Scrunchie Business Plan (2024) Ultimate Guide – How to Write

Looking for steps to set up a scrunchie-making business, but you haven’t created a business plan yet, right? You are in the right place, we’ll help you to write a plan for your venture.

Starting a scrunchie business is not hard compared to other businesses, such as – not requiring a high level of investment, easy making process can start from home, having a simple setup process, etc.

It still requires dedication, hard work, patience, planning, and research to become successful.

If you are planning to set up on a large scale with a productive team and want to become a large producer, having strategic planning is important to launch the product successfully in the market.

No matter your business size, having a business plan is helpful for every startup owner and provides a path to success.

A business plan includes – Industry analysis, competitive research, identifying target customers, financial plans, product descriptions, production plans, marketing plans, workforce, and more.

What Is a Business Plan for Scrunchie?

A business plan is a simple outline of your startup purpose, steps, strategy, requirements, and setup plan for achieving the goals.

As you decide to start a scrunchie business, think it is your brand, and for establishing a brand in the competitive market, outline the steps to achieve this.

Define the core values and goals of your service and write what you want to contribute to the market to make a successful brand.

Why you need a business plan for your Scrunchie line

Do you know? What are the benefits of having a business plan? It increases the chances of becoming successful and provides a step-by-step roadmap and clarity.

Here is the importance of writing a plan; check them:

• Give clarity and direction: For defining goals, strengths, weaknesses, opportunities, and threats (SWOT).
• Help to build a funding and partnership relationship, also attract investors.
• A business plan is helpful for developing a marketing strategy and sales channels focusing on the target market.

Put your efforts and research into writing a plan for your business, and prepare a clear outline to make the line successful, focusing on the objective and fundamentals.

What Should I Include in a Hair Scrunchie Business Plan?

Before starting to write the business plan, first of all, outline the structure and points that should be included in the plan; here is a basic example:

1. Executive Summary
2. Business Description
3. Product Description
4. Industry Analysis
5. Customer Research
6. Competitive Analysis
7. Marketing Plan
8. Operational Plan

You can include those points, so let’s discuss each step thoroughly.

Executive Summary

Start writing your business plan with an executive summary outlining the launching plan, growth strategy, mission statement, goals, products, service, business model, target market, production, packaging, branding, marketing, financing, etc.

Explain every section of the outline, and create an online or two-page summary to execute.

Scrunchie Business description

Write a detailed overview of your business, describe your company size, target customer demographics, production plan, location, setup, workforce, selling method, etc.

• Business size: Small, medium, or large scale
• Brand identity (name, logo, values)
• Products and services: Varieties of scrunchies, Unique selling proposition (USP), etc.
• Target market: Who are your ideal customers? Define demographics and interests.
• Production and sourcing: Write the production plan and process.
• Selling methods: Write how you can sell your products (at an online store, website, wholesale, retail, etc).

Scrunchies Product Description

Write a clear product description, including (material, colors, variety, patterns, sizes, types, process, etc.). The description will help you in your production and in buying supplies.

• Made from Fabric (satin, velvet, cotton, etc.) & elastic.
• Types: Classic, double, oversized, mini, headband.
• Sizes: Mini, regular, XL (thick hair or bun-worthy)
• Colors: Classic solids (black, white, navy) + Vibrant brights (pink, yellow, teal) + Trendy pastels (lavender, mint, peach)
• Patterns: Polka dots, stripes, florals, animal prints, geometric designs, custom options
• Process: Cut Fabric, wrap elastic, and sew ends.
• Fun fact: Versatile & eco-friendly options are available!

Industry Analysis

Research the hair accessories industry or scrunchies selling reports, and gather the relevant information that is helpful for your project.

Conduct proper market research to understand your target market, industry, customer, and competitors.

Get ready for an exciting twist in the hair accessory scene!

Do you know? The Global Hair Scrunchies Market is gearing up to hit a whopping US$ 4.3 Billion by 2031, marking a cool 5.9% annual growth. Source: (globenewswire.com)

It’s like scrunchies are having their moment in the spotlight, becoming a big deal worldwide.

Key points about products:

• Material trend: Silk, Rayon, Velvet, Cotton, Polyester, and Satin.
• Size: Mini, Basic, Large, and Extra Large.

The basic information related to scrunchie industry analysis:

• Booming market: Growing fast, expected to hit $4.3 billion by 2031. Source – (transparencymarketresearch.com)
• Trendy comeback: Nostalgic appeal, hair health benefits, and social media hype.
• Lots of players: Mix of big brands and small businesses, competitive field.
• Challenges abound: Saturation, fast fashion, and supply chain woes.
• Opportunities galore: Be unique, sell direct, go sustainable, customize.
• Overall: Promising market, but stand out with quality and smarts!

