Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Wig Store
Decision Snapshot
Wig Store
Idea Score
51
Profit margin
6%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Wig Store business - Background
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.
Our guide is in 3 parts:
- Part 1 - How to start a Wig Store business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
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.
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.
What are 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.
Who is the target 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.
How does a wig store make money?
A wig store makes money by selling wigs to customers. Wigs are typically sold on a per-piece basis.
How much can you charge customers?
The price of wigs varies a lot. Luvme Hair, for example, has “ready-to-go” wigs that start at around $40. In contrast, medical wigs from Godiva’s Secret start at $149.
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.
How can you 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.
Day-to-Day and Growth
What happens during a typical day at a wig store?
A wig business owner spends much of their time directly assisting customers who are looking for wigs. This may include:
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answering questions about different types of wigs
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showing customers wigs that are available
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making sure wigs fit properly
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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.
What are 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.
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.
What is 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.
What are some insider tips for jump starting a wig store?
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.
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.
Part 2 - Is a Wig Store business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Wig Store business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Wig Store Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Wig Store business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.