Hair Extension Production Business Plan [Sample Template] - ProfitableVenture (2024)


Are you about starting a hair extension production business? If YES, here is a complete sample hair extension production business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a hair extension production business. We also took it further byanalyzing and drafting a sample hair extension marketing plan template backed up by actionable guerrilla marketing ideas for hair extension production businesses. So let’s proceed to the business planning section.

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 make a decision 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. This is why there is a sample hair extension production business plan prepared below. Below is the sample hair extension production business plan;

RELATED Hair Extension Selling Business Plan [Sample Template]

A Sample Hair Extension Production Business Plan Template

1. Industry Overview

According to a documentary aired on hair extensions, it was found that the reason why more people were wearing hair extensions was due to the fact that the extensions helped add volume and length to one’s hair and could also dramatically change one’s look. This is why customers are willing to spend several thousands of dollars at one spot, just so they could get a hair extension.

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 colors 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, 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 in order to add volume, to look glamorous and also 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 due to the fact that 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.

2. Executive Summary

Sashi Hair Extension LLC business is amongst the leading brands in the hair industry that is located in Las Vegas Blvd S, Las Vegas – Nevada, USA. Sashi Hair Extension LLC business deals with a large range of customers – commercial and private. We are in the business of offering our various customers premium grade and luxury hair extensions.

We are established to legally make profit in the United States of America 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.

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.

We have also designed our business structure in such a way that would be beneficial not only to our business but also to our customers as well.

To this effect, we have hired competent and experienced professionals who 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 have the finest customer service in the whole industry as our customer service executives are proficient at attending to complaints of customers promptly, and also replying inquiries and ensuring that customers get their orders. Our marketing and sales teams have perfected several penetration strategies aimed at getting new customers, whilst also ensuring that about 80% of loyal and old customers are retained and encouraged to refer more customers to us.

Sashi Hair Extension LLC is owned and run by Ms Lori Sashi, a professional in the hair industry and who has several professional hair styling certifications as well as proficiency certificates in hair extensions. Ms Sashi has 10 years of experience in the hair extension industry and this would be helpful in running this business.

3. Our Products and Services

At Sashi Hair Extensions LLC, we intend to give our customers – commercial and individual – a variety of options by giving them different premium grade and luxury hair extensions. We also intend to produce customized hair extensions for our partners and other large end commercial customers.

We know how important it is for us to create multiple sources of income especially if we intend to have a healthy bottom line as a company, which is why we intend to make profit not only from our main products – hair extensions – but also from other services and packages that we would be offering as well.

Our other sources of income will however be covered legally as under the permissible laws of the United States of America. Some of the products and services we intend to offer at Sashi Hair Extensions LLC include;

  • Sale of premium grade and luxury hair extensions for commercial and private customers
  • Training and consultancy services
  • Partnership deals
  • Franchises

4. Our Mission and Vision Statement

  • Our vision is to produce hair extensions that are of the highest quality with unique textures and designs that can be sold commercially to distributors and retailers as well as to private customers.
  • Our mission statement is to ensure that we source for our hair extensions using reliable suppliers, and also ensure that our hairs go through a high processing system so that our customers can get only the best from us.

Our Business Structure

Having the right business structure is very important to us at Sashi Hair Extension LLC, and it is for this purpose that we have put plans in place to ensure that we employ the right human resources into the right positions that will ensure that the vision, as well as the goals and objectives of our company are achieved.

We have designed an organizational chart that will ensure that every employee knows his or her place in the organization and knows who to report to when the need arises. This is so as to achieve an efficient work flow and make sure that productivity isn’t affected.

