How to Write a Hair Extension Business Plan
Want to create a hair extension business plan but don't know where to start?
If you are really serious about selling hair extensions it should be something to consider. If you need an eyelash extension business plan this should help too!
You might think creating a well-crafted business plan can be time-consuming and a little daunting without some guidance. This can be true!
No worries, we are here to help!
Below is a step-by-step guide to what you will need to create a hair extension business plan for your new business or your current.
First, let's go over exactly what a business plan is and why you should have one.
Chapter #1: What is a Business Plan?
A business plan is a written document that highlights in detail how business, usually a new one is going to achieve its goals. It usually lays out a written plan from a financial, operational, and most importantly marketing point of view.
Sometimes a business plan is prepared for the companies which are working on reaching new horizons with their business.
It is important to have the ideas in written form so that they are executed with precision.
You may find it is also useful to demonstrate the feasibility of the prospective new business and to provide a map for its years of operation in the future.
Once the business is up and running, it will be a document you will consider looking at when you are struggling or have any doubts. This consultation can foresee whether you are on track or not; perhaps you have strayed from your initials and need to revert to the original ideas.
Why is a business plan important?
A business plan is necessary because of a number of reasons.
1. Clarify Directions
The primary purpose of a business plan is to explain what the business is or what it intends to achieve in the future. Clarifying the purpose of your business allows you to understand the direction of the forward movement. It may include a simple idea about your business, the product services, and the detailed description of what you expect from the customers as well.
2. To Obtain Financing
A business plan is always necessary if you wish to secure funding, whether you are operating a new plan or want to seek a bank loan or venture capital. But why do investors want to see your business plan? For understanding this, you have to look it through a different perspective.
Let’s suppose you are going to loan someone $1,000 or more for their business. With the hope of getting the money back and seeing a return on your investment, you would want to know exactly how the money would be used, who is going to be in charge, what makes them qualified to succeed, what are their valuable assets, liabilities, and profits look like? Of course, you would want to know the details.
3. To Maintain Your Organization
A business plan ensures that the organizational structure of your business is well developed.
It includes the entitlement of your directors, officers, and specific duties. Thus is can act as a management tool that can regularly be consulted to ensure the organization is on track and the goals are being pursued efficiently.
4. Vision for the Future
For most of the companies, business evolves over time, and factoring future growth into your business plan can prove very crucial to coping with the changes in the markets.
Thus it helps you to envision your future and things you can to safeguard it.
Planning for your Hair Extension Business Model
Congratulations if you have decided to write a hair extension business plan, and you are ready to get started.
The chances of success of your business venture have significantly increased, and before drafting your plan, you need to plan on how to do it. Whenever you are presenting your business model, the only factors that will determine its value shall be the projections and proposals. That’s even more relevant when you are seeking for finances for your company.
Learning how to sell hair extensions is going to be vital, and your hair extension business plan will be your lifeline.
However, you need to understand that the business plans are very complicated documents. As you are drafting your plan, you are making decisions on very crucial matters e.g. the strategy you will pursue. Considering these things in advance can save you a lot of time in the future.
The following are the strategies you should explore before starting a hair extension venture.
Determine Your Goals and ObjectivesBefore writing your hair extension business plan, you need to foresee yourselves in the next five years. Consider thinking the following prospects:
- Where do you want your hair business to go?
- Will your hair business be staying stagnant at that time?
- Are you focused on a rapidly growing hair extension empire?
Answering these questions is imperative for building a successful hair extension business plan. Now is a good time to explore every avenue you’d like your business to go down. The best approach is to write an essay on your goals.
Create a ChecklistMany people have trouble deciding their goals and objectives. If you are one of those, here are the things you should ponder upon:
- How determined are you to see your hair venture succeed?
- Are you willing to sacrifice your personal benefits for the future of your hair company?
- What is going to be your approach if the venture fails?
- How many dedicated people do you need for your hair business?
- What is your goal in terms of revenues for the future?
- What will the hair company's market share be in five years?
- What are your plans for expansion? Are you going to keep your venture local, online, or would you go global?
- Which department would you specifically work on in your venture?
- If selling online, what type of hair extension website will you use?
Setting up your Financial Goals
Your business plan for hair extensions must have some financial goals. For running a business, you don’t need a lot of money to make a lot of money.
An optimistic approach to this is to leave everything on your sales. However, this may also create a problem for you because a business has some constraints.
You have to pay the suppliers first before you get paid by your customers. If this is an issue, you might want to consider Dropshipping Hair Extensions. This cash flow conundrum is the reason that companies have to resort to bank loans, borrowing money from family, or getting a small investor. Start by asking yourself these questions:
1. You must think about having a partner to help you with your hair business. An equal partner, naturally, shall demand higher power and control. Venture capitalists often require management decisions, just like having their say in your important decisions.
