How Much Money Do You Need to Start a Hair Extension Business?

How Much Money Do You Need to Start a Hair Extension Business?

You're interested in the hair industry, and you want to know how much money you need to start a hair extension business.How much money is needed to open a hair extension business?First, you have to know the fees, registrations, and ...

You’re interested in the hair industry, and you want to know how much money you need to start a hair extension business.

How much money is needed to open a hair extension business?

First, you have to know the fees, registrations, and licenses needed to make your business come to life.

As the owner, salesperson, and all-around manager of your business, you have to prepare legal documents, equipment, and supplies to get your business up and move.

The U.S. Small Business Administration surmised that a micro business would need around $3,000, and home-based ones take $2,000 – $5,000 to begin. It’s challenging to give every individual the exact cost because the fees and prices will depend on where you will base your business.

Can you make money with a hair extension business?

Before you invest your money and time in anything, you first must know: is it worth it? Will you be able to make money with a hair extension business?

Just like everything else, it’s not easy, but it’s possible. It’s not something anyone can accomplish in a blink of an eye. Depending on external influences, it may take shorter or longer than what you expect. But the answer is yes. You can make money with a hair extension business.

This article will provide the factors you’ll need to consider when planning your own hair extension business. In letting you know the related agencies you need to contact, you can determine the accurate cost you need.

Business Plan

Do you want sole proprietorship, Partnership, Limited liability company (LLC), or a type of corporation? This can cost from $40 – $ 1,000. Take into consideration your short and long term goals for your business and create the business plan that best aligns with what you want.

Legalities

  1. You have to check your city and state rules and regulations for establishing a hair extension business. You’ll need to know the fees that will depend on the type and size of the business you want to create.
  2. Check for permits or licenses required in your area for a person to provide hair extensions and services to clients. Some areas may not need any permissions or may require a specific certificate. It’s always better to be sure to avoid any complications in the future.
  3. Contact the department of trade or the one that registers the businesses in your area and ask for the requirements. All businesses required to register need to pay a fee for the business license, ranging from $75 to $100.
  4. Get in touch with your area’s equivalent to the US Internal Revenue Service (IRS), to know what documents you’ll need to submit, dues and taxes that you will have to pay. 

Once you know all the fees and documentation that you’ll need for starting a small business, you can best determine your hair extension business structure.

What will you offer as a hair extension business? 

In the hair extension business, you can choose to either provide the product or offer services and the product.

Sell hair extensions to clients

  • Choose if you will sell synthetic hair, human hair, or both.
  • Contact a reliable and affordable high-quality hair extension supplier.
  • Create packaging/repackage your stocks.
  • Area to store your inventory
  • Decide whether you want to sell online or in a store
  • Create a website

Attach, remove and sell hair extensions 

  • Choose if you will sell synthetic hair, human hair, or both.
  • Contact a reliable and affordable high-quality hair extension supplier.
  • Create packaging/repackage your stocks.
  • Create a website
  • Rent a space, open a store/boutique where you can perform hair extension services, and sell hair extension. 

You’ll need to determine if you want to work by yourself, or if you’ll be hiring an assistant or employees. Employees will need wages or salaries. You will need to talk to them to determine the rate. Since you’re just starting, if you decide you need employees, you can hire part-timers. 

If you go for the online store route, you’ll be part of the home-based businesses mentioned earlier that will only need $2,000 to start. For a brick and mortar store, you’ll be in the $5,000 range. 

How to market a hair extension business?

After you’ve set up your store, you now have to focus on marketing your product and services.

Post articles or content on your website 

Address your target market on your posts. Attract their attention to the image you want your business to have. Let people know what your products are and how they can use it. Tips and tricks are popular topics for the beauty industry, and you can showcase your items as well.

Create a social media presence

Upload content or posts regularly. Engage with followers, and try to answer as many comments as possible. By getting in touch with your target market, they can see your business as approachable. Positive reviews and comments will also encourage other potential clients to contact you and avail of your services/products.

Affiliate your product with similar items

Connect your hair extensions with hair care items and hair tools. By doing this, you can reach people who are already interested in hair products. You can send hair extensions to a famous company or store that will use it with their items. For example, a reputable curling iron brand can use your hair extension for a live demonstration or online tutorial. They will credit you, and name the product they used to create the look or technique. When your hair extension products get linked to an excellent product or brand, people will more likely associate it positively.

Join events, exhibits, and shows 

Events are the perfect place to introduce your hair extensions to famous and long-standing hairstylists, celebrities, brands, and figures in the hair industry. You can create connections with vital people that your hair extension business can partner up with afterward. Being connected to the right names and products will boost your hair extension’s image and reach more potential customers.

Most, if not all, of the necessary steps, will require money. From packaging your first item to settling down on a store location, you’ll need to factor in the costs. Even free promotions, when you’re lending hair extensions or only displaying them, aren’t free. You’ll first need to purchase them and add them to your inventory before you can use them. That’s why if you want to succeed in this business, you’ll have to prepare and strive as much as you can.