how to write a business plan for selling hair

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Hair extension business plan: blueprint for success, how to write a hair extension business plan.

Want to create a hair extension business plan but don't know where to start?

If you are really serious about selling hair extensions it should be something to consider. If you need an eyelash extension business plan this should help too!

You might think creating a well-crafted business plan can be time-consuming and a little daunting without some guidance. This can be true!

No worries, we are here to help!

Below is a step-by-step guide to what you will need to create a hair extension business plan for your new business or your current.

First, let's go over exactly what a business plan is and why you should have one.

Chapter #1: What is a Business Plan?

A business plan is a written document that highlights in detail how business, usually a new one is going to achieve its goals. It usually lays out a written plan from a financial, operational, and most importantly marketing point of view.

Sometimes a business plan is prepared for the companies which are working on reaching new horizons with their business.

It is important to have the ideas in written form so that they are executed with precision.

You may find it is also useful to demonstrate the feasibility of the prospective new business and to provide a map for its years of operation in the future.

Once the business is up and running, it will be a document you will consider looking at when you are struggling or have any doubts. This consultation can foresee whether you are on track or not; perhaps you have strayed from your initials and need to revert to the original ideas.

Why is a business plan important?

A business plan is necessary because of a number of reasons.

1. Clarify Directions

The primary purpose of a business plan is to explain what the business is or what it intends to achieve in the future. Clarifying the purpose of your business allows you to understand the direction of the forward movement. It may include a simple idea about your business, the product services, and the detailed description of what you expect from the customers as well.

2. To Obtain Financing

A business plan is always necessary if you wish to secure funding, whether you are operating a new plan or want to seek a bank loan or venture capital. But why do investors want to see your business plan? For understanding this, you have to look it through a different perspective.

Let’s suppose you are going to loan someone $1,000 or more for their business. With the hope of getting the money back and seeing a return on your investment, you would want to know exactly how the money would be used, who is going to be in charge, what makes them qualified to succeed, what are their valuable assets, liabilities, and profits look like? Of course, you would want to know the details.

3. To Maintain Your Organization

A business plan ensures that the organizational structure of your business is well developed.

It includes the entitlement of your directors, officers, and specific duties. Thus is can act as a management tool that can regularly be consulted to ensure the organization is on track and the goals are being pursued efficiently.

4. Vision for the Future

For most of the companies, business evolves over time, and factoring future growth into your business plan can prove very crucial to coping with the changes in the markets.

Thus it helps you to envision your future and things you can to safeguard it.

Planning for your Hair Extension Business Model

Congratulations if you have decided to write a hair extension business plan, and you are ready to get started.

The chances of success of your business venture have significantly increased, and before drafting your plan, you need to plan on how to do it. Whenever you are presenting your business model, the only factors that will determine its value shall be the projections and proposals. That’s even more relevant when you are seeking for finances for your company.

Learning how to sell hair extensions is going to be vital, and your hair extension business plan will be your lifeline.

However, you need to understand that the business plans are very complicated documents. As you are drafting your plan, you are making decisions on very crucial matters e.g. the strategy you will pursue. Considering these things in advance can save you a lot of time in the future.

The following are the strategies you should explore before starting a hair extension venture.

Determine Your Goals and Objectives

• Where do you want your hair business to go?
• Will your hair business be staying stagnant at that time?
• Are you focused on a rapidly growing hair extension empire?

Answering these questions is imperative for building a successful hair extension business plan. Now is a good time to explore every avenue you’d like your business to go down. The best approach is to write an essay on your goals.

Create a Checklist

• How determined are you to see your hair venture succeed?
• Are you willing to sacrifice your personal benefits for the future of your hair company?
• What is going to be your approach if the venture fails?
• How many dedicated people do you need for your hair business?
• What is your goal in terms of revenues for the future?
• What will the hair company's market share be in five years?
• What are your plans for expansion? Are you going to keep your venture local, online, or would you go global?
• Which department would you specifically work on in your venture?
• If selling online, what type of hair extension website will you use?

Setting up your Financial Goals

Your business plan for hair extensions must have some financial goals. For running a business, you don’t need a lot of money to make a lot of money.

An optimistic approach to this is to leave everything on your sales. However, this may also create a problem for you because a business has some constraints.

You have to pay the suppliers first before you get paid by your customers. If this is an issue, you might want to consider Dropshipping Hair Extensions . This cash flow conundrum is the reason that companies have to resort to bank loans, borrowing money from family, or getting a small investor. Start by asking yourself these questions:

1. You must think about having a partner to help you with your hair business. An equal partner, naturally, shall demand higher power and control. Venture capitalists often require management decisions, just like having their say in your important decisions.

For most hair companies that are just starting out, you will not need to go the Venture Capital route unless you have a massive plan.

You don’t want any of these to happen. So the best partner for you is a bank. Banks will not bother you much until you make payments of principal and interest on time.

2. You should keep account of the money you wish to spend on your venture.

3. Anticipating the size of your needs, your spending, and financing, you should consider the running cost as well. If you are going to keep a lot of bundles in stock then what will be your holding inventory cost? These are things that are important to plan.

How Will You Use Your Hair Extension Business Plan?

It might sound a bit ambiguous to you, but a part of planning your business plan is to determine what you would do with it. Your plan of activities can reference to in many ways.

From monitoring your company’s road towards the success to alluring top employees, celebrities, or social influencers to join your venture. On the other hand, you can use a hair business plan as a marketing tool for consumers. This program will help you to create a test ensuring that your company stays credible in the hair extension market.

Marketing is Important for Your Hair Extension Business Plan

If you want to escape the cubicles and want to pursue your passion in the hair extension business, after a business plan you need to draft the key elements of your marketing strategy.

Hair extension marketing is critical to your success and separating you apart from the others in the industry.

The biggest problem with entrepreneurs is that most of them don’t have marketing experience.

No matter how great your hair extensions, no one is going to know if you don’t pitch it the right way. The Business plan for hair extension will be successful if you think about these agendas before writing it.

Who Is Your Target Audience?

Understanding your audience is vital. For a Hair Extensions venture, the target audience should be women, and you need to think about marketing your product in the right way so that more and more women are attracted to your company.

Are you going to be selling retail or wholesale? Is your price point going to be $150 a bundle and only market to the higher end crowd? There are many different aspects of your products and pricing to consider.

Most hair entrepreneurs will focus on the popular hair extensions that they know will sell in the market. This could include glueless wigs , seamless clip-ins, tape-ins, or raw hair bundles.

Knowing your target market will not only maximize profit but will also help you to cope up with the changing market.

What Marketing Strategy Do You Wish to Follow to Reach Your Audience?

Social media is a perfect place to market your products. Many hair companies just focus on growing their Instagram account. Focusing on just one platform that is not even your own can be dangerous if a platform like Instagram starts to lose popularity in the future.

Having a balanced but focused marketing strategy will set you up for hair sales success in the future.

Advertising your products in a newspaper might not just be an excellent idea because most of the people who read newspapers are above 55. Figure out what women usually watch more and customize your message using that medium.

Google Adwords can yield great results if done properly. Spending ad dollars on social media is proving to be one of the best ways to advertise to clients. Make sure to have this part of your plan and either become an expert or hire one.

Allotting a Separate Budget for Your Marketing

When you have given a thought to all these questions, you need to write down the magnitude of marketing for your product.

You might need professional help for marketing your product thus creating a budget beforehand is important.

How Long Should Your Business Plan Be?

For a real hair extensions business plan, you need to make it short and concise. You have to understand that it is not a doctoral thesis. It should have the easy to read format.

One should focus mostly on the fundamentals, robust analysis, and good projections. The following are the specifics you should work one.

• Keep the wording straight and straightforward and avoid using fancy words.
• Use short sentences as they are easy to read.
• Bullet points are crucial as they help the readers to have the information quite quickly.
• Keep the length of the plan very short. If your hair extension business plan is 40 pages, then you haven’t summarized it well.
• Business charts are imperative as they can be used to display predicted growth, sales, margin, and net worth by the year.
• Double-check the paper for any grammatical or spelling errors.

Chapter #2: How to Write a Hair Extension Business Plan?

Now that you have spent enough time understanding the business plan and done your homework in collecting the necessary information, it’s time to roll up your sleeves and start writing your business plan for Hair Extensions.

Following are the components of a business plan:

Executive Summary

The executive summary is considered the most significant segment of your business plan.

This section briefly explains to the reader that where your company is at the moment, what are your aims and ambitions, where you want to take your hair company, and why your business idea is going to be successful.

This can help you on two levels. If you are seeking for finances, the executive summary is the main highlight of your plan and can grab you a potential investor’s interest. On the other hand, it is the first step you lay down when you are starting a company and will determine the success of your hair business in the future.

The executive summary must highlight the strengths of your ideas. Preferably, it is the last section one should write, but it appears first in your hair extension business plan model.

What to include in your executive summary?

The following should be the highlights of your executive summary.

The Mission Statement

This statement explains what your business is about. It describes your business categorically and will give a prospect about your business to the readers.

It should point out straight about your products, the market you wish to enter, your target audience, and your company is or will be better than the others.

Are you going to carry sew-in extensions , closures , edge con t rol , and mink lashes ? Start coming up with a plan of what products you would like to offer at launch and others that you can provide as your hair extension business grows.

Company’s Information

This section will give the readers a closer look at when your business was formed, the name of their founders, their roles, your number of employees, and your location.

Financial Features

This section will highlight the economic points of your business. This section will also cover your financial needs and how do you want to spend the capital.

Significant Achievements

Points of interest are advancements inside the organization that is fundamental to the accomplishment of the business.

Real accomplishments incorporate things like licenses, models, area of an office, any essential get that should be set up for item advancement, or results from any test advertising that has been directed.

If you are just starting a business, you won't have as much data as a built-up organization. Rather, concentrate on your experience and foundation and the choices that drove you to begin this specific endeavor.

Have you been a hairstylist for ten years and have clients always asking you for hair? You practically already have a market built. All you need to do now is set up your hair extension business to start getting sales.

Show that you have done a careful market investigation. Incorporate data about a need or service in your objective market, and how your specific arrangements can fill it.

Persuade the reader that you can prevail in your real market, then address your plans.

Business Description

The business description starts with a short depiction of the business.

While depicting the business, talk about the present standpoint, and also future conceivable outcomes.

You ought to likewise give data on all the different markets inside the business, including any new items or improvements that will profit or antagonistically influence your business. Construct the majority of your perceptions on reliable information and make certain to commentary wellsprings of data as proper.

This is critical in case you're looking for financing; the reader will need to know exactly how tried and true your data is, and won't hazard cash on suspicions or guess.

Following are the things you need to include in your description:

• Describe the nature of your business and enlist the commercial center needs that you are attempting to satisfy.
• Clarify how your items and administrations address these needs.
• List the particular customers and organizations that your business serves or will serve in the future.
• Clarify the competitive advantages that you accept will make your business a win, for example, your area, workforce, efficient operations, or capacity to convey an incentive to your clients.

Market Analysis

This section of the hair extension business plan must give a categorical analysis of your knowledge of the industry and the market as well as your research findings.

What to include in your Market Analysis?

• Industrial Outlook – Describe the hair extensions industry, including its current size, the trends, as well as other trends and characteristics that you foresee in the future.
• Information about your target market – In this particular case, your target market is 99% women. You need to research the specific age group that would be interested in buying your hair extensions and will need to devise a strategy to target this particular group.
• Distinguishing characters - What is the need of your potential customers? How can you fulfill these requirements?
• Market Share – This section shall include the market share and profit you can gain in a particular geographical area.

