Nowadays, people are becoming more aware of the need for beautiful, good-quality hair. They change their hairstyles often. Hence, the demand for quality hair extensions has been increasing. Therefore, the hair extension business seems to be a promising business idea. Also, the market for hair extensions is believed to hit billions in the upcoming years.
If you are a professional stylist, or just entering the hair extension business, you require a fully prepared business roadmap. So, this guide will cover all the steps on how to start a hair extensions business and become a successful entrepreneur.
Why Should You Invest in a Hair Extensions Business?
The hair accessories market has become more popular with the increased demand for real hair extensions. There are several benefits of starting a hair extension business.
Growing Demand
Hair extensions are a main beauty product used by stylists. This business has a diverse consumer base. Women, men, and celebrities need hair extensions for various purposes. Therefore, it is assumed that the hair extension market will cross $1 billion by 2025. Hence, it is a lucrative business idea in the present.
High-Profit Margins
Different types of hair extensions are used in the beauty industry. These include natural human hair, synthetic hair, and mixed hairpieces. All these products have high-profit margins. The clients need to maintain and replace their implanted hair extensions regularly. So, it is a repeat business that could be hugely profitable.
Low Startup Costs
Starting a hair extensions business requires a small capital compared to other beauty businesses. This can be started at a small scale and expanded further on demand. Due to the low startup costs, it is an ideal business for those who want to establish themselves in the beauty industry.
Growth Potential
The hair extensions business has great potential to expand. There is no boundary for demographics or geographic areas. It can reach a wider audience through collaborating with influencers and stylists. If you leverage digital marketing strategies, your business can achieve heights in the industry.
Steps How to Start a Hair Extensions Business: Get Set and Go!
It is always profitable to start a hair extension business. However, there is a need to analyze various trends before venturing into the hair extension market. It would be best to create a thorough business plan defining your goals and finances. To assist you with the process of starting a hair extensions business, here’s a step-by-step guide.
Step 1: Make a Business Plan After Analyzing the Market
Extensive market research and planning are recommended before starting a hair extensions business. You must choose your target audience and discover their preferences and needs. Also, you must research the competition in your area in the same field.
Create a thorough roadmap that you will follow during the whole journey of your business. Collect growth potential and market revenue data before starting a hair extension business.
Below are some insights into the hair extension market to establish your business.
- The hair extension business is rapidly growing due to the ever-increasing demand for better hair solutions. The global market is expected to cross $1 billion by 2025 at a compound annual growth rate of more than 12%.
- The market is divided into several categories such as human hair, synthetic hair, and blended hair. These acquire 60%, 30%, and 10% market shares respectively.
- The audience for the products includes women and men aged 24 to 45.
- 15% revenue growth per year is expected for the hair extension market for the next three years.
Step 2: Calculating and Managing the Costs for Your Business
Before starting a hair extensions business one must calculate and collect the required expenses. Here’s an overview of the costs of various services needed to start a business in the hair extension industry.
- Registration and Licensing- $500 to $2,000
- Insurance- $1,500 to $5,000
- Website Development- $1,000 to $5,000
- Marketing and Advertising- $2,000 to $10,000
- Equipment and Furniture-
- – Styling chairs- $500 to $2,000
- – Mirrors- $200 to $1,000
- – Hair extension application tools- $500 to $2,000
- Staffing- $2,000 to $10,000
- Other Utilities- $500 to $2,000 (monthly)
- Hair care products- $200 to $1,000 (monthly)
These costs may decrease or increase based on the location, size of your business, and marketing strategies used for your business.
To manage funds for starting a hair extension business you can use-
- Personal savings
- Bank Loans
- Loans from private firms
Step 3: Officially Register Your Business and Secure Required Licenses
To operate any business legally, one must fulfill all the necessary registration and licensing processes. You must consult with your state or country authorities to know the mandatory legal paperwork in detail. This is because every place has its regulations to follow. However, here are some common licenses required.
- Cosmetology license and barber license
- Business License
- Tax ID Number
- Local Business Permit
- Health and Safety Licenses
- Business Insurance to safeguard your enterprise against risks
Step 4: Building Partnerships with Reliable Hair Extension Suppliers
Good-quality products are crucial to starting a hair extension business. For this, you must find trustworthy suppliers in the market. You will need to research and evaluate the different suppliers. Then, negotiate with them for the best quality at the lowest price.