The scrunchie market is a promising one with strong growth potential. Success requires a deep understanding of the market dynamics, a focus on differentiation, and a commitment to quality.

Customer Research

Next, to understand your target market, describe the key points: who are your target customers, how you target them, their demographics, age, location, interest in scrunchies, demand, trends, and everything related to them.

Scrunchie Target Market:

• Who: All ages including children to older adults (female), style-conscious, diverse.
• Where: Online, urban/suburban, global potential.
• Why: Trendy, gentle on hair, sustainable options.
• How to reach: Social media, e-commerce, events, collaborations.
• Key trends: Bold colors, sustainable materials, multifunctionality, customization.

Identify your target audience and understand their needs, preferences, interests, and demands, then create quality products that fulfill their needs, which will help your business establish a brand.

Competitive Analysis

In your business plan, add a section called “competitive analysis” and write about industrial fluctuation, competitive landscape, competitors, existing businesses, future trends, SWOT analysis, etc.

For getting success in this industry, you need to understand the competitive landscape of the scrunchie business.

Analyze both small and big players in the market, and find the popular scrunchie sellers and brands to study their business strategy, selling method, promotional ways, etc.

As the scrunchie market is booming, the competition is increasing as well, but don’t worry; there are opportunities for new entrants.

Scrunchie competition in a nutshell:

• Big players: Lele Sadoughi (luxury), Slip (hair health), Urban Outfitters (trend-driven).
• Little guys: Small-batch brands (unique, sustainable), Etsy sellers (personalized, niche).
• Winning strategies: Be different (materials, designs, features), build your brand, sell direct, go green, and let people customize.
• Future trends: Premium materials, sustainability, personalization, smart features.
• Key takeaway: Find your niche, stand out, and make scrunchies your superpower!

SWOT analysis for a scrunchie:

• Strengths: Trendy, gentle, diverse, cheap to make, scalable.
• Weaknesses: Crowded market, low perceived value, fad risk, limited function, seasonality.
• Opportunities: Sell directly, go green, personalize, collaborate, and innovation opportunities.
• Threats: Recession, cost hikes, fakes, fast fashion, Etsy overload, changes in fashion trends, or increased competition from overseas manufacturers.

Understand your strengths and weaknesses, and create an opportunity with a proper plan to overcome all the challenges.

Marketing Plan

Next, write your marketing plan and how to reach potential customers or leads.

There can be online or offline promotional strategies. Online (social media, paid promotion, influencer marketing) are more effective than offline word-of-mouth publicity.

• Target audience: Understand your target audience (primarily female – girls and women).
• Identify their interests: Fashion, hair care, sustainability, and self-expression.
• Values of your products: Quality, affordability, social responsibility, best material.

Marketing Objectives:

• Increase brand awareness and recognition.
• Drive website traffic and online sales.
• Build a loyal customer base and community.

Online marketing strategies

Social Media:

• Platforms: Instagram, TikTok, YouTube, Pinterest.
• Create high-quality content and share product photos and videos.
• Influencer marketing: Partner with relevant influencers for product reviews.

Website:

• Create a user-friendly website.
• Add product photos and descriptions.
• Customize with navigation and search functions.
• Secure payment gateway and easy checkout process.
• Promotions and discounts to incentivize purchases.
• Blog with styling tips, hair care advice, and brand stories.

Email: Offers, tips, exclusive content, personalized love.

PR & Collabs: Collaborate for success – Connect with influential brands and creators.

Offline:

Offline marketing strategies

Local events and pop-up shops

• Craft fairs and markets
• Hair salons and boutiques
• School and college events

Collaborations with local influencers

Promotional material for branding: Packaging, printed material (flyers, posters, stickers, brand logo, business cards).

These are the simplest and most effective ways for marketing and promotion.

Scrunchie production plan

Write a production and management plan.

• Production: Design, source, make, track quality, and prevent stock woes.
• Logistics: Package cute, ship fast, and handle returns like a champ.
• Marketing & Sales: Brand it, tell your story, and sell it everywhere at the right price.
• Finance: Budget like a boss, track every penny, stay cash-flow cool.
• Team & Tools: Build your crew, invest in tech, and stay legal.

Learn the scrunchie-making process; you can watch YouTube tutorials, read blog posts, join online workshops, and learn through hands-on practice with a guide.

To increase work productivity, a staffing plan is also important, so don’t forget to write about hiring the workforce or skilled staff.

Frequently Asked Questions (FAQs)

Hopefully, the information is helpful and informative; if there are any other doubts related to business planning and research, then you must ask your queries and comments.