Do you want to start a wig store? If YES, here is a 20-step guide on how to start a profitable wig store business with no money and no experience. If you intend starting this type of business, it is advisable to first look at the existing laws and zonal regulations in the country or state you reside in to know what is expected of you.
You need to pay a visit to the regulatory bodies in your country to get all the information on what you need to do before you can legally open a wig store business in your city. You can start your wig store business from a small town in the United States and if you are good at what you do, it won’t be too long before your brand becomes nationally recognized especially if you go into franchising.
20 Steps to Starting a Wig Store Business
1. Understand the Industry
Wig shop business is part of the Wig & Hairpiece Production industry and players include establishments that specialize in manufacturing and retailing wigs, hairpieces and hair extensions for both aesthetic and medical purposes.
The Wig & Hairpiece Production 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. 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.
Interesting Statistics About the Industry
The Wig & Hairpiece Production 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 hairpiece production factories scattered all around the country. The industry is responsible for the employment of 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 Production industry shows that the industry has low and steady barriers to entry. For instance, the capital requirements to open a wig making business for people with cancer is moderate and primarily consist of leasing a commercial property and purchasing machines and 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. A wig store business is not a difficult business to start and it is not so capital intensive especially if you choose to start on a small scale within your neighborhood.
Getting the right brands that people want to buy and good stock keeping records are the secrets of running a wig store. Over and above, there are few barriers to entry into the wig store business. Usually, a wide variety of stocks are readily available.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who patronize wig stores is not restricted to females alone but also all those that are into costume making for films or shows. In essence, the demographic composition cum target market for wig store business is all encompassing; it is not restricted to any profession, age group, gender, race, tribe or group of people.
So, if you are looking towards defining the demographics for your wig store business, then you should make it far reaching.
3. Decide Which Niche to Concentrate On
It is important to state that there are no niche ideas when it comes to wig store business because wig store business is a niche idea in the retailing industry but the business owner may decide to go beyond retailing different types of wigs to fixing wigs for customers.
It also is important to note that some wig store business may decide to build a strong online presence as against settling for only brick and mortar store.
The Level of Competition in the Industry
Irrespective of the line of business you decide to invest in, you are still going to compete with others who are into same business and wig store business is not an exemption.
The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure you stock your store with a wide range of wigs and other related hairpiece products from different manufacturing companies and you know how to reach out to your target market.
It is important to also state that the competition in the wigs and hairpiece industry is not restricted to competitions amongst wig stores but also you will be competing against beauty and hair salons who are also into the retailing of wigs and other related hairpiece products.
4. Know Your Major Competitors in the Industry
Here are some of the most popular wig stores in the United States of America;
- Babe Hair Extensions
- Cinderella Hair Extensions
- Hotheads Hair Extensions
- Great Lengths Hair Extensions
- Donna Bella Hair Extensions
- Klix Hair Extensions
- Halo Hair Extensions
- Heat Free Hair Extensions
- Galaxy 5000
- Boho Exotic Studio
- Indique Hair Extensions
When it comes to starting a wig store you just have to get your costing cum economic analysis right if your intention of building the business is to generate profits, grow the business and perhaps expand the business and start selling franchise.
When conducting costing and economic analysis for your wig store, you just have to critically examine these key factors; place, pricing, and promotion. As a matter of fact, you would have to continue to review these key factors while running your wig store. As a wig store owner, you just have to have a proper grasp of your competitive landscape if indeed you want to maximize profits and be in the frontline of the industry.
The bottom line is that wig store business is not a green business, as a matter of fact, you will come across several wig stores when you go shopping. So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of what is required to rent a store, the amount needed to stock your store with a wide range of products from different manufacturing brands and that are in demand in your location and also the cost to successfully run the business.
5. Decide Whether to Buy a Franchise or Start from Scratch
There is no hard and fast rule when it comes to choosing how you intend starting a business. Basically, you should be guided by your overall business vision and mission statement.
If you are looking towards starting a wig store business, you can either start from the scratch or buy the franchise of an existing wig store brand.
