sample business plan for selling hair extensions

Hair Extension Selling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Selling Hair Extensions

There are businesses that someone with little education and no serious business background and training can start. One of such businesses is to open a hair extension retail store . The major things you need to succeed in this business is a good location, easy access to wholesale supply of quality hair extensions and good customer service skills.

The truth is that if your store is located in an area with good human and vehicular traffic, and you have quality hair extensions, wigs and related products from different brands, you may not have to struggle to get people to visit your store and make purchase. Below is a sample hair extension retail store business plan template that can help you to successfully write your own.

A Sample Hair Extensions Retail Store Business Plan Template

1. industry overview.

Hair extension retail stores are part of the Wig and Hairpiece Stores industry and players includes stores that mainly specialize in selling wigs, hairpieces and hair extensions for both aesthetic and medical purposes. Please note that this industry does not include retailers that primarily provide wigs and hairpieces via electronic mediums.

The Wig and Hairpiece Stores industry, just like most businesses in the retailing industry, depends on strong consumer spending to spur the demand for industry products.

Over the last half decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing. Going forward, as the economy of the united states continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive.

The Wig and Hairpiece Stores industry is indeed a major sector of the economy of the United States of America and they generate over $224 million annually from more than 696 wigs and hair extension retail outlets scattered all around the United States of America.

The industry is responsible for the employment over 1,997 people. Experts project that the industry will grow at a 4.0 percent annual rate. No player can boast of having a lion share of the available market in this industry.

A close study of the Wig and Hairpiece stores industry shows that the industry has low and steady barriers to entry. For instance, the capital requirements to open a store location are relatively low and primarily consist of leasing a commercial property and purchasing initial inventory.

Increased vacancies and lower leasing rates as a result of the recession have improved new entrants’ ability to find low-cost property in attractive locations over the past five years. However, high competition may deter potential new entrants.

It is important to note that the cost of purchasing initial inventory can vary considerably and is dependent upon hair extension retailers’ ability to work with manufacturers and suppliers. As a new market entrant in the industry, you have to establish relationships with suppliers and build a clientele base, which can act as a barrier to entry.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the hair extension retail stores industry contributes greatly.

This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing industry negatively which may result in the closure of some retail stores.

Over and above, the wig and hair extension retail store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or you can chose to start on a large scale with several outlets in key cities through the United States of America.

2. Executive Summary

Sharon & Anita Hair Extension Store®, Inc. is a registered hair extension retail store business that will be located in one of the busiest streets in Charleston – West Virginia.

We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of hair extension retail store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Charleston – West Virginia.

Sharon & Anita Hair Extension Store®, Inc. will retail synthetic hair wigs, human hair wigs, synthetic hairpieces, human hairpieces and toupees et al from different manufacturers from the United States and abroad. We are set to service a wide range of clientele in and around Charleston – West Virginia.

We are aware that there are several hair extension retail outlets all around Charleston – West Virginia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet has various payments of options.

Sharon & Anita Hair Extension Store®, Inc. will ensure that all our customers are given first class treatment whenever they visit our hair extension retail store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

Sharon & Anita Hair Extension Store®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Sharon & Anita Hair Extension Store®, Inc. is a family business that is owned by Sharon Williams and her immediate family members.

Sharon Williams has a B.Sc. in Business Administration, with over 5 years’ experience in the retailing industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Charleston – West Virginia, but there is a plan to open other outlets all around major cities in the United States.

3. Our Products and Services

Sharon & Anita Hair Extension Store®, Inc. is in the wigs and hair extension retail industry to service a wide range of clients and of course to make profits, which is why we will go all the way to make available a wide range of hair extensions from top manufacturing brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

• Retailing synthetic hair wigs
• Retailing human hair wigs
• Retailing synthetic hairpieces
• Retailing human hairpieces
• Retailing toupees

4. Our Mission & Vision Statement

Our vision is to become one of the leading brands in the wig and hair extension retail stores industry in West Virginia and to establish a one stop hair extension retail store in Charleston – West Virginia and in other key cities in the United States of America and Canada.

Our mission is to establish a world – class hair extension retail business that will make available a wide range of hair extension products from top hair extension manufacturing brands at affordable prices to residents of Charleston – West Virginia and other key cities in the United States of America where we intend opening of chains of hair extension retail stores and franchise.

Our Business Structure

Our intention of starting a hair extension retail store business is to build a standard and one stop hair extension retail store outlet in Charleston – West Virginia.

Although our hair extension retail store business might not be as big as multi – million dollars hair extension stores, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager
• Merchandise Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization.
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of wigs and hair extensions are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls hair extension distribution and supply inventory
• Supervises the workforce in the sales floor.

Merchandize Manager

• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure high quality hair extensions from different manufacturers are purchased and retailed in good price that will ensure profit
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the organization’s website
• Handles eCommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• makes suggestions and encourage purchase of products
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases and gift wrap merchandise
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the store manager

6. SWOT Analysis

Our intention of starting just one outlet of our hair extension retail store in Charleston – West Virginia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in West Virginia and key cities in the United States and Canada.

We are aware that there are several hair extension retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Sharon & Anita Hair Extension Store®, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Sharon & Anita Hair Extension Store®, Inc.

Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of wigs and hair extension and our excellent customer service culture will definitely count as a strong strength for Sharon & Anita Hair Extension Store®, Inc. So also, our team of highly qualify staff members is also a plus for us.

A major weakness that may count against us is the fact that we are a new hair extension retail store outlet in Charleston – West Virginia and we don’t have the financial capacity to compete with multi – million dollars hair extension retail stores when it comes to retailing our products at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our hair extension retail store in one of the busiest streets in Charleston – West Virginia provides us with unlimited opportunities to sell our wigs and hair extension to a large number of individuals and corporate organizations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our hair extension outlets.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new hair extension retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Wigs and Hair Extension Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever – changing trends are major growth drivers for sales in this industry.

No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Wigs and Hair Extension Stores industry.

So also, the rising demand for trendy hair extension, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as hair extension stores keep prices low to attract more sales amid growing competition.

A close watch on the industry activities reveals that concentration has increased slightly over the past five years, as merger and acquisition activity has become more prominent. Additionally, companies that have enough funds to invest in multichannel operations have benefitted more than smaller operators with minimal resources.

As part of marketing strategies, hair extension retail stores engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

Lastly, in recent time, the hair extension retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical hair extension retail store is located.

8. Our Target Market

We are aware that loads of females make use of hair extensions and wigs. In view of that, we have positioned our hair extension retail store to service residents of Charleston – West Virginia and every other location where our hair extension stores will be located all over key cities in the United States of America.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of hair extensions to females in and around the location where our hair extension stores will be located.

Our Competitive Advantage

A close study of the wigs and hair extension retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading hair extension retail stores in Charleston – West Virginia and throughout the United States and Canada.

Sharon & Anita Hair Extension Store®, Inc. is launching a standard one stop hair extension retail store that will become the preferred choice of residents of Charleston – West Virginia and every other location where our outlets will be opened.

Our hair extension retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Charleston – West Virginia.

One thing is certain; we will ensure that we have a wide range of hair extension from leading manufacturers available in our store at all times. It will be difficult for customers to visit our hair extension store and not see the type of wig or hair extension products they are looking for.

One of our business goals is to make Sharon & Anita Hair Extension Store®, Inc. a one stop hair extension shop for all classes of customers. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Sharon & Anita Hair Extension Store®, Inc. is in business to retail a wide range of wigs and hair extension. We are in the wigs and hair extension retail stores industry to

10. Sales Forecast

One thing is certain when it comes to hair extension retail stores, if your store is stocked with various types of wigs and hair extensions and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the wigs and hair extension retail stores industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Charleston – West Virginia.

• First Fiscal Year: $250,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same wigs and hair extension brands as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Sharon & Anita Hair Extension Store®, Inc. we conducted a thorough market survey and feasibility studies to enable us penetrate the available market and become the preferred choice in the market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.

We hired experts who have good understanding of the wigs and hair extension retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – West Virginia.

In other to continue to be in business and grow, we must continue to sell the hair extension that are available in our store which is why we will go all out to empower our sales and marketing team to deliver. In summary, Sharon & Anita Hair Extension Store®, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our hair extension store in a grand style with a party for all
• Introduce our hair extension store by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Charleston – West Virginia
• Ensure that we have a wide range of wigs and hair extension from different brands at all times
• Make use of attractive hand bills to create awareness and also to give direction to our hair extension store
• Position our signage/flexi banners at strategic places around Charleston – West Virginia
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in roadshows within our neighborhood to create awareness for our hair extension store.
• List our business and products on yellow pages ads
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our hair extension store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our hair extension store.

Sharon & Anita Hair Extension Store®, Inc. has a long – term plan of opening outlets in various locations all around West Virginia and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sharon & Anita Hair Extension Store®, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms to promote our business
• Ensure that our we position our banners and billboards in strategic positions all around Charleston – West Virginia
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our hair extension store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hair extension stores, it is normal for consumers to go to places where they can get hair extensions at cheaper price which is why big player in the wigs and hair extension stores industry will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with big players in the industry, but we will ensure that the prices and quality of all the hair extension products that are available in our stores are competitive with what is obtainable amongst hair extension stores within our level.

• Payment Options

The payment policy adopted by Sharon & Anita Hair Extension Store®, Inc. is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America. Here are the payment options that Sharon & Anita Hair Extension Store®, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for products purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a hair extension retail store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Sharon & Anita Hair Extension Store®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• Cost for hiring Business Consultant – $2,500
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400 .
• Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600 .
• Cost for Shop remodeling (construction of racks and shelves) – $20,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of wigs and hair extensions from different brands) – $250,000
• The cost for counter area equipment – $9,500
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs – $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our hair extension retail store in Charleston – West Virginia.

Generating Startup Capital for Sharon & Anita Hair Extension Store®, Inc.

Sharon & Anita Hair Extension Store®, Inc. is a private registered business that is solely owned and financed by Sharon Williams and her immediate family members. They do not intend to welcome any external business partner which is why they decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Sharon & Anita Hair Extension Store®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality hair extension a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Sharon & Anita Hair Extension Store®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of a list of products that will be available in our store: Completed
• Establishing business relationship with suppliers of wigs and hair extensions: In Progress

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Hair Extensions Business Plan Template

Written by Dave Lavinsky

Hair Extensions Business Plan

You’ve come to the right place to create your Hair Extensions business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hair Extensions businesses.

Below is a template to help you create each section of your Hair Extensions business plan.

Executive Summary

Business overview.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. Our mission is to make every customer feel empowered and beautiful by providing them with the perfect hair extensions and hair care products. We do this by offering every style and color imaginable so that every customer can find exactly what they want to feel and look their best. With our amazing customer service and enormous selection, we hope to be the most popular hair extensions store in the city in the next few years.

Hairapy Extensions is founded by Angelina Matthews, who has been a hairstylist for five years. Throughout her career, he has sold and inserted hair extensions for hundreds of customers and has found it to be the most enjoyable part of her job. As such, she has extensive knowledge of hair extensions and how to insert and care for them. Her experience and expertise will be the company’s most valuable asset.

Product Offering

Hairapy Extensions will showcase a wide variety of hair extensions throughout our store. Our hair extensions will come in all colors, from natural hair colors to fun dyed colors like pink or blue. We guarantee that every customer will find the perfect hair extensions that fit their style and budget. We also sell hair care supplies and accessories to ensure that our customers’ new hair extensions last as long as possible.

Customer Focus

Hairapy Extensions will serve the community residents of Los Angeles, California, and its surrounding areas. We will primarily target female and female-identifying people, as this group is traditionally the most likely to buy hair extensions and hair care products. We also expect most of our clientele to be in the age range of 20-40, as young women are much more likely to get hair extensions than women in other age ranges.

Management Team

Hairapy Extensions is led by Angelina Matthews, an experienced hairstylist and salon manager with over five years of experience. Throughout her career, she found inserting hair extensions to be the most enjoyable aspect of her job and wanted to build a company that solely focuses on hair extensions. After years of planning, she is finally ready to start her business. Her extensive knowledge of hair extensions and the industry will be the company’s most valuable asset.

Success Factors

Hairapy Extensions is primed for success by offering the following competitive advantages:

• Friendly and attentive staff who will go out of their way to find the perfect hair extensions for each customer.
• Comprehensive supply of hair extensions that includes every color and texture imaginable.
• Cost-effective pricing that rivals the competition without sacrificing service or quality.

Financial Highlights

Hairapy Extensions is currently seeking $280,000 to launch. The funding will be dedicated to the store design and buildout, working capital, overhead, supplies, and marketing costs. The breakout of the funding is below:

• Store design/build: $150,000
• Initial inventory, supplies, and technology: $50,000
• Payroll, rent, and overhead costs (3 months): $30,000
• Working capital: $25,000
• Marketing expenses: $25,000

The following graph below outlines the pro forma financial projections for Hairapy Extensions.

Company Overview

Who is hairapy extensions.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. We provide an enormous selection of hair extensions to choose from, with every style and color imaginable. Customers can get natural colors to match their natural hair, such as blond, brunette, or red. They can also get dyed hair extensions if they want to add some color to their hair, such as blue, purple, pink, or green. Customers can expect to find the perfect hair extensions that fit their style and budget when shopping with Hairapy Extensions.

  Our store will be located in downtown Los Angeles, nearby fashion stores, hair salons, and other hair care stores. We will also have an online shop for those who don’t live in Los Angeles or can’t make it to our location to make a purchase in person.

Hairapy Extensions’ History

Angelina Matthews incorporated Hairapy Extensions as an S-Corporation on August 1st, 2023. Angelina has identified a potential retail location and is in the process of negotiating a lease. The company is currently being run out of her home but will move to the retail space once the lease is finalized.

Since its incorporation, Hairapy Extensions has achieved the following milestones:

• Found a retail space and signed a Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Begun recruiting key employees with previous experience in the beauty/hair care industries

Hairapy Extensions’ Services

Hairapy Extensions will sell a wide variety of hair extensions online and in our store. We will offer several styles and every color imaginable, including numerous shades of blond, brown, red, pink, purple, and blue. Whether a customer wants longer hair, a style change, or a little bit of color without dye, we can find the perfect extension to fit their needs and budget. We also sell hair care products that ensure the extensions last as long as possible.

Industry Analysis

Hair extensions have been a part of style and fashion for centuries. In the past, hair extensions exemplified power and position and created lasting fashion trends. They were used to thicken and lengthen hair as well as to maintain a youthful appearance. It is believed that many powerful figures used hair extensions, including Cleopatra and Queen Elizabeth I.

The current hair extension industry is a thriving industry that helps many people show off their unique style and feel more comfortable in their bodies. Many people purchase hair extensions when they want to try a certain hairstyle but can’t pull it off naturally. Hair extensions are also popular amongst people who want to color their hair without destroying it with dye and bleach. Finally, hair extensions help many people suffering from thinning hair due to age or illness.

According to Future Market Insights, the current hair extensions industry was valued at $2.38 billion last year and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from now until 2032. The industry is positively affected by the rise in disposable income as well as beauty trends created and spread by social media. These trends are expected to continue, and the hair extensions industry is expected to thrive for the foreseeable future.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Hairapy Extensions will primarily target the following customer profiles:

• Women/female-identifying people
• Young adults
• People with conditions that affect their hair

Competitive Analysis

Direct and indirect competitors.

