Hair Products Distributor Business Plan and SWOT Analysis

Hair Products Distributor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Hair Products Distributor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Hair Products Distributor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Hair products distributors are highly lucrative businesses provided that they have a number of strong relationships with salons, barber shops, and third-party retailers. The barriers to entry for this type of business are considered to be moderately low. The startup costs for launching operations typically range anywhere from $25,000 to $100,000 depending on the inventories that can be carried from the onset of operations. The gross margins generated from hair product sales generally range anywhere from 40% to 80% depending on the item being sold. The gross margins associated with the sale of wigs and human hair to be used as extensions typically carries slightly lower gross margins then typical hair care products. One of the nice things about this business is that they are able to generate both wholesale and retail sales. Many hair products distributors will have ongoing purchase order relationships with the aforementioned parties while also maintaining an expansive online presence to make sales of these products. Many consumers consider hair care products and related items to be absolute necessities. As such, these businesses tend to fare well during times of economic recession.

Given that these businesses are able to generate highly predictable purchase orders, most banks, lenders, and private funding sources are willing to put up the necessary capital in order to launch these types of operations. Usually, a financial institution is willing to put up 80% of the necessary capital provided that the owner or a third-party funding source can provide the 20% of capital that is generally needed for working capital and marketing purposes. Of course, any entrepreneur that is looking to start is that the business is going to need to have a hair products distributor business plan. This document should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page it is consistent with industry standards regarding a personal consumables product distribution businesses. Beyond the financial model, a in-depth analysis focusing on the demographic that are targeted by the company should be included as well. This includes an evaluation of median household income, median family income, the amount spent per month on hair care products, and the specific age range that will be targeted from the onset of operations. Given the level of competition within this industry, it is very important that an entrepreneur develop a laser focused demographic profile that will be used in conjunction with their marketing campaigns. Beyond information regarding demographics, a full competitive analysis should also be developed. Many companies, many of which are large corporations, carry and provide extensive inventories of hair care products. As such, it is going to be incumbent upon the entrepreneur to develop a competitive advantage allows a smaller business to thrive in this highly competitive field.

Once the business plan is complete, it is time to develop the hair products marketing plan. This is going to be one of the foremost document that is needed given that the owner is going to have to develop a very strong brand name for a smaller sized business. Many entrepreneurs will initially take to developing and expansive online presence given that the return on investment can be significant if this is carried out properly. Most importantly, the hair products distributor is going to need to have an expansive e-commerce website that showcases the entire inventory of the business. Many of these companies will frequently hire an in-house marketing manager that updates the website on a daily basis as new products required. This is especially true of the hair products should be there is going to specialize in human hair extensions. Giving the unique nature of these items, it is imperative that images are uploaded to the proprietary website to showcase these products to the general public. Beyond information regarding inventory, the website should also feature information about hair care product news, hours of operation, contact information, and other relevant information relating to hair care. Although not every article needs to discuss products that are being sold – information regarding personal hair care can help boost the visibility of the business via search engine optimization. Outside of the proprietary website, many hair care product distributors will focus significantly on maintaining a large presence on social media. This is important given that many specialized deals, discounts, and developments in the business can be sent out with merely the push of a button and will reach potentially thousands of followers. While it is expensive to develop a large following the online platform such as FaceBook and Twitter – the return on investment can be quite high. This is especially true if you have a dedicated following that frequently follows updates that are provided through the social media platforms.

A hair products distributor SWOT analysis should also be developed. As it relates the strengths, these businesses are able to generate moderate to high gross margins from each product carried in their inventories. Additionally, these companies are relatively immune from substantial negative changes in the economy. For weaknesses – there is a significant amount of competition within this industry and the hair products distributor is going to need to find ways to effectively brand their business while competing with much larger corporations. For opportunities, many companies will seek to acquire specialized inventories of hair extensions which are hard to find. Given the difficulty in obtaining the this product line – a smaller hair care products distributor can effectively compete provided they have access to a number of very good sources for human hair extensions. Additionally, many of these companies will seek to maintain relationships with local and regional beauty schools, barber shops, and hair salons that will frequently place orders on an ongoing basis. For threats, outside of the major competitive issues that are faced by these businesses there’s really nothing is going to overtly change the way that these companies conduct operations. Of course, there are always going to be trends within the industry that must be kept up with ultimately this is a highly mature industry and not much is going to change over the next 10 years.