Besides starting a wig store business from the scratch is less stressful when compared to other small – scale businesses which usually requires detailed groundwork. With a wig store, you should just secure a shop that is close to where your target market dwells and then leverage on every marketing tool within your disposal especially the internet when it comes to marketing your wigs and other related hair extension products.
Please note that most successful wig stores around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success.
6. Know the Possible Threats and Challenges You Will Face
If you decide to open your own wig store today, one of the major challenges you are likely going to face is the presence of well – established wig stores and of course beauty and hair salons that also retail wigs and hair extensions in your target market location. The only way to avoid this challenge is to create your own market.
Some other threats and challenges that you are likely going to face are mature markets, bad economy (economy downturn), and stiff competition. So also, unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumer spending and of course the emergence of new competitors within the same location where yours is located.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
You have the option of either choosing a general partnership, limited liability company, or a sole proprietorship for your wig store. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale wig store especially if you are just starting out with a moderate startup capital in a small neighborhood.
But if your intention is to grow the business and have chains of wig stores across the United States of America and other countries of the world via franchising and opening online store, then choosing sole proprietor is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
8. Choose a Catchy Business Name
When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Typically, it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
9. Discuss with an Agent to Know the Best Insurance Policies for You
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policies that are required by the industry you want to operate from. Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
Here are some of the basic insurance policies that you should consider purchasing if you want to start your own wig store in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Risk Insurance
- Workers compensation
- Building/Property insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
If you are considering starting your own wig store, usually you may not have any need to file for intellectual property protection/trademark. This is because the nature of the business makes it possible for you to successful run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
On the other hand, if you want to leverage on this business opportunities within the industry and also to protect your company’s logo and other documents or software that are unique to you or even operation concepts, then you can go ahead to file for intellectual property protection.
If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
11. Get the Necessary Professional Certification
When it comes to operating wig store, you do not need to have any formal training or special certification. All you need is informal training that will expose you to the in and out of managing wig store and also effectively running the business.
On the other hand, if you come across any form of certification that can aid you to effectively conduct your wig store business, then by all mean try and pursue such certification.
12. Get the Necessary Legal Documents You Need to Operate
It is a fact that you cannot successfully run any business in the United States without the proper documentation. If you do, it won’t be too long before the long hands of the law catch up with you. These are some of the basic legal documents that you are expected to have in place if you want to legally run your own business in the United States of America;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
13. Raise the Needed Startup Capital
Starting a wig store business can be cost effective especially if you choose to start on a small scale by running a wig store in a street corner. Securing a standard store facility and stocking your store with a wide range of products from different manufacturing brands are part of what will consume a large chunk of your startup capital, but if you choose to start the business on a large scale, you would need to source for fund to finance the business because it is expensive to start a standard large scale wig store business.
When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for startup capital for your wig store business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank
- Source for soft loans from your family members and your friends.
14. Choose a Suitable Location for your Business
Starting a wig store comes with its own challenges; it cannot be started in any location. As a matter of fact, you will need approval from local council and other regulating authorities in the city you intend opening your business.
It cannot be overemphasized that the location you chose to start your business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consist of female folks, beauty and hair salons with the require purchasing power, and lifestyle.
If you make the mistake of renting or leasing a facility for your wig store business in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business.
Before choosing a location for your wig store business, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.
These are some of the key factors that you should consider before choosing a location for your wig store business;
- The demography of the location especially as it relates to people who make use of wigs
- The demand for wigs and hair extensions in the location
- The purchasing power of the residents of the location
- Accessibility of the location
- The number of wig stores and beauty and hair salons in the location
- The local laws and regulations in the community
- Traffic, parking and security et al
15. Hire Employees for your Technical and Manpower Needs
On the average, there are no special technology or equipment needed to run this type of business except for Point of Sales (POS) Machines, shelves, and software applications. So also, you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
As regards leasing or outright purchase of a store facility, the choice is dependent on your financial standings, but the truth is that to be on the safe side, it is advisable to start off with a short-term rent/lease while test running the business in the location. If things work out as planned, then you go on a long-term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business.
