Wig Business Plan Template
If you want to start a wig business or expand your current wig business, you need a business plan.
The following Wig business plan template gives you the key elements to include in a winning Wig business plan.
Sample Wig Business Plan Template
Below is a wig business plan example with each of the key sections to help you write a wig business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a new wig shop located in the heart of [Location]. Our mission is to make every customer feel empowered with a new wig that makes them feel beautiful. We support this mission by utilizing compassion-based customer service and giving each customer personal attention as soon as they walk into our store.
Furthermore, we aim to have the largest selection of wigs, hair extensions, and quality hair care products in town. Our customers will be able to find wigs of all lengths, styles, and colors in our store to match their styles and personalities. Local residents can visit our shop to see our selection, and customers nationwide can check out our inventory on our website.
Products Served
[Company Name] will showcase an extensive variety of wigs throughout our store. Our wigs will come in all colors, from natural hair colors to fun dyed colors like pink or blue. We guarantee that every customer will find the perfect wig that fits their style.
In addition to wigs, we will also sell hair extensions and hair products so that customers can keep their wigs in perfect condition.
Customer Focus
[Company Name] will primarily serve residents within a 15-mile radius of our location. The demographics of these customers are as follows:
- 58,921 residents
- Average income of $44,700
- 55% married
- 60% female
- Median age: 38 years
Management Team
[Company Name] is led by [Founder’s Name], who has been an expert in the hair and wig care industries for [X] years. She began her career as a hairstylist and eventually transferred her skills to caring for and styling wigs as well. [Founder’s Name] has been in the business long enough to know that buying and styling a wig is a difficult or uncomfortable experience for many customers. However, many stylists and businesses that sell wigs don’t treat these customers with the respect and compassion they deserve. This inspired [Founder’s Name] to start a wig business focused on compassion and empathy.
Though [Founder’s Name] has never run a business herself, she has been in the industry long enough to have an in-depth knowledge of the operations and marketing sides of the business. She will also hire other professionals who can help with the other aspects of the business she is unfamiliar with.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are few other competitors solely dedicated to selling wigs in [Location].
- [Company Name] will employ a staff of caring and compassionate individuals who are dedicated to customer service.
- [Founder’s Name] has extensive experience and knowledge of the wig, hair care, and beauty industries.
- [Company Name] is located in an easy-to-access location in the heart of [Location]. We will also have a professional website to connect with customers nationwide.
Financial Highlights
[Company Name] is currently seeking $400,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Initial inventory, supplies, and technology: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new wig shop located in the heart of [Location]. Our mission is to make every customer feel empowered with a new wig that makes them feel beautiful. We support this mission by utilizing compassion-based customer service and giving each customer personal attention as soon as they walk into our store.
Furthermore, we aim to have the largest selection of wigs, hair extensions, and quality hair care products in town. Our customers will be able to find wigs of all lengths, styles, and colors in our store to match their styles and personalities. Local residents can visit our shop to see our selection, and customers nationwide can check out our inventory on our website.
[Company Name] is led by [Founder’s Name], who has been an expert in the hair and wig care industries for [X] years. She began her career as a hairstylist and eventually transferred her skills to caring for and styling wigs as well. [Founder’s Name] has been in the business long enough to know that buying and styling a wig is a difficult or uncomfortable experience for many customers. This inspired [Founder’s Name] to start a wig business focused on compassion and empathy.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation]. [Founder’s Name] has identified a potential retail location and is in the process of negotiating a lease. The company is currently being run out of her home but will move to the retail space once the lease is finalized.
Since incorporation, [Company Name] has achieved the following milestones:
- Found a retail space and signed a Letter of Intent to purchase it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and inventory requirements
- Begun recruiting key employees with previous experience in the beauty/hair care/wig industries
[Company Name]’s Products/Services
[Company Name] will showcase an extensive variety of wigs throughout our store. Our wigs will come in all colors, from natural hair colors to fun dyed colors like pink or blue. We guarantee that every customer will find the perfect wig that fits their style.
In addition to wigs, we will also sell hair extensions and hair products so that customers can keep their wigs in perfect condition.
III. Industry Analysis
Wigs have been a part of style and fashion for centuries. In the past, wigs exemplified power and position and created lasting fashion trends. In current times, people use wigs to express themselves when they can’t do so with their normal hair. Wigs also help those who have lost their hair from accidents, various health conditions, or natural aging. It’s not always easy to live with hair loss, and wigs help those individuals feel normal when their body doesn’t. Therefore, wigs continue to be in popular demand and will be for the foreseeable future.
Furthermore, there is a growing awareness of various conditions that cause hair loss, such as alopecia. With this increasing awareness, wigs will be in more demand as an option to help these people cope with their conditions.
Wigs are also an important asset to several other industries, such as the beauty and film industries. As those businesses continue to thrive, the wig industry will continue to prosper as well.
According to Grand View Research, the current wig industry was valued at $6.13 billion last year and is expected to grow at a compound annual growth rate (CAGR) of 8.0% over the next five years. This is significant growth that is sustained by all the factors mentioned above. Therefore, the data shows that this is the perfect time to start a new wig shop.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas.
The majority of the population is female, which is traditionally the gender that buys wigs the most. There is also a thriving beauty industry that may require wigs for their mannequins and displays. We could not choose a better community to set up shop.
