hair extension selling business plan

Hair Extension Selling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Wigs and Hair Extensions Store

There are businesses that someone with little education and no serious business background and training can start. One of such businesses is to open a hair extension retail store . The major things you need to succeed in this business is a good location, easy access to wholesale supply of quality hair extensions and good customer service skills.

The truth is that if your store is located in an area with good human and vehicular traffic, and you have quality hair extensions, wigs and related products from different brands, you may not have to struggle to get people to visit your store and make purchase. Below is a sample hair extension retail store business plan template that can help you to successfully write your own.

A Sample Hair Extensions Retail Store Business Plan Template

1. industry overview.

Hair extension retail stores are part of the Wig and Hairpiece Stores industry and players includes stores that mainly specialize in selling wigs, hairpieces and hair extensions for both aesthetic and medical purposes. Please note that this industry does not include retailers that primarily provide wigs and hairpieces via electronic mediums.

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The Wig and Hairpiece Stores industry, just like most businesses in the retailing 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. Going forward, 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.

The Wig and Hairpiece Stores 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 hair extension retail outlets scattered all around the United States of America.

The industry is responsible for the employment 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 stores industry shows that the industry has low and steady barriers to entry. For instance, the capital requirements to open a store location are relatively low and primarily consist of leasing a commercial property and purchasing 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. However, high competition may deter potential new entrants.

It is important to note that the cost of purchasing initial inventory can vary considerably and is dependent upon hair extension retailers’ ability to work with manufacturers and suppliers. As a new market entrant in the industry, you have to establish relationships with suppliers and build a clientele base, which can act as a barrier to entry.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the hair extension retail stores industry contributes greatly.

This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S. In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing industry negatively which may result in the closure of some retail stores.

Over and above, the wig and hair extension retail store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or you can chose to start on a large scale with several outlets in key cities through the United States of America.

2. Executive Summary

Sharon & Anita Hair Extension Store®, Inc. is a registered hair extension retail store business that will be located in one of the busiest streets in Charleston – West Virginia.

We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of hair extension retail store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Charleston – West Virginia.

Sharon & Anita Hair Extension Store®, Inc. will retail synthetic hair wigs, human hair wigs, synthetic hairpieces, human hairpieces and toupees et al from different manufacturers from the United States and abroad. We are set to service a wide range of clientele in and around Charleston – West Virginia.

We are aware that there are several hair extension retail outlets all around Charleston – West Virginia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet has various payments of options.

Sharon & Anita Hair Extension Store®, Inc. will ensure that all our customers are given first class treatment whenever they visit our hair extension retail store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

Sharon & Anita Hair Extension Store®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Sharon & Anita Hair Extension Store®, Inc. is a family business that is owned by Sharon Williams and her immediate family members.

Sharon Williams has a B.Sc. in Business Administration, with over 5 years’ experience in the retailing industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Charleston – West Virginia, but there is a plan to open other outlets all around major cities in the United States.

3. Our Products and Services

Sharon & Anita Hair Extension Store®, Inc. is in the wigs and hair extension retail industry to service a wide range of clients and of course to make profits, which is why we will go all the way to make available a wide range of hair extensions from top manufacturing brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

• Retailing synthetic hair wigs
• Retailing human hair wigs
• Retailing synthetic hairpieces
• Retailing human hairpieces
• Retailing toupees

4. Our Mission & Vision Statement

Our vision is to become one of the leading brands in the wig and hair extension retail stores industry in West Virginia and to establish a one stop hair extension retail store in Charleston – West Virginia and in other key cities in the United States of America and Canada.

Our mission is to establish a world – class hair extension retail business that will make available a wide range of hair extension products from top hair extension manufacturing brands at affordable prices to residents of Charleston – West Virginia and other key cities in the United States of America where we intend opening of chains of hair extension retail stores and franchise.

Our Business Structure

Our intention of starting a hair extension retail store business is to build a standard and one stop hair extension retail store outlet in Charleston – West Virginia.

Although our hair extension retail store business might not be as big as multi – million dollars hair extension stores, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager
• Merchandise Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization.
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of wigs and hair extensions are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls hair extension distribution and supply inventory
• Supervises the workforce in the sales floor.

Merchandize Manager

• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure high quality hair extensions from different manufacturers are purchased and retailed in good price that will ensure profit
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the organization’s website
• Handles eCommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages the organization’s CCTV
• Handles any other technological and IT related duties

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• makes suggestions and encourage purchase of products
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases and gift wrap merchandise
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the store manager

6. SWOT Analysis

Our intention of starting just one outlet of our hair extension retail store in Charleston – West Virginia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in West Virginia and key cities in the United States and Canada.

We are aware that there are several hair extension retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Sharon & Anita Hair Extension Store®, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Sharon & Anita Hair Extension Store®, Inc.

Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of wigs and hair extension and our excellent customer service culture will definitely count as a strong strength for Sharon & Anita Hair Extension Store®, Inc. So also, our team of highly qualify staff members is also a plus for us.

A major weakness that may count against us is the fact that we are a new hair extension retail store outlet in Charleston – West Virginia and we don’t have the financial capacity to compete with multi – million dollars hair extension retail stores when it comes to retailing our products at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our hair extension retail store in one of the busiest streets in Charleston – West Virginia provides us with unlimited opportunities to sell our wigs and hair extension to a large number of individuals and corporate organizations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our hair extension outlets.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new hair extension retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Wigs and Hair Extension Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever – changing trends are major growth drivers for sales in this industry.

No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Wigs and Hair Extension Stores industry.

So also, the rising demand for trendy hair extension, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as hair extension stores keep prices low to attract more sales amid growing competition.

A close watch on the industry activities reveals that concentration has increased slightly over the past five years, as merger and acquisition activity has become more prominent. Additionally, companies that have enough funds to invest in multichannel operations have benefitted more than smaller operators with minimal resources.

As part of marketing strategies, hair extension retail stores engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

Lastly, in recent time, the hair extension retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical hair extension retail store is located.

8. Our Target Market

We are aware that loads of females make use of hair extensions and wigs. In view of that, we have positioned our hair extension retail store to service residents of Charleston – West Virginia and every other location where our hair extension stores will be located all over key cities in the United States of America.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of hair extensions to females in and around the location where our hair extension stores will be located.

Our Competitive Advantage

A close study of the wigs and hair extension retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading hair extension retail stores in Charleston – West Virginia and throughout the United States and Canada.

Sharon & Anita Hair Extension Store®, Inc. is launching a standard one stop hair extension retail store that will become the preferred choice of residents of Charleston – West Virginia and every other location where our outlets will be opened.

Our hair extension retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Charleston – West Virginia.

One thing is certain; we will ensure that we have a wide range of hair extension from leading manufacturers available in our store at all times. It will be difficult for customers to visit our hair extension store and not see the type of wig or hair extension products they are looking for.

One of our business goals is to make Sharon & Anita Hair Extension Store®, Inc. a one stop hair extension shop for all classes of customers. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Sharon & Anita Hair Extension Store®, Inc. is in business to retail a wide range of wigs and hair extension. We are in the wigs and hair extension retail stores industry to

10. Sales Forecast

One thing is certain when it comes to hair extension retail stores, if your store is stocked with various types of wigs and hair extensions and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the wigs and hair extension retail stores industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Charleston – West Virginia.

• First Fiscal Year: $250,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same wigs and hair extension brands as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Sharon & Anita Hair Extension Store®, Inc. we conducted a thorough market survey and feasibility studies to enable us penetrate the available market and become the preferred choice in the market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.

We hired experts who have good understanding of the wigs and hair extension retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – West Virginia.

In other to continue to be in business and grow, we must continue to sell the hair extension that are available in our store which is why we will go all out to empower our sales and marketing team to deliver. In summary, Sharon & Anita Hair Extension Store®, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our hair extension store in a grand style with a party for all
• Introduce our hair extension store by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Charleston – West Virginia
• Ensure that we have a wide range of wigs and hair extension from different brands at all times
• Make use of attractive hand bills to create awareness and also to give direction to our hair extension store
• Position our signage/flexi banners at strategic places around Charleston – West Virginia
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in roadshows within our neighborhood to create awareness for our hair extension store.
• List our business and products on yellow pages ads
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our hair extension store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our hair extension store.

Sharon & Anita Hair Extension Store®, Inc. has a long – term plan of opening outlets in various locations all around West Virginia and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sharon & Anita Hair Extension Store®, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms to promote our business
• Ensure that our we position our banners and billboards in strategic positions all around Charleston – West Virginia
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our hair extension store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hair extension stores, it is normal for consumers to go to places where they can get hair extensions at cheaper price which is why big player in the wigs and hair extension stores industry will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with big players in the industry, but we will ensure that the prices and quality of all the hair extension products that are available in our stores are competitive with what is obtainable amongst hair extension stores within our level.

• Payment Options

The payment policy adopted by Sharon & Anita Hair Extension Store®, Inc. is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America. Here are the payment options that Sharon & Anita Hair Extension Store®, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for products purchased without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a hair extension retail store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
• Marketing promotion expenses for the grand opening of Sharon & Anita Hair Extension Store®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• Cost for hiring Business Consultant – $2,500
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400 .
• Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600 .
• Cost for Shop remodeling (construction of racks and shelves) – $20,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of wigs and hair extensions from different brands) – $250,000
• The cost for counter area equipment – $9,500
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs – $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of launching a Website – $600
• The cost for our opening party – $7,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our hair extension retail store in Charleston – West Virginia.

Generating Startup Capital for Sharon & Anita Hair Extension Store®, Inc.

Sharon & Anita Hair Extension Store®, Inc. is a private registered business that is solely owned and financed by Sharon Williams and her immediate family members. They do not intend to welcome any external business partner which is why they decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Sharon & Anita Hair Extension Store®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality hair extension a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Sharon & Anita Hair Extension Store®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of a list of products that will be available in our store: Completed
• Establishing business relationship with suppliers of wigs and hair extensions: In Progress

Hair Extensions Business Plan Template

Written by Dave Lavinsky

Hair Extensions Business Plan

You’ve come to the right place to create your Hair Extensions business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hair Extensions businesses.

Below is a template to help you create each section of your Hair Extensions business plan.

Executive Summary

Business overview.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. Our mission is to make every customer feel empowered and beautiful by providing them with the perfect hair extensions and hair care products. We do this by offering every style and color imaginable so that every customer can find exactly what they want to feel and look their best. With our amazing customer service and enormous selection, we hope to be the most popular hair extensions store in the city in the next few years.

Hairapy Extensions is founded by Angelina Matthews, who has been a hairstylist for five years. Throughout her career, he has sold and inserted hair extensions for hundreds of customers and has found it to be the most enjoyable part of her job. As such, she has extensive knowledge of hair extensions and how to insert and care for them. Her experience and expertise will be the company’s most valuable asset.

Product Offering

Hairapy Extensions will showcase a wide variety of hair extensions throughout our store. Our hair extensions will come in all colors, from natural hair colors to fun dyed colors like pink or blue. We guarantee that every customer will find the perfect hair extensions that fit their style and budget. We also sell hair care supplies and accessories to ensure that our customers’ new hair extensions last as long as possible.

Customer Focus

Hairapy Extensions will serve the community residents of Los Angeles, California, and its surrounding areas. We will primarily target female and female-identifying people, as this group is traditionally the most likely to buy hair extensions and hair care products. We also expect most of our clientele to be in the age range of 20-40, as young women are much more likely to get hair extensions than women in other age ranges.

Management Team

Hairapy Extensions is led by Angelina Matthews, an experienced hairstylist and salon manager with over five years of experience. Throughout her career, she found inserting hair extensions to be the most enjoyable aspect of her job and wanted to build a company that solely focuses on hair extensions. After years of planning, she is finally ready to start her business. Her extensive knowledge of hair extensions and the industry will be the company’s most valuable asset.

Success Factors

Hairapy Extensions is primed for success by offering the following competitive advantages:

• Friendly and attentive staff who will go out of their way to find the perfect hair extensions for each customer.
• Comprehensive supply of hair extensions that includes every color and texture imaginable.
• Cost-effective pricing that rivals the competition without sacrificing service or quality.

Financial Highlights

Hairapy Extensions is currently seeking $280,000 to launch. The funding will be dedicated to the store design and build out, working capital, overhead, supplies, and marketing costs. The breakout of the funding is below:

• Store design/build: $150,000
• Initial inventory, supplies, and technology: $50,000
• Payroll, rent, and overhead costs (3 months): $30,000
• Working capital: $25,000
• Marketing expenses: $25,000

The following graph below outlines the pro forma financial projections for Hairapy Extensions.

Company Overview

Who is hairapy extensions.

