The start up cost for a hair extension business are the sum of all the things you need to buy, or services from third parties like a lawyer. Experience tells if you have a limited budget, people do not know how to invest spend their money. It is important to make a list of the start up cost and a plan how to finance these expenses. You can find a nice solution to pay for the start up cost at the end of this post.

What are the start up cost for hair extension business?

The first question is to understand what the start up cost for a hair extensions business consist of. Not all expenses are start up cost. To know what the start up cost for hair extension business are is very relevant. Because:

– You can not pay the start up cost for your hair store from the revenue you make from the sales

– Most start up cost are incidental, you will only pay once

– For fiscal purposes you might have to divide these expenses over the following years of operations. This will reduce your tax burden in years you make revenue by sales.

The cash flow template of the All-in-One Business Package has a complete overview of kind of expenses your will face when you start your hair business. Expenses to think of:

– Setup cost website/shop

– Legal advice incorporation

– Advertising before you launched your business

– Costs incurred when in search for a location

– All investments in fixed furniture you can not depreciate over time (one off)

– Design of Packaging

– Expenses of buying and testing hair

– Travel expenses for your search for the finest hair

– Market survey customers/ competition

What else you need to think of apart from the start up cost?

You need to organize the funding of your business in times you do not generate enough cash flow (income). To start you need to buy inventory (stock of hair), pay for the start up costs and purchase a computer, communication means (smartphone like iphone 11) furniture and office supplies.

You will only start receiving money if you sell hair extensions. This means you need to have or a loan, or savings or another job to pay for the expenses and being operational during the time you did not sell hair.

This means you need to use a cashflow estimation. This will tell you how long you can survive, or pay for the start up cost plus other expenses measured against the income you will receive from your sales.

List all the items you expect to pay for the next 12 months and estimate in what month you have to pay. Add the possible sales revenue for each month and the variance between the outgoing expenses and incoming revenue will tell you if you can survive long enough to get your business from the ground.

Solution if you lack the funds to start your business

If you do not have the capital to finance the start up cost for your hair extension business, consider this.

Organize hair extensions parties, invite friends and friends of friends to come and talk hair. This will not only help you to understand your market and client needs more better, it will also give you your first sales. These sales will help you to pay for your start up costs, how about that?