Hairapy Extensions will face competition from other businesses with a similar company profile. A summary of the competitor companies is below.

Hair Heaven

Hair Heaven is a major online warehouse that sells wigs and hair extensions. They have every color and style imaginable, which makes them an incredibly popular hair extensions supplier nationwide. They are particularly popular with beauty supply stores as they can sell their products wholesale. Though Hair Heaven is a popular source of hair extensions, it is a completely online store. Customers who want to talk with a professional and purchase hair extensions in person will be more inclined to come to Hairapy.

Lanie’s Wig & Hair Supply

Lanie’s Wig & Hair Supply is a small, locally-owned supplier of all things hair care. This includes organic shampoos, hair extensions, wigs, and accessories. They offer many colors and styles of wigs and hair extensions to choose from, and many customers report being satisfied with their products. The store also has a few hair stylists on standby who can help them clean and style their hair extensions and wigs as needed. Though Lanie’s will continue to thrive, their selection is much smaller than ours. Our inventory will be far more enticing, and we will be able to find hair extensions for far more customers than Lanie’s can.

Sally’s Salon

Sally’s Salon is a popular and hip hair salon business located in downtown Los Angeles, California. People all over the city come here to get their hair cut and styled to keep up with current fashion and trends. In addition to providing hair styling services, Sally’s sells a large assortment of wigs, hair extensions, and hair care accessories. Customers can choose some hair extensions and have a stylist insert and style them all in the same appointment. Since Sally’s is such a popular salon, we expect them to be our biggest direct competitor.

Competitive Advantage

Hairapy Extensions will be able to offer the following competitive advantages over their competition:

• Management : Our management team has years of experience in the hair care industry, which allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
• Friendly Staff : Our staff understands that buying hair extensions can be a stressful and difficult process, especially for those who need them to hide their thin or damaged hair. Hairapy Extensions only hires the friendliest staff who can work with these customers in a compassionate manner.
• Inventory : Hairapy Extensions aims to own the largest and most diverse collection of hair extensions that can be found anywhere in Los Angeles, California.

Marketing Plan

Brand & value proposition.

Hairapy Extensions will offer a unique value proposition to its clientele:

• Friendly and helpful staff
• Affordable pricing on all products
• A large inventory of unique and stylish hair extensions that include every color and style imaginable

Promotions Strategy

The promotions strategy for Hairapy Extensions is as follows:

Influencer Marketing

Hairapy Extensions will partner with local beauty influencers to spread the word about the company. The company will offer discount codes to the influencers’ audiences to entice them to shop our products.

Angelina Matthews will invest in appealing billboards and marketing techniques for the company. The billboards will be located in highly trafficked areas of Los Angeles where the visibility is highest.

Social Media

Hairapy Extensions will have Instagram and Facebook business profiles where Angelina will post professional and appealing pictures that will draw in anyone looking for hair extensions. The posts will be able to show the beautifully designed store as well as satisfied customers with their new hair extensions. Angelina will also post upcoming specials and special offerings.

Website & SEO Marketing

The marketing assistant will design and manage a comprehensive and attractive website for Hairapy Extensions. The website will be easy to navigate and include pictures of our products, pricing, contact information, and location. The SEO will also be managed to ensure that anyone searching “hair extensions near me” or “hair extensions Los Angeles” will see Hairapy Extensions listed at the top of the Bing or Google search engine.

The pricing of Hairapy Extensions will be moderate and on par with competitors so customers feel they receive value when buying our hair extensions.

Operations Plan

The following will be the operations plan of Hairapy Extensions. Operation Functions:

• Angelina Matthews will be the Owner and President of the company. She will oversee the general operations of the store as well as provide customer services and sales. Angelina will spend the next several months hiring the following staff:
• Several associates who will provide customer service, sell products, and help insert hair extensions for customers.
• An Accountant who will manage all client invoicing, billing, and payables.
• A Marketing Assistant who will run all the marketing and promotions campaigns.

Milestones:

Hairapy Extensions will have the following milestones completed in the next six months.

• 9/1/202X – Finalize lease agreement
• 9/15/202X – Begin build out and design
• 10/1/202X – Begin hiring essential staff
• 10/15/202X – Finish build out and design; final walk-through of store
• 11/1/202X – Begin marketing campaign
• 11/15/202X – Grand opening of Hairapy Extensions

Though Angelina has never run a business herself, she has been in the industry long enough to have an in-depth knowledge of the operations and marketing sides of the business. She will also hire other professionals who can help with the other aspects of the business she is unfamiliar with.

Financial Plan

Key revenue & costs.

The revenue drivers for Hairapy Extensions will be the sales of our hair extensions and other hair products.

The major costs for the company will include the costs of inventory, payroll, and overhead. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of daily customers: 50
• Average product price: $250
• Annual Lease: $50,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Hair Extensions Business Plan FAQs

What is a hair extensions business plan.

A hair extensions business plan is a plan to start and/or grow your hair extensions business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Hair Extensions business plan using our Hair Extensions Business Plan Template here .

What are the Main Types of Hair Extensions Businesses? 

There are a number of different kinds of hair extensions businesses , some examples include: Hair extension services, Hair extension stores, and Online hair extension sales.

How Do You Get Funding for Your Hair Extensions Business Plan?

Hair Extensions businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hair Extensions Business?

Starting a hair extensions business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hair Extensions Business Plan - The first step in starting a business is to create a detailed hair extensions business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hair extensions business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hair extensions business is in compliance with local laws.

3. Register Your Hair Extensions Business - Once you have chosen a legal structure, the next step is to register your hair extensions business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hair extensions business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hair Extensions Equipment & Supplies - In order to start your hair extensions business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hair extensions business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

• Sample Business Plans
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Hair Extension Business Plan

High demand, low startup costs, and a recurring revenue model make starting a hair extension business a lucrative and rewarding profession.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your hair extension business? You’re at the right place. Our hair extension business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Hair Extension Business Plan?

Writing a hair extension business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the hair extension products & services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of hair extension company you run and the name of it. You may specialize in one of the following hair extension businesses:

• Retail hair extension store
• Online hair extension store
• Wholesale hair extension store
• Mobile hair extension service
• Hair extension subscription box
• Describe the legal structure of your hair extension company, whether it is a sole proprietorship, LLC, partnership, or others.Explain where your business is located and why you selected the place.

Mission Statement:

Business history:, future goals.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hair extension business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products of Your Bicycle Shop

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the hair extension products & services your business will offer. This list may include

• THair extension
• Hair extension accessories
• Styling products
• Hair extension installation
• Hair extension maintenance & removal
• Customization & color matching
• Hair extension consultation

Describe each service:

Provide a detailed description of each service you provide, including the process involved.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your hair extension plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your hair extension business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hair extension business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for hair extension, such as styling tools, application tools, cutting & shaping tools, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hair extension business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hair extension services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your hair extension selling business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This s ample hair extension business plan will provide an idea for writing a successful hair extension plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hair extension business plan pdf .

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Frequently asked questions, why do you need a hair extension business plan.

A business plan is an essential tool for anyone looking to start or run a successful hair extension business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hair extension company.

Where to find business plan writers for your hair extension business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your hair extension business plan and outline your vision as you have in your mind.

What is the easiest way to write your hair extension business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any hair extension business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a hair extension business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my hair extension business plan?

The level of detail of the financial projections of your hair extension business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What's the importance of a marketing strategy in a hair extension business plan?

Marketing strategy is a key component of your hair extension business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Table of contents, crafting a powerful hair extension business plan.

• 16 May, 2024

Starting Your Hair Business

Before diving into the world of hair extensions, it’s crucial to lay a solid foundation for your business. This section will guide you through the initial steps of creating a business plan and identifying your target market.

Creating a Business Plan

A well-crafted business plan is essential for the success of your hair extension business. It provides a snapshot of your company’s current status and outlines the future growth plan for the next five years. A comprehensive business plan acts as a roadmap, guiding you towards your business goals and helping you secure funding if necessary.

The business plan should include key components such as an executive summary, an overview of your business, a target market description, a marketing strategy, pricing strategy, financial projections, and a management plan. It should also incorporate market research to support your plans ( Source ).

In the target market description section, you must identify your ideal customers. Consider factors such as age, gender, location, lifestyle, and haircare needs. Understanding your target market will enable you to tailor your products, services, and marketing efforts to meet their specific requirements.

Identifying Target Market

Identifying your target market is a crucial step in developing a successful hair extension business. By understanding your target audience, you can tailor your offerings to meet their needs and preferences. Conduct thorough market research to gain insights into the demographics, psychographics, and purchasing behavior of your potential customers.

For example, your target market might consist of women aged 25-45, who value quality hair products and are willing to invest in premium extensions. They might be located in urban areas with a higher demand for hair care services.

By understanding your target market, you can develop effective marketing strategies, create compelling brand messaging, and differentiate yourself from competitors. This knowledge will also guide your product selection, pricing strategy, and customer experience initiatives.

To further explore strategies for marketing your hair extension business, continue reading our article on hair extension business tips .

Marketing Strategies

When it comes to launching and growing a successful hair extension business, implementing effective marketing strategies is key. In this section, we will explore two essential marketing strategies: brand story development and social media marketing.

Brand Story Development

Developing a compelling brand story is crucial for creating a strong connection with your target customers in the hair extension business. Your brand story should highlight unique aspects such as hair quality, style variety, and exceptional customer service ( Keegan Edwards ). By crafting a narrative that resonates with your target audience, you can differentiate your business from competitors and build brand loyalty.

To develop a powerful brand story, consider the following steps:

• Identify your target audience: Determine who your ideal customers are and understand their needs, preferences, and pain points.
• Define your brand values: Clarify the core values and mission of your business. What sets you apart from the competition?
• Tell your unique story: Share the story behind your brand, including why you started the business, your passion for hair extensions, and the values that drive your company.
• Highlight customer testimonials: Showcase positive feedback and testimonials from satisfied customers to build trust and credibility.
• Consistency across all touchpoints: Ensure that your brand story is consistently communicated through your website, social media, packaging, and other marketing materials.

By crafting a compelling brand story, you can establish a strong emotional connection with your target customers and differentiate your hair extension business in a crowded market.

Social Media Marketing

In today’s digital age, social media marketing plays a crucial role in promoting and growing a hair extension business. Utilizing social media platforms like Instagram, Facebook, and TikTok is essential for showcasing your products, engaging with customers, and building brand awareness ( Keegan Edwards ).

To effectively leverage social media for your hair extension business, consider the following strategies:

• Create high-quality content: Post visually appealing images and videos of your hair extensions, demonstrating their quality and versatility. Showcasing before-and-after transformations and styling tutorials can also engage and inspire your audience.
• Engage with your audience: Respond to comments, direct messages, and inquiries promptly. Interact with your followers by asking questions, running contests, and featuring user-generated content.
• Collaborate with influencers: Partnering with influencers in the beauty and hair industry can help expand your reach and credibility. Seek collaborations with influencers who align with your brand values and have an engaged following.
• Utilize hashtags: Research and use relevant hashtags in your social media posts to increase visibility and attract potential customers who are searching for hair extensions.
• Consistency is key: Regularly post content to maintain a consistent presence on social media. Develop a content calendar and schedule your posts in advance to ensure a steady flow of engaging content.

By effectively utilizing social media platforms, you can showcase your hair extension products, engage with your target audience, and build a strong online presence for your business.

In addition to brand story development and social media marketing, there are other marketing strategies and tactics that you can explore to further promote your hair extension business. These may include influencer marketing, search engine optimization (SEO), content marketing, and email marketing. Tailor your marketing strategies to your target audience and continuously analyze and adapt your approach based on their feedback and market trends.

Pricing Strategies

When it comes to running a successful hair extension business, implementing effective pricing strategies is essential. Understanding costs and setting appropriate profit margins are key components of creating a sustainable and profitable business model.

Understanding Costs

To establish a solid pricing strategy, hair extension specialists must have a clear understanding of their costs. This includes factors such as the wholesale cost of hair, color services, installation expenses, and maintenance costs ( Covet & Mane ). By accurately calculating these costs, you can ensure that your pricing structure covers all necessary expenses and allows for a reasonable profit margin.

It’s important to consider not only the direct costs associated with the hair extensions themselves but also the labor involved in installation and maintenance. By factoring in all costs, you can set prices that accurately reflect the value you provide to your clients.

Setting Profit Margins

Setting profit margins is a critical aspect of pricing strategies for hair extension businesses. It involves finding a balance between profitability and client satisfaction. One approach is to establish profit margins that consider both the investment in the extensions and stylist compensation ( Covet & Mane ). This can be achieved through à la carte pricing or comprehensive packages, depending on your business model and target market.

Transparency is key when communicating pricing to clients. Clearly outline the costs of each service and be transparent about both the investment and the value they will receive. This helps build trust with your clients and ensures they understand the worth of the services you provide.

You should also take into account the quality and value of the hair extensions you offer. Premium hair extensions should be priced accordingly to reflect their higher quality and communicate value to clients. By setting appropriate profit margins, you can ensure that your business remains sustainable and continues to thrive.

Finding the right pricing strategy in the hair extension industry requires a careful balance between costs, labor, and the value delivered to clients. By taking into account the costs of each weft of hair, color services, installation, and maintenance, you can establish thoughtful pricing that supports a profitable and successful hair extension business.

Remember to regularly review and reassess your pricing strategy to ensure it remains competitive and aligned with market trends. By continuously evaluating your costs and profit margins, you can make informed adjustments to your pricing structure and maintain a financially healthy business.

Financial Planning

When starting a hair extension business, careful financial planning is essential for long-term success. This involves estimating startup costs and securing funding sources to ensure smooth operations. Let’s explore these two crucial aspects of financial planning in detail.

Estimating Startup Costs

Estimating the startup costs for a hair extension business is a critical step in the planning process. It helps determine the initial investment required to get the business up and running. Several factors should be taken into account when estimating these costs.

• Inventory : This includes the cost of hair products, extensions, or wigs that will be offered to customers.
• Website Development and Hosting : Expenses related to creating and maintaining an online presence, including website design, domain registration, and hosting services.
• Marketing and Advertising : Costs associated with promoting the business, such as branding, social media marketing, and advertising campaigns.
• Ongoing Expenses : Consider expenses like rent or mortgage payments, inventory replenishment, employee salaries (if applicable), marketing and advertising, and utilities.
• Equipment and Supplies : Include the cost of styling tools, chairs, mirrors, and other necessary equipment to provide quality services.

It is crucial to have enough capital to cover both startup costs and ongoing expenses for at least the first six months of operation. This allows for a buffer during the initial stages of the business. If additional capital is needed, financing options such as business loans, lines of credit, or crowdfunding can be explored ( LinkedIn ).

