business plan hair extensions

Hair Extensions Business Plan Template

Written by Dave Lavinsky

Hair Extension Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create professional plans to start and grow their hair extension companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hair extension business plan template step-by-step so you can create your plan today.

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What is a Hair Extensions Business Plan?

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

Why You Need a Business Plan for a Hair Extensions Business

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

Sources of Funding for Hair Extension Companies

With regards to funding, the main sources of funding for a hair extension company are personal savings, credit cards, bank loans and angel investors. With regards 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 confirm 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 hair extension companies.

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How to write a business plan for a hair extensions company.

If you want to start a hair extension business or expand your current one, you need a business plan. Below we detail how to write each essential component of your business plan:

Executive Summary

Your executive summary provides an introduction to your hair extension 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 type of hair extension company you are operating and its status. For example, are you a startup, do you have a hair extension company that you would like to grow, or are you operating a chain of hair extension companies?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hair extensions industry. Discuss the type of hair extension company you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of hair extension company you are operating.

For example, you might operate one of the following types of hair extension companies:

Hair extension services : this type of hair extension company provides placement of clip-in and glued-in extensions, or weaving.
Hair extension stores: this type of business retails hair extensions, but does not provide placement services.
Online hair extension sales: this type of business retails wigs and hairpieces, exclusively online.

In addition to explaining the type of hair extension company you will operate, the Company Analysis section of your hair extension business plan needs to provide background on the business.

Include answers to question such as:

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

Industry Analysis

In your industry analysis, you need to provide an overview of the hair extension industry.

While this may seem unnecessary, it serves multiple purposes.

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

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

The third reason for market research 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:

How big is the hair extension 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 market for your hair extension company? 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 must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Gen Z, Millennials, Gen X, and Baby Boomers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hair extension company you operate. Clearly, teenagers would respond to different marketing promotions than Baby Boomers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hair extension companies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand 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 hair extension businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes mass merchandisers and beauty supply stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other hair extension companies with which you compete. Most likely, your direct competitors will be other hair extension companies in your area.

For each such competitor, provide an overview of their businesses 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 types of hair extension do they offer (human hair, synthetic, etc.)?
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 a broader range of hair extensions, like virgin hair, Remy hair, more colors, etc.?
Will you provide specialty techniques that your competitors don’t offer?
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 hair extension company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hair extension company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to clip in and tape in hair extension, will you also offer sew in or weaving?

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

Place : Place refers to the location of your hair extension company. Document your location and mention how the location will impact your success. For example, is your hair extension company located in a busy retail district or shopping plaza, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your hair extension marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

Advertising in local papers and magazines
Reaching out to local websites
Social media marketing
Local radio advertising

Operations Plan

While the earlier sections of your hair extension 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 hair extension company, including sourcing and ordering extensions, placing the extensions, marketing, and providing consultations for potential customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new location.

Management Team

To demonstrate your hair extension company’s ability 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 beauty 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in placing hair extensions or successfully running beauty product retail businesses.

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 revenues 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 place 5 sets of extensions each week, or sell 100 pieces per month? 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 hair extension company, 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 bank 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 make sure 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.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hair extension company:

Location build-out including design fees, construction, etc.
Cost of equipment and supplies
Payroll or salaries paid to staff
Business insurance
Taxes and permits
Legal expenses

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 store / salon location lease or a product list, or any celebrity endorsements you may have received.

Putting together a well-crafted business plan for your hair extension company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hair extension industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful business.

Hair Extension Business Plan FAQs

What is the easiest way to complete my hair extension company business plan.

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

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hair extension company you are operating and the status; for example, are you a startup, do you have a hair extension company that you would like to grow, or are you operating a chain of hair extension companies?

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Hair Extension Business Plan

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

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

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

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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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About the Author

Upmetrics Team

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

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

Updated: January 18, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

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

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

1. Conduct Hair Extension Market Research

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

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

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

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

The best opportunities in the hair extension industry include:

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

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

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

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

2. Analyze the Competition

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

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

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

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

3. Costs to Start a Hair Extension Business

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

Start-up Costs

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

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

Ongoing Costs

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

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

Annual expenses:

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

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

4. Form a Legal Business Entity

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

Sole Proprietorship

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

Partnership

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

Limited Liability Company (LLC)

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

S-Corporation

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

C-Corporation

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

5. Register Your Business For Taxes

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

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

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

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

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

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

6. Setup Your Accounting

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

Accounting Software

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

Hire an Accountant

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

Open a Business Bank Account

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

Apply for a Business Credit Card

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

7. Obtain Licenses and Permits

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

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

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

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

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

8. Get Business Insurance

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

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

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

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

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

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

9. Create an Office Space

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

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

Here are ideal options to consider:

