The demand for beauty is increasing, along with the development of wig and hair extensions business services. If you are looking to start a hair extension business, building a successful hair extension business plan is indispensable.
So do not skip this article of ours. We will give you the most basic information about building a successful hair extension business plan and how to create the most appropriate plan.
Jump ahead to:
What Is A Hair Extension?
Hair extensions are hair products collected from people who donate or sell their original hair. People use these products quickly and easily add length, thickness, and bounce to their natural hair. So they can quickly create their favorite hairstyle.
There are many different types of hair extensions that you can choose from in your business. Depending on your wishes about your business model and the needs of your customers in the market you choose to work in, you can choose to trade Clip-In Extensions, Sew-In Hair Extensions, Micro Link Extensions, Adhesive Tape-In Extensions, or Pre-Bonded Hair Extensions for the best fit and profitability.
In addition, the length and nature of hair extension products that you want to trade-in is something to notice.
Do your customers prefer short, medium, or long-length products? Curly or straight hair? dyed or not?
You can build a hair extension business that focuses on certain types of hair extensions or diversify your products. Each approach has its own advantages and risks that you need to consider.
In addition, the origin of the hair extension also needs to be thoroughly examined. You can buy hair extensions from Vietnam, China, or India to resell to your customers.
Among these countries, hair extension products originating from Vietnam are often appreciated for the highest quality. However, the input cost is not low. Hair extensions from China and India, although cheaper, will require a lot of work to find a quality supplier.
The demand for hair extensions for different markets and customers will not be the same. You need to understand these factors to prepare and find the right source of hair extensions.
Why Is A Business Plan Important?
A business plan is usually understood as a document that states the ideas, and intentions of how to operate as well as the goals and results that business activities aim to achieve. Businesses or people who are preparing to go into business often prepare a business plan in written form, but sometimes it can also be in the form of slides, or posters depending on the use case.
The business plan outlines the potential of the business idea, the expected steps to take, and the potential for profitability. The completed business plans will be the road map for practical business activities to take place in the next stages. In a business plan, it always requires some specific strategies that helps your plan more practical and go into the right way. Therefore, it is important to have a clear plan with the optimal strategies.
In addition, the business plan also shows the feasibility of the idea and analyzes the advantages, the potential as well as the disadvantages that need to be overcome.
From it, business people can adjust their activities and plan their plans so that the profitability will be highest.
Hair Extension Industry Overview
For the hair extension industry in particular and other industries, the consumer demand for products is the main driving force for the sellers to develop. The greater the consumer demand for hair extensions, the higher the business opportunities for this product.
Therefore, to be able to come up with a detailed business plan to succeed, analyzing and understanding the market for hair extensions is a very important step. This will help you understand the needs of the buyer, as well as the opportunity to grow your business.
Talking about the wig business industry, this is a very potential business area. On average, the hair trade brings in more than 224 million dollars to the US economy every year. This business also provides jobs for more than 1,997 people. 4.0% is the number that experts forecast for the growth rate of this industry in the coming years.
In recent times, the economy is growing, and the per capita income is increasing. As a result, the amount of money spent on health and beauty care has also increased. A large amount of money used in the field of cosmetology is for the hair.
In that context, wig retail stores in general and the hair extensions business, in particular, will have a lot of room for growth. The low input cost and high demand from consumers present great opportunities for those who are looking to pursue a hair extension business.
For the hair extension business, your initial investment just needs to be focused on finding storage and investing to buy the products. Real estate rents have decreased recently, along with the development of hair trading services that allow you to enter the hair extension market with only a small amount of money.
How to make a successful hair extension business plan?
Determine Your Goals and Objectives
The first thing that you must do to be able to build your hair extension business plan is to determine exactly what goals you want to achieve. From there, you can have a roadmap step by step toward the desired results.
Think carefully about this issue. If possible, you should take the time to write an essay to clearly understand what you want. What do you want to get after 1 year? To what extent will you grow your service in the next 3 to 5 years?
Let your dreams lead the way.
Business Structure
Are you starting out alone or with a team? Will you source hair extensions yourself or will you cooperate with existing brands? Do you want to build a chain of stores or just focus on developing a single store?
All of this depends on your business goals and the potential you have. Having a plan for the structure of the business model you want to build will better show the potential growth of the idea.
In addition, after clearly defining the structure of the hair extension business model that you want to pursue, you also need to come up with an idea for hiring employees. If you just want to start with a small store, this probably won’t be necessary. However, if you want to try your hand at a larger business plan, then the human factor will be very important.
You can hire skilled people for faster success if you have enough capital to pay them for the first time when your business is temporarily not profitable enough.
