How to Start a Hair Business with No Money? If you have a passion for hair and beauty, you might have dreamed of starting your own hair business someday. But what if you don’t have the money to start a hair salon, a hair product line, or a hair extension brand? Does that mean you have to give up on your dream?
Not at all! Starting a hair business with no money is not only possible but also realistic and achievable. You just need to be creative, resourceful, and determined to make it happen.
In this article, we’ll show you how to start a hair business with no money in 8 practical steps. We’ll cover everything from market research, business planning, financing, licensing, equipment, location, pricing, and marketing. By the end of this article, you’ll have a clear idea of how to turn your love for hair into a profitable and successful business.
So, are you ready to start your hair business with no money? Let’s get started!
Table of Contents
8 Steps On How to Start a Hair Business with No Money
1. Do market research
The first step to start a hair business with no money is to do market research. This will help you understand your target audience, your competitors, and your niche in the hair industry. Market research will also help you avoid wasting money on things that your customers don’t want or need.
To do market research, you can use online tools such as Google Trends, Facebook Audience Insights, or SurveyMonkey to gather data on the demographics, behaviors, and preferences of your potential customers. You can also conduct live interviews with people who are interested in hair services or products, such as your friends, family, or acquaintances.
Some of the questions you should ask yourself and your potential customers are:
- What kind of hair services or products are they looking for?
- How much are they willing to pay for them?
- What are their pain points or challenges when it comes to hair care or styling?
- What are their favorite brands or salons in the hair industry?
- What are the gaps or opportunities in the current hair market?
By doing market research, you’ll be able to identify your ideal customer and their needs and wants. You’ll also be able to find out what makes you different from your competitors and how you can stand out in the hair market.
2. Create a business plan
The next step to start a hair business with no money is to create a business plan. A business plan is a document that outlines your goals, strategies, and actions for your hair business. It will help you stay focused, organized, and accountable for your business.
A business plan should include the following key components:
- A business description: This is where you explain what your hair business is about, what kind of services or products you offer, and what your mission and vision are.
- A market analysis: This is where you summarize the results of your market research, such as your target market, your competitors, and your unique selling proposition (USP).
- A product or service description: This is where you describe the features, benefits, and prices of your hair services or products, and how they solve your customers’ problems or satisfy their needs.
- A financial plan: This is where you project your income, expenses, and profits for your hair business, and how you plan to finance it.
- A marketing plan: This is where you outline your marketing strategies and tactics for your hair business, such as your branding, promotion, and distribution channels.
- An operational plan: This is where you describe how you will run your hair business, such as your location, equipment, staff, suppliers, and legal requirements.
Having a well-written business plan will help you to present your hair business to potential investors, partners, or customers. It will also help you to make informed decisions and measure your progress and performance.
3. Find ways to finance your hair business
The third step to start a hair business with no money is to find ways to finance your hair business. Even though you don’t have money to invest, you still need some funds to cover the essential expenses of your hair business, such as business registration, licenses, permits, equipment, products, and rent.
There are many ways to finance your hair business with no money, such as:
- Bootstrapping: This means using your own savings, income, or assets to fund your hair business. You can also cut your personal expenses and live frugally to save more money for your business.
- Crowdfunding: This means raising money from a large number of people online, usually through platforms such as Kickstarter, Indiegogo, or GoFundMe. You can offer rewards, such as discounts, free samples, or shout-outs, to your backers in exchange for their donations.
- Grants: This means applying for free money from government agencies, foundations, or organizations that support small businesses, especially those owned by women, minorities, or veterans. You can search for grants online or visit your local Small Business Administration (SBA) office for assistance.
- Loans: This means borrowing money from banks, credit unions, or online lenders to start your hair business. You’ll need to pay back the money with interest and fees, so make sure you have a good credit score and a solid business plan before applying for a loan.
- Partnerships: This means teaming up with other people who share your vision and passion for hair, and who can contribute money, skills, or resources to your hair business. You can find potential partners through your network, social media, or online platforms such as CoFoundersLab or FounderDating.
By finding ways to finance your hair business with no money, you’ll be able to cover the initial costs of starting your hair business and grow it over time.
4. Obtain the necessary licenses and permits
The fourth step to start a hair business with no money is to obtain the necessary licenses and permits for your hair business. Depending on the type, location, and size of your hair business, you may need to register your business name, choose a business entity, obtain a tax identification number, and apply for various licenses and permits, such as:
- A cosmetology license: This is a license that allows you to perform hair services, such as cutting, coloring, styling, or extensions, on clients. You’ll need to complete a cosmetology program, pass a state exam, and pay a fee to get a cosmetology license. The requirements may vary by state, so check with your local cosmetology board for more information.
