Do you want to start hair oil manufacturing business in your locality? If so, read this article to know more about the steps involved to start this business with low capital.
Herbal hair oil (Ayurvedic) is gaining an immense prominence in modern times. It is exhibiting its versatility owing to its embalming effect in alleviating headache and cause a soothing effect. This hair oil mainly comprises oils of vegetables in origin as a base and a blended perfume.
The contents used in the preparation of this oil are extracts of bahera, amla, hartago, lawanga, chandan, kewara, jatamansi along with kapur, pudina satta and til oil. The great versatility of herbal hair oil like banphool oil is being realized enormously owing to its basic ayurvedic characteristics. The demand for the product surpasses its production.
10 Step Business Plan Guide to Start Hair Oil Manufacturing
1. Research the Market
Before entering into the real business, it is immensely critical to understand the demand for hair oil in your nearby locality. You will find broadly three types of oil available in the market. They are light hair oil, heavy hair oil, and cooling hair oil. If you are starting new with low capital investment, it is better to target one segment at the initial phase unlike big brands like L’Oreal, Unilever PLC who caters each and every segment of hair oil products. Do extensive research of the market you intend to target and choose the best hair oil type you are going to make and sell.
2. Learn the Manufacturing Process of Hair Oil
There are many ways of manufacturing hair oil. The approach depends on the market you are targeting. The process varies from country to country and state. The best way to decide on the manufacturing process is to contact the machinery and equipment supplier and learn in detail the local manufacturing process. The reason primarily is because of different and varied ingredients being used in the making process. raw materials and
3. Get Trained
Try to attend a training course on making hair oils from local training institute. If you don’t find any, search the internet and surely you will find an institute or a trainer who is conducting classes on manufacturing hair oils.
4. Business Plan
After you are sufficiently trained on the nitty-gritty of making hair oils, take some time off and start writing a business plan for the same. For a manufacturing business, this business plan is a must. There are plenty of free business plan tools on the internet to take help from. Check this article to find some popular ones.
5. Get Required Licenses
Check with the local authority and get the required licenses and permits to run hair oil manufacturing business. Talk to professionals for stuff like registering a company, business insurance, etc.
6. Arrange Finance
If you are looking for fund to start hair oil making unit, a well-crafted business plan will come in handy. Contact investors and financial institutions with your business plan and convince them to fund you.
7. Set Factory Location
Choosing a factory location is another critical aspect of a profitable hair oil manufacturing business. You need to ensure the location is not far from the immediate target market as because it will increase the transportation cost in a big way and thereby reducing the profit margins.
8. Hire Manpower
Develop a manpower plan. You will need both skilled and unskilled personnel to run the factory. You can post ads in a local newspaper or on free job posting sites with your job vacancies.
If you want to make your hair oil making unit profitable, it is extremely important to have proper bookkeeping and accounting methods in place. Choose proper accounting software which will fit your needs.
10. Promote & Sell
This is the most important part of the entire business building process. If you don’t have an effective marketing plan, all your effort might go in vain. Create a well-planned marketing strategy which must include distribution strategy and promotional plan. Do not forget to invest in creating a website and use social media in promoting your business. If possible, if you can afford consider building an online store to sell your hair oil products online.
Hair oil is the most common commodity used everywhere. The demand for perfume based herbal oil is visible from the rural area to cosmopolitan cities. The ladies use it for both its functional purpose as well as a beauty care commodity. The prospect of higher growth of hair oil market is predicted to be more in countries like India followed by China and Japan. If you are living in a developing country, hair oil manufacturing business might be the one which can fetch significant returns.