Hairapy Extensions is a new hair extensions shop located in the heart of Los Angeles, California. We provide an enormous selection of hair extensions to choose from, with every style and color imaginable. Customers can get natural colors to match their natural hair, such as blond, brunette, or red. They can also get dyed hair extensions if they want to add some color to their hair, such as blue, purple, pink, or green. Customers can expect to find the perfect hair extensions that fit their style and budget when shopping with Hairapy Extensions.

  Our store will be located in downtown Los Angeles, nearby fashion stores, hair salons, and other hair care stores. We will also have an online shop for those who don’t live in Los Angeles or can’t make it to our location to make a purchase in person.

Hairapy Extensions’ History

Angelina Matthews incorporated Hairapy Extensions as an S-Corporation on August 1st, 2023. Angelina has identified a potential retail location and is in the process of negotiating a lease. The company is currently being run out of her home but will move to the retail space once the lease is finalized.

Since its incorporation, Hairapy Extensions has achieved the following milestones:

• Found a retail space and signed a Letter of Intent to purchase it
• Developed the company’s name, logo, and website
• Determined equipment and inventory requirements
• Begun recruiting key employees with previous experience in the beauty/hair care industries

Hairapy Extensions’ Services

Hairapy Extensions will sell a wide variety of hair extensions online and in our store. We will offer several styles and every color imaginable, including numerous shades of blond, brown, red, pink, purple, and blue. Whether a customer wants longer hair, a style change, or a little bit of color without dye, we can find the perfect extension to fit their needs and budget. We also sell hair care products that ensure the extensions last as long as possible.

Industry Analysis

Hair extensions have been a part of style and fashion for centuries. In the past, hair extensions exemplified power and position and created lasting fashion trends. They were used to thicken and lengthen hair as well as to maintain a youthful appearance. It is believed that many powerful figures used hair extensions, including Cleopatra and Queen Elizabeth I.

The current hair extension industry is a thriving industry that helps many people show off their unique style and feel more comfortable in their bodies. Many people purchase hair extensions when they want to try a certain hairstyle but can’t pull it off naturally. Hair extensions are also popular amongst people who want to color their hair without destroying it with dye and bleach. Finally, hair extensions help many people suffering from thinning hair due to age or illness.

According to Future Market Insights, the current hair extensions industry was valued at $2.38 billion last year and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from now until 2032. The industry is positively affected by the rise in disposable income as well as beauty trends created and spread by social media. These trends are expected to continue, and the hair extensions industry is expected to thrive for the foreseeable future.

Customer Analysis

Demographic profile of target market, customer segmentation.

Hairapy Extensions will primarily target the following customer profiles:

• Women/female-identifying people
• Young adults
• People with conditions that affect their hair

Competitive Analysis

Direct and indirect competitors.

Hairapy Extensions will face competition from other businesses with a similar company profile. A summary of the competitor companies is below.

Hair Heaven

Hair Heaven is a major online warehouse that sells wigs and hair extensions. They have every color and style imaginable, which makes them an incredibly popular hair extensions supplier nationwide. They are particularly popular with beauty supply stores as they can sell their products wholesale. Though Hair Heaven is a popular source of hair extensions, it is a completely online store. Customers who want to talk with a professional and purchase hair extensions in person will be more inclined to come to Hairapy.

Lanie’s Wig & Hair Supply

Lanie’s Wig & Hair Supply is a small, locally-owned supplier of all things hair care. This includes organic shampoos, hair extensions, wigs, and accessories. They offer many colors and styles of wigs and hair extensions to choose from, and many customers report being satisfied with their products. The store also has a few hair stylists on standby who can help them clean and style their hair extensions and wigs as needed. Though Lanie’s will continue to thrive, their selection is much smaller than ours. Our inventory will be far more enticing, and we will be able to find hair extensions for far more customers than Lanie’s can.

Sally’s Salon

Sally’s Salon is a popular and hip hair salon business located in downtown Los Angeles, California. People all over the city come here to get their hair cut and styled to keep up with current fashion and trends. In addition to providing hair styling services, Sally’s sells a large assortment of wigs, hair extensions, and hair care accessories. Customers can choose some hair extensions and have a stylist insert and style them all in the same appointment. Since Sally’s is such a popular salon, we expect them to be our biggest direct competitor.

Competitive Advantage

Hairapy Extensions will be able to offer the following competitive advantages over their competition:

• Management : Our management team has years of experience in the hair care industry, which allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
• Friendly Staff : Our staff understands that buying hair extensions can be a stressful and difficult process, especially for those who need them to hide their thin or damaged hair. Hairapy Extensions only hires the friendliest staff who can work with these customers in a compassionate manner.
• Inventory : Hairapy Extensions aims to own the largest and most diverse collection of hair extensions that can be found anywhere in Los Angeles, California.

Marketing Plan

Brand & value proposition.

Hairapy Extensions will offer a unique value proposition to its clientele:

• Friendly and helpful staff
• Affordable pricing on all products
• A large inventory of unique and stylish hair extensions that include every color and style imaginable

Promotions Strategy

The promotions strategy for Hairapy Extensions is as follows:

Influencer Marketing

Hairapy Extensions will partner with local beauty influencers to spread the word about the company. The company will offer discount codes to the influencers’ audiences to entice them to shop our products.

Angelina Matthews will invest in appealing billboards and marketing techniques for the company. The billboards will be located in highly trafficked areas of Los Angeles where the visibility is highest.

Social Media

Hairapy Extensions will have Instagram and Facebook business profiles where Angelina will post professional and appealing pictures that will draw in anyone looking for hair extensions. The posts will be able to show the beautifully designed store as well as satisfied customers with their new hair extensions. Angelina will also post upcoming specials and special offerings.

Website & SEO Marketing

The marketing assistant will design and manage a comprehensive and attractive website for Hairapy Extensions. The website will be easy to navigate and include pictures of our products, pricing, contact information, and location. The SEO will also be managed to ensure that anyone searching “hair extensions near me” or “hair extensions Los Angeles” will see Hairapy Extensions listed at the top of the Bing or Google search engine.

The pricing of Hairapy Extensions will be moderate and on par with competitors, so customers feel they receive value when buying our hair extensions.

Operations Plan

The following will be the operations plan of Hairapy Extensions. Operation Functions:

• Angelina Matthews will be the Owner and President of the company. She will oversee the general operations of the store as well as provide customer services and sales. Angelina will spend the next several months hiring the following staff:
• Several associates who will provide customer service, sell products, and help insert hair extensions for customers.
• An Accountant who will manage all client invoicing, billing, and payables.
• A Marketing Assistant who will run all the marketing and promotions campaigns.

Milestones:

Hairapy Extensions will have the following milestones completed in the next six months.

• 9/1/202X – Finalize lease agreement
• 9/15/202X – Begin build out and design
• 10/1/202X – Begin hiring essential staff
• 10/15/202X – Finish build out and design; final walk-through of store
• 11/1/202X – Begin marketing campaign
• 11/15/202X – Grand opening of Hairapy Extensions

Though Angelina has never run a business herself, she has been in the industry long enough to have an in-depth knowledge of the operations and marketing sides of the business. She will also hire other professionals who can help with the other aspects of the business she is unfamiliar with.

Financial Plan

Key revenue & costs.

The revenue drivers for Hairapy Extensions will be the sales of our hair extensions and other hair products.

The major costs for the company will include the costs of inventory, payroll, and overhead. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of daily customers: 50
• Average product price: $250
• Annual Lease: $50,000

Financial Projections

Income statement, balance sheet, cash flow statement, hair extensions business plan faqs, what is a hair extensions business plan.

A hair extensions business plan is a plan to start and/or grow your hair extensions business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Hair Extensions business plan using our Hair Extensions Business Plan Template here .

What are the Main Types of Hair Extensions Businesses? 

There are a number of different kinds of hair extensions businesses , some examples include: Hair extension services, Hair extension stores, and Online hair extension sales.

How Do You Get Funding for Your Hair Extensions Business Plan?

Hair Extensions businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hair Extensions Business?

Starting a hair extensions business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hair Extensions Business Plan - The first step in starting a business is to create a detailed hair extensions business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hair extensions business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks, so it’s important to do research and choose wisely so that your hair extensions business is in compliance with local laws.

3. Register Your Hair Extensions Business - Once you have chosen a legal structure, the next step is to register your hair extensions business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hair extensions business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hair Extensions Equipment & Supplies - In order to start your hair extensions business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hair extensions business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

• Sample Business Plans
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Hair Extension Business Plan

High demand, low startup costs, and a recurring revenue model make starting a hair extension business a lucrative and rewarding profession.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your hair extension business? You’re at the right place. Our hair extension business plan template will help you get started.

Free Business Plan Template

Download our free hair extension business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Hair Extension Business Plan?

Writing a hair extension business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers. This section may include the name of your hair extension business, its location, when it was founded, the type of hair extension business (E.g., retail hair extension, online hair extension, hair extension salon), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the hair extension products & services you offer your clients. The USPs and differentiators you offer are always a plus. For instance, you may include hair extensions, styling products, customization & color matching, etc as some of your products or services.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Retail hair extension store
• Online hair extension store
• Wholesale hair extension store
• Mobile hair extension service
• Hair extension subscription box
• Describe the legal structure of your hair extension company, whether it is a sole proprietorship, LLC, partnership, or others. Explain where your business is located and why you selected the place.
• Owners: List the names of your hair extension company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established hair extension service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc. Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers. For instance, fashion & style enthusiasts, salons, or beauty service providers would be an ideal target audience for a hair extension business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market. For example, the global hair extension market size was 2.38 billion USD in 2021, explain how much market segment your business will cover.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your hair extension services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends. For instance, emphasis on natural & blended has a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your hair extension company, such as product safety & compliance, labeling & packaging, business licensing & registration, health & sanitation, etc.

Here are a few tips for writing the market analysis section of your hair extension business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products of Your Bicycle Shop

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Hair extension
• Hair extension accessories
• Styling products
• Hair extension installation
• Hair extension maintenance & removal
• Customization & color matching
• Hair extension consultation
• Describe each service: Provide a detailed description of each service you provide, including the process involved. For example, mention whether your hair extensions are made of human hair, synthetic hair, or a combination of the two, and describe the benefits and properties of the materials you choose.
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service. This may include sourcing & selection, material quality, color matching, installation techniques, continuous improvement, etc.
• Additional Services: Mention if your hair extension company offers any additional services. You may include services like consultations, styling services, maintenance & upkeep, removal & reinstallment, etc.

In short, this section of your hair extension plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies. For example, quality & authenticity, customization & personalization, expertise & professionalism, & innovative techniques & technology, could be some of the great USPs for a professional hair extension company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, brochures, email marketing, content marketing, and print marketing
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include partnering with other businesses, influencer marketing, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts & offers, personalized service, etc.

Overall, this section of your hair extension business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hair extension business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or hairstylists needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your hair extension business. Your operational processes may include product sourcing & inventory management, order processing, application & installation, etc.
• Equipment & Machinery: Include the list of equipment and machinery required for hair extension, such as styling tools, application tools, cutting & shaping tools, etc. Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hair extension business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your hair extension company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities. It should include senior management, and other department managers (e.g. operations manager, customer services manager.) involved in the hair extension business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea. So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your hair extension services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your bicycle shop’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal. This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a hair extension business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your hair extension selling business plan should only include relevant and important information supporting your plan’s main content.

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This s ample hair extension business plan will provide an idea for writing a successful hair extension plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hair extension business plan pdf .

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Frequently Asked Questions

Why do you need a hair extension business plan.

A business plan is an essential tool for anyone looking to start or run a successful hair extension business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hair extension company.

Where to find business plan writers for your hair extension business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your hair extension business plan and outline your vision as you have in your mind.

What is the easiest way to write your hair extension business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any hair extension business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a hair extension business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my hair extension business plan?

The level of detail of the financial projections of your hair extension business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What's the importance of a marketing strategy in a hair extension business plan?

Marketing strategy is a key component of your hair extension business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hair Extensions Business Plan Template

Written by Dave Lavinsky

Hair Extension Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create professional plans to start and grow their hair extension companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hair extension business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Hair Extensions Business Plan?

A business plan provides a snapshot of your hair extensions company as it stands today, and lays out your future growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Hair Extensions Business

If you’re looking to start a hair extension business, or grow your existing company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your hair extension business in order to improve your chances of success. Your hair extension business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hair Extension Companies

With regards to funding, the main sources of funding for a hair extension company are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for hair extension companies.

Finish Your Business Plan Today!

