Beauty Business Mistakes You Should Never Make
Many women (and men) dream of opening their own beauty salons. Sadly, few of them ever do it, and out of those who do, a large percentage will fail. If it’s your dream too, however, you shouldn’t let the fact that 8 out of 10 salons fail put you off because you could be one of the 2 in 10 that succeed, especially if you avoid these common beauty business mistakes that many people before you have made…
Not Getting to Grips with Cash Flow
Many people who set up beauty businesses know a lot about beauty treatments, but not so much about running a business. This means that they don’t really understand the concept of cash flow and they struggle to deal with expenses and record keeping. This can leave them with too little cash to carry on, which often leads to a swift closure as they try to cut their losses. So, even if you aren’t particularly money minded, if you’re serious about setting up a successful beauty business, take a bookkeeping class or employ a professional to take care of the money side of things.
Not Having Insurance
Not having insurance in the beauty business is a big mistake. Insurance for salons is so important because, as you will know, you will be dealing with the public, using various lotions and potions on them, as well as various gadgets and gizmos. All it takes is for one person to have a terrible reaction to one of the chemicals you use or for you to slip and burn someone with hair straighteners, for example, for you to be on the wrong side of a lawsuit and put out of business. Insurance is not optional; you need it for the sake of your business and for your own peace of mind.
Being Persuaded to Spend Too Much on Branded Products
Anyone who has ever attended a beauty industry trade show I’ll tell you that salon brands are very aggressive at pushing business owners to spend thousands of dollars on large quantities of stock. They will often only let you buy their brand if you lay down a minimum investment of $5,000 or so. For the average beauty startup, this is way too high a price to pay because it will take a long time for you to be able to shift much product and recoup your costs. If a particular brand wants you to pay too much, look for an alternative that is just as good with a lower initial outlay, and you’ll do just as well.
It’s so easy to be caught up in the buzz about the latest beauty trends, but if you focus on them to the detriment of the classics like waxing and manicures, then you will end up losing out. They might not be as sexy as eyebrow tattooing or whatever, but waxing, facials and manicures are the bread and butter of the industry, and when you’re starting out, you should focus on getting them right before you look to the latest fad to make money.
Avoid these mistakes and offer a good service and there’s no reason why your business venture should not be a success.
October 3rd, 2018
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