How to Start a Hair Business With No Money (25 Epic Ways & Tips)

You will surely learn how to start a hair business with no money by reading this very helpful and comprehensive article.

It reveals very powerful ways and tips for starting a hair business even if you don’t have a lot of money.

 

Importance

If you were to approach a typical person on the street and ask about people that were noted for or have famous hairdos, you would receive a variety of answers.

Some of those individuals of notoriety who had significant hairdos might include:

• Farrah Fawcett
• Sampson
• Diana Ross
• Lady Godiva
• Jason Momoa
• Julia Roberts

For many, hair is important not only as it relates to their profession or careers that they are involved with but just as a personal item in the grooming and caring for their hair on a daily basis.

In addition to individuals washing their hair on a regular basis and having their hair cut or trimmed there are other ways that an individual can care for themselves with hair grooming products.

Some of those hair grooming and products include:

• Conditioner
• Utilizing highlight products
• Print types of combs and brushes
• Extensions
• Wigs
• Coloring products
• And so forth

The healthcare industry is big business and if wishing to be involved in this multibillion-dollar industry there are ways that you can start and succeed with a hair business venture and begin the process with having no money available.

 

25 Best Ways & Tips to Help You Start a Hair Business With No Money

 

1. Hair Plan

The beginning of any successful journey or activity starts with a plan of action.

Starting a business in the hair industry is no different and a business plan needs to be devised.

A business plan is comprised of many components and not only outlines how the business will be formulated but how the success of the business will be accomplished.

Components of the business plan include:

• Executive summary
• Market analysis
• SWOT (strengths, weaknesses, opportunities, and threats)
• Budget
• Marketing plan
• Staff members needed
• And so forth

The business plan is your roadmap to success and will often be asked for if looking for finances or people to invest in your enterprise.

 

2. Legal Steps

When formulating a business there are a number of legal steps that need to be taken.

One of those particular legal considerations is the formulating of your business and what legal model it will operate under.

Legal models include:

• Sole proprietorship
• Limited liability company
• SCorp
• And more

The documentation needed to file with your state that you choose needs to be a binding document and can be composed with the help of a lawyer or utilizing a reputable online legal website such as www.LegalZoom.com.

The purpose of the chosen legal model for your company will determine how your taxes are filed, reports needed to submit, etc.

Therefore, it is important to do your research on what legal structure you wish to choose and matches your goal and objectives for your company

Other legal matters include choosing a name that is particular for your company, filing for an employee identification number, requesting various permits and licenses, etc.

 

3. Finding a Supplier

When starting a hair business, depending upon the scope of your operation, you will need a vendor who will supply the various products required to serve your customers.

You may have a vendor in mind for your hair business due to your recent experience or you may choose to locate a new vendor, or you may wish to spread your business needs across a variety of providers of hair business products.

If you will be offering hair extensions, lace wigs, or other hair-related products it is important to ask specific questions of the various vendors that you may be considering as a supplier.

If as part of your hair business, you are selling wigs or extensions it is important to know from your vendor how this hair is collected and processed.

Specifically, the questions that should be asked include:

• How the hair is blended
• Fabricated
• And sanitized

Also, it is important to know if the hair is synthetic or is manufactured from human hair.

Also, it is important that when finding a supplier, you asked the critical questions of time to reach your store once ordered, their return policy, any restocking fees, etc.

 

4. Fees

As part of your budget process for your business, it is important to know what your fees will be for the various services that you offer.

You need to strike a balance.

If you are overpriced customers will go elsewhere and if you don’t charge enough money, you will not be able to meet your expenses and generate a profit.

Therefore, to determine the fees that you charge, you should know what the various expense line items will be.

Salaries, occupancy, utility costs, the actual cost of products, etc. should all flow into what the fees will be in conducting your business.

Once it has been established as to what the cost will be on the expense side of the ledger, it would be beneficial to add in what your desired profit will be in running the business.

Business profit can range anywhere from 15% to 25% over your cost.

 

5. Hair Product

As it relates to stocking your business with wigs, hair extensions, etc. there are two types of materials utilized to create these hairpieces.

One type is human hair and the other type is synthetic care.

The start-up hair business can concentrate on one specific product or decide to expand its product line to all types of hair products.

Additionally, the decision to carry associated products needs to be made.

Those products could include wig grips, glue, lace spray, etc.

 

6. Hair Strategy

It is important to remember that just because you are opening a business that it is no guarantee that customers will flock to purchase your product.

Therefore, a marketing strategy needs to be developed.