How To Write a Business Plan For a Hair Extensions Company

If you want to start a hair extension business or expand your current one, you need a business plan. Below we detail how to write each essential component of your business plan:

Executive Summary

Your executive summary provides an introduction to your hair extension business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hair extension company you are operating and its status. For example, are you a startup, do you have a hair extension company that you would like to grow, or are you operating a chain of hair extension companies?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hair extensions industry. Discuss the type of hair extension company you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of hair extension company you are operating.

For example, you might operate one of the following types of hair extension companies:

• Hair extension services : this type of hair extension company provides placement of clip-in and glued-in extensions, or weaving.
• Hair extension stores: this type of business retails hair extensions, but does not provide placement services.
• Online hair extension sales: this type of business retails wigs and hairpieces, exclusively online.

In addition to explaining the type of hair extension company you will operate, the Company Analysis section of your hair extension business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of extensions sold, number of positive reviews, number of repeat customers, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hair extension industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hair extension industry educates you. It helps you understand the hair extension market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the hair extension industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your hair extension company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Gen Z, Millennials, Gen X, and Baby Boomers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hair extension company you operate. Clearly, teenagers would respond to different marketing promotions than Baby Boomers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hair extension companies primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hair extension businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes mass merchandisers and beauty supply stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other hair extension companies with which you compete. Most likely, your direct competitors will be other hair extension companies in your area.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of hair extension do they offer (human hair, synthetic, etc.)?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a broader range of hair extensions, like virgin hair, Remy hair, more colors, etc.?
• Will you provide specialty techniques that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hair extension company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hair extension company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to clip in and tape in hair extension, will you also offer sew in or weaving?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products and services you offer and their prices.

Place : Place refers to the location of your hair extension company. Document your location and mention how the location will impact your success. For example, is your hair extension company located in a busy retail district or shopping plaza, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your hair extension marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your hair extension business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hair extension company, including sourcing and ordering extensions, placing the extensions, marketing, and providing consultations for potential customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new location.  

Management Team

To demonstrate your hair extension company’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing beauty businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in placing hair extensions or successfully running beauty product retail businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you place 5 sets of extensions each week, or sell 100 pieces per month? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hair extension company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hair extension company:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store / salon location lease or a product list, or any celebrity endorsements you may have received.  

Putting together a well-crafted business plan for your hair extension company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hair extension industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful business.

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Other Helpful Business Plan Articles & Templates

How to Launch a Hair Extensions Business: A 9-Step Guide with a Checklist

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Are you dreaming of launching your own hair extensions business but feeling overwhelmed by where to start? Fear not! With our comprehensive guide on how to open a hair extensions business in just 9 steps , you'll find everything you need to turn your vision into reality. From understanding the market to creating a strong business plan, including a detailed checklist, we’ll walk you through the essentials. Ready to dive in? Discover more about crafting your successful business plan here: business plan .

How Do I Open A Hair Extensions Company With No Experience?

Starting a hair extensions business without prior experience might seem daunting, but it is entirely achievable with the right approach and resources. Many successful entrepreneurs in the hair extensions industry began their journeys with little to no background knowledge. Here’s how you can launch your own hair extension line even if you're starting from scratch.

First, conduct thorough market research to understand current trends and customer preferences. The global hair extensions market is projected to reach approximately $10 billion by 2025, indicating a robust demand. Identify key players, analyze their strategies, and pinpoint potential gaps that your business could fill.

Next, focus on defining your target audience . Understanding who your customers are is crucial. Are they fashion-forward individuals looking for the latest trends, or are they clients seeking high-quality products for special occasions? Tailoring your offerings to meet their needs will set you apart in the competitive landscape.

Sourcing high-quality hair extensions is vital. Look for suppliers who offer ethically made products and have a reputation for quality. Building relationships with reliable suppliers can enhance your credibility and ensure a consistent product supply. Consider attending trade shows or industry events to connect with potential suppliers.

Once you have a grasp on the market and your audience, develop a unique selling proposition (USP). What makes your hair extensions different? Whether it’s customizable options, sustainable sourcing, or exceptional customer service, your USP will be a key element of your branding for hair extensions .

Tips for Launching Without Experience

• Utilize online resources and courses to educate yourself about the hair extensions market and best practices.
• Network with industry professionals through social media platforms like LinkedIn or Facebook groups focused on beauty and hair.
• Consider starting small, perhaps by offering a limited range of products or a home-based service, to minimize initial costs.

Creating a solid business plan for hair extensions is essential. Outline your goals, target market, marketing strategies, and financial projections. A well-structured plan will serve as your roadmap and can be useful if you seek funding options for your hair extensions business .

Finally, don’t underestimate the power of a strong marketing campaign. Utilize social media platforms, influencer partnerships, and online advertising to reach your audience effectively. The right marketing strategy can significantly impact your brand's visibility and sales.

By following these steps, you can successfully start a hair extensions company even with no prior experience. The key is to remain adaptable, continuously learn, and stay attuned to the evolving trends within the hair extensions industry .

How Do I Start A Hair Extensions Company With No Money?

Starting a hair extensions company like Lush Locks Boutique with little to no capital may seem daunting, but it is achievable with the right strategies and resourcefulness. Here’s how you can launch your hair extensions brand without breaking the bank:

Leverage Freelance Skills

• Utilize platforms like Fiverr or Upwork to find affordable graphic designers for branding your products.
• Tap into social media tools for marketing instead of hiring expensive firms. Use platforms like Instagram and Facebook to build your audience organically.

To manage costs, focus on building your brand through social media. As the hair extensions market is projected to grow by 5.3% from 2023 to 2030, an effective digital presence can help you capture a significant audience.

Get Creative with Sourcing

• Research and network with suppliers willing to offer dropshipping options so you don't need to keep inventory upfront.
• Consider starting with customizable hair extension samples that can be ordered as needed to minimize initial costs.

Utilizing dropshipping can allow you to start your hair extensions business from home, significantly reducing overhead costs and risks.

Utilize Crowdfunding and Pre-Sales

• Platforms like Kickstarter or Indiegogo can help you raise the capital needed to fund your initial inventory.
• Offer pre-orders for your hair extensions, creating a sense of urgency and allowing you to fund the production before it even starts.

Crowdfunding has seen success in the hair extensions industry, with many projects exceeding their funding goals by over 150% . This not only helps in raising the necessary funds but also validates your business idea.

Develop Strong Relationships

• Negotiate with suppliers for the best prices, especially if you can demonstrate potential future sales.
• Join online communities related to the hair extensions industry to share resources and advice.

Building a network is crucial; the right connections can lead to discounts and insider knowledge about the latest hair extensions industry trends.

Finally, remember to create a comprehensive business plan for hair extensions that outlines your goals and strategies, which can also be pivotal when seeking investors or applying for grants. For more guidance on structuring your hair extension startup guide , you can refer to resources such as this article .

Example Of Checklist For Opening A Hair Extensions Company

Starting a hair extensions business can be an exciting venture, especially with the growing demand in the hair extensions market . Below is a comprehensive checklist to guide you through the process of launching your business, specifically tailored for your brand, Lush Locks Boutique .

Research The Hair Extensions Market And Trends

• Conduct thorough market research to understand current trends and consumer preferences.
• Analyze competitors to identify gaps in the market.
• Utilize industry reports indicating that the global hair extensions market is expected to reach $10.1 billion by 2024 .
• Define your target demographic – women aged 18-45 are primary consumers in this sector.
• Survey potential customers to gather insights on desired products and shopping preferences.

Source Ethically Made And High-Quality Hair Extensions

• Develop a list of potential suppliers, focusing on those who provide ethically sourced materials.
• Request samples to assess the quality of hair extensions before placing larger orders.
• Create a compelling story around your brand that emphasizes ethical sourcing and customization options.
• Highlight unique features or benefits of your products that set them apart from competitors.

Create A Brand Identity And Marketing Strategy

• Design a professional logo and branding materials that reflect your concept.
• Develop a comprehensive marketing strategy for hair extensions focused on digital platforms like social media and SEO.
• Choose between starting with an online store for hair extensions or a physical storefront based on budget and target audience.
• Utilize platforms like Shopify or Etsy for easy setup and management.

Build Relationships With Suppliers And Manufacturers

• Communicate regularly with your suppliers to ensure product quality and availability.
• Negotiate favorable terms that will enhance your hair extension business plan .

Implement A Customer Service And Consultation Process

• Establish a robust customer service strategy that includes consultations for personalized products.
• Train staff thoroughly to address customer inquiries effectively.

Launch Your Business With A Marketing Campaign

• Plan a targeted marketing campaign for hair extensions that leverages social media influencers and local events.
• Track engagement metrics to assess the effectiveness of various marketing channels.

Key Takeaway Tips

• Consider using tools like Google Trends to monitor industry trends and adjust your offerings accordingly.
• Investigate funding options for your hair extensions business to mitigate startup costs.

How Long Does It Take To Start A Hair Extensions Company?

Starting a hair extensions company, like Lush Locks Boutique , involves several steps that can vary in time commitment based on your preparation and resources. On average, the process can take anywhere from 3 to 6 months to launch effectively, assuming you follow a structured approach.

Here’s a breakdown of the time frames involved in key phases of launching your hair extensions business:

• Market Research: Approximately 2 to 4 weeks . Conducting thorough hair extensions market research ensures you understand industry trends and consumer needs.
• Business Plan Development: Around 2 to 3 weeks . Create a comprehensive business plan for hair extensions that outlines your goals and financial projections.
• Sourcing Suppliers: Typically 4 to 8 weeks . This includes finding reliable and ethical suppliers for your sourcing hair extensions needs.
• Branding and Marketing Strategy: About 3 to 5 weeks . Developing your brand identity and hair extensions marketing strategy is crucial for standing out in a competitive market.
• Store Setup: Depending on the type of store (online or physical), this can take 4 to 6 weeks . Setting up an online store for hair extensions is often quicker than preparing a physical location.
• Launch Preparations: Approximately 2 to 4 weeks . Finalizing your product selection and planning your marketing campaign for hair extensions.

In total, if you efficiently manage your timeline and ensure all aspects are covered, you could be ready to officially launch your hair extension business in as little as 3 months . However, a more realistic expectation for a comprehensive setup might extend this to 6 months .

Tips to Expedite Your Launch

• Start your hair extension business plan early to ensure you have a clear roadmap and to avoid delays.
• Network with suppliers and fellow entrepreneurs to speed up sourcing and advice-giving processes.

Investing your time wisely in each phase is essential in starting a hair extensions company. Remember, a well-planned launch can lead to a more successful business trajectory. For further insights, you might find this article helpful in understanding the elements of a solid business plan.

How Can I Find Investors For Starting A Hair Extensions Company?

Finding investors for your hair extensions business, such as Lush Locks Boutique , can be a critical step in successfully launching and sustaining your operations. With the hair extensions market projected to reach $3.3 billion by 2026, the potential for profitability is significant. However, securing funding requires strategic planning and effective outreach.

Here are some of the key methods you can leverage to attract investors for your hair extensions company:

• Networking: Attend industry events, trade shows, and local business meetups to connect with potential investors who are interested in the hair extensions market.
• Online Platforms: Utilize crowdfunding platforms such as Kickstarter or Indiegogo, which allow you to present your business idea and gather support from a wider audience.
• Angel Investors: Seek out angel investors who specialize in beauty and fashion. These individuals often look for innovative businesses to back and can provide not just funding, but also mentorship.
• Venture Capitalists: Approach venture capital firms that focus on consumer goods. Present a solid business plan for hair extensions that highlights market analysis, growth potential, and financial projections.
• Grants and Competitions: Research available grants for startups in the beauty industry or participate in business plan competitions that provide funding to winners.

Tips for Attracting Investors

• Prepare a comprehensive hair extension business plan that outlines your vision, mission, target audience, and a thorough hair extensions market research .
• Showcase the uniqueness of your brand by highlighting the ethical sourcing and customizability of your products in your pitch.
• Demonstrate traction by sharing any pre-sales data, social media engagement metrics, or positive customer testimonials.

Additionally, engaging potential investors through transparent communication about your funding needs, projected financial returns, and milestones can significantly enhance your chances of securing the necessary capital.

Utilize resources like business plan templates specific to the hair extensions industry to craft a pitch that stands out in the competitive market.

How Do I Create A Successful Business Plan For A Hair Extensions Company?