Securing Funding Sources

Securing funding sources is an important step to ensure that the necessary capital is available to launch and sustain the hair extension business. Here are some potential funding options to consider:

• Personal Savings : Utilizing personal savings is a common way to fund a hair extension business. This allows for full control over the finances and avoids additional debt.
• Credit Cards : Some entrepreneurs may choose to use credit cards to cover initial expenses. However, it’s important to carefully manage credit card usage and consider the interest rates associated with this form of financing.
• Bank Loans : Approaching banks and financial institutions for business loans is another option. Loan officers will typically review the business plan and assess the company’s ability to repay the loan and interest.
• Angel Investors : Seeking investment from angel investors who are interested in supporting promising startups in the beauty industry can provide additional funding. It often involves giving up partial ownership or offering equity in the business.

When seeking funding, having a comprehensive business plan is crucial. A well-crafted business plan provides a snapshot of the current status of the hair extension company and outlines the future growth plan for the next five years. It should include an executive summary, detailed market research, marketing strategies, financial projections, and a management plan.

By estimating startup costs accurately and securing appropriate funding sources, hair extension businesses can establish a strong financial foundation. This enables them to focus on delivering quality products and services to their customers while working towards long-term growth and success.

Operations Management

In operating a successful hair extension business, effective operations management is crucial. This involves overseeing both short-term processes and long-term goals to ensure the smooth functioning and growth of your business.

Short-Term Processes

Short-term processes play a vital role in the day-to-day operations of a hair extension business. These processes encompass various activities, including sourcing and ordering extensions, marketing, and providing consultations. By efficiently managing these processes, you can ensure the seamless delivery of products and services to your customers.

Sourcing high-quality hair extensions is paramount to the success of your business. Partnering with reputable suppliers like Ab Extensions, who offer a wide range of hair extension choices with over 30 colors available, ensures that you can cater to diverse customer preferences and needs ( AB Extensions ). Implementing effective inventory management practices will help you maintain optimal stock levels, ensuring you can meet customer demands without excess or shortage.

Marketing is another critical aspect of short-term operations. Leveraging social media platforms and digital marketing strategies can help you reach a wider audience and build brand awareness. By developing a compelling brand story that resonates with your target market, you can differentiate your business from competitors and attract potential customers.

Providing personalized consultations is an essential service in the hair extension industry. By offering expert advice and guidance, you can assist customers in selecting the most suitable extensions for their needs. This personalized approach enhances the overall customer experience and builds trust, increasing the likelihood of customer satisfaction and loyalty.

Long-Term Goals

In addition to managing short-term processes, it is essential to establish long-term goals for your hair extension business. These goals provide a roadmap for growth and sustainability. Consider setting milestones such as reaching sales targets, expanding to new locations, or introducing new product lines.

Long-term goals may also encompass aspects such as professional training and education. Offering training courses for hair extension technicians, like Ab Extensions, allows you to share your expertise and contribute to the development of professionals in the industry ( AB Extensions ). This not only enhances the reputation of your business but also establishes it as a trusted authority within the industry.

To effectively manage long-term goals, it is crucial to regularly assess and review your progress. By monitoring key performance indicators (KPIs) such as sales growth, customer retention rates, and market trends, you can make informed decisions and adjust your strategies accordingly.

By focusing on both short-term processes and long-term goals, you can ensure the efficient and sustainable operation of your hair extension business. Implementing effective operations management practices will enable you to provide exceptional products and services to your customers while positioning your business for long-term success.

Customer Experience

In the hair extension business, creating a positive customer experience is essential for building customer loyalty and establishing a strong reputation. Focusing on exceptional service and personalized attention can set your hair extension business apart from the competition. This section will explore strategies for building customer loyalty and providing exceptional service to your clients.

Building Customer Loyalty

Building customer loyalty is crucial for the long-term success of your hair extension business. By cultivating strong relationships with your clients, you can increase customer retention and encourage repeat business. Here are some effective strategies for building customer loyalty:

Exceptional Customer Service : Providing exceptional customer service is key to creating a positive experience for your clients. Respond promptly to inquiries, address concerns and complaints promptly, and go above and beyond to exceed expectations. By consistently delivering exceptional service, you can build trust and loyalty with your clients.

Personalized Consultations : Offering personalized consultations allows you to understand your clients’ unique hair needs and preferences. Take the time to listen to their goals, provide expert advice, and recommend suitable hair extension options. This personalized approach shows that you value their individuality and helps create a customized look tailored to their desires.

Rewards Program : Implementing a rewards program can incentivize repeat business and enhance customer loyalty. Consider offering rewards such as discounts on future services, free maintenance appointments, or exclusive access to new products or services. Providing personalized rewards based on your clients’ preferences and purchase history can make them feel valued and appreciated.

By focusing on these strategies, you can foster strong relationships with your clients and create a loyal customer base. For more marketing strategies to grow your hair extension business, check out our article on hair extension business tips .

Providing Exceptional Service

Exceptional service is a cornerstone of a successful hair extension business. By going above and beyond to provide a memorable experience, you can leave a lasting impression on your clients. Here are some ways to provide exceptional service:

Comprehensive Hair Treatments : Offer a range of all-natural hair treatments that promote hair health and vitality. Consider providing treatments such as urgent repair treatments or scalp facials to address specific hair concerns and enhance the overall hair care experience. Highlight the benefits of these treatments to your clients and explain how they can improve the longevity and quality of their hair extensions.

Personalized Consultations : Take the time to understand your clients’ hair needs and preferences through personalized consultations. Engage in meaningful conversations, ask questions, and actively listen to their concerns and goals. By tailoring your services to their specific needs, you can create a unique and satisfying experience.

Value-Added Extras : Consider offering value-added extras that enhance the overall service. For example, you could provide complimentary scalp massages, customized hair care routines, or educational resources on hair maintenance and styling. These extra touches demonstrate your commitment to your clients’ hair health and contribute to an exceptional overall experience.

Remember, exceptional service extends beyond the salon experience. Maintain open lines of communication, follow up with your clients, and provide ongoing support and guidance. By consistently providing exceptional service, you can build a loyal customer base and establish a strong reputation in the hair extension industry.

In conclusion, building customer loyalty and providing exceptional service are critical components of a successful hair extension business. By prioritizing your clients’ needs, delivering outstanding service, and going the extra mile, you can create a memorable experience that keeps your clients coming back.

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How To Write a Business Plan for Hair Extension Business in 9 Steps: Checklist

By henry sheykin, resources on hair extensions.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

If you're looking to start a hair extension business, now is the time to do it. The hair extension industry is growing rapidly, with a global market size of $3.7 billion in 2021 and is projected to reach $5.3 billion by 2027, with a compound annual growth rate of 5.1%.

However, you can't just jump into it without a solid plan. Taking these essential 9 steps can help ensure your hair extension business is a success:

• Conduct market research
• Analyze competition
• Define target audience
• Determine startup costs
• Establish a brand name and image
• Create a pricing strategy
• Develop a marketing plan
• Select a business location
• Hire staff or determine staffing needs

By following these steps and developing a detailed business plan, you can lay the foundation for a successful and profitable hair extension business.

Conduct Market Research

Before starting any business, it's important to gain a deep understanding of the market you're entering. Conducting market research helps you identify your target audience, understand their needs, and assess the competition. Market research can also help you identify industry trends and opportunities to differentiate your business from others.

To conduct market research for your hair extension business, start by identifying the key players in the industry. This includes other hair extension boutiques, as well as beauty salons and online retailers that sell hair extensions. Look at their pricing, services, and marketing strategies to see how they differentiate themselves from each other.

Next, identify your target audience. This might include women who wear hair extensions regularly or those looking for a specific style or quality of hair extension. Consider their age, location, and income level to determine how to appeal to them.

Once you understand your competition and target audience, it's time to assess the demand for your business. Look at search engine data and social media metrics to see how many people are searching for hair extension services. Also, consider conducting surveys or focus groups to get a better understanding of what your potential customers are looking for.

Market Research Tips:

• Use online tools like Google Trends and SEMRush to research search engine traffic for hair extension keywords.
• Look at social media pages of your competition to understand what content is resonating with potential customers.
• Consider offering discounts or free services to customers in exchange for feedback to help you better understand your target audience's needs.

By conducting thorough market research, you'll be able to create a business that is tailored to the needs and desires of your target audience. This will help you differentiate your business from others in the industry and create a strong brand that resonates with customers.

Analyze Competition

To succeed in the hair extension business, you need to analyze your competition thoroughly. Analyzing your competition means researching other hair extension businesses in your desired location and studying how they operate. This research can help you identify the strengths and weaknesses of your competitors so you can create a strategy to gain a competitive advantage.

The following steps will help you analyze your competition effectively:

• Identify your competitors: Start by making a list of all the hair extension businesses in your area and their location. This can be done through online research, local directories, and other online databases.
• Research their products and services: Visit your competitor's websites and social media pages to study their products and services. Analyze their pricing strategies, product quality, and range of services.
• Analyze their target audience: Identify their target audience by studying their marketing strategies and customer reviews. You can also gain insight by following their social media and e-commerce activities.
• Study their marketing strategies: Analyze their marketing strategies to identify their strengths and weaknesses. Look at the types of media outlets they use to promote their business, such as social media, email marketing, and PPC campaigns.
• Examine their customer reviews: Look for customer reviews on the websites of your competitors. These reviews can give you insight into their strengths and weaknesses, and you can use this information to improve your own business model.
• Use competitor SWOT analysis to identify the strengths, weaknesses, opportunities, and threats in your market
• Attend local trade shows, conferences, and industry events to learn more about your competitors and the industry trends
• Get feedback from your customers to determine how your competitors are performing in areas such as pricing and customer service.
• Create a differentiation strategy that highlights your unique value proposition compared to your competitors

Define Target Audience

When starting a hair extension boutique business, it is important to define your target audience. Your target audience refers to the group of people who are most likely to purchase your products and services. To identify your target audience, you need to consider factors such as age, gender, income, interests, and location. This information will help you tailor your marketing strategies and products to meet their needs and preferences.

Important factors to consider when defining your target audience include:

• Demographics such as age, gender, income, and location
• Interests and hobbies
• Pain points and challenges they face when it comes to hair care
• Preferred communication channels

Tips for Defining Your Target Audience:

• Conduct a survey or focus group to gather insights on your potential customers' preferences and needs
• Research your competitors' target audience and identify gaps in the market you can cater to
• Consider using social media analytics tools to gather data on your target audience's behavior and preferences

For a hair extension boutique, your target audience will most likely be women aged between 18-45 years old who are interested in hair care and beauty. They may have experienced hair loss, have a desire for longer or fuller hair, or simply want to switch up their hairstyle often. They are also likely to be active on social media platforms like Instagram and Pinterest, which you can leverage for marketing purposes.

Once you have defined your target audience, you can tailor your marketing efforts to reach them effectively. For instance, you can create social media campaigns that showcase your hair extensions on models who fit your target audience demographic. You can also use targeted advertising to reach people in your target location, age, or interest group.

By defining your target audience in the early stages of starting your hair extension business, you set yourself up for success by providing products and services that meet their needs and preferences.

Determine Startup Costs

Before starting a hair extension business, it is important to determine the startup costs needed to launch the venture. This involves considering all the resources required to get the business off the ground. As a hair extension boutique, some of these costs will include:

• The cost of purchasing hair extensions in various textures, colors, and lengths
• The cost of equipment and supplies needed for in-salon services, such as application tools, cutting and styling equipment and products, and other essentials
• Rent or leasing charges for a physical location, if a brick-and-mortar store is being established
• The cost of marketing and advertising efforts, including website development, social media management and other promotional efforts
• Insurance coverage for both the business and any employees who will be hired
• Legal fees, including the costs associated with obtaining necessary business licenses and permits
• It is important to set aside funds for unexpected expenses that may arise during the startup phase.
• Consider starting with a modest inventory and gradually expanding as the business grows, to keep costs in check.

To get a precise estimate of start-up costs, consider consulting with relevant experts such as accountants or business consultants who have experience in the hair extension industry. It is advisable to create a contingency budget for unexpected costs such as delayed product delivery, equipment mishaps, and more. Once the start-up costs have been fully determined, it will become easier to raise the necessary funds from various available sources.

Ultimately, determining the start-up costs helps to create a clear picture and understanding of the resources required to bring the hair extension boutique business to life. Proper planning and budgeting are essential to giving the business the best chance of success.

Establish A Brand Name And Image

Creating a strong brand is essential for the success of any business, including a hair extension boutique. Your brand name and image should effectively convey the unique value proposition of your business and attract your target audience. Here are some important steps to establish a brand name and image for your hair extension business:

• Choose a memorable and relevant business name: Your business name should be easy to remember and relevant to the hair extension industry. Consider a name that reflects the quality, uniqueness, and personality of your brand.
• Create a distinct visual identity: Your visual identity should include a logo, color palette, typography, and imagery that differentiate your brand from competitors. Consider hiring a professional graphic designer to create a visually appealing and consistent brand image that resonates with your target audience.
• Develop a brand personality: Your brand personality should reflect the values, tone, and style of your business. Consider your target audience and develop a brand personality that aligns with their interests and needs.
• Establish your brand voice: Your brand voice is the tone and style of communication that you use to interact with customers. Consider developing a unique and consistent voice that reflects your brand personality and resonates with your target audience.
• Create a brand style guide: A brand style guide is a document that outlines the visual and written guidelines for using your brand name, logo, colors, typography, imagery, and voice. Consider creating a brand style guide to ensure consistency and clarity across all marketing channels and customer touchpoints.
• Get feedback from your target audience on potential brand names and visual identities.
• Conduct research on your competitors' brand names and imagery to differentiate your brand.
• Consider hiring a branding agency to develop a comprehensive brand strategy and identity.
• Use social media to build brand awareness and engage with your target audience by sharing high-quality content and responding to their comments.

Create A Pricing Strategy

Setting the right price for your hair extension services is crucial for the success of your business. It is important to keep in mind that price is not the only factor that drives customer’s decision-making process, but it is a significant one. Therefore, you need to ensure that your pricing strategy reflects the value of your services and meets the needs of your target audience.

To create a pricing strategy, start by assessing your costs. You need to understand how much your business operates every month, including rent, utilities, materials, and wages. Once you have a clear understanding of your operating costs, you can determine how much you need to charge per service to break even.

Consider the following tips when creating a pricing strategy for your hair extension business:

Know Your Value

Do not undervalue your services. Make sure that your prices reflect the quality of your work and your expertise.

Be Competitive

Research the pricing of your competitors in the same market and try to match or offer slightly lower prices to attract clients.

Offer Packages

Create discounted packages for clients who want to purchase multiple services. This approach can encourage clients to choose your business over competitors.

Think About Add-Ons

Create additional services, such as styling, coloring, and maintenance, that can be bundled with your extension services. This approach can help boost your revenue, and provide more value to the clients.

Keep Track of Your Revenue

Regularly check your monthly revenue to ensure that your pricing strategy is effective. If not, revisit your pricing model and make necessary adjustments.

In conclusion, creating a pricing strategy for your hair extension business requires careful consideration. By understanding your costs, knowing your value, and analyzing your competition, you can create a pricing strategy that reflects the value of your services and meets the needs of your target audience.

