When just starting out, it’s kind of tough determining what number of bundles you should start with. Well I’ve put together 4 different categories for Investors. Hope it helps: )
How Do You Plan on Entering the Industry?
Here are some things to think about when starting your Hair Business. Do you want to provide Quality or the Norm? How much will you start with? Which method of entry should you take? While it’s all based on your budget and what you want to accomplish, you can achieve ANY goal you set for yourself. Just think, I started off wearing the hair as a stylist and then selling to my clients. But after a while, other stylists and people heard about the hair I provided and started sending their clients to me to purchase retail, and as I got more and more “outside” clients, I had to cater to that portion of my life making it easier to sell to the public. This is when I got a Store Front.
Knowing the customer base that you will target is very important! You must know who your audience is so you know how to market, brand, and attract them to your company.
Opening a hair store can cost from $15,000 on up and it gives you the opportunity to sell your hair to the public, (I suggest starting with at least 100 bundles) and a 400sq foot location if at all possible. I feel it’s the best way to do business, especially if you are new to the business because it allows your customer to meet you and see, touch, and smell the product before they purchase, which eliminates all reasons for a refund. A No Refunds should be posted in plain sight and clearly written on receipts. Having a Store Front also allows you to build a personal relationship with your clients by having fun with them while trying on different textures of your hair, they love this and it normally guarantees a sell! Store fronts normally take 1 year to get a steady flow of clientele depending on your location and your marketing efforts.
When I had my Store Front locations, I did not advertise at all, it was all word of mouth, so you don’t have to put a tremendous amount into advertising. Location is key. Look for a high foot traffic area, along with good parking and great signage, and you should be just fine. Now if you have the budget, I would suggest Radio advertising because it works very quickly! PLEASE make sure NOT to put more money into the aesthetics of your StoreFront than you have in inventory. While we want our place of business to be attractive to our potential clients, we do not want to go overboard. Remember, people aren’t buying your beautiful chandelier, they are buying your beautiful hair, you can always upgrade when you start making money.
The downside is security issues with all the break ins and robberies. However, before launching your new business, do your homework and understand the requirements for opening a hair store.
Below is just a few things to consider before you even open your doors.
Lease the ideal commercial space (LOCATION is everything)
- Renovation/Build-Out Licensure
- Lighting Office
- Point of Sale Systems
- Hair Inventory
- Cleaning Supplies
- Store Display/Fixtures
Of course everyone has to have a website, even if it’s just informational, (which is easy to set up yourself through HostGator’s Weebly app)... An Online business is essential because once you build a clientele, they will trust you and the site helps you to streamline your ordering process. It can cost from$1500-$10,000 depending on how elaborate your website is and how much inventory you start with. It definitely makes doing business easier, and getting paid while you sleep doesn’t hurt either. This way is a bit more difficult to start if you don’t have a clientele because at this point, you are like “everybody else”.
It’s going to take time, a marketing budget and knowledge about online marketing to make this happen. There are some downfalls though when dealing online which include, NOT knowing that particular customer who purchases from you and then does a chargeback or claims fraud or, sending out your product and the shipping carrier loses it, resulting in you paying twice for a product. Make sure to add insurance on all of your packages. Check out the Bonus Section for Chargeback Information.
As I always say, Stylist are in the Best Possible Position because they don’t have to look for clients, they come to them, how easy is that! Stylist can make so much money selling hair it’s ridiculous. However, as a stylist myself, I totally understand why most stylist don’t carry their own hair for their clients. It’s because they don’t want to be responsible if something goes wrong with the hair they sold their client. They would have to replace the hair and do the weave over again, so most opt out of selling. This is the very reason that I’m in business now. I want to make sure that stylist can make the additional money selling hair by providing them with a Righteous product that they know is guaranteed and can feel confident in applying.
It’s very easy for stylist to start their business without investing early on by taking orders, getting deposits, then when the hair comes, booking the weave. When taking deposits, have the client put down 50%, (which should be the price you pay for the hair), and the balance when the hair arrives. The only down fall to this approach is having a nagging client asking you where’s their hair. You must let them know that its coming directly from India and there’s a 2 week wait time. Make sure not to book their appointment until I notify you that your order has arrived in the USA, and at that point, you know you will be getting it 2 days. That being said, it is best to have at least 10 bundles of hair on hand so you won’t have to deal with delays, clients see exactly what they’ll be purchasing, and you can make money immediately.
Starting as a distributor to me is simple but requires a lot of making moves! I really enjoy this way because it allows you to go out, see what’s happening in the salons in your area, and building a relationship with stylist. This approach requires you to have business cards or flyers, hair on hand, a car and soon a website so once you build a relationship, you’d no longer have to travel. I suggest starting with at least 30 bundles, but only carrying 10 when visiting salons. After all of the hard work that you physically put in going door to door and delivering to them, you will eventually want to get a Store Front because the stylist will start directing their clients to go to your shop and purchase their own hair. This is the quickest way to organically build your business. It’s hard work, but it works!
Insert distributor video here
I personally got in my car and just rolled up to salons and asked if I could show them hair. Its courteous to try speaking with the owner first to see if you can show it around of if they’d be interested in carrying your product, (this is where you would wholesale to them). Have your list of stylist pricing and wholesale pricing as well. But just in case you’re not comfortable with just walking in, here is a Phone Script that you can use to schedule appointments.