We intend to ensure that we recruit only competent hands that have the experience of working in the hair extension industry and will be able to help build our hair extension business to the level we want it in the industry. We have perfected the right welfare and compensation packages for our employees which are amongst the best in the industry. Listed below is the business structure that we intend to build at Sashi Hair Extension LLC;

  • Chief Executive Officer
  • Quality Assurance Manager
  • Human Resources and Admin Manager
  • Sales and Marketing Team
  • Accountant
  • Purchasing Manager
  • Store Manager
  • Delivery Driver
  • Customer Service Executives
  • Security Guard

5. Job Roles and Responsibilities

Chief Executive Officer

  • Drafts the overall strategic vision on how the company would be run
  • Meets and negotiates with high-powered customers on behalf of the company
  • Works with the accountant to draft an overall budget on behalf of the company

Quality Assurance Manager

  • Carries out checks on the processed hair to ensure that its quality is in line with the company’s vision
  • Works with the purchasing manager to ensure that reliable vendors for unprocessed hairs are correctly sourced
  • In charge of hair extension treatments and change of textures and colors

Human Resources and Admin Manager

  • Ensures that the company runs smoothly especially as regards Human Resources and administrative tasks
  • Responsible for sourcing and recruiting the right staff into Sashi Hair Extensions LLC
  • Ensures that employee appraisals are constantly carried out so as to enhance the productivity of the workers in the company.

Sales and Marketing Team

  • Creates effective marketing and sales strategies intended to attract as well as retain customers for Sashi Hair Extensions LLC
  • Develops and implements a workable marketing budget in line with the company’s policies
  • Helps to increase the sales of hair extensions


  • Helps in preparing financial statements – income statement, cash flows, balance sheet -on behalf of the company
  • Works with the CEO and purchasing manager to ensure that the proper budget is drafted in line with the vision of the organization
  • Helps prepare tax documents and submits same to tax officials at the appropriate time

Purchasing Manager

  • Responsible for sourcing for reliable vendors and placing orders on behalf of Sashi Hair Extension LLC
  • Ensures that all orders and contracts with vendors are properly negotiated, updated and reviewed on behalf of the company
  • Is updated constantly on market trends and uses the information to make correct analysis on behalf of the company

Store Manager

  • Ensures that all brands of the hair extensions are in stock
  • Reports products that are out of stock to the purchasing manager
  • Ensures that the store is well ventilated and secured always

Delivery Driver

  • Ensures that all hair extensions get to the right customers at the right time
  • Supervises the uploading and offloading of hair extensions from the van
  • Ensures that the van is well maintained and carries out light repairs when necessary

Customer Service Executives

  • Is properly informed about all the products and services that Sashi Hair Extensions deals with
  • Is responsible for ensuring that customers orders, inquiries and complaints are promptly attended to
  • Ensures that the database of customers is accurate and constantly updated

Security Guard

  • Responsible for ensuring that the premises is secured during and after working hours
  • Scrutinizes incoming and outgoing customers
  • Takes care of any security-related incident that might occur during work hours

6. SWOT Analysis

Producing the best premium grade hair extensions means we are committed to ensuring that our corporate foundation thrives on excellence.

Our drive for excellence enabled us to hire a reputable business consultant in Las Vegas to carry out a thorough and critical analysis of our business concept and inform us if we were on the right path of not only making profit but also competing fairly against our competitors in the same industry.

The business consultant whilst carrying out his analysis performed the critical SWOT (Strength, Weakness, Opportunity and threat) analysis and used that to analyze our chances in hair extension industry in Las Vegas – Nevada as well as the United States of America as a whole.

Below is the result of the SWOT analysis conducted on Sashi Hair Extension LLC business;

  • Strength;

Our strength is primarily in the fact that we are located in Las Vegas, 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 producing premium grade and luxury hair extensions, which will cater to all our classes of customers.

Also, our Chief Executive Officer, Lori Sashi has the required experience needed for the business to excel in this industry especially as she has worked in several hair extension production companies before deciding to start her own business.

  • Weakness;

Our location which is a huge advantage is also our weakness especially as there are other similar hair extension production companies which have been established here to take advantage of the market. However, having studied the market, we are positive that with our strategies on ground, we will be able to effectively combat this weakness.

  • Opportunities;

The opportunities available to us are unlimited as there is a huge thriving market on ground ready to patronize our products and the services we intend to offer. There are also a large number of celebrities and famous personalities looking to have their own hair brands and would be perfect business partners for us.

  • Threats;

The likely threat in this industry is likely to be the downturn of the economy. A poor economy will see a low patronage of hair extensions as most people will not readily want to purchase new extensions, preferring instead to continuously use their old ones.