Organization and Management

Organization and Management follow market Analysis.

This section of your business plan for hair extensions ought to include: your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.

Who does what in your business?

What is their experience and why are you bringing them into the business as board individuals or representatives?

What are they in charge of?

These may appear like additional inquiries to reply in an individual association; however, the general population reading your marketing strategy needs to know who's in control, and so let them know.

Give a point by point portrayal of every division or office and its capacity.

This area ought to incorporate who's on the board and how you expect to keep them there. What sort of pay and incentives do you have for your workers? What about the advancements? Promise your reader that the general population you have on staff are something beyond names on a letterhead.

Service or Product Line

For a successful business model for hair extensions, this part shall incorporate data about the particular advantages of your products – from your client's point of view.

You ought to likewise discuss your item or organization’s capacity to address customer issues, any favorable circumstances your item has over that of the opposition, and the modern advancement organize your item is in.

Sales and Marketing

Once you have studied the target market thoroughly, it should be additionally characterized to decide the total feasible market.

Finding this financial number should be possible in a few ways; however, most expert organizers will portray the available market by focusing on product segmentation factors that may deliver gaps inside the market.

It's imperative to comprehend that the total possible market is the part of the market that you can reach given each condition inside the environment is favorable and there is next to no opposition. In many companies, this is not the situation.

Different components will influence the share of the available market a business can sensibly acquire. These variables are frequently fixing to the structure of the business, the effect of rivalry, techniques for market infiltration, and proceeded with development, and the measure of capital the company will spend so as to increase the market share.

For a successful business plan for hair extension, you need to focus on the following strategies.

• A viable market penetration strategy
• A growth strategy that will include an internal strategy that shall primarily focus on things such as increasing your human resources, an acquisition strategy for buying another business, and a franchise strategy to colonize the world.
• A communication strategy on how you plan to reach your customers, the public platforms you’ll use to advertise, and your influence on social media.

Funding Requests

Consider that your hair extensions business ventures become exceedingly successful.

Now you want to expand your horizons. From a small business setup, you need to make an entry in the big market. For that, you need some finances. You need some people to invest in your venture.

So, what would be your marketing strategy, you need to explain thoroughly in this. You have to outline the requirements of your enterprise, any future funding needs, and how do you plan on using these funds?

This section shall also analyze your strategic financial situation plans in the future. After you have done explaining all these parameters, you need to outline the amount you need right now and the amount you need in the future.

It is the most crucial part of your business plan for hair extension.

Provide the appendix to your reader on demand.

Your hair extension business plan shall also have some relevant documents. This section should not be included in the main body as it contains confidential information about your company.

The Appendix will include:

• Credit history (personal & business)
• Product pictures
• Letters of reference
• Details of market studies
• Relevant magazine articles or book references
• Legal documents

How to Make Your Hair Extension Business Plan Stand Out?

Your business plan will eventually stand out if you determine your target market and research the audience quite well.

For instance, is the market you serve the best one for your item or administration? Are the advantages of managing your business transparent and would they say they are lined up with client needs? In case you're uncertain about the responses to any of these inquiries, make a stride back and return to the establishment of your strategy for success.

The accompanying tips can help you elucidate what your hair extension business brings to the table, distinguish the real target showcase for it, and fabricate a specialty for yourself.

Be clear about what you have to offer

Beyond essential items or administrations, what are you truly offering?

Consider this simple case that will help you to understand the situation: Your town presumably has a few restaurants all offering one essential item—food. Each of these restaurants is focused on the needs of the customers.

One may be a drive-through fast-food restaurant, maybe another offers pizza in an original Italian kitchen, and possibly there's an excellent restaurant that serves fish that and has practical experience in wood-flame broiled admission.

Every one of these eateries offers food. However, they pitch them to focused demographic searching for the one of a kind qualities each brings to the table. What they are truly offering is a combination of product, esteem, atmosphere, and brand experience.

When starting a hair extension business, make sure to comprehend what makes your hair extensions one of a kind. What needs does your item or administration satisfy? Document the advantages and differentiators that will help your business emerge from the group? Your hair extension business plan must show all of these attributes.

Avoid being the jack of all trades

It's imperative to characterize what you're offering unmistakably. You would prefer to become a jack of all trades and master of none since this can negatively affect the business development. As a smaller businessman, it's regularly a superior strategy to divide your items or business into sensible market specialties.

Little operations can then offer particular products and ventures that are alluring to a private gathering of planned purchasers. Thus focus mostly on hair extensions when you are starting your business model of hair extensions.

Identify your niche

Making a specialty for your business is basic to achievement. Frequently, entrepreneurs can distinguish a specialty given their market learning. However, it can likewise be useful to lead a market study with potential clients to reveal undiscovered necessities.

Enhancing Your Hair Extension Business Plan

Once you have successfully created a business plan for hair extensions, you cannot stop right there. You have to devise strategies to enhance your plan from time to time so that it may not die eventually. These enhancements are a critical thing to do because the market is always changing.

Say for the sake of an argument, that the hair extensions your company is offering were outshined by another company that is stronger and has a greater reach to the potential customers. Your business plan might have the solution to this problem, but you wrote it a while ago. The dynamics of the market, the balance, and the need for the product at that particular time were different.

So, with the evolution of the marketplace, enhancing your business plan is an excellent idea. At the end of the day, with the corrections and amendment to your working model, you will be able to create an ideal hair extension business plan. The benefits of which are already mentioned in the start of this article.

Business Plan Software

Let the software do the calculations.

With this software, your financial numbers and estimates will calculate when you plug in your numbers. The business Plan software gives you instant access to business planning calculations and an explanation of every financial term.

Planning Expert

This software comes with video courses from experts that can help you to draft a perfect hair extension business plan.

These courses are specifically generated for small business ventures and have all the tips and tricks to help you draft the business plan that can help you in achieving your goals.

Final Thoughts!

By following all these guidelines, we can ensure you that you can draft an ideal hair extension business plan. A program of activities provides that the organizational structure of your business is well developed.

It is always necessary if you wish to obtain financing, whether you are operating a new plan or want to seek a bank loan or venture capital.

You might need much investment in a hair extension venture, thus working hard on this plan can help you make a marketable draft which will bring you investments and profits. The chances of success of your business venture will significantly increase.

Don't hesitate to ask for help. Organizations like the Small Business Administration are available to help.

With your goals written on paper, you will have a clear idea of how well you are doing with this hair extension business and how far are you from achieving your goals. You will also have a detailed document on your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.

Thus in the future, you might not have to face any problems in distributing the workload and tasks to the people and they will have an idea of how things are done.

Private Label Extensions has helped launch hundreds of hair extension businesses. Always feel free to reach out to us for advice on getting started.

Lastly, even if it takes you days or weeks, you must focus on building a business plan for your hair extension. Once it is done, and the business is running, you’ll understand how well things are working.

Hair Extension Business Plan FAQ's

1. what market research is necessary for a hair extension business plan.

Answer: Comprehensive market research is crucial.

You should analyze the current demand for hair extensions, identify your target market (age, gender, preferences, spending habits), and understand the competitive landscape. Look into industry trends, such as the growing demand for ethical sourcing and high-quality, natural hair extensions.

Research should also cover potential hair extension suppliers , pricing strategies, and the best platforms for marketing and sales (online, salons, specialty stores).

2. How should I price my hair extensions?

Answer: Pricing should consider the cost of procurement, packaging, marketing, and distribution, plus a margin for profit.

Quick Tip: Check out Private Label Branding for all your hair extension branding needs!

Conduct a competitor analysis to understand the price range in the market. Consider adopting a tiered pricing strategy to cater to different customer segments—offering budget, mid-range, and premium products.

Don't forget to factor in promotions, discounts for bulk purchases, and loyalty rewards when calculating your pricing strategy.

3. What is the best marketing strategy for a hair extension company?

Answer: A multi-channel marketing strategy is often most effective.

This could include an engaging online presence (social media, an e-commerce website, SEO), influencer partnerships to leverage their following, and content marketing (blogs, tutorials, testimonials). Highlighting unique selling propositions such as high-quality materials, ethical sourcing, or a wide range of options can set your brand apart.

Additionally, consider offline strategies like participating in beauty expos , partnerships with salons, and local advertising.

4. How important is the supplier selection process, and what should I consider?

Answer: Selecting the right hair extension suppliers is key for maintaining product quality and ethical standards.

Consider factors such as the supplier's reputation, the quality of their products, their production and delivery capabilities, and their sustainability practices. It's also important to evaluate the cost-effectiveness of their offerings and their willingness to work under contracts that protect your company's interests.

Building a good relationship with reliable suppliers can contribute significantly to your business's success.

5. What financial projections are needed in a hair extension business plan?

Answer: Your business plan should include detailed financial projections for at least the first three to five years.

This includes sales forecasts, profit and loss statements, cash flow projections, and a break-even analysis. Consider the initial setup costs, ongoing operational expenses, marketing and sales costs, and any other expenses related to running your business.

Financial projections should be realistic, based on thorough market research and clear assumptions, and they should also include best-case and worst-case scenarios to prepare for various market conditions.

Thank you so much the plan has really been of help to me

Thanks so much, I’m about to start a hair business and this has been so helpful on setting up a plan, I’m a novice but I know I can do it.

Business plans strategys are very necessary.

I would like your help to create my hair extensions business plan

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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.

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Hair Extension Business Plan

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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Key Factors in Selecting a Business Location

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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A Blueprint To Succeed: Selling Hair Extensions Business Plan

Are you going to invest a lot of money in your newly founded company? Are you dreaming of the glorious days to come? As a newcomer in the hair industry, you are expecting that much for sure and you all have the right to nourish the big thing. However, to succeed in realizing the dream, you had better keep track with selling hair extensions business plan .

If you claim that you have finished all the funding needed from your circle of networks and your business plan seems to be useless from then on, you are making a big mistake. Hair extensions business plan is much more than a fund-raising tool as it can facilitate progress, hold yourself countable, and know who you are as well.

Therefore, do not underestimate the effects of writing a selling hair extensions business plan, especially if you are living in a harsh market. To gain competitive advantages, you need to be a pioneer in everything!

MAIN CONTENTS

What Is A Selling Hair Business Plan?

To create a standard selling hair extensions business plan, you need to have a sound grasp of what a business plan is. Simply speaking, it is nothing different from your notes when you are going somewhere for traveling or on your daily to-do list.

The term ‘business plan’ refers to a written document highlighting the details that your new business is going to follow to achieve the final goals. As you can see in the picture, a plan often lays out a written schedule including financial, operational, and most importantly marketing approaches.

Sometimes, you do not head towards your sketches but believe it or not, it does help you to reach new horizons with the business. Scientifically, having the ideas in form of notes enables you to execute the operation with precision.

Do not forget that in a selling hair extensions business plan, the feasibility should be demonstrated. For instance, it is not good if you conservatively stick to a less profitable type of hair integration.

Why Is A Hair Business Plan A Must?

No matter which line of product you are focusing on, make sure that you spend adequate time writing a detailed plan. When it comes to hair extensions, you should take lots of things into consideration.

You must choose if you start selling hair extensions to individuals, opening a wholesale hair vendor or hair export company. After that, it is time for you to sketch significant bullets in a selling hair extensions business plan.

So, why do these few sketches matter? Why do most speakers mention it when they are asked to share secrets to success? A business plan is a must for some reasons and it should be repeatedly named.

One small note: hair extensions can be regarded as a new field in some countries; therefore, without an appropriate selling hair extensions business plan, you will easily get lost in the maze and be susceptible to bankruptcy.