For most hair companies that are just starting out, you will not need to go the Venture Capital route unless you have a massive plan.
You don’t want any of these to happen. So the best partner for you is a bank. Banks will not bother you much until you make payments of principal and interest on time.
2. You should keep account of the money you wish to spend on your venture.
3. Anticipating the size of your needs, your spending, and financing, you should consider the running cost as well. If you are going to keep a lot of bundles in stock then what will be your holding inventory cost? These are things that are important to plan.
How Will You Use Your Hair Extension Business Plan?
It might sound a bit ambiguous to you, but a part of planning your business plan is to determine what you would do with it. Your plan of activities can reference to in many ways.
From monitoring your company’s road towards the success to alluring top employees, celebrities, or social influencers to join your venture. On the other hand, you can use a hair business plan as a marketing tool for consumers. This program will help you to create a test ensuring that your company stays credible in the hair extension market.
Marketing is Important for Your Hair Extension Business Plan
If you want to escape the cubicles and want to pursue your passion in the hair extension business, after a business plan you need to draft the key elements of your marketing strategy.
Hair extension marketing is critical to your success and separating you apart from the others in the industry.
The biggest problem with entrepreneurs is that most of them don’t have marketing experience.
No matter how great your hair extensions, no one is going to know if you don’t pitch it the right way. The Business plan for hair extension will be successful if you think about these agendas before writing it.
Who Is Your Target Audience?
Understanding your audience is vital. For a Hair Extensions venture, the target audience should be women, and you need to think about marketing your product in the right way so that more and more women are attracted to your company.
Are you going to be selling retail or wholesale? Is your price point going to be $150 a bundle and only market to the higher end crowd? There are many different aspects of your products and pricing to consider.
Most hair entrepreneurs will focus on the popular hair extensions that they know will sell in the market.
Knowing your target market will not only maximize profit but will also help you to cope up with the changing market.
What Marketing Strategy Do You Wish to Follow to Reach Your Audience?
Social media is a perfect place to market your products. Many hair companies just focus on growing their Instagram account. Focusing on just one platform that is not even your own can be dangerous if a platform like Instagram starts to lose popularity in the future.
Having a balanced but focused marketing strategy will set you up for hair sales success in the future.
Advertising your products in a newspaper might not just be an excellent idea because most of the people who read newspapers are above 55. Figure out what women usually watch more and customize your message using that medium.
Google Adwords can yield great results if done properly. Spending ad dollars on social media is proving to be one of the best ways to advertise to clients. Make sure to have this part of your plan and either become an expert or hire one.
Allotting a Separate Budget for Your Marketing
When you have given a thought to all these questions, you need to write down the magnitude of marketing for your product.
You might need professional help for marketing your product thus creating a budget beforehand is important.
How Long Should Your Business Plan Be?
For a real hair extensions business plan, you need to make it short and concise. You have to understand that it is not a doctoral thesis. It should have the easy to read format.
One should focus mostly on the fundamentals, robust analysis, and good projections. The following are the specifics you should work one.
- Keep the wording straight and straightforward and avoid using fancy words.
- Use short sentences as they are easy to read.
- Bullet points are crucial as they help the readers to have the information quite quickly.
- Keep the length of the plan very short. If your hair extension business plan is 40 pages, then you haven’t summarized it well.
- Business charts are imperative as they can be used to display predicted growth, sales, margin, and net worth by the year.
- Double-check the paper for any grammatical or spelling errors.
Chapter #2: How to Write a Hair Extension Business Plan?
Now that you have spent enough time understanding the business plan and done your homework in collecting the necessary information, it’s time to roll up your sleeves and start writing your business plan for Hair Extensions.
Following are the components of a business plan:
The executive summary is considered the most significant segment of your business plan. This section briefly explains to the reader that where your company is at the moment, what are your aims and ambitions, where you want to take your hair company, and why your business idea is going to be successful.
This can help you on two levels. If you are seeking for finances, the executive summary is the main highlight of your plan and can grab you a potential investor’s interest. On the other hand, it is the first step you lay down when you are starting a company and will determine the success of your hair business in the future.
The executive summary must highlight the strengths of your ideas. Preferably, it is the last section one should write, but it appears first in your hair extension business plan model.
What to include in your executive summary?
The following should be the highlights of your executive summary.
The Mission Statement
This statement explains what your business is about. It describes your business categorically and will give a prospect about your business to the readers.
It should point out straight about your products, the market you wish to enter, your target audience, and your company is or will be better than the others.
Are you going to carry sew-in extensions, closures, edge control, and mink lashes? Start coming up with a plan of what products you would like to offer at launch and others that you can provide as your hair extension business grows.
