Human hair is a popular commodity because it is used in a variety of ways to create new hairstyles, cover bald spots, and produce wigs for glamour or costuming purposes. Whereas once human hair was mostly used to make wigs and toupees, it is now used in creative ways such as to make extensions and braids. Clients can range from people who enjoy experimenting with various hair styles to wigs and toupees made to cover baldness developing due to genetics or medical treatments like chemotherapy. The human hair business plan will need to identify the target market which may include people across the spectrum of needs. Human hair can be used in extensions, to make braids, to produce custom wigs for women, and to create hair pieces for men. Human hair is also used in specialty collector dolls, making this another possible market.
How to create the hair business plan?
This is a very specialized business, so the hair business plan will need to explain the training and skills the business owner possesses in terms of weaving skills, hair type recognition, and marketing a somewhat-sensitive product. Does the entrepreneur have training in hair wefting? Does the business owner possess skills in creating different hair textures, creating curl patterns, coloring hair, and so on? The human hair business plan will also discuss:
• Type of equipment needed including wefting machines and sewing machines
• All services offered and schedule of prices
• Additional products sold to human hair businesses or customers, including hair dyes, wefting machines, bonding glues, needles, etc.
• Brand that will be created, i.e. works with all types of hair to make top quality products, only sell 100 percent Remy hair, etc.
• Where business will be located, i.e. brick-and-mortar store, shopping or strip mall, beauty salon, etc.
• Target market
• Marketing strategies that may include website marketing, direct selling, print advertising, attending trade shows, etc; if also selling hair systems for customers who lost hair for medical reasons, marketing can be directed to hospitals, cancer clinics and nonprofits
• The online and offline competition
• Wholesale suppliers of the human hair
• Five-year proforma and breakeven analysis
Human hair must be stored in the right temperature and light conditions. Depending on the size of the business, there might be a need for a warehouse with proper ventilation and lighting. The amount of funding needed for startup or expansion will depend on the size of the business. Many human hair businesses start small and slowly grow because the business owner is transitioning from being an employee to being an entrepreneur.
OGS Capital (https://www.ogscapital.com/) works closely with small and large business startups to ensure a top quality business plan is developed. Contacting OGS Capital is as easy as completing the online form.
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