Creating a successful business plan for a hair extensions company like Lush Locks Boutique is essential for navigating the competitive landscape of the hair extensions industry. A well-structured business plan not only outlines your vision and goals but also serves as a roadmap for your journey. Here are the key components to include:

• Executive Summary: Provide a brief overview of your business concept, including your mission, target audience, and unique selling proposition (USP). This section sets the tone for your business plan and should capture the essence of your hair extension business.
• Market Analysis: Conduct thorough hair extensions market research to identify industry trends, customer demographics, and competitor analysis. Understanding the hair extensions industry trends and the needs of your target audience is crucial for positioning your brand effectively.
• Marketing Strategy: Develop a clear hair extensions marketing strategy that outlines how you’ll attract customers. This can include online advertising, social media campaigns, influencer partnerships, and community engagement initiatives.
• Operations Plan: Detail how your business will operate on a day-to-day basis. This includes sourcing high-quality hair extensions, establishing relationships with suppliers, and outlining your customer service policies.
• Financial Projections: Provide realistic financial forecasts, including startup costs, pricing strategies, and revenue projections. It's essential to assess funding options for your hair extensions business and consider how you will manage expenses and generate profit.
• Appendix: Include any additional information that supports your business plan, such as market studies, product samples, and legal documents.

Tips for Writing Your Business Plan

• Use data to support your claims, such as the fact that the hair extensions market is expected to reach $4.3 billion by 2027.
• Keep your business plan clear and concise; ideally, it should be no longer than 15-20 pages .
• Regularly update your plan as your business evolves and the market changes.

For more detailed insights and benchmarks, consider checking resources that provide specific metrics and examples for a business plan for hair extensions like this article .

As you craft your business plan for starting a hair extensions company, ensure that it reflects your passion, aligns with your brand values, and effectively communicates why customers should choose your products over competitors. A well-thought-out plan will increase your chances of securing funding and successfully launching your hair extensions brand .

Checklist For Opening A Hair Extensions Company

Starting a hair extensions business, like Lush Locks Boutique , can be an exciting venture. To guide you through the process, here is a comprehensive checklist that encompasses vital steps you'll need to take to successfully launch your hair extensions brand.

Understanding the hair extensions market is crucial. In 2021, the global hair extensions market was valued at over $3.5 billion and is projected to reach $6 billion by 2028, with a CAGR of approximately 7.5% . Keep an eye on the latest hair extensions industry trends to stay competitive.

Recognizing your target audience is essential for effective marketing. Determine if your focus will be on salons, individual consumers, or specific demographic groups (e.g., young women, professionals). Understand their needs, preferences, and purchasing behaviors to tailor your offerings accordingly.

Quality is key in the hair extensions business. Explore options for sourcing hair extensions through sustainable and ethical suppliers. Aim for suppliers that provide high-quality, customizable options to meet diverse customer needs. Finding suppliers for hair extensions should be a priority to ensure product reliability.

Your unique selling proposition (USP) helps differentiate your brand. It could be based on factors such as ethical sourcing, customization, or exceptional quality. Clearly communicating your USP will set your business apart in a competitive marketplace.

Branding for hair extensions involves crafting an appealing identity. This includes designing a logo, selecting brand colors, and developing a cohesive marketing strategy. A strong marketing campaign for hair extensions will engage your target audience and increase brand visibility.

Consider whether you want to start an online store for hair extensions, a physical storefront, or a combination of both. Ensure that your chosen platform is user-friendly and visually appealing to facilitate customer purchases. Starting a hair extensions business from home can be a cost-effective option.

Establishing strong relationships with suppliers and manufacturers is vital. These relationships can lead to better pricing, exclusive products, or priority service. This is also critical for inventory management and ensuring a steady supply of quality products.

Exceptional customer service is a cornerstone for success in the hair extensions business. Implementing a consultation process allows you to understand client needs better, enhancing their overall shopping experience.

Tips for Strong Customer Service

• Train staff to handle inquiries effectively.
• Offer personalized consultations to build trust.
• Implement an easy return policy to encourage purchases.

A well-planned marketing campaign is critical for a successful launch. Utilize social media platforms, influencer partnerships, and email marketing to generate buzz around your brand. Consider allocating 15-20% of your initial budget to your marketing campaign to maximize reach and engagement.

Starting a Business Steps

Starting a business requires careful planning and execution. Each step is critical for laying a solid foundation that can lead to long-term success. Below is a detailed checklist to guide you through the process of launching a hair extensions business.

Before you start a hair extensions company , it’s crucial to conduct thorough hair extensions market research . Understanding the current trends, customer preferences, and the competitive landscape is essential for positioning your brand effectively. The hair extension industry is rapidly evolving, with the global market projected to reach approximately $3.5 billion by 2025 , growing at a CAGR of around 8.5% between 2020 and 2025.

Key trends driving this growth include:

• Increased demand for ethically sourced hair extensions , as consumers become more aware of sustainability.
• Growing popularity of customizable options, allowing customers to choose colors, lengths, and styles that fit their unique preferences.
• Rising online sales, with nearly 50% of hair extension purchases occurring through e-commerce platforms.

In order to effectively capture your target audience, it’s essential to identify their specific needs. Understanding what drives their purchasing decisions—such as quality, price, and brand ethics—will help you tailor your products and marketing strategies accordingly.

When researching the hair extensions industry trends, consider leveraging various tools and resources:

Tips for Effective Market Research

• Utilize online surveys and focus groups to gather direct feedback from potential customers.
• Stay updated with industry reports and publications to track market shifts and emerging trends.
• Follow popular influencers and brands in the hair extension space on social media to gauge customer sentiment.

By conducting comprehensive research, you can develop a robust business plan for hair extensions that ensures your brand meets the market's evolving demands. For those planning to launch a hair extension line , a well-crafted business plan is essential for guiding your venture. Consider referring to templates that provide a structured approach to building your strategy, such as this [Hair Extensions Business Plan](/products/hair-extensions-business-plan).

Understanding the trends within the hair extensions industry will empower you to make informed decisions as you embark on your journey to open a hair extensions store or launch a hair extensions brand . Make your mark in the market by aligning your offerings with customer expectations and emerging trends.

Identify Your Target Audience And Their Needs

Understanding your target audience is a fundamental step in launching a successful hair extensions business, especially for a brand like Lush Locks Boutique. Identifying who your customers are and what they need not only helps you tailor your products but also shapes your marketing strategy and overall brand identity.

The hair extensions market has seen significant growth, with the global market expected to reach approximately $3.2 billion by 2025 , growing at a CAGR of around 9.1% from 2020 to 2025. This increase highlights a strong demand for quality hair extensions and the importance of understanding the audience that drives this demand.

To effectively identify your target audience, consider the following demographic factors:

In addition to demographics, exploring the needs and preferences of your audience will provide deeper insights:

• Quality: Many customers prioritize high-quality, ethically sourced hair extensions that last over time.
• Customization: The ability to choose textures, lengths, and colors is increasingly important for consumers looking to express their individual styles.
• Affordability: Different price points cater to various segments; offering budget-friendly options alongside premium products can widen your market reach.

To gather this information, consider conducting market research through surveys, focus groups, or analyzing social media trends . Engaging with potential customers directly will not only help in understanding their preferences but also build a sense of community around your brand.

Tips for Identifying Your Target Audience

• Utilize online tools like Google Trends and social media analytics to observe what customers are searching for.
• Create buyer personas to visualize different segments of your audience.
• Stay updated on hair extension industry trends to tailor your offerings accordingly.

By clearly identifying your target audience and understanding their needs, Lush Locks Boutique can position itself effectively in the competitive landscape of the hair extensions industry. This keen insight will guide you in developing a comprehensive business plan for hair extensions that resonates with your customers and sets your brand apart.

For further assistance in structuring your business plan, consider utilizing templates specifically designed for the hair extensions sector. Check out this comprehensive resource: Hair Extensions Business Plan Template .

When you decide to start a hair extensions company , the quality and sourcing of your products will play a crucial role in establishing your brand's reputation. At Lush Locks Boutique, we believe that to revolutionize the hair extension industry, it's essential to offer only ethically sourced and high-quality products. This not only appeals to the modern consumer but also aligns with sustainable business practices.

The hair extensions market is projected to grow to $10.5 billion by 2025, showcasing the increasing demand for quality products. As a new player in the hair extensions market, understanding the importance of high-quality sourcing can set you apart from competitors.

When sourcing hair extensions, consider the following factors:

• Ethical Sourcing: Ensure that your suppliers adhere to fair labor practices and sustainable methods. This transparency builds consumer trust and loyalty.
• Quality Assurance: Choose vendors that provide high-quality hair extensions, preferably 100% human hair, which can offer a natural look and feel.
• Variety and Customization: Look for suppliers that offer a range of textures, colors, and lengths. As customization is a growing trend, being able to cater to diverse customer needs will enhance your product offering.

Tips for Ethical Sourcing

• Conduct thorough background checks on potential suppliers to verify their ethics and quality standards.
• Request samples before committing to large orders to ensure that the products meet your quality expectations.
• Engage in direct communication with suppliers to understand their sourcing processes and establish a relationship built on trust.

Here is a table with key considerations when sourcing hair extensions:

In addition to sourcing high-quality hair extensions, it's important to stay updated on hair extensions industry trends to align your offerings with market demands. Incorporating insights from hair extensions market research can guide your decisions on what products to include in your inventory.

Remember, a well-crafted business plan for hair extensions should integrate these sourcing strategies, ensuring sustainability and quality are at the forefront of your operations. This strategic approach can significantly enhance your chances of success in the competitive hair extensions landscape.

Develop A Unique Selling Proposition For Your Products

In the competitive world of the hair extensions business , crafting a compelling Unique Selling Proposition (USP) is essential for standing out and capturing your target market’s attention. A USP clearly defines what makes your hair extension products distinct from competitors and why potential customers should choose your offerings. For a business like Lush Locks Boutique , which aims to transform the hair extension industry, your USP should focus on factors like quality, ethical sourcing, customization, and customer empowerment.

To develop an effective USP, consider the following key elements:

• Ethically Sourced Materials: Highlight your commitment to sourcing hair extensions responsibly. According to recent industry trends , consumers are increasingly conscious of ethical practices in the fashion and beauty sectors.
• Customization Options: Offer bespoke hair extensions tailored to individual needs. A survey found that 67% of customers prefer products that allow for personal expression.
• High Quality: Stress the use of premium materials. Quality assurance can lead to customer loyalty; about 70% of repeat customers cite quality as a primary reason for their continued patronage.
• Exceptional Customer Service: Provide in-depth consultations and support. This not only enhances the customer experience but also builds trust in your brand.

Tips for Crafting a Unique Selling Proposition

• Analyze competitors to identify gaps in their offerings that you can fill.
• Collect feedback from potential customers about what they would value in a hair extension product.
• Test your USP with a small audience before launching; make adjustments based on their responses.

Data from market research suggests that businesses with a well-defined USP can increase their market share by up to 18% . By focusing on what makes Lush Locks Boutique special, you position yourself not just as another hair extensions company , but as a leader in the field.

Consider creating a table to illustrate your USP attributes:

In crafting your business plan for hair extensions , be sure to include a section dedicated to your USP. This will not only guide your marketing efforts but also inform your overall strategy as you launch your hair extensions brand . By understanding and articulating what sets your offerings apart, you can create a focused marketing strategy that resonates with your target audience.

Now is the time to harness the potential of your unique positioning. As you move forward, remember that a strong USP can act as the backbone of your marketing campaign for hair extensions, giving you a clear competitive edge in the evolving hair extensions market .

Establishing a strong brand identity is crucial for the success of your hair extensions business. Your brand identity will differentiate Lush Locks Boutique from other competitors within the hair extensions market, making it essential to invest time and resources into this process. A well-defined brand strategy not only attracts your target audience but also fosters customer loyalty, helping you to cultivate long-lasting relationships.

To create an effective brand identity and marketing strategy for your hair extensions business, consider the following key components:

• Logo Design: Develop a unique and memorable logo that reflects your brand's ethos and appeals to your target demographic.
• Color Palette: Choose colors that evoke the right emotions and align with the luxury nature of your products.
• Brand Voice: Establish a consistent tone for your communications, whether fun and playful or sophisticated and elegant.
• Packaging: Create beautiful, eco-friendly packaging that not only protects your products but also enhances the unboxing experience for the customer.

Next, devise a comprehensive marketing strategy that encompasses various channels to effectively reach your target audience:

• Social Media Marketing: Use platforms like Instagram, TikTok, and Facebook to showcase your products and engage with potential customers through targeted content.
• Influencer Partnerships: Collaborate with beauty influencers to promote your products, leveraging their established trust among their followers.
• Email Marketing: Build an email list and send out regular newsletters featuring promotions, hair care tips, and new product launches.
• Search Engine Optimization (SEO): Optimize your online store for search engines to drive organic traffic and improve visibility.

Understanding the current hair extensions industry trends will also guide your branding and marketing efforts. Recent statistics indicate that the global hair extensions market is projected to reach $3.4 billion by 2027, growing at a CAGR of 8.5% from 2020. This growth is indicative of the increasing demand for high-quality products that meet diverse customer needs.