Develop A Marketing Plan

Now that you have established your brand and pricing strategy, it's time to develop a comprehensive marketing plan. Your marketing plan will help you reach your target audience, generate awareness for your brand, and ultimately, drive sales. Here are some important steps to keep in mind while developing your marketing plan:

• Identify your target audience: Your marketing plan should be tailored to your target audience. This includes their age group, income, interests, and lifestyle. Understanding your target audience will help you create marketing campaigns that resonate with them.
• Set clear objectives: Establish clear goals and objectives for your marketing campaigns. This includes the number of sales you aim to achieve, the number of new customers you want to attract, and the amount of website traffic you hope to generate.
• Determine the best marketing channels: There are several marketing channels you can use to reach your target audience, such as social media, email marketing, influencer marketing, and advertising. Determine which channels are best suited for your business, and create campaigns based on your objectives.
• Create compelling content: Make sure you create compelling and visually appealing content that grabs your target audience's attention and drives engagement. This includes high-quality images and videos showcasing your products and services.
• Track and analyze your performance: Make sure you track and analyze the performance of your marketing campaigns. This will help you identify what's working and what's not, and make adjustments accordingly.
• Offer discounts and promotions to new customers to encourage them to try your hair extensions and salon services.
• Partner with social media influencers and celebrities to promote your brand and share user-generated content.
• Host events such as a launch party or a pop-up shop to generate buzz and create an in-person experience with your brand.

A successful marketing plan takes time and effort, but it's worth it to reach your target audience and grow your business. By following these key steps and tips, you will be well on your way to creating a successful marketing plan for your hair extension business.

Select A Business Location

One of the key factors that can greatly impact the success of your hair extension boutique is the location you choose for your business. When selecting a business location, there are several important factors to consider.

1. Visibility: Your hair extension boutique should be located in an area that is easily visible and accessible to potential clients. Locations such as high-traffic areas or busy shopping centers can be a great option as they attract a large number of potential customers.

2. Competition: Be aware of the competition in the area. You don't want to be located too close to existing hair salons that offer similar services. It is important to select a location where you can differentiate your brand and stand out in the market.

3. Parking: Ensure there is ample parking space for your clients. Clients shouldn't have to spend time looking for a parking spot or have to pay for parking. Consider a location that has a parking lot or offers free on-street parking.

4. Demographics: Consider the demographics of the area you are considering. Are there people that match your target audience in that location? Are they interested in hair extension services?

5. Lease Agreement: Before finalizing any business location, review the lease agreement carefully. Take note of any additional costs such as utilities, maintenance fees, or other fees that may be included in the rent.

• Visit potential locations at different times of the day to observe traffic flow and parking availability.
• Consider renting a space in a building where complementary services such as a nail salon or makeup studio are offered. This could help attract new clients.
• Contact the local chamber of commerce or city government to see if they offer any incentives for opening a business in a certain area.

Overall, finding the right location for your hair extension boutique requires careful consideration and research. Take time to understand the needs and preferences of your target audience and consider all logistical factors involved in running a successful business. With the right business location and an effective marketing strategy, your hair extension boutique can grow and thrive in the competitive beauty industry.

Hire Staff Or Determine Staffing Needs

Once you have established your business location, it is important to consider who will be running your operations. Will you be handling all aspects of the business yourself or will you need a team to support you? Determining staffing needs is an essential step in building a successful Hair Extension Business.

Tip 1: Start by outlining the role and responsibilities for each position required by your business. This will help you identify the specific skills and experience needed to fill these positions.

• Hairstylists
• Retail Associates
• Administrative Staff
• Marketing Specialists

Tip 2: Consider hiring individuals who have experience in the hair extension industry. They will have the necessary skills and knowledge to help you build a successful business.

Tip 3: Determine a budget for salaries and benefits to ensure that your business attracts and retains the best talent in the industry.

Tip 4: Develop an employee handbook that outlines your business standards and practices. This will ensure that all staff members follow the same processes and practices.

Tip 5: Once you have hired your staff, provide them with training and development opportunities to keep them motivated and up-to-date with industry trends and best practices.

Tip 6: Consider implementing a performance review process to monitor staff performance and identify areas for improvement.

• One-on-one coaching and feedback sessions
• Performance evaluations based on specific job criteria
• Reward and recognition programs
• Training and development opportunities

By hiring qualified and experienced staff members, you will be able to provide high-quality services and establish a loyal customer base. Remember that your staff members are the face of your business, so it is important to invest time and resources into hiring and training the best individuals for the job.

Creating a business plan for a hair extension boutique is crucial in ensuring its success. Conducting market research, analyzing competition, defining target audience, determining startup costs, establishing a brand name and image, creating a pricing strategy, developing a marketing plan, selecting a business location and determining staffing needs are essential steps in creating a comprehensive business plan.

By following these steps, a hair extension boutique can create a differentiated brand experience that utilizes innovative digital marketing, celebrity endorsements and influencer partnerships, while offering high quality products and a range of services to cater to clients' needs.

By following this checklist, entrepreneurs can create a solid business plan that helps them achieve their goals and build a successful hair extension boutique.

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The essential guide on how to make good selling hair extensions business plan

Hair extension could be a wise choice for running a business as it is not simply a short term instant but a long run business that requires dedication and perseverance. Nowadays, there have been various kinds of hair extensions with different styles, from natural wavy, kinky, to straight, along with different sources such as Brazil,  Peru or some Asian countries like China, Cambodia, Vietnam. This item has a very high demand for different reasons so this makes hair extensions business are terribly profitable. This industry is now becoming more and more massive and a business that brings profits to the businessperson. In order to own and run a profitable hair extension business, you need to research and have great enthusiasm. A selling hair extensions business plan is an indispensable part of this journey. In this guide we’ll attempt to modify a business set up for hair extensions, presenting the steps and providing some best hair extension suppliers. Hopefully, the guide on selling hair extensions business plan provides you insight as well as motivation in getting closer steps your dreams and your abundance. And don’t forget to feature a twist to the setup, which would be a key part to success in business.

What is a business plan?

Business Plan is a document that outlines the business process of a company or business in a certain period of time. This plan can include orientations, goals, sales plans, marketing plans … Business plans are set up by business owners or executive directors, marketing directors or people with relevant positions. The more detailed and specific the plan’s content is, the higher its ability to materialize. The business plan has many different types, as long as it is possible to simulate the future of the company or business. Include key issues such as resources, finance, sales & marketing strategies. This helps businesses prepare risks, challenge, and welcome opportunities. In other words, the business plan is the goal, the way of the country is set up by companies and businesses from the beginning of the sales campaign to bring the best business results.

Why do you need to make a selling hair extensions business plan?

First of all, let’s talk about the need for selling hair extensions business plan. As mentioned above, the business plan plays an important role in business strategies. A proper business plan will help the leader: – Make accurate decisions in business. – Successful sales strategy – Clear business guidelines

The business plan of the business is like a map for you to travel to a certain country. A daily saying by economists and managers as well as business owners is: “If the business fails to plan, it plans to fail” (If the business fails to plan, then the business has set up a plan for failure already. This statement covers all the meanings of the need for business planning.

If you don’t have a good business plan, no matter how great your business ideas are, it’s hard to succeed, even a heavy failure.

A good selling hair extensions business plan not only determines the success of making the original business idea a reality but also helps you maintain your focus after you succeed.

Things to consider when getting Started Selling Hair extensions business plan

An effective choice which requires the least cost to start this business is an online store, which can effectively help to reduce the cost of renting some stores and mainly helps to sell the hair products basing on the power of online marketing. However, you should not let yourself under control of the pressure from an online store. It is much simpler than it might appear, and can totally start selling your products on some channels of social media. A lot of successful hair stories can be your example, and almost all the owners had no experience in IT at first now have built the brightening hair business empires just by with first small steps. A complete selling hair extensions business plan should include the following six basic steps:

Your own business idea

The first and most important thing is a business idea. You have to have business ideas in your head and think carefully about those ideas. In history, the idea, whether crazy or great, has the potential to succeed. For example, Bill Gates gave up his university to start a company. At that time, many people considered it crazy, but in the end, everyone knew his success. A good selling hair extensions business plan really needs this thing.

Set goals and objectives for selling hair extensions business plan

These are the results that business ideas need to achieve. You will have to answer the following questions: What will you gain from your business in terms of time, money and experience? How to measure the success of that business (eg total revenue, net profit, how many employees, how much market share). How long will it take to measure that level of success (one year, two years or five years)?

Setting goals and achieving results can be encapsulated in SMART (smart), where S is Specific (Specific), M is Measurable (measurable), A is Achievable (Can be achieved) ), R is Realistic and T is Timely (duration). This will strengthen your selling hair extensions business plan a lot.

Market research and analysis

To ensure a successful business and make the most effective selling hair extensions business plan, it is necessary to organize market research and analysis. Consider whether there are companies and organizations that have been doing business in that area, how successful they are, who their customers are, the needs of the future market like that… If you do not have expertise in the field of market research and analysis, it is best to go to a consulting firm. The consulting company will provide you with all the research and market analysis information with your order content.

SWOT – Strength, weakness, opportunity and Threats analysis

A complete selling hair extensions business plan is not possible without this thing. More than anyone else, you must know your strengths and weaknesses when doing that business goal. For example, if you are a computer expert and you want to do business in the computer field, it is a strong point in your field of business, but the weakness may be that you do not have management experience, marketing experience. … Market analysis also helps you predict the opportunities and challenges that threaten the success of that business idea when you start working.

Plan your marketing

The strategies you will take to entice customers and, more importantly, keep customers when you use your products and services. You should always ask the question: how do customers know their products and services and which marketing strategies are best to do so for your selling hair extensions business plan. No matter how good your products and services are, it will be meaningless if no one knows your business.

Financial plan

What financial resources to finance the selling hair extensions business plan, such as loan capital, owner’s capital and how will those funds be used? Many entrepreneurs believe that financial planning is the most important decision of the business.

A sample of selling hair extensions business plan for you

– Total cost: This will be your initial investment which is at least $1000 – $2000, including + Store rent costs: almost all contracts have to be signed at least 1 year. + Expenses for counters, glass cabinets, mirrors, counseling desks … + The cost of initial purchase due to the inability to buy products for the first time + Cost for hiring 1-2 employees in 2-3 months. However, if the store is small, the owner can sell and manage to save costs in the first stage + Contingency expenses in the first 3 months of business -> Preparation time: about 1 month – Staff (if any): + Need to recruit employees knowledgeable about beauty care, especially hair extensions and know how to consult costumers + Ability to communicate + Have a great knowledge about hair extensions and love beauty work

– Making sales and marketing plan:

+ Researching the market demand around the sales area, researching competitors and selling prices in the expected business area;

+ Sales target: estimate revenue, cost, monthly profit;

+ How to advertise, attract customers with social media, websites (if possible), …

– Skill:

+ Manage display and memorize items that you do business: neat and logical arrangement  will help you save time searching as well as periodic inventory

+ Communication: customers often pay attention to sales attitudes of shopkeepers or employees. Therefore, it is necessary to show enthusiasm and fun when selling goods

+ Some kinds of hair extensions often cause allergies so employees need to handle such situations so as not to discredit the store. For example, it is possible to instruct customers to use another type of hair extensions to combat allergies or contact some centers, hospitals … for proper diagnosis.

– Experience:

+ You must be knowledgeable about the use of hair extensions; how to use hair extensions, etc.

+ Also you need to have experience with hair extensions for men, children, older people … because customers are often confused about choosing which products are suitable.

– Source: + Trading in imported hair extensions: Aliexpress, DHGate, Amazon, etc. + A number of domestic hair extensions production companies and establishments such as Private Label Extensions, Airy Hair, etc.

+ Some foreign hair extensions brands have factories or distribution centers in your country.

Stephanie is a hair specialist at Belady Hair Factory, a high-end hair distributor located in downtown Toronto. She is a trained cosmetologist and has been with the company for over five years. Stephanie has vast knowledge in hair care and styling and can provide clients with everything from classic to trendy looks. She is also knowledgeable about the different products in the market and can help clients choose the right one for their hair type. Full her bio .

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Any Ideas On Selling Hair Extensions Business Plan? Read This!

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Human hair extensions now are the best-hunted item for women as they help wearers achieve gorgeous hair instantly. There is a wide range of extensions available on the market, choosing clip-ins, bundles, or closures, it’s all up to you. Because human hair is flexible, durable, and looks more natural, it is preferred than the synthetic hair ones. If you are looking to start a business to make extra money, consider selling human hair extensions. Before taking this business, you need to have a selling hair extensions business plan . Here they are: 

Selling hair extensions business plan

Determine the direction your hair company will go for.

Bear in mind that a company could not survive for a long time if it did not have a target and mission. It means that before starting your hair extension entrepreneur, create a plan that indicates how you operate and a simple idea about your business. It is necessary to determine the types of hair extensions you sell and service you are going to provide. Give a detailed description of customers who you want to aim for. Even a careful plan can estimate how much money can you make selling hair extensions . You should enhance the hair extensions marketing plan and increase the quality of goods if you want to export hair. 

To learn the basics about hair extensions, you need to read books on cosmetology and hair care tips. Or join several hair care forums on Google and consult licensed hairdressers to learn about real human hair systems. Let’s take Layla wholesale hair vendor for example. While Brazillian and Indian hair are taking clients by storm, they sell Vietnamese and Cambodian hair of good quality at affordable prices. Hence, please discuss the orientation carefully in your selling hair extensions business plan .

About financial

Remember that you are planning to sell hair extensions, so fund-raising is inevitable. It comes to the question “how much money do you need to start your business?” It depends on you and your budget. You can seek a bank loan or find grants for hair extension business to secure funds. Make sure that you know how to allocate that money properly.  

Before investing in hair extension business for sale , you must study the places providing hair. It is it far from your area? How much it will cost to deliver human hair extensions? Also, you must try to find and figure out how much human hair extensions will cost you to buy. Are you ready to face these challenges when starting your hair business? 

Choose sales medium

A good selling hair extensions business plan includes a venue and sales medium that your company offers. Would you sell hair online or plan open a brick-and-mortar hair shop? Decide what suits you best. 

You still need to find a venue to store the hair if you are planning to open an e-commerce hair store. Where is the secure storage space to maintain the hair? You can rent a warehouse or commercial storage facility that is near your address and smooth traffic. Let human hair extensions lay flat on the surface or hang it up, avoid bending or twisting them. Try not to ruin the hair. 

How to attract customers

Prepare a selling plan that provides incentives and discounts for consumers to shop with you. Already, there are thousands of hair retailers providing different types of human hair systems, so you will have a hard time when breaking into the market the first time. Have some discounting policies and endow for customers to compete with other sellers. 

Your written business plan should have a part of how to sell hair extensions online pdf . Find out and indicate the customers’ demand for hair extensions in your area. It’s vital to study whether people are willing to purchase human hair replacement systems. Figure out the type of hair your potential clients prefer. Then taking photos and post regularly on your social media accounts, like Facebook, Instagram, Twitter, and more. We are sure that nice pictures and high-quality hair are a powerful weapon to attract followers.

In addition, a selling hair extensions business plan should include hair vendors, human resources, and how to operate. You should invest your time and money if you are going to plan start hair business. 

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Why you need a business plan?  

Hair extensions are a new and hot field in many countries; hence, if you don’t prepare yourself, you may get lost in the maze of hair. Even you are at risk of bankruptcy if you don’t have a detailed plan. 

