How To Start A Scrunchie Business In 2024?

I opened TikTok one evening and stumbled upon an influencer who had started a scrunchie business and was making thousands of dollars. I was in awe.

Who knew that something as simple as scrunchies could be so lucrative? Intrigued, I decided to dive deeper into this trend.

After some research, I discovered that the scrunchie market is indeed booming. In 2023, the hair scrunchies market was valued at USD 27 million and is expected to grow at a CAGR of over 5.4% between 2024 and 2032. With fashion trends constantly evolving and the cyclical nature of retro styles, scrunchies have made a strong comeback as must-have accessories.

Seeing this potential, I knew I had to explore how to start a scrunchie business and share my findings with you.

This post will serve as a comprehensive guide, walking you through each step of the process. Think of it as a checklist that we can follow together. By the end of this post, you’ll be well on our way to launching a successful scrunchie business.

Table of Contents

• Why Start a Scrunchie Business?
• How Much Does it Cost to Start a Scrunchie Business?
• 11 Steps to Start a Profitable Scrunchie Business
  • Step 1. Research and Planning
  • Step 2. Business Plan Development
  • Step 3. Sourcing Materials
  • Step 4. Designing your Scrunchies
  • Step 5. Setting up Production
  • Step 6. Branding and Packaging
  • Step 7. Building an Online Presence
  • Step 8. Launching your Scrunchie Business
  • Step 9. Marketing and Sales Strategies
  • Step 10. Managing Finances
  • Step 11. Scaling your Scrunchie Business
• FAQs on Starting a Scrunchie Business
• Final Say

Why Start a Scrunchie Business?

Starting a scrunchie business in 2024 is an exciting and lucrative opportunity. From my perspective, there are several compelling reasons to dive into this venture.

Firstly, scrunchies are experiencing a significant resurgence in popularity. According to recent market data, the global hair accessories market is projected to reach $31.6 billion by 2028, with scrunchies being a major contributor to this growth.

This trend is driven by the increasing demand for stylish and functional hair accessories, making it an ideal time to start a scrunchie business.

One of the biggest advantages of starting a scrunchie business is the low production cost. Scrunchies can be made from a variety of fabrics, many of which are inexpensive and readily available.

For example, you can purchase fabric in bulk for as little as $2 per yard, and each yard can produce multiple scrunchies. This means that the cost of materials for each scrunchie is minimal, allowing for a high profit margin.

Moreover, if you market your scrunchies effectively, you can sell them at a premium price. High-quality, handmade scrunchies can be sold for $10 to $15 each, especially if you create unique designs and build a strong brand.

This is particularly true if you target niche markets, such as eco-friendly or luxury scrunchies. By positioning your products as premium items, you can attract customers who are willing to pay more for quality and exclusivity.

Another reason to start a scrunchie business from home is the flexibility it offers. You can set your own schedule, work at your own pace, and scale your business as it grows.

This makes it an ideal option for anyone looking to start a side hustle or transition to full-time entrepreneurship. Plus, with the rise of e-commerce platforms, it’s easier than ever to sell scrunchies online and reach a global audience.

How Much Does it Cost to Start a Scrunchie Business?

When I decided to research about start a scrunchie business from home, I quickly realized that understanding the costs involved was crucial.

Here’s a breakdown of the typical expenses you might encounter when starting a scrunchie business in 2024.

Expense Category	Estimated Cost (USD)
Fabric and Materials	$100 – $300
Sewing Machine	$150 – $500
Notions (thread, elastic, etc.)	$50 – $100
Packaging Supplies	$50 – $150
Branding (logo, labels)	$100 – $300
Website and Domain	$50 – $200
Marketing and Advertising	$100 – $500
Miscellaneous	$50 – $100
Total Estimated Cost	$650 – $2,150

All in all, the total estimated cost to start a scrunchie business ranges from $650 to $2,150. This investment can vary based on your specific choices and scale of production.

If you do not have enough startup funds, read my post on how to make $500 a day with Uber.

If Uber is not your thing, here’s my secret side hustle that makes me $2000 a month.

By carefully planning and budgeting, you can successfully start a scrunchie business from home and sell scrunchies online, turning your passion into a profitable venture.

