Do you want to know how much money you need to start a business selling hair extensions? If YES, here is a cost breakdown to open a hair extension store.
It is an indisputable fact that selling hair extensions is big business. Once you have access to quality products, and you know how to reach out to your target market, you will sure make some good profits out of this trade. One of the symbols of a woman’s beauty is her hair.
To achieve good looks, women make their hair with all types of hair extensions and some women go to the extent of changing their hair extension almost every week. One good thing about the hair extension business is that you can start it small from home without renting a shop, and your customers will still reach you on your mobile phone when the need arises. So, the business is quite simple and affordable to start.
Types of Hair Extensions
There are different types of hair extensions available in the market including; synthetic, human hair, European, Brazilian hair, Peruvian hair, Indian hair, wigs, etc. They come in different inches, colors, different makes, and their prices vary too.
Depending on their startup capital and depending on who their customers are, some people may consider selling only human hair, while others may prefer to sell all types of hair extensions.
It is advisable to sell different types of hair extensions because as people are different, so are their tastes and likes. Being known for different kinds of brands makes you earn more customers who in turn will help promote your business by word of mouth.
To start a hair business means you must invest two things: time and money. For example, if you do not have the money to hire a marketing consultant or web designer, you can decide to invest time to learn and do it yourself. If you have the money, you can build up brand name recognition by spending big bucks on advertisement.
You will need to do a lot of research to find out all you can about the market you are about delving into. It is advisable you do this research by yourself.
You can start by googling hair stores, hair suppliers, and perform a market survey. You will have to invest more time to talk about hair with a lot of different people. This is the fun part because it will stimulate your brain, thus helping you think outside the box.
To hire a consultancy firm to gather the information about the hair market will cost you between $ 1,000 and $1,500. Some already have this information on the shelf and others will have to work collect the data for you. If you do not have this capital, then be prepared to do it on your own. If you prefer to do it yourself, you can decide to go for training on market survey for a couple of dollars.
How Much Money Do You Need to Start a Hair Extension Business?
Every business has its own specific cash needs at different stages of development, so there is no universal method for estimating the start-up costs for your hair extension business. Some stores start on a small budget, while others may need considerable investments in inventory or equipment.
The first step to estimate the money you need is to have a clear idea about the kind of business you want. Do you want an automated hair store that is 100% online? A combination of an off-line store annex salon and an online store? Or a salon with staff or without. There are many possibilities and the same number of possible start-up costs.
If you need to a building for your store or salon, you need to calculate the financing expenses or rent too. However, if you are going to start an online store, then you may need as little as $600. Most of this money goes to the web hosting companies, the platforms you use and you hair extensions.
What Kind of Expenses Will You Encounter?
The money you need to start a hair business is not only for the inventory, stationary and marketing expenses. You also need to take into account the cost of doing business for the first few months.
Some of these expenses will be one-time costs such as the fee for incorporating your business or the price of a sign for your building. Some will be ongoing costs, such as the cost of utilities, inventory, insurance, etc. It’s smart to calculate on the conservative side, and add some extra’s for the unforeseen.
Surprises always pop up for sure on the expense side of your business, so it’s best to cover those bases. There are 2 separate expense categories you will meet and they include:
Fixed and variable expenses
Fixed expenses include rent, utilities, administrative costs and insurance costs.
Variable expenses include
Inventory, shipping and packaging costs, sales commissions, and other costs associated with the direct sale of the hair. The size of your hair extension business would affect these costs either up or down.