In other words, how are you going to let people know of your business, what you offer, and how will you attract those customers and new customers to keep your business profitable?

A marketing strategy can include advertising through printed media, posting flyers or posters in beauty salons, beauty schools, etc.

The important thing to remember is to be smart and laser-focused when marketing.

One excellent way of possibly increasing the clientele for your hair business is to wear some of your products.

When individuals comment on how beautiful your hair looks, it will provide an optimum opportunity to market your business.

Also See: Best Marketplace to Make Money Selling Your Hair Online.

 

7. Hair Location

One of the critical decisions and actions that need to be taken when starting a hair business is the location of your enterprise.

The three-word mantra when investigating where your business will be set up includes location, location, and location.

Two critical components of selecting a location include visibility and customer foot track

You could work with a realtor and use their professional experience to find the location, or you could investigate on your own and for a set period of time observe the traffic foot traffic in the area and the potential of individuals finding your place of business and shopping or using your hair providing service.

Also, you want to make sure that it has the necessary features required to conduct your business such as easy access to water, electricity, etc.

By having a business that is almost business ready it will cut back on your costs of needing to make any renovations.

 

8. Hair Analysis

Another important preliminary action step that should be taken is to do a market analysis of your community and the particular area that you will provide your hair business service.

The goal of the analysis is to focus in on the need for your products that you will be delivering to your hair business customers and to ensure that there is a demand for the services that you are going to be providing.

Another important component of the hair analysis effort is to evaluate your competition and make sure that you will be competitive and obtain the customer support that you need to start and succeed your business venture.

 

9. Hair Associations

As you begin your journey of starting your business venture it is important that you connect with others or ensure that you do considerable networking in your community.

One of the powerful ways of networking is to connect with other business owners in your community.

One of the ways that you can do this is to join a service club or organization that meets on a regular basis with the intent of supporting one another and giving back to the community.

Some of those organizations include:

• Altrusa
• Soroptimist
• Kiwanis
• Rotary
• Lions club
• And so forth

At these meetings you are given an opportunity, upon initial membership, to share about your business and then during the course of your involvement in the meetings will connect with others who will not only talk about their business but usually the opportunity to share about yours.

 

10. Social Media

When marketing your business upon its inauguration and continual business operations it is important to fully utilize social media platforms.

You can use social media platforms to discuss various new and innovative ideas and services surrounding the hair business and particularly highlight your own business.

The social media platforms would include Twitter, Instagram, Facebook, and so forth:

It is also important to have a presence on the web by having a website created to showcase your business.

There are many sites that will provide you with a URL and help you in building your site or you can engage a webmaster company that will create the site for you.

One such site that will help you build your website is Godaddy.com.

 

11. Hair Grand Opening

Once your business is ready to go live, a great way of initially drawing customers and advertising your business as open to the public is to have a grand opening.

For a nominal fee you can make it festive looking by decorating the location with balloons and streamers, engage a clown like character that can do face painting for the children, have lucky drawings for individuals who attend that will give away hair products, and so forth

 

12. Franchise

A possibility of starting a hair business is by engaging in a franchise.

There are a number of advantages to investing in a franchise.

Some of those advantages include:

• Franchise support
• Their business plan template

Also, there are franchises that you may utilize other people’s money to start.

Some of the franchises include:

• My Salon Suite
• Rooster Men’s Grooming Center
• Cost Cutters
• Great Clips
• And others

This may prove difficult having no money for investment but there’s always the possibility of friends and family investing in your adventure.

 

13. Buy Existing

Another possibility of entering into the hair business without any money is to buy an existing hair business operation.

You could come to an agreement with the owner of the facility and agree to pay a fixed payment each month.

This agreement can be reflected in a binding contract that outlines the terms.

When considering the purchase of an existing business, it is important to understand the reasons or rationale as to why the business is being sold.

Also ask for:

• The audited businesses financials
• Make sure there are no liens or tax implications with the property or business
• And other questions that need to be answered

 

14. Build Your Own

An option to start and succeed at a hair business would be to build your own business based on your own specifications.

This would require a number of steps to make the building happen which would include the use of the architect, getting bids from construction firms, hiring a construction company, etc.

Overall, this would be an expensive venture but is certainly a consideration if you can gather together the financial resources.

Also See: How to Start a Food Business With No Money.

 

15. Licensing & Permits

A fire sale opportunity is a situation in which there has been devastating circumstance within the store.

The owners of the store may choose to call it quits and sell the property at a reduced cost.

Therefore, there is an opportunity to receive a store with certain assets that have been reduced because the individual or owner just wants to walk away.