To clarify directions

A company could not survive for a long time if it were not for a mission. My mission means what the business is or what it intends to achieve in the future. For example, a selling hair extensions business plan should indicate how far a certain hair vendor expects to go, such as ranking number 1 in the list of Vietnamese distributors.

In this very first step, it is necessary to include a simple idea about your company, the line of product/service you are going to provide, and a detailed description of your customer persona. If you aim at exporting strands, you should enhance the marketing campaign and increase the quality of products.

Let’s take Ivirgo hair company for example. While Indian and Brazilian hair is taking customers by storm, instead of going with the flow, they introduce Vietnamese hair of good quality and reasonable price. Therefore, they make themselves a pioneer in this type and this orientation must be carefully discussed in their selling hair extensions business plan.

To obtain financing

Repeat that you are selling hair extensions and fund-raising is inevitable. No matter what you intend to do – either to operate a new plan or to seek bank loans and venture capital, a selling hair extensions business plan is always vital to secure funds.

Supposing you are going to get a $1000 or more loan. To see the return on your investment, you need to know how you are going to allocate that money, who is in charge of each stage, what qualifications they need, and estimated assets, liabilities, and profits. You just cannot keep that much data in the head.

To maintain the operation

As for an organization, as a leader, you should pay much attention to human resources. It determines how well-developed the organizational structure of your business will become. Therefore, in your detailed selling hair extensions business plan, you should specify the entitlement of your directors, officers, and their duties.

For example, your type of business is a wholesale hair vendor. This means there are quite a few lines of products. In addition to departments related to marketing and IT, you should divide the staff into groups like the Vietnamese hair team and Malaysian hair team. Each will be in charge of providing customer service to a certain customer persona.

A vision for the future

An organization is similar to a living body. It evolves and factoring in future development in your selling hair extensions business plan proves crucial to facing up to fluctuations in the market.

Sometimes, you should anticipate the worst situations as in business, everything can happen.

A Selling Hair Extensions Business Plan Template

Gain business overview.

You cannot jump into the hair extension industry without being equipped with basic foundations, let alone the process of creating a selling hair extensions business plan. As a leader, you are not supposed to be ignorant. However, this does not mean Wholesale Hair Vendors ask you to study the history of the House of Worth.

Before writing your selling hair extension business plan, try to think of the following prospects: how many variants of hair integrations are there? which one is of good quality and worth your investment? where are the potential locations to sell? To answer these questions is to seek fundamental insights.

Executive summary

Depending on each hair vendor’s owner, the executive summary may vary from one to another. However, in general, they still mention the very basic thing of a company. You can look at this executive summary model to see how it works in real life.

“Sharon & Anita Hair Extension Store®, Inc. is a family business owned by Sharon Williams and her immediate family members. Sharon Williams has a B.Sc. in Business Administration, with over 5 years of experience in the retailing industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Charleston – West Virginia, there is a plan to open other outlets all around major cities in the United States” – extracted from Sharon & Anita’s speech.

Market analysis

You cannot win others if you do not thoroughly understand a targeted market and potential competitors. Therefore, it is vital to add data and domains of these in your selling hair extensions business plan.

Through market research, you can determine the wind vane and your direction of investment. You must figure out which styles of hair integrations customers may be attracted to and what range of quality they can afford.

Additionally, defining your competitors with detailed strengths and weaknesses helps you to gain a competitive advantage. From that point, let’s think about a feature that makes you outstanding!

Human resources

In every organization, human beings play an inevitable role in encouraging business growth. Therefore, it is suggested that you should invest more time and money in this factor. On your selling hair extensions business plan, you are required to list out the necessary departments for the business to start.

Normally, a company includes 9 departments which are CEO, admin and HR, store, merchandise, sales and marketing, IT, accountant, client service, and cleaners. However, if your business is a startup, you can reduce the number of staff provided that do not put yourself into an understaffed situation.

Vendors/ Suppliers/ Sources

Indeed, this also dictates how far your business could go in the field. Only by establishing a good relationship with a manufacturer could you protect your brand appearance. If you are a wholesale vendor, you need to find a way to ensure quality as well as to reduce costs. As a retailer, similar desires are achieved.

Marketing plan

In the 4.0 society, the key to opening the success door is a powerful marketing plan. Your selling hair extensions business plan will become useless note without a brilliant marketing approach. In other articles, they even consider it as the backbone of any business venture.

Do not forget any such platforms as Facebook, Twitter, LinkedIn, Whatsapp, Skype, and so on. Thanks to these, you can advance your business beyond the frontiers of your immediate location.

In this stage, you should think about how you are going to run the business. No matter which manner you are going for, it should be effective both in productivity and business culture. This determines the most efficient way to get the job done.

Final projections

The last thing you should dictate in your selling hair extensions business plan is final projections. You must anticipate how much money you need to run the business. After estimation, you have to start your fundraising campaign or just find a way to convince investors.

These are all the things that you may be aware of before writing your own selling hair extensions business plan . Now, it is time for you to practice, and do not hesitate to contact us if you have questions.

I am Thomas Taw, the CEO of CITIZENSNIPS. I have experience in hair product development and chemical research, as well as sustainable resource engineering. In 2009, I co-created Sunsilk, one of the world's leading haircare brands. More recently, I was the CEO of SMOKINGPANDA LTD. I am a professional with a strong track record in delivering tangible results.

• Thomas Taw https://www.wholesalehairvendors.com/author/thomastaw Is The Head And Shoulders Bad For Your Hair? The Detailed Answer
• Thomas Taw https://www.wholesalehairvendors.com/author/thomastaw The Essential Guide On How To Get Sap Out Of Hair
• Thomas Taw https://www.wholesalehairvendors.com/author/thomastaw How often should you trim your hair?
• Thomas Taw https://www.wholesalehairvendors.com/author/thomastaw No more mistakes! Difference between curly and wavy hair

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How To Start A Hair Extension Business

• Last Updated: April 5, 2024
• By: Greg Bouhl

Advertising Disclosure

Can you tell Remy hair from human hair? Do you know the difference between a single and a double-drawn strand and have expertise with clip-ins, sew-ins, hair weave, beaded rows, and tape-ins? Are you looking for an opportunity to be your own boss? If you answered yes to most of these questions, then developing your own hair extension business is undoubtedly an inspiring option.  

Hair extensions have been super popular for some time now, and knowing how to put in extensions is just one part of the puzzle. You also need to know how to run the business side of things. That’s where this guide comes in. Here, we’ll walk you through what you need to know to launch a successful hair extension business.

Business Description

A hair extension salon provides services that add length, volume, highlights, or different textures to a client’s natural hair using natural or synthetic hair extensions. A hair extension business involves selling various types of hair extensions, from clip-ins to sew-ins, tapes, micro-links, and more.

As a business owner, you need to identify reliable suppliers for high-quality products, create an attractive storefront—be it physical or online—and develop effective marketing strategies. Furthermore, offering additional services such as fitting, maintenance and custom wig creation can set you apart from the competition.

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Hair Extension Industry

The hair extension industry has exploded in recent years, driven by popularity among celebrities and influencers. Social media has also helped fuel interest in hair extensions as a way to transform looks. Revenue for the global hair extension services industry reached $4.06 billion and is expected to reach $7.9 billion by 2030.  

The primary target market for hair extensions is people between 20 and 65 interested in hair extensions as a fashion accessory or to enhance their looks. In fact, 34% of women claim they regularly use hair extensions as part of their beauty regime . 

Some of the most prominent players in the US hair extension market are So.Cap. USA and Mayvenn Inc. US Private label companies of note are Perfect Locks LLC and Private Label Extensions .

One of the significant trends in the hair extension industry is the rising preference for natural, ethically sourced products. Consumers are increasingly conscious of the origins of their hair extensions, pushing businesses to ensure transparency in their supply chain. Additionally, the convenience of e-commerce has made it easier for businesses to reach a broader customer base, making online marketing and sales a crucial aspect of the business model. Customization is another trend gaining traction, with customers seeking personalized solutions to match their style, hair type, and color.

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Finding the Fun In Entrepreneurship: Salon Freedom

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Steps To Start A Hair Extension Business

With so many important factors to consider and regulations to understand, starting a hair extension company can be overwhelming. To help make the process as seamless as possible, I’ve created this checklist to give you the steps on how to start your business right.

Step 1:  Research the Market

You’ve got the vision and the skills to start a hair extension business, but there’s a crucial first step you shouldn’t skip: finding out if people actually want what you’re planning to offer. Market research is the cornerstone of any successful business plan. It provides critical data about your potential customers, their preferences, buying habits, and the competition. Also, by understanding these factors, you can better tailor your products and services, resulting in a successful hair extension business.

No matter how good your idea is, without this information, you risk entering a market that’s already saturated, or worse, where there’s little to no demand for what you’re offering. Let’s go over some of the essential steps for researching your market when starting a hair extension business.

Determine your target customer: Before you launch your hair extension business, you must identify your target customer. Who are your products for? What’s their age range, interests, and income level? By understanding your demographic, you can tailor your marketing efforts and product offerings to meet their specific needs. One way to determine your ideal customer is by conducting surveys, focus groups, and online research. Social media platforms such as Instagram and Facebook can provide insightful information on your niche market.

Analyze your competitors: Another important step in researching your market is analyzing your competitors. Identify other businesses that sell similar products and services and research their strategies, pricing, and branding. Make a list of their strengths and weaknesses, as this will help you identify opportunities for your business. Use this data to determine what sets your brand apart from others in the industry.

Use industry data and trends: Gather industry data and research trends to stay up-to-date on the latest developments in your market. Sign up for newsletters, subscribe to trade publications, and attend industry events. This will give you valuable insights into what’s trending and what’s not. Understanding the broader industry landscape will help you stay ahead of trends and provide products that appeal to your target audience.

Conduct a SWOT analysis: Complete a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats) by examining your business’s strengths, weaknesses, opportunities, and threats. Utilize this information to strategize how to leverage your strengths, enhance your weaknesses, and capitalize on opportunities while mitigating threats. This analysis can provide valuable insights on how to differentiate your brand and develop a unique value proposition that resonates with customers.

Step 2:  Write a Business Plan

Once you’ve researched the market and found that people are interested in your hair extension business, it’s time to write a business plan. While not required, writing a business plan is important in launching a successful hair extension business. The plan lays out the route for your business journey, helping you avoid bumps and detours, in addition to being an important document requested by loans and investors when evaluating a project for funding.

When writing a hair extension business plan, here are a few sections that I would recommend focusing on:

Market Analysis

In this section, you don’t just want to talk about how big the market is; you need to show why your business will succeed in that market. Maybe you offer something unique or have found an untapped niche. Whatever your edge may be, this section highlights it as lenders want to know that you’re not just jumping in blindly.

Management Team

Here’s where you introduce the people running the show, usually, that’s you and any key staff. Lenders care about this because they know that a business usually sinks or swims based on its leaders. Show that you and your team have the skills, experience, or at least the hustle to make this work. A strong team can be a solid indicator that the business has a better chance of success.

Whether you’re setting up a physical store or an online business, the location matters. For a physical store, discuss the proposed location and why it’s ideal for your business, considering factors like foot traffic, proximity to target customers, and competition. If you’re online, explain your strategies for reaching your target audience and standing out in the crowded digital space.

Financial Projections

Banks and other lenders will zero in on this part. They want to see that you’ve thought out how much money you’ll make and spend. Most importantly, they want to see that you’ll make more than you spend so you can pay back the loan. You’ll need to be ready to explain how you arrived at those numbers.

