Running a profitable beauty business can be a rewarding yet daunting task! there are so many things to think about when running your own business. This can be challenging when the majority of your day is focussed on delivering treatments. If you’re struggling to find the time to generate new ideas for boosting income you’ve come to the right place! We’ve collated some of our best advice for therapists to maximise profits.
Increase your client base
Whether you are just starting up or have been going a while there may be opportunities to grow your client base. There’s the obvious promotional platforms such as social media/ local magazines, however many marketing experts agree that the networking is an avenue that can be the most beneficial when targeting new clients. For example, there may be the option to have a mutually beneficial partnership with local businesses in your area that compliment the work you do such as Bridal shops or Hairdressers. A ‘you scratch my back, I’ll scratch yours’ scenario of promoting each others businesses can boost both businesses profits. If you already have a loyal client base, you can also enrol the support of these clients to grow. Offering refer a friend rewards or hosting launch events within the salon whereby clients can bring a friend/family member along. These events work well along side the launch of a new treatment or product where you can offer taster treatments/demonstrations/product trials or spread out at various times of the year to mark events i.e Valentines day/Christmas.
Increase spend per visitย
If you’re serious about increasing your profit then one clear winning strategy is to encourage your client to spend more when they are with you. Use each treatment booking to your advantage to promote the add on services and retail that you offer within the salon. This doesn’t have to be a hard sell as remember your client is there for a reason, they may have come in to get amazing lashes.. their lashes will stay amazing for longer if they use a lash shampoo between infills! If you’re not retailing product in your salon you’re not only limiting your revenue but you may also be disadvantaging your client by not providing them with a full service which includes education and aftercare on how to maintain their treatment at home.
When up-selling services, consider the treatments that compliment each other the most. This could be adding additional massage onto treatments, adding additional LED therapy onto facials or tinting with Lash extension services. Also consider the benefits of courses of treatments, offering incentives can be an easy way to reward clients for booking courses such as by 6 get one free.
Top tips for retailing product:
Only recommend products that you genuinely believe will benefit the client, link these back to their main concerns or objectives. For example you may have a facial client concerned with acne so share why you think a spot treatment would work best for them or a Gel polish client who always has dry cuticles, why would this nail oil help?
Let the client explore the product. Give them the chance to try the product on their skin as most people prefer to try before they buy!
Review your treatment menu
A lot can be said for less is more, its important to focus on what you do and do it well vs offering too many services. Think about your niche and what makes you different, why should your clients come to you? It’s these unique differences that you should be promoting at every available opportunity. It may also be time to consider your pricing, when was the last time you increased your prices? Complete some market research into your local area to ensure you remain competitive and avoid underselling your skills!
Looking to start your own beauty business this year? Call our team on freephone 0800 999 2277 (option 1) to tailor a beauty training package for your business start-up. Already trained in beauty and need more business know-how? Our Online Starting a Business in Beauty Course is the ideal starting point to plan, market, brand and launch your own beauty business.ย
Updated 30th October 2024
The key to business start-up success is careful planning. Considering the direction you want your business to take, the scale and the target market. Setting realistic goals with realistic timescales is vital to ensure you stay on track but also stay motivated. It can be challenging starting a new beauty business but also incredibly rewarding when you see the return on your investment in terms of a regular client base building, your treatment results gaining word of mouth or indeed just making a profit! We give you the lowdown on how to get up and running for success…
Have a business plan
Set yourself clear SMART goals. These are specific, measurable, achievable and time bound. So think about where you want your business to be and to take you in say 6 months, a year, 2 years and 5 years. Be realistic and take baby steps. Nothing is more demotivating than setting a goal impossible to achieve. Small, measurable goals are what you need so that with every milestone achieved, whether that is your first regular client, first client referral, tenth client booked etc. you have positive steps towards those bigger, long term goals.
You also need to do the maths and have a fixed budget for starting your own business to cover the cost of insurance, tools and products, business cards / price lists, transport costs such as if you need a bigger car, interest on any business related loans, rent and bills if having a salon space etc. and then also if this is going to be your only source of income, work out how much you need to earn each day/week so you can keep track of your income versus outgoings. Initially you may need to have a buffer and expect it may take a month or more to start breaking even and into profit as you build up your client base.
Have a brand
Think about your branding. What is your company name and logo? Is it obvious what you do from that to stand you apart from others? Is it catchy and memorable? If youโll be using it online as part of a website address, on social media etc., and your clients will be searching for your business online; it must be easy to spell and not similar to existing company names or website addresses. Think about how you will present yourself โ will you wear a beauty tunic and if so, will this have your logo on it?