No matter which types of hair extensions you are focusing on and planning to sell, ensure that you spend time on writing a detailed selling plan. You have to sketch a plan for selling hair extensions. Having a vision statement for hair extension company is vital as it helps you try to achieve the target. There are many things into consideration when it comes to hair systems. 

In conclusion

We want to state that selling human hair extensions is a very profitable business that does not require much working capital. You can start from a small seller and then develo p as a wholesale retailer. Don’t forget to prepare a detailed selling hair extensions business plan if you want to make a side business to make extra money. Also, consult other experts and hairstylists to learn more about the business and hair extensions before launching your business.

Now, it’s time for you to practice and write a business plan. If you have not found any hair vendors, don’t hesitate to contact us . Layla Hair company has many years and experiences in this field and only sell human hair products. We provide an array of human hair extensions, including hot fusion, hair weaves, hair bundles, and so on. Trust us – our human hair replacement systems at the top-notch quality will satisfy you as well as your customers. Don’t buy hair from unreliable sellers as they give you poor-quality hair products and your customers will never back with you. Remember that be a wiser seller when you start your hair business. 

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Hair Extension Business Plan Sample: A Detailed Financial Roadmap

A hair extension business plan sample provides a financial blueprint necessary for success. It outlines startup costs, ongoing expenses, and revenue projections.

Starting a hair extension business requires meticulous financial planning. The beauty industry thrives on innovation and quality, making a well-crafted business plan essential for entrepreneurs venturing into this niche. A comprehensive financial roadmap is a core component of this plan, encompassing everything from initial investment to day-to-day operational costs.

It also forecasts sales and profits, helping investors understand the potential return on investment. This introduction sets the foundation for a deeper exploration into the financial strategy of a hair extension business plan, aimed at guiding entrepreneurs through a lucrative journey in the high-demand market of beauty and personal care products. Ensuring clarity and precision, this plan becomes an invaluable tool for steering the business towards sustainable growth and profitability.

Hair Extension Market Landscape

The Hair Extension Market Landscape remains an ever-evolving facet of the beauty industry. With aesthetic preferences shifting and technological advancements unfolding, understanding the current fabric woven by consumer demands and market trends is crucial for a successful business plan in hair extensions. This deep dive into Current Trends in Hair Extension Demand and insights into Target Demographics and Customer Insights lays out a clear roadmap for entrepreneurs.

Current Trends In Hair Extension Demand

Today’s hair extension market buzzes with varied trends. From celebrities dictating style waves to eco-conscious choices shaping buys, here’s what’s trending:

• Natural hair extensions lead the pack, as clients seek a seamless blend with their own hair.
• Color variety blooms, catering to personal expressions and bold looks.
• Synthetic options , once shunned, rise in quality and popularity for budget-friendly alternatives.
• Online shopping for hair extensions soars, fueled by convenience and broader choices.
• DIY clip-ins gain traction, offering temporary and hassle-free style transformations.

Target Demographics And Customer Insights

Understanding the audience is the key to a thriving hair extension business:

Millennials lead as avid consumers, valuing ethical sourcing. Gen Z follows, craving personalization and vibrancy. Baby Boomers focus on quality, comfortable fits. Insights into these groups shape targeted marketing strategies, ensuring your product meets the perfect audience.

Executive Summary

The Executive Summary of a Hair Extension Business Plan serves as a crucial overview. It gives a snapshot of the entire business roadmap. This section outlines the core components of the business, guiding readers through the company’s foundational goals and projected financial achievements. The summary must be clear, concise, and captivating to set the stage for potential investors and stakeholders interested in the hair extension market.

Company Vision And Mission

The vision sets the course for any business. For a hair extension company, the vision might be to redefine beauty standards with quality extensions. The mission states the company’s purpose, focusing on delivering superior products and exceptional customer service.

Key Objectives And Success Metrics

Defining the key objectives is vital for the road ahead. These might include specific financial targets, market share goals, and customer satisfaction benchmarks. Success metrics enable the company to track progress and steer the business towards its desired outcomes effectively. Examples of these metrics:

• Sales targets: monthly and annual figures,
• Customer retention rates: measured quarterly,
• Market penetration: assessed bi-annually.

Product Line Breakdown

A detailed financial roadmap for your hair extension business is critical. To ensure successful planning, diving into the product line breakdown is essential. Understanding what you’ll offer helps forecast revenue and manage costs effectively. Let’s explore the hair extension varieties and the importance of source quality.

Categories Of Hair Extensions

Your product line is the heart of the business. Here, we break down hair extension categories .

• Clip-ins: These are temporary extensions that users can attach and remove easily.
• Tape-ins: Semi-permanent extensions, secured by taping them between natural hair strands.
• Weaves: Also known as sew-ins, they are attached by braiding the natural hair and sewing the extensions in.
• Pre-bonded: Known for durability, they’re fused to hair using different adhesives.
• Micro-link: Extensions are connected with natural hair through small silicone-lined beads.
• Halo extensions: They rest on the head with a disguised wire, adding instant volume without clips.

Identify what sets each apart and enhances your offerings. Differentiate your inventory to cater to diverse customer needs.

Quality And Sourcing Of Materials

Quality is paramount in hair extensions. Only source from reputable providers to ensure your products last long and look natural.

Choose suppliers who uphold ethical standards in acquiring human hair. Quality sourcing ensures the longevity and reputation of your brand.

Analyzing The Competition

Before leaping into the hair extension market, understanding your competition is crucial. This involves a close look at other businesses offering similar products. By assessing the competition, you better tailor your business to stand out. Let’s dive into the specifics of who you’re up against and what that means for your hair extension enterprise.

Direct Competitors In The Market

To begin, list who your direct competitors are. These are businesses that sell hair extensions just like you. They might be local salons, online stores, or specialized boutiques. Gather data on each, analyzing their product range , pricing , and market reach . Use this information to create a unique angle for your hair extension business.

• Local Salon Brands
• Online Hair Extension Retailers
• Boutique Hair Stores

Competitive Advantages And Challenges

Every business has its strengths and weaknesses. Pinpoint your competitive advantages . These might include superior quality , exclusive products , or excellent service . Acknowledge the challenges you may face, such as market saturation or higher pricing . By recognizing these elements, strategize to capitalize on strengths and mitigate challenges .

Mapping out your competitive landscape prepares you for a successful launch . It helps define your business strategy and sets the groundwork for a thriving hair extension empire .

Marketing And Sales Strategies

Launching a hair extension business takes more than just stocking up on products. A successful launch and sustaining growth require robust marketing and sales strategies. Let’s explore how to effectively brand your business and establish a solid online presence. We’ll also dive into identifying the best sales channels and distribution networks for your hair extensions.

Branding And Online Presence

Establishing a strong brand identity is key to connecting with customers. Your hair extension business’s logo, color scheme, and overall design should reflect what you stand for.

• Develop a catchy brand name that sticks in your customers’ minds.
• Design a professional logo that represents your business across all platforms.
• Create an easy-to-navigate website with clear product images and descriptions.
• Engage customers on social media platforms where your target audience is most active.

SEO is non-negotiable. Optimize your online content to rank higher in search engine results. This will help more people find your business when they need hair extensions.

Sales Channels And Distribution Networks

Choosing the right sales channels can make your business grow fast. Online and offline avenues can both drive sales if you use them wisely.

Building a vast network of distributors can take your products far and wide. A reliable network ensures steady supply and satisfies customer demand.

Partner with salons and beauty professionals to offer your hair extensions to their clientele. It’s an effective way to increase visibility and sales.

Operational Plan

Setting up a plan for daily operations marks the success of a hair extension business. The Operational Plan outlines the physical requirements, such as the location and supplies, and how to manage them efficiently. Let’s dive into the core components that will sustain day-to-day functions and growth.

Facilities And Location Strategy

Finding the right spot is key for a hair extension business. It needs good visibility and access for clients. A strategic location attracts more customers and makes supply deliveries smoother.

• Start by choosing a high-traffic area . Busy malls or fashion districts fit well.
• Ensure ample space for inventory and services . A spacious layout helps.
• Consider ease of parking and public transport access . It boosts client visits.
• Real estate affordability influences the budget. Find a balance between cost and benefits.

Supply Chain And Inventory Management

Manage supplies to meet customer demand without waste. Use smart inventory tactics to keep the best balance of products on hand.

Implementing these strategies will keep your hair extension company ahead of the game. An organized operational plan acts as your roadmap to success.

Financial Projections

Entering the dynamic world of hair extensions requires a keen eye on numbers and a clear financial strategy. Crafting a detailed financial roadmap as part of your business plan is crucial. With a focus on financial projections , let’s delve into the costs to start and the potential earnings for a flourishing hair extension enterprise.

Startup Costs And Capital Requirements

Launching a hair extension business entails several upfront expenses. Understanding these costs is the first step to a sturdy financial foundation. Below is a breakdown:

Gathering sufficient capital to cover these costs is vital. Options may include personal savings, loans, or investors. Planning prevents financial hiccups as you launch.

Revenue Streams And Profitability Analysis

A diverse range of revenue streams bolsters profitability. Typical sources include:

• Direct Sales: Selling extensions to consumers.
• Wholesale: Bulk sales to salons or retailers.
• Online Sales: E-commerce through your website or platforms.
• Custom Orders: Tailored solutions for specific client needs.

Financial success hinges on understanding the balance between revenue and expenses. A profitability analysis aids in forecasting. Consider margins per product and overall operational costs. Here are key points to consider:

• Average markup on hair extensions
• Repeat purchase rates and customer lifetime value
• Seasonal trends and their impact on sales
• Operating costs, including restocking and staffing

Regularly reviewing and adjusting your business model maximizes profit. Precision in financial projections ensures a clear path to success.

Risk Assessment And Mitigation

Launching a hair extension business comes with risks. Understanding and preparing for these risks is crucial. This section explores the potential challenges and outlines strategies to manage them effectively.

Identifying Key Business Risks

Every business faces risks. In the hair extension sector, key risks include:

• Market demand fluctuations: Trends can change fast.
• Supplier reliability issues: Quality and delivery times may vary.
• Competitive pressures: New entrants can alter the market.
• Technological changes: Advances might require investment.
• Regulatory changes: New laws might impact operations.

Mitigation Strategies And Contingency Plans

To handle risks, businesses need plans. Here are strategies to mitigate key risks:

Each strategy should have a contingency plan . If one supplier fails, have others ready. If a product line dips in demand, be prepared to pivot. Regularly update these plans to stay ahead.

Frequently Asked Questions

What is the profit margin on hair extensions.

The profit margin on hair extensions typically ranges from 40% to 150%, depending on quality, brand, and purchasing source. Retailers can achieve higher margins with private labeling and bulk purchases.

How Do I Make My Hair Extension Business Stand Out?

To make your hair extension business stand out, offer unique, high-quality products and personalize services. Engage customers through social media and influencer partnerships. Prioritize excellent customer service and showcase authentic, diverse client testimonials on your marketing platforms.

How Do I Write A Business Plan For A Wig Business?

Start by summarizing your wig business concept. Outline the market analysis, identifying target customers. Detail your marketing strategy and product range. Present a financial plan including projected revenues, costs, and profits. Address management structure and day-to-day operations. Keep each section concise and fact-based.

How Much Money Is In The Hair Extension Industry?

The global hair extension market size is valued at approximately $5 billion as of 2021, with expectations for steady growth.

Crafting a robust hair extension business plan is crucial for success. Our sample offers a clear financial blueprint, guiding you through profit projections and cost analyses. As you prepare to launch or grow your venture, remember this roadmap can pivot your strategy towards profitability and growth.

Start shaping your financial future now and watch your business flourish.

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How to Start a Hair Extension Business in 14 Steps (In-Depth Guide)

Updated:   January 18, 2024

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The hair extension industry is booming. The market reached $4.06 billion in 2022 and is projected to reach $7.9 billion by 2030, according to Fortune Business Insights . More people are turning to clip-ins, tapes, and sew-ins to avoid drastic permanent hair changes.

This comprehensive guide will walk you through how to start a hair extension business. From researching your market and developing a business plan to obtaining a business license and location, establishing supplier relationships, hiring staff, marketing your salon, and managing day-to-day operations.

1. Conduct Hair Extension Market Research

Market research is integral to building a successful hair extensions business. There are two types of market research, primary and secondary. The primary is research you conduct yourself. Secondary is research conducted by a third party.

Market research is important for insight into the hair salon, hair extension, and wig business market. It tells you about potential customers, your local target market, the best places to buy hair extensions, and even the top social media accounts for marketing.

As you develop a business model for your hair extension company, here are some details to recognize:

• Increasing demand for fashionable hairstyles and the flexibility to change styles quickly and easily.
• The rise of celebrity culture and social media influences people’s beauty ideals and desire to emulate celebrity hairstyles.
• More focus on overall appearance and spending on beauty services.
• Advances in extension technology, like hand-tied wefts, tape-ins, and clip-ins that look and feel natural.
• Growing consumer budgets for non-essential beauty services and willingness to pay premium prices for high-quality extensions.

The best opportunities in the hair extension industry include:

• Brick-and-mortar salon businesses that sell and install extensions.
• Specialist extension stylists who offer services independent of the salon.
• Freelance extension application is in demand for events like weddings.
• Selling branded hair extension products through wholesale and e-commerce channels.
• Offering custom extension design services for television, film, theater productions, and cosplay events.

To capitalize on this growing industry, extension salon owners must focus on:

• Stylist education and training
• Competitive Pricing
• Diverse extension options
• Strong customer service
• Consistent marketing

Overall, the hair extension market provides exciting entrepreneurial opportunities for those passionate about the beauty industry. You could even potentially improve the overall appeal of your hair extension business by providing hair braiding services or even wigs since these are also part of the hair industry.

2. Analyze the Competition

Thoroughly analyzing your competition is crucial when starting a hair extension business. This helps you identify how opponents are storing hair extensions, where to buy the best quality hair extensions, whether competitors are using fake or natural hair, and more.

Some ways to check out the local human hair extension businesses include:

• Research existing salons in your geographic area.
• Drive around town and take notes on locations, signage, customer volume, and marketing.
• Search online directories and review sites to see services offered, pricing, ratings, and reviews.
• Visit competitor salons as a secret shopper and evaluate customer service, quality of extensions, and the overall experience.
• Search relevant keywords related to your location and service offerings to see what salons rank highly in local search results.
• Study their websites closely – how optimized are they for SEO? Do they facilitate easy online booking?
• Compare their social media followings and online reviews.
• Sign up for email lists to analyze promotions and offers.
• Examine their overall branding and digital marketing strategy.

By comprehensively analyzing both in-person and online competitors, you gain an accurate picture of strengths, weaknesses, and competitive gaps. You can then refine your business plan and competitive positioning to stand apart. Continuously monitoring competitors even after opening will help you stay ahead.

3. Costs to Start a Hair Extension Business

When starting a hair extension business, carefully estimating costs is essential for securing financing and setting up an effective budget.

