HOW TO START YOUR OWN HAIR BUSINESS
HOW TO START YOUR OWN HAIR BUSINESS
Step One: Write A Business Plan
Every business needs a business plan for suitable growth. It will help you to focus on what you want to achieve and keep on track. Your business plan also will help you to manage money using projections for sales, costs, your expenses, and cash. A Good business plan is a living document that you continuously return to and update as you learn about your customers, sales and marketing practices that work and don’t work, and what you project wrong for your budget forecast and adjust it accordingly.
Six Things You Should Include In Your Business Plan
– Executive Summary
This section is an overview of your business and your plans.
One to two sentences of what your business does: To become a reliable hair supplier in your area?
– Opportunities
This section answers these questions:
- What are you selling?
- Human Hair or Synthetic hair
- Which type of hair product do you want to sell? (Wig, bundles, closure/frontal, hair extension, …
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- What problem are you solving? Or, What needs are you fulfilling?
- Fashion purpose: every girl wants to be beautiful. It is a fact !!!
- Lose hair: Genetic types of hair loss include alopecia areata and female pattern hair loss. … Black women in particular are prone to a type of hair loss called traction alopecia, which is caused by heat, chemicals and tight styles that pull at the hair root, including some braids, dreadlocks, extensions and weaves.
- Who are your target market and competition? You will need to answer few questions as follows:
- What’s your target customer? Low-middle-high income customer? Age range?
- Where do you want to sell (in store or online)?
- Are there many competitors already?
- What is your outstanding point to compete in the market (can import from factories directly? Can you make a wig by yourself?)
– Execution
How are you taking this opportunity and turning it into a business? This section should cover your:
- Marketing and sales plan: how can customers know you? Any promotion needed? If you can do it by yourself then how about marketing’s agency?
- Location and facility investment: what do you need to open a store? How’s about license requirement?
– Operations
- How you are going to measure your successes: you have to record carefully your results, for example: all the expenses, good in-stock….
– Financial Plan
- Highlight key aspects of your financial plan. Create a chart that shows your planned sales, expenses, and profitability.
- Include your business model (“how to make money”)
- Include your funding requirements.
- Finance support? From family’s support? Loans?
Note: If you do not have a lot of funds you can start by running business as dropshipper for hair seller.
Step Two: Find A Hair Vendor
Finding your hair vendor is imperative to your hair business. You have to be sure the lines of communication is excellent.
Must Haves From Your Vendor:
- Are they Reseller/
- Excellent communication – You should be able to contact them by phone, email, and social media platforms. There’s nothing more unprofessional than being unable to get in touch with your hair vendor when a problem arises.
- Quality – How is the Human hair processed, collected? Blended? Fabrication? And Sanitization?
- How is the hair sourced?
- How was the hair pattern created?
- Textures and lengths available?
- Are frontals, 360 frontals, or closures available?
- After payment, how long does it take for the order to ship?
- Is there a minimum?
- Is there a discount for bulk orders?
- Are you a private label company?
- Do they have samples?
- What is the return policy?
- Can I have photo confirmation before shipment of the hair?
- Are the cuticles aligned?
- Is the length measured stretched or unstretched?
- Single or double drawn?
- Is the bundle from one donor?
- Is there restocking fees?
- Do you drop ship?
The questions are endless, however, drawing up a list of the most important questions for you and your business. ASE hair is glad to be your HAIR VENDOR, and grow your hair business.
How to avoid scammers in hair business you can refer to:
https://asehair.com/how-to-stay-away-from-scammers-in-hair-business/
If you want to buy hair from Top 4 Human Hair factory in Vietnam you can refer to: https://asehair.com/top-4-best-human-hair-factories-in-vietnam/
Step Three: How Much Are You Going To Charge?
Ask a customer to pay too much for hair extensions, and they will stop buying, charge too little and your profit margins are terrible. No matter what you are selling, the price you charge your customers will have a direct effect on your hair business. Before setting your price for your virgin hair, you must know the costs of running your hair business. If the pricing of your product does not cover the cost, your cash flow will cumulatively be negative, you will then have to exhaust your financial resources, and ultimately your hair business will fail.
Determining Price
Cost of Materials + Cost of Labor + Overhead = Total Cost
Total Cost+ Desired Profit (20% of sales) = Required Sale Price
Pricing strategy
- Bulk sale: If customers buy in bulk, will you offer them a discount? Combo set for sale?
- If you do not want to reduce the price, can you offer free delivery, free gift?
- Event sale?
Determining Margins
Margins or your gross margins are the difference between your total sales and the cost of those sales. For example: If you have sales equal to $1,000 and your cost of sales is $300, your margin equals $700.
Your gross profit margin can be seen as dollars or as a percentage. As a percentage, the gross profit margin is a percentage of net sales.
Total sales (Revenue) – Cost of Sales = Gross Profit Margin
If you want to get price reference for 100% Vietnam human hair product, you can contact us via:
+ Peter (Sale director): https://wa.me/+84823822889
+ Jenny (Sale manager): https://wa.me/+84325096965
+ Daisy (Sale manager): https://wa.me/+84339799867
Step Four: Register Your Business
Choosing a name for your business is a significant step. You want to be sure your business name is understandable and conveys what your hair business does. Your hair business name should also be catchy enough to remember. Taking this step formalizes your business and ensures no one else can use your name.
When you register your business name you’re not only complying with the laws that require this step, it also protects you. Once you register your business name, no one can use it.
Brand Your Company
Once you have completed the steps above, it’s time to begin BRANDING YOUR COMPANY. Logo, website address (URL), website, business card, hair tags, etc.
There are many website that can support you with free design such as https://www.freelogodesign.org/ , https://www.tailorbrands.com/, etc. For us we use Canva pro for design with a small annual fee.
Start Doing Business
Starting a hair business is exciting! Having everything in order before sharing your hair business with the world，ensures smooth operations once you get your first sale! Using the ultimate guide to starting an hair business will provide the correct steps to your journey as an entrepreneur and business owner.
Have any questions ask ASE hair now! We will support all your questions to help you to promote your hair business!
