The Beauty Business – FOE101

The beauty business.

If you reach a point in your life when you feel that you are ready to become your own boss, you will have two main options to consider: (1) owning your own business, or (2) renting a booth in an existing salon, spa, or barbershop. Both options are extremely serious undertakings that require significant financial investment and a strong line of credit.

Entire books have been written on each of the topics touched on in this chapter, so be prepared to research your business ideas extensively before making any final decisions about opening a business. The following information is only meant to be a general overview; however, the better prepared you are to be both a great artist and a consummate businessperson, the greater your chances of success.

Whether you’re opening a small destination spa, large franchise nail salon, or modest independent barbershop, you must carefully consider some basic issues and perform fundamental tasks as outlined in the following section.

What are the components of a basic business plan?

Answer: A basic business plan should include: executive summary, vision statement, mission statement, organizational plan, marketing plan, financial documents, supporting documents, and business policies.

What are the top 3 ways clients find a service provider?

Answer: According to a survey conducted by the Professional Beauty Association (PBA), the top three ways that clients find a service provider are: 1. Recommendations or referrals, 2. A convenient location, and 3. Advertisements.

What responsibilities does a booth renter assume?

Answer: A booth renter is responsible for their own clientele, record keeping, and accounting, including inventory, advertising, continuing education, and adhering to state laws.

List the four elements of a successful salon, spa, or barbershop.

Answer: The four elements of a successful salon, spa, or barbershop include a well-designed layout, quality personnel, an attractive and effective front desk area, and proper use of the telephone to conduct shop business.

Selling inside the business.

An important aspect of a beauty business’s financial success revolves around upselling (adding on additional services), cross promoting (encouraging a client who is booked for one service to add another), and retailing (selling take-home or maintenance products). No matter the size or style of your business, adding services and retail sales to your service ticket means additional revenue. Remember: Your client will spend money during their visit. It is your job to encourage your client to invest in retail and services that will keep them coming back for more, while also helping to maintain the look you just gave them!

It is important that we as professionals feel confident in selling services and retail. Remove any negative feelings or stereotypes you have toward sales or sales people and start fresh. Helpful and knowledgeable professionals make customer care their top priority. These people play a major role in the lives of their customers and are very valuable to clients because they offer good advice. In fact, the successful owner, like the successful professional, makes their living by giving complete beauty and wellness advice every day.

Name five advertising tools you might use to attract customers to your salon, spa, or barbershop.

Answer: Advertising tools include newspaper ads and coupons, a website, e-mail newsletters and discount offers, website offerings, direct mailings, classified advertising, promotional items, retail packages, window displays, radio advertising, television advertising, community outreach, service donations, client referrals, promotional videos, or an on-hold message.