Often, another opportunity that may present itself is that the business is not doing well because perhaps it is poorly managed.

If you have the management business skills, you can take over the property and turn business around and often get that property at a reduced cost because the owner just simply wants to get out of the business.

 

16. Owner Financing

If the current owner of the hair business wishes to sell their business, do a variety of reasons, they could possibly work with you on a one-to-one basis rather than going through all of the other legal paperwork in the transfer of ownership of the business.

If they are willing to work with you there’s a possibility that you may not need to approach a financial institution for startup money.

A variety of reasons as to why an owner wishes to get out from the business could include:

• Retirement
• May be the owner is a relative or friend
• Appreciate you and your commitment to continuing on with the success of their business
• Other reasons

In addition, when looking for funding, there are a variety of financial reports and documents that are reviewed by the financial institution.

Perhaps, due to a number of reasons you may not be able to qualify for a loan.

Some of those reasons could include:

• Poor credit rating
• Bankruptcies
• No collateral
• Etc.

The possibility may exist that you could work with the current business owner and enter into a legal contract in which the terms of the contract would spell out all of the normal loan elements which would include, interest rate, purchase price, number of payments to be made, the amount of the payments, and so forth.

 

17. Let’s Make a Deal

Another purchase option in which you can work with the owner of the hair business is the ability to tie payments to the success of the hair business.

The value of dealing directly with the current hair business owner is that there could be monetary benefits for both them and you.

Specifically, the terms of this contract would call for a certain amount of money that is paid on a regular basis to the selling hair business owner and is in direct to the successful operation of the

This option could have monetary business when certain performance or financial attainments or benchmarks are reached.

This type of business arrangement is known as an earn-out process or agreement.

Some of the details of this agreement include the seller of the hair business receiving payments that are directly tied to the earnings of the business.

A fair market value is assessed for the business and would reflect the total amount that needs to be paid to receive ownership.

When the agreement is duly signed payments in an amount in a set schedule would then be listed until the payment in full is realized.

The added dimension to this type of ownership process is that the payments are tied to the profits that the company earns under the new management and would be in direct proportion to the amount of payment required on a regular basis.

Therefore, if profits are good, payouts occur more frequently, and the lump sum payoff goes quicker.

Of course, the reverse would be true.

 

18. Strength in Numbers

An opportunity that may present itself is the presentation of a hair business to individuals who would be willing to invest in your idea.

Possibilities of investors could include friends and family, an angel investor, use of Crowdfunding, etc.

When investors choose to invest in your idea and are comfortable with your business plan and have confidence in your business ability to be successful, they will invest money with a promise of a return on their invested dollars.

 

19. Research Loan Companies

An opportunity that may present itself in obtaining the needed money to start your hair business would be that if you purchase an existing company there may be assets that are involved in the purchase.

These assets can be leveraged as collateral in asking for a loan that represents the money that is needed.

Even if the assets that are contained in the business that you are purchasing are still being purchased through credit these items still can be used to leverage money owed if there is a default on any payments of the loan.

 

20. Unsecured Loan

An option that may present itself in obtaining the needed money to start your hair business is by obtaining a loan that is not secured with any assets or collateral.

This type of loan is provided by a lender and is classified as an unsecured loan.

In essence, the loan is given to the individual based on their personal credit history and good standing as it relates to handling credit responsibly.

To possibly obtain an unsecured loan you would need a credit rating of at least 690 or above, have minimal credit inquiries on your credit report and that credit that you have available is underutilized and well below 50%.

 

21. Partnerships

Obtaining partners would be another way of purchasing a hair business with no money.

You could approach individuals and have them experience and realize your passion for the hair business but the only thing that is holding you back is capital.

By utilizing your passion and a sales pitch you could obtain partners that would provide the needed money for the startup and the value that you would bring to the business relationship is your business acumen, well-thought-out business plan, and confidence needed to make the business succeed.

Investors are always looking for an opportunity to have a quality return on their money and this could be a strong disability for their consideration.

A term of the agreement would need to be signed and the possibilities of the elements of that agreement could include:

• Ownership of the company
• Percentage of profits
• Payment amounts made to the investor

The agreed-upon percentage of the ownership for all of the partners, and so forth important consideration would be that everybody would stay in their lane

 

22. Will Work to Own

Another possibility that may present itself to purchasing a hair business without any money is the option of working for the company with the intent of owning.

This is a win-win situation for all involved as the current owner has appreciated his or her working relationship with you and sees that you have the capability of being the owner and knows that the business will continue to thrive under your leadership.