Another threat is likely to be the entrance of similar competitors into the same location where we would be operating from. As a business, we expect threats and have plans in place to ensure that we overcome any threats.


  • Market Trends

The hair extension business has snowballed into a huge business, with more people – men and women using the extensions to achieve styles that could not otherwise be done by the natural hair. However, asides from the fashionable use, there are practical uses for hair extensions such as protecting the natural hair from constant styling and harsh hair chemicals.

Any entrepreneur who intends to get into this market must however study the trends so as to be able to identify where reliable vendors can be sourced so that customers can get the best quality hair extensions needed.

Because the hair extension business is one that has a huge market share, more hair extension producing businesses have entered into the industry, which has caused stiff competition as regards getting customers. In this regard, most of these businesses have resorted to using various strategies aimed at attracting all the different kinds of customers such as giving discounts to hair stylists since most people trust the opinions of their hair extensions.

Also, because of the huge positive impact of the internet, more hair extension business owners are running part of their businesses online especially as more people are beginning to shop online for most of their wants and needs. Also, the internet affords the hair extension business the opportunity to be able to reach a wide range of customers than would have been possible otherwise.

8. Our Target Market

There are a wide variety of people now using hair extensions, from people who want to cover a hair loss, to those who use it to change their looks and styles and for other fashionable purposes as well. The large target market has made it very easy for us in Las Vegas Blvd S – Las Vegas, Nevada.

Our market research was however conducted by a reputable business researcher and allowed us to gain insight into what the market expects from us and what we would expect from them. Due to the market research carried out, we are able to discern the commercial and private customers that would need our products;

  • Black women
  • Celebrities
  • Female senior citizens
  • Cancer patients
  • Movie actors and actresses
  • High classed personalities
  • Hair stylists
  • Tourists
  • Business people
  • fashion Designers
  • Hair Studios

Our Competitive Advantage

Our vision of producing the highest quality of hair extensions at Sashi Hair Extensions LLC is so as to achieve our aim of being industry leaders. Because the industry is one that is highly competitive, becoming industry leaders will mean us having strategies in place that will give us the needed competitive advantage over our competitors.

One of our top competitive advantages is in getting the right hands that are not only competent but have the required experience intended to make us industry leaders not only in Las Vegas but also in the United States of America as a whole.

Asides, ensuring that we have those who understand the industry working for us, we also intend to ensure that our customer service is the best that can be gotten in the industry, having an excellent customer service will mean that our customer retention rate is higher than that of our competitors; especially as customers stick with those who listen to their complaints and promptly attend to them.

Another competitive advantage we intend to deploy is in creating a unique website which we intend to use in interacting with our customers and also increase sales of our products whilst also effectively communicating our brand to our customers.

We intend to ensure that we always have stock in hand; this is so that our customers will not be forced to go to our competitors once they find that we do not have certain products in stock. Our stock will depend hugely on our research on popular as well as unique demands of our target market.

Finally, getting competent hands without having strategies in place that will keep these hands happy will amount to nothing.

Therefore, we intend to put the right welfare packages in place as well as ensure that our employees undergo training often enough that will not only enhance their skills and productivity levels but also place them above their peers in the same industry.


  • Sources of Income

Sashi Hair Extensions LLC is not only established to make profit from all our products and services in the United States of America, we will also ensure that we give our customers – commercial and individual – a wider variety of options as regards the products we intend to produce.

Sashi Hair Extensions LLC intends to generate income through the following sources:

  • Sale of premium grade and luxury hair extensions for commercial and private customers
  • Training and consultancy services
  • Partnership deals
  • Franchises

10. Sales Forecast

The hair extension industry is a growing industry that has huge demands that is growing each year, which means there will always b people who need to buy hair extensions for one reason or the other.

Our location in Las Vegas – Nevada has ensured that we are strategically positioned to meet the industry demands in the state and in the whole of the United States of America. Our location has also provided us with the optimism of meeting and exceeding our target in the first year of operations.

In carrying out a correct sales projection for Sashi Hair Extension LLC business, we hired a reputable business consultant that is proficient in projecting sales for our type of business.

