The hair product industry is huge and there
are many players. To venture into this industry you will compete with
multinational companies with huge budgets for research, promotions and
marketing.
Such companies have established brand names popular with
shoppers. To break into this industry you need lots of innovation, quality
products, networking and marketing.
Before you start your business you need to focus on a
niche market. Beauty products business has many niche markets so narrowing the
field provides opportunity for specialization.
You don’t have to dominate the industry
only your chosen niche. A highly profitable niche in the beauty product
industry is hair relaxer business.
You can become very successful and rich manufacturing
your own hair relaxers or selling established brands. Hair relaxers are
specially formulated creams/shampoos made to soften hair.
The function of a relaxer is to allow easy styling or
plating of hair. The hair relaxer softens tough nuts and lumpy hair making it easy
to manage.
Although
Caucasians have their own brand of hair relaxers, women of color use more of
the product. Manufacturing the product is more capital intensive than operating
a wholesale or retail venture.
To launch the enterprise you need startup capital,
factory, storefront, machinery and labor. Other things involve company
incorporation, registration, brand awareness and marketing.
Types
of Beauty Hair Care Products
Beauty hair care products business is very popular
worldwide. The trillion dollar industry is very competitive and there is a
whole range of products.
Top on the list are hair shampoos, hair styling gels,
hair conditioners, hair treatment lotions. You have bar soaps, hair dyes, hair
growth solutions and hair relaxer.
- Hair shampoo
- Hair styling gel
- Hair conditioners
- Hair treatment lotion
- Bar soaps
- Hair creams
- Hair dyes
- Hair growth solution
- Hair relaxer.
Write a Hair Relaxer
Business Plan
Before
establishing your business, write a hair relaxer business plan. The plan should
focus on the business model, type of product, management team and funding.
Other
requirements are sourcing raw materials, equipment, marketing, profit/loss
accounting.
Carry out a
Feasibility Study
The
feasibility study should focus on competitors, product development, best
location and pricing. The price of your product should be competitive to
attract patronage. Find a good location for the business close to raw materials
or customers.
Choose the Hair Care Business
You
could decide to start the business as a wholesaler or retailer. If you are
interested in the manufacturing end of the business then learn how to produce
hair care products.
Your
products should be high quality and well researched. You need a national drug
administration number and approval to sell the product. Certification and
extensive testing is mandatory.
Registration and
Licensing
As
a manufacturer your hair care product needs proper packaging and labeling.
Labeling requirements are date of manufacture, ingredients, best before and
expiring date.
The
product name and company name/address should be included in the print. You need
a NAFDAC number and license.
Other
licenses are manufacturing certification, trade license and company
incorporation. Register the business as a limited liability company and get insurance cover.
You
need a tax identification number and your product is subject to value added tax.
You should put in place a good waste management system. There are also safety
provisions to guide the enterprise.
Wholesale and Retail
Hair Care Products
If
you decide to sell hair care products wholesale or retail you need a store.
Lease a store in a popular area with heavy human and vehicular traffic.
Good
locations are shopping malls, supermarkets and shopping centers. Choose to
stock only quality products with high reputation and brand names.
You
need to have a beautiful display for the products including proper inventory
management. Wholesalers require very little marketing because the top
manufacturers provide lots of marketing tools. You only need to promote your
store as a brand to customers.
Formulation
Chemicals in Hair Relaxers
It is best locating your factory close to source of raw
materials. This effectively reduces transportation costs, labor and handling.
There are many chemicals that go into the formulation of
hair relaxers. The formulation depends on the manufacturer.
Common chemicals include caustic soda, lanolin, Acetyl
alcohol and Petroleum jelly. Others are De-ionized water, Butyl Paraben,
Dehydrated wax, Stearic acid and Mineral oil.
- Caustic soda
- Lanolin
- Acetyl alcohol
- Petroleum jelly
- De-ionized water
- Butyl Paraben
- Dehydrated wax
- Stearic acid
- Mineral oil.
Purchase
Equipment
You need equipment for your store, office or factory.
Purchase the necessary manufacturing equipment and hire experienced machine
operators.
The production line could be manual, semi-automated or fully-
automated. You could use locally fabricated equipment or buy branded equipment.
You should buy a truck to transport both raw materials and finished products.
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