In today’s world, almost everyone complains of hair problems because of factors like environmental pollution, unhealthy eating habits, over-styling, poor lifestyle choices, and stress. So, hair extensions have been gaining popularity all over the world for the past few years. They help people fulfill their dream of flaunting shiny and voluminous hair without following a stringent haircare routine. So, if you are looking for innovative business ideas, launching a hair business is a great idea. But how to start a hair business to maximize its chances of becoming a success? Let’s find out!
Having your own hair business sounds fun. However, determining how much you need to invest and coming up with a business plan are the first two things that should be on your mind. There are other key considerations like deciding what kinds of natural hair care products you will sell. If you are starting from scratch, in this article, you will find all the necessary information for beginners like you.
Start a Hair Extension Business with These Steps
As mentioned already, human hair is sought after to make extensions, custom hair pieces, and braids. It is a coveted commodity as it appears more natural than synthetic hair extensions. Hence, knowing how to start a hair business can make you rich. So, without further ado, have a look at the things you need to consider before you launch your business.
1. Weigh the pros and cons
Before you get started, you must understand the pros and cons of running a salon business so that you don’t end up wasting your time and money. Some of the biggest pros are that the startup cost can be low initially and you can work from home. One of the cons is that the competition is high in this industry. You will also have to go through the process of supplier selection for hair products as you can’t make the products.
2. Choose your business model
Your first important task is figuring out what type of business in the hair industry is ideal for you. Are you interested in manufacturing and selling hair products? Will you only sell hair wigs and hair extensions, or will hair care products also feature on your site? Will you operate the entire business online or do you think about providing hair services in a salon as well? Having the answers to these questions is crucial to proceed systematically.
Moreover, each business model will have its startup costs that include equipment, supplies, inventory, hosting, website development, etc. By weighing all your options and studying hair care industry trends, you will be able to run the business smoothly and reach all your business goals.
3. Hair extension business planning
After researching products and opportunities in this field, you will have clarity regarding what you are going to sell. Then you are ready to take the next step: adopting hair product marketing strategies that will be effective for your business and so, you require a business plan.
A business plan is basically a comprehensive document that will provide a roadmap to launch and run your hair business. This stage encompasses everything from picking a venue for a brick-and-motor store to sourcing products, from appointing skilled and experienced employees to choosing a unique business name. You should regularly review and update your business plan to meet the growing demands of customers and ongoing trends prevalent in the hair extension market.
4. Calculate the startup expenses
You cannot run a hair business with no money. Your startup expenses will include the money you will need for offline or online hair business setup. You will have to arrange funds for a lot of things like:
- Renting and purchasing utilities for your physical store (if you will open a salon/ store in your area)
- Developing a professional website/ online store so that people can order your products from the comfort of their homes.
Here are some other major expenses that you have to handle:
- Inventory costs
A significant ongoing cost is inventory replenishment and how often you’ll have to restock your inventory depends on the sales and they type of your business. Inventory management means buying new items from suppliers and paying for handling and shipping costs. It is crucial to keep track of the sales data so that you can order products and raw ingredients when they are needed instead of overstocking your store.
- Business registration
Did you know that you are supposed to get your business registered with government agencies and acquire the necessary licenses and permits. If you do not comply with the regulations in your area, you may get tangled up in legal issues in the future. Some such licenses are cosmetology license, health permit, business license, etc. The costs can vary depending on the kind of business and the location.
- Mortgage and rent
If yours won’t be a home-based business, you will have to buy or rent a property to set up your office/ store. The cost of mortgage and rent payments are calculated as per the size, condition, and location of the property. Hence, you must see that the cashflow is sufficient to manage these things as well.
- Advertising costs
One of the top e-commerce strategies for beauty products is to take marketing seriously and for that, you need money. You can make an estimate of your marketing cost beforehand based on the marketing channels you select according to your budget. Then you can set aside a fixed amount as increasing the visibility of the business and establishing a customer base are essential.
- Salaries for employees
Managing a business singlehandedly will be impossible and it will drain you, physically and mentally. So, once you start getting customers, you will have to outsource certain tasks to competent people. You will have to pay your employees on time and thus, you must know about wage laws and decide how much you will pay for different roles.
- Operational costs
Launching a hair product line will incur costs like operational expenses. These can be rent, water, internet, electricity, phone bills, equipment, tools, and hair extensions. Additionally, expenses will also be related to keeping the workplace comfortable, clean, and hygienic for the sake of your staff and customers.
5. Promote your hair brand
Whether you will provide custom hair solutions online or run a physical store, you must make attempts to get known. As yours is a new business, you have to build a customer base for your business to take off. For instance, you can sponsor a hair show or a fashion show to attract crowd. You can donate hair or design custom wigs for patients who have lost hair due to cancer or alopecia.
Doing these things will not just give you immense satisfaction but also help you get media coverage. You should also take advantage of your social media accounts and keep posting frequently to reach more potential customers. You can collaborate with influencers who will share positive reviews about your products on their social media profiles.
The Bottom Line
We may conclude by saying that launching a hair product line can be an exciting business venture for someone passionate about haircare. However, you must build a strong foundation so that the hair extension business does not fail. The key to achieving long-term success in any business is by taking a thoughtful and strategic approach. Offering high-quality products and top-notch services are equally crucial. So, refer to this article as your guide to entrepreneurship in beauty and go ahead with your plan keeping a positive mindset.
Frequently Asked Questions
Q. What are the first steps to take when starting a hair business?
The first step to take when you start a business in the hair industry to finalize what type of hair vendor you will be. Once you know the kind of hair store/ hair factory you will open, you have to accumulate money, curate the best hair products, and start selling hair extensions online and offline.
Q. How can I find reliable suppliers for my hair product line?
To get good quality raw hair or virgin hair and other supplies for your hair store, you can contact a reputed wholesale hair supplier or hair distributors who provide items at affordable prices. You can contact multiple reliable hair sellers to buy hair supplies of all types and run your hair business successfully.