Before you take your business plan to a lender, have someone else take a look, like a business owner or an accountant. They can provide fresh eyes and might catch something you missed. It’s always better to find any issues before you’re sitting across from a loan officer.

Related:  How to write a business plan

Step 3:  Source Funding

Okay, you’ve done your homework. You know there’s a market for your hair extension business, and you’ve got a solid business plan. What’s next? You need money to bring this dream to life.

Since funding can be delayed and even denied, before you start ordering supplies or signing leases, you have to make sure the funds are there. Let’s dive into some common funding options for a hair extension business.

Personal savings: The first place many people need to look for startup money is their own bank account. Personal savings can be the quickest and simplest way to fund your business. However, if your savings aren’t enough to cover the costs, you’ll need to look elsewhere.

Bank loans: A common way to secure additional funding is through a bank loan. Banks typically require borrowers to invest 15% to 25% of their personal funds towards the total project cost. They also look at factors such as credit scores and collateral. If a bank considers your loan too risky, they might opt for an SBA (Small Business Administration) loan guarantee, which provides them with a safety net.

Friends and family: Another common funding source is turning to your social circle. If you go this route, make sure to put everything in writing, even if it feels weird. Relationships can get messy when money’s involved, and a written agreement keeps everyone on the same page.

Microloans: If you find you can’t get a traditional loan or don’t need a lot of money, microloans could be your answer. Some organizations offer small loans designed for startups and often provide training to help you succeed. This can be an excellent way to get both the money and the knowledge you need to hit the ground running.

Related:  Finding the money to start a business

Step 4:  Acquire & Set Up Your Store

With the funding secured and your business registered, the next step is setting up your location. This is where the planning starts to feel real, where your dream begins to take physical shape.

When choosing your property, make sure it’s in line with the target market you’ve outlined in your business plan. Are you catering to a high-end clientele? Look for a place in an upscale neighborhood. Targeting young adults? Maybe a spot near a college campus is right for you. But before you sign anything, make sure your funding is secure. Also, double-check the zoning laws to make sure you can operate a hair extension business in that location.

Once you’ve nailed down your location, it’s time to fill it with the stuff you need: chairs, mirrors, display shelves, and so on. Consider sketching out your floor plan to confirm that everything fits and is easy for staff and customers to move through.

Step 5:  Register the Business

The next step is to take care of any paperwork to get the business legal to operate.

Choosing the right structure for your business is the first task, as it impacts things like taxes, ownership, and personal liability. The four primary types of business structures include sole proprietorship, general partnership, corporation, and Limited Liability Company (LLC).

• Sole proprietorship: This is the simplest form of business structure, with low startup costs and ease of management. However, it provides no separation between personal and business liabilities.
• General partnership: This structure is similar to a sole proprietorship but involves two or more people. Each partner shares in the profits, losses, and liabilities of the business.
• Corporation: A corporation is a separate legal entity from its owners, providing them with personal liability protection. However, it involves more paperwork and higher setup costs.
• Limited Liability Company (LLC): An LLC combines aspects of sole proprietorships/partnerships and corporations. It provides personal liability protection of the corporation but is easier to administer.

Related: Comparison of business structures

Forming an LLC sounds complicated and expensive, but using an entity formation service guides you through the process so you know it was done right.

Some popular LLC formation services include:

IncFile  - $0 plus state fees & free registered agent for 1 year!

ZenBusiness  - Best for beginners. $0 plus state fees & free registered agent for 1 year!

Northwest  - Best privacy protection. $39 plus state fees & free registered agent for 1 year!

Business name registration: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state during the formation process.

During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain business licenses and permits: Hair extension licensing requirements differ depending on your location and the services you will offer, which can make getting started confusing. Some states, like California, don’t require licensing to sell hair extensions, while others require a cosmetology license to install hair extensions.

In addition to hair extension-specific licensing, some general business registrations will be needed. and vary depending on the state. These typically include a business license, sales tax permit, retail certificate of occupancy, and Employer Identification Number.

Related:  Common business licenses, permits, and registrations by state

Step 6:  Source Suppliers

Opening a hair extension business requires having quality products for customers to purchase. Finding reliable vendors for which you can purchase inventory in bulk will take some time, and they will usually require proof that your business is in the process of opening before they provide wholesale pricing information.

Initially, the cost to stock inventory in a new store is quite an investment, so dig into what your customers will want so your shelves have what they want to buy.

If you aren’t sure about what suppliers to go with, trade shows are a great way to start your research. You get to see products firsthand and start immediate conversations with potential suppliers. These events are worth the investment of your time and money. Also, don’t underestimate the power of a good recommendation. Talk with other hair extension businesses (not competitors, of course) or join online forums or social media groups focusing on the hair industry.

Step 7: Hire Staff

Some hair extension businesses are solely owner-operated, and others will hire employees. There are several federal and state rules that employers need to follow. Here is a brief overview.

Obtaining an EIN: An Employer Identification Number (EIN) is a unique number assigned by the IRS to businesses for tax purposes. You’ll need this number before hiring your first employee.

Employment eligibility: Under federal law, every employee must be eligible to work in the United States. You’ll need to verify this eligibility using Form I-9.

State reporting: Each state has different reporting requirements for new hires. Generally, you’ll need to provide information about each new employee to your state’s directory within a certain period after hiring.

Worker’s compensation: Most states require businesses to carry workers’ compensation insurance, which provides benefits to employees who become injured or ill while on the job.

Labor laws: You’ll also need to comply with federal and state labor laws, including minimum wage, overtime pay, and workplace safety regulations.

Related: Guide to hiring an employee in each state

Step 8:  Create a Marketing Strategy

With the business close to opening, it’s time to nail down the marketing strategy so customers will learn about your new business.

Whether selling online or locally, a successful online presence is important. Social media platforms like Instagram and Pinterest are great for this type of business, allowing you to showcase your products and customer transformations visually. Collaborate with influencers who align with your brand to reach a broader audience. Another popular tactic is content marketing through blogs or YouTube tutorials that provide value by answering customer questions about hair extensions, such as care tips or style ideas.

Collaborating with influencers is another powerful tactic. Influencers can showcase your hair extensions to their followers, which can significantly boost your brand’s visibility and credibility.

Creating YouTube tutorials showing how to use your hair extensions can be a great way to engage your audience and highlight your products’ quality and ease of use.

Additionally, if selling at retail, look into creating in-store promotions such as discounts or complimentary samples to bring customers in the door and try the products.

Related:  Low-cost ideas to market a new business

Step 9:  Prepare to Open!

Starting a hair extension business involves multiple steps, and even after securing funding, finding suppliers, and setting up your location, there’s still work to be done. Every business will have different needs, but here are some key areas you may want to focus on:

Business insurance: Getting the right insurance is a must. Options include liability insurance and property insurance. This protects you against losses from events like theft, fire, or lawsuits.

Related: What types of insurance do hair extension businesses need ?

Setting up bookkeeping: Accurate record-keeping is essential. You can use software like Wave Accounting (FREE) or Quickbooks , or hire a part-time accountant to keep your financials in order.

Opening a business bank account: A separate business bank account is essential for keeping your personal and business finances separate, which can simplify bookkeeping and tax preparation.

Management software: You might consider using industry-specific software like Rosy , DaySmart , or Booker for credit card processing, bookings, and inventory tracking. Another option is Square for Retail , which also offers point-of-sale features.

Setting pricing: Deciding on your pricing strategy is key. You have to consider both the cost of goods and your overheads while making sure the price is something your target market is willing to pay. Don’t forget to factor in labor and material costs accurately when pricing services. Underpricing will lose money.

Joining industry associations: Membership in associations like the Professional Beauty Association , American Hair Loss Council , or the National Hair Society can offer networking opportunities, education, and even discounts on products and services.

Preparing for the grand opening: From decorations to promotions, your grand opening is an opportunity to introduce your brand to the world. Consider specials, giveaways, or partnerships with local businesses to draw a crowd.

Common Questions When Starting a Hair Extension Business

How much does it cost to start a hair extension business.

Starting a hair extension business can set you back anywhere from $10,000 to $50,000, depending on various factors like location, scale, and inventory. This is a ballpark figure, but let’s break down the major costs to give you a clearer picture.

Location: The first deposit for leasing a retail space can vary widely based on location and size. In a busy city, expect to pay at least $2,000 to $5,000 for the initial deposit. In addition to any deposits, budget for any buildout or remodeling costs.

Inventory: Hair extensions themselves can be costly. To stock a moderate range, you could be looking at an initial outlay of around $5,000 to $15,000.

Equipment and supplies: Think chairs, mirrors, washing stations, and so on. This could cost you around $3,000 to $5,000 to start.

Business licenses and permits: Getting the right licenses can also cost money. Fees can range from $100 to $400, depending on your state and local requirements.

Insurance: For the initial set-up, liability and property insurance could cost around $1,000 to $2,000.

Marketing: Launching your business with some buzz is essential. Initial marketing costs, including a basic website and some local advertising, might be around $1,000 to $2,000.

Miscellaneous costs: These are the unpredictable or smaller costs that add up, such as utility setup fees, initial phone and internet charges, and business cards. Budget at least $500 for these.

Is it profitable to sell hair extensions?

While it’s challenging to pinpoint an exact profit, industry data suggests that hair extension businesses can typically achieve a profit margin of around 50% to 80%.

For example, consider a hair extension business that generates $100,000 in annual revenue. The average cost of hair extensions is between $200 and $500, so using an average of $350, meaning you would need fewer than 30 customers per month, which is pretty reasonable for a hair extension business in it’s first year.

If the cost of goods sold (COGS), which includes the cost of hair extensions and other direct costs associated with the products, is $40,000, the gross profit would be $60,000 ($100,000 – $40,000). This represents a gross profit margin of 60%, which falls within the industry standard.

However, this is not the net profit. From the gross profit, you must subtract all other operating expenses, such as rent, utilities, salaries, marketing, and insurance. Suppose these expenses total $30,000. In that case, the net profit would be $30,000 ($60,000 – $30,000), representing a net profit margin of 30%.

These figures are hypothetical, and actual results will vary based on numerous factors, including the specific location and size of your business, your chosen marketing strategies, and more. Therefore, conducting thorough research and considering all potential costs when planning your budget is essential.

What skills are needed to run a hair extension business?

Running a hair extension business requires a unique blend of technical skills, business acumen, and interpersonal abilities. Here are some key skills one should have to be successful in this industry:

Professional know-how: Even if you decide to distribute hair extensions solely, ensure you stay current with industry trends and innovations. Understand what the market is doing, what novelty items are being introduced, and what manufacturers can supply your products.  

If you offer all hair extension services, we highly recommend you learn the trade through a mentor, apprenticeship, or accredited program.

Technical skills: Expertise in applying and maintaining hair extensions is crucial. This includes understanding different types of hair extensions, application methods, and care techniques. Many professionals recommend completing a hair extension training course to acquire these skills.

Customer service and interpersonal skills: This is a vital skill and one you need to enjoy. Especially if you offer hair extension services, you will be helping your customers achieve their desired appearance. Empathy and care are essential traits when assisting clients suffering from hair loss. The ability to advise clients professionally on style, fashion, and hair extension options is equally essential.  

And don’t forget to maintain a solid relationship with your suppliers, hair stylists, and beauticians.

Excellent marketing skills . How will your target market find you – how will you grow your customer base? We recommend investing in good imagery and developing a consistent, authentic comms and marketing strategy and branding that speaks to your target market. Consider getting influencers to wear your gear and promote it to their followers.  