When it comes to hiring employees for a standard wig store business, you should make plans to hire a competent Chief Executive Officer (you can occupy this role), Admin and Human Resources Manager, Merchandise Manager, Store Manager, Sales and Marketing Officer/Sales Girls and Sales Boys, Accounting Clerk, and Cleaners. On the average, you will need a minimum of 3 to 6 key staff members to run a small-scale but standard wig store business.
The Service Delivery Process of the Business
When it comes to buying and selling stuffs, there are no hard and fast rule about it. Basically, it is the duty of the merchandise manager to help the organization/store stock goods (a wide range of wigs and other related hair extension products from different manufacturing brands).
They source for good purchasing deals and they also ensure that they do not only purchase at the right prices that will guarantee them good profits, but they ensure that they purchase wigs and hair extensions that are in demand in their location.
Once the products are bought, they are properly arranged in the store for customers to see and purchase. On the other hand, they are also expected to deliver orders made by clients if such services are available in their store. Stocks are taken after the close of business every day and account are balanced. This will enable them place demand for more wigs.
A wig store may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility.
16. Write a Marketing Plan Packed With ideas & Strategies
The fact that the entry barrier for starting a small-scale wig store is not too high means that there is bound to be more players in the industry no matter the location you choose to start yours. You must come up with unique marketing strategies if you must carve out a market for yourself.
So, when you are drafting your marketing plans, make sure that you create a compelling company profile. Aside from your qualifications and experience, it is important to clearly state what you have been able to achieve in time past. This will help boost your chances in the market place.
Here are some of the platforms you can utilize to market your wig store;
- Introduce your wig store by sending introductory letters alongside your catalog to beauty and hair salons, women and ladies societies, households and key stake holders in and around the location where your wig store is located
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all your visitors; making your first impression count positively to those patronize wigs from your wig store for the first time
- Make use of attractive hand bills to create awareness and also to give direction to your wig store
- Advertise your services in community – based newspapers, local TV and radio stations
- List your business and products on yellow pages ads (local directories)
- Leverage on the internet to promote your wig store
- Engage in direct marketing and sales
- Encourage the use of word of mouth marketing (referrals)
- Leverage on the internet to promote your wig store
- Join local chambers of commerce and industries around you with the main aim of networking and marketing your wig store; you are likely going to get referrals from such networks.
- Engage the services of marketing executives and business developers to carry out direct marketing for you
17. Work Out a Reasonable Pricing for your Services & Products
One key factor that will help you sell your products wigs and hair extensions at rock bottom prices is to purchase your supplies directly from the manufacturers in pretty large quantities. The truth is the higher the quantities of items that you purchase directly from the manufacturers, the cheaper you tend to get them.
Another strategy that will help you retail your supplies at the right price is to ensure that you cut operational cost to the barest minimum, and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.
You can also try as much as possible to work with independent contractors and marketers; it will help you save cost for paying sales and marketing executives.
18. Develop an Iron-clad Competitive Strategies to Help You Win
The availability of a wide range of wigs and hair extensions from different manufacturing brands in your store, your business process and of course your pricing model are part of what you need to stay competitive in the industry.
Another possible competitive strategy for winning your competitors in this particular industry is to build a robust clientele base. Over and above, ensure that your organization is well positioned, key members of your team are highly qualified and your product can favorably compete with the some of the best in the industry.
19. Brainstorm Possible Ways to Retain Clients & Customers
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your products and service delivery, they can hardly source for alternative service providers.
If your services and customer service fluctuate, you are likely going to struggle to get your customers retaining your services. Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building a loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
20. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If you are in business and you are not conscious about boosting your brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend good money to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand and create a corporate identity for your wig store;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your business
- Install your billboards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- List your wig store business in local directories/yellow pages
- Advertise your wig store in your official website and employ strategies that will help you pull traffic to the site
- Position our Flexi Banners at strategic positions in the location where your wig store is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles are branded with your company logo.
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