Change they say is constant, as every one of us is constantly and always trying to change, even when the circumstances warranting the changes, sometimes are not within our control, just like the changes that covid-19 pandemic brought about, which to say the least, took all of us by surprise.
In like manner, the fashion industry is probably, perhaps one of the industries with the most volatile changes, as fashion, trends and fads, change most times faster than the speed of light. But despite, all the lightning speed inspired changes, one sector, which has refused to go away, is the adoption and use of human hair extensions to accentuate the beauty of fashionable women/and or men.
We will therefore through this write up, provide you with all the details and guides, you will need, so as to enable you profit from this multi-billion dollars hair extension industry, by equipping you with the knowledge of starting your own hair business.
But like every astute business man/woman, no one goes into any business without first doing the ground work, by finding out as much details/information about that particular business as possible. This guide will therefore serve as the road map and everything you need to know in starting and profiting from hair business in 2020 and beyond.
According to forecast, the global hair wigs and extension market is estimated to reach revenues of more than $10 billion by 2023, growing at a CAGR of approximately 9% during 2017-2023. – Global Outlook and Forecast.
Here are some basic tasks you will want to look into if and when you decide to start selling hair extensions.
• Registering a company
• Coming up with your “Brand Name” for your hair business
• Creating Social Media Accounts
• Getting your Domain Name
• Building a Website (We can help you)
• Buying Wholesale Hair or Consider Dropshipping
• Starting to take orders!
Human hair (known as wigs and extensions) as a fashion accessory is greatly sought after, as they are used in the making of extensions, braids, custom wigs and hair pieces. Because of its aesthetic natures and also because it is greatly used to enhance and accentuate beauty, it has become a highly coveted commodity with attendant widespread usage.
It is then very important for as many people as possible that wants to go into hair business, to take advantage of this to start and profiting from hair business, this can be done, as either a manufacturer, wholesaler or even as a retailer or stylist. Because of the nature of the hair, which is synthetic, it is so easy to start and profit from hair business, as we now have more and more people using the hair, simply because it looks so natural on them.
So depending on which aspect of the hair business, you want to get into, it is very important you chose how you want to come into the business, but no matter how you want to get started, please take note of the followings:
Hair Business Basics (Questions you must answer)
- Will your hair business be based out of the U.S or where will it be located?
- Will your suppliers be reliable with deliveries?
- Will your products be of high quality?
- How will you deliver your products to your customers?
If you have successfully answered the above questions, you will then know that you are a step closer in starting your hair business, and you can start your hair business and become profitable if you take note of the steps below:
1. Research Your Products:
To become successful in your hair business, you must research your products, very well. You must learn about the various types of human hair available, as this will help you know the differences between synthetic and human hair weaves for instance, this will also help you serve your customers better, by giving them what they want.
You should be able to know the difference between 16 inch and 18 inch, European and Asian hair, texture, colours, etc. Your research, will also put you in a position to advise your customers professionally, with regards to the type of hair that will suit them. You can do your research online or read cosmetology and hair-care books for a start.
After you are done with your research, you will then need to find a reliable hair extensions supplier as, without one, you might as well not start a business at all.
2. Decide how you will sell your hair
It entirely depends on you how you decide to sell your hair products, though this will be determined by your skills level or the resources available to you. For a start, you can either decide to sell the traditional way, called brick-and-mortar, meaning you can open a retail store or you can decide to take this a little step further, by opening an e-commerce shop, meaning you decide to sell your products online.
Each option you choose has its own pros and cons, but for better understanding, if you decide to go the e-commerce route, which is far easier to scale, you may decide to use drop shipping.
This will involve you setting up a bulk account, with a hair manufacturer/supplier, and you will not have to store the hair in any warehouse of your own, as the drop shipping company, will pick up the orders from the manufacturers/suppliers warehouse, when they come in through your website and deliver the orders to your customers.
If you decide to open a retail shop, please ensure, to use air-tight storage containers to store the hairs, or you can simply hung them or laid them flat, avoiding twisting, as this may ruin the hair.
3. Promote Your Business
It is commonly said that doing business without advertising is like winking in the dark, you know what you are doing, but nobody else does. In like manner, it is very important and instructive that you promote your new business, it does not matter if you are selling in a retail shop or online. You must get the word out, so your prospective customers will know about your business.
For example, in getting started, you can sponsor a hair or fashion show, donate customized hair to cancer patients, organize and carry out hair care treatment sessions with some stylists, etc. The bottom line is, simply do whatever it will take to get the word out there about your business. Sponsoring a hair or fashion show for instance, may attract media attention and give you the required coverage for your business.