11 Steps to Start a Profitable Scrunchie Business

Alright, we’ve already covered some general information about starting a scrunchie business, and if you’re still here, it means you’re ready to take the plunge and launch your own scrunchie business just like I did.

So, without further ado, here are the steps to follow to get your scrunchie business off the ground!

Step 1. Research and Planning

Starting a scrunchie business is an exciting venture, but like any business, it requires thorough research and careful planning.

When I started my scrunchie business, I began by exploring Google Trends to understand the popularity of scrunchies over time. This tool is invaluable for identifying seasonal peaks and regional interest, helping you to tailor your marketing strategies.

I also suggest you to keep an eye on TikTok and Instagram trends. These platforms are goldmines for spotting the latest fashion trends and understanding what potential customers are looking for.

Next, you need to conduct a competitive analysis. I know these words sound really scary, but competitive analysis just means looking at other scrunchie businesses to see what they were offering, their price points, and their unique selling propositions (USP).

This helped me identify gaps in the market and opportunities to differentiate my products. I also read customer reviews to understand what buyers liked and disliked about my competitor’s existing products.

That was all about researching. And now comes the planning stage.

Planning is equally crucial.

Start by defining your target audience. Who are they? What are their preferences? Where do they shop?

Understanding my audience helped me tailor my products and marketing efforts to meet their needs. I also set clear business goals. Whether it’s reaching a certain number of sales in the first month or building a strong social media presence, having specific, measurable goals kept me focused and motivated.

So, take your time with this step, and you’ll be well on your way to starting a successful scrunchie business from home.

Step 2. Business Plan Development

When I decided to start a scrunchie business, one of the most crucial steps was developing a comprehensive business plan. A well-crafted scrunchies business plan not only serves as a roadmap for your venture but also helps in securing funding and guiding your business decisions.

To streamline the process, I used several business plan tools. LivePlan offers a user-friendly interface and step-by-step guidance, making it easier to create a professional business plan. For those on a budget, Bplans provides free templates and resources that are incredibly helpful.

Step 3. Sourcing Materials

When I decided to start a scrunchie business, sourcing high-quality materials was a pivotal step. The right materials not only ensure the durability and appeal of your scrunchies but also set your brand apart in a competitive market.

First, I identified the types of materials I needed. For scrunchies, this typically includes fabric, elastic, and thread. I chose a variety of fabrics such as velvet, satin, and cotton to offer a diverse range of products. Each fabric type has its own appeal and target audience, so having a mix was essential.

Next, I researched and connected with reliable suppliers. I found that sourcing materials locally helped reduce shipping costs and lead times. Websites like Alibaba and Etsy were invaluable for finding bulk suppliers.

Additionally, I attended local fabric markets and trade shows to discover unique materials and establish relationships with vendors.

Quality was non-negotiable for me. I ordered samples from multiple suppliers to evaluate the fabric’s texture, elasticity, and durability. This step was crucial to ensure that my scrunchies would meet customer expectations and withstand regular use.

Remember, negotiating prices with suppliers will help you manage costs effectively. I found that buying in bulk often resulted in significant discounts. Building a good rapport with suppliers also opened doors for better deals and flexible payment terms.

To streamline the sourcing process, I also used tools like Maker’s Row and ThomasNet. These platforms connect businesses with manufacturers and suppliers, making it easier to find high-quality materials. For those on a budget, Fabric.com, now acquired by Amazon, offers a wide range of affordable options.

By carefully sourcing materials, you can ensure that your scrunchies are of the highest quality, appealing to customers and setting your brand up for success. Remember, the materials you choose are a reflection of your brand’s commitment to quality and sustainability.

Step 4. Designing your Scrunchies

When I first decided to start a scrunchie business, I knew that the design phase would be crucial. It’s not just about creating a product; it’s about crafting something that stands out in a crowded market. Here’s how I approached the design process:

I began by immersing myself in the latest fashion trends. I scoured fashion magazines, Pinterest boards, and Instagram feeds to see what styles were trending. This helped me understand what potential customers might be looking for in a scrunchie. I also looked at what my competitors were offering to identify gaps in the market that I could fill with unique designs.