Our business consultant carried out a critical analysis of our business and the chances we have in the business in comparison to similar businesses as well as start-ups in the area and was able to come up with a sales projection. Below was the sales projection gathered for Sashi Hair Extension LLC business based on our location and other perceived strengths:

  • First Fiscal Year-: $240,000
  • Second Fiscal Year-: $480,000
  • Third Fiscal Year-: $980,000

N.B: It should be noted that the above projections were based entirely on certain factors in the industry and on the assumption that certain other factors – such as a positive economy, lack of a serious competitor and our location – will remain unchanged.

Should there be any change in the factors that should remain unchanged; the projections might be affected positively or negatively.

  • Marketing Strategy and Sales Strategy

Marketing is an important tool that keeps businesses afloat. Any entrepreneur intending to start a business must be ready to create awareness for the business that will ensure that the business generates revenue and invariably makes profit.

However, marketing is an activity that needs to be well thought of before being deployed, which is why it is important that a market survey be carried out that will allow the right strategies to be drafted.

In drafting the right marketing strategies for Sashi Hair Extension LLC business that will not only make us stand out but also ensure we make enough revenue to keep us in business, we have hired business consultants who will work with our marketing and sales team to ensure that they draft strategies that are in line with our corporate policies.

One of the major tools that is used in marketing today is the internet. The internet has proved to be a force in not only getting a good market research on the target market but also as a means to retain existing customers while also attracting new ones to the company.

Our marketing and sales team will also come up with strategies that will ensure that we penetrate the market and reach new customers while also keeping the ones at hand. Asides, coming up with policies, they will also be empowered to ensure that they communicate our brand to our customers in the bid to generate income.

Some of the marketing and sales strategy that will be adopted by Sashi Hair Extension LLC business to sell its products and services include;

  • Direct marketing and sales
  • Attend and sponsor pageantries as well as fashion shows
  • 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.
  • Advertise in local newspapers and on radio and television stations
  • Attend trade fairs and local sales events so as to be close to our customers – both existing and potential.

11. Publicity and Advertising Strategy

Any business that is serious in making money in the hair industry knows how important publicity is regardless of its standing in the industry. Even though there will always be a huge demand for hair extensions, customers would still need to be wooed so that they could patronize your brand of hair extensions.

Since there is no industry without competitors, the essence of engaging in publicity and advertising strategies is so that your existing customers can easily identify with your brand, while potential customers might start considering patronizing you in place of your competitors.

This is why most businesses usually hire a publicity and advertising consultant especially ones who understand the business thoroughly as they would help draft effective strategies that would help boost our position in the hair industry.

Our publicity strategy is not only aimed at attracting customers so that they can help improve the bottom line of our company, it is also to ensure that our brand’s goals and objectives are effectively communicated to all our customers. Some of the strategies we intend to use in achieving publicity for Sashi hair Extension LLC include;

  • Providing incentives on some of our premium brands
  • Placing adverts for our hair extensions in beauty and fashion magazines
  • Sponsoring community fashion shows and pageantries
  • Attending trade fairs for networking purposes
  • Placing adverts on local newspapers, radio stations and on televisions
  • Placing our billboards in strategic locations in and around Las Vegas
  • Ensure that we distribute our uniquely designed handbills and fliers in target areas
  • Create a unique website and use the avenue to effectively market our products
  • Make use of our social media platforms – Facebook, Twitter, and Instagram to engage our existing and potential customers

12. Our Pricing Strategy

Setting a fair price for our hair extensions is dependent on so many factors such as our vendors, the price for way billing, several other operating costs and overhead costs. Our prices are very fair as we do not intend to charge our customers with exorbitant prices that will allow our customers have an edge over us.

Due to this fact, we intend to ensure that while we strive to produce quality hair extensions whose prices are at the same rate of that of our competitors.

However, to attract more customers to our hair extensions, we intend to set the prices on our products a bit lower than our competitors for the first few months. We also intend to ensure that we add a freebie to our hair extensions that way customers will want to buy our products than that of our competitors.

  • Payment Options

Due to the fact that we want our customers to have an easy time purchasing and paying for our products, we at Sashi Hair Extensions LLC have provided all our customers with different payment options that will make paying for our hair extensions and other services easier.

