Hair lice removal businesses engage in hair lice removal and scalp treatment services. Some even offer nonsurgical treatments for hair loss and replacement. Studies show that the lice treatment market was projected to grow at a CAGR of 6.6 percent over the forecast period.
The major factor attributing to the growth of the market is the increasing prevalence of head lice infestation, especially among school children. Therefore, the increasing population of children is also a driving factor in the market.
A survey conducted by the United Nations in 2019 shows that the number of children below 14 years is expected to cross 2.02 billion and reach 2.06 billion by 2050. This huge number of people who are prone to lice infestation increases market growth. A study conducted by Moussa Soleimani-Ahmadi for BMC Dermatology, in 2017, stated that the prevalence of head lice infestation was 67.3 percent in Iran.
Steps on How to Start a Hair Lice Removal Business in 2022
Table of Content
1. Conduct Market Research
The first step in the market research process for your hair lice removal business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business, and also help you operate your hair lice removal business with less stress, and of course build the business to profitability.
a. Who is the Target Market for Hair Lice Removal Business?
The target market for hair lice removal business should include public and private schools, orphanages, and halfway houses within the location where your hair lice removal company is located.
b. Is Hair Lice Removal Business a Profitable Business?
Yes, the hair lice removal business is profitable because there is a large global market for hair lice removal services. According to Childtrends.org, in 2017, there were 73.7 million children younger than 18 in the United States that were infested with lice, coming up to 22.6 percent of the total population. This number is projected to increase to 79.9 million in 2050. As per the statistics, the high prevalence and high disposable income propelled market growth in the region.
c. Are There Existing Niches in the Industry?
There is no niche area in the hair lice removal business because the business is a niche area in the hair loss treatment industry.
d. Who are the Major Competitors?
- Lice Free Noggins NYC
- Lice Clinics of America
- Lice Troopers Lice Removal & Lice Treatment
- The Dublin Lice Nanny-Lice Treatment
- Lice Busters – Lice Removal NYC
- Lice Lifters: Best Professional Head Lice Treatment Salons
- Head Lice Archives – Lice Clinics of America
- Pediatric Hair Solutions – Lice Removal Services
- Thousand Oaks Lice Treatment
- Ladibugs LLC Lice Removal
- Lice Squad
- Lice Ladies Franchise
- Hero Lice Clinics
e. Are There County or State Regulations or Zoning Laws for Hair Lice Removal Business?
There are no county or state regulations or zoning laws for hair lice removal business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
f. Is There a Franchise for Hair Lice Removal Business?
Yes, there are franchise opportunities for the hair lice removal business, and here are some of them;
- Ladibugs LLC Lice Removal Franchise
- Lice Lifters Franchise
- Lice Clinics of America Franchise
- Lice Squad Franchise
- Lice Ladies Franchise
- Hero Lice Clinics Franchise
g. What Do You Need to Start a Hair Lice Removal Business?
- A Feasibility Report
- Business Plan
- Business Licenses and Permits
- EIN (Employer Identification Number)/Federal Tax ID Number.
- Salon facility
- A Corporate Bank Account
- Lice removal equipment and tools (e.g., Simxen V COMB Capture 4 Filter, gown, and glove)
- Lice treatment and removal supplies
- Startup Capital
Memorable Name ideas for Hair Lice Removal Business
- Lice Pro© Lice Removal Company, Inc.
- Lice and More® Hair Treatment Company, Inc.
- Jake Eson© Lice Removal Company, Inc.
- Lice Killers® Lice Removal Company, Inc.
- Hair Clean™ Lice Removal Company, Inc.
- Kyle Kone™ Lice Removal Company, LLC.
- Head Start© Lice Removal Company, LLC
- We Remove® Lice Removal Company, Inc.
- Doctor Lice© Lice Removal Company, Inc.
- Like Pro© Lice Removal Company, Inc.
- Total Kill® Lice Removal Company, Inc.
- Cleanest Group® Lice Removal Company, Inc.
- Danton Group® Lice Removal Company, Inc.
- Nelly Don® Lice Removal Company, Inc.
- The Eliminator® Lice Removal Company, Inc.
- Rapid Cure© Lice Removal Company, Inc.
- Lucy and Co™ Lice Removal Company, LLC
- Paddington® Lice Removal Company, Inc.