The fabric choice is vital. Please go for a variety of materials, including silk, velvet, and cotton, to cater to different preferences and occasions.

Silk scrunchies, for example, are perfect for a luxurious feel and are gentle on the hair, while cotton scrunchies are great for everyday use. I made sure to source high-quality fabrics to ensure durability and comfort.

Next, focus on colors and patterns. I chose a mix of classic and trendy colors to appeal to a broad audience. Patterns like florals, polka dots, and animal prints added a fun element to my collection. Also consider seasonal colors to keep your designs fresh and relevant throughout the year.

Designing scrunchies isn’t just about the product itself; it’s also about how they’re presented. I suggest you to invest time in creating attractive packaging that reflected my brand’s aesthetic. This included designing custom tags and packaging that makes your scrunchies feel like a special purchase.

Step 5. Setting up Production

Once you get your scrunchie designs finalized, its time to set up production. This step is crucial to ensure that your scrunchies are made efficiently and meet the quality standards you envision. Here’s how I went about it:

The first step was to secure a reliable source for my materials. I researched and contacted multiple suppliers to compare prices, quality, and delivery times. Building a good relationship with my suppliers was key to ensuring a steady supply of high-quality fabrics and other materials needed for production.

I had to decide whether to produce the scrunchies in-house or outsource the production. For smaller batches, I started with in-house production, which gave me more control over the quality and allowed me to make adjustments quickly. As my business grew, I considered partnering with a local manufacturer to scale up production without compromising on quality.

If you’re planning an in-house production, creating a dedicated workspace is essential. I set up a clean, organized area with all the necessary equipment, such as sewing machines, cutting tables, and storage for materials. This helped streamline the production process and maintain a high level of efficiency.

Efficient inventory management is also crucial to avoid overproduction or stockouts. I used inventory management software to keep track of materials and finished products. This helped me plan production schedules and manage orders effectively.

Step 6. Branding and Packaging

Creating a strong brand and attractive packaging is essential when you start a scrunchie business. It helps your products stand out and makes a lasting impression on your customers.

Start by defining your brand identity. Think about what makes your scrunchies unique and what values your brand represents. Are you focusing on eco-friendly materials, luxury designs, or affordability? Your brand identity should reflect in every aspect of your business, from your logo to your marketing materials.

Your logo is the face of your brand. Invest time in creating a logo that is simple, memorable, and reflective of your brand’s personality. You can hire a professional designer or use online tools to create a logo that stands out.

Your brand voice should be consistent across all platforms. Whether you’re writing product descriptions, social media posts, or customer emails, ensure that your tone and style align with your brand identity. This consistency helps build trust and recognition among your customers.

Packaging is the first physical touchpoint your customers have with your product. Design packaging that is not only visually appealing but also functional. Use high-quality materials and consider eco-friendly options to appeal to environmentally conscious customers. Custom tags, labels, and packaging inserts can add a personal touch and enhance the unboxing experience.

Step 7. Building an Online Presence

Building a strong online presence is crucial when you want to sell scrunchies online. It helps you reach a wider audience and establish your brand.

Your website is your online storefront. Make sure it’s user-friendly, visually appealing, and reflects your brand’s identity. Include high-quality images of your scrunchies, detailed product descriptions, and an easy-to-navigate layout. An e-commerce platform like Shopify or WooCommerce can help you set up a professional online store quickly.

Social media is also powerful tool for promoting and selling your scrunchies online. Platforms like Instagram, Facebook, and Pinterest are ideal for showcasing your products and engaging with potential customers. Post regularly, share behind-the-scenes content, and use hashtags to increase your visibility.

Moreover, consider listing your scrunchies on popular online marketplaces like Etsy, Amazon Handmade, and eBay. These platforms already have a large customer base looking for unique and handmade items. Make sure your product listings are optimized with clear titles, detailed descriptions, and high-quality images to attract buyers.

Instagram is a fantastic platform for selling scrunchies. Create a business account and use features like Instagram Shopping to tag your products in posts and stories. This allows users to purchase directly from your Instagram profile. Engage with your followers by responding to comments, hosting giveaways, and collaborating with influencers to expand your reach.