Tips for Successful Branding and Marketing

• Conduct thorough market research to understand your audience's preferences and tailor your branding accordingly.
• Regularly analyze your marketing campaigns' performance to optimize and improve future efforts.
• Engage customers through surveys and feedback to enhance your offerings and customer service.

Using this strategic approach will help you effectively position your hair extensions brand in a competitive market. It’s important to continuously refine your branding and marketing strategy based on customer feedback and industry trends, ensuring that Lush Locks Boutique remains a relevant and sought-after name in the hair extensions business. For a detailed guide on creating a solid business plan for hair extensions , check out this resource: Hair Extensions Business Plan .

Set Up An Online Store Or Physical Location

Establishing a sales channel is a pivotal step when you start a hair extensions company . With the current trends in the hair extensions market showing a shift towards online shopping, setting up an online store for hair extensions can be a more affordable and accessible option. According to recent statistics, over 70% of consumers prefer online shopping, making it essential to create a robust digital presence.

When considering how to launch a hair extension line, you have two primary options: building an online store or opening a physical location. Each has its own advantages and challenges.

Online Store Setup

• Choose an e-commerce platform: Popular platforms like Shopify, WooCommerce, or Etsy allow for easy setup and management.
• Design an attractive website: Your site should reflect your branding for hair extensions and provide a seamless shopping experience.
• Implement payment gateways: Enable various payment options such as credit cards and PayPal to cater to a broad audience.
• Focus on SEO: Optimize product descriptions with keywords related to the hair extensions industry trends to improve your online visibility.

Physical Location Considerations

• Conduct location analysis: Choose a location with high foot traffic, where your target audience for hair extensions frequently visits.
• Design an inviting store layout: Create a welcoming environment that encourages customers to browse and try out different hair extension options.
• Hire knowledgeable staff: Train employees who can provide exceptional customer service for hair extensions and assist customers in their choices.

Investing in both channels can maximize your outreach. A study found that businesses with both an online and physical presence see an increase in revenue by up to 30% . Thus, maintaining a balance between digital and physical sales strategies may be beneficial.

Cost Considerations

Setting up an online store for hair extensions can range from $500 to $5,000 depending on design and functionalities, while a physical store could require an initial investment of up to $50,000 for rent, inventory, and decor. Here is a quick breakdown:

Ultimately, the decision between an online store or a physical location depends on your business model and goals. If you’re looking for a lower barrier to entry while learning how to open a hair extensions business with no experience, starting online is the way to go.

Tips for Online Store Success

• Utilize social media channels to market your hair extension products.
• Engage with customers through live chat features to enhance customer service for hair extensions.
• Analyze website traffic to improve your marketing strategy based on user behavior.

For those considering a comprehensive plan, a business plan for hair extensions will guide you through these processes, ensuring a structured approach to both online and physical setup. Remember, the right environment—whether virtual or physical—can significantly impact your brand's success in the competitive hair extensions market.

When you decide to start a hair extensions company , one of the most critical steps is to build strong relationships with suppliers and manufacturers. These connections can significantly impact your business success by ensuring you have access to top-quality materials, timely deliveries, and favorable pricing. The hair extensions market is highly competitive, with a projected growth rate of 8.1% CAGR from 2021 to 2028 . Thus, establishing trustworthy partnerships is essential for staying ahead.

Here are some actionable steps on how to effectively build these vital relationships:

• Attend industry trade shows and networking events to meet potential suppliers.
• Negotiate terms and pricing that can allow for healthy profit margins.
• Ask for samples to assess the quality of hair extensions before making any purchase commitments.
• Utilize an online platform to discover and connect with manufacturers who specialize in hair extensions.
• Keep communication lines open to discuss any issues that may arise, fostering transparency.

When finding suppliers for hair extensions, knowing industry benchmarks can aid in making informed decisions. For example:

Finding reliable suppliers and manufacturers also involves understanding ethical sourcing. Your target audience may increasingly prefer ethically sourced products. Conducting thorough hair extensions market research will help you identify brands that align with your ethical standards and your customer’s desires.

Tips for Building Supplier Relationships

• Regularly review supplier performance to ensure they meet your quality and delivery standards.
• Consider forming long-term partnerships to negotiate better pricing and improve reliability.
• Share your vision for your hair extension line to align goals and expectations.

Implementing a strong communication strategy can help maintain healthy relationships. Discuss your business goals with suppliers openly and keep them in the loop about your plans for launching your hair extensions brand . This not only fosters goodwill but may also encourage them to prioritize your orders, providing you with a competitive edge.

As you prepare your business plan for hair extensions , remember that building these relationships should be a central focus. Having dependable suppliers is not just about cost; it's also about quality, sustainability, and the ability to scale your business efficiently. For those looking for structured guidance, consider checking out resources like this hair extensions business plan .

In the competitive hair extensions market , providing exceptional customer service and consultation is crucial for your business's growth and reputation. As you start a hair extensions company , integrating a robust customer service strategy will enhance customer satisfaction, foster loyalty, and encourage repeat business.

At Lush Locks Boutique, we believe that the customer experience begins long before a purchase is made. By offering personalized consultations, we can better understand the unique needs of each client, ensuring they receive the most suitable products for their desired look. Here are key elements to consider when implementing a customer service and consultation process:

• Offer Free Consultations: Providing initial consultations allows potential customers to discuss their needs, preferences, and concerns without any financial commitment. This builds trust and positions your hair extension business as customer-centric.
• Training Staff: Ensure that your staff is well-trained in product knowledge, application techniques, and customer engagement skills. This will empower them to provide informed advice and build rapport with clients.
• Utilize Technology: Consider using online platforms for virtual consultations. This flexibility can attract a broader audience, especially for those who prefer the convenience of shopping from home.
• Feedback Mechanism: Implement a system to gather customer feedback after purchases. Analyzing this feedback can help you continually improve your services and product offerings.

Tips for Successful Customer Service

• Be responsive: Aim to respond to customer inquiries within 24 hours to demonstrate that you value their time and business.
• Show empathy: Make an effort to understand customer concerns and demonstrate a willingness to help solve their problems.

In addition to consultations, creating a comprehensive customer service plan will help streamline operations and enhance customer interactions. Here’s a proposed structure for your customer service strategy:

As you develop your hair extensions business plan , consider allocating resources to customer service. Research indicates that 92% of consumers will hesitate to make a purchase if they cannot get quick answers to their questions. Therefore, a strong customer service foundation is imperative for success in the hair extensions industry .

By focusing on a personalized consultation process and robust customer service strategies, you will not only differentiate your offer in the market but also drive customer engagement and loyalty. For those looking to delve deeper into creating a successful framework for your business, explore our comprehensive business plan for hair extensions .

Launching your hair extensions business, Lush Locks Boutique , requires a well-thought-out marketing campaign that effectively communicates your brand’s unique value proposition. Consider that the hair extensions industry is projected to reach $10.25 billion by 2025, with a steady annual growth rate of 5.6%. This increasing demand means that your marketing strategy should not only stand out but also resonate with your target audience's needs and preferences.

To successfully launch your hair extensions brand, here are essential steps to create a compelling marketing campaign:

• Define Your Brand Identity: Establish a strong brand that reflects your values, such as ethical sourcing and customization. Your brand should tell a story that connects with your audience.
• Utilize Social Media Platforms: Platforms like Instagram and TikTok are crucial for visually-driven businesses. Create engaging content showcasing your products, tutorials, and customer testimonials to build an online community.
• Collaborate with Influencers: Partnering with beauty influencers can increase your brand visibility and credibility. Influencers can help you reach a wider audience through authentic endorsements.
• Implement SEO Strategies: Optimize your online store for search engines to improve visibility. Use keywords such as “how to start a hair business” and “sourcing hair extensions” to attract organic traffic.
• Offer Promotions and Discounts: Launch with enticing offers such as introductory discounts or bundled deals to encourage first-time customers to try your hair extensions.

Tips for Your Marketing Campaign

• Use high-quality images and videos to showcase your hair extensions. Visual appeal is vital in the beauty industry.
• Leverage customer reviews and feedback in your marketing strategies. Positive testimonials can significantly impact purchase decisions.
• Consider paid advertising on social media platforms to target specific demographics based on interests and behaviors related to hair extensions.

Tracking your marketing campaign’s success is equally important. Use tools like Google Analytics to measure website traffic and conversion rates. A well-executed marketing strategy can lead to a 20-30% increase in sales within the first few months. Additionally, maintaining a customer relationship management (CRM) system can help you understand customer preferences and improve service quality.

Remember, as you embark on this exciting journey of starting a hair extensions business, a comprehensive marketing campaign is vital to gaining traction and establishing a loyal customer base. Focus on your brand's unique selling points, and ensure that your message resonates with your audience's desires for quality, ethics, and style. For further assistance, consider using a detailed business plan for hair extensions to guide your objectives.

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Hair Extensions Business Plan Template

Written by Dave Lavinsky

If you’re looking to create a hair extensions business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful hair extensions businesses. Below is an example of a business plan for a hair extensions business.

Hair Extensions Business Plan Example

Below is our hair extensions business plan template and sample plan created using our business plan generator :

I. Executive Summary

Company overview.

Located in the bustling city of Troy, Luxurious Locks Extensions is at the forefront of the hair extensions industry, providing high-quality, luxurious hair solutions to a diverse clientele. Our mission is to enhance the beauty and confidence of our customers through exceptional service and unparalleled product quality. By focusing on premium hair extensions and related services, we aim to establish ourselves as the go-to destination for individuals seeking to elevate their look. Our team of highly skilled professionals is dedicated to delivering personalized experiences that reflect the unique needs and preferences of each customer, making us a standout in the competitive beauty landscape of Troy.

Success Factors

Our success can be attributed to a combination of key factors and accomplishments. Foremost among these is our commitment to quality and customer satisfaction, which has enabled us to build a loyal customer base. We’ve also differentiated ourselves through our exclusive focus on top-tier hair extensions, allowing us to specialize and excel in this area. Our strategic location in Troy positions us advantageously to serve a wide range of customers seeking luxury hair solutions. These factors, coupled with our team’s expertise and our innovative approach to hair care, position Luxurious Locks Extensions for continued growth and success in the beauty industry.

Industry Analysis

The hair extensions industry is experiencing robust growth, driven by increasing consumer demand for beauty and personal care products that offer a blend of luxury and personalization. Trends indicate a rising interest in high-quality, durable hair solutions that promise a natural look and feel. Innovations in product development and application techniques are further fueling the industry’s expansion, creating opportunities for businesses that specialize in premium hair extensions. The market’s dynamics underscore the importance of quality, innovation, and customer insight in capturing and retaining consumer interest. As such, companies that are able to adapt to evolving trends and consumer preferences while maintaining a commitment to excellence are well-positioned to thrive.

Customer Analysis

Our target customers are individuals who value luxury and quality in their beauty choices. They range from professionals seeking to enhance their appearance for confidence and career advancement, to fashion-forward individuals who view hair extensions as an essential part of their style repertoire. Our clients prioritize product quality, durability, and a natural look in their hair solutions. They are willing to invest in premium services that offer personalized experiences and outcomes. Understanding the diverse needs and preferences of our clientele is central to our approach, enabling us to tailor our offerings to meet and exceed their expectations.

Competitive Analysis

• Bellagio Hair Studio: A high-end salon offering a range of luxury hair services, known for its skilled team and premium pricing.
• The Extension of Beauty: Focuses on a broad range of hair extension types at competitive prices, appealing to customers looking for affordability without sacrificing quality.
• r.collective salon: Stands out for its sustainable practices and eco-friendly approach, targeting environmentally conscious customers with mid-range prices.

Luxurious Locks Extensions distinguishes itself through our superior product quality, focus on luxury hair extensions, and personalized customer service. Our competitive advantage lies in our ability to offer an exclusive, tailored experience that meets the high expectations of our discerning clientele, setting us apart from competitors in the Troy area.

Marketing Plan

Our product and service offerings center around high-quality, luxurious hair extensions, including a variety of types and application methods to suit different preferences and needs. Our pricing strategy reflects the premium nature of our products and services, targeting customers who value quality and exclusivity. To promote our offerings, we have developed a comprehensive promotions plan that leverages social media, influencer partnerships, and targeted advertising campaigns. These efforts are designed to build brand awareness, showcase our expertise, and highlight customer transformations, thereby attracting a wider audience and fostering customer loyalty.

Operations Plan

Key operational processes at Luxurious Locks Extensions include meticulous sourcing of high-quality hair, stringent quality control measures, and continuous training for our staff to ensure excellence in service delivery. We have set milestones that include expanding our service range, launching an online booking system, and opening additional locations to increase our market presence. Achieving these milestones is instrumental to our strategy for growth and will enable us to enhance operational efficiency and customer satisfaction.