Home Office

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

Coworking Office

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

Retail Office

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

Commercial Office

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

10. Source Your Equipment

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

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

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

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

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

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

11. Establish Your Brand Assets

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

Get a Business Phone Line

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

Design a Logo

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

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

Print Business Cards

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

Buy a Domain Name

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

Build a Website

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

Design a Website

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

12. Join Associations and Groups

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

Local Associations

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

Local Meetups

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

Facebook Group

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

13. How to Market a Hair Extension Business

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

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

Digital Marketing

For digital marketing, focus on strategies like:

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

Traditional Marketing

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

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

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

14. Focus on the Customer

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

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

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

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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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Barber Shop Hair Salon Microblading Nail Salon Wig Shop See the full library of business ideas >>

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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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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The Full Truth: Mindfulness Significance In Leading Businesses | Hair Biz Radio Hair Biz Radio: How To Start And Run a Hair Extension Business

Your business is an extension of yourself, and your business can't thrive if its roots are decaying. In today's episode of Hair Biz Radio, our hosts Zakiyrah and Mikey get a little nostalgic about their 10-year journey and share some spiritual takeaways. They examine a theory about the connection between a person's wellness and business growth. This episode should interest you if you have been wondering in the last weeks how your business is draining you and how to know if you should continue to succeed. Share your journey with us at Hair Biz Radio. This podcast was recorded in the Private Label Studio for Hair Biz Radio. Learn more about Private Label. Check our Hair Business Masterclass here: Hair Business Masterclass Visit one of Private Label's locations in Atlanta, Lithonia, Tucker, Smyrna, Greenville, Charlotte, and Detroit. Say hi to your hosts! @Zakiyrah @MoranMikey Get the latest from Hair Biz Radio! / hairbizradio --- Send in a voice message: https://podcasters.spotify.com/pod/show/hair-biz-radio/message