Step 8. Launching your Scrunchie Business

After all the planning and preparation, it’s time to launch your scrunchie business. This is an exciting step where you introduce your products to the world.

Start by planning a detailed launch strategy. Decide on the launch date and create a timeline leading up to it. Outline the key activities you need to complete, such as finalizing your website, preparing marketing materials, and organizing any launch events or promotions.

Generate buzz and anticipation before your launch. Use social media platforms to tease your upcoming products. Share sneak peeks, behind-the-scenes content, and countdown posts to engage your audience. Consider running a pre-launch giveaway or contest to attract attention and build excitement.

If you are selling scrunchies online, please make sure your website is fully optimized and ready for the launch. Double-check that all product listings are complete with high-quality images, detailed descriptions, and accurate pricing. Test the checkout process to make sure it’s smooth and user-friendly.

Step 9. Marketing and Sales Strategies

Effective marketing and sales strategies are essential to grow your scrunchie business and reach a wider audience.

Understanding your target audience is the first step. Determine who your ideal customers are based on factors like age, gender, interests, and shopping behavior. This helps you tailor your marketing messages and choose the right platforms to reach them.

Social media platforms like Instagram, Facebook, and Pinterest offer targeted advertising options. Use these platforms to run ads that promote your scrunchies to specific demographics. Experiment with different ad formats, such as carousel ads, video ads, and sponsored posts, to see what works best for your audience.

Email marketing is an effective way to keep your customers informed about new products, promotions, and special offers. Encourage visitors to your website and social media profiles to sign up for your newsletter. Offer incentives like discounts or free shipping for subscribers to grow your email list.

SEO (Search Engine Optimization) is also essential for driving organic traffic to your website. Use relevant keywords like “sell scrunchie online,” “where can I sell my scrunchies,” and “how to sell scrunchie on Instagram” in your website content, product descriptions, and blog posts. This helps improve your search engine rankings and makes it easier for potential customers to find you.

Step 10. Managing Finances

Effective financial management is crucial for the success of your scrunchie business. It helps you keep track of your expenses, manage cash flow, and ensure profitability.

Start by setting up a separate bank account for your business. This helps you keep your personal and business finances separate, making it easier to track expenses and income. It also simplifies tax preparation and financial reporting.

Develop a detailed budget that outlines your expected income and expenses. Include costs such as materials, production, marketing, shipping, and any other operational expenses. A budget helps you plan your spending and ensures you have enough funds to cover your costs.

Also, don’t forget to keep a record of all your business expenses. Use accounting software or a simple spreadsheet to log every expense, no matter how small. This helps you monitor your spending and identify areas where you can cut costs.

And lastly, investing in accounting software can simplify your financial management. Tools like QuickBooks, Xero, or Wave can help you track expenses, manage invoices, and generate financial reports. These tools also make it easier to prepare for tax season and provide insights into your business’s financial health.

Step 11. Scaling your Scrunchie Business

Once your scrunchie business is up and running successfully, the next step is to scale it. Scaling involves expanding your operations to increase your market reach and revenue.

Start by analyzing your current business performance. Look at your sales data, customer feedback, and market trends to identify what’s working well and where there’s room for improvement. Understanding your strengths and weaknesses will help you make informed decisions as you scale.

Consider expanding your product line to attract a broader audience. Introduce new designs, materials, or complementary products like hairbands, headbands, or hair clips. Diversifying your product offerings can help you reach new customers and increase sales.

As demand grows, you’ll need to increase your production capacity. This might involve investing in more advanced equipment, hiring additional staff, or partnering with a manufacturer. Ensure that your production processes are efficient and scalable to meet the increased demand without compromising on quality.

Expand your sales channels to reach more customers. In addition to your website and online marketplaces, consider selling your scrunchies in local boutiques, salons, or pop-up shops. Participating in craft fairs and markets can also help you connect with new customers and increase brand awareness.

FAQs on Starting a Scrunchie Business

Final Say

Starting a scrunchie business has been an incredible journey for me. From designing unique scrunchies to building a strong online presence, each step has taught me valuable lessons. Remember, success doesn’t happen overnight. Stay patient, keep innovating, and always listen to your customers. With dedication and the right strategies, your scrunchie business can thrive. Good luck!