Management Team

Our management team comprises experienced professionals with diverse backgrounds in the beauty industry, business management, and customer service. Their expertise is pivotal in guiding Luxurious Locks Extensions toward achieving our business objectives. Each member brings a unique set of skills and insights that contribute to our strategic planning, operational excellence, and the overall success of our venture. Their leadership is integral to fostering a culture of innovation, quality, and customer-centric service.

Financial Plan

To reach our growth goals, Luxurious Locks Extensions requires funding to expand our product line, enhance our salon’s interior, and invest in marketing initiatives. These investments will enable us to attract a broader customer base, increase our market share, and solidify our position as leaders in the luxury hair extensions market. Our financial plan is focused on ensuring sustainable growth and profitability, leveraging our unique value proposition to secure the necessary resources for expansion.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

Luxurious Locks Extensions is a premier Hair Extensions business located in the heart of Troy, MI. As a local entity, we pride ourselves on being the first to offer high-quality hair extensions in the area, filling a much-needed gap in the local beauty market. Our commitment to excellence and beauty enhancement sets us apart, ensuring that our clients always leave feeling more beautiful and confident.

At Luxurious Locks Extensions, we understand that everyone’s hair is unique, which is why we offer a wide range of products and services to meet the diverse needs of our customers. Our offerings include Clip-In Hair Extensions, Tape-In Hair Extensions, Sew-In Hair Extensions, Keratin Bond Hair Extensions, and Micro-Link Hair Extensions. Each type of extension has its own set of benefits, and our skilled team is here to help clients choose the best option for their hair type, lifestyle, and beauty goals.

Located in Troy, MI, Luxurious Locks Extensions is strategically positioned to serve customers within the area, providing them with unparalleled access to top-tier hair extension services. Our presence in Troy not only makes us accessible but also underscores our commitment to enhancing the beauty of our local community.

Our unique qualifications for success stem from a combination of factors. The founder of Luxurious Locks Extensions brings a wealth of experience from running a previously successful hair extensions business. This background, coupled with our superior product offerings and extensive variety, positions us favorably against the competition. We are not just in the business of selling hair extensions; we are in the business of boosting confidence and promoting individual beauty.

Since our inception on January 1, 2022, as a Limited Liability Company, we have made significant strides. Our accomplishments include the creation of a distinctive logo that embodies our brand’s ethos, the development of our company name that resonates with our mission and values, and securing a prime location that serves as the perfect backdrop for our operations. These milestones not only mark the beginning of our journey but also lay a solid foundation for the future of Luxurious Locks Extensions.

III. Industry Analysis

The Hair Extensions industry in the United States is currently estimated to be worth over $3 billion. This market size has been steadily growing over the past few years, with a projected annual growth rate of 5% expected over the next five years. This growth is driven by factors such as increasing disposable income, changing fashion trends, and the rising popularity of social media influencers promoting hair extensions.

One of the key trends in the Hair Extensions industry is the growing demand for high-quality, natural-looking extensions that blend seamlessly with the wearer’s natural hair. This trend bodes well for Luxurious Locks Extensions, as the company prides itself on offering premium quality extensions made from 100% human hair. Additionally, the increasing acceptance and normalization of hair extensions in mainstream culture have created a lucrative opportunity for businesses like Luxurious Locks Extensions to thrive in the market.

Another trend that is shaping the Hair Extensions industry is the shift towards sustainable and eco-friendly products. Consumers are becoming more conscious of the environmental impact of their purchases and are seeking out brands that prioritize sustainability. Luxurious Locks Extensions can capitalize on this trend by promoting their ethically sourced and eco-friendly hair extensions, attracting environmentally conscious customers and setting themselves apart from competitors in the market.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

Luxurious Locks Extensions will target a diverse range of customers, with a primary focus on local residents seeking high-quality hair extensions. Our clientele will include individuals looking for a way to enhance their natural hair for personal satisfaction or for special occasions. We understand the unique needs and preferences of our local community and will tailor our services to meet these expectations.

In addition to local residents, we will also cater to professionals in the beauty and entertainment industries. These customers often require premium hair solutions that offer both durability and a natural look for their on-screen appearances and photo shoots. Luxurious Locks Extensions is committed to providing top-tier products and services that will meet the rigorous demands of these professionals.

Furthermore, we will target individuals looking for a transformation or those dealing with hair loss due to medical conditions. Our range of high-quality extensions will offer solutions for those seeking to regain confidence in their appearance. Luxurious Locks Extensions will provide personalized consultations to ensure that each customer finds the perfect match for their needs, further establishing our brand as a trusted name in the hair extension market.

Customer Needs

Luxurious Locks Extensions caters to the desires of customers looking for high-quality hair extensions that not only enhance their aesthetic appeal but also boost their confidence. Residents in the area can now enjoy access to premium hair enhancements that seamlessly blend with their natural hair, ensuring a natural and appealing look. This meets the demand for superior quality products in the beauty and personal care sector, which customers expect to be both durable and visually pleasing.

Moreover, Luxurious Locks Extensions understands the importance of variety and personalization in today’s beauty market. Customers can choose from a wide range of textures, lengths, and colors to find the perfect match for their individual style and hair type. This flexibility allows for a personalized approach to beauty, empowering customers to express their unique identity and style preferences.

In addition to providing high-quality and diverse product options, Luxurious Locks Extensions places a strong emphasis on customer service. Clients can expect knowledgeable and friendly staff who are eager to assist with product selection, provide care tips, and answer any queries. This level of service ensures a satisfying shopping experience, fostering loyalty and encouraging repeat business. Luxurious Locks Extensions aims to fulfill the need for not only top-tier hair extensions but also a customer-centric shopping environment.

V. Competitive Analysis

Direct competitors.

Luxurious Locks Extensions’s competitors include the following companies:

Bellagio Hair Studio: This salon offers a wide range of hair services, including hair extensions, coloring, and styling. Their price points vary depending on the service, with hair extensions services being among their premium offerings. Bellagio Hair Studio generates significant revenue, underlining its position as a key player in the local hair services market. It is located in a prime area that attracts a high-end clientele, focusing on customers who seek luxury hair treatment services. The salon serves the greater Troy area and its surroundings, catering to a diverse customer base that values quality and professionalism. Key strengths include a highly skilled team of stylists and a luxurious salon environment. A potential weakness could be its premium pricing, which might not appeal to budget-conscious customers. The

Extension of Beauty: Specializing in hair extensions, The Extension of Beauty offers a variety of extension types, including clip-ins, tape-ins, and sew-ins, catering to a broad range of customer preferences. Their pricing is competitive, designed to attract a wide customer base. While specific revenue figures are not publicly available, their extensive service range suggests they are a strong competitor in the market. The Extension of Beauty operates in multiple locations throughout the Troy region, making it accessible to a wide geography of customers. Their customer segments include individuals looking for temporary to permanent hair solutions, emphasizing affordability without compromising on quality. Strengths of The Extension of Beauty include a diverse range of product offerings and accessibility. However, their focus on competitive pricing might impact their perceived value among customers seeking premium service.

r.collective salon: Known for its sustainable and eco-friendly approach, r.collective salon offers hair extensions along with a variety of other hair care services. Their prices are mid-range, appealing to environmentally conscious customers willing to pay a bit more for sustainable practices. The salon has carved out a niche in the local market, with revenues that reflect a strong commitment to their unique selling proposition. Located centrally in Troy, r.collective salon attracts customers from across the city and nearby areas, especially those who prioritize eco-friendliness in their beauty choices. The salon’s key strengths include its commitment to sustainability and a strong brand identity that resonates with a specific segment of the market. A potential weakness is the niche focus, which might limit its appeal to a broader audience.

Competitive Advantages

At Luxurious Locks Extensions, we pride ourselves on offering superior hair extensions compared to our competitors. Our commitment to quality ensures that every customer receives extensions that not only meet but exceed their expectations. We understand the importance of having lush, natural-looking hair, which is why we meticulously select our products to ensure they are of the highest standard. This dedication to excellence means our clients can enjoy long-lasting, beautiful extensions that blend seamlessly with their natural hair, providing an unrivaled confidence boost.

In addition to our focus on quality, we also boast a more extensive variety of hair extensions than our competitors. Our range includes a wide array of colors, lengths, and textures, catering to the diverse needs and preferences of our clientele. This variety ensures that every customer can find the perfect match for their natural hair, allowing for a customizable and satisfying experience. Furthermore, our knowledgeable staff are always on hand to provide expert advice and support, helping clients navigate our vast selection to find the ideal solution for their individual styles and needs. This personalized approach sets us apart and affirms our position as a leader in the hair extension industry.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

Luxurious Locks Extensions offers a variety of high-quality hair extension services to cater to different preferences and hair types. Customers can choose from an array of options including Clip-In Hair Extensions, Tape-In Hair Extensions, Sew-In Hair Extensions, Keratin Bond Hair Extensions, and Micro-Link Hair Extensions. With a focus on providing versatile and durable solutions, Luxurious Locks Extensions ensures that all clients receive personalized advice and recommendations to achieve their desired look.

Clip-In Hair Extensions are a popular choice for those seeking a temporary and non-committal way to add length and volume to their hair. These extensions are easy to apply and remove, making them perfect for special occasions or everyday wear. The average selling price for a set of Clip-In Hair Extensions at Luxurious Locks Extensions is around $150, depending on the length and volume required by the client.

Tape-In Hair Extensions provide a more semi-permanent solution, ideal for those looking to extend the length and volume of their hair for a couple of months. Applied by attaching thin strips of tape to small sections of natural hair, these extensions blend seamlessly. Customers can expect the average price for Tape-In Hair Extensions to be approximately $200, which varies based on the amount of hair used and the desired outcome.

For a more durable and long-lasting method, Sew-In Hair Extensions are an excellent option. This technique involves braiding the natural hair into cornrows and then sewing the extension wefts onto the braids. This method is particularly popular among individuals with thicker hair. The price for Sew-In Hair Extensions typically starts at $250, reflecting the intricate and time-consuming nature of the application process.

Keratin Bond Hair Extensions use a keratin adhesive to bond small sections of hair extensions to natural hair, offering a natural and discreet appearance. These extensions are known for their durability and can last up to six months with proper care. The cost for Keratin Bond Hair Extensions at Luxurious Locks Extensions averages around $300, depending on the length and volume of the extensions.

Micro-Link Hair Extensions, also known as micro-bead or micro-loop extensions, involve attaching small wefts of hair to small sections of the natural hair using tiny, silicone-lined beads. This method does not use heat or glue, making it a preferred option for those concerned about potential damage to their natural hair. Clients can expect to pay an average price of $350 for Micro-Link Hair Extensions, which includes the cost of the hair and the application process.

At Luxurious Locks Extensions, the focus is on providing clients with high-quality extensions and expert application to ensure satisfaction and a natural, beautiful look. Prices may vary based on the specific needs and goals of each client, but the salon is dedicated to offering competitive rates for all its services.

Promotions Plan

At Luxurious Locks Extensions, we understand the importance of a strong promotional strategy to attract and retain a loyal customer base. Our comprehensive approach combines the power of online marketing with additional proven promotional methods to ensure we stand out in the competitive hair extensions market in Troy, MI.

Online marketing forms the cornerstone of our promotional efforts. We will leverage social media platforms such as Instagram, Facebook, and Pinterest, where visual appeal plays a significant role, to showcase the quality and variety of our hair extensions. Through engaging content, before-and-after transformations, and customer testimonials, we expect to build a strong following and engage with our audience on a personal level. Additionally, targeted ads will help us reach potential customers based on their interests, search histories, and demographics, ensuring a high conversion rate.

Email marketing will also play a critical role in our strategy. By collecting email addresses both in-store and online, we will send out regular newsletters featuring new products, styling tips, and exclusive offers. This direct line of communication will keep our brand top-of-mind and encourage repeat business.

Recognizing the power of word-of-mouth, we will implement a referral program that rewards our customers for spreading the word about Luxurious Locks Extensions. This will not only help us grow our customer base but also build a community of brand advocates.

Local partnerships with salons and beauty influencers in Troy, MI, will allow us to introduce our products to a wider audience. These partnerships will include collaborative events, sponsored posts, and special discounts for followers, creating buzz and excitement around our brand.

Finally, community engagement through participation in local events, sponsorships, and charitable activities will help us build a positive brand image and connect with our community on a deeper level. This approach will not only increase brand visibility but also position us as a responsible and caring brand committed to making a difference.