Get your brand online as soon as possible so a basic website will do to start. Platforms such as wix.com offer free or low cost hosted websites, ideal for web beginners. Social media is also vital โ set up a Facebook, Instagram and Tiktok profile for your business so you can showcase what you do, start building a following and start reaching out to your existing contacts to provide them an easy way to share what you do with their contacts too.
Youโll also want to register your business on Google Business listings so you appear on Google Maps, great when clients are searching the local area for your services (or indeed discover you accidentally when planning a journey). This will only work for those with premises or working from home, so is more tricky for those working mobile.
Have realistic expectations
If you are working your beauty business alongside another job, be realistic as to how much time you can give to the business and let it build gradually rather than trying to do too much, too soon and burning yourself out. You donโt want to lose love for what you do so make sure you still take time for yourself. If youโre going to go full time on your business, be realistic about how long it may take to build a large enough, regular client base to provide you with a solid monthly income. Donโt be disheartened if it takes some months to build up, just keep active in promoting what you do locally and with your contacts. Encourage clients to recommend you through word of mouth and speak with other related local businesses such as hairdressers, florists etc. to help build up clients and contacts. Build a steady projection of income too by always getting your clients booked in for their next appointment, before theyโve even finished their current one. This allows you to manage your appointment diary, always give a sense of urgency to them booking in and that youโre already getting booked up! You never want to give the impression youโre always free, create the sense youโre in demand!
If things are slower than hoped to start, stay proactive and think about what you could do to boost business such as a launch event hosted in a local hair salon or coffee store where you do mini treatments, pampering evening in connection with a local charity or school, advertising in local press, handing out price lists at the school drop off etc. And donโt underestimate the importance of social media and your website to help business find you. Plan marketing strategy so promotions you run throughout the year, retail products you could sell to boost sales, treatment packages for wedding or holiday season etc. The key is stay busy but stay positive. Most beauty businesses take around 6-9 months to become well established but once you are, your earning potential is uncapped so itโs definitely worth investing the time and effort.
Cover the legalities
Make sure you have beauty insurance in place and that it ideally covers your beauty kit. We recommend Balens, Radius, Insync or ABT for insurance. You can purchase a policy directly from your preferred insurer.
Check your car insurance policy will cover you for business related mileage and also any car contents in the event of damage or loss/theft. Make sure you are working safely and hygienically at all times. Think about waste disposal and if you need to apply for yellow bins or commercial waste collection.
If you are working from a room in your home, check your home insurance and mortgage / rental agreement permits this. If you are converting part of your home into permanent salon premises, you may wish to consult with your local council regarding planning restrictions, change of use and if business rates would be applicable. When inviting clients into your home, check if you need insurance in the event of accident/injury unrelated to treatments. You may also wish to take a first aid course and have a first aid kit and fire extinguisher or blanket on site for emergencies.
If you are renting a room in a salon or even your own premises, you may need to consider any additional insurance for the business premises such as employee or third party insurance to protect visitors and clients at your premises in the event of an accident/injury. If employing other therapists, take legal advice in regards to contracts and qualifications / insurance they must hold. Some local authorities require special treatments licensing in some areas for salons so this must be checked out before committing to premises. If you are working alongside another job, check your employment contract to make sure there are no clauses against this.
Finally donโt forget your safety. Make sure if you are working mobile that someone knows where you are at all times and check in with someone when arriving and leaving a clientโs home having given an indication of how long you will be there so that you always remain safe. Finally donโt forget to register with HMRC for tax purposes if working self-employed. You will usually need to submit an annual self assessment to declare your earnings and to correctly pay tax and NI contributions so make sure you register in a timely manner online and keep adequate records of your income and outgoings in relation to your business.
There is a lot to consider when running your own business but with careful planning, you can ensure you are always one step ahead with no surprises. Having written down goals that you can regularly review against is great for staying on track with progress and also helping stay motivated. Donโt forget it is important to keep learning as a beauty therapist so that you can stay ahead of the competition and offer something new to delight your regular clientele. There are huge rewards to running your own business including flexibility to work around your children or other dependents, pride of owning your own business, opportunity to have uncapped earnings and the chance to earn doing something you are truly passionate about.
Want to learn more about starting your own beauty business? Need more help to break your planning down? Our Online Starting a Business in Beauty Course is for you! Completed entirely online through our Student Portal which can be accessed from mobile devices 24/7, study at your own pace and receive support from our expert team throughout. Click below to find out moreโฆ
