If you plan to start a hair extensions business, it is good to estimate how much money you need. This will help you to decide to keep (or take) a part time job, or to find a sugar daddy or bank to borrow some funds. This post will help you to estimating start-up costs for your hair extensions business.
No universal method
Every business has its own specific cash needs at different stages of development. So, there is no universal method for estimating the start-up costs for your hair business. Some stores start on a small budget. While others may need considerable investments in inventory or equipment.
The first step to estimate the money you need is to have a clear idea about the kind of business you want. An automated hair store, 100% online. A combination of an off-line store annex salon and an online store? Or a salon with staff or without. There are many possibilities and the same number of possible start-up costs.
If you need to a building for your store or salon, you need to calculate the financing expenses or rent too.
What kind of expenses
The money you need, to start a hair business, is not only for the inventory, stationary and marketing expenses. You also need to take into account the costs of doing business for the first months. Some of these expenses will be one-time costs such as the fee for incorporating your business or the price of a sign for your building. Some will be ongoing costs, such as the cost of utilities, inventory, insurance, etc.
It’s smart to calculate on the conservative side, add some extra’ s for unforeseen. Surprises always pop up, for sure on the expense side of your business.
There are 2 separate categories: fixed and variable expenses. Fixed expenses include rent, utilities, administrative costs and insurance costs.
Variable expenses include:
shipping and packaging costs,
sales commissions, and
other costs associated with the direct sale of the hair.
The best way to calculate
The best way to calculate your start-up costs is to use a worksheet.
The all-in-one hair extensions business package includes the excel sheet to calculate your hair extensions business start-up expenses, and sales forecast. Plus much more to start a hair extensions business.