- Captain Lice® Hair Treatment Company, Inc.
- Crystal Clear™ Lice Removal Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Hair Lice Removal Business?
Although there are some options when it comes to the business structure of a hair lice removal business, the one that most players usually consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Hair Lice Removal Business?
- General Business License
- Health and Safety Permit
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections (If you have a salon)
d. What Type of Certification is Needed to Open a Hair Lice Removal Business?
These are some of the certifications you can work towards achieving if you want to run a hair lice removal company;
- The Lice Treatment Center® (LTC) Certification Program
- Lice Technician Online Certification By Lice Treatment Center
- Lice Technician Certification
e. What Documents are Needed to Open a Hair Lice Removal Business?
These are some of the basic legal documents required to legally run a hair lice removal business in the United States of America;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a hair lice removal business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Hair Lice Removal Business?
When it comes to starting a hair lice removal business, the startup costs range from $2,000 to $80,000 depending on how much equipment the business owner decides to purchase. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Cost Involved in Starting a Hair Lice Removal Business
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the hair lice removal business for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance – $2,400.
- The cost for renting or leasing and equipping a salon – $20,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational cost for the first 3 months (salaries of employees, payments of bills and fueling et al) – $10,000
- The cost for the purchase of lice removal equipment and tools – $5,000
- The cost for start-up inventory – $3,000
- The cost for the purchase of storage hardware (bins, rack, and shelves) – $3,720
- The cost for store equipment (cash register, security, ventilation, signage) – $1,750
- The cost of purchase and installation of CCTVs: $2,000
- The cost of launching a website: $600
- Miscellaneous: $2,000
c. What Factors Determine the Cost of Opening a Hair lice removal business?
- The size and type (mobile and salon-based) of the hair lice removal business
- The choice of location
- The required licenses and permits
- The type of salon facility (rent, lease, or acquired)
- The additional service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the hair lice removal business
- The cost for furnishing and equipping the hair lice removal business
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your hair lice removal business because you are expected to go out in the field to offer your services. You may just decide to operate from a small salon or just lease a storage facility for your working tools and equipment.
e. What are the Ongoing Expenses of a Hair lice removal business?
- Cost of supplies such as hair cleaning chemicals and shampoos, cleaning towels, disposable gowns, hand gloves, facemask et al
- Utility bills (gas (fueling for utility truck, internet, phone bills, signage and sewage et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $35,000 per year
- Accountants (Cashiers) – $25,000 per year
- Lice Removal Technicians – $23,000 per year
- Utility Truck Driver – $21,150 per year.
g. How Do You Get Funding to Start a Hair Lice Removal Business
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and your friends.
Write a Business Plan
a. Executive Summary
Golden Care® Hair Lice Removal, Inc. is a U.S based hair treatment and lice removal salon. We have been able to secure a standard salon facility in a central residential estate in Westchester County – New York. We are set to compete in the highly competitive and fragmented hair loss treatment and lice removal industry not only in Westchester County – New York but also throughout the United States.
b. Products and Service
- Hair lice removal
- Providing hair treatment
- Providing scalp treatment services
- Hair treatment merchandise
c. Mission Statement
Our mission is to provide professional hair treatment and lice removal services. We want to build a hair lice removal salon that can favorably compete with other leading brands in the Hair loss treatment and lice removal industry.
Our vision is to build a hair lice removal salon that will be a household name in Westchester County – New York and throughout the United States of America.
d. Goals and Objectives
The goals and objectives of the hair lice removal business are to help people get rid of lice from their hair and to make them enjoy life without itching continuously.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Accountants (Cashiers)
- Lice Removal Technicians (Cleaners)
- Utility Truck Driver
a. SWOT Analysis
The strength of the Hair lice removal business is that we have certified lice removal technicians under our payroll. We use patented, safe and effective heated air to have you lice and egg-free in a single, one-hour clinic visit. So also, we operate in a location where people are prone to lice infection.
Having extra finance to open chains of hair lice removal salons and hiring some of the finest hair treatment and lice removal experts might be what will count as a weakness for our organization.
The fact that pharmaceutical companies will invest heavily in the R&D of FDA-approved hair lice removal prescriptions means that the industry is full of opportunities.