This section will give the readers a closer look at when your business was formed, the name of their founders, their roles, your number of employees, and your location.
This section will highlight the economic points of your business. This section will also cover your financial needs and how do you want to spend the capital.
Points of interest are advancements inside the organization that is fundamental to the accomplishment of the business. Real accomplishments incorporate things like licenses, models, area of an office, any essential get that should be set up for item advancement, or results from any test advertising that has been directed.
If you are just starting a business, you won't have as much data as a built-up organization. Rather, concentrate on your experience and foundation and the choices that drove you to begin this specific endeavor.
Have you been a hairstylist for ten years and have clients always asking you for hair? You practically already have a market built. All you need to do now is set up your hair extension business to start getting sales.
Show that you have done a careful market investigation. Incorporate data about a need or service in your objective market, and how your specific arrangements can fill it.
Persuade the reader that you can prevail in your real market, then address your plans.
The business description starts with a short depiction of the business. While depicting the business, talk about the present standpoint, and also future conceivable outcomes.
You ought to likewise give data on all the different markets inside the business, including any new items or improvements that will profit or antagonistically influence your business. Construct the majority of your perceptions on reliable information and make certain to commentary wellsprings of data as proper.
This is critical in case you're looking for financing; the reader will need to know exactly how tried and true your data is, and won't hazard cash on suspicions or guess.
Following are the things you need to include in your description:
- Describe the nature of your business and enlist the commercial center needs that you are attempting to satisfy.
- Clarify how your items and administrations address these needs.
- List the particular customers and organizations that your business serves or will serve in the future.
- Clarify the competitive advantages that you accept will make your business a win, for example, your area, workforce, efficient operations, or capacity to convey an incentive to your clients.
This section of the hair extension business plan must give a categorical analysis of your knowledge of the industry and the market as well as your research findings.
What to include in your Market Analysis?
- Industrial Outlook – Describe the hair extensions industry, including its current size, the trends, as well as other trends and characteristics that you foresee in the future.
- Information about your target market – In this particular case, your target market is 99% women. You need to research the specific age group that would be interested in buying your hair extensions and will need to devise a strategy to target this particular group.
- Distinguishing characters - What is the need of your potential customers? How can you fulfill these requirements?
- Market Share – This section shall include the market share and profit you can gain in a particular geographical area.
Organization and Management
Organization and Management follow market Analysis. This section of your business plan for hair extensions ought to include: your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.
Who does what in your business?
What is their experience and why are you bringing them into the business as board individuals or representatives?
What are they in charge of?
These may appear like additional inquiries to reply in an individual association; however, the general population reading your marketing strategy needs to know who's in control, and so let them know. Give a point by point portrayal of every division or office and its capacity.
This area ought to incorporate who's on the board and how you expect to keep them there. What sort of pay and incentives do you have for your workers? What about the advancements? Promise your reader that the general population you have on staff are something beyond names on a letterhead.
Service or Product Line
For a successful business model for hair extensions, this part shall incorporate data about the particular advantages of your products – from your client's point of view.
You ought to likewise discuss your item or organization’s capacity to address customer issues, any favorable circumstances your item has over that of the opposition, and the modern advancement organize your item is in.
Sales and Marketing
Once you have studied the target market thoroughly, it should be additionally characterized to decide the total feasible market. Finding this financial number should be possible in a few ways; however, most expert organizers will portray the available market by focusing on product segmentation factors that may deliver gaps inside the market.
It's imperative to comprehend that the total possible market is the part of the market that you can reach given each condition inside the environment is favorable and there is next to no opposition. In many companies, this is not the situation.
Different components will influence the share of the available market a business can sensibly acquire. These variables are frequently fixing to the structure of the business, the effect of rivalry, techniques for market infiltration, and proceeded with development, and the measure of capital the company will spend so as to increase the market share.
For a successful business plan for hair extension, you need to focus on the following strategies.
- A viable market penetration strategy
- A growth strategy that will include an internal strategy that shall primarily focus on things such as increasing your human resources, an acquisition strategy for buying another business, and a franchise strategy to colonize the world.
- A communication strategy on how you plan to reach your customers, the public platforms you’ll use to advertise, and your influence on social media.
Consider that your hair extensions business ventures become exceedingly successful. Now you want to expand your horizons. From a small business setup, you need to make an entry in the big market. For that, you need some finances. You need some people to invest in your venture.
So, what would be your marketing strategy, you need to explain thoroughly in this. You have to outline the requirements of your enterprise, any future funding needs, and how do you plan on using these funds?
This section shall also analyze your strategic financial situation plans in the future. After you have done explaining all these parameters, you need to outline the amount you need right now and the amount you need in the future.
