An entrepreneur in Nigeria only needs to look at the number of ladies that wear hair extensions on any given day to realize a booming market that is worth a lot of money. One of the challenge that most entrepreneurs face in trying to setup businesses such as hair extension selling is the myth of funding.
So, this article is actually a two pronged piece that will take care of sourcing funds for this business and starting the business. Those who are hair enthusiasts and stylists will find this article of great use.
Funding Hair Extension Business in Nigeria
All funding challenges as regards starting up a business are solved to a great extent when the business owner knows the intricacies of the business. The human hair extension business is not an exception. Here are a couple of routes you can take depending on your current standing :
Secured Personal Loan
Many people shudder when they hear loan. All I can say is calm down. Even the wealthiest people on earth are serial loan collectors.
In accessing a secured personal loan, the bank gives you a cheque in exchange for collateral such as a property or even your savings account. If you’re not able to pay back the loan, the bank can repossess whatever collateral you use.
If you own a growing and thriving beauty saloon, you could decide to use your saloon outfit as collateral. Most times banks are the way they are because they don’t trust must business owners to pay back the money loaned to them. Using your saloon as collateral, is a sign of commitment.
For those that don’t have properties, your savings account can be used however this is subject to its worth and the amount of loan you’re seeking.
No investor overlooks the market, not one. You can decide to tango with a particular colleague of yours who has access to funds to team up with you to grow your hair extension business.
You may come up with an agreement that states that you’ll pay the fellow interests or installments of his money’s worth after six months of giving you the required funds. This tip is highly dependent on who you’re dealing with and his risk willingness state of mind.
You can decide to build a cooperative around your hair extension business with your colleagues at work. There’s a need to have a set time of delivery of every one’s share of the spoils. This means you have to be very open and transparent.
Now how are hair extensions sourced?
Nigeria is one of the biggest importer of human hair extensions in Africa. There are basically two major countries where hair extensions are sourced for the Nigerian market Brazil ( Brazilian hair source) isn’t one of them.
You see, Brazil is an import dependent hair extension country just like Nigeria. What Brazil and other countries like Peru do is to import hair from these two countries and then rebrand then for export to countries like Nigeria at double the price they imported theirs.
So who are the hair extension kingpin countries? I’m sure you guessed right.
China is the largest supply haven of human hair in the world. Majority of their population are women hence the supply is ample and can overtake demand 5 times over.
Poor Chinese women are known for selling their hair to human hair collectors for a fee. It’s a booming market such that neighboring countries around China often come to there to sell hair as well.
Due to the high demand from countries like Brazil, some business men ship human hair to other countries with the Brazilian hair tag.
India follows closely behind China in human hair supply. They have the supply ( women hair) due to their ever increasing population.
Most hairs from India are sourced from their temples especially during Hindu pilgrimage journeys where the female worshippers are required to shave their hair as a sign of contrition. The hair sourced from India are usually chemical free hence their high demand.
The business of Human Hair Extensions in Nigeria
There are Nigerians who are living in these countries where this hair extensions are processed and shipped. Most of them have dealers and agents in Nigeria who help to accept shipment for onward distribution and sales. Knowing one of such folks, can help you learn the ropes of sourcing quality hair extensions to ship. Most of the sourced hairs are natural and haven’t been mixed with chemicals. Getting the source right is key.
If you’re are a hair specialist or stylist then you’re the toasts of exporters. Once you can assure those who ship the products into to the country that you have a solid market network that can absorb a certain quantity in a given circle, you’re sure to make a good deal of money.
Not to worry if you don’t have much money to start on this scale. Exporters have been known to partly finance importers distribution with the guarantee of more market to patronize.
Setting up shop in a city like Lagos is a business decision that is bound to increase revenue. Their are beauty salons who buy this imported products for as much as 30 million or more. Having such people as your patrons is good for business.
Do share if you found this article worth reading. Your questions are also encouraged.