Or you can also hire workers with average or good skills, training them gradually to improve service quality. Although this method takes a lot of time to improve business efficiency as well as effort to train, you will not need a large amount of capital input in paying them. However, you should remember that every effort deserves great outcomes. Therefore, do not be afraid, believe in yourself and your dreams, in the long run, you can gradually grow your business.
Market Analysis
Once you have determined the goal you want to achieve, the next thing to do is analyze the market information that you want to operate.
Do you sell directly, sell through websites, or a combination of both? Where will you sell to customers, in Europe, Asia, or Latin America?
Each market has its own characteristics, which require you to adapt and figure out how to operate so that the maximum potential for profit is achieved in the short term. Understanding the market structure and customer needs is the key to your success.
Study Your Competitors
One of the most useful ways to gain business experience is to learn from your competitors and your predecessors.
What trading methods do your competitors use? Is the method suitable for the market? Is the way they promote the product useful? If not, do you have any solution to fix it?
Learning from the strengths of your competitors as well as finding solutions from their failures is the fastest way and saves both time, effort, and money to gain experience for yourself. You will better understand the work you are about to do, as well as know the best way to succeed.
If you can get inquiries from people who’ve been in the hair extension business before, that’s very helpful. Not only will you learn from your predecessor’s success, but you can also avoid pitfalls and failures without wasting time experimenting.
Sales and Marketing
In order to achieve success in business, a product promotion plan is something that you cannot help but think about when building a successful hair extension business plan. Depending on the amount of money you can spend on advertising as well as your sales environment, you can find a suitable method of operation.
For places where online business activity is strong, it is advisable to advertise products on websites and social networks. But if your place of sale is not too developed in science and technology, you can implement more traditional advertising methods such as handing out leaflets, sticking billboards, etc.
You can also combine both methods. This method is to be able to achieve the highest advertising effectiveness for your business services. Remember, the more popular your brand is, the more known your product will be and the more potential customers will reach.
Brand Yourself
Last but not least in a successful hair extension business plan, this is personal branding.
How do you want customers to remember your hair extension business? What is special about your sales brand that attracts consumers and stands out from the competition? Answer these questions to better understand the business model you are aiming for.
Your personal brand will in many cases be a big determinant of your success. Therefore, seriously consider your potential and find your mark in the market when building a successful hair extension business plan.
FAQs
What are the job roles and responsibilities in the hair extension business?
Depending on the business model structure you set out in a successful hair extension business plan. If you alone start a business and build a personal brand, your work will be much heavier. You need to take responsibility for all of your business activities, both for success and failure.
If you build a successful hair extension business plan with like-minded people, set out clear tasks and responsibilities for each individual. This will help each person better fulfill their tasks, and avoid unnecessary disputes later on.
What are the hair extension business forms?
You can build a successful hair extension business plan to sell online, direct sales, or a combination of both.
Each of these business forms has its own advantages and disadvantages. Therefore, you should consider to get the most suitable option.
Direct selling is usually safer, avoiding additional costs. But the target audience will not be many, and costs money to rent space.
Selling online will not require you to spend a lot of money to rent a shop in a suitable location for your business, which is usually quite expensive.
But there will be risks that you may encounter such as damage to goods due to transportation, and additional costs, fees for online sales services or losses when customers cancel orders.
Should You Stock Inventory?
Have. This will allow you to quickly deliver products to better meet consumer needs. You will deliver faster, and attract more customers when your inventory is diverse and suitable for many audiences.
However, this also comes with risks, as you may not be able to sell some products. And you will have to throw them away when they’re damaged.
How will you ship the goods if you have an online business?
Depending on your geographical location and where your customers want to receive the goods, you can use the appropriate delivery methods. If the customer is near your area, you can use the available shipping service or deliver the goods yourself.
For international orders, cross-border shipping services will need you to scrutinize them to make sure the product reaches the customer as quickly as possible, with minimal damage, and at the lowest cost.
How should you choose business premises?
If you do not have a separate warehouse, you should rent a large space to accommodate your products. If you have your own inventory and only use the store for business, your storage space may not need to be too large.
However, in any case, your store should be located on the street, with many passersby and easy to find to make it easier for delivery people and consumers to approach.
Conclusion
In the above article, we have given you basic information about the hair extension business as well as how to build a successful hair extension business plan in the most appropriate way. If you have any questions or concerns, leave a comment so we can help you out.
Finally, don’t forget to follow our website to stay up to date with the latest news on hair extensions and other related products and services.
Thanks for reading!!
Contact
- ? Website: https://grudahair.com/
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- ? Whatsapp: +84902106091 (Ms Rosa – sales manager)
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