Start-up Costs

Start-up costs are the expenses encountered as you start a new business in the hair industry. For a successful hair extension business, you’ll need to spend money on:

• Business licensing – $50-$500 depending on location
• Liability insurance – $500-$2000 annually
• Hair styling equipment like salon chairs ($300-$1000 each), shampoo basins ($200-$500 each), dryer chairs ($200-$600 each), carts, mirrors, etc. Equipping stations for 2-4 stylists could cost $4000-$10,000.
• Hair extension inventory – Budget $2000-$5000 minimum for initial extension stock including tapes, keratin bonds, clip-ins, ponytails, and other styles. Factor in a variety of textures and colors.
• Salon lease deposit – Typically 1-2 months rent; $2000-$5000 for a small shop.
• Salon buildout/renovations like flooring, lighting, and plumbing – $5000-$25,000+ depending on space.
• POS system for appointment booking and retail sales – $50-$150/month
• Website design and development – $1500-$5000 for pro site.
• Marketing materials – $500-$2000 for signage, business cards, flyers.
• Grand opening event – $500-$2000 for refreshments, entertainment, giveaways.
• Professional services like bookkeeping, and payroll admin – $200-$500 monthly.
• Initial product/supply inventory – $1000-$2000 for backbar, salon retail.

Ongoing Costs

Ongoing costs include any expenses encountered throughout the life of your hair business. Some common expenses when you operate your own business include:

• Rent – $1500-$4000 for small leased space. More for purchased property including mortgage payments, property tax, etc.
• Staffing – Hairstylists may be booth renters or employees. Booth rent averages $400-$1000 per station. Employing 2-5 assistants at $15-$20/hour would be $5000-$10,000 monthly.
• Insurance – $150-$600 depending on policy
• Utilities – $300-$800
• Office Supplies/hair products – $500-$1500
• Extension inventory restocking – $500-$2000 to replace sold product
• Marketing expenses like social media advertising or SEO – $300-$1500+
• Credit card processing fees – ~2-4% of revenue
• Accounting fees – $200-$500
• Shop maintenance – $500 miscellaneous repairs/upkeep

Annual expenses:

• Liability insurance renewal
• Licensure renewals – $50-$500
• Continuing education – $100-$500 per stylist
• POS system – $600-$1800
• Accounting software – $300-$1500

Overall, total start-up costs for a small hair extension salon can range from $20,000 to $100,000 based on inventory, location, renovations, and equipment needs. Ongoing monthly expenses will typically cost between $10,000 to $25,000. Carefully estimating expenses and creating a detailed budget is key to success.

4. Form a Legal Business Entity

When starting a hair extension business, one key legal decision is choosing your business structure. The right entity can limit liability and provide tax advantages. Here are the main options:

Sole Proprietorship

A sole proprietorship is the simplest structure. You operate as an individual with pass-through taxation. However, you have unlimited personal liability for debts or lawsuits against the business. This poses risks for a salon as customers could file injury claims related to extension applications.

Partnership

A general partnership lets multiple hair stylists jointly run an extension salon and share profits. Like sole proprietors, partners have unlimited personal liability. Partnerships can also cause issues if a partner wants to exit the business. Overall, sole proprietorships and partnerships provide little liability protection.

Limited Liability Company (LLC)

A better option is forming an LLC (limited liability company). LLCs shield your assets from business liabilities, so extension clients cannot easily sue you personally. LLC profits pass through to members’ taxes, avoiding double taxation. LLCs allow flexible management and ownership structures suitable for a small salon with multiple stylists. Startup costs are low.

S-Corporation

S-corporations also provide liability protection and pass-through taxes. But S-corps have stricter ownership rules requiring shareholders to be U.S. citizens. The formal structure involves more paperwork than an LLC. Overall, an S-corp offers minimal benefits over an LLC for a hair extension business.

C-Corporation

C-corporations let you sell stock and have unlimited fundraising potential. However, C-corps come with double taxation where profits are taxed at the corporate level and shareholder level. More record-keeping and formalities are required. For a small hair extension salon, double taxation and startup costs make a C-corp disadvantageous.

5. Register Your Business For Taxes

An EIN, or Employer Identification Number, is crucial for hair extension businesses to obtain. This unique ID number is used for key purposes:

• Opening a business bank account
• Registering your LLC or corporation
• Filing taxes
• Hiring employees

Essentially it serves as your business’s social security number for interacting with state/federal agencies.

The good news is applying for an EIN is quick and free through the IRS website. Simply go to the EIN Assistant page and select “View Additional Types, Including Tax-Exempt and Governmental Organizations.” Choose “Sole Proprietorship/Individual” or “Partnership” for a simple extension salon.

Follow the steps to enter your personal information, business name and address, reason for applying, and ownership details. Submitting online takes just minutes. You’ll receive an EIN immediately in the form of a 9-digit number.

Registration for state sales tax collection, often called a Seller’s Permit, is also crucial for hair salons selling retail products. Check your state’s website for the proper forms and low registration fees, usually around $10 to $50.

6. Setup Your Accounting

Maintaining accurate financial records is critical for hair extension salon owners. Here are some ways to maintain finances when selling hair extensions as part of your hair business.

Accounting Software

With sales transactions and inventory purchases daily, using accounting software like QuickBooks streamlines tracking income and expenses. QuickBooks connects to your business bank accounts and credit cards, automatically importing and categorizing transactions.

Hire an Accountant

A bookkeeper can handle accounts receivable/payable, bank reconciliations, and produce financial statements for only $300-$500 monthly. Come tax season, an accountant will know industry specifics to maximize hair extension salon write-offs and deductions. They ensure proper sales tax collection and remittance as well.

Open a Business Bank Account

Open a business bank account to keep all personal and professional spending separate. When you own your own hair extension business, you don’t want the IRS to assume any personal spending is happening with company money. It also helps you stay organized come tax season.

Apply for a Business Credit Card

A business credit card is also advised over personal cards. Business cards require your company’s information and do factor in your credit score. Higher limits cater to your operating expenses. Charge all inventory purchases, advertising, software subscriptions, and other costs to this card.

7. Obtain Licenses and Permits

Opening a hair extension salon legally requires obtaining specific licenses and permits. Check with the U.S. Small Business Administration for federal requirements. The SBA also has a local search tool for state and city permit requirements.

At the state level, a cosmetology facility license allows you to operate a beauty salon. States mandate facilities meet certain health codes, provide licensed services, and safely store chemicals. Application fees are typically $50 to $500 depending on location.

A local business license or occupational tax certificate is mandated to legally operate in the jurisdiction. City or county clerks issue fees starting around $30. Some cities have additional industry-specific licenses for salons that regulate sanitation and bonding.

You may also need a fire inspection and health department inspection to get occupancy approval. Any signage for your salon requires a permit as well.

If hiring employees right away, be sure to register for a Federal Employer Identification Number to handle payroll taxes, unemployment insurance, and workers comp.

8. Get Business Insurance

Carrying proper insurance is crucial to protect your hair extension investment from unpredictable events. The right policies can save your company from financial ruin if you encounter mishaps.

Some common scenarios where a lack of insurance could devastate an extension salon:

• A stylist improperly secures a client’s extensions, causing hair loss and scalp irritation. The client sues for injury and emotional damages totaling $50,000. Without liability insurance, you’d pay these hefty expenses out of pocket.
• A plumbing leak overnight floods your salon and ruins $10,000 worth of inventory and equipment. No coverage means eating these replacement costs.
• A burglar smashes your front window and steals $5,000 of product. Insurance helps recoup theft losses.

To avoid such disasters, partner with an insurance broker to purchase recommended policies:

• General liability insurance covers 3rd party injury and property damage claims. Up to $2 million in coverage is recommended.
• Property insurance replaces stolen, damaged inventory and equipment. Get detailed replacement cost coverage.
• Commercial auto insurance protects company vehicles.
• Workers comp insurance covers employee injuries. Most states mandate this coverage.

For comprehensive protection, expect to budget $1,000 to $5,000 annually depending on your policies, limits, deductibles, and provider. Insurance gives peace of mind that accidents and unforeseen events won’t dismantle your salon.

9. Create an Office Space

While your salon will be the main hub, securing office space can benefit your hair extension operation in key ways:

• A private area for bookkeeping, QuickBooks entries, and other admin work. Salon noise and distractions make this challenging.
• Storage room for excess inventory and supplies, removing clutter from the salon floor.
• Meeting space for consultations, hiring interviews, and other appointments. This maintains a professional image.

Here are ideal options to consider:

Home Office

A home office allows you to work from the convenience of home. Expect costs of $100 to $500 to set up a basic desk and supplies in a spare bedroom or basement. While affordable, the home environment poses productivity and separation challenges.

Coworking Office

Coworking spaces like WeWork provide an affordable, professional office environment starting around $300/month. Open work areas, private offices, meeting rooms, and networking events are included. However, coming and going can reduce time at your salon.

Retail Office

If opening a retail salon, secure space with a back office/breakroom. This allows for storage and meetings without a separate lease. However, space within salons is often limited. Expect to pay 10% to 30% more in rent.

Commercial Office

Leasing a private commercial office space offers the most professional setting for meetings and solo work. A basic one-room setup rents for approximately $600 to $1500 monthly. The expense may not make sense for new extension salons.

10. Source Your Equipment

A hair extension salon needs quality styling tools and stations to deliver exceptional service. Not to mention several styles of hair extensions and application products.

From dryers to shampoo chairs, here are the top ways to acquire the necessary equipment:

Buying brand new gives you modern tools in pristine condition. Look to beauty suppliers like Sally Beauty, CosmoProf, and Beauty Systems Group for professional discounts of up to 30% off retail. Online specialty shops like Bangn Beauty also sell salon essentials. Expect to invest $4000-$10,000 in outfitting stations for 2 to 4 stylists.

Gently used equipment through resale saves substantially on costs. Facebook Marketplace and Craigslist frequently list salon chairs, carts, and dryers from stylists upgrading their tools. Expect 50% to 75% off original prices. eBay and OfferUp also connect you to sellers. Inspect secondhand items carefully before purchasing.

Renting equipment avoids major upfront costs while testing different options long-term. Check local classifieds or national rental marketplaces for short-term rentals around $100 to $200 monthly per piece. This helps limit spending as you build your clientele. Just confirm policies for damages.

Leasing through your beauty distributor bundles equipment costs into monthly payments over 3 to 5 years. Zero-down leases start around $150 monthly per styling station. You own the equipment after the term.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for hair extension salons to stand out. A polished brand conveys quality services and helps attract loyal clients.

Get a Business Phone Line

Start with securing a professional business phone number through a provider like RingCentral . Choose a local area code and dedicated line with call routing features to ensure no missed appointment calls. Expect to invest $25 to $50 monthly.

Design a Logo

Designing a logo and brand assets builds recognition. A creative, meaningful logo like an abstract hair graphic or stylized name reinforces your style and specialty. Use a logo maker like Looka to explore affordable options starting at $20.

Ensure brand colors, fonts, and graphic elements align across assets like business cards, email signatures, and signage. This consistency cements your identity.

Print Business Cards

Business cards from Vistaprint make in-person networking easy. Custom cards with your logo, tagline, and contact info cost roughly $20 for 500. Share these during outreach to gain new extension clients. Signage also announces your presence.

Buy a Domain Name

Buy your custom domain name through a registrar like Namecheap for maximum brand potential. A domain like “LuxeLocksExtensions.com” resonates. Expect annual registration fees of around $15. Choose a domain relating to your name or services.

Build a Website

Building a website establishes an online presence and hub for bookings. Using a user-friendly website builder like Wix , you can create a professional site yourself. Select a template, add hair images, service menus, and online booking, and publish for approximately $20 monthly.

Design a Website

Alternatively, hire a freelancer on Fiverr to custom-design a site for around $500. They handle technical aspects while you provide content. This yields a more strategic, optimized website.

12. Join Associations and Groups

Joining relevant associations and online groups can provide invaluable connections and growth for hair extension salons. Surrounding yourself with others in your industry yields mentorship, referrals, and inside knowledge you won’t find elsewhere.

Local Associations

Search for a local beauty or cosmetology association to join, such as the American Association of Cosmetology Salons or the Professional Beauty Association . Memberships start around $50 annually for access to training, discounts, and networking mixers to meet stylists in your area.

Local Meetups

Regularly attending local trade shows and meetups is also advised. Use Meetup to find fellow beauty professionals in your region. Swap business strategies in person at low or no-cost events. Exchanging cards and social followers drives future referrals.

Facebook Group

Facebook groups connect you with stylish communities, both locally and beyond. Join industry-specific groups like Hair Extension Business Secrets – Marketing & Technique Support Group and Hair Extension Business Owners to access thousands of global peers. Get feedback, share experiences, and more at your fingertips.

13. How to Market a Hair Extension Business

Marketing is crucial for any new hair extension salon to create awareness, attract clients, and grow revenue. With the right promotion, you can establish your salon as a top destination for extensions in your area.

Start by tapping your network. Reach out to friends, family, and colleagues and ask them to try your services and provide referrals. Offer 10% off or other perks for word-of-mouth marketing. Satisfied clients are powerful brand advocates.

Digital Marketing

For digital marketing, focus on strategies like:

• Google/Facebook Ads targeted locally to drive website traffic and bookings
• Search Engine Optimization to rank higher in local salon searches
• Customer review generation and management on Google, Facebook, Yelp
• Email marketing with promotions to build your client list
• Instagram feed showcasing extension styles, specials, before/afters
• TikTok videos on extension techniques, behind-the-scenes, transitions
• YouTube tutorials on extension care, styling tips, and client testimonials

Traditional Marketing

Traditional tactics like direct mail, radio, print ads in local magazines, and billboards can also work but may provide a lower return on investment. Consider:

• Grand opening flyers mailed to households in a 10-mile radius
• Local radio spot ads on popular stations
• Ad in city magazine beauty section
• Eye-catching roadside billboard near your location

While digital marketing tends to be more affordable and measurable, explore your options. Geo-targeted Facebook Ads to nearby followers of hair pages generate conversions under $5 per booking. Match tactics to your goals and continuously test new approaches.

14. Focus on the Customer

Providing exceptional customer service is crucial for hair extension salons to gain loyal, happy clients who refer others. How you treat clients directly impacts your reputation and bottom line. Some ways to enhance customer service when you sell hair extensions include:

• For example, carefully listening to desired outcomes during consultations and delivering that experience leaves clients satisfied.
• Sending follow-ups after appointments asking how the extensions are wearing ensures excellent long-term results.
• Resolving any issues quickly, like adjusting an application that didn’t take properly or replacing damaged extensions, preserves your reputation.
• Going above and beyond also delights clients.
• Throwing in free deep conditioning treatments or hair products for regulars shows you value their business.
• Remembering personal details and preferences tailors the experience.
• Consistently delivering 5-star service earns rave recommendations across Google, Facebook, Instagram, and more.

The referral business and return visits generated by stellar customer service provide crucial recurring revenue. This steady stream of clients is any salon’s dream. So never neglect the care you provide customers. Your attention and personal touches create a memorable experience that fosters loyalty and growth.

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Hair Extensions Business Plan Sample

Published Nov.01, 2013

Updated Apr.23, 2024

By: Brandi Marcene

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Table of Content

Hair Extensions Business plan for starting your own shop

Are you thinking about beginning your hair extensions commercial enterprise? If your solution is sure, there’s no better time than proper now. Why the capability is endless. You most effectively need to observe Instagram peers that the hair extensions enterprise plays an important function in this digital age.

