The hair boutique business plan

business plan

1. Business Plan






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This business is solely made to give the overview About the unique
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2. Table of Contents
Executive Summary ..................................................................................................................... 3
General Company Description .................................................................................................... 4
Vision Statement ..................................................................................................................... 4
Mission Statement ................................................................................................................... 4
Goal and Plan........................................................................................................................... 4
Business Philosophy ................................................................................................................ 5
Company ownership ................................................................................................................ 5
Company Location and Scope ................................................................................................. 5
Product Description ..................................................................................................................... 5
Hair Extensions: ....................................................................................................................... 5
Brazilian hair extensions ...................................................................................................... 5
Peruvian hair extensions ..................................................................................................... 5
Indian hair extensions: ........................................................................................................ 6
Competitive Advantage(s) ....................................................................................................... 6
The Opportunity .......................................................................................................................... 6
Market Forecast ........................................................................................................................... 7
Market Segmentation & Target Market ................................................................................... 8
Customer Profile ...................................................................................................................... 8
Target market .......................................................................................................................... 8
Key Success Factors ................................................................................................................ 8
Marketing Plan ............................................................................................................................ 9
Competitors Analysis .............................................................................................................. 9
SWOT Analysis ..................................................................................................................... 10
Marketing Goals .................................................................................................................... 10
Marketing Campaign ............................................................................................................. 11
Sales Forecast ........................................................................................................................ 11
Financial Summary .................................................................................................................... 12
Start-up costs ............................................................................................................................. 12

3. Executive Summary

The hair boutique aims to establish strong customer relationship value by providing the
craziest trend of the United states. We provide various natural hair products ranging from
fizz free curl mousse to various olive oils to make hairs more acceptable for the
individuals.
We are established to legally make profit in the Houston, Texas as well as compete
favorably with other similar competitors in the industry. Our goal is to ensure that our
hair extensions are of the finest premium quality and that our vendors are trusted and
reliable.

4. Our different hair extensions are in place to suit the different tastes and preferences of
our wide range of customers. Our extensions have quality wefts sewn and have also been
waxed by keratin to ensure that our customers can use our hair extensions for as long as
possible.
To this effect, The Hair Boutique will hire competent and experienced professionals who
will have the required experience to ensure that our company is amongst the leading
industry brands. Also, our workers understand our vision and are willing to work to see
it come to fruition.
We will provide three main varieties of hair extensions i.e. Brazilian hair, Peruvian hair,
Indian hair along with natural hair products.
We are a brick and mortar store in the Houston providing the facilities online and also
store front in order to facilitate our customers to the best we can.

General Company Description

Vision Statement

Our vision is to provide high quality hair extensions with excellent and unique texture
and design. We also will provide natural hair products to variety of customers that can
be sold to customers.

Mission Statement

The hair boutique strives to establish strong supplier relationship for reliable hair
extension source and ensure that our hairs go through a high processing system in
order to reach high customer satisfaction.
Goal and Plan
 To recover costs within 2-3 years to reach break-even.
 To capture 40% of market share in Houston, Texas with uniqueness of services
with 1.5 years
 To provide High quality hair extensions according to customer choice with
appropriate length and width.
 Expanding my business to Dallas, TX, Oklahoma City Ok and Charlotte MI 3-4
years
 To provide online custom designs to our customers with desired facilities

5. Business Philosophy
Our business philosophy would rely on customer satisfaction and adapting to the
various trends in hair extensions industry. We would have the competitive edge over
other customers with the best of the most work.

Company ownership

The ownership of the company would be under Divine Vizionz, LLC
Company Location and Scope

Location plays a vital role in making a successful profit. We will open our hair
extensions store in Houston, Texas because it has more youth and growing trend of
hair extensions.


Product Description

Hair Extensions:

There are three main hair extensions that we will offer:
Brazilian hair extensions:
We will provide Brazilian hair extensions in wavy, straight or curly textures. We also
provide various packs which are suitable for the hairs of the customers
It will be provided in straight, kinky curl, body wave, and deep body wave versions
We will provide fullness and shimmering beauty Brazilian hair extension in darker hair
types that looks amazingly natural and exquisitely beautiful.
Peruvian hair extensions:
We also provide this in straight, kinky curl, body wave, and deep body wave versions.
This looks amazing blends well with normal African-American relaxed hair textures
and medium Caucasian hair texture.