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Hair Extensions Business Plan Template (2024)
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: The following graph below outlines the pro forma financial projections for Hairapy Extensions.
Hair Extensions Business Plan Template + How-To Guide [Updated 2024]
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a hair extension company, your marketing plan should include the following: Product: In the product section, you should reiterate the type of hair extension company that you documented in your Company Analysis.
The #1 Hair Extension Business Plan Template & Guidebook
How to Write a Hair Extension Business Plan in 7 Steps: 1. Describe the Purpose of Your Hair Extension Business. The first step to writing your business plan is to describe the purpose of your hair extension business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Hair Extension Business Plan [Free Template
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 ...
2024 Hair Extensions Business Plan Example & Template
Clients can expect to pay an average price of $350 for Micro-Link Hair Extensions, which includes the cost of the hair and the application process. At Luxurious Locks Extensions, the focus is on providing clients with high-quality extensions and expert application to ensure satisfaction and a natural, beautiful look.
How to Start a Hair Extension Business in 14 Steps (In-Depth Guide)
The hair extension industry is booming. The market reached $4.06 billion in 2022 and is projected to reach $7.9 billion by 2030, according to Fortune Business Insights.More people are turning to clip-ins, tapes, and sew-ins to avoid drastic permanent hair changes.
Hair Extension Business Plan: Blueprint for Success
A comprehensive business plan enhances understanding of the market by identifying target demographics, analyzing competitors, and developing effective marketing strategies. Planning various revenue streams and setting clear financial goals are essential for a sustainable and profitable hair extension business model.
Unlocking Success: Crafting a Powerful Hair Extension Business Plan
A well-crafted business plan is essential for the success of your hair extension business. It provides a snapshot of your company's current status and outlines the future growth plan for the next five years. A comprehensive business plan acts as a roadmap, guiding you towards your business goals and helping you secure funding if necessary.
Setting the Foundations: Essential Steps to Start a Hair Extension Business
The Four P's. The four P's of marketing, also known as the marketing mix, provide a framework for developing a comprehensive marketing plan for your hair extension business. They include Product, Price, Place, and Promotion. Let's delve into each component: Product: Define your hair extension product offerings clearly.
How to write a business plan for a hair extension company?
Creating a business plan for a hair extension company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.
Hair Extensions Business Plan Template & Guidebook
Our Hair Extensions Business Plan Template & Guidebook is designed to help you easily create a comprehensive business plan for your hair extensions business. This guidebook provides step-by-step instructions on how to create each section of your business plan, as well as helpful tips and examples to ensure that your plan is thorough and ...
How to Start a Profitable Hair Extension Business [11 Steps]
2. Draft a hair extension business plan. 3. Develop a hair extension brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for hair extension. 6. Open a business bank account and secure funding as needed. 7. Set pricing for hair extension services. 8. Acquire hair extension equipment and supplies. 9.
Hair Extensions Business 101: Full Guide (2024)
Hair Extensions Business 101: Full Guide (2024) By Sam Fisher Published January 18, 2024. 29 Min Read. SHARE. Get 10% Off Our Extensions. The content below is from the upcoming book about nothing but a hair extension business.
How To Start A Hair Extension Business
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.
Hair Extension Production Business Plan [Sample Template]
Cost of hiring business consultants - $5,000. Cost of processing hair extension machines - $20,000. Cost of store equipment and hardware (racks, shelves) - $5,000. Cost of leasing a facility for at least a year - $50,000. Cost of purchasing hair extension distribution vehicle - $30,000.
Hair Extension Selling Business Plan [Sample Template]
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.
Hair Extensions Business Plan Sample
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
Any Ideas On Selling Hair Extensions Business Plan? Read This!
Your written business plan should have a part of how to sell hair extensions online pdf. Find out and indicate the customers' demand for hair extensions in your area. It's vital to study whether people are willing to purchase human hair replacement systems. Figure out the type of hair your potential clients prefer.
'Shark Tank' Alum Cashmere Extending Hair Extension Biz
Fortune Business Insights reports that the U.S. hair extension market size was projected to grow from $2.26 billion in 2023 to $3.93 billion by 2030. Local startup Cashmere Hair Extensions has been a leader in the market since its founding by Rachel Koren (then Rachel Bernstein) and Melissa Koren (then Melissa Barone) in 2013 in the Los Angeles ...
‎Hair Biz Radio: How To Start And Run a Hair Extension Business: The
Share your journey with us at Hair Biz Radio. This podcast was recorded in the Private Label Studio for Hair Biz Radio. Learn more about Private Label. Check our Hair Business Masterclass here: Hair Business Masterclass Visit one of Private Label's locations in Atlanta, Lithonia, Tucker, Smyrna, Greenville, Charlotte, and Detroit. Say hi to ...
How to Start a Profitable Hair Extensions Business [11 Steps]
2. Draft a hair extensions business plan. 3. Develop a hair extensions brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for hair extensions. 6. Open a business bank account and secure funding as needed. 7. Set pricing for hair extensions services. 8. Acquire hair extensions equipment and supplies. 9.
Tampa streetcar extension will move forward, mayor says
The TECO Line Streetcar could be expanded beyond its 2.7-mile line. Tampa Mayor Jane Castor said at a Tampa Bay Chamber event this week that the city will put out a request for bids for an ...
Home Addition & Extension Contractors in Elektrostal'
Search 931 Elektrostal' home addition & extension contractors to find the best home addition or extension contractor for your project. See the top reviewed local home addition or extension contractors in Elektrostal', Moscow Oblast, Russia on Houzz.
Design and Build Companies in Elektrostal', Moscow Oblast, Russia
Search 71 Elektrostal', Moscow Oblast, Russia design and build companies to find the best design and build company for your project. See the top reviewed local design and build companies in Elektrostal', Moscow Oblast, Russia on Houzz.
One Market Plaza's value just dropped $510 ...
The recorded decline came roughly two weeks after Blackstone and Paramount, which jointly own One Market, paid down a $975 million loan tied to the building to secure an extension of its maturity.
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DuBrin has experience in human resource management and is a business and personal consultant in career management, leadership, and management development. Dr. DuBrin is an established author of both textbooks and trade books, and he contributes to professional journals, magazines, newspapers, and online media.... Examine the keys to leadership success with the practical, skill-building ...

Hair Extensions Business Plan Template

Hair Extension Business Plan

What is a Hair Extensions Business Plan?

Why You Need a Business Plan for a Hair Extensions Business

Sources of Funding for Hair Extension Companies

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Executive Summary

Company Analysis

Industry Analysis

Customer Analysis

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Competitive Analysis

Marketing Plan

Operations Plan

Management Team

Financial Plan

Hair Extension Business Plan FAQs

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Hair Extension Business Plan

How to Write A Hair Extension Business Plan?

1. Executive Summary

Introduce your Business:

Market Opportunity:

Marketing & Sales Strategies:

2. Business Overview

Business Description:

Mission Statement:

3. Market Analysis

Target market:

Market size and growth potential:

Competitive Analysis:

Regulatory Environment:

4. Products of Your Bicycle Shop

Describe your products & services:

Describe each service:

Quality measures

Additional Services

5. Sales And Marketing Strategies

Unique Selling Proposition (USP):

Pricing Strategy:

6. Operations Plan

Staffing & Training:

7. Management Team

Founders/CEO:

Organizational structure:

8. Financial Plan

Profit & loss statement:

Financing Needs:

9. Appendix

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

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

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

1. Conduct Hair Extension Market Research

2. Analyze the Competition

3. Costs to Start a Hair Extension Business

Start-up Costs

Ongoing Costs

4. Form a Legal Business Entity

Sole Proprietorship

Partnership

Limited Liability Company (LLC)

S-Corporation

C-Corporation

5. Register Your Business For Taxes

6. Setup Your Accounting

Accounting Software

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