Every technology is seeking perfection, whether it be for that each one-vital selfies for social media or the subsequent big circle of the relative’s wedding ceremony. The hair extensions have exploded during the last decade. Influencers have played an indispensable position in their hair extensions tutorials on YouTube, Instagram, Facebook, and Twitter. This isn’t always only a trend; this is here to stay.

There is lots of room for everyone inside the hair extensions world, moreover, within the hair extensions commercial enterprise. The hair extensions enterprise breaks through generational limitations because all people, young, and old want to look and feel accurate. The marketplace itself is tremendous, almost countless. This is due to the fact hair extensions aren’t only for the rich but additionally, all monetary wallet excessive and occasional.

Executive Summary

There is plenty of room for all and sundry within the hair extensions global, moreover, within the hair extensions business. The hair extensions industry breaks via generational boundaries due to the fact everybody, young and old, desires to appearance, and feels appropriate. The market itself is huge, nearly endless. This is because hair extensions are not just for the rich, but all financial pockets excessive and low.

How to start a business?

Starting your very own commercial enterprise usually begins with a great concept of a way to open hair extensions keep. You can also look for some sample of hair extension business plans. Once the seed is sown, pass on to marketplace research for your chosen business concept. You also can search for a pattern business plan for hair extensions shop. Knowing your market is prime to success. Once you have got set up your center market, you may want to ascertain your opening finances and stay with it. Where will your funds for your new venture come from? Locating the proper outlet/belongings is also key to the fulfillment of your investment business plan . The incorrect vicinity can be the demise of any enterprise.

What are the prices concerned in opening an enterprise?

The expenses of taking a walk your business enterprise range appreciably. This will all rely upon the place, hire/rent of assets/outlet, and the fee of preliminary stock. Then you need to don’t forget staffing fees, shipping import, and export expenses.

How to implement business management?

This critical vicinity is vitally vital for the fulfillment of any business. The right management could make an enterprise, and incorrect control can ruin it. Share your vision with your managers/workforce and make them sense part of something excellent. Show them that they may be valued, and you’ll acquire their loyalty. Make them feel crucial. A great supervisor will reap the willpower in their body of workers, consequently decreasing the personnel turnover rate in line with annum. The business can be more efficient, and economic rewards may be better.

What the target of this commercial enterprise?

The Hair extensions Business’s principal target is to deliver hair extensions products to shops huge and small nationally and across the world at a competitive rate offering discounts on standard bulk-buy orders. We wish to face out from the group and offer a wide range of products that exceed our competitors, hence making our commercial enterprise an appealing alternative.

Company Summary

Planning your business.

When you are all set to get into the hair extension business, it is essential to plan everything from skretch. When starting a hair extensions store, the business/startup, Hair extensions store, has engaged a consultant to help effect a business plan initially. Hair extensions store’s cost budget/funds for a startup will be coming from –inheritance and a business plan bank loan .

Define your brand

Hair extensions store’s measuring stick will be its unique approach on how to start a hair extensions store to customer satisfaction and individual personalization based on customer’s needs. No one customer is the same, and they will not be treated generically. We are not just another hair extensions company, we care about our clients, and they can choose tailor-made order strategies personal to their business. ‘Above and beyond’ is our companies’ motto.

How to Promote & Market a business

The promotion and marketing of the Hair extensions store will profoundly engage in social media marketing. Digital marketing is the heart of any successful business today. Instagram, Twitter, Facebook, and LinkedIn will be vital targeted areas. A full-time digital marketing professional will be hired to run this side of the business to maintain its presence online.

Establish a web presence

A brand new website is currently under construction to engage a highly effective web presence. This will engage customers and garner new ones. Customers will be able to order online as well as walking into the store. Thus, attracting a more extensive customer base. Keeping up to date with Google analytics will also be essential to maintain a high search position.

Company Owner

The owner of the hair extensions store is a young woman who studied the industry at University. She comes from a family who has been in the hair extensions industry for two generations and dreamed of one day owning her own hair extensions business. Her knowledge of the hair extensions industry is vast and will compliment her venture much.

Why he/she started the business

Coming from a long line of family business owners, she always knew that she wanted to make her mark on life, be her boss, and create her own brand new company from scratch. With this in mind, the University was her starting point. They need to gain as much knowledge in addition to what she already had to ensure the success of her business.

How the business started

A fortuitous inheritance enables the birth of Hair extensions store along with a small business loan. In addition, with a business partner, consultant, and help from family business owners. The business was enabled.

Products you may get into the hair weave industry, hair vendor are-

• A wide range of skincare products will be available, including vegan selections.
• Various and trusted brands of aromatherapy body oils from leading and well-known brands
• Body lotion for all skin types for both men and women (vegan selections available)
• Specialist foot products for the removal of hard skin.
• Derma wands for anti-aging skin
• Retinal serums
• False eyelashes (stick on and semi-permanent)
• Micro-blading equipment/products
• Hair products, hair dye/bleach/micro rings/micro loops/ hair extensions and wigs
• Hair extensions tools, makeup brushes/hairbrushes/tweezers/hair masks/dye mixing bowls/whisks/microbeads/loops/extension hair tape/wig tape/nail drying gadgets/foot spas/nail polish remover/hair clips/hairbands/trays/trolleys/makeup boxes/ nail boxes/

Marketing Analysis of Hair Extensions Store

Market trends.

The observation of market trends is key to the Hair extensions Shop. Using search engines such as Google and Google insights. Twitter trends will also play a key role.

Monitoring online trends in the hair extensions world will be important to the business. What is trending in 2020 in business of selling hair? What is trending amongst influencers on social media such as Instagram and YouTube? Market trends are continually changing and evolving, and the monitoring of these trends to ensure we stay ahead of the rest will be paramount.

Marketing Segmentation

Grouping customers into regular, occasional, and potential divides will help Hair extensions store to keep on top of analytics that is core to current and future Business. Thus, enabling the business to effect a change of direction when needed. It is important to keep up with consumer demands as this affects the products we stock over time.

Business Target

Hair Extensions business’s main targets are hair extensions salons, hairdressers, spas, hotels, and the general public. The aim is to provide everything that a hair/hair extensions salon needs to run their business and to offer all the brands required. The choice for our clients will be a key factor. Limited stock will not be an option if we are to set our business apart from the rest.

What is the critical Target Market?

Hair extensions stores’ key target market is as follows: Hair extensions salons/hair extensions spas/Hotels and the crucial Demographic 16/55, although the general demographic will be much broader. Hair extensions are ageless, and everyone wants to look beautiful.

Operational and Strategic Planning

How to keep customers coming back.

Repeat customers will be at the heart of the Hair extensions store. The most important thing for the success of any business is customer service. To ensure customers keep returning, they will be awarded a bonus card. The more they spend, the more points they receive. These points can be converted to free products and extra discounts off bulk-buys when the points build up. There will be a range of personal delivery options (an area that often fails many customers). Friendly staff and advisors will be on hand for our clients online and instore.

What will be the average receipt of the business?

The average customer receipt will be between $100 and $1000, of course, this depends on the size of the business ordering the goods. Bulk-buy goods would expect an average receipt of $1000

Marketing Strategy

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With our online presence in the form of a professional website that is compatible with mobile phones will increase our marketing online. We will drive traffic through our site by using/offering an affiliate program to customers. Producing natural hair extensions-focused content with keywords that are guaranteed to rank high on search engines will be necessary. Offering incentives on our Social media platforms such as our Facebook page to engage our followers and get them buying and clicking through to our website. Using Facebook and Instagram ads for businesses to promote our products will be an area that we shall implement at the offset.

Competitive Analysis

While preparing the Hair Extensions Business plan, competitive analysis is an essential part to consider. We are in the market when there are numerous other hair extensions organizations inside a mile span. There is an uncertainty that the business will confront the stiff challenge from built-up industry players.

In any case, the business has recognized the key factors that are long accepted to profit the intensity of different hair extensions product organizations. Putting resources into critical areas, with praiseworthy client assistance, latest management technology, and superb cordial staff, will bring us into the challenge.

Sales Strategy

The accompanying techniques will be produced for our store to get more client base:-

• Showcase our products to corporate customers that are associated with numerous downtown foundations.
• Extraordinary offers, especially convincing, and adjustable bundles that give high motivating forces to draw in clients.
• Thorough is showcasing efforts and utilization of both nearby media just as advanced channels to spread business.
• Offer periodic offers and limits to faithful clients to keep utilizing our products.
• Ensure that every client gets singular regard for their needs and to get the help they need.

Sales Monthly

The business of the store might not be able to pick up the profitability baseline in the first month, but our plan is made in such a way so that we can quickly mitigate that possibility. Although, when it comes to sales, we expect an exponential increment in the first four weeks of the store.

Sales Yearly

As already mentioned, the business of the store might not be able to pick up the profitability baseline in the first month. Still, it will become sufficiently profitable in the first quarter of the first year. We expect that we will reach our full potential of sales under the given capacity in the first year.

Sales Forecast

During the first 12 months: We expect to make a reasonable marginal profit as setup costs will affect the profit margin significantly as with any business plan in its infancy. However, our sales forecast for the first month is expected to be $40,000 due to clients we have attained initially with potential orders already exceeding our expectations. Our target sales for the first 12 months is expected to be a conservative $250,000

Charges For Opening Store

The fees for opening the Hair extensions store will include the following: Lease/rent costs, staffing costs, stock cost, electricity, water, business rates, telephone, and WiFi.

Personnel plan

The beilow mentioned staff is required while starting a hair business-

Company Staff

• Chief Executive Officer
• Quality Assurance Manager
• Human Resources and Admin Manager
• Sales and Marketing Team
• Purchasing Manager
• Store Manager
• Delivery Driver
• Customer Service Executives
• Security Guard

Average Salary of Employees

To starting a hair business.the following table describes the average annual salary of each employee and total payroll for the next 3 years –

Financial Plan

We have built up a thorough financial arrangement that will completely bolster our business while preparing the business plan for a hair extensions store. Our business will give monetary help with a variety of different speculators. Accessible subsidizing will be accessed and enhanced by an advance that the business means to debit inside the initial three years of opening.

If you are thinking about how to begin a hair extensions store, do not stress as we can assist you with setting up a point by point budgetary plan.

Important Assumptions

We assume that our client base will grow linearly, and the economy will remain strong. Our services might be disrupted due to natural factors, but we will take the top care to make sure that the services remain stable under human conditions.

Brake-even Analysis

We expect that the hair extension store will break even within the first quarter of the first year of opening.

Projected Profit And Loss

We might run into a loss for the first month of operations, but we expect to touch the profit baseline within three months of operations.

Profit Monthly

The monthly profit we will reach will be able to sustain all our operations and will us enough dividends to invest in the future growth of the business.

Profit Yearly

As already mentioned, we might run into a loss for the first month of operations. Still, we expect to touch the profit baseline within three months of operations, and therefore, our yearly profits will be able to pay back all the credit.

Gross Margin Monthly

In the first few months, the margins will remain negative, but when the profitability picks up, we expect a solid margin baseline.

Gross Margin Yearly

Yearly margins will be great and will make us able to expand our business and reach out to a larger customer base.

Projected Cash Flow

In the initial months, we will be running on credit, but soon we will become cash-flow positive.

Projected Balance Sheet

Balance sheets will be outsourced but monitored. Management will make sure it will stay positive.

Business Ratios

The business rations have been calibrated to be perfect in the long term.

Hair Extensions Business Plan Sample in PDF

OGS capital professional writers specialized also in themes such as barbers business plan , business plan for hair salon , laser hair removal business plan , lash business plan , reiki business plan , soap manufacturing business plan and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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• July 6, 2023

Do you need help starting a weave and hair extension shop? If YES, here is a sample hair extension Business Plan.

Sale of hair extensions is part of a booming beauty product industry. There is tremendous potential for entrepreneurs considering this area of business. If you are one of such persons, this article is written with you in mind.

This hair extension business plan example seeks to help you write your unique plan easily.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

Most times, new entrepreneurs are faced with the daunting challenge of how to put their plan together.

WEAVE-ON AND HAIR EXTENSION BUSINESS PLAN SAMPLE

Are you looking forward to starting a hair extension business? Are you a person that loves noticing people’s hair and also touching it? Do you have joy in making hair looks neat and beautiful? Why not start a hair extension business?

Actually I will tell you why you need to.

Firstly, starting a hair extension business is no rocket science. Most persons are scared of starting a business because of the risks involved. However, there are a number of gimmicks that would smoothen your path through the business if you are adequately guided.

READ:  40 BUSINESS IDEAS FOR WOMEN

You must realize that every venture comes with its packaged set of challenges. But if equipped with the right tools, we are simply going to be the potter that has no clay too hard to bend.

Let us kick off by noting that there are a number of hair extensions and its affiliated products in the market. From Brazilian, synthetic, human hair, Peruvian hair, Indian hair, amigos attachment, expression attachment, and wigs.

We should know as well that the costs of procuring these extensions come in a stratified way.

Then to top it off, there can as well be an extension to the hair extension business, in the sense that you could also include the products for hair maintenance as well.

Without further ado, I will look directly at the guaranteed steps for a successful start of hair extension business; steps that are certain to guarantee you security from being swallowed by any risks.

Here is a business plan for selling hair extensions.

• Gain Thorough Knowledge

As important as it sounds, it is the primary key that would open your success doors in the fashion industry. You must be as vast as possible. I’m not saying you should begin to study the history of the House of Worth where serious fashion began, but the rudiments of hair extensions would do.

You must answer questions such as: how many variants of hair extensions are there? Which hair extensions are of good quality? Where are the locations to purchase the hair extensions? Upon arming yourself with the answers to these questions, then you are in position for the next step.

• Conduct a Feasibility Study

This part is as crucial as the first. It is the wind vane the determine the direction of the wind of investment as you launch your business. You must find out what styles of hair extensions appeal to prospective customers, and what range of quality they are capable of affording.

You must also find out the location where you intend to site your business, and what income grade of people stay there. It is madness to start up a hair extension business in a monastery, so look out carefully for your location, and draft up a sample plan.

• Get a location and Purchase Some of the Items

How much is a carton of expression attachment  in Nigeria 2020?  Now you are taking the first practical step. You could budget probably between 60, 000 to 100, 000 naira for getting a beauty shop depending on the location. Then go on to invest possibly a capital of between ₦400,000 to ₦600,000 in the business.

Take this from me: with the right dedication, you could be making over 25% of this investment capital on a monthly basis. So it’s worth it.

• Establish Relationship with a Manufacturer

Indeed this also dictates the extent of success of any business. Choose a manufacturer to deliver wholesale quantity of the products to you, as this would ensure quality as well as reduce cost.

This is very important. Some business owners make orders directly from China and India where these products are manufactured, but if your means can not afford that, then you could simply connections with local weavon and attachment distributors ; in the given time, you would scale to higher levels.

• Adopt Strategic Pricing

You must choose prices that would make sense to your client’s pockets as well as yours. The economists would call this ‘equilibrium price’. As a business starting up, you need to command the market, you need to twist the competition in your favor, and what is a better way of doing so than using the tool of pricing?

Adopt a suitable price for your hair extensions and associated products such that you are making profits, and your customers are comfortable. Again, you must not compromise on quality.