In addition, an outstanding customer experience will ensure repeat business and help expand your brand through word of mouth. 

With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

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03.07.2024 8 min read time

Starting a Hair Braiding Business: Step-by-Step Guide for Entrepreneurs

• Businesses/Owners

Welcome to the ultimate guide for entrepreneurial hair enthusiasts looking to turn their passion into profit! Here at Booksy, we understand that starting a hair braiding business can be a daunting task, but with the right knowledge and support, it can be a rewarding and fulfilling journey. In this blog post, we'll walk you through the essential steps to launch your hair braiding empire. We'll cover everything from licensing requirements to crafting a solid business plan and even share some unique marketing strategies to help you attract clients.

As you start on this exciting entrepreneur journey, it's crucial to know the ins and outs of the industry, including the legalities of obtaining a braiding license. Ever wondered, "Do I need a license to open a braiding salon?" or "How do I get a braider's license?" Don't worry, we've got you covered! We'll delve into the specifics

With our guidance, you'll be well-equipped to navigate the world of hair braiding entrepreneurship. So, buckle up and get ready to braid your way to success! 

Understanding the Hair Braiding Industry

The hair braiding industry is thriving, making it a fantastic opportunity for entrepreneurs and industry professionals to jump in and make their mark. As natural hair care and diverse hairstyles gain popularity, hair braiding has emerged as a go-to choice for individuals seeking to express themselves and try out versatile looks. To make a splash in this burgeoning market, it's essential to get a feel for the industry's key elements. Think of it like mastering a new dance routine: you must learn the steps, practice until you're confident, and then show off your moves to an enthusiastic audience. In the hair braiding world, your skills, knowledge, and connections are your dance moves, and your clients are the eager audience ready to be wowed. By understanding the ins and outs of the hair braiding industry, you can help make this vision a reality while carving out a successful career path for yourself. It's all about learning the ropes, honing your skills, and connecting with the right people to create a thriving business.

Crafting a Hair Braiding Business Plan

A well-structured business plan is the cornerstone of your hair braiding venture, serving as a roadmap that guides you through the exciting journey of entrepreneurship. Crafting a solid plan is crucial for several reasons. Firstly, it provides clarity of vision, helping you visualize your hair braiding services, target audience, and financial aspects. This clarity enables you to make informed decisions and stay focused on your goals.

Secondly, a business plan allows you to delve into your local hair braiding industry and understand your target audience, providing valuable insights into your competition and potential customers. This understanding enables you to tailor your services and marketing strategies effectively. Additionally, a business plan helps you estimate startup costs, ongoing expenses, and revenue projections. By conducting a break-even analysis, you'll gain a clearer understanding of the number of clients needed to cover costs and turn a profit. If you plan on seeking financial assistance, a well-crafted business plan demonstrates your professionalism and commitment to potential investors or lenders, increasing your chances of securing the necessary funding.

Lastly, a business plan allows you to track your progress against your initial projections and make adjustments as needed, ensuring your hair braiding venture remains on a healthy growth trajectory. In summary, a comprehensive business plan sets you up for success and prepares you for the challenges of the ever-evolving world of entrepreneurship.  

Determining Your Hair Braiding Services

• Identify your niche: Decide which hair braiding services you'll offer. Focus on techniques you excel at and enjoy doing. Click here to learn how to define your target audience with our curated guide .   
• Research the competition : Understand what other hair braiding businesses in your area are offering and identify gaps in the market.  
• Pricing strategy : Set competitive prices for your services based on your location, skill level, and the going market rates. We've crafted the perfect Hair Salon Pricing strategy with free templates, click here to discover ! 

Financial Planning for Your Hair Braiding Business

• Startup costs: Calculate the initial investment required for equipment, supplies, and marketing materials. 
• Ongoing expenses: Estimate monthly costs such as rent, utilities, and inventory replenishment.
• Revenue projections: Forecast your earnings based on the number of clients you expect to serve and your pricing strategy.
• Break-even analysis: Determine how many clients you need to serve to cover your costs and start making a profit.

If you're looking to finance your salon, we have the secret sauce made by Booksy pro's with all the ins and outs to make it as easy as possible for you. Click here to learn more

Legal and Regulatory Considerations for Hair Braiding Businesses

Compliance with legal standards is essential for the uninterrupted operation of your hair-braiding business. Familiarize yourself with the various legal and regulatory aspects to ensure your venture runs smoothly. Here are some resources to help you navigate these complexities:

• Business Registration and Hair Braiding Business Structure U.S. Small Business Administration (SBA) : The SBA offers guidance on choosing the appropriate business structure for your hair braiding business. Visit their website (https://www.sba.gov/business-guide/launch-your-business/choose-business-structure) for more information.  
• LegalZoom: LegalZoom provides an interactive tool to help you determine the best business structure for your needs. Visit their website (https://www.legalzoom.com/business/business-formation/compare.html) to explore your options.  
• Local Small Business Administration (SBDA) : SBDA offers counseling and resources to help you establish your hair braiding business. Find your local Small Business Development Center at https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc.

Licenses, Permits, and Insurance for Hair Braiding Businesses 

To operate your hair braiding business legally and safely, obtaining the necessary licenses, permits, and insurance is crucial. These requirements vary by location and can be complex, but securing the right documentation ensures your business is compliant and protected. To simplify this process, consider the following resources:

• Professional Beauty Association (PBA): PBA provides state-specific information on licensing requirements and cosmetology valuable information Visit their website, specifically blogs they are constantly updating with information (https://www.probeauty.org/summer-legislative-update/) for more details.   
• Insurance for Hair Businesses: Obtaining comprehensive insurance coverage is crucial. Companies like HISCOX (https://www.hiscox.com/small-business-insurance/industries/salon-insurance) and Allstate (https://www.allstate.com/business-insurance/industries/salon-insurance.aspx) offer tailored insurance options for hair braiding businesses.

Curating a Comfortable Client Experience

Now that you've laid the groundwork for your hair braiding business, it's time for the fun part: creating an unforgettable experience for your clients! A comfortable and clean environment not only keeps your customers happy but also sets the stage for a thriving business. After all, a happy client means a happy braider!  

Creating an Inviting Atmosphere 

Your hair braiding studio should be a sanctuary where clients feel relaxed and at ease from the moment they step in. From the waiting area to the braiding stations, every corner should exude warmth and reflect your commitment to client comfort. 

By cultivating an inviting atmosphere, you encourage clients to return time and again, fostering loyalty and positive word-of-mouth. Remember, a delightful client experience is the foundation of a flourishing hair braiding business. Get to know more strategies with our curated blog for improving your client's experience. Click here to learn more

Marketing Your Hair Braiding Business

A well-executed marketing strategy is essential for introducing your hair braiding business to the world and attracting a steady stream of clients. By employing smart marketing tactics, you lay the foundation for a thriving venture that stands out in a competitive industry.

Building a Strong Brand Identity

Your brand is the heart and soul of your hair-braiding business. It should reflect the exceptional quality and cultural richness of your services. To help you achieve this, Booksy is an indispensable ally. As a leading booking and business management platform, Booksy enables you to create a cohesive and professional brand image. With a user-friendly interface and a suite of marketing tools, Booksy simplifies the process of building a brand that clients will recognize and remember.

Leveraging Digital Marketing and Social Media

In today's digital age, leveraging social media is crucial for showcasing your work, engaging with your community, and attracting new clients. To effectively manage your online presence:

• Connect with popular social media platforms like Instagram and Facebook to engage with potential clients and showcase your work. Ever heard about social proof? Click here to learn how to implement it correctly in your hair-braiding salon   
• Implement an online booking system , enabling clients to schedule appointments at their convenience. Ready to start your Booksy Free Trial? 14-days for free, on us. (no credit card required) Click here to get started!   
• Utilize marketing tools that help create , schedule, and publish content, saving you time and effort. Learn the top 5 online marketing tools to attract and engage clients.   
• Maintain open lines of communication with clients, fostering strong relationships and loyalty.

By implementing these strategies, you'll amplify your hair braiding business's visibility and drive growth. Tools like Booksy can assist in streamlining these processes, offering seamless integration with social media platforms, 24/7 online booking, time-saving automation, and enhanced client engagement features. By combining a solid marketing approach with the right tools, you'll set your hair braiding business up for success.

As you start this journey it's good to remember that building a successful salon takes patience, resilience, and a positive attitude. With Booksy as your partner, you'll have the tools and support you need to make your business thrive. Our guide has given you valuable tips to help you build a strong brand, schedule appointments easily, and market your business effectively. With Booksy, you can focus on creating a welcoming space that celebrates culture and artistry. Embrace the challenges ahead, knowing that Booksy is here to help you along the way. Your skills, determination, and the power of Booksy will make your hair-braiding business a success. We're excited to be part of your journey and can't wait to see what you'll achieve!

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A Comprehensive Guide to Writing a Hair Salon Business Plan

• July 31, 2023
• For Salon Owners

If you’re thinking about starting a hair salon, it’s crucial to have a solid business plan in place. A hair salon business plan will help you make informed decisions and give you a clear roadmap to success. Plus, having a well-researched and detailed plan can help you secure funding from investors and grants.

In this guide, we’ll go over why having a hair salon business plan is so important and give you some tips for creating one that covers all the bases.

What to Keep in Mind Before Writing a Hair Salon Business Plan

When you’re planning to open your hair salon , there are a few important things to keep in mind to make sure everything goes smoothly. To ensure nothing gets forgotten or left out, download our step-by-step guide to opening a salon – you’ll have all the information you need in one place.

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Now, let’s take a closer look at one of the most important factors to think about when writing your hair salon business plan:

Unlocking success: Uncovering your salon’s Unique Selling Proposition (USP)

Your salon’s unique selling proposition (USP) sets it apart and gives it a competitive edge. It’s the unique element that makes customers choose your salon over others. To identify your USP, ask yourself:

• What unique services or treatments do your salon offer?
• Do you specialize in a specific niche or cater to a particular target market?
• How do you provide an exceptional customer experience?

Boldly highlighting your USP in your hair salon business plan will attract attention and demonstrate your salon’s unique value proposition.

Investing wisely: Researching and budgeting for essential hair salon tools and equipment

Having the right tools and equipment to run a successful hair salon would be the most important. Each item plays a crucial role in delivering quality services.

Furniture: What theme will you have, and what setup do you need to get your salon started?

Business space: Renting vs. buying?

Staff: How many hairdressers do you need, and how much will their salary be?

Booking software: What booking software will you use to help automate the booking process?

Research the market, compare prices, and create a budget for acquiring your tools and equipment. Outlining your hair salon business plan’s estimated costs and specific equipment will showcase your preparedness and financial planning.

The client connection: Building and nurturing a loyal customer base

Keeping your customers happy is key to running a successful hair salon business . You can do this by offering personalized services, loyalty programs, and referral incentives. It’s also important to show your appreciation by giving special discounts and really listening to their needs.

Building trust with your customers is key to keeping them coming back. If you focus on providing exceptional service, you’ll have a loyal customer base in no time!

Beyond aesthetics: Designing a hair salon that blends style and function

When you’re putting together a business plan for your hair salon, remember to include a section about creating a cool and functional space.

The design and layout of your hair salon play a vital role in creating a welcoming and functional space. Consider the salon’s ambiance , layout efficiency , and comfort for clients and staff. You want it to look great, but also be practical for your team to work in and for clients to move around comfortably.

Make sure to cover all the important details and show that you’re prepared and strategic in your planning. And don’t forget to include an executive summary – this part is key for investors and lenders to get a quick overview of your hair salon business.