- A salon license: This is a license that allows you to operate a hair salon, whether it’s a home-based salon, a mobile salon, or a brick-and-mortar salon. You’ll need to meet certain health and safety standards, such as sanitation, ventilation, and equipment, and pay a fee to get a salon license. The requirements may vary by state and city, so check with your local health department for more information.
- A seller’s permit: This is a permit that allows you to sell hair products, such as shampoos, conditioners, and styling products, to your customers. You’ll need to register your business with your state’s department of revenue, collect sales tax from your customers, and file tax returns to get a seller’s permit. The requirements may vary by state, so check with your state’s department of revenue for more information.
Obtaining the necessary licenses and permits for your hair business will help you to comply with the laws and regulations of your state and city, and avoid any fines or penalties.
5. Purchase the equipment, software, and tools needed
The fifth step to start a hair business with no money is to purchase the equipment, software, and tools needed for your hair business. Depending on the type and scope of your hair business, you may need to buy or rent various equipment, software, and tools, such as:
- Hair styling tools: These are the tools that you use to perform hair services, such as scissors, combs, brushes, hair dryers, curling irons, flat irons, clippers, and more. You can buy them online or at beauty supply stores, or you can rent them from other salons or stylists.
- Hair products: These are the products that you use to wash, condition, and style your clients’ hair, such as shampoos, conditioners, gels, mousses, sprays, and more. You can buy them online or at beauty supply stores, or you can make your own natural or organic products at home.
- Salon furniture: These are the furniture that you use to furnish your salon, such as chairs, mirrors, shelves, cabinets, and more. You can buy them online or at furniture stores, or you can use your own furniture or borrow from your friends or family.
- Salon software: These are the software that you use to manage your salon, such as booking, scheduling, invoicing, inventory, marketing, and more. You can use online platforms such as Square, Vagaro, or Salon Iris, or you can use free or low-cost software such as Google Calendar, Excel, or Mailchimp.
- Salon tools: These are the tools that you use to run your salon, such as cleaning supplies, towels, capes, clips, gloves, and more. You can buy them online or at beauty supply stores, or you can use your own household items or recycle from other sources.
Purchasing the equipment, software, and tools needed for your hair business will help you to provide quality and professional hair services or products to your customers.
6. Choose a location for your hair business
The sixth step to start a hair business with no money is to choose a location for your hair business. The location of your hair business will affect your visibility, accessibility, and profitability. You’ll want to choose a location that is convenient, affordable, and suitable for your hair business.
There are many options for choosing a location for your hair business with no money, such as:
- A home-based salon: This means operating your hair business from your own home, whether it’s a spare room, a garage, or a basement. You’ll need to make sure that your home is zoned for commercial use, that you have enough space and privacy, and that you comply with the health and safety regulations. The advantages of a home-based salon are that you can save money on rent and utilities, have more flexibility and control over your schedule, and create a cozy and personal atmosphere for your customers.
- A mobile salon: This means operating your hair business from a vehicle, such as a car, a van, or a trailer. You’ll need to invest in a reliable and spacious vehicle, equip it with the necessary tools and products, and obtain a driver’s license and insurance. The advantages of a mobile salon are that you can travel to your customers’ locations, offer convenience and comfort to your customers, and reach a wider and diverse market.
- A booth rental salon: This means operating your hair business from a booth or a station within an existing salon. You’ll need to pay a weekly or monthly fee to the salon owner, and follow their rules and policies. The advantages of a booth rental salon are that you can benefit from the salon’s reputation, clientele, and amenities, have more independence and flexibility than an employee, and reduce your overhead costs and risks.
- A pop-up salon: This means operating your hair business from a temporary or short-term location, such as a mall, a park, a festival, or a hotel. You’ll need to obtain permission from the venue owner, and bring your own equipment and products. The advantages of a pop-up salon are that you can test the market demand, attract new and curious customers, and create a buzz and excitement for your hair business.
Choosing a location for your hair business with no money will help you to establish your presence and reputation in the hair industry, and reach your target market.
7. Set your prices and policies
The seventh step to start a hair business with no money is to set your prices and policies for your hair business. Your prices and policies will affect your income, expenses, and customer satisfaction. You’ll want to set your prices and policies that are fair, competitive, and profitable for your hair business.
To set your prices for your hair services or products, you can use the following methods:
- Cost-based pricing: This means setting your prices based on the total cost of providing your hair services or products, including the cost of materials, labor, overhead, and profit margin. For example, if it costs you $10 to provide a haircut, and you want to make a 50% profit margin, you can charge $15 for a haircut.