It is the most crucial part of your business plan for hair extension.
Provide the appendix to your reader on demand. Your hair extension business plan shall also have some relevant documents. This section should not be included in the main body as it contains confidential information about your company.
The Appendix will include:
- Credit history (personal & business)
- Product pictures
- Letters of reference
- Details of market studies
- Relevant magazine articles or book references
- Legal documents
How to Make Your Hair Extension Business Plan Stand Out?
Your business plan will eventually stand out if you determine your target market and research the audience quite well.
For instance, is the market you serve the best one for your item or administration? Are the advantages of managing your business transparent and would they say they are lined up with client needs? In case you're uncertain about the responses to any of these inquiries, make a stride back and return to the establishment of your strategy for success.
The accompanying tips can help you elucidate what your hair extension business brings to the table, distinguish the real target showcase for it, and fabricate a specialty for yourself.
Be clear about what you have to offer
Beyond essential items or administrations, what are you truly offering?
Consider this simple case that will help you to understand the situation: Your town presumably has a few restaurants all offering one essential item—food. Each of these restaurants is focused on the needs of the customers. One may be a drive-through fast-food restaurant, maybe another offers pizza in an original Italian kitchen, and possibly there's an excellent restaurant that serves fish that and has practical experience in wood-flame broiled admission. Every one of these eateries offers food. However, they pitch them to focused demographic searching for the one of a kind qualities each brings to the table. What they are truly offering is a combination of product, esteem, atmosphere, and brand experience.
When starting a hair extension business, make sure to comprehend what makes your hair extensions one of a kind. What needs does your item or administration satisfy? Document the advantages and differentiators that will help your business emerge from the group? Your hair extension business plan must show all of these attributes.
Avoid being the jack of all trades
It's imperative to characterize what you're offering unmistakably. You would prefer to become a jack of all trades and master of none since this can negatively affect the business development. As a smaller businessman, it's regularly a superior strategy to divide your items or business into sensible market specialties.
Little operations can then offer particular products and ventures that are alluring to a private gathering of planned purchasers. Thus focus mostly on hair extensions when you are starting your business model of hair extension.
Identify your niche
Making a specialty for your business is basic to achievement. Frequently, entrepreneurs can distinguish a specialty given their market learning. However, it can likewise be useful to lead a market study with potential clients to reveal undiscovered necessities.
Enhancing Your Hair Extension Business Plan
Once you have successfully created a business plan for hair extensions, you cannot stop right there. You have to devise strategies to enhance your plan from time to time so that it may not die eventually. These enhancements are a critical thing to do because the market is always changing.
Say for the sake of an argument, that the hair extensions your company is offering were outshined by another company that is stronger and has a greater reach to the potential customers. Your business plan might have the solution to this problem, but you wrote it a while ago. The dynamics of the market, the balance, and the need for the product at that particular time were different.
So, with the evolution of the marketplace, enhancing your business plan is an excellent idea. At the end of the day, with the corrections and amendment to your working model, you will be able to create an ideal hair extension business plan. The benefits of which are already mentioned in the start of this article.
Business Plan SoftwareIf you have trouble writing a hair extension business plan, there is software you can use to create one. It has some benefits that can help you to perform all your tasks with no sweat.
Let the software do the calculations
With this software, your financial numbers and estimates will calculate when you plug in your numbers. The business Plan software gives you instant access to business planning calculations and an explanation of every financial term.
This software comes with video courses from experts that can help you to draft a perfect hair extension business plan.
These courses are specifically generated for small business ventures and have all the tips and tricks to help you draft the business plan that can help you in achieving your goals.
By following all these guidelines, we can ensure you that you can draft an ideal hair extension business plan. A program of activities provides that the organizational structure of your business is well developed.
It is always necessary if you wish to obtain financing, whether you are operating a new plan or want to seek a bank loan or venture capital.
You might need much investment in a hair extension venture, thus working hard on this plan can help you make a marketable draft which will bring you investments and profits. The chances of success of your business venture will significantly increase.
Don't hesitate to ask for help. Organizations like the Small Business Administration are available to help.
With your goals written on paper, you will have a clear idea of how well you are doing with this hair extension business and how far are you from achieving your goals. You will also have a detailed document on your organization's authoritative structure, insights about the responsibility for the organization, profiles of your administration group, and the capabilities of your governing body.
Thus in the future, you might not have to face any problems in distributing the workload and tasks to the people and they will have an idea of how things are done.
Private Label Extensions has helped launch hundreds of hair extension businesses. Always feel free to reach out to us for advice on getting started.
Lastly, even if it takes you days or weeks, you must focus on building a business plan for your hair extension. Once it is done, and the business is running, you’ll understand how well things are working.