Budgeting tips for anyone setting up their own beauty business

0
102

So, you’re taking that big step? Or is “the plunge” more appropriate? Whichever side of positive you’re feeling today, if you’re in the process of setting up your own beauty business, you’ve got some work to do. Here are some key considerations that will not only help you to work out whether you’re ready now, but which you can return to in the future if you put the project on hold.

Confirm the setup cost

According to research by IBISWorld, there are almost 30,000 hair and beauty businesses in the UK. However, before you attempt to make your mark on the industry, you need to make sure you have enough money to avoid a false start, as you attract clients away from the competition.

According to a specialist small business article in The Guardian, it may be more cost-effective to take over a similar business when choosing your location. Doing so will save money on refurbishing new premises, and allow you more room for rent, hiring, and marketing…

Shout, market, promote

“If you build it, they will come,” only ever worked in Field of Dreams. You don’t want business to become another reference to that movie, so don’t assume people will see your sign and switch from their favourite salon just because yours has appeared.

30% of new businesses fail during their first two years, according to Investopedia, so this is the time you need to really shout about how great your beauty business is. Use as many free digital and social channels as possible, ask your friends and family to do some of the shouting for you, and put a little money aside for the paid advertising most relevant to your customers.

Figure out funding

Do you need to borrow a little to start earning a lot? This can be one of the most daunting financial aspects of setting up any small business. You need the capital to kick-start the business but are suddenly burdened with an extra level of pressure you’d rather have avoided – especially while getting your project off the ground.

If you do need to borrow, one way to claw back a little of that peace of mind you might be missing for a few months is to take out salon insurance for your new business. Covering you for a range of unanticipated events, this insurance will give you more time to focus on the business.

Charge the right price

This might require a little detective work. Unless you’re able to offer a service that no other beauty business in the area can provide, you’re likely to be faced with some seriously competitive prices. Once you’ve worked out a cost you can afford to charge, given your new outgoings, find out what other businesses in the area are charging for the same service.

You might be able to make an extra profit, at least in the short term, or slightly undercut your competition, as an incentive, with this research. It may sound brutal, but with nearly 30,000 other hair and beauty businesses in the country, you’ve got plenty of other business owners to beat to every customer.