Hair care holds a lot of promise for new entrepreneurs: the hair care market worldwide is projected to generate $96.82 billion in revenue in 2025. In an industry that contains countless product categories, there’s space to carve out something that’s all your own.

Below, we’ll explain how to start a hair business, including sourcing, branding, legal setup, marketing, payments infrastructure, and pricing structure. From early research to your first sale, here’s what launching a hair venture entails.

What’s in this article?

• Why start a hair business?
  
• What types of hair products can you sell?
  
• How do you source hair products for resale?
  
• What are the legal steps to start a hair business?
  
• How do you market your hair business?
  
• What tools can help you manage payments and inventory?
  
• How do you price your products competitively?
  

Why start a hair business?

Hair care is an appealing space for business owners for several reasons. First, demand for hair products remains steady. Wigs and extensions have been popular for decades, and they’ve become more accepted as everyday wear for a broader range of people. The global market for wigs and extensions was valued at $8.00 billion in 2023 and is expected to grow to $17.66 billion by 2032.

Customers have an ever-increasing variety of hair care options to choose from, whether they’re for chemical-free maintenance or dramatic transformations such as pastel-colored wigs and extralong clip-ins. This keeps sales strong in various categories, from all-natural cleansers to handcrafted synthetic pieces.

Another factor is the ability to scale. Hair products can yield healthy margins, and that opens possibilities for expansion over time. Businesses can start small, with a limited line of products—maybe just one type of weave or one collection of handmade conditioners—and grow according to their budgets. A new brand can gauge demand with a modest inventory and then gradually add more items. The ability to control your direction without massive overhead is one reason so many entrepreneurs see a hair business as a worthwhile path.

Common motivations for starting a hair business include the following:

• Personal interest in beauty and styling: A passion for hair trends, products, and techniques is a natural driver.

• Steady demand: The industry is relatively resistant to recessions. Although people might downsize their budgets, hair often remains a priority.

• Flexible inventory: Product lines can be small or large and customized to your needs.

• Room for creativity: Branding, packaging, and marketing can show off your artistic side.

What types of hair products can you sell?

It’s important to understand your corner of the market. Extensions and wigs capture one audience, while natural hair care lines serve another. Some business owners serve a mix of markets, but it’s usually a good idea to begin with a narrower selection. A specialized focus helps establish your reputation. A brand known for its high-quality curly bundles, for instance, can often distinguish itself faster than a one-stop shop that’s trying to cover every style.

Hair extensions

Extensions are among the industry’s most popular products. They come in many forms, including clip-ins, sew-ins, tape-ins, and fusions. They also come in a variety of textures, such as straight, wavy, curly, and kinky curly, as well as in styles originating from distinct traditions. These styles each have their attributes, such as thickness and how well the hair responds to heat styling. When you label your products, be as specific and detailed as possible so your customers can pick a perfect match.

Wigs

Wigs have soared in popularity. People wear them to switch up a look, protect their natural hair, or explore a color and texture they’ve never had before. Many wig brands focus on lace fronts because they create a natural hairline. Some people prefer synthetic fibers, which are more budget friendly, while others use human hair for a realistic appearance and longevity. Options include partial wigs, full lace, or machine-made wefted caps.

Natural hair care products

Shampoos, conditioners, scalp treatments, and stylers that avoid harsh chemicals have carved out their corner of the hair market. Many customers want solutions that nourish the scalp and hair strands without causing damage or irritation. Organic ingredients such as coconut oil and shea butter are popular, and certain herbal extracts get attention for their potential benefits. Packaging and messaging around natural formulas can reassure ingredient-conscious shoppers.

Specialty items

Some brands set up shop in niche categories (e.g., beard care for men, specialized treatments for thinning hair, items used during protective styling). There’s also a growing wave of hair accessories such as satin bonnets and high-quality scrunchies, which reduce friction or breakage.

Picking a product niche typically depends on personal interest, budget, and market data. Take a look at what’s already out there and find a way to add your own twist.

How do you source hair products for resale?

Once you’ve chosen a niche, you need reliable sources. That might mean partnering with large-scale manufacturers, custom wig makers, or small-batch natural-product formulators. Many prospective business owners look to hair vendors in regions known for producing or exporting, such as China, India, and Southeast Asia. Some attend trade shows or connect through industry directories, while others consider smaller domestic suppliers for specialized or eco-friendly lines. When you choose your supplier, look for the following:

• Consistent quality: The performance of a supplier’s product and its hair texture should match your brand’s standards.

• Fast response times: Good communication on shipping timelines, product updates, and quality control issues is a necessity.

• Ethical sourcing (if relevant to your brand): If you advertise that your hair is from a fair-trade source or that your ingredients are cruelty free, confirm that your supplier meets those requirements.

Consider requesting sample shipments to verify that product photos and descriptions match what’s delivered. Look at the hair wefts or packaging carefully. Check for tangling, shedding, or any unnatural smell that suggests chemical processing. If you’re buying natural hair care products, examine the ingredients list and confirm that it matches your brand’s mission.

