, and public relations strategies.
- Financial projections: Estimates of revenue, expenses, and profitability. Includes 3-5 year projections, break-even analysis, and cash flow.
- Operations plan: How your barbershop will function day to day. Includes schedules, processes, service policies, and quality standards.
- Organizational structure: Define roles, responsibilities, and staff structure. Includes hiring and development plans.
- Risk analysis: Identify possible challenges and how you'll face them. Includes contingency plans and mitigation strategies.
You can find free business plan templates and useful resources at:
Useful tools for market research:
- Google Trends: To analyze search trends and popularity of terms related to barbershops in your area.
- Yelp Canada: To analyze competitors, read reviews, and understand what clients are looking for.
- Google My Business Insights: To understand local search behavior and client demographic data.
- Social Media Analytics: Instagram and Facebook Insights to understand your target audience and competition.
- Industry Canada: Industry reports and market analysis for the personal care services sector.
Legal Requirements and Permits in Canada
To legally operate a barbershop in Canada, you need to comply with the following requirements. Each has specific processes and processing times that you should consider. Requirements may vary depending on the province or territory where you plan to open your business, as well as the municipality.
Business Registration
You need to register your business structure. In Canada, you can operate as:
- Sole Proprietorship: Simplest structure, you're the business owner. Register with your province/territory.
- Partnership: Two or more people running the business together. Register with your province/territory.
- Corporation: Separate legal entity. Can be incorporated federally (Canada-wide) or provincially.
Where to register:
- Provincial/territorial registry (for sole proprietorships, partnerships, and provincial corporations)
- Corporations Canada (for federal corporations)
Estimated time: 1-5 business days (online) for provincial registration, 1-2 weeks for federal incorporation
Approximate cost: $30-$500 CAD (varies by province and business structure)
CRA Registration (Canada Revenue Agency)
You must register with the Canada Revenue Agency (CRA) for tax purposes. This includes obtaining a Business Number (BN) which is a 9-digit number that identifies your business.
Required registrations:
- Business Number (BN): Unique identifier for your business
- GST/HST Account: If your annual revenue exceeds $30,000 CAD (mandatory) or you want to register voluntarily
- Payroll Account: If you hire employees
- Corporate Income Tax Account: If you incorporate
How to register: Online through CRA's Business Registration Online (BRO) service
Estimated time: Immediate to 2 weeks (depending on account type)
Cost: Free
Register with CRA →GST/HST Registration
You must register for GST/HST if your annual revenue exceeds $30,000 CAD. You can also register voluntarily if your revenue is below this threshold. GST/HST rates vary by province:
- Alberta, Northwest Territories, Nunavut, Yukon: 5% GST only
- British Columbia, Saskatchewan, Manitoba: 5% GST + Provincial Sales Tax (PST)
- Ontario: 13% HST
- Quebec: 5% GST + 9.975% QST
- New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island: 15% HST
When to register: Within 29 days of exceeding the $30,000 threshold, or voluntarily at any time
How to register: Through CRA's Business Registration Online (BRO)
Estimated time: 1-2 weeks for processing
Cost: Free (but you'll need to collect and remit GST/HST)
⚠️ Important: Once registered, you must charge GST/HST on taxable supplies and file returns (annually, quarterly, or monthly depending on revenue).
Provincial Barber License
Barber licensing requirements vary by province. Most provinces require barbers to be licensed. Here's an overview by province:
Note: Contact your provincial licensing authority for specific requirements in your province. Some provinces may have different requirements or may not require licensing.
Municipal Business License
Most municipalities require businesses to obtain a business license. Requirements vary by city and municipality.
Where to apply: Your local city or municipal office
Estimated time: 1-4 weeks (varies by municipality)
Approximate cost: $50-$500 CAD (varies significantly by municipality)
Important note: Contact your local municipal office early to understand specific requirements. Some municipalities may require zoning approval or health inspections before issuing a license.
Health and Safety Compliance
You must comply with health and safety regulations. This includes:
- Compliance with provincial health regulations
- Proper sanitation and hygiene practices
- Safe handling and storage of chemicals and products
- Workplace safety standards (varies by province)
- Health inspections (may be required by municipality or province)
Health inspections: Your local health department or provincial health authority may inspect your premises to ensure compliance with hygiene standards.
Cost: Free (but you must invest in proper equipment, sanitation supplies, and training)
Insurance Requirements
You need appropriate insurance coverage:
- Commercial General Liability Insurance: Essential for businesses that interact with the public. Covers claims for injury or property damage. Typically $1-5 million coverage recommended.
- Workers' Compensation Insurance: Required in most provinces if you employ staff. Coverage and requirements vary by province.
- Contents Insurance: To protect your equipment, furniture, and stock.
- Commercial Property Insurance: If you own the property (or your lease requires it).
- Business Interruption Insurance: Optional but recommended to cover loss of income.
Approximate cost: $500-$2,000 CAD per year (varies by coverage, location, and business size)
Important: Shop around for insurance quotes. Compare coverage and prices from multiple providers. Major providers include Intact Insurance, TD Insurance, and Co-operators.
Estimated Initial Investment
The initial investment to open a barbershop in Canada can vary significantly depending on size, location, and equipment level. Here's an approximate breakdown in Canadian dollars:
Detailed Breakdown by Category
Rent
Rent varies enormously depending on location. In Toronto, Vancouver, and other major cities, costs are significantly higher than in smaller cities.
