4 Crucial Tips To Succeed In The Beauty Industry

By  |  0 Comments

By guest writer Cassie Brewer

For a lot of beauty gurus, the ultimate dream is to own their own salon, develop a cosmetic brand or run a beauty supply store. Indeed, the idea of living off of one’s passion and creativity by making clients feel beautiful, is great incentive to start a business. However, while most owners focus on the very important task of providing a great service, when it comes to the technical aspects of running a small business, not all stylists and aspiring business owners are up to the task. This creates a failure rate that is the second-highest of any other industry.

So don’t be part of the bad statistics. If you really want to succeed in the beauty industry, here are four major pieces of advice to help you survive in this business:

1. Always maintain enough working capital

The success of beauty businesses relies on many factors, one of the most important being working capital. Indeed, regardless of your salon’s revenues, you constantly need money to pay for fixed costs like rent, to buy equipment, to pay employees, and to cover unexpected expenses like broken furniture or extra help. Therefore you have to understand all the risks involved and even anticipate some of them, through sound financial planning. You may even consider hiring an accountant if you are not good at running books.

2. Create a Staff Development Program

The biggest issue salons and beauty stores face when calculating the ROI on their services is client retention. If the woman who comes in once a month to touch up her highlights decides to go to another boutique, that’s already thousands of dollars lost for that year alone. So to keep your beloved clients, you need employees who will offer friendly, professional, and awe-inspiring results. The best way to ensure you are hiring the right people, and to provide them with the right tools they need to succeed at your salon, is to create a staff development (or training) program. This usually takes between a couple of days to two weeks, during which new hires are trained by senior stylists in all of the services you offer (even if they already know how to do it). Industry practices can vary widely, so the training will help you standardize styling and sales techniques, safety measures and customer service.

3. Offer Competitive compensation

Employees’ loyalty is essential. Indeed, the beauty industry is rife with “staff pirates”, those stores who want to recruit your best professionals out from under your nose by offering better pay and higher incentives. The key to ensuring your employees stay with you is to offer them competitive pay and treat them right. Offering performance bonuses is also a good way to value your staff’s work and promote excellence and high performance. At the end of the day, you want them to feel like they are part of an awesome, unstoppable team.

4. Stay up to date

Beauty stores have many decisions to make when it comes to what exactly they could offer. For example, if you own a salon, you could decide to specialize in coloring, blowouts or special occasions. But whatever is your signature, and regardless of how much your customers love it, you should be open to new trends. For example do you provide hair extensions? Can you serve different ethnicities? Beauty standards are constantly changing, and your services need to reflect market demand.

Remember: Beauty is a Business!

Regardless of the passion you have for your salon or store, you must first treat it like a business. Keep up with your accounting, understand and study your market, and perfect a training program that will keep the best professionals in town working for you. Then, you can make the world beautiful.

About the author: Cassie Brewer is a journalist living in Southern California. She is passionate about helping others look and feel their best and finds that one of the best ways to accomplish this is through the foods that we eat.

Did this help? Your opinion matters. You can rate this article, leave a comment below or share it on social media. Follow Bobbyfinance for more financial tips.

Leave a Reply

Your email address will not be published. Required fields are marked *

HAVE YOU STARTED A BUSINESS?

I will send you FREE information to help you:

  • INCREASE YOUR REVENUES
  • GET FINANCING
  • FIND NEW CLIENTS
  • RUN MARKET RESEARCH