A good number of cancer patients experience hair loss, also referred to as alopecia, as a result of undergoing treatment. While this is a common side effect of cancer treatment, losing one’s hair can still be a very massive emotional challenge. Although the hair of cancer patients tends to grow back shortly after they are finished with their treatments, however, many still turn to head coverings such as wigs, turbans, and scarves until the hair starts to grow back.
Wigs used by cancer patients are most often purchased from specialized wig stores. Have it in mind that this type of business has low competition, and it’s one you may be able to operate part-time if you wish. If you intend to startup in a busy city, then your chances of acquiring more customers are increased.
Steps on How to Start a Medical Wig Business for Cancer Patients
Table of Content
Conduct Market Research
It is very important to carry out extensive market research when looking to start this business. This will help you understand what your clients prefer. Note there is a wide range of wigs such as those made from wool, feathers, synthetic materials, and human, horse, or buffalo hair.
You will also need to secure a reliable wholesale supplier and negotiate the best prices to maximize your profits. You will need to establish networks with hospitals and medical centers in your area so that they can refer patients who have lost their hair to your shop.
a. Who is Your Target Audience?
For a medical wig business for cancer patients, the demographic and psychographic composition is explicitly defined. Most often, these businesses cater to the need of ladies and children who are undergoing chemotherapy. A good number of women and children find that wearing a wig gives them a sense of normalcy and consistency during cancer treatment.
It can also offer some sort of privacy especially since it may prevent people from asking questions about appearance and diagnosis. A good number of these target audiences prefer to experiment and have fun with different wig styles and colors, or to alternate wearing a wig and other head coverings, such as hats, turbans, or scarves.
b. Is Medical Wig Business a Profitable Business?
Yes, the medical wig business is lucrative. Have it in mind that most wig stores have a single location, with some being just part-time businesses run by one person. However, when started and managed very well, a wig business can grow to become a franchise with locations throughout a region—or even the entire country.
c. Are There Existing Niches in the Industry?
No, there are no existing niches in this business. However, to effectively compete with bigger beauty supply stores and internet retailers, you must differentiate your company by offering high-quality customer service. Extra services such as wig customization and maintenance can draw in customers with specialized needs. Whether you specialize in high-end human hair or cheaper synthetic wigs, always remember to pay attention to current styles.
d. Who are the Major Competitors?
- Halo Hair Extensions
- Heat Free Hair Extensions
- Galaxy 5000
- Boho Exotic Studio
- Babe Hair Extensions
- Cinderella Hair Extensions
- Hotheads Hair Extensions
- Great Lengths Hair Extensions
- Donna Bella Hair Extensions
- Klix Hair Extensions
- Indique Hair Extensions
e. Are There County or State Regulations or Zoning Laws for Medical Wig Business?
Yes, laws and regulations vary by where you live and the sort of business structure you form. State rules are known to govern the registration and licensing of businesses, as well as zoning Laws. Owing to that, you must ensure that your medical wig business complies with local zoning ordinances. This is certified when you apply for your business license, but in some places, you need to double-check with the city or county zoning department.
f. Is There a Franchise for Medical Wig Business for Cancer Patients?
No, there are no pronounced franchises in the medical wig business for cancer patients. When looking to start this business, have it in mind that you are left with starting from scratch. This is because this sector is still pretty much young and there are loads of opportunities available to aspiring entrepreneurs.
g. What Do You Need to Start a Medical Wig Business?
- Adequate Research
- Reliable Supplier
- Necessary Licenses and Permits
- Ecommerce Marketplace or Platforms
- Customer Acquisition Plan
- EIN (Employer Identification Number)/Federal Tax ID Number
Choose a Memorable Business Name
- Perfect Wig Shop
- Dearest Hair Care
- Love Weaves Mark
- Princess Hairs
- Synthetic Beauty Shop
- Curl Suppliers
- Virgin Hair Store
- Curl and Beauty
- Fitted House of Extensions
- Lovers Salon
- Home of Elegance
- World of Comfort
- The Hair Wizard
- The Curly Lady
- Fusion Locks LLC
- Synthetic Edge
- Trusted Hair Merchant
- Wigs and Pride
- Manny Wig Shop
- Texas Pride
Register your Business
a. What Type of Business Structure is Best for Medical Wig Business?
When it comes to starting a medical wig business for cancer patients, the legal entity you choose will determine how you run and manage the business. Note that some businesses in this sector are set up as nonprofit organizations, while some are structured as LLCs to protect owners from personal liability.
Nonetheless, the LLC remains the ideal option to consider, especially since it is simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings, and other managerial formalities.
b. Steps to Form an LLC
- Select a Name for Your LLC.