The presence of well–established hair lice removal salons and complementary businesses that also carry out hair treatment and lice removal services within the location we intend to start our business is one of the major threats that we are going to be confronted with. We have been able to put in place strategies that will help us win a fair share of the available market in Westchester County – New York.
b. How Do Hair Lice Removal Companies Make Money?
Hair lice removal services make money by charging their clients when they offer hair lice removal services, provide scalp treatment services, and sell hair treatment merchandise.
c. Payment Options
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your hair lice removal salon by sending introductory letters alongside your brochure to households and key stakeholders in and around your city
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, and train stations et al.
- Use friends and family to spread the word about your hair lice removal salon
- Post information about your hair lice removal salon on bulletin boards in places like schools, libraries, and local coffee shops.
- Advertise your hair lice removal salon in relevant beauty magazines, newspapers, TV stations, and radio stations.
- Engage direct marketing approach
- Encourage word-of-mouth marketing from loyal and satisfied clients.
a. How Much Should You Charge for your Product/Service?
The amount to charge for your hair lice removal services should depend on some factors. For $85 per hour, a professional Hair Fairies specialist can comb through the hair, meticulously picking out each nit and removing lice completely – often in a single session.
b. How Much Profit Do Hair Lice Removal Business Owners Make a Year?
A typical hair lice removal business owner will make between $2,125 to $3,791 per week ($25,000 to $45,000 per year).
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the hair lice removal business
- The location the hair lice removal business is covering
- The management style of the hair lice removal business
- The business approach of the hair lice removal business
- The advertising and marketing strategies adopted by the facility
- The number of years the facility has been in business
d. What is the Profit Margin of a Hair Lice Removal Business?
The profit margin of a hair lice removal business is not fixed. It usually depends on some factors that are unique to your location. It could range from 45 percent to 80 percent depending on the number of lice to be removed and of course the time, equipment, and supplies required to carry out the service.
c. What is the Sales Forecast?
Below is the sales forecast of a hair lice removal business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year (FY1): $120,000
- Second Fiscal Year (FY2): $180,000
- Third Fiscal Year (FY3): $200,000
Set Up your Office
a. How Do You Choose a Perfect Location for your Hair Lice Removal Business?
- The demography of the location especially as it relates to the rate of lice infections
- The demand for hair lice removal services in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of hair lice removal businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Hair Lice Removal Business?
- San Francisco, California
- New York City, New York
- Miami, Florida
- Los Angeles, California
- Honolulu, Hawaii
- Chicago, Illinois
- Philadelphia, Pennsylvania
- Dallas, Texas
c. What Equipment is Needed to Operate a Hair lice removal business?
You should be prepared to purchase; Simxen V COMB Capture 4 Filter, gown and glove), inventory management software, and other relevant software applications. You will also need computers and laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
When it comes to hiring employees for a standard hair lice removal business, you should make plans to hire a competent Manager (you can occupy this role), Accountant, Lice Removal Technicians, and Van Driver.
Launch the Business Proper
You can decide to open your hair lice removal company with a party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. With a proper launching of the business, you would have officially informed people in your city that your hair lice removal service is open for business.
a. What Makes a Hair Lice Removal Business Successful?
- Choose a good location and salon facility to launch the business
- Make sure your hair lice removal technicians utilize safe lice elimination practices
- Throw an open house party before officially opening the business
- Be deliberate with your marketing
- Encourage the use of word of mouth to promote your hair lice removal business
- Leverage all available online and offline platforms to promote your hair lice removal business
b. What Happens During a Typical Day at a Hair Lice Removal Business?
- The hair lice removal salon is open for the day’s work
- The jobs to be done for the day are reviewed and all the needed materials are put together
- When clients walk in, they are attended to
- Lice removal technicians are transported to locations to remove lice from their customer’s hair as requested
- Staff return back to the office and reports are written and submitted
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Hair Lice Removal Business?
- Ability to Pay Attention to Details
- Good managerial and human development skills
- Good Accounting and Bookkeeping Skills
- Visionary Leadership
- Team-building & Interpersonal Skills.
- Excellent communication and negotiation skills.
- Organizational skills.
- Problem-solving ability.
- Good Supervisory skills
- Experience in managing hair treatment and lice removal business
- Experience in managing people
- Experience in business administration