How to Write a Hair Salon Business Plan?

Every hair salon business plan should always include:

• Executive summary
• Company description
• Market analysis
• Competitor analysis

Operation strategy

• Marketing plan

Staffing and management structure

Financial projections and budgeting, risk analysis and mitigation plan, executive summary of the hair salon business plan.

When you’re putting together a hair salon business plan, it’s a good idea to save your executive summary for the end . That way, you can include all the important details about your business. The executive summary is basically a big-picture overview that you’ll share with potential investors and lenders. You’ll want to include stuff like your goals, strategies for success and growth, financial projections, and an analysis of your competitive advantage. Anything that might catch the eye of a potential funding source should be in there.

For example, did you know that the global beauty market is worth a whopping $511 billion ? And just last year, the Beauty and Personal Care industry brought in $564.40 billion in revenue. Experts think that the industry will keep growing at a rate of 4.76% per year from 2022 to 2026.

When you write your executive summary, it’s really important to show that your ideas are feasible and effective . A well-crafted summary can grab an investor’s attention by showing that you’ve done your homework and that your hair salon has real potential.

It’s also super important to write a great hair salon description. That’s your chance to make a great first impression and really show off what makes your hair salon special. Try to capture the essence of your hair salon in a way that really grabs people’s attention.

Painting a compelling hair salon description

When you’re describing your hair salon, start by giving the reader a feel for the place. Is it cozy and intimate or modern and trendy? Make sure to let them know about all the hair and beauty services you offer, especially any unique treatments or techniques you specialize in.

What makes your hair salon stand out? Maybe you have an amazing team of hair stylists who are passionate about what they do. Or maybe you use eco-friendly products that your clients love. Whatever it is, make sure to highlight those special qualities that make your hair salon one-of-a-kind.

Keep your description short and sweet, but make sure to get your message across . Let your excitement for your salon shine through in every word you write.

Market analysis, target market, and industry trends

Before opening your hair salon, it’s a good idea to figure out what your potential clients are looking for. Take a look at your competition and see what they’re offering – that way, you can find a way to stand out in the local market.

Don’t just think about age and gender when it comes to your target customers; you should also consider their interests and what motivates them . Knowing what makes them tick can help you create marketing messages that really speak to them.

If you’re not sure where to start with market analysis, Coursera has a great article that can give you some helpful tips.

To really set yourself apart from other hair salons in the area, it’s important to do a deep dive into your competition. Find out what they’re doing well and what they could improve on, and use that information to make your own hair salon even better.

Now comes the thinking part of analyzing the market and industry trends . This step is essential for your hair salon business plan. You want to understand who your ideal clients are so you can tailor your salon’s offerings and marketing strategies to their needs and desires.

Analyze your competition and how you can excel

When you’re checking out your competitors, don’t just glance at their website and social media pages. Take a deep dive into their customer reviews too, so you can really see how people feel about them. This will give you a better idea of their brand and what they’re doing well or not so well. Look for opportunities where you can stand out from the crowd by offering unique services or top-notch customer care .

It’s super important to keep on top of what’s happening in the beauty industry too. Keep your eyes peeled for new players and trends to stay ahead of the curve.

Running a successful hair salon is all about being organized and efficient. This means hiring talented stylists , giving them the support they need through training and a positive work environment, using a reliable scheduling system , and keeping your inventory in check. Try to build strong relationships with your suppliers too, so you always have the supplies you need on hand.

Here’s how to optimize your operations and what aspects to include when writing your hair salon business plan:

Staffing and Training:

• Hire skilled hair stylists and provide comprehensive training.
• Foster a positive work environment for teamwork and motivation.

Appointment Management:

• Use a reliable scheduling system such as Trafft to minimize wait times.
• Utilize software for automated reminders and calendar management.

Inventory and Supplies:

• Maintain an organized inventory and restock as needed.
• Establish relationships with reliable suppliers.

Salon Maintenance:

• Keep the salon clean and maintain equipment.
• Pay attention to health and safety regulations.

Client Management:

• Provide exceptional service and track preferences.
• Collect and respond to client feedback.

Workflow Optimization:

• Streamline processes for maximum efficiency.
• Update workflows based on feedback.

Maintaining a competitive pricing

Developing the right pricing strategy is crucial for your hair salon’s financial success. Here’s how to create a hair salon pricing approach that maximizes profitability while staying competitive.

• Know your costs: Calculate all expenses, including rent, utilities, supplies, and staff wages, to determine the minimum price per service.
• Research the market: Analyze competitor pricing and industry standards. Consider your unique selling points and target market when setting prices.
• Tiered pricing: Offer different service packages at various price points to cater to different budgets and attract a broader customer base.
• Add-ons and upselling: Recommend additional services or products during client consultations to increase the value per transaction and boost revenue.
• Monitor and adjust: Regularly review your pricing strategy based on market trends, customer feedback , and financial goals. Make necessary adjustments to remain competitive and profitable.

By implementing a well-designed hair salon pricing strategy, your hair salon will cover costs, generate revenue, and deliver value to your customers.

Marketing and advertising plan

To create a winning hair salon marketing plan :

• Set clear marketing goals : increase brand awareness, drive foot traffic, and boost online bookings .
• Explore marketing channels : social media (Facebook, Instagram), local newspapers, and radio.
• Craft a compelling message : highlight unique selling points (exceptional customer service, talented stylists, latest trends).
• Embrace digital marketing : create a user-friendly website , showcase services, feature testimonials, and allow online bookings.
• Leverage social media : engage with the audience, share styling tips, and promote special offers.
• Consider partnerships : collaborate with local businesses, influencers, or complementary salons.
• Measure and track : monitor campaign success, track website analytics, and gather customer feedback.
• Optimize and refine : use data insights to improve marketing strategies over time.
• Position your hair salon as the go-to destination for hair styling services in your local market.

There are plenty of great hair salon marketing ideas you can put into practice to ensure your salon gets maximum exposure.

Don’t forget to include details about employee and management structure in your hair salon business plan. For your hair salon to really take off, you need a strong leadership team to steer the ship. Look for people who have the right experience and know-how and are just as passionate about the salon biz as you are.

When you talk about your team, really hype up their qualifications and skills. Let people know about their deep knowledge of the industry and how they’re total pros at handling day-to-day operations. Be sure to explain their specific roles and how their expertise is going to help make sure your hair salon is running smoothly.

If your team members have some special training , like in hair reconstruction, definitely mention it. It’ll help set your salon apart and make it even more legit in people’s eyes.

So, before you start your hair salon business , you need to figure out how much money you’re going to make. This includes everything from what services you’ll offer to how much you’ll charge. Take a look at what other salons in your area are doing and what your potential customers are willing to pay.

Next, you have to think about expenses . Rent, utilities, employee salaries, inventory, marketing, and other costs all add up. Make a list of everything and estimate how much they’ll cost you on a monthly or yearly basis.

One thing you don’t want to forget is your breakeven point . This is the number of services or products you need to sell to cover all your expenses. It’s important to know this so you can set realistic goals and measure your financial performance.

Creating a budget is key to having a solid financial plan. Think about where you want to put your money, like marketing, equipment upgrades, staff training, and supplies. Make sure you don’t overspend and stick to your budget.

Oh, and don’t forget about technology! Setting up a reliable booking system can make your life a lot easier and keep your clients happy. There are some great options out there, like Trafft . So, keep that in mind when you’re making your budget.

Why Trafft?

Let’s paint a picture: You’re opening a hair salon;  your dream, finally taking shape. That’s thrilling, right? But hold on! It’s also daunting . The appointments, the management, the scheduling – it’s a tangled web.

Enter Trafft . It’s your new best friend, your invisible manager. Here’s why :

• 24/7 availability: Trafft handles your bookings, 24/7. Sleep easy knowing your customers can book anytime, from anywhere.
• No double-booking disasters: Trafft’s smart system prevents overlaps. Say goodbye to scheduling stress!
• Payments made painless: With integrated payment solutions, money matters are managed.
• Your salon, your rules: Fully customizable settings mean Trafft adapts to your salon, not the other way around.

Now imagine: A salon where you’re the stylist, not the secretary . Free from phone tag and double-bookings. A salon where customers conveniently book and pay, then arrive to a smooth, streamlined operation. That’s not just any salon. That’s a Trafft salon .

So why not turn your dream salon into a reality? Get Trafft . It’s not just software. It’s the helping hand your business deserves. Embrace the efficiency. Enjoy the ease. Experience Trafft . Your future self will thank you.

If you’re running a salon, you need to be aware of the potential risks that might come your way and tackle them head-on. These risks could be industry-specific or internal, like staff turnover or not complying with regulations. So, make sure to cover the details of how you plan to tackle these issues and include them in your hair salon business plan.

The plan could involve smart marketing or offering new services to deal with downturns, complying with regulations to avoid legal issues and negative feedback, and investing in staff training to make sure your clients are happy. And don’t forget to keep reviewing and updating your risk analysis and mitigation plan to stay on top of any challenges.

By being proactive and staying ahead of the game, you’ll be able to keep your salon business strong and overcome any obstacles that might come your way.

FAQ on Hair Salon Business Plan

What is a hair salon business plan.

A hair salon business plan is like a roadmap. It guides the direction and future of your business. It explains things like what services you’ll offer, who your customers are, and how you’ll make money. It’s basically your playbook for running the salon and attracting clients.

How important is a business plan for a hair salon?

Oh, it’s super crucial. Not having a plan is like driving with a blindfold on. It’s a tool to attract investors, secure loans, and understand your business better. You’ll be less likely to overlook important details, and you’ll have a clear vision to work towards.

What should a hair salon business plan include?

Your business plan should cover several key areas. Think of your services, target market, marketing plan, financial projections, and operational strategies. Also, don’t forget a solid competitive analysis. This way you know who you’re up against and can work to stand out.

How detailed should the hair salon business plan be?

Your business plan should be as detailed as possible. The more detailed, the better. It should cover everything from your business name, location, services, and pricing, to how you’ll advertise. Think about it as your salon’s blueprint.

How to do market research for a hair salon?

Start by looking at other salons in your area. What services do they offer? How much do they charge? Who are their clients? Online reviews and social media are good places to gather intel. Also, consider conducting surveys or focus groups to understand customer needs better.

How to calculate the financial projections for a hair salon?

First, you need to estimate your startup costs, like rent, equipment, supplies, etc. Then forecast your sales – how many clients will you serve daily, weekly, monthly? What will be the average spend per customer? Don’t forget about ongoing costs, like salaries, utilities, and marketing.

What are the funding options for starting a hair salon?

There are several ways to fund your salon. You can use personal savings, secure a bank loan, find investors, or even crowdfund. Each method has its pros and cons. It’s about finding what suits your situation best.

How to develop a marketing strategy for a hair salon?

Start by identifying your target clients. What social media platforms do they use? What magazines or blogs do they read? Tailor your marketing efforts to reach them. Consider loyalty programs, referral incentives, and special promotions. Remember, word-of-mouth can be super powerful in the beauty industry.

How to tackle competition in the hair salon business?

Differentiate yourself. Maybe it’s offering unique services, creating a distinctive salon experience, or focusing on superior customer service. Constantly keep an eye on what competitors are doing, but don’t just copy them. Build your own unique brand identity.

How to update a hair salon business plan?

Your business plan isn’t set in stone. As your salon evolves, so should your plan. Regularly review it, see what’s working and what’s not. Make adjustments as necessary. It’s a living document that grows with your business.

