How to start a hair business with no money?

Have you wondered how to start a hair business with no money or experience? Well, you’re not alone. Lots of people, just like you, dream of running a lucrative hair business that offers flexibility. You may even already have many inspirational ideas in mind. 

Unfortunately, some people decide to stay in their comfort zone and give up their ambitions. Especially when they realize that it takes a capital outlay to start a hair business. But is it really impossible to launch a business without money? The answer might surprise you!

Throughout this article on “how to start a hair business with no money”, Jen Hair will share our own personal experience to help you overcome each business stage without a penny, as well as recommend some tips and considerations you may find helpful throughout the process.

Can I start a hair business with no money?

If you dream of becoming a hair entrepreneur but are in a quandary because of financial problems, know that it’s possible to start a business with no money.

All you need to do is be strategic and patient with your approach. However, before diving into “how to start a hair business with no money”, here are a few pieces of advice you should consider first.

Don’t quit your day job

As soon as you decide to start a business, you have a plan and a passion, and you’re ready to do whatever it takes to make it happen. However, it is definitely the riskiest path, especially when you have minimal or no savings funds available.

Choosing to keep your current job and start your own business on the side is a solidly sensible approach. It not only builds up your savings but also helps you solve your income problem.

Before throwing yourself wholeheartedly into your startup venture, create a plan and set yourself up for entrepreneurial success. Once your hair business is in full swing and you’re confident enough to cover your expenses, including having a substantial financial cushion to fall back on, you can reduce your hours or leave your day job.

Utilize free resources 

Luckily, there is no shortage of free or low-cost resources to help owners such as yourself create any kind of business (including the hair industry).

Research on Google and look for workshops, mentorship programs, events, conferences, social media groups, or online forums that will help you approach the opportunity of launching your hair business successfully.

Get to interact with business people in the hair industry so that they can share meaningful advice, introduce you to others who can help you, promote your offerings to their customer base, and even provide you with funding. You’ll get a lot of experience from entrepreneurs on the same journey as you.

You can also leverage trial offers for paid business tools. By taking advantage of free resources, you can get an idea of the overall functionality, which will help you determine if it’s worth eventually investing in.

How to start a hair business with no money?

Starting a hair business from nothing is a journey of trial and error. You might have some effective ideas, while others might fall short of your expectations. This step-by-step guide on “how to start a hair business with no money” will be a simple way to reduce the risk of failure and still get cash flow.

1. Identify your hair business plan

With limited monetary resources to start up, you can invest your time wisely by planning your hair business in detail. Basically, the key parts of a hair business plan include:

• Business overview: This section is designed to help people approach your company description, the products and services, the legal structure, and the mission statement and goals.
• Hair market research: Analyze your consumer market to research who your target market is and what they need. Emphasize how your hair products or services will meet the demands of your target audience and allow you to stand out from your competitors.
• Marketing strategy: This may refer to email marketing, social media marketing, and event marketing for reaching prospective consumers and turning them into customers of your products or services. Learn what marketing strategy is, why it matters, the different types, and the steps to create your own.
• Financial plan: Understanding and creating a financial plan is crucial; it would feature a balance sheet, cash flow projections, and other financial data and documents. If you want to start a hair business with as little capital as possible, analyze your income and expenses to see if there are any opportunities to save. Consider if each expense is mandatory or not, and try to find a solution to reduce it if it is possible.

2. Perform hair market research

Market research allows you to understand the target customers’ types of purchasing habits, needs, preferences, and assumptions so that you can get to the heart of consumer attitudes.

For example, if your customer’s target market is Northeast Asian consumers, market research will show that they love luxury bulk hair products, natural beauty, and pastel hair color. American African consumers, on the other hand, would look for glamorous hair color, especially weft hair with a curly hairstyle.

Therefore, you should follow their aesthetic taste when distributing your products to the market. As a result, you can make better business decisions by observing the bigger picture.

3. Start a dropshipping store

If you want to know how to start a hair business with no money, starting a dropshipping store is a safe solution. Since the dropshipping store is not only legal and low-cost but also a low-risk entry into an online business, profit margins average 15%–20% of each item’s selling price.

Unlike standard e-commerce stores, this fulfillment model doesn’t require buying expensive inventory, investing in warehousing, or spending time fulfilling orders. This means you can scale your business easily to meet customer demand while saving on overhead expenses because you don’t have to manage your own inventory.

4. Focus on online marketing

Another effective way to run a hair business without paying anything is to focus on online marketing. For hair businesses, a good online marketing strategy isn’t just an advantage; it’s essential. This strategy can be adopted through many methods, such as social media, email, digital ads, online content, and influencer marketing.

If you promote your business offerings via marketing online, you’ll also have a higher chance of interacting with consumers and potential clients. Moreover, the content you share online is a chance to demonstrate expertise and create brand recognition.

Tips for success in the hair business

Although you know the steps on how to start a hair business with no money, there is no fixed formula for a successful hair business. However, these tips can set you up to make your hair business more fruitful.

1. Learn from others

One of the key components to success in any form of business is your willingness to learn from others. Though you may have confidence and a lot of experience in the hair industry, it is important to learn from others who are ahead of you.

When we watch others’ incidents, whether the consequences are good or bad, we have extra observation on what the best choice may be. We use that extra information to improve our own business experience. But remember at the same time that you must be careful not to copy them.

2. Wear many hats

When you first start your hair business, especially with no money, you’ll want to be a “Jack of All Trades” and handle multiple tasks on your own. It’ll depend on you to demonstrate your services, create client contracts, perform the work, send invoices, and collect payments.

Even when your beginning process might not be perfect, you’ll learn a lot of lessons and save a great deal of cash right off the bat. In the future, when your business seems to be growing, you may be able to hire help for your venture.

3. Be social and active

Being social and active not only boosts brand awareness but also helps build a lasting relationship with your partners and clients. Moreover, consumers now expect more from businesses than just great products and services; they also want them to get more engagement in the communities in which they operate. Additionally, partnering up with another company can help you get more funding and find creative ways to allocate other resources.

4. Patience and persistence win in the end

The study notes that nearly 50% of startup failures in 2022 are due to a lack of investment capital, based on CNBC’s data. While no business can guarantee success, it’s obvious that patience and persistence are important virtues for all entrepreneurs.

Let’s say you’re eager to raise funding or launch your hair business and hope for immediate results from all that hard work. Good luck with that. For the most part, know that things usually don’t work that way.

As Steve Jobs once said, “Most overnight successes take a long time.” There will be periods when things are dragging along, and you will be skeptical of your decision to embark on this path. Whenever you feel doubt, remind yourself to follow the tips outlined above. Most importantly, always prepare a clear business plan and make sure it will work before you jump in with both feet.

Final thoughts

Overall, if you desire to become a hair vendor but are hesitant to take the plunge owing to a lack of funding, know that money can make it easier to start a business, but it’s certainly not everything. As long as you’re patient, hard-working, and take advantage of all the resources available to you, you’re likely to achieve your dream.

In conclusion, Jen Hair has put together a list of ideas on how to start a hair business with no money. Hopefully, one of these strategies will get your gears turning. 

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