- Value-based pricing: This means setting your prices based on the perceived value or benefit of your hair services or products to your customers, rather than the cost. For example, if you offer a unique or specialized hair service or product, such as a custom wig or a hair extension, you can charge a premium price that reflects the value or benefit that your customers get from it.
- Competition-based pricing: This means setting your prices based on the prices of your competitors in the hair industry, and positioning yourself as either cheaper, similar, or more expensive than them. For example, if your competitors charge $20 for a haircut, you can charge $15, $20, or $25 for a haircut, depending on your target market and your competitive advantage.
To set your policies for your hair business, you can use the following guidelines:
- Cancellation policy: This means setting a policy that specifies how much notice your customers need to give you if they want to cancel or reschedule their appointments, and what penalties or fees they will incur if they don’t. For example, you can require your customers to give you 24 hours notice, and charge them 50% of the service fee if they don’t.
- Payment policy: This means setting a policy that specifies how and when your customers need to pay you for your hair services or products, and what methods of payment you accept. For example, you can require your customers to pay you upfront, at the time of service, or after the service, and accept cash, credit cards, or online payments.
- Refund policy: This means setting a policy that specifies under what circumstances your customers can get a refund or exchange for your hair services or products, and what conditions or limitations apply. For example, you can offer a full or partial refund or exchange within 7 days of purchase, if the customer is not satisfied with the quality or outcome of your hair service or product.
Setting your prices and policies for your hair business with no money will help you to manage your cash flow, cover your expenses, and satisfy your customers.
8. Promote your hair business
The last step to start a hair business with no money is to promote your hair business. Promoting your hair business will help you to attract, retain, and grow your customer base, and increase your sales and revenue. You’ll want to promote your hair business using effective and affordable marketing strategies and tactics.
There are many ways to promote your hair business with no money, such as:
- Word-of-mouth marketing: This means getting your customers to spread the word about your hair business to their friends, family, or acquaintances, and generate referrals and recommendations for you. You can encourage word-of-mouth marketing by offering incentives, such as discounts, freebies, or loyalty programs, to your customers who refer new customers to you.
- Social media marketing: This means using social media platforms, such as Facebook, Instagram, or YouTube, to showcase your hair services or products, share your portfolio, testimonials, or tips, and engage with your audience. You can create a business page or account, post relevant and valuable content, use hashtags, and run contests or giveaways to grow your social media presence and following.
- Email marketing: This means using email to communicate with your customers, prospects, or leads, and send them newsletters, promotions, or updates about your hair business. You can use free or low-cost email marketing tools, such as Mailchimp, Constant Contact, or AWeber, to create and send professional and personalized emails, and track and measure your email marketing performance.
- Content marketing: This means creating and distributing valuable and relevant content, such as blog posts, articles, videos, podcasts, or ebooks, to educate, inform, or entertain your audience, and establish your authority and credibility in the hair industry. You can use free or low-cost content creation and distribution tools, such as WordPress, Medium, or YouTube, to create and share your content, and optimize it for search engines and keywords.
- Networking and partnerships: This means building relationships and connections with other people in the hair industry, such as other stylists, salon owners, product suppliers, or influencers, and collaborating or partnering with them to cross-promote or co-create your hair services or products. You can use online platforms, such as LinkedIn, Meetup, or Eventbrite, to find and join relevant groups, events, or communities, and network and partner with like-minded people.
Promoting your hair business with no money will help you to raise awareness and interest for your hair business, and generate more leads and customers for your hair business.
Conclusion
Starting a hair business with no money is not impossible, but it requires a lot of creativity, resourcefulness, and determination. By following the 8 steps in this article, you can start your own hair business with no money, and turn your passion for hair into a profitable and successful business.
Here are the main points to remember:
- Do market research to understand your target market, your competitors, and your niche in the hair industry.
- Create a business plan to outline your goals, strategies, and actions for your hair business.
- Find ways to finance your hair business with no money, such as bootstrapping, crowdfunding, grants, loans, or partnerships.
- Obtain the necessary licenses and permits for your hair business, such as a cosmetology license, a salon license, or a seller’s permit.
- Purchase the equipment, software, and tools needed for your hair business, such as hair styling tools, hair products, salon furniture, salon software, or salon tools.
- Choose a location for your hair business, such as a home-based salon, a mobile salon, a booth rental salon, or a pop-up salon.
- Set your prices and policies for your hair business, such as cost-based pricing, value-based pricing, or competition-based pricing, and cancellation policy, payment policy, or refund policy.
- Promote your hair business with no money, such as word-of-mouth marketing, social media marketing, email marketing, content marketing, or networking and partnerships.
We hope this article has inspired you to start your hair business with no money, and we wish you all the best in your hair journey. If you need any help or advice, feel free to contact us anytime. We’re here to help you succeed.