Final Thoughts on Creating an Effective Hair Salon Business Plan

Congratulations! You’ve reached the end of this ultimate guide to creating an effective hair salon business plan. Following the steps outlined in this guide, you have the knowledge and tools to write a comprehensive hair salon business plan that positions your salon for success.

Remember, a well-written plan is more than just a document. It’s a roadmap that guides your hair salon’s growth and is a valuable tool for attracting investors, lenders, and stakeholders.

Throughout this guide, we’ve explored essential elements such as understanding your target market, analyzing competition, developing a strategic marketing plan, establishing efficient operations, and setting a profitable pricing strategy. We’ve also emphasized the importance of financial planning, risk analysis, and creating a solid management team.

As you embark on your hair salon venture, stay focused on delivering exceptional customer service, staying abreast of industry trends, and continuously refining your strategies based on market feedback. With dedication, proper planning, and a passion for beauty and style, your hair salon can thrive in the competitive beauty industry.

• Jovana Smoljanovic Tucakov

Jovana Smoljanovic Tucakov is a Content Marketing and SEO Specialist who uses both words and data to communicate a message and deliver value. With more than 5 years of experience in digital marketing and content production in the IT industry, she loves identifying and solving the readers’ pain points and creating targeted content.

Curious about the human mind and emotions, especially those that drive consumer behavior. Likes fitness, food preparation, board games, reading (both for pleasure and learning), and binge-watching Netflix.

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Free Hair and Beauty Salon Sample Business Plan PDF

Elon Glucklich

6 min. read

Updated February 7, 2024

Looking for a free,  downloadable hair and beauty salon sample business plan Word doc  or  PDF  to help you create a business plan of your own? Bplans has you covered.

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching an upscale, full-service salon in a bustling city or a neighborhood barbershop, the details will be different, but the bones of the plan will be the same.

Are you writing a business plan for your salon because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.

No two salons are alike. Your business model will be different if you’re renting space to independent hairstylists, rather than taking on employees, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success.

• What should you include in a hair and beauty salon business plan?

Your hair and beauty salon business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

• Executive summary
• Company summary and funding needs
• Products and services
• Marketing plan
• Management team
• Financial plan

One of the things that makes a salon business plan different from some service-based business plans is that you might decide to offer a combination of products and services.

Maybe you’ll sell shampoo, beard oil, or other cosmetics and beauty products, in addition to offering services like haircuts, manicures, or massages. If that’s the case, make sure you include your ideas for upselling products to customers to increase the value of every appointment you book.

Here’s an example of a salon business plan outline.

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• The 7 elements of an effective hair and beauty salon business plan

1. Executive Summary

The  executive summary  provides a high-level overview of your business plan. It should outline the objectives of your hair and beauty salon, such as to offer high-quality services, to expand the client base, or to break into a new market.

Your salon’s mission statement should describe its purpose and what sets it apart from competitors. For example, you may aim to offer a personalized experience for each customer or provide eco-friendly hair and beauty services.

The keys to success are the factors that will help your salon thrive. These may include a prime location, hiring experienced staff, excellent customer service, or a unique product and service range.

2. Company Summary and Funding Needs

The company summary offers a detailed overview of your salon, including its legal structure , location, and history. Also, it highlights your salon’s funding needs if you are seeking financial support.

Clearly state how much funding you need, what you will use it for, and how it will benefit the salon. For instance, you may need funds to renovate the premises, purchase equipment, or boost marketing efforts.

3. Salon Products and Services

This section should detail the products and services your hair or beauty salon will offer. These may include haircuts, hair treatments, manicures, pedicures, massages, and beauty treatments.

If you plan to retail beauty products such as shampoos, conditioners, or skin care items, include this information too. Highlight any unique services or products that differentiate your salon from competitors.

4. Salon Marketing Plan and Analysis

Your marketing plan should outline the strategies you will use to attract and retain customers. These strategies might include social media advertising, loyalty programs, partnerships with local businesses, and special promotions.

Additionally, you should conduct a thorough market analysis. Understand your target customers, their preferences, and their spending habits. Identify your competitors, their strengths and weaknesses, and how you can differentiate your salon.

5. Salon Management Team

The management team section provides information about the salon’s key personnel. This could include the salon owner, managers, stylists, beauticians, and other staff members. Highlight their roles, responsibilities, qualifications, and experience.

If you plan to rent chairs to independent stylists rather than hiring employees, describe how this arrangement will work and the advantages it offers for your business.

6. Financial Plan and Forecasts

Your financial plan should present detailed financial projections, including revenue, costs, and profitability. Include a cash flow statement, income statement, and balance sheet. This section should clearly demonstrate the salon’s potential profitability and financial viability.

Also, outline your pricing strategy. How have you priced your services and products, and how do these prices compare with competitors? What are your wage costs, and how will they affect your profitability?

7. Appendix

The appendix includes any additional supporting documents that complement your business plan. This might be market research data, lease agreements, employee contracts, or licensing and permit documents.

While not always necessary, the appendix can provide valuable context and proof to support your business plan’s content.

• Crafting a Successful Salon Business Plan: Key Considerations

Understanding your target clientele’s needs is crucial to writing a hair or beauty salon business plan that you can put into action. To ensure your business plan is the foundation of a growing operation rather than just checking boxes, ask yourself whether you’re taking these considerations into account.

1. Comprehensive Services Offering

In the beauty industry, customer preferences vary significantly, and staying versatile in your offerings can help cater to a broader clientele. Include a wide range of services that cater to different demographics. You may also consider offering unique or specialized services that distinguish your salon from others.

2. Pricing Strategy

Pricing can make or break your salon. Competitive pricing attracts customers, but your pricing should also cover your costs and ensure profitability. Effective market research can help you understand the average cost of services in your area, which you can use to set your prices competitively.

3. Salon Atmosphere

The ambiance of a salon plays a significant role in attracting and retaining customers. Consider factors like décor, cleanliness, and customer service when planning your salon.

4. Staff Training and Expertise

Quality service is crucial in the hair and beauty industry since word-of-mouth exposure from existing clients is a major driver of new business. Investing in ongoing staff training ensures that your team stays updated with the latest trends, techniques, and customer service skills.

5. Digital Presence

Although word of mouth is one business driver, many of today’s customers research online before visiting a salon. Having a strong online presence, including a well-designed website, effective search engine optimization and active social media accounts, can significantly boost your business.

• Download your free hair and beauty salon sample business plan PDF

Download this  hair and beauty salon sample business plan PDF  for free right now, or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

There are  plenty of reasons  salon business owners can benefit from  writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Hair Extensions Business Plan Sample

NOV.01, 2013

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.

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

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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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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 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

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.

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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

Hair Business Plan Template & Guidebook

Starting a hair business can be daunting and overwhelming. With so many questions on how to get started and where to focus your energy, it’s easy to feel lost. But now, you don’t have to worry anymore – the #1 Hair Business Plan Template & Guidebook makes the process of launching a successful hair business simple and stress-free! Read on to discover how this ultimate guidebook can get you up and running in no time.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Hair Business [11 Steps]
• 10+ Best & Profitable Hair Business Ideas [2023]
• 25 Catchy Hair Business Names:
• List of the Best Marketing Ideas For Your Hair Business:

How to Write a Hair Business Plan in 7 Steps:

1. describe the purpose of your hair business..

The first step to writing your business plan is to describe the purpose of your hair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a hair business:

Our mission is to provide our clients with a premium hair styling experience that is tailored to each individual and which will exceed their expectations. We are committed to offering the highest level of service, craftsmanship, and value while creating stunning looks that reflect our clients' unique personalities.

2. Products & Services Offered by Your Hair Business.

The next step is to outline your products and services for your hair business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your hair business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your hair business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your hair business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a hair business?

• Salon chairs
• Hairdryers/curling irons
• Combs, brushes, scissors, etc
• Products to style hair (gel, mousse, hairspray, etc)
• Makeup, mirrors, capes
• Business permit

5. Management & Organization of Your Hair Business.

The second part of your hair business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your hair business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Hair Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a hair business varies based on many different variables, but below are a few different types of startup costs for a hair business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your hair business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your hair business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your hair business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Hair Business Plans:

Why do you need a business plan for a hair business.

A business plan is an important tool for any business, including a hair business. It helps you to identify your goals and objectives and plot out a roadmap to reach them. It can also help you to assess financial risk, analyze market trends, identify customer needs and develop strategies for success. Additionally, it can be used as a tool to help secure funding from investors or lenders.

Who should you ask for help with your hair business plan?

You may want to ask a mentor or advisor in the hair industry for help with your business plan. You can also contact a business consultant or a small business incubator program for assistance. Additionally, you can research online for tips and templates to get started.

Can you write a hair business plan yourself?

Yes, it is possible to write a hair business plan yourself. Before writing your business plan, it is important to do research on your competitors and the hair services you plan to offer. Make sure you consider all the necessary aspects of creating a successful business, such as costs, pricing, marketing strategies, target demographic and more. Once you have done your research, create an outline for your plan that includes an executive summary and market analysis along with all of the pertinent information about your proposed business. Finally, flesh out each section with as much detail as possible in order to provide potential investors with a comprehensive view of your business goals and objectives.

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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.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

•  Contact Us

• February 27, 2024

How to Write a Hair Salon Business Plan

Are you thinking about opening your own hair salon? Or maybe you already have a salon and are thinking about opening another location?  

Well, when it comes to opening a new salon business, knowing how to write a hair salon business plan can make or break your success. The good news is—we’re here to help. 

In this article, we’ll go over the ins and outs of creating a hair salon business plan. This includes everything from market analysis and financial projections to your goals for the future. Having a plan will help you obtain funding and stay on track as you grow. 

Let’s get started. 

Do I Really Need to Write a Business Plan for a Hair Salon?  

You wouldn’t drive from San Francisco to Boston without either a GPS or a map, right? So, you shouldn’t run a business without a plan either. 

A hair salon business plan is a roadmap for your beauty business. Whether you have two chairs or 200, it’s essential for your ongoing success. 

In fact, opening or expanding a business has a lot more at stake than a drive across the country. You may have saved or taken out a loan to start your salon. And you likely have employees or contractors who are dependent on your business sense, too. 

A business plan gets you organized when you’re first starting out or opening a new location. Plus, it keeps you on track as you grow. You can reach or exceed your goals, but you must know what they are first. And you need to have a detailed set of strategies to use along the way. 

Let’s go back to our road trip metaphor.  

Suppose you want to get from California to Massachusetts. First, you figure out how many miles or hours the journey will take. Then, you divide that by how many miles or hours you can comfortably drive in a day. That’s how many days it will take. Finally, you plan overnight stops along the way for each of those days to make the drive doable. 

A salon business plan isn’t much different. You probably have goals for things like: 

• How much gross income you want to bring in 
• How much profit you want after overhead and labor 
• Ideal business model structure (e.g., booth rent vs. commission) 
• Services you would like to offer clients 
• Places where you’d like to open additional salons 

Without a specific business plan for how to make them happen, those are just pie-in-the-sky dreams. You need a more granular approach to turn them into a reality. 

For instance, how much money do you need to make each month to reach your desired net profits? If that’s how much you need to make each month, what do you need to make daily, assuming you’re open five days per week? How many chairs do you need to have? At what capacity do you need to operate? 

Not to mention, you’ll almost certainly need a formal business plan if you want to get financing for your salon. Salon equipment and real estate can be quite expensive. A bank may loan you money to get set up, but only if they see you have done your homework first. 

Lenders don’t want to back a business that is more likely to fail than to succeed. And new hair salons have an average success rate of 50% in the first three years of operation. 