The different payment that will be made available to all our customers for all our various products and services include;

  • Cash payment
  • Payment via check
  • Payment via Point of Sale (POS) Machine
  • Payment via online portal
  • Payment via credit card

The different payment options were carefully chosen as the bank which we trust and use for operations are efficient on these platforms.

13. Startup Expenditure (Budget)

Starting a hair extension production can be expensive or cheap depending on your vision and scale of business. It is worthy to note that most of the capital is usually spent on start-up expenses such as leasing of facility and purchasing of inventory.

Also, because the business is not expected to generate profit at the first few months of operations, part of the capital is usually spent on paying the salaries of employees as well as used to settle utility bills. The major areas where we intend to spend the bulk of our capital on are;

  • Total incorporation fees for registering the business as well as other legalities in the United States of America – $1,000
  • Obtaining licenses and permits as well as accounting and software of POS machines – $1,500
  • Operational cost for the first six months (salaries of employees, payment of utility bills) – $50,000
  • Cost of start-up inventory (packaging materials, raw materials) – $50,000
  • Cost of hiring business consultants – $5,000
  • Cost of processing hair extension machines – $20,000
  • Cost of store equipment and hardware (racks, shelves) – $5,000
  • Cost of leasing a facility for at least a year – $50,000
  • Cost of purchasing hair extension distribution vehicle – $30,000
  • Cost of launching a website – $500
  • Insurance coverage (general liability, workers’ compensation) – $3,000
  • Marketing expenses as well as grand opening promotional expenses – $4,000
  • Cost of throwing our launching party – $5,000
  • Miscellaneous – $5,000

From the above report, it is obvious that we would need an estimate of $230,000 in order to successfully start and run our hair extension business in Las Vegas – Nevada. It should be noted that the above amount includes the facility which we intend to lease, the salaries of our employees and payment of utility bills for the first six months of operations.

Generating Funding / Startup Capital for Sashi Hair Extension Production Business

Sashi Hair Extension LLC is a business that is owned and run by Ms. Lori Sashi. Sashi is quite passionate about her business and hopes to see it be amongst the leading brands in the industry as well as the first option for all customers – commercial and individual. This is why she has decided to source for capital from these sources;

The areas which we intend to generate capita for are;

  • Capital generation from sale of personal stock
  • Sourcing of soft loans from wealthy friends
  • Applying for loan from the bank
  • Approaching a private investor

N.B: We are nearly done with this aspect as we have been able to generate the following amount from our sources; sale of personal stock $30,000; sourcing of soft loans from wealthy friends $40,000; applying for loan from the bank $100,000, and we have approached a private and willing investor, who having looked through our business plan has pledged to credit our account with $60,000. We are expecting the amount any moment from now.

14. Sustainability and Expansion Strategy

Every business knows how important it is to have strategies in place that would not only seek to sustain but expand the business as well.

We know that to ensure that we remain in business for a long time, we must have competent employees in place that thoroughly understand the goals and objectives of the business. Asides, our employees, we know how important it is for us to have loyal customers as they are the major lifeblood of any business.

Customers are what keep a business in operation, without customers a business will not take long before crumbling. This is why it is essential to ensure that our customers are kept happy and satisfied with our products and services. We intend to reward our loyal customers by giving them incentives for every referrals as well as one in a while discounts for every tenth time they purchase our products.

Without having the right staff in hand to keep our customers happy and also communicate our brand, we at Sashi Hair Extension LLC, intend to ensure that the welfare of our staff is well taken care of.

We intend to ensure that our employees are adequately trained to carry out their duties and also to ensure that their skills are enhanced so that they could carry out their tasks efficiently and also to increase their productivity at the workplace.

We will also ensure that while we carry our top management along in corporate culture strategic decision-making, they also adequately communicate same to the lower end staff. Ensuring that all the above factors are duly taken care of, will allow us achieve our intended dreams of being amongst the top leaders in the United States of America.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting feasibility studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
  • Purchase of trucks: Completed


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Hair Extension Production Business Plan [Sample Template] - ProfitableVenture (2024)


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