• Advertisements

As part of the backbones of any business venture, the need to promote the business is chief. You must take advantage of platforms like Facebook, Twitter, LinkedIn, and other social media to advance your business beyond the frontiers of your immediate location.

Friends can even place orders through to you over the internet. Mouth-to-mouth information is as well another key; an indispensable one at that. Even using the hair extensions on its own is another way of advertisement that fosters sales.

Creativity is another key player in the fashion kingdom; it determines to what extent you would penetrate the market. All in all, the formula is simply: good plan plus dedication plus knowledge equals financial success.

How to Start a Business Selling Human Hair and Weaves

With the widespread in the usage of weave around the world, this is the best time to start a business selling hair weave. This is a billion-dollar business in case you don’t know. How much can you make selling weave?

Selling of weave extensions online is not just a business for the ladies alone. If you are a male and you would love to venture into the business, there is room for you.

Weave is a highly demand hair product that anyone can leverage on and cash huge amount of money from it. There are hundreds of thousands of hair salons around the globe that you can sell your weaves to.

Aside selling to hair salons, individuals also demand for weave directly from sellers either online or in person without going to hair salons.

Weave is a kind of hair product that is desirable based on the fact that it looks more regular and is more flexible since it can be warm-styled without harm.

So, to help you get started and help you consider if to venture into the business, I am sharing with you on this post how you can start selling weave and become a boss of your own. It is a lucrative business you should not just throw off without great amount of consideration.

Starting a Business Selling Hair Weaves – Checklist

• Conduct a Market Research

This is the first step you must take before venturing into the business so you don’t regret later along the way. You will need to conduct a market research to find out the different kinds of weave that is of high demand in the market.

You don’t want to a situation where after you have spent your hard-earned money buying certain kind of weaves you then realized that no one is demanding for them.

Conduct a market research and find out the kinds of weaves that are selling. Look at weaves worn by celebrities and find out if people are demanding for it. You will need to study the market and ask friends, family members that wear weaves to tell you what is trending.

If you are a girl that wear weaves, it will be an advantage to you as you will have a good idea of what is trending. Go to popular hair salon in your city and ask the owners the weave that is of high demand so you know which and which to buy.

• Find a Trusted Supplier

There are many suppliers and companies who pose as hair product suppliers. You must be very careful in picking a supplier for your product so as not to disappoint your customers when they demand for your products.

Find a supplier with a good track record. Alieexpress is a good place to source for suppliers and their reviews. One other best way to do this is by asking other weave sellers to refer you to their supplier or any supplier they trust.

• Place your Order

After you must have secured a trusted supplier, it is time to place your order. No matter your budget, do not place a huge order as you are not certain of the supplier yet as one can’t trust reviews these days. Some companies pay people to write a good review for them.

Just place a few order to test the supplier and see if your goods will be delivered on time. If the supplier delivers on time, then you can be assured of placing a large order next time.

• Get a Location

Though this is optional, but if you have the budget and have the vision of going large-scale, it is also good. You can choose to open a physical retail shop or an ecommerce shop where you will be selling your weave to potential customers.

You can also choose to stock your products at home and be doing delivery when customers order for them. Ps time gets better, you can then get a location and site your shop there for people to come in and place order.

• Wholesale Account

Set up discount accounts with producers and brands of human hair, for example, Bohyme, Milkyway or Saga. To get the least costs, you will probably need to work specifically with universal makers instead of purchase from a wholesaler in the United States in light of the fact that most human hair for weaving is accumulated and delivered in Asia.

• Great Marketing

For you to make good money, your business must be known to potential customers. Word of mouth is not enough.

Social media is one platform with the potential to turn your business into a 6 figure business within a month if you know how to use it to market your business. Great platforms like Facebook, Pinterest and Instagram will be a great tool for this kind of business.

Advertise your weaves on fashion magazines too. This is one way to let weave lovers and salon owners that you exist and how you can be reached. Your marketing is going to be crucial for success in this business as it is a crowded market.

You may not see result at first, but rather with predictable exertion, you will have the capacity to push toward starting a successful weave business .

HAIR EXTENSION BUSINESS PLAN EXAMPLE

Using this sample, you do not need to worry as it gives you a template you can easily work with. Although this is the case, you need to have a thorough understanding of this line of business before venturing out. If you have, then this is your next step;

• Executive Summary

Beauty Care LLC is a business that specializes in the provision of a wide variety of hair extension products. Located in Richmond, Virginia, we seek to expand to cover more locations within the state of Virginia. However, our sights are set on breaking into the top tier of hair extension business. This will require tremendous work and dedication on our side. The good part is that we are fully prepared to take on this challenge.

We have set a structure in place that will become beneficial for all players. This includes our workforce, our clients and business owners. There is something for everyone. Our customer care service is top notch! We ensure that all clients are treated on individual basis and given the very best. This is done in order to build our reputation as a reliable name when it comes to quality and service delivery.

• Products and Services

We sell a variety of hair products from premium to exotic brands. This is in addition to our skillfully crafted and customizable hair extensions.

Our products will include both natural and synthetic hair. Apart from sale of high quality hair extensions, we also offer training and consultancy services. This presents an avenue to share our expertise with persons or aspiring entrepreneurs willing to learn.

• Vision Statement

We seek to create a reputable brand known only for quality and affordability. We are leaving no stone unturned in attaining these lofty ideals. Our vision for Beauty Care LLC is to be among the top 10 hair extension businesses in America within a decade from the time of take off.

• Mission Statement

As the desire to look good increases, so does the need for quality products. We are well suited to meet these needs through the sale of high quality hair products from reputable brands. This will be in addition to the crafting our beautiful hair extensions. As a business, we seek to be driven by innovation in developing new styles of hair extensions in addition to the sale of those made by well-known brands.

• SWOT Analysis

We consider this a measure of our competitiveness in the hair extension industry. This analyzes our strengths, weaknesses, opportunities and threats. To do this, we have contracted a major firm with expertise in the provision of a variety of business solutions.

The findings have been revealing and will enable us streamline our efforts into achieving our desired goals.

One of the major areas of strength for our hair extension business is the quality and depth of our workforce. These have acquired significant experience and training in the craft. Apart from selling top hair extension brands, we will make our customized extension products as well. These are as good as some of well known brands in the industry.

We are constrained financially. This has limited the scale of our business. However, this is only a temporary setback as we intend to start where we are to achieve our aims. There are also major players in the hair extension business.

These exert a tremendous amount of influence too. Operating alongside these formidable competitors can be challenging but we will maintain a positive outlook.

• Opportunities

The hair extension sector of the beauty industry experiences one of the highest patronages. This is driven by innovation as more natural and synthetic hair variants become available. We are encouraged by such opportunities and seek to contribute to this innovation too.

Clients are always available to buy new hair products. We are seizing this opportunity to build a thriving business.

As there are opportunities, there are also threats. These are in the form of an economic recession. Under such situations, every industry is affected. The beauty industry is one of the hardest hit because the stream of disposable income has ceased.

• Target Market

People buy hair extensions for different reasons. For some, they may need to change their looks.  For others, having a hair loss may be a major reason. Still yet, others will buy hair extensions for a host of reasons. Whatever these reasons are, the fact remains that it is a booming industry. Demand is driven by women. Hence, they are our main target market.

Others include cancer patients, celebrities, movie stars, hair stylists, tourists, and fashion designers. Our marketing activities will focus on this category of clients because they have a major influence on demand.

• Sales Projection

Increased sales translate to increased profits. To have an idea of the extent of demand, we have used current market data to arrive at a sales projection covering a three year period. This projection has revealed positive growth in generated revenue as shown below;

• First Financial Year $200,000.00
• Second Financial Year $550,000.00
• Third Financial Year $990,000.00
• Competitive Advantage

An advantage we have is the making of our own unique and beautiful hair extension products. This is in addition to the sale of other brands. While purchasing these hair extensions, it becomes easier to sell our own because they are qualitative as other popular brands.

We also have a great work environment where our staffs are encouraged to give in their best. All types assignments are incentivized to serve as a boost to the general work atmosphere.

• Marketing and Sales Strategies

To attract sales, we have partnered with celebrities to don our hair extensions. This is in addition to our foray into fashion shows where we work with the show organizers and major fashion designers. Our hair extensions are worn by these models and showcased to the world. This strategy has been successful in attracting increased demand for our products.

Our marketing team has designed various ads that will be marketed on social media, our website and on electronic as well as print media.

This hair extension business plan sample has been written with the would-be entrepreneur in mind. It offers you a wealth of perspective on what a good plan should consist of. After successfully writing your plan, implementing it is also as critical. It is only through a thorough implementation that the benefits can be felt and seen in the business.

Related posts:

• Sample Hair Salon Business Plan Executive Summary
• Sample Venture Capital Firm Business Plan
• 50 Catchy Fashion Business Name Ideas that Draw Clients to Your Venture
• How Much Does a Perm Cost for Short, Thick and Long Hair

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Starting a Private School In Nigeria – Nursery, Primary and Secondary

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Wig Business Plan Template

Written by Dave Lavinsky

Wig Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wig companies.

If you’re unfamiliar with creating a wig business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a wig business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Wig Business Plan?

A business plan provides a snapshot of your wig business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Wig Business

If you’re looking to start a wig business or grow your existing wig company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your wig business to improve your chances of success. Your wig business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Wig Businesses

With regards to funding, the main sources of funding for a wig business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for wig companies.

Finish Your Business Plan Today!

How to write a business plan for a wig business.

If you want to start a wig business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your wig business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of wig business you are running and the status. For example, are you a startup, do you have a wig business that you would like to grow, or are you operating a chain of wig businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the wig industry.
• Discuss the type of wig business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of wig business you are operating.

For example, you might specialize in one of the following types of wig businesses:

• Brick and mortar : this type of wig store is located in a brick and mortar retail location and sells a variety of wigs.
• Online: this type of wig store is found online and does not have a physical retail presence.
• Custom: this type of wig store makes custom wigs for a customer’s specific need.
• Show wigs : this type of wig store specializes in providing eccentric, bright, and show stopping wigs to be worn for performances and shows.

In addition to explaining the type of wig business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of customers with positive reviews, reaching X number of customers served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the wig industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the wig industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your wig business plan:

• How big is the wig industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your wig business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your wig business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals of all ages, performers, cancer patients, and the elderly.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of wig business you operate. Clearly, cancer patients would respond to different marketing promotions than performers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Wig Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other wig businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes big box retailers, hair stylists, or theater production companies. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of wig business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide custom made wigs?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a wig business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of wig company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide tupets, weaves, or hair extensions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your wig company. Document where your company is situated and mention how the site will impact your success. For example, is your wig business located in a busy retail district, a mall, a standalone shop, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your wig marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your wig business, including taking inventory, customer orders and fulfillment, billing customers and/or vendors, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth wig, or when you hope to reach $X in revenue. It could also be when you expect to expand your wig business to a new city.  

Management Team

To demonstrate your wig business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing wig businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a wig business or successfully running a small retail store.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 wigs per day, and/or offer discounts for buying more than one wig? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your wig business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a wig business:

• Cost of wig inventory and store supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your retail store location lease or a list of wigs you plan to offer.  

Writing a business plan for your wig business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need about how to start a wig business. You will understand the wig industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful wig business.  

Wig Business Plan FAQs

What is the easiest way to complete my wig business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your wig business plan.

How Do You Start a Wig Business?

Starting a wig business is easy with these 14 steps:

• Choose the Name for Your Wig Business
• Create Your Wig Business Plan
• Choose the Legal Structure for Your Wig Business
• Secure Startup Funding for Your Wig Business (If Needed)
• Secure a Location for Your Business
• Register Your Wig Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Wig Business
• Buy or Lease the Right Wig Business Equipment
• Develop Your Wig Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Wig Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Wig business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

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Free Business Plan Template for Small Businesses (2024)

Use this free business plan template to write your business plan quickly and efficiently.

A good business plan is essential to successfully starting your business —  and the easiest way to simplify the work of writing a business plan is to start with a business plan template.

You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other  entrepreneurs and startups. 

Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today. 

What this free business plan template includes

• Executive summary
• Company overview
• Products or services offered
• Market analysis
• Marketing plan
• Logistics and operations plan
• Financial plan

This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.

That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.

Our free business plan template includes seven key elements typically found in the traditional business plan format:

1. Executive summary

This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand. 

2. Company overview

This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.

3. Products or services offered

What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.

4. Market analysis

This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.

5. Marketing plan

How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.

6. Logistics and operations plan

Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.

7. Financial plan

It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.

Business plan examples

What do financial projections look like on paper? How do you write an executive summary? What should your company description include?  Business plan examples  can help answer some of these questions and transform your business idea into an actionable plan.

Professional business plan example

Inside our template, we’ve filled out a sample business plan featuring a fictional ecommerce business . 

The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.

Lean business plan example

A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires. 

Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:

• Company description
• Key members of your team
• Customer segments

💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read our guide on how to create a lean business plan .

Benefits of writing a solid business plan

It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:

• Test the viability of your business idea. Whether you’ve got one business idea or many, business plans can make an idea more tangible, helping you see if it’s truly viable and ensure you’ve found a target market. 
• Plan for your next phase. Whether your goal is to start a new business or scale an existing business to the next level, a business plan can help you understand what needs to happen and identify gaps to address.
• Clarify marketing strategy, goals, and tactics. Writing a business plan can show you the actionable next steps to take on a big, abstract idea. It can also help you narrow your strategy and identify clear-cut tactics that will support it.
• Scope the necessary work. Without a concrete plan, cost overruns and delays are all but certain. A business plan can help you see the full scope of work to be done and adjust your investment of time and money accordingly.
• Hire and build partnerships. When you need buy-in from potential employees and business partners, especially in the early stages of your business, a clearly written business plan is one of the best tools at your disposal. A business plan provides a refined look at your goals for the business, letting partners judge for themselves whether or not they agree with your vision.
• Secure funds. Seeking financing for your business—whether from venture capital, financial institutions, or Shopify Capital —is one of the most common reasons to create a business plan.

Why you should you use a template for a business plan

A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.

No blank-page paralysis

A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.

Guidance on what to include in each section

If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.

Knowing you’ve considered every section

In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.

Tips for creating a successful business plan

There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.

Understand the audience for your plan

If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.

Know your goals

Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.

Take it step by step

Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Maximize your business planning efforts

Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.

To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.

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Business plan template FAQ

What is the purpose of a business plan.

The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.

How do I write a simple business plan?

• Choose a business plan format, such as a traditional or a one-page business plan. 
• Find a business plan template.
• Read through a business plan sample.
• Fill in the sections of your business plan.

What is the best business plan template?

If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.

What are the 5 essential parts of a business plan?

The five essential parts of a traditional business plan include:

• Executive summary: This is a brief overview of the business plan, summarizing the key points and highlighting the main points of the plan.
• Business description: This section outlines the business concept and how it will be executed.
• Market analysis: This section provides an in-depth look at the target market and how the business will compete in the marketplace.
• Financial plan: This section details the financial projections for the business, including sales forecasts, capital requirements, and a break-even analysis.
• Management and organization: This section describes the management team and the organizational structure of the business.

Are there any free business plan templates?

There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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