- Toronto (Downtown): $3,000 - $8,000 CAD/month
- Toronto (Suburbs): $1,500 - $4,000 CAD/month
- Vancouver: $2,500 - $6,000 CAD/month
- Montreal: $1,200 - $3,500 CAD/month
- Calgary, Edmonton, Ottawa: $1,000 - $3,000 CAD/month
- Smaller cities: $500 - $2,000 CAD/month
Consider: Security deposit (typically 3-6 months), first month's rent, and possible agent fees.
Professional Equipment
Equipment is an important investment. You can find quality equipment at specialized distributors, online retailers, or buy used to save.
- Barber chairs: $400 - $2,000 CAD each
- Mirrors: $150 - $1,200 CAD each
- Professional scissors: $40 - $250 CAD each
- Clippers: $80 - $400 CAD each
- Razors and tools: $150 - $600 CAD
- Hair dryers: $60 - $300 CAD each
- Lighting: $200 - $1,200 CAD
Purchase options:
Working Capital
Money needed to cover operating expenses during the first months while you build your client base. Includes:
- Payroll (if you hire employees)
- Monthly rent
- Utilities (electricity, water, internet, property taxes)
- Ongoing marketing
- Inventory replenishment
- Unexpected expenses
Recommendation: Keep enough capital to cover 3-6 months of operation without significant income.
Financing Options
If you don't have all the necessary capital, consider these options:
- BDC Loans: Business Development Bank of Canada offers various loan programs for small businesses
- Canada Small Business Financing Program: Government-backed loans for small businesses
- Traditional bank loans: From major Canadian banks (RBC, TD, Scotiabank, BMO, CIBC)
- Credit unions: Often more flexible than banks for small businesses
- Equipment leasing: To finance specific equipment
- Investors or partners: To share risk and capital
Note: These are estimated ranges. A small barbershop with basic equipment can start with around $20,000 CAD, while a larger, well-equipped barbershop in a premium location (especially Toronto or Vancouver) may require up to $80,000 CAD or more. Prices can vary significantly depending on geographic location, equipment quality, and premises size.
Strategic Location
Location is one of the most important factors for your barbershop's success. A good location can mean the difference between success and failure. In Canada, there are multiple platforms and resources to find the perfect location.
Where to search for commercial properties:
Realtor.ca Commercial
The largest property platform in Canada. Excellent for finding commercial properties across all provinces.
Search on Realtor.ca →Kijiji
Popular local platform for finding commercial properties, especially in major cities. May have direct owner listings.
Search on Kijiji →Local Real Estate Agents
Don't overlook local real estate agents. They often have properties that aren't listed online and can provide valuable local market knowledge.
Key Canadian Cities for Barbershops:
Toronto
Largest market but highest rents. Areas like Queen West, King West, and the Entertainment District are popular.
Vancouver
Strong market with high demand. Gastown, Yaletown, and Main Street are good locations.
Montreal
Vibrant city with strong local economy. Plateau, Mile End, and Old Montreal are popular areas.
Calgary
Growing market with competitive rents. Downtown and Kensington are good options.
Ottawa
Stable market with government and tech workers. ByWard Market and Centretown are popular.
Edmonton
Affordable market with growing population. Whyte Avenue and Downtown are good locations.
Equipment and Furniture
Quality equipment is essential for providing excellent service. Invest in professional tools that will last and make your barbershop stand out.
Note: For a barbershop with 2-3 barbers, basic equipment can cost between $6,000 and $25,000 CAD, depending on whether you choose economical or professional options.
Staff Hiring
Hiring experienced barbers with appropriate provincial licenses is essential for your barbershop's success. A good team can make your business stand out and generate loyal clients.
Employment obligations in Canada:
- Workers' Compensation: Required in most provinces if you employ staff
- Employment Standards: Comply with provincial employment standards (minimum wage, hours, vacation, etc.)
- Payroll Deductions: Deduct CPP, EI, and income tax from employee salaries
- Record Keeping: Maintain proper employment records
Where to find barbers:
Indeed Canada
Search barbers on Indeed →Local barbering schools and colleges
Contact local colleges that offer barbering programs for recent graduates.
Management System and Technology
A good management system is essential for organizing appointments, managing clients, and running your barbershop efficiently.
Marketing and Promotion
Effective marketing is crucial to attract clients and build your barbershop's reputation. In today's digital age, a strong online presence combined with local marketing strategies is essential.
Digital marketing strategies:
- Website: Create a professional website with your services, prices, location, and online booking
- Google My Business: Register and optimize your profile to appear in local searches
- Social media: Create profiles on Instagram and Facebook. Post regularly with photos of your work
- Google Ads: Consider running Google Ads targeted to your local area
- Facebook Ads: Target potential clients in your area with Facebook advertising
Tips and Best Practices for Success
Frequently Asked Questions
Do I need a license to open a barbershop in Canada?
Barber licensing requirements vary by province. Most provinces require barbers to be licensed. You also need to register your business with CRA, obtain a municipal business license, and comply with health and safety regulations.
How much does it cost to open a barbershop in Canada?
The initial investment can range from $20,000 to $80,000 CAD depending on size, location, and equipment quality. A small barbershop with basic equipment can start around $20,000, while a larger, premium barbershop in Toronto or Vancouver may require $80,000 or more.
Do I need to register for GST/HST?
You must register for GST/HST if your annual revenue exceeds $30,000 CAD. You can also register voluntarily if your revenue is below this threshold. GST/HST rates vary by province.
What insurance do I need?
You need Commercial General Liability Insurance (essential for businesses that interact with the public) and Workers' Compensation Insurance (required in most provinces if you employ staff). You may also want Contents Insurance and Business Interruption Insurance.