That means half of those businesses will fail. Most fail not because of a lack of talent or ambition but because the owner doesn’t know how to properly run a business. You can be the best hairstylist in the world. But if you consider things like business accounting and marketing, you will likely lose more money than you are bringing in every month. 

Do you want to be in the 50% of new salons that thrive? Keep reading to learn the step-by-step method of developing a business plan for your salon. 

RELATED ARTICLE:  

Owning a Hair Salon: Your Launch Guide  

How to Write a Hair Salon Business Plan: Step by Step  

Below you’ll find information on each section commonly included in a business plan. But first, here’s a tip to help you make the most of these categories. 

Use the SMART method for setting goals. What are SMART goals ? They are: 

• Specific – highly detailed, not vague 
• Measurable – able to be quantified with hard numbers and actionable items mapped out to achieve the goal you’ve set 
• Achievable – doable within the framework of your business model 
• Relevant – related to your salon today, not somewhere else or too far in the future 
• Time-bound – tied to specific dates for end goals and milestones 

Any time you set a long-term or short-term goal, ask, “Is it SMART?” If not, dig deeper to get the details you need to make it work. 

Executive Summary  

Think of the executive summary as the introduction to your salon business plan. It gives brief information about: 

• The purpose of your salon and who it will serve 
• Your business objectives (offer something novel, expansion, etc.) 
• How your salon will be different from your competitors 
• Why you think the business will perform well 

For instance, you could talk about how you plan to open a salon in a busy urban area to cater to downtown employees. Your client demographic is primarily white-collar workers aged 25 to 45. 

Your unique selling proposition , or USP, is what makes the salon special. Say it’s that it will offer 20 and 50-minute appointments to fit into standard lunch breaks. Additionally, you’ll have 10-minute appointments for fast services during coffee breaks. 

Customers can get a quick trim on their fringe or ends. Beard and mustache trims are another rapid service you will offer. Everything can be booked and paid for online to streamline the process and get customers in and out in a jiffy. 

Maybe after work hours, your salon will be open for more traditional appointments. And you’ll have more quickie services available for businesspeople going out at night. They can get an updo, blowout, or style refresh before a date. On Fridays, you’ll offer manicure services too. 

In your business plan, you’d want to outline howyour USP will help your salon be successful. For our example, you might say you believe the salon will do well financially because of three factors: 

• The area is currently underserved by hair salons. 
• You are catering to the needs of businesspeople in your locale. 
• You hired an experienced stylist who’s bringing their clients with them. 

You don’t have to get into a ton of detail yet. This is a proverbial bird’s eye view of your business proposition. You could, however, outline a rough roadmap of how you envision your business will start and where you see it going in one year and five years. 

For instance, perhaps you plan to start with one location and 10 chairs. Five years from now, you want to open two additional locations. At that time, you will add new services like brow waxing and makeup consultations. 

You can mention market analysis in this section, too. Market analysis looks at competition and consumer needs in your niche. However, there will be a place later in your business plan to address this in more detail. 

Remember, your executive summary is an investor or lender’s first impression of your salon business. Therefore, you want to make it shine. 

Company Description  

This section goes into detail about the structure of your company. How long have you been in business? Who are the owners and managers? 

You’ll also want to review how many employees or contractors you plan to have. Will they be employed under W2 status, or will they contract as 1099 workers? 

Will hair stylists pay you a fee for the use of a chair? Will your salon take a cut of their fees? How will tipping be structured? 

For example: 

• Our salon is a startup organization that is not yet in business. 
• It is co-owned by two stylists who participate 50-50 in leadership. 
• There will be 10 chairs in total in the salon. 
• Eight contract stylists will be working as 1099 independent contractors. 
• Contract stylists will pay a monthly chair rental fee and a percentage of their billables to the owners. 
• All tips will go to the employed stylists, with a percentage going to a shampoo assistant. 
• Contract stylists make a commission on products sold in the salon. 
• You will also have two paid receptionists who will be W2 employees. 

You will go into more detail about financials in the Services and Pricing section. But this section should give readers an understanding of the basics of your planned salon operations. 

You can also include funding or investing requests in this section. Again, you will have further opportunity to dive into financials later. But touching on what you need to open or expand gets readers primed as they go through the next four sections. 

Market Analysis  

The market analysis section of your business plan is another area where you can wow readers and make your salon stand out. It answers the question, “Why you, and why now?” 

Remember, you don’t want to fit in with all the other salons in the area. Instead, you want yours to be unique . 

Your hair salon might be unique because of its business model, like the hypothetical one described in the executive summary. Or it could be you have a string of well-known stylists. 

Perhaps you offer extra luxury services and product lines. Maybe you offer great prices. It could be the whole vibe of your salon that’s one of a kind. Maybe it’s a retro nod to the ‘70s or a high-tech glimpse into the future. 

You don’t want to pitch your salon with a kitchen sink-style of features. After all, when you appeal to everyone, you really appeal to no one. But you can list several unique attributes that will give you a competitive market edge. 

In this section, you’ll show what the current market is like in your location. How many other salons are within a mile or two? Who do they cater to? Is there a gap you can fill to capture more market share? 

Be realistic. If everyone who comes through your door is on a tight budget, you can’t offer $300 color jobs. You need to match your services to your demographics. 

If you’ve ever sold a real estate property, you’ve done something similar to a business market analysis. You or your agent prepare “comps” or comparables. The comps show how your property is special, while reviewing what the rest of the area has to offer. 

Whether your salon is brand new or you’re opening a new location for your existing salon business, you may need to conduct market research. You can do this on your own or hire a consultant to do it for you. 

The more populated the area in which you operate, the more complicated market research is likely to be. If you’re in a suburb or rural community, there may only be a few hair salons to compete with. 

Don’t forget to include how your USP and ability to fill a need relates to industry trends. Let’s use the example above. There is a current national trend towards more online conveniences for salon customers. So, offering online payments and booking is going to help you stay at the front of the curve. 

Also, employees are feeling busier than ever these days. They struggle with work-life balance. And many are returning to the office after working remotely for several years. 

Your salon leverages this trend as well by providing stress-free quick appointments that fit into work breaks. Workers can get their hair done over their lunch hour and make better use of their personal time after work. 

If you have an existing business that you’re expanding, you can survey your clientele. Maybe you’re going to a second location because it’s underserved. Or perhaps you’re adding more services because that’s what clients want.  

It’s great to be able to give objective data that says there’s a need for your services. 

Hair Salon Industry Trends for Growing Your Salon Business  

Marketing Strategy  

How do you plan to promote your new salon or additional location? That’s the focus of this section of the plan. 

Some common salon marketing methods include: 

• SEO website 
• Social media accounts 
• Paid advertising 
• Loyalty programs 
• Cross-promotion with other businesses 
• Flyers in area office buildings 
• Bulk mailings with coupons 
• Free makeovers 
• Local news editorial coverage 
• Online review platforms 

An SEO (search engine optimized) website is a great place to start promoting your business. You can add other components later. An optimized website is set up to rank higher on search engines like Google and Bing. 

How do you improve a website’s SEO? 

• Use keywords related to your exact services that clients would search for when looking for a hair salon. 
• Be sure to mention your location multiple times on the website, including your state and local landmarks. 
• Add a blog for value-added content with links to authoritative sources. 
• Get your salon mentioned on other websites and in social media mentions. 

This section overlaps with your market analysis. You’ll be using your unique selling proposition to focus marketing campaigns. Every marketing effort is an opportunity to promote what makes your salon stand out. 

Talk about how you plan to cement the two cornerstones of a healthy salon business: 

• Repeat customers who book appointments regularly 
• New customers who keep things fresh and balance natural attrition 

How to Design and Roll Out a Beauty Salon Rewards Program  

Management and Organization  

Here’s where you can go into more detail about your salon’s company structure and staff payment plan. You can include elements like credentials here, particularly if you or a manager have a business background or education. 

Don’t simply list how you plan to pay workers. Explain why this is best for your salon business’s long-term financial health. 

Are you and any other owners taking a salary? What corporate structure are you using (LLC, S corp, etc.)? Your state may determine how you want to set this up.  

Speaking with an accountant can clarify questions for you, especially about taxes. 

Services and Pricing  

This section of your hair salon business plan outlines the meat and potatoes of what your salon will offer. It is essentially a menu of all the services and treatments you provide. It also includes prices for each. 

You can mention why you chose the pricing model you did. For example, if you’re serving affluent clients in a resort area, you can justify charging a little more. Or you might do group pricing because you serve a lot of bridal parties. 

Don’t forget to add any products you plan to sell. Why is carrying these items beneficial to your business? 

Financial Projections  

Financial projections are the nuts and bolts that lenders want to see. They’ll also keep you on the right path as you grow your salon. 

You’ve already outlined your services and pricing. Now, it’s time to do the math and calculate what that means in terms of income. 

Answer these questions first: 

• What do you expect your salon to gross (total income) in a year? 
• What are your overhead expenses (rent/mortgage, staff, utilities, wholesale supplies, etc.)? 
• What portion of your expenses are due to payroll? 
• Do you have to make capital purchases for equipment? Will these be paid with a lump sum, financing, or rental payments? 
• What is the net profit you expect (gross income minus overhead and expenses)? 
• Where do you predict expenses or income will change over the next few years? 

You want to make your business plan financial projections look truly professional. So, break them down into these categories: 

• Sales forecast – total sales expected over the next several years 
• Expenses budget – all the costs you need to operate 
• Profit and loss (P&L) statement – a 12-month summary of revenue versus expenses 
• Cash flow statement – how cash moves in and out of your business, including monthly payments 
• Projected balance sheet – items that aren’t in your P&L, like interest debt, equity, and other factors that affect the net worth of your business 
• Break-even analysis – what you need to earn (at least) to make your expenses and start turning a profit 

A certified public accountant (CPA) can help you put together this part of your business plan for a reasonable fee. It’s well worth it if it helps you obtain investors or bank funding. 

How You Can Start Writing a Hair Salon Business Plan Right Now  

Ready to get started on your hair salon business plan today? Use these tips right away to make it both convincing to lenders and helpful as an internal roadmap: 

• Write a mission statement. To write a solid executive summary, it’s helpful to first compose a mission statement. This delves into why you want to open your business in the first place. Some people include this in their executive summary. Others keep it private and use it as an inspirational jumping-off point. 
• Include milestones in your financial projections. These are points where you will examine progress and see if you’re on target. Be ready to course correct if you’re not hitting your goals. 
• Compile an appendix. It’s a good idea to include an appendix in your business plan with copies of extra materials. This is an ideal place to include photos of your salon, certifications, licenses, and financial documents. It will keep everything organized for you and make you look more professional to lenders. 
• Enlist help. If you have questions about certain sections of your salon business plan, consider consulting with the appropriate professionals. Paying a one-time fee to an attorney or CPA can save you money and headaches down the line. You could even consider hiring a business manager to deal with office and financial issues. 
• Research your competition. If you’re not sure what services to offer or how you stand out, do some in-person recon. Visit competitor salons and check out influencers on social media. How can you align with service gaps and trends to make the most of your business? 
• Explore salon management software. Salon management software can save you a lot of time and make your job a lot easier. For instance, you can use it to quickly and easily generate reports to keep a pulse on your performance. It’ll also help you with other tasks related to your financial success. The best salon management software can automate appointments, keep track of inventory, and assist with marketing. 

Learn How to Manage a Hair Salon Business with SalonBiz  

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Sample Hair Related Venture Business Plan

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.

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.

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