You can also take advantage of social media like Instagram and post frequently, or you can start a blog, providing hair styling/fashion tips, or post on forums. (If you need help starting a blog, reach out to www.dailymediang.com, they will help you)
4. Provide Customer Incentives/Royalty programmes
After you have started promoting your hair business, you should bear in mind that your prospective customers, probably have shops or businesses where they buy their hairs from, before you started your business. So it will be a good time to offer your prospective customers some incentives. You should give your prospective customers a good reason to patronize you.
For instance, you can offer special prices for any new customer that introduces a new customer, or you can choose a day of the week or month where you can offer your products on special prices within those days.
5. Sell Accessories and Supplies
To scale up your new hair business, you can sell hair accessories, as the aim of this is to drive traffic to your shop. Hair accessories like bonding glue, hair razors and weaving needles, are some of the items that will help you increase your profits, while also letting those who did not need hair at the moment come into your shop and see all your offerings.
6. Offer Discounts to Repeat Customers
You can also decide to offer special 20-30 percent discounts to students or any special group with large population or even salon professionals and cosmetology students to gain steady, repeat business. Don’t think about the amount you are losing because of the discount sales, as such categories of clients can be very valuable and you will make up the cost of the discount easily as they usually buy more hair at a time than regular customers.
7. Be Flexible with Your Business
If you decide to sell your products online, do you leave it entirely to that, you can still keep some products at home with you, as this will enable you easily send them out to people close to you, when orders are made, so instead of waiting for orders from long distance drop shopping company to deliver them, you can easily and quickly deliver to them.
The advantage of this method, is that it gives you much faster delivery time, and your satisfied customers will spread the word on how fast you deliver when orders are made.
It should be noted that when you are starting out, you may not have it all figured out, so learn, test what works, do some tweaking and go with what works, as this will help you better understand, what colour, texture, length and type of hair that your customers always want.
8. Start Hair Extension Affiliate Programs
It is a very good idea to start a hair extension affiliate program. This basically requires getting others to either sell your products directly or introduce leads and get paid a commission for each product sold. The advantage of this is that you will recoup from volume sales.
For instance, you will sell more, if you have 1000 persons selling your products for a fraction of a commission, than only you trying to sell to 1000 persons. It should be noted that the affiliate program works similarly to a drop shipping service and requires no investment on your part. It does not require you to do anything other than giving a specifically generated link to your affiliates.
9. Study Your Competitors
To be successful in your hair business, you must study your competition. One easy way to achieve this is to do a keyword research on google to see your top 5 competitors. Look at their offerings and take a critical look of everything that grabbed your attention on their site for instance. It can range from design of their site, logo, photos, and check out process.
These key findings will help you in twerking your offerings more, as you would now have a better understanding on what they are not doing rightly and improve on them. Never forget that the check-out process on your site should be the most seamless, as there will be no need for people abandoning their cart on your site, because of the difficulties associated with checking out.
10. Be Cautiously Optimistic
I know that starting a new business, sometimes transports us from reality to a dream land, but before you start dreaming about the millions of dollars that you will be making every month, you must be extremely cautious when it comes to your financial projections.
Make it a duty to write down your goals for the next 3-6 months, including expenses such as marketing, commissions, fees, etc. Also, you should decide the average profit you want to earn for every product sold. It is important to have a projected profit margin per product sold, as this will guide you in your decision-making processes.
11. Branding & Packaging
Your branding and packaging is as important as your hair business itself. It is your branding and packaging that will speak for you, when you ship out your products to your customers, as your packaging will always serve as a form of free advertising for your business. The advantage of great branding and packaging is that your new customer’s friends, colleagues, neighbors, may see the box when they are delivered and get attracted to your business.
So in like manner, a poorly designed box may become a turn off for a customer who has already ordered your product, and her friends will also know about it, thereby making you losing out on potential customers. But remember, everyone is social, and the reason they are buying your product is that they want to look good when they go out. Nobody ever bought hair extensions for the simple reason of staying at home or locking it up in a shelf. If you have got it, flaunt it, is a common saying, and what are they flaunting, if not your brand.
Deciding to start and profit from hair business is entirely up to you. There is a common saying, that you can force a horse to the river, but you cannot force the horse to drink water.
We have succeeded in providing you with the information and a guide on how you can start and profit from hair business, but taking the action and getting started is a decision, you must take yourself. You can decide whether you will operate a brick and mortar retail outlet or sell your products online.
There are no hard and fast rules about this and there are no comparative advantage of any option you choose, it is entirely dependent on the resources available to you and your skills level.
Your choice will also depend largely on your goals and objectives, target market, start-up capital and personal preference and intending country of operations. However, the capital available to you will determine if you will start as either a distributor or a wholesaler. The ball is in your court.
Let us know your thoughts about starting a hair business or if there is any business you want us to write about in the comment session.
Life doesn’t get easier than this.