You need a minimum of $174,230 to open an eyelash business (Medium Scale). That this amount includes the salaries of staff for first 3 months of operation.
Starting an eyelash extension retail business can be very profitable. If your store is located in an area with good human and vehicular traffic, and you have quality eye extensions from different brands, you may not struggle to get people to visit your store.
Studies conducted show that in 2017, the sales of False Eyelashes in the United States were approximately US$206.4 million. In 2018, sales in the US market increased to US$269.7 million. A recent report published by Grandview Research shows that the global false eyelash market value was a total of $1.1 billion in 2018.
You can expect the market to grow at a compound annual growth rate of 5.4 percent between 2019 and 2025. In this article, we will help you with the estimated cost of starting an eyelash extension retail business in your city.
The Estimated Cost to Starting an Eyelash Business
When it comes to starting an eyelash extension retail business, one is expected to spend the bulk of the start-up capital on leasing a facility in an ideal location and stocking the store with different brands of eyelash extensions. Please note that the exact cost of opening an eyelash extension business depends on the size of the store and where it will be located.
These are the key areas where you are expected to spend your start-up capital when starting the 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 accounting services (software, P.O.S machines, and other software) – $1,300.
- Promotion expenses for the grand opening of the eyelash extension retail store at $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for – $3,580.
- The cost for hiring a Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $35,600.
- The cost for shop remodeling (construction of racks and shelves) – $10,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
- The cost for Start-up inventory – $50,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost of purchase of distribution vans – $20,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $2,000
From the rough estimate as listed above, you would need a minimum of one hundred and seventy-four thousand two hundred and thirty USD ($174,230) to establish a medium scale but standard eyelash extension retail business in the United States of America. Please note that this amount includes the salaries of all staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers who are interested in starting opening an eyelash extension retail business to directly contact wholesalers and suppliers of the brands of eyelash extensions they want to retail to get the real-time prices of these items.
The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Factors That Influence The Cost of Opening an Eyelash Extension Business
1. The Type of Eyelash Extension Retail Store
A major factor that will determine the overall cost of opening an eyelash extension retail store in the United States of America is the type of retail store the business owner wants to open.
If you just want to start an eyelash extension retail store that is running from a brick-and-mortar facility, you are going to spend more when compared to an eyelash extension retail business that is strictly online (operating from an eCommerce store).
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The Choice of Location
Another major factor that will determine the cost of opening an eyelash extension retail business in the United States of America is the location. In business, location is a key part of what determines the success of the business. There are business consultants and realtors who are specialized in helping people choose an ideal location for their business.
For example, renting or leasing a facility in a location that is off the city center or major road will be less expensive when compared to renting or leasing a facility in a highbrow area, a location in a metropolitan city with the right demographic composition of people with the purchasing power to buy from you.
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The Required Licenses and Permits
In the United States of America, you cannot open an eyelash extension business without first applying for the mandatory licenses and permits. You will need an operational license, building license, zonal permits, signage permits, and reseller permits amongst others.
These licenses and permits cost money and it will influence the overall cost of opening an eyelash extension retail business in the United States of America.
To get the overall cost of licensing and permits associated with opening a new eyelash extension retail business in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.
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The Type of Facility
The type of facility you want to operate your eyelash extension retail store from is also a major factor that will determine the overall cost of opening the business in the United States of America. As regards the facility, you have the options of renting, leasing or designing and constructing your facility from the scratch.
With renting and leasing a store facility, you might just have to spend extra to modify the facility to fit into what you want, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.
If you want to construct your store from the scratch, you will buy the land, construct and equip the store to fit into the ideal picture you have in mind. With that, you will agree that you are going to spend way more when compared to people that rent or lease a facility in a shopping mall.
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The Size of the Eyelash Extension Retail Business
Another very important factor that determines the cost of opening an eyelash extension retail business is the size of the store. Of course, the larger the store, the larger the budget to get it up and running especially as it relates to furnishing and stocking up the store.
Aside from the cost of furnishing and stocking the store, it will also cost you more to hire employees. For example, a few employees can man an eyelash extension retail store that is in a 10 by 10 facility while it will take about a dozen employees to man a business in a 20 by 20 facility.
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The Cost for Branding, Promotion, and Marketing the Business
The cost for branding, promoting, and marketing the eyelash store is yet another key factor that will determine the overall cost of opening the business.
Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion, and marketing of your new eyelash extension retail business.
It is not cheap to come by an expert in branding, promotion, and marketing that will help you compete with brands that are already determining the market direction of the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your business.
7. The Cost for Furnishing and Equipping the Eyelash Extension Retail Store Business
Another factor that will determine the cost of opening an eyelash extension retail store business is, of course, the cost of furnishing the store. Before you can open an eyelash extension retail store, you should budget for items such as storage hardware (bins, rack, shelves, case), hydraulic lash stool, eyelash extension lamp, eyelash extension table, counter area equipment,
flat-screen TVs, sound system, satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets, store equipment (cash register, POS machines, security, CCTV, ventilation, signage), security, fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening the business.
8. The Cost for Insurance
The cost of paying for insurance policy cover is yet another important factor that will determine the overall cost of opening an eyelash extension retail business in the United States of America. In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
9. The Cost of Registering the Business
The cost for registering the business is yet another cost that will influence the overall cost of opening an eyelash extension retail business in the United States of America. Although the cost of registering a business is small, it will no doubt add to the overall cost of opening your eyelash extension retail store.
10. Source of Your Supplies
Another major factor that will determine the cost of opening an eyelash extension retail store is your supplies. If you get your supplies from a cheaper source, then it will help bring down the cost of starting the business. If you can build a robust business relationship with some of the leading eyelash extension manufacturing brands, then you would have succeeded in cutting down the cost of your supplies. You can even get your supplies on credit.
11. Cost of Recruiting and Training Your Staff
The fact that you are opening your eyelash extension retail store as a new business means that you are expected to recruit and train your staff.
The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers that will help you bring your new hires up to speed, and that will add to the overall cost of opening an eyelash extension retail store.
12. The Cost for the Purchase and Customizing of Uniforms
Another factor that will determine the overall cost of opening an eyelash extension retail business in the United States is the cost of purchasing and customizing uniforms. Your staff and security personnel all have different uniforms and they are expected to put on these uniforms when on duty. All these uniforms cost money which is why they must be part of your budget when opening your business.
13. The Cost of Grand Opening of the Business
In recent times, no eyelash extension retail business opens its door without first organizing an opening party to officially launch the business. This means that the cost of the grand opening is part of the factors that will determine the overall cost of opening an eyelash extension retail store in the United States of America.
You can choose to do a soft opening or you can host a grand opening party. The bottom line is that the cost must be part of your budget and this cost will influence the overall cost of opening the eyelash extension retail store business in the United States of America.
In Conclusion,
Please note that there are other factors not listed above that will surely influence the overall cost of opening your eyelash extension retail business which is why we will advise that you work with a result-driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location.