Some Key Facts to Start a Wig Store

I found some key facts that will help to start a successful wig store. For people who want to set foot in wig business, please read them now!

People wear wigs for all sorts of reasons – hair loss, thinning hair, costumes, and unhappiness with their natural hair. 

Lady Gaga even has her own wig maker, and many wigs are styled after hers.

Unice is the most famous and popular wig brand from China.

Trends and challenges

Trends in the wig industry include:

  • Wigs with bangs and long straight hair are trending, as well as colored wigs in blue and orange. Demand for lace front wigs is also increasing.
  • Natural hair clip-on extensions and wigs with accessories like headbands are growing in popularity.

Challenges in the wig industry include:

  • Most human hair and synthetic hair for wigs are imported from China, which can take time and delay wig delivery to the customer. The pandemic has also caused further supply-chain delays.
  • Some negative media coverage has exposed the possible unethical sourcing of hair against the will of people in developing countries, making responsible sourcing important.

Demand hotspots

Since a wig store is a form of hairstylist, these statistics reflect the best states for stylists.

  • Most popular states – The most popular states for hairstylists are Wisconsin, West Virginia, and Michigan.
  • Least popular states – The least popular states for hairstylists are New Mexico, Georgia, and Maryland.

What kind of people work in Wigs?

  • Gender – 76.8% of hairstylists are female, while 19.4% are male.
  • Average level of education – The average hairstylist is high school educated.
  • Average age – The average hairstylist in the US is 39.9 years old.

How much does it cost to start a wig business?

Startup costs for a wig store range from $3,500 for an online store to $15,000 for a brick-and-mortar store. Costs include store rental and inventory.

How much can you earn from a wig store business?

The average basic synthetic wig costs about $80. Human hair wigs cost $200 or more. Custom-made wigs can cost $400 or more. These calculations will assume that your average sale will be $150. If you’re selling online, your profit margin should be about 50% after your costs to buy or make the wigs.

In your first year or two, you could work from home and sell 15 wigs per week, bringing in nearly $120,000 in annual revenue. This would mean almost $60,000 in profit, assuming that 50% margin. As your brand gains recognition, sales could climb to 60 wigs per week. At this stage, you’d rent retail space and hire staff, reducing your profit margin to around 20%. With annual revenue of nearly $470,000, you’d make a tidy profit of $94,000.

What? Determine your products or services

You’ll need to determine what kinds of wigs you want to offer. Products might include:

  • Hair extensions
  • Human hair wigs
  • Synthetic wigs
  • Lace wigs or lace front wigs
  • Hairpieces
  • Custom wigs
  • Medical wigs

How much should you charge for wigs?

Wig prices vary based on the type of wig and materials involved. Synthetic wigs range from $40 to $120. Human hair and custom wigs run from $200 all the way up to $2,000. You should try to markup your products from wholesale prices by about 100%, and aim for a margin of about 50%.

Who? Identify your target market

Your target market will be broad and could be men or women, young and old. You should spread out your marketing to include TikTok, Instagram, and Facebook.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront.

Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “wigs” or “custom wigs”, boosts SEO
  • Name should allow for expansion, for ex: “Jim’s Bakery” over “Jim’s Cookies”
  • Avoid location-based names that might hinder future expansion

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
  • Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
  • Product and Services: Describe your offerings in detail.
  • Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
  • Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
  • Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
  • Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
  • Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
  • Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
  • Appendix: Include any additional financial or business-related documents.

article source: stepbystepbusiness

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