- File Articles of Organization.
- Designate a registered agent.
- Decide on member vs. manager management.
- Put together an LLC operating agreement.
- Comply with other tax and regulatory requirements.
c. What Type of License is Needed to Open a Medical Wig Business?
Here are a few basic licenses to consider.
- General Business License
- Zonal Permits
- Seller’s permit
- Sales tax license
- Home occupation permit
- Cosmetology or esthetician license
d. What Type of Certification is Needed to Open a Medical Wig Business?
Truth be told, there are no specific certifications needed to start a medical wig business for cancer patients. However, you should consider taking a course in a cosmetology school and ideally become a certified beautician. Other certifications to consider include:
- Certified Sales Professional (CSP)
- Certified Medical Office Manager (CMOM)
- Nationally Certified Medical Office Assistant (NCMOA)
e. What Documents are Needed to Open a Medical Wig Business?
- Business License
- Tax Identification Number
- Health Inspection Certificate
- Business Plan
- IRS tax exemption (for nonprofits)
- Articles of incorporation (for nonprofits)
- Employment Agreement (offer letters)
- Operating Agreement (for LLCs)
- Insurance Policy
f. Do You Need a Trademark, Copyright, or Patent?
In this line of business, you might not need to file for intellectual property protection/trademark especially since you can start this business without having to challenge anyone for illegally making use of your company’s intellectual properties.
However, if you are looking to safeguard your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can consider filing for intellectual property protection with the USPTO.
Do your Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Medical Wig Business for Cancer Patients?
The cost of starting a medical wig business for cancer patients will depend on whether you are opening an online or physical store. The two biggest expenses are for a storefront (either online or physical) and inventory. Experts recommend having a startup amount of between $2,000 and $10,000.
b. What are the Cost Involved?
- File Hosting Service: $299
- Email marketing tool: $100
- Accounting & Invoicing Software: $50
- Project Management Software: $25
- Internal Communication Tool: $20
- Design Programs & Software: $50
- Payroll Software: $200
- Upfront Costs For Inventory: $5,000
- Inventory Storage: $5,000
- Package Design: $3,000
- Cost Max Cost
- Customer Research & Surveys: $300
- Affiliate Marketing Commission & Fees: $250
- Influencer Marketing: $750
- Google Ads: $300
- Facebook & Instagram Ads: $350
c. What Factors Determine the Cost of Opening a Medical Wig Business?
- Business license and permits
- Business structure and registration
- Rent, renovation, and furnishing of the store
- Number of employees
- Advertising and marketing plan
d. Do You Need to Build a Facility?
When it comes to needing a store facility, the choice will depend on your financial capacity. However, to be on the safe side, it is advisable to start with a short-term rent/lease while test running the business in the location. With time and if things work out as planned, then you invest on a long-term lease or straight up purchase the property.
e. What are the Ongoing Expenses for Running a Medical Wig Business?
- Rent and utilities (for physical stores)
- Website costs (for online stores)
- Employee expenses.
f. What is the Average Salary of your Staff?
- Chief Executive Officer: $56,311
- Quality Assurance Manager: $49,820
- Human Resources and Admin Manager: $46,700
- Sales and Marketing Team: $43,570
- Accountant: $42,870
- Purchasing Manager: $40,914
- Store Manager: $36,560
- Delivery Driver: $32, 450
- Customer Service Executives: $31,980
- Security Guard: $23,611
g. How Do You Get Funding to Start a Medical Wig Business?
- Bank loans
- SBA-guaranteed loans
- Government grants
- Venture capital
Write a Business Plan
a. Executive Summary
Curls and Beauty is a well-established wig supply store that offers a wide range of hair care services, products, wigs, and hairpieces primarily to cancer patients. We aim to provide top-quality hair and beauty products to recovering cancer patients who are eager to look their best.
At Curls and Beauty, we believe that what will set us apart from any wig supplier is our commitment to a specific market, continued education, providing the latest hair care and replacement techniques, along with other related services, at a convenient location.
b. Products and Service
- Wigs and hair products
- Hair replacement
- Other Hair Styling and Skin Services
- Massages, aromatherapy, and craniosacral therapy.
c. Mission Statement
At Curls and Beauty, our mission is to make available skilled services, through talented employees, that give our customers the dignity and self-respect needed to be successful in the world today.
