There are two sides to every story in life and business, most people talk about the glamor, earnings, and presumed easy ways to success, but that’s usually never the case. Like every idea turn into a real business, starting it is the most difficult. You must reach semblance with a few decisions such as brand name picking, raw material sourcing, manufacturing, packaging, branding, federal and state regulations, market testing, domain acquisition, logo design, licensing, inflation, competitors and advertising, etc. In addition, as an entrepreneur, you have to work your butt off to become profitable, especially in a niche such as braided wigs. I could write an entire book about this; however, let’s keep it simple to encourage young entrepreneurs who’d like to venture into the niche.
This article will discuss some of the pros and cons of the braided wigs business in an unstructured order. Since most people talk about only the pros, let’s start with the challenges.
Table of Contents
Before you jump into any business, including braided wigs, you must take a few samples to the market for testing. That will let you know if your product is a winning product or a fail. Take a few pieces to your family and friends to see if they’ll buy. Try testing some knotless braid wigs online on Amazon, eBay, or Etsy if they don’t believe in you.
DECIDING ON A COMPANY NAME
How would you know what business name feels good or speak to the customer? Unless you have some telekinesis superpower, you’ll never know. Most people use their names, family names, or random words to form a company name. Trust me; this is a brain drain that will take a few weeks, months, or years of your life to come up with an excellent company name.
This brain drain will make you question yourself because most braided wig raw materials come from Asia, not China. You’ll run into a language barrier, scam companies, time zone differences, expensive shipping costs, import tax, and the risk of losing your purchase capital should they send you the wrong type of raw materials. I’m not trying to scare you, but this is the part where you’ll be super pissed, and you’ll be barking like an angry dog, lol.
Unless you have considerable capital, you have to start small, and manufacturing is not cheap. After sourcing raw materials, you have to employ staff, or if you are sole propriety and can do everything by yourself, and that’s awesome. If you have to hire skilled braiders, that’s a brain drain too.
Every brand needs a logo that represents them, so you’ll need to design a logo or hire a logo designer to design a logo for you, and that costs money.
Deciding what your package should look like or what color represent your brand is an arduous task too. Excellent tip, It’s best to look for a local package designer and manufacturer to save costs.
DOMAIN NAME SURPRISE
After deciding on your company name, you have to register your company, open a merchant bank account, and start operation. Yay, welcome to the business. Now you want to have an online presence, so you decide to build a braided wig website, only to find out that your company domain name is not available – shocker. Someone else owns it, or it’s parked by domain resellers.
COMPLIANCE WITH FEDERAL AND STATE LAWS
You must comply with state laws such as getting a business permit or state tax ID to sell in the US. This is not a mandatory requirement for a new sole proprietor; however, uncle sam will come knocking when your income reaches a certain threshold.
In economics, inflation refers to a general progressive increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The price of raw materials will keep increasing, and your product price will keep changing too.
The better part of your budget or profit will go into advertising because you have to keep selling to remain in business. For you to sell, you have to find your customers through advertising. Google ad, FaceBook ad, and Media ad are the most effective, said the media representative of Poshglad braided wigs.