When you search for a production partner, think about your long-term plans. It might be tempting to focus on the cheapest option, but reliability and quality can pay off in the long term. Slow shipping or inconsistent texture can drive away customers who expect a reliable brand experience.

What are the legal steps to start a hair business?

Having a clear legal structure protects you and your business. While online tutorials can provide an overview, the most reliable starting point is to contact a qualified attorney or local service for small businesses. The formation process usually includes registering your business, securing a tax identification number, and filing the necessary documents with the correct authorities.

Business registration

If you plan to operate as a sole proprietorship, you probably don’t need to formally register your business. But if you’re forming a limited liability company (LLC) or corporation in order to protect your personal assets, you’ll need to formally file articles of organization or articles of incorporation.

Name registration and trademarks

Ensure the name you want is still available by searching for it on your local registry. If you plan on building a memorable brand, consider trademark registration. In most countries, that process starts with an application to the relevant government agency. Once approved, the registration can protect your brand identity within specific categories.

Permits and licensing

Some regions require a general business license. Others have more specific permits, especially if you’re operating out of a physical store. If you’re selling products that touch the scalp or skin, check any rules and regulations related to cosmetics or hygiene. Many hair businesses operate entirely online and primarily address ecommerce rules, but you must confirm your local requirements.

Insurance

Customers sometimes ask about allergies or user instructions regarding hair products. Insurance can help shield you from lawsuits or claims. Liability policies are standard, and there might be specialized versions for beauty businesses where you’re located. Seek out expert advice to assure that you are protecting yourself properly.

How do you market your hair business?

Marketing your hair business means showing customers what sets your brand apart and why they should purchase from you rather than your competitors. Sharing real-life demos, behind-the-scenes footage of product sourcing, and thoughtful tips on hair care can help shape your brand’s voice.

Social media

Social media platforms are important to the beauty industry, including hair products. Photos, videos, and stories are quick ways to show transformations and new arrivals. Blog posts or short how-to videos can set your brand apart, and sharing easily digestible advice builds confidence. Embed your brand’s personality in these posts or videos. Focus on short tips and clear visuals that anyone can understand.

Consistency matters so develop a posting routine that works for you. You could post two or three times a week or daily, if you have enough fresh ideas.

Collaborations with influencers

Influencer collaborations can raise brand awareness. Look for creators who connect with your target audience. Micro-influencers with dedicated followings sometimes deliver outstanding results, often at a more modest price than with influencers who have larger followings or celebrities. Send them product samples and any relevant details. Some might accept payment for a post, while others are happy with free products in exchange for genuine reviews.

Pop-up shops

A pop-up shop is a short-term retail event that can introduce people to your brand in person. You can set one up at local fairs, or you can partner with another business, such as a boutique or beauty salon, to cross-promote. Create an inviting space where visitors can touch the hair or try out a sample wig. If you create natural hair care items, consider having a small demonstration area where you or a team member can show potential customers how to use them.

What tools can help you manage payments and inventory?

Running a hair business involves numerous tasks that can quickly become overwhelming to manage manually. Here are some tools you can use to decrease administrative work and provide a better customer experience.

Processing payments

A simplified checkout process can increase conversion and decrease the amount of abandoned carts. Stripe can integrate easily with online store builders, whether you’re using WooCommerce, Wix, or a custom-built site. You can also accept different kinds of payment methods, such as major cards, digital wallets, and region-specific options.

Managing your stock

Hair businesses often provide many variations: different textures, lengths, colors, and cap constructions. Tracking everything on a spreadsheet might work if you have a handful of products, but it gets more difficult as you scale up. An inventory management system, such as Fishbowl or Katana, can help you monitor what’s in stock and what’s running low. Many of these systems plug into ecommerce platforms.

Tracking customer interactions

Stripe helps businesses track orders, refunds, and customer queries. The Stripe Dashboard outlines your transactions in a clean format and can sync sales data with your accounting and inventory management software, so you can see sales as they happen.

How do you price your products competitively?

A hair business often has multiple cost layers: sourcing costs for raw hair or ingredients, shipping fees, packaging, branding expenses, transaction costs, and more. You need to cover those and still have enough to pay yourself and reinvest in growth. Your price should also match how people perceive your brand. Here are some tips on how to set your prices:

• Tally your costs and add whatever markup you believe is fair for your market segment. If your brand is oriented towards luxury, that markup might be higher.

• Check what others are charging for items with a similar style, length, or origin. Think about where you want to position yourself. Pricing too low can make buyers suspicious of your quality. Pricing too high might drive them to a competitor, unless you’ve built real buzz around your products.

• Many new brands will do a “soft launch” or a preorder phase to see how people react to their prices. If you consistently sell out or receive feedback that your products are too expensive, you can adjust accordingly.

• Some owners introduce a welcome discount for first-time customers, and others run sales around holidays. These can lead to a bump in orders, but they also create an expectation for discounts if you do them too often.

• Price changes are expected as your business matures, especially if the cost of raw hair or shipping increases. Communicating why your price changed can help, especially if you’ve built a loyal audience that appreciates transparency.