31 Tips to Start a Profitable Wig Cap Making Business

Wig cap: Wig making takes a lot of time, but the results are worth it. While you can always buy a pre-made cap to sew or ventilate the fibers onto, there is no guarantee that it will fit you. Making your own wig cap will ensure that you have a good base that fits you perfectly. For that, however, you will either need a custom-sized wig head or modify an existing wig head to match your measurements. If you work off of a standard wig head, the wig cap (and resulting wig) may end up being too small!

Read on: 41 Things to Do for your Hair Where there is no Stylist

Wig cap: BusinessHAB.com

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Many people wear wigs to either make a fashion statement or replace hair they’ve lost due to a medical condition. Wig store businesses are where individuals can go to purchase the wigs they want. According to IBISWorld, the wig and hairpiece industry brings in $224 million annually, and there are under 700 businesses in the industry.


1. Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns.

2. What are the costs involved in opening a wig store?

The startup expenses for a wig business are relatively minimal. The two largest expenses are for a storefront (either online or physical) and inventory.

Regardless of whether they’re opening an online or physical store, business owners have ways to keep their storefront costs low. Owners who are starting up online stores can find a user-friendly platform that lets them design the store themselves at a relatively low cost.

Owners who are opening a physical store can choose a location in a low-rent area. There aren’t a lot of wig stores, and customers who want wigs will usually seek out actual stores. For this reason it’s not necessary to be in a high-traffic and high-rent area.

See also: 8 Tips to Get the Best Nail Care Treatment

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3. Get business’ inventory costs

A business’ inventory costs depend directly on how many wigs the business owner wants to carry. Online store owners can limit how many wigs they keep on hand by finding a supplier who offers quick shipping and who is willing to sell only a few items per order. With such a supplier, a business can keep just a few wigs on hand and order more as wigs sell.

Owners of physical stores can limit the number of wigs they have in the store by offering custom wigs. When offering custom-made wigs, businesses just need enough to show customers the different options that are available, and then the final product can be ordered once the customer has made his or her selection.

4. Know the ongoing expenses for a wig store

The ongoing expenses for a wig store business include rent and utilities (for physical stores), website costs (for online stores), the price of additional inventory and any employee expenses.

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5. Know the targeted market

A wig business’ ideal customer is someone who cares about their appearance, wants a different hairstyle and has discretionary income. Such as person not only is interested in wigs, but has money to either purchase one or more higher-quality products.

6. Know how wig store make money

A wig store makes money by selling wigs to customers. Wigs are typically sold on a per-piece basis.

Read also: 41 Things to Do for your Hair Where there is no Stylist

7. Know how much you can charge your customers

The price of wigs varies a lot. Trendy Hair Gallery, for example, charges around $40 for many of its fashion wigs. In contrast, medical wigs from Godiva’s Secret start at $149.

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8. How much profit can a wig store make?

A wig store business’ profits depend on the price point of the wigs the business sells and it’s volume. On the high end, businesses selling custom medical wigs can bring in over $10,000 per month in revenue. Businesses selling $40 fashion wigs likely won’t have enough sales to make this much each month, but they can have a steady revenue—and they often see a significant bump in sales around Halloween.

9. Know how to make your business more profitable

A wig business can increase its average sale by upselling hair accessories to use with the wigs it sells. Businesses that sell high-end medical wigs may also offer to wash wigs, for which businesses often charge around $20.

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10. What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Wig Store Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state’s business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It’s very important to secure your domain name before someone else does.

Read on: 17 Tips to Open a Profitable Hair and Nail Salon Business

11. Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business’s name (instead of yours), better interest rates, higher lines of credit, and more.

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12. Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business’ expenses all in one place.
  • Build your company’s credit history, which can be useful to raise money later on.

 13. Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

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14. Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

15. State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a wig store. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

See also: Grooming Centre: The Best Place to Get Your Hair Cut and Groomed in Nigeria

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16. Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

17. Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors. If you aren’t feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we’ll give you helpful tips and advice for creating the best unique logo for your business.