When you build relationships in the market, you can get better deals ahead of time. This results in satisfactory service delivery to the customers and, resultantly, grows your business fast.
Step 5: Setting Up Your Workspace
The design of a workspace is the foremost thing a client experiences. It should be appealing and eye-catching to the first-time visitors. Therefore, creating an inviting workspace for your hair extension business is one of the crucial steps. For this, you need to take multiple factors into account.
Location of Your Shop
While selecting the location, you must keep in mind the accessibility and visibility of that place. It should be easily findable to the customers. To make it more visible, you can use sign boards beside the pathways to your place. Highlight the logo and name of your business on big display boards so that it is easily visible.
Design of Your Working Area
Before constructing the shop, make a layout of the workspace. Build private consultation areas, hair extension application areas, and reception areas in your workplace. Install proper lighting and ventilation.
Equipment and Furniture
Buy necessary branded equipment for implanting hair extensions. Give a sophisticated touch to your place with styling chairs, mirrors, and other furniture. This would reflect your brand’s image. Also, incorporate digital booking and payment setups at your place. This will make your business run smoothly and enhance customers’ experience at your place.
Step 6: Hiring Qualified Staff
A qualified team is necessary to start a hair extension business. You must find licensed stylists with expertise in hair extension applications and other services. You can hire experienced people through various platforms after interviewing them according to your needs. To establish a successful hair extension business you must
- Create a positive work environment for better outcomes.
- Provide training to your staff regarding new trends in the market.
- Discuss your vision with your staff so that they can help you achieve your goals.
Step 7: Strategies for Branding and Marketing of Your Business
You can create a strong image for your business through a comprehensive marketing plan. You can use various marketing strategies to promote your hair extension business online. Here’s an overview of different digital marketing methods.
Website Creation
Developing a robust website for your business will enhance your online presence on search engines. People will find you easily online. To rank high on the search results, use search engine optimization techniques. You must post user-friendly content such as blogs, images, and videos showing your business on your business website.
Social Media Marketing
Social media marketing is in trend nowadays. This is due to the increasing popularity of social media applications. For this, you must create official accounts for your business on different social media platforms. Then, regularly post the easy-to-digest content for your customers. Ask them to interact with you through messages and comments.
Influencer Marketing
In this method, you collaborate with an influencer who introduces and recommends your products to the public. This marketing strategy is fruitful and brings results faster than other methods.
Paid Advertising
You can run paid ads about your products on Google, YouTube, and other social media platforms. With this method, you can track the results of your campaigns and stop the ads according to your wish whenever you want.
Referral Programs
Apart from digital marketing, you can also opt for traditional marketing methods. You can start referral marketing schemes to lure customers. For example, offer vouchers or gifts to those who would refer your business to others and bring clients to your shop. Also, you can offer discounts on first-time service from your shop.
You must connect to a leading digital marketing agency in your area for better and faster results for your online marketing strategies. They can improvise and create an effective plan for marketing your business.
To learn about reliable digital marketing companies read
12+ Best Digital Marketing Companies in Noida to Grow Online
Top-Notch Digital Marketing Companies in New York
Final Words
Venturing into the hair extension industry can be a thrilling experience. When you start your business in a well-planned manner, nobody can stop you from getting success. Therefore, you must stick to your business roadmap and launch your hair extension business.
For online advertising of your business, it is always advised to collaborate with a successful digital marketing company, like New Traffic Tail. They will make your dreams a reality with strategic planning and marketing of your business.
We hope this blog will help you understand how to start a hair extension business. If you want to ask any questions regarding the topic, let us know in the comments section below. We’ll highly appreciate your presence and effort. Good luck with your future endeavors in the hair extension business!
Also Read :
How to Start a Stitching Business at Home: Weaving Success
FAQs
Q1: How can I get a cosmetology license to start a hair extension business?
There are some requirements to get a cosmetology certificate.
- At least 16 years old at the time of cosmetology license exam.
- Graduate from a recognized cosmetology school.
- Pass the licensing exam for cosmetology.
Q2: What type of insurance do I need to start a hair extension business?
You must get liability and business insurance before starting a hair extension business.
Q3: How can I set a pricing strategy for my hair extension business?
When determining prices for your products, you should take into account
- Cost price of the products so that you can get a profit margin.
- Competition around you in the same field.
- Additional services provided by you.
Q4: How can I select the best digital marketing company to market my hair extension business?
Make a list of the best digital marketing service providers in your area. Then, compare their services and prices and select according to your needs.