Customer Segmentation
[Company Name] will primarily target the following three customer segments:
- Women: Traditionally, most customers of the wig industry are women. Generally speaking, hair loss is much harder for women than men, so many use wigs to help them cope. Even women without hair loss concerns use wigs to showcase styles that they can’t try with their natural hair. Therefore, we expect most of our customers to be female.
- Individuals with health conditions: For people living with certain health conditions, hair loss is an unfortunate side effect. Losing one’s natural hair can create additional distress for these individuals. Many people with these conditions seek out wigs to cope with their illnesses. Therefore, we expect many customers from this segment to frequent our shop.
- Local beauty companies: Companies in the beauty industry often use wigs for displays, demonstrations, and to dress up mannequins. They usually need a larger variety of wigs than individuals and go through them more often. Therefore, we expect a good chunk of sales to come from the local beauty industry.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a 15-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Living Beautifully
Living Beautifully has been a popular beauty business in [Location] for the past five years. Living Beautifully is a one-stop shop for all beauty products, including hair care products and a select inventory of wigs and hair extensions. Many individuals obsessed with looking their best can find everything they need at Living Beautifully.
Jenna’s Hair Supply
Jenna’s Hair Supply is a small, locally-owned supplier of all things hair care. This includes organic shampoos, hair extensions, and a decent selection of wigs. People looking for wigs can find many styles and colors to choose from. The store also has a few hair stylists on standby who can help them clean and style their wigs as needed.
Glam Cuts
Glam Cuts is a popular and hip hair salon business located in downtown [Location]. People all over the city come here to get their hair cut and styled to keep up with current fashion and trends. However, in addition to its hair-cutting and beauty services, the salon sells a decent selection of wigs and offers styling services to perfect each wig for its customers. Many wig owners frequent Glam Cuts in order to style their wigs and get the best tips and advice to care for them properly.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: Our management team has years of experience in the wig and hair care industries, which allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Compassionate Staff: Buying a wig can be a difficult experience for many of our customers. It can also be overwhelming to find the right style that makes each customer feel beautiful. Our staff understands these difficulties and works with every customer with compassion and respect.
- Relationships: [Company Name] is dedicated to establishing long-term relationships with local beauty partners as well as our customers. We know that customers remain loyal to companies that work hard to establish a relationship with them. Therefore, we work hard to establish relationships with all of our partners and customers, treating them as friends or family.
- Inventory: [Company Name] aims to own the largest and most diverse collection of wigs that can be found anywhere in [Location].
VI. Marketing Plan
[Company Name] seeks to position itself as the prime wig store to purchase beautiful and stylish wigs as well as high-quality hair care products. The company will also focus on providing exceptional customer service to all who enter its store.
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Compassion-based customer service
- Affordable pricing on all products
- A large inventory of unique and stylish wigs
Promotions Strategy
[Company Name] expects its target market to be residents within a 15-mile radius of its location. The company’s promotion strategy to reach these customers includes:
Social Media
[Company Name] will invest heavily in a social media advertising campaign. [Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.
Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all the products in our store. It will also invest heavily in SEO so that the company’s website will appear at the top of search engine results.
Publications
The company will also invest in advertising in selected local and national publications such as beauty and hair magazines, newspapers, and other publications to build brand awareness and draw in new customers.
Partnerships With Influencers
[Company Name] will partner with local beauty influencers to spread the word about the company. The company will offer discount codes to the influencers’ audiences to entice them to shop for our products.
Billboard Advertising
We will drive attention toward [Company Name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of individuals who are in need of wigs to our opening.
Pre-Opening Events
Before opening the store, [Company Name] will organize pre-opening events designed for local merchants and press contacts to create buzz and awareness for [Company Name].
Pricing Strategy
[Company Name]’s pricing will be moderate and on par with competitors, so consumers feel they receive great value when buying our wigs and hair care products.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform several functions:
Service Functions
- Customer service
- Cash register functions
- Inventory management
- General maintenance functions
Administrative Functions
- Marketing
- Bookkeeping
- Sourcing and storing supplies and inventory
- Hiring and training staff
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been an expert in the hair and wig care industries for [X] years. She began her career as a hairstylist and eventually transferred her skills to caring for and styling wigs as well. [Founder’s Name] has been in the business long enough to know that buying and styling a wig is a difficult or uncomfortable experience for many customers. However, many stylists and businesses that sell wigs don’t treat these customers with the respect and compassion they deserve. This inspired [Founder’s Name] to start a wig business focused on compassion and empathy.
Though [Founder’s Name] has never run a business herself, she has been in the industry long enough to have an in-depth knowledge of the operations and marketing sides of the business. She will also hire other professionals who can help with the other aspects of the business she is unfamiliar with.
Hiring Plan
[Founder’s Name] will serve as the Store Manager. In order to launch, she needs to hire the following personnel:
- Assistant Managers (2 to start)
- Sales Representatives (3 to start)
- Accountant (1)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of wigs, hair extensions, and other hair care products.
The major costs for the company will include the inventory and supplies costs, salaries of the staff, and rent/overhead costs. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $400,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Initial inventory, supplies, and technology: $100,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| Year 1 | 26 |
| Year 2 | 35 |
| Year 3 | 48 |
| Year 4 | 60 |
| Year 5 | 70 |
| Annual Rent | $90,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