18. How to promote & market a wig store

Social media marketing (SMM) is one of the most effective ways to advertise and promote a wig business. SMM costs very little, lets store owners showcase their wigs (both on mannequins and real people) and gives stores owners a way to specifically target the demographic they cater to.

See also: 18 Tips on Joining a Hair Salon Franchise

19. How to keep customers coming back

A wig business can differentiate itself from competitors by offering superior quality wigs. To do so, it’s important to find manufacturers that make realistic-looking wigs that will last for a long time.

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20. Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites – full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

21. Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you. There are many services available to entrepreneurs who want to set up a business phone system.

Read on: 28 Tips to Start Hair Care Extensions, Wig & Accessories Retailing Business

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22. Know if the Business is Right For You

Anyone who is passionate about hairstyles and enjoys interacting with people may be well-suited for running a wig store. The work requires a knowledge of current hairstyles, and business owners often work directly with customers who want wigs.

Business owners can start a wig store business while working another job full-time. Running a physical retail store while keeping another job likely isn’t possible, but business owners can start up an online store or offer in-home consultations. Both of these models could be managed during evenings and weekends.

23. Get to know the activities involved

A wig business owner spends much of their time directly assisting customers who are looking for wigs. This may include:

  • answering questions about different types of wigs
  • showing customers wigs that are available
  • making sure wigs fit properly
  • demonstrating how to properly care for wigs

When not serving customers directly, business owners spruce up displays (for physical stores), take product photos, order additional inventory, market their store and complete administrative tasks.

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24. Get some skills and experiences that will help you build a successful wig store

In addition to the standard skills required to run a business, including salesmanship, financial planning, time management, and strong interpersonal skills, wig business owners must be abreast of current fashion trends. Subscribing to fashion magazines that are targeted to a store’s main demographic is a good and affordable way to remain current on trends.

For example, the owner of a wig store that caters to young women might want to subscribe to Vogue, Harper’s Bazaar or InStyle. An owner of a business that sold wigs to women who were a little older may want to subscribe to O, the Oprah Magazine or More.

Business owners who want to keep their operating expenses as low as possible can periodically visit these sites rather than subscribe to the magazines. Having the magazines in a store, however, may help a business owner show customers the latest trends and how their wigs match those trends.

Read also: 13 Fastest Hair Care Tips

25. Know the growth potential for a wig store

Most wig stores have a single location, with some being just part-time businesses run by one person. In theory, however, a wig store could become a franchise with locations throughout a region—or even the entire country.

26. Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

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27. Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

28. Get some insider tips before going into the business

In order to be successful, a wig store should find its niche within the industry. Typically, wig businesses sell either fashion or medical wigs. Fashion wigs are used to make fashion statements, while medical wigs are usually purchased by people undergoing chemotherapy to replace lost hair.

There are ways to further specialize within each niche. For instance, Allure & More specializes in offering different lace options to match different skin tones. (Lace wigs are used in the medical wig niche.) A fashion wig business might specialize in wigs from certain decades, like the 50s or 80s.

See also: What Hair Care does Kenya Moore(Read the 19Tips)

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29. Know how and when to build a team

Many wig stores can be run by a single person. Business owners may, however, want to hire at least one additional employee to help with the day-to-day tasks of serving customers, so that the business owner can focus on growing the business. This employee can be hired once the business brings in enough revenue to pay them.

30. More tips

  • You can find many of the supplies in beauty supply shops and wig shops. Online stores that specialize in wig making supplies may also carry the products that you need.

  • The exact type of lace you use depends on the type of wig you are making. If you are just sewing tracks onto the wig, weaving lace will work just fine. If you are making a ventilated wig, you’ll need something finer.

    See also: 9 Tips to Get the of Melanin Hair Care Products

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31. Get the Equipment

  • Nylon wig cap (optional)
  • Plastic wrap
  • Clear packaging tape
  • Permanent marker
  • Scissors
  • Styrofoam wig head
  • Wig stand
  • Sewing pins
  • Weaving netting, ventilating lace, etc.
  • Sewing machine
  • Thread

Get more ideas with our Business Ideas Generator.

Check out our How to Start a Business page.

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