How to Write a Hair and Eyelash Extension Business Plan
The hair and eyelash extension industry has been growing at a rapid pace across the US in the last several years for so many different reasons. First, technological advances in the hair and eyelash extension industry are noteworthy.
Every day seemingly, there is a new technique for installing and caring for eyelashes or hair extensions. The ease-of-use and care drive more and more women as well as men to salons for these types of services.
In addition, hair extensions are not the sole domain of women anymore. An increasing number of men have been seeking out hair extensions due to a range of issues such as balding or just wanting longer hair. This activity alone has greatly expanded target markets for some hair and eyelash extension professionals.
As the demand for hair and eyelash extensions continues to grow, more and more hair and eyelash extension businesses will be entering the industry. To help business owners set a solid foundation for future growth, here are some tips and tricks to consider when writing a hair and eyelash extension business plan.
Executive Summary for a Hair and Eyelash Extension Business Plan.
The executive summary section for a hair and eyelash extension business plan should describe both the internal and external aspects of the business in short order. For example, when our business plan writer writes up a business plan for a hair and eye extension business, we literally cut-and-paste segments from the actual business plan into the summary. Next, we then remove nonessential information from the segment clipped. For example, for hair extension services, we may remove the different colors of hair offered by a business. In following this practice, not only is a business plan writer able to succinctly describe the service, but it also saves the details for the actual business plan.
Company Information and Location for a Hair and Eyelash Extension Business.
The company information section of a hair and eyelash extension business should lead off the section by briefly discussing the important aspects of the business. For example, our business plan writer will often introduce the name of the company, the legal business structure, summarize services, and competitive advantage all in the first paragraph. In following the structure, the business owner is able to capture the attention of the reader and give them a broad understanding of what your business will do and how it will do it before details are reduced. It’s almost a summary of the executive summary just focused on company information.
Product Description and Competitive Advantages for a Hair and Eyelash Extension Business
The product description section for this type of business should be quite extensive. In this section, hair and eyelash extension business owners should describe the types and colors of eyelashes and hair extensions offered by the business. Also, the business owner should also discuss why their hair extensions or eyelashes are better as compared to other businesses in the area. An example of this would be that hair extension installers have significant training or products used by the business are cutting edge. By establishing a differentiating factor in the section, the business owner is able to show readers a niche market opportunity.
Target Market for a Hair and Eyelash Extension Business
In the last several years, the target market for a hair and eyelash extension business was quite simple. It was women seeking to extend their eyelashes or have long hair. Due to recent technological changes, as well as social changes, the target market for this industry has expanded to include men of all ages. Not only is longhair for men coming back in style, but innovations and hair extensions have also helped aldermen avoid wearing whigs.
Industry research for a Hair and Eyelash Extension Business Plan
Industry research for that hair and eyelash extension industry may be a little bit difficult for some business owners. This is because third-party information gatherers often overlook this industry due to it being such a niche market. Fortunately, there are some reliable websites and businesses offering industry research for the hair and eyelash industry. BrandonGaille's website has excellent industry statistics available for use. For example, the site claims that in the next several years, the eyelash and hair extension industry should exceed $1.5 billion in annual sales. A second location that may offer reliable information would be found on Grandviewresearch. On the site, researchers have claimed that the eyelash extension industry alone is growing at approximately a 5.4% annual rate. This shows that the industry is growing at an above-average pace as compared to other hair styling or hair care industry segments.
Owner and Management Section of a Hair and Eyelash Extension Business Plan
The owner and management section of a hair and eyelash extension business should focus on the owner's education and work experience. Education is important because clients want to make sure eyelash and hair extension technicians have been trained adequately to ensure product longevity. Further, the experience is helpful for the simple fact that if a technician has been in the business long enough, this means that they must have a loyal following and others have appreciated the work involved.
Funding Request for a Hair and Eyelash Extension Business Plan
Starting up a hair and eyelash extension business almost always requires funding of some sort. For the most part, business owners may seek out investors or bank loans. Funding for a storefront operation could run upwards of $250,000 or more. However, some business owners choose to start small. These operators may work from home or even rent a booth from a hairstylist with a storefront already set up. Regardless of which startup Avenue a business owner chooses, make sure to have a vision as to where you want to take your hair extension in the eyelash extension business. Once his vision is written down, then drop steps needed and funding needed to achieve your vision.
Financials for a Daycare Hair and Eyelash Extension Plan.
When creating financials for the hair and eyelash extension business, make sure to first identify how much you want to charge for each service. Next, do some research and determine the cost for individual eyelash extensions and hair extensions. Once these costs are identified, then estimate the number of clients you wish to serve on a daily basis for both hair extensions as well as eyelash extensions. Once this information is gathered, then multiply each hair extension customer by the service price charged and subtract aligned variable costs with the service. Next, to the same process for eyelash extensions. Once this is complete, then add together the profits from both the hair extension as well as the eyelash extension. This sum would represent gross profits for your proposed organization.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author