By integrating these promotional methods, Luxurious Locks Extensions expects to establish a strong market presence in Troy, MI, attracting customers who seek high-quality hair extensions and exceptional service. Our focus on building relationships with our customers, both online and in the local community, will ensure we become the go-to destination for all their hair extension needs.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Luxurious Locks Extensions, there are several key day-to-day operational processes that we will perform.

• Customer appointments management – We will efficiently schedule, confirm, and follow up on appointments through our booking system to maximize client satisfaction and salon capacity.
• Inventory management – We will continuously monitor and replenish our stock of hair extensions and salon supplies to ensure we always have a wide variety of high-quality options available for our clients.
• Quality control checks – We will perform regular checks on our hair extension products to ensure they meet our high standards for quality, durability, and aesthetics.
• Staff training and development – We will conduct ongoing training sessions for our stylists and support staff to keep them updated on the latest hair extension techniques, trends, and customer service practices.
• Customer service excellence – We will prioritize providing exceptional service by greeting clients warmly, addressing their needs promptly, and ensuring they are satisfied with their service before they leave.
• Marketing and promotion – We will actively promote Luxurious Locks Extensions through social media, local advertising, and partnerships with local businesses to attract new customers and retain existing ones.
• Financial management – We will meticulously manage our finances, including daily sales tracking, expense monitoring, and budgeting, to ensure the business remains profitable and sustainable.
• Cleanliness and hygiene practices – We will maintain a clean and hygienic salon environment by following strict cleanliness protocols before and after each client visit to ensure the health and safety of our clients and staff.
• Feedback collection and analysis – We will collect feedback from our clients through various channels, analyze it, and use it to make informed decisions about service improvements and product offerings.
• Technology updates – We will keep our technology, including booking systems, payment processing, and customer management software, up-to-date to enhance operational efficiency and customer experience.

Luxurious Locks Extensions expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a prime location in Troy, MI: Identifying and leasing a storefront in a high-traffic area where potential clients frequent. This will help increase visibility and accessibility.
• Obtain necessary permits and licenses: Ensuring all the required local, state, and federal permits and licenses are acquired to legally operate the business. This includes any health and safety certifications specific to hair products and services.
• Build out and furnish the store: Designing an inviting and functional space that aligns with the Luxurious Locks Extensions brand. This includes purchasing the necessary equipment, furniture, and initial inventory of hair extensions.
• Hire and train qualified staff: Recruiting skilled stylists and support staff who are experienced in hair extension application, customer service, and sales. Providing comprehensive training on product knowledge, installation techniques, and customer interaction protocols.
• Develop a robust marketing plan: Crafting an effective marketing strategy that utilizes social media, local advertising, and word-of-mouth to generate interest and attract customers to the newly opened business.
• Launch our hair extensions business: Officially opening Luxurious Locks Extensions with a launch event or promotion that draws attention and traffic to the store, establishing a strong initial customer base.
• Implement an online booking and sales platform: Setting up a user-friendly website and mobile app that allows customers to view products, book appointments, and make purchases online, expanding the business’s reach and convenience.
• Establish partnerships with local businesses: Collaborating with local salons, boutiques, and influencers to promote Luxurious Locks Extensions and drive referral traffic, enhancing brand visibility in the community.
• Achieve operational efficiency: Streamlining business operations, including inventory management, appointment scheduling, and customer service processes to reduce costs and improve the customer experience.
• Get to $15,000/month in revenue: Reaching a monthly sales goal of $15,000 through effective marketing, sales efforts, and high-quality service, ensuring the business is on a path to profitability and long-term success.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Luxurious Locks Extensions management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Athena Allen, CEO

Athena Allen’s career is marked by a proven track record of entrepreneurial success, particularly in the niche of hair extensions. Her experience is not just theoretical but practical, having previously steered a hair extensions business to success. This background equips her with the invaluable insights into market trends, consumer preferences, and the intricate dynamics of the beauty industry. Athena’s leadership is characterized by a strategic approach to business development, marketing, and operations. Her vision for Luxurious Locks Extensions is built on a foundation of quality, innovation, and customer satisfaction, aiming to position the company as a leader in the beauty sector. Athena’s expertise and passion for the beauty industry make her uniquely qualified to guide Luxurious Locks Extensions towards achieving lasting success.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Luxurious Locks Extensions needs $183,000 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement.

Hair Extensions Business Plan Template & Guidebook

Are you starting a hair extensions business? The demand for high-quality hair extensions has never been higher. Starting a hair extensions business can be a fulfilling and profitable venture. However, it's important to have a solid business plan in place to ensure the success of your business. Our Hair Extensions Business Plan Template & Guidebook is designed to help you easily create a comprehensive business plan for your hair extensions business. This guidebook provides step-by-step instructions on how to create each section of your business plan, as well as helpful tips and examples to ensure that your plan is thorough and effective. With our template and guidebook, you can confidently put together a solid business plan to help you achieve your hair extensions business goals.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Hair Extensions Business [11 Steps]
• 25 Catchy Hair Extensions Business Names:
• List of the Best Marketing Ideas For Your Hair Extensions Business:

How to Write a Hair Extensions Business Plan in 7 Steps:

1. describe the purpose of your hair extensions business..

The first step to writing your business plan is to describe the purpose of your hair extensions business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a hair extensions business:

A hair extension business could have the following purpose mission statement: "Our purpose is to empower women to feel confident and beautiful by offering a wide range of high-quality hair extension products. We are committed to sourcing the finest natural hair and using innovative techniques to create long-lasting, easy-to-use extensions that enhance our customers' natural beauty. We strive to provide exceptional customer service and support to help each woman find the perfect hair extensions for her unique style.

2. Products & Services Offered by Your Hair Extensions Business.

The next step is to outline your products and services for your hair extensions business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your hair extensions business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your hair extensions business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your hair extensions business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a hair extensions business?

To run a hair extensions business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

• A physical location for your business, such as a salon, a booth within a larger salon, or a dedicated space within a retail location
• A comfortable and inviting workspace for applying hair extensions, with good lighting and a comfortable chair or styling station
• A variety of hair extension products, such as synthetic or human hair extensions, clips, and adhesives
• Tools for applying and removing hair extensions, such as a hair dryer, flat iron, and extension pliers
• Depending on your location and the services you offer, you may need to obtain a business license and other permits, such as a cosmetology or beauty license.

Overall, running a hair extensions business requires a mix of equipment, supplies, and permits to ensure that you can provide high-quality extensions and services to your clients.

5. Management & Organization of Your Hair Extensions Business.

The second part of your hair extensions business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your hair extensions business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Hair Extensions Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a hair extensions business varies based on many different variables, but below are a few different types of startup costs for a hair extensions business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your hair extensions business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your hair extensions business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your hair extensions business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Hair Extensions Business Plans:

Why do you need a business plan for a hair extensions business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your hair extensions business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your hair extensions business?)

To build a business plan for your hair extensions business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written hair extensions business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a hair extensions business plan yourself?

Yes, you can write a hair extensions business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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How to Start a Hair Extension Business in 14 Steps (In-Depth Guide)

Updated:   January 18, 2024

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The hair extension industry is booming. The market reached $4.06 billion in 2022 and is projected to reach $7.9 billion by 2030, according to Fortune Business Insights . More people are turning to clip-ins, tapes, and sew-ins to avoid drastic permanent hair changes.

This comprehensive guide will walk you through how to start a hair extension business. From researching your market and developing a business plan to obtaining a business license and location, establishing supplier relationships, hiring staff, marketing your salon, and managing day-to-day operations.

1. Conduct Hair Extension Market Research

Market research is integral to building a successful hair extensions business. There are two types of market research, primary and secondary. The primary is research you conduct yourself. Secondary is research conducted by a third party.

Market research is important for insight into the hair salon, hair extension, and wig business market. It tells you about potential customers, your local target market, the best places to buy hair extensions, and even the top social media accounts for marketing.

As you develop a business model for your hair extension company, here are some details to recognize:

• Increasing demand for fashionable hairstyles and the flexibility to change styles quickly and easily.
• The rise of celebrity culture and social media influences people’s beauty ideals and desire to emulate celebrity hairstyles.
• More focus on overall appearance and spending on beauty services.
• Advances in extension technology, like hand-tied wefts, tape-ins, and clip-ins that look and feel natural.
• Growing consumer budgets for non-essential beauty services and willingness to pay premium prices for high-quality extensions.

The best opportunities in the hair extension industry include:

• Brick-and-mortar salon businesses that sell and install extensions.
• Specialist extension stylists who offer services independent of the salon.
• Freelance extension application is in demand for events like weddings.
• Selling branded hair extension products through wholesale and e-commerce channels.
• Offering custom extension design services for television, film, theater productions, and cosplay events.

To capitalize on this growing industry, extension salon owners must focus on:

• Stylist education and training
• Competitive Pricing
• Diverse extension options
• Strong customer service
• Consistent marketing

Overall, the hair extension market provides exciting entrepreneurial opportunities for those passionate about the beauty industry. You could even potentially improve the overall appeal of your hair extension business by providing hair braiding services or even wigs since these are also part of the hair industry.

2. Analyze the Competition

Thoroughly analyzing your competition is crucial when starting a hair extension business. This helps you identify how opponents are storing hair extensions, where to buy the best quality hair extensions, whether competitors are using fake or natural hair, and more.

Some ways to check out the local human hair extension businesses include:

• Research existing salons in your geographic area.
• Drive around town and take notes on locations, signage, customer volume, and marketing.
• Search online directories and review sites to see services offered, pricing, ratings, and reviews.
• Visit competitor salons as a secret shopper and evaluate customer service, quality of extensions, and the overall experience.
• Search relevant keywords related to your location and service offerings to see what salons rank highly in local search results.
• Study their websites closely – how optimized are they for SEO? Do they facilitate easy online booking?
• Compare their social media followings and online reviews.
• Sign up for email lists to analyze promotions and offers.
• Examine their overall branding and digital marketing strategy.

By comprehensively analyzing both in-person and online competitors, you gain an accurate picture of strengths, weaknesses, and competitive gaps. You can then refine your business plan and competitive positioning to stand apart. Continuously monitoring competitors even after opening will help you stay ahead.

3. Costs to Start a Hair Extension Business

When starting a hair extension business, carefully estimating costs is essential for securing financing and setting up an effective budget.

Start-up Costs

Start-up costs are the expenses encountered as you start a new business in the hair industry. For a successful hair extension business, you’ll need to spend money on:

• Business licensing – $50-$500 depending on location
• Liability insurance – $500-$2000 annually
• Hair styling equipment like salon chairs ($300-$1000 each), shampoo basins ($200-$500 each), dryer chairs ($200-$600 each), carts, mirrors, etc. Equipping stations for 2-4 stylists could cost $4000-$10,000.
• Hair extension inventory – Budget $2000-$5000 minimum for initial extension stock including tapes, keratin bonds, clip-ins, ponytails, and other styles. Factor in a variety of textures and colors.
• Salon lease deposit – Typically 1-2 months rent; $2000-$5000 for a small shop.
• Salon buildout/renovations like flooring, lighting, and plumbing – $5000-$25,000+ depending on space.
• POS system for appointment booking and retail sales – $50-$150/month
• Website design and development – $1500-$5000 for pro site.
• Marketing materials – $500-$2000 for signage, business cards, flyers.
• Grand opening event – $500-$2000 for refreshments, entertainment, giveaways.
• Professional services like bookkeeping, and payroll admin – $200-$500 monthly.
• Initial product/supply inventory – $1000-$2000 for backbar, salon retail.

Ongoing Costs

Ongoing costs include any expenses encountered throughout the life of your hair business. Some common expenses when you operate your own business include:

• Rent – $1500-$4000 for small leased space. More for purchased property including mortgage payments, property tax, etc.
• Staffing – Hairstylists may be booth renters or employees. Booth rent averages $400-$1000 per station. Employing 2-5 assistants at $15-$20/hour would be $5000-$10,000 monthly.
• Insurance – $150-$600 depending on policy
• Utilities – $300-$800
• Office Supplies/hair products – $500-$1500
• Extension inventory restocking – $500-$2000 to replace sold product
• Marketing expenses like social media advertising or SEO – $300-$1500+
• Credit card processing fees – ~2-4% of revenue
• Accounting fees – $200-$500
• Shop maintenance – $500 miscellaneous repairs/upkeep

Annual expenses:

• Liability insurance renewal
• Licensure renewals – $50-$500
• Continuing education – $100-$500 per stylist
• POS system – $600-$1800
• Accounting software – $300-$1500

Overall, total start-up costs for a small hair extension salon can range from $20,000 to $100,000 based on inventory, location, renovations, and equipment needs. Ongoing monthly expenses will typically cost between $10,000 to $25,000. Carefully estimating expenses and creating a detailed budget is key to success.