In addition, they will be paid for the business

For example, if you work at a hair business and have been a loyal employee and invested yourself in the business the possibility of working to own is a opportunity that may present itself.

This could happen if the current owner is close to retirement and wishes to leave the business operational and in the hands and management skills of someone who will continue providing the same level of service to the customers.

The possibility of working to own can be realized through an agreement that is signed by all parties involved in which a certain amount of your income is put towards the purchase or a significant share of the company’s ownership and when the appropriate time comes, as it relates to the terms of the contract, then the ownership may be transferred with continuing payments still being made.

This would be a good situation for all involved as the current owner would leave the business in the hands of a capable and trusted individual and would continue to receive money till the terms of the contract were satisfied.

For you as an individual wishing to work to own this would be a considerable incentive to continue on with the company, invest in yourself and realize that this investment is part of the ownership process.

 

23. Leverage Buyout

An opportunity that may present itself to purchasing her business without investment money is through what is known as a leveraged buyout.

A leveraged buyout is when the new business owner can utilize the assets in the business as collateral.

Within the existing hair business there would be inventory, equipment, etc. that can be assessed a fair market value and utilized as leverage against money that you may wish to borrow.

With a leverage buyout there is one significant caveat that would need to be satisfied.

That caveat is that the selling price for the company and its assets must be of greater value than the entire value of the assets that you want to leverage for the loan.

 

24. Other Assets

You may not have assets that are liquid and can be used as collateral to obtain a loan to purchase a hair business but there are other assets that you may own and can be utilized as collateral.

Other assets would include a coin collection, precious metals, a vehicle, artwork, a home, etc.

The financial institution considering your request may take into account these items as collateral and provide you with the money needed to buy the hair business.

The items do not need to be sold but the terms of the loan would include a listing of collateral items with the terms of the loan being upon default the items will become the property of the creditor.

 

25. Small Business Loans

There are many lending programs for small businesses to help the enterprising entrepreneur begin their successful startup of a business.

One of the opportunities through the small business Association is a program known as the micro loan program.

If successful at obtaining one of these loans the money is granted to you towards the purchase or a down payment of a small business that you wish to operate.

There are a variety of different levels of funding available as these monies have been provided by a variety of partners who have contributed to a pool of money from their financial resources to help other entrepreneurs.

To learn more about this program you can go to <https//www.sba.gov/funding-programs/loans/microloans>.

 

Personal Story 

During the recent pandemic one of the restrictions that was implemented and encouraged by a number of communities was to not go out and be involved in various services that typically the individual needed to have done on a regular basis.

One of those services was getting a haircut.

Unable to go out for a while, I decided to invest in a razor and cut my own hair.

It was very awkward at first as it was difficult to get a full view of what was going on especially with the back of my head as well as trimming the neckline as it tapered into the back.

I would study various YouTube presentations but unfortunately, made quite a few mistakes.

However, the reality of not having to go out with a terrible looking haircut proved to be beneficial for my pride and my appearance.

One of the unique tips that I learned that proved to be effective was using a ball cap and placing it on my head which allow for the trimming of my back hairline.

Despite all of this, my personal preference is to have a professional stylist do my hair rather than leaving some areas of the hair longer than others or having to worry about creating a bald spot.

 

Starting a Hair Business Without Money FAQs

 

What is the Market Size of the Hair Care Business in America?

It is estimated that businesses dealing with hair care is an $80.81 billion industry.

 

What Training is Required to Become a Hairdresser?

To become a hairdresser or a cosmetologist requires that you obtain your licensing which is pretty standard in all 50 states.

To obtain your license requires, as set by the state issuing the license, a certain number of hours of training to become a cosmetologist.

Specifically, a cosmetologist would need to have a high school diploma or equivalent and attend cosmetology school which is nine months in duration.

 

You Can Do It

Whether you are choosing to start a hair salon business, hair supply business, etc. you have a plan of action and a passion for this type of work.

The good news is there are a variety of resources that are available to you to get started in even if you don’t have the necessary “seed” money.

 

Conclusion

Generally, individuals have a personal commitment to maintaining certain grooming standards in their lives.

Part of that personal grooming includes daily hygiene, wearing clean clothes, taking care of their teeth, etc.

Another important part of one’s daily grooming activities is the care of their hair.

Consequently, to help people with this with their commitment and attention to maintaining their grooming standards and the care of their hair, hair care is a big business and one that can be a good business opportunity if one has the desire and passion for creating a business that is defined as hair care.