6. Indian hair extensions:
It also comes in straight, wavy and curly, especially for natural wave and natural
straight. We will provide this product online and in store front.


Competitive Advantage(s)
 Best location for hair extensions
 Online website for custom orders
 Quality of services and special discounts
 Variety of natural hair products
 Best supplier relationship than competitors
 Best employees

The Opportunity
The hair extension business which has existed for a long time has only recently
grown into a tremendous one chiefly due to many factors, such as more women
especially African Americans needing to modify their hair styles or celebrities
needing to change the way they look.
Also, hair extensions have become popular for those who have lost their hair as
well senior citizens as well. If you are an entrepreneur that is looking to start the
hair extension business, then this is a very good business for you. However, while
the business might look lucrative, it would be wise for you to seek out a reputable
business consultant who has the required experience needed to help point your
business in the right direction.
The importance of a business consultant is that you will be supplied with hard facts
concerning the business you intend going into. The hard facts will then help you
decide on whether venturing into the business would be a wise idea or if you would
be wasting time and money.
Also, because this is a business that is intended to make profit, it would be
necessary to write out a business plan. A business plan is essential because it allows
you show investors and stakeholders how you intend to run your business.
Therefore, there is a sample hair extension production business plan prepared
below. Below is the sample hair extension production business plan.

7. Market Forecast

According to the documentary by ABC TV, the source for the hair extensions came
from the poorest part of the world, where those who usually shaved their hair had no
inkling of what their hair was being used for. Those that did sold their hair far less than
they should due to lack of proper representation.
China and India remain the major exporters of raw human hair, as most of the hair
exported in these countries comes from those with lower income brackets. China
exports more due to its larger population, and cultural traditions. In India however,
women donate their hair to the temple as part of a religious practice. The temple then
auctions the hair to hair factories, and the proceeds are then used to help the poor in the
community.
The untreated hair is then taken to processing facilities by these buyers, where wefts
are added as well as keratin through a wax application method. The hair is then
processed for colours and textures before being sold to middlemen or retailers.
The hair extensions are then sold in strands or in bulk to customers, who either buy it
and take it to their stylists or buy directly from the stylists themselves. Customers who
prefer a cheaper option usually buy from hair extension processing factories.
According to a research by Hairtrade.com, about 34% of women use hair extensions as
part of their regular beauty regime, while about 87% of women who used it, didn’t tell
anyone that they were wearing one. 76% of women stated that they wore hair
extensions to add volume, to look glamorous and to quickly change their styles.
The hair extension market is growing annually at a 40% increasing rate, with salons in
the United States increasing their demand by 28.5% in the past two years. The reason
for the boom asides from the celebrity factor is since new technologies for applying
these hair extensions have emerged for users.
The demand for hair extensions has increased especially as celebrities have now joined
the target market. Internationally, the United States of America are amongst the top
five exporters of hair extensions globally, with total export value worth more than $2
billion dollars. Asides being a major exporter, the United States of America are also a
major importer of hair extensions.

8. Market Segmentation & Target Market

Customer Profile

• Between the ages of 30 and 55

• Income levels of $25,000 to $40,000

• Female

• Typically employed part or full-time

• Looking for hair extension or natural hair products.

• Looking for reasonably priced services with a prominent level of luxury

• They like to be able to have all natural hair products and hair extensions

Target market

Our target market would range from people who have hair loss or people who want to make
themselves more stylish
 Black women
 Celebrities
 Female senior citizens
 Tourists
 Business people
 Fashion Designers
 Hair Studios
 Hair stylists


Key Success Factors

Following are some of the major factors, which contribute towards the success of the Hair
Boutique
 Different variety of hair extensions
 Ideal location for the business to flourish
 Custom orders from online as well as store front
 Growing trend of Brazilian, Peruvian and Indian hair extensions

9. Marketing Plan

Marketing has the potential to turn things for anyone who wants to be successful in any
business. This would be crucial for the success of our hair boutique. We would use
multiple marketing strategies to get things going with more customers attracted towards
us.