4. Form a Legal Business Entity

When starting a hair extension business, one key legal decision is choosing your business structure. The right entity can limit liability and provide tax advantages. Here are the main options:

Sole Proprietorship

A sole proprietorship is the simplest structure. You operate as an individual with pass-through taxation. However, you have unlimited personal liability for debts or lawsuits against the business. This poses risks for a salon as customers could file injury claims related to extension applications.

Partnership

A general partnership lets multiple hair stylists jointly run an extension salon and share profits. Like sole proprietors, partners have unlimited personal liability. Partnerships can also cause issues if a partner wants to exit the business. Overall, sole proprietorships and partnerships provide little liability protection.

Limited Liability Company (LLC)

A better option is forming an LLC (limited liability company). LLCs shield your assets from business liabilities, so extension clients cannot easily sue you personally. LLC profits pass through to members’ taxes, avoiding double taxation. LLCs allow flexible management and ownership structures suitable for a small salon with multiple stylists. Startup costs are low.

S-Corporation

S-corporations also provide liability protection and pass-through taxes. But S-corps have stricter ownership rules requiring shareholders to be U.S. citizens. The formal structure involves more paperwork than an LLC. Overall, an S-corp offers minimal benefits over an LLC for a hair extension business.

C-Corporation

C-corporations let you sell stock and have unlimited fundraising potential. However, C-corps come with double taxation where profits are taxed at the corporate level and shareholder level. More record-keeping and formalities are required. For a small hair extension salon, double taxation and startup costs make a C-corp disadvantageous.

5. Register Your Business For Taxes

An EIN, or Employer Identification Number, is crucial for hair extension businesses to obtain. This unique ID number is used for key purposes:

• Opening a business bank account
• Registering your LLC or corporation
• Filing taxes
• Hiring employees

Essentially it serves as your business’s social security number for interacting with state/federal agencies.

The good news is applying for an EIN is quick and free through the IRS website. Simply go to the EIN Assistant page and select “View Additional Types, Including Tax-Exempt and Governmental Organizations.” Choose “Sole Proprietorship/Individual” or “Partnership” for a simple extension salon.

Follow the steps to enter your personal information, business name and address, reason for applying, and ownership details. Submitting online takes just minutes. You’ll receive an EIN immediately in the form of a 9-digit number.

Registration for state sales tax collection, often called a Seller’s Permit, is also crucial for hair salons selling retail products. Check your state’s website for the proper forms and low registration fees, usually around $10 to $50.

6. Setup Your Accounting

Maintaining accurate financial records is critical for hair extension salon owners. Here are some ways to maintain finances when selling hair extensions as part of your hair business.

Accounting Software

With sales transactions and inventory purchases daily, using accounting software like QuickBooks streamlines tracking income and expenses. QuickBooks connects to your business bank accounts and credit cards, automatically importing and categorizing transactions.

Hire an Accountant

A bookkeeper can handle accounts receivable/payable, bank reconciliations, and produce financial statements for only $300-$500 monthly. Come tax season, an accountant will know industry specifics to maximize hair extension salon write-offs and deductions. They ensure proper sales tax collection and remittance as well.

Open a Business Bank Account

Open a business bank account to keep all personal and professional spending separate. When you own your own hair extension business, you don’t want the IRS to assume any personal spending is happening with company money. It also helps you stay organized come tax season.

Apply for a Business Credit Card

A business credit card is also advised over personal cards. Business cards require your company’s information and do factor in your credit score. Higher limits cater to your operating expenses. Charge all inventory purchases, advertising, software subscriptions, and other costs to this card.

7. Obtain Licenses and Permits

Opening a hair extension salon legally requires obtaining specific licenses and permits. Check with the U.S. Small Business Administration for federal requirements. The SBA also has a local search tool for state and city permit requirements.

At the state level, a cosmetology facility license allows you to operate a beauty salon. States mandate facilities meet certain health codes, provide licensed services, and safely store chemicals. Application fees are typically $50 to $500 depending on location.

A local business license or occupational tax certificate is mandated to legally operate in the jurisdiction. City or county clerks issue fees starting around $30. Some cities have additional industry-specific licenses for salons that regulate sanitation and bonding.

You may also need a fire inspection and health department inspection to get occupancy approval. Any signage for your salon requires a permit as well.

If hiring employees right away, be sure to register for a Federal Employer Identification Number to handle payroll taxes, unemployment insurance, and workers comp.

8. Get Business Insurance

Carrying proper insurance is crucial to protect your hair extension investment from unpredictable events. The right policies can save your company from financial ruin if you encounter mishaps.

Some common scenarios where a lack of insurance could devastate an extension salon:

• A stylist improperly secures a client’s extensions, causing hair loss and scalp irritation. The client sues for injury and emotional damages totaling $50,000. Without liability insurance, you’d pay these hefty expenses out of pocket.
• A plumbing leak overnight floods your salon and ruins $10,000 worth of inventory and equipment. No coverage means eating these replacement costs.
• A burglar smashes your front window and steals $5,000 of product. Insurance helps recoup theft losses.

To avoid such disasters, partner with an insurance broker to purchase recommended policies:

• General liability insurance covers 3rd party injury and property damage claims. Up to $2 million in coverage is recommended.
• Property insurance replaces stolen, damaged inventory and equipment. Get detailed replacement cost coverage.
• Commercial auto insurance protects company vehicles.
• Workers comp insurance covers employee injuries. Most states mandate this coverage.

For comprehensive protection, expect to budget $1,000 to $5,000 annually depending on your policies, limits, deductibles, and provider. Insurance gives peace of mind that accidents and unforeseen events won’t dismantle your salon.

9. Create an Office Space

While your salon will be the main hub, securing office space can benefit your hair extension operation in key ways:

• A private area for bookkeeping, QuickBooks entries, and other admin work. Salon noise and distractions make this challenging.
• Storage room for excess inventory and supplies, removing clutter from the salon floor.
• Meeting space for consultations, hiring interviews, and other appointments. This maintains a professional image.

Here are ideal options to consider:

Home Office

A home office allows you to work from the convenience of home. Expect costs of $100 to $500 to set up a basic desk and supplies in a spare bedroom or basement. While affordable, the home environment poses productivity and separation challenges.

Coworking Office

Coworking spaces like WeWork provide an affordable, professional office environment starting around $300/month. Open work areas, private offices, meeting rooms, and networking events are included. However, coming and going can reduce time at your salon.

Retail Office

If opening a retail salon, secure space with a back office/breakroom. This allows for storage and meetings without a separate lease. However, space within salons is often limited. Expect to pay 10% to 30% more in rent.

Commercial Office

Leasing a private commercial office space offers the most professional setting for meetings and solo work. A basic one-room setup rents for approximately $600 to $1500 monthly. The expense may not make sense for new extension salons.

10. Source Your Equipment

A hair extension salon needs quality styling tools and stations to deliver exceptional service. Not to mention several styles of hair extensions and application products.

From dryers to shampoo chairs, here are the top ways to acquire the necessary equipment:

Buying brand new gives you modern tools in pristine condition. Look to beauty suppliers like Sally Beauty, CosmoProf, and Beauty Systems Group for professional discounts of up to 30% off retail. Online specialty shops like Bangn Beauty also sell salon essentials. Expect to invest $4000-$10,000 in outfitting stations for 2 to 4 stylists.

Gently used equipment through resale saves substantially on costs. Facebook Marketplace and Craigslist frequently list salon chairs, carts, and dryers from stylists upgrading their tools. Expect 50% to 75% off original prices. eBay and OfferUp also connect you to sellers. Inspect secondhand items carefully before purchasing.

Renting equipment avoids major upfront costs while testing different options long-term. Check local classifieds or national rental marketplaces for short-term rentals around $100 to $200 monthly per piece. This helps limit spending as you build your clientele. Just confirm policies for damages.

Leasing through your beauty distributor bundles equipment costs into monthly payments over 3 to 5 years. Zero-down leases start around $150 monthly per styling station. You own the equipment after the term.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for hair extension salons to stand out. A polished brand conveys quality services and helps attract loyal clients.

Get a Business Phone Line

Start with securing a professional business phone number through a provider like RingCentral . Choose a local area code and dedicated line with call routing features to ensure no missed appointment calls. Expect to invest $25 to $50 monthly.

Design a Logo

Designing a logo and brand assets builds recognition. A creative, meaningful logo like an abstract hair graphic or stylized name reinforces your style and specialty. Use a logo maker like Looka to explore affordable options starting at $20.

Ensure brand colors, fonts, and graphic elements align across assets like business cards, email signatures, and signage. This consistency cements your identity.

Print Business Cards

Business cards from Vistaprint make in-person networking easy. Custom cards with your logo, tagline, and contact info cost roughly $20 for 500. Share these during outreach to gain new extension clients. Signage also announces your presence.

Buy a Domain Name

Buy your custom domain name through a registrar like Namecheap for maximum brand potential. A domain like “LuxeLocksExtensions.com” resonates. Expect annual registration fees of around $15. Choose a domain relating to your name or services.

Build a Website

Building a website establishes an online presence and hub for bookings. Using a user-friendly website builder like Wix , you can create a professional site yourself. Select a template, add hair images, service menus, and online booking, and publish for approximately $20 monthly.

Design a Website

Alternatively, hire a freelancer on Fiverr to custom-design a site for around $500. They handle technical aspects while you provide content. This yields a more strategic, optimized website.

12. Join Associations and Groups

Joining relevant associations and online groups can provide invaluable connections and growth for hair extension salons. Surrounding yourself with others in your industry yields mentorship, referrals, and inside knowledge you won’t find elsewhere.

Local Associations

Search for a local beauty or cosmetology association to join, such as the American Association of Cosmetology Salons or the Professional Beauty Association . Memberships start around $50 annually for access to training, discounts, and networking mixers to meet stylists in your area.

Local Meetups

Regularly attending local trade shows and meetups is also advised. Use Meetup to find fellow beauty professionals in your region. Swap business strategies in person at low or no-cost events. Exchanging cards and social followers drives future referrals.

Facebook Group

Facebook groups connect you with stylish communities, both locally and beyond. Join industry-specific groups like Hair Extension Business Secrets – Marketing & Technique Support Group and Hair Extension Business Owners to access thousands of global peers. Get feedback, share experiences, and more at your fingertips.

13. How to Market a Hair Extension Business

Marketing is crucial for any new hair extension salon to create awareness, attract clients, and grow revenue. With the right promotion, you can establish your salon as a top destination for extensions in your area.

Start by tapping your network. Reach out to friends, family, and colleagues and ask them to try your services and provide referrals. Offer 10% off or other perks for word-of-mouth marketing. Satisfied clients are powerful brand advocates.

Digital Marketing

For digital marketing, focus on strategies like:

• Google/Facebook Ads targeted locally to drive website traffic and bookings
• Search Engine Optimization to rank higher in local salon searches
• Customer review generation and management on Google, Facebook, Yelp
• Email marketing with promotions to build your client list
• Instagram feed showcasing extension styles, specials, before/afters
• TikTok videos on extension techniques, behind-the-scenes, transitions
• YouTube tutorials on extension care, styling tips, and client testimonials

Traditional Marketing

Traditional tactics like direct mail, radio, print ads in local magazines, and billboards can also work but may provide a lower return on investment. Consider:

• Grand opening flyers mailed to households in a 10-mile radius
• Local radio spot ads on popular stations
• Ad in city magazine beauty section
• Eye-catching roadside billboard near your location

While digital marketing tends to be more affordable and measurable, explore your options. Geo-targeted Facebook Ads to nearby followers of hair pages generate conversions under $5 per booking. Match tactics to your goals and continuously test new approaches.

14. Focus on the Customer

Providing exceptional customer service is crucial for hair extension salons to gain loyal, happy clients who refer others. How you treat clients directly impacts your reputation and bottom line. Some ways to enhance customer service when you sell hair extensions include:

• For example, carefully listening to desired outcomes during consultations and delivering that experience leaves clients satisfied.
• Sending follow-ups after appointments asking how the extensions are wearing ensures excellent long-term results.
• Resolving any issues quickly, like adjusting an application that didn’t take properly or replacing damaged extensions, preserves your reputation.
• Going above and beyond also delights clients.
• Throwing in free deep conditioning treatments or hair products for regulars shows you value their business.
• Remembering personal details and preferences tailors the experience.
• Consistently delivering 5-star service earns rave recommendations across Google, Facebook, Instagram, and more.

The referral business and return visits generated by stellar customer service provide crucial recurring revenue. This steady stream of clients is any salon’s dream. So never neglect the care you provide customers. Your attention and personal touches create a memorable experience that fosters loyalty and growth.

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