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How to Start a Hair Extensions Business

How to Start a Hair Extensions Business

Want to start a hair extensions business but don't know how? Read the tips and legalities you should consider when starting your hair extensions business.

2nd April 2019

Hair extensions are quite popular with an increasing demand for aesthetics. They can be used for music festivals, cosplay, and even on the daily, depending on the person. It’s important to know the purpose behind your customers’ purchases so that you can cater to their needs. Further, this can also help with marketing and targeting a certain demographic. Starting a business requires a lot of considerations, including fulfilling legal obligations and commitment. So, how can you start a successful business selling hair extensions?

Online or in-Person Store?

In this modern world of technology, selling things has never been easier. Many online platforms and marketplaces such as Gumtree are free and easy to use. Opening a physical store is also possible, but requires more money, dedication and time. It ultimately depends on what vision you have for your company; will it be a part-time or full-time job?

Unless you are passionate about hair extensions and have industry experience, it is likely that you are only planning to operate an online store. If this is the case, then read How to Start an Online Business to know your options when choosing an online platform.

On the other hand, if you intend on opening a physical store selling hair extensions, know the legal documents required when starting a business. It may also be a good idea to diversify so that you are not only selling hair extensions. By offering more products, such as hair glue and other accessories, your customer outreach can expand.

Legal requirements when starting the business

Regardless of which business structure you choose, you must register for an ABN to operate your business. An ABN is a unique number that identifies your business for tax purposes. Your business name should also be unique to avoid copyright issues. This is unless you decide to name your company after your own name. Once you have your ABN, you can then register for GST and PAYG, for tax purposes. The legalities can get confusing, so we recommend consulting a business lawyer today.

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Consider Potential Customers

It’s important to understand who your customers are. There could be many reasons why people are purchasing hair extensions. They may want them for a special function, or for daily use for aesthetic or health purposes. Often, hair can become quite thin due to medical treatments, such as chemotherapy or due to vitamin deficiencies. Consequently, a large fraction of customers may have that shared purpose of purchasing hair extensions. Therefore, it’s important to consider the way you market the product, and know of existing charities that may offer these services for free.

Most hospitals have a “wig library” that loan wigs to patients free-of-charge, to help boost confidence. However, hair extensions are generally not an offer. This is a potential area that can be changed, and this is a great opportunity for your company to have a community aspect to it.

Stand out amongst your competitors

On the other hand, customers can be purchasing hair extensions for social reasons, such as going to a music festival or themed party. Hence, it’d be a good idea to be aware of what upcoming events or holidays are coming up, that may increase customers. For example, there may be an increased demand when nearing towards Halloween or Mardi Gras.

Similar to my article on How to Start an Online Accessories Store, it’s important to use social media as a tool to get your company’s branding out there. Instagram, YouTube and Facebook are free tools to increase your online presence. Further, spending a small sum towards influencers can reap in huge benefits.

It’s important to consider that customers may want to have a feel of your product before committing to its purchase. Therefore, it may be a good idea to offer a free sample to customers. However, this should only be done of course, if your business can afford to do so. As an alternative, the minimum standard is to have excellent customer service. Consequently, you will gain trust and rapport towards customers.

Reliable Supplier

It’s important that the supplier of your hair extensions is reliable and authentic. Suppliers can claim that extensions are human hair, when they are actually horse hair. Therefore, it’s important to ensure that your supplier is trustworthy. Otherwise, you could potentially face legal consequences for false advertising under the Competition and Consumer Act 2010 (Cth).

It’s also important that your supplier is reliable when it comes to shipping. The last thing you want is for customers getting their product later than they anticipated. Additionally, an emphasis should be placed on packaging. The product should be easy to open and easy to use. As for the layout and design, great packaging should reflect the passion you have towards your company. Just like food, if your product is pretty, it will get free advertising through photos on social media.


A business selling hair extensions has potential, but it’s important to make yourself stand out against your competitors. Similar to any other business, legal processes such as registering for an ABN are necessary. However, by knowing your customers and marketing correctly, you can have a competitive lead.

Unsure where to start? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Kimberly La

Kimberly is an intern at Lawpath, who has a passion for advocacy and community service. She currently studies a double degree of Law and Commerce (Economics) and hopes to use her legal knowledge to make effective change in the future.