At Curls and Beauty, our vision is to offer a vast range of wig supplies, hair styling, and beauty care in the same location.
d. Goals and Objectives
We at Curls and Beauty believe that our establishment will be more than just a full-service hair and wig store providing excellent hair care and quality products, in a peaceful, relaxed atmosphere. We intend to offer a genuine hand of service to recovering cancer patients in a friendly work environment.
e. Organizational Structure
- Chief Executive Officer
- Quality Assurance Manager
- Human Resources and Admin Manager
- Sales and Marketing Team
- Purchasing Manager
- Store Manager
- Delivery Driver
- Customer Service Executives
a. SWOT Analysis
- Skilled and experienced staff
- Full-scale salon, not just wig and hair supplies
- New location, with high visibility
- Specific market and well-tailored marketing plans
- New business
- Low sales revenue
- Untested branding strategy
- Some budgetary limitations
- Precise target audience
- New option
- A growing population of old people and cancer patients
- Other wig supply businesses
- Fragile market
b. How Do Medical Wig Businesses Make Money?
Just like a normal wig store, a medical wig business for cancer patients makes money by selling wigs to recovering cancer patients.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Showcase wig products to businesses that cater to cancer patients e.g. Hospitals and doctor’s offices
- Extraordinary offers, especially convincing, and adjustable bundles that draw in clients.
- Extensively showcasing efforts and utilization of both nearby media just as advanced channels to spread business.
- Offer periodic offers to faithful clients to keep utilizing the products.
- Ensure that every client gets singular regard for their needs.
a. How Much Should You Charge for your product/Service?
You need to understand that the price of wigs varies a lot. For instance, medical wigs from Godiva’s Secret start at $149, while custom medical wigs from Celebrity Hair and Beauty run between $800 and $3,500.
b. How Much Profit Do Medical Wig Businesses Make a Year?
The profit made by the medical wig business for cancer patients’ owners will surely depend on the price point of the wigs the business sells and its volume. Most often, businesses selling custom medical wigs can bring in over $10,000 per month in revenue.
c. What Factors Determine the Amount of Profit to Be Made?
- Business Size
- Marketing and Customer Retention Strategies
- Business Agreements
d. What is the Profit Margin of a Medical Wig Business?
According to experts, a wig store’s profits depend on the price point of the wigs, its volume and it will differ by sales price, location, and business mark-ups. However, regardless of all these factors, a profit margin of 25 percent is what most medical wig stores make.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $88,000
- Second Fiscal Year (FY2): $180,000
- Third Fiscal Year (FY3): $390,000
Set Up your Shop
a. How Do You Choose a Perfect Location for Medical Wig Business?
You first have to realize that the location of your medical wig business will go a long way to determine the number of clients that view your products. Owing to that, you must go for a commercial retail space that has high foot traffic. Also, ensure that the location has adequate parking for your customers.
b. What State and City are Best to Open a Medical Wig Business?
- Sacrament, California
- Detroit, Michigan
- Chicago, Illinois
- Minneapolis, Minnesota
- Corpus Christi, Texas
- Sioux Falls, South Dakota
- Kansas City, Missouri
- Boston, Massachusetts
- Albuquerque, New Mexico
c. What Equipment is Needed to Operate?
There are no special technologies or equipment needed to run this type of business except for Point of Sales (POS) Machines, shelves, and software applications. In addition, you will also need computers/laptops, an internet facility, a telephone, a fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
A good number of medical wig stores can be managed by a single person. Business owners may, however, consider hiring at least one additional employee to help with the day-to-day tasks of seeing to the needs of customers. This will enable the business owner to focus on growing the business.
Launch the Business Proper
After you must have done all things necessary to start your business, you should consider opening your business effectively and attracting the range of clients you want. You also have to prepare for launch by reviewing and improving some key elements of your business including;
- Essential software and tools
a. What Makes a Medical Wig Business Successful?
A medical wig business for cancer patients can differentiate itself from competitors by offering superior quality wigs to its clients. To do so, it’s important to find manufacturers that make realistic-looking wigs that will last for a long time. Other things to ensure the success of this business include;
- Choose a good location and shop facility to launch the business
- Make sure your shop is stocked with different brands and types of wigs
- Ensure to be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your wig store
- Leverage on all available online and offline platforms to promote your wig store
b. What Happens During a Typical Day at a Medical Wig Business?
Have it in mind that a medical wig business owner will have to invest a good amount of time directly assisting cancer patients who are looking for wigs. Their duties 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 seeing to the needs of customers directly, these owners spruce up displays (for physical stores), take product photos, order additional inventory, market their store, and complete administrative tasks.
c. What Skills and Experience Do You Need to Build a Medical Wig Business?
- Time Management Skills
- Adaptability Skills
- Accounting Skills
- Creativity Skills
- Strategy Skills
- Customer Service Skills
- Sales Skills