Hair Business Budget: How Much Does It Cost to Run a Hair Company?

Today, we’ll together beautiful mind our way to a realistic budget to start your hair business.

Many influencers might draw you a delightful picture of starting a hair business with zero budget to turn out it’s just affiliate marketing.

Supported by low-performance free AI tools you can hit the bottom of failure in no time.

So, I hope we will put together an actionable legitimate plan that has clear achievable goals to launch a hair business within a couple of weeks.

Get your Google sheet ready, and let’s start. 

Legal Expenses

To guarantee your hair business continuity, you need to legalize it.

The process mainly takes up to one week. And can easily be done remotely without standing in any lines and without the help of legal representatives.

We discussed it before in depth on our Hair Business Blueprint Channel.

The process includes:

Then you’re good to go, you can use a little CPA help to facilitate the dynamic.

But always make sure you separate your personal finances from your business finances in order to keep things clear enough to run.

Most of these expenses are one-time. So, with a $100-$200 budget, you can legalize your business for years.

Tech Expenses

As a beginning, don’t sign up for annual subscriptions, as you start your hair business you might want to tighten up the belt a little bit.

Start with monthly subscriptions and optimize from there.

The process includes:

You can start your business now!

By enhancing your product pictures, writing up marketing materials, and building social media channels to drive traffic. You can sell right away.

But if you’re serious about it, read further for more advanced options.

Optional Expenses

- Shopify email will cost around $10.

To automate the process between different funnels and build your lists.

Mainly because you would want to publish newsletters and organize new leads. So, it can be a huge help.

- Dropship Beauty at $20.

For your products, I recommend starting with hair dropshipping.

Wholesale is going to burden you with a costly inventory.

- Judge.me is around $15.

Why use a review app?

Because even with a single thoughtful review, you can sound a little less sketchy as a fresh brand.

- SMS campaigns for $30.

Unless you get a bigger subscriber base you won’t run them. It’s a little expensive monthly fee so use it when you settle down.

- Groove CRM System for $6.

Adding a CRM system will help you manage your customers when things get out of hand.

These are all monthly expenses but they’re essential to set up your hair business for success.

There are a handful of free marketing assets too, you can use, like blogging, Search Console, Google Analytics, Merchant Center, and social media channels.

You can pump organic traffic to your website by putting a consistent amount of effort into it.

The total is going to be around $120 monthly. So how much would you need to sell?

1-Year Financial Plan

After subtracting credit card processing fees of $10 you have to make $400 a month in sales.

With an average order value of $150, you can reach this number with approximately 3 transactions.

Ideally, you will need a traffic volume of 600 visitors at a conversion rate of 0.5% (because you’re a newbie) to get 3 customers.

Sponsoring via Google Ads can get you this traffic at $600, so, think about it.

Most customers need a new hair product every 6 weeks.

So those 3 customers will give you extra purchases.

When you achieve 12 purchases monthly at an amount of $1,800, we can confidently say you can profit $700 per month.

This sounds like success to me!

2-Years Financial Plan

Now, you can scale it up.

E-commerce is about fighting persistence to snowball your success.

You need to feed this baby. With more money and effort.

Your conversion rate will eventually go up to 1% which help you to double your sales all the way to $4,000 a month.

Only if you keep up doing what you’re doing while developing it.

Branding Expenses

After getting the most resilient hair business entrepreneur out there.

You need to be the most prestigious too.

So, invest in your hair extension branding.

Possibly the process will include:

But I’ll advise you to use Private Label Branding because with custom satin hair extension packaging bags, and custom bundle tags.

Your investment in hair business branding will help elevate the success of your brand.

You can undoubtedly style up your packaging, especially if you use Dropship Beauty.

You just order your customized design and before shipping out your products to the customers, we do our magic at the warehouse to ensure your personal touch.

Entrepreneurship Wisdom

Don’t get let down by the fact it might be a saturated market. Every good market is like that.

Just be consistent, be optimistic, because your work is the only thing that matters.