Online website:
The Company has already a website made for the promotion of the hair extensions and
would allow customers to get interacted related to various packs on hair extensions and
natural hair products.
Electronic communication
We will promote our business through extensive marketing campaign online on social
media such as Facebook, Twitter, Instagram and other social sites to improve customer
base for the business


Competitors Analysis

Lisha’s hair
extensions
Mari ari Hair Xpressions
Salon
Location 18091 Upper Bay
Rd.
Houston, TX 77058
Houston, TX
Online store
8949 Westheimer
Rd, Houston, TX
77063, USA
Services All type of hair
extensions and tools
used for it.
Online services
and beauty
products with hair
extensions
Hair extensions
and beauty
products
Pricing Strategy Fair price High price High price
Promotion Banners and word of
mouth
Online website Online website
and store front
Process
Type of Business Fashion and beauty Fashion and
beauty
Fashion and
beauty
Customer
orientation
Less customer
oriented
Medium medium

10. SWOT Analysis

Strengths:
Our core strength of the business is the location of Houston, Texas. The city that never
sleeps and has a high infusion of tourists and entertainers which leads to a high
demand for our hair extensions and the accompanying services. Our other strength lies
in the fact that we are providing variety of hair extensions along with natural hair
products.

Weaknesses:
Since, there are various other competitors present in the Houston that poses to be our
locations weakness too. However, we are confident that with our effective marketing
strategy we would overcome such things.
Opportunity:
There is huge and striving market for hair extensions that’s why having a lot of
competitors and salons still the demand remains high. We have the opportunity to get
over the market with different products.
Threats:
The most likely threat would be economic downturn which will harm people’s income
and making them to use old hair extensions rather than purchasing new one.
Another possible threat would be the entrance of new entrance of competitors.



Marketing Goals

 Capture 40%of the market during the year with effective techniques
 Reach to most of our target customers in 6 months of the start
 Make success in the competition of hair extensions products

11. Marketing Campaign

We will start promoting our hair extension products and natural hair products in our
own Amazon account created and with a website build to tell the customers about our
offerings. Further, we will also be using the techniques.
 Direct marketing and sales
 Advertise our hair extension business in fashion and lifestyle magazines
 Encourage our customers to refer us to others
 Ensure that our hair extension business is listed in online and offline directories
such as yellow pages
 Make use of our official website to promote and market our products and
services
 Leverage on our social media platforms such as Facebook, Twitter and
Instagram to connect with existing customers and connect with new potential
customers.

Sales Forecast

Description Equation Result

Market Area

Total population Houston, TX
From Stats
bureau of U.S. 2,296,224

Total number of households
From Stats
bureau of U.S. 814,599

Total number of households with the From PCensus 5780
income $25,000 to $40,000
Report, Stats bureau
of U.S.
Service use Market Survey 70%
Potential Customers 4,780 x 70/100 4046
Average annual expenditure for Market Survey $800
potential customer
Market potential 4046 x $800 $32,36,800
Similar Businesses Yellow Pages 3
Estimated share of the market $32,36,800/ (3+1) $809,200
Annual Sales forecast year 1 $809,200 x 30/100 $242,760

12. Financial Summary

Money Needed Source

Money Amount E or A Where the Amount

Needed for
Estimated
money will



or actual



come from




Start-up costs $40,000 E Personal Cash $15000


Working $10,000 E Expected Investment $25000

Capital CFDC Loan $5000



Other – Parents $5000


Total $50,000 Total $50,000



Start-up costs

Description Y/N Cost

Start-up costs

Salaries – pre-opening N

Staff Benefits (payroll expenses) N

Receptionist Desk Y $1495

Square Cash Register Bundle Y $449.95

Insurance N

Open sign Y $79.50

Furniture/Display Y

Advertising/Marketing N

Security mirror Y $39.95

Surveillance Dome Camera Y $24.95 x 2= $49.9

Land & Buildings N

Palo Base Unit - 4 Sections For 18
Glass & Wood Shelves Y $1165.00 x 2= $2330

Hair extensions Y $30,000

Store Counter Configuration w/ 16
Components, Cherry Finish &
Tempered Glass Shelves
Y $$1759.17

Miscellaneous costs $3796.53

Total (amount for example 1, Start-up Costs) $40,000

Working Capital (first month expenses)

Salaries Y $4200

Home delivery Y $350

13. Rent Y $1,000

Depreciation N

Total Loan Payments Y

Advertising/Marketing Y $750

Professional Fees N

Supplies Y $364

Payroll Expenses Y $722

Utilities Y $350

Subscriptions, professional fees/dues Y $50

Taxes Y $107

Repair and Maintenance Y $250

Owner Withdrawal Y $1200

Miscellaneous Expenses Y $657

Total (amount for example 1, Working Capital) $10,000