Obsessed with eye lashes? Living for lipstick? Wake up thinking about make up? Well, have you ever thought about starting a beauty business?
Turning passion into a career never looked so good. Indeed, working in beauty is an increasingly popular profession in the UK, and for good reason. Not only is there always demand for beauty therapists – equating to a guaranteed job for life – but it’s also one of the fastest growing sectors in the UK today.
In fact, in a survey carried out by Mind and Body, it was revealed that ”The industry is expected to grow by 1.4% each year between 2019 and 2023, reaching £11.6 billion by the end of 2023.’’ That’s a whole lot of people spending a whole lot of money on pampering themselves.
Are you thinking of starting a new business in the increasingly lucrative hair and beauty industry? Here are 5 things that you need to consider when thinking of starting a business.
Training
Whether you’re experienced in the sector or a relative newcomer to the world of beauty, one of the great things about this industry is that you’re always learning. Every day is a school day, as they say, and prior to beginning your beauty business journey, it’s sensible to update or refresh your skillset to make sure you’re starting your business on the front foot.
As the guys at RJL Education, an education centre offering a wide and varied range of beauty, hair and aesthetic courses taught by highly experienced professionals, tell us, you could either study something broad and all encompassing like a level 2 or 3 NVQ Diploma in Beauty Therapy, or something job specific like a hairdressing or nail technician course, should you already have a firm idea of the niche you’re going to pursue.
Read: 5 exciting career paths for those looking to enter the beauty industry
You’ll also need to bone up on the business side of things. Speaking of which…
Create A Business Plan
Once you’ve determined the specificity of your beauty business’s offering, the first step of starting your own beauty business is creating a business plan. This is a written document that describes your business and is vital should you wish to apply for a bank loan, for example. Your business plan should be as detailed as possible, covering all aspects from objectives and strategies, to marketing and financial forecasting.
Creating a business plan is one of the most important things you can do when starting a new business. A well-crafted business plan will help you outline your goals and objectives and strategise how to achieve them. It will also help you determine the feasibility of your business idea and assess the risks involved.
If you’re unsure how to create a business plan, there are plenty of resources available both online and in libraries. Many consultants can help you put together a solid plan. However, you choose to do it, make sure that your business plan is thorough and complete.
The best time to create a business plan is before you launch your startup. This will give you enough time to make changes and tweaks based on your research. But even if your business is already up and running, it’s never too late to create or update a business plan.
Finances, Budgeting, Funding, Licenses & Permits
The next thing you need to consider is finances, budgeting and funding – this is a crucial part of starting a business. You need to ensure your business plan is well thought out, as setting up a business is an expensive investement, and you may need to attract potential investors or secure a bank loan.
Compiling a cash flow forecast will help you identify the amount of funding you require and what will be attainable for your business. Don’t forget to set up a business bank account and register your business with HMRC.
You’ll also need to consider licences and permits, to ensure everything you’re doing is legal and above board. If you’re unsure what licences and permits you need, contact your local Chamber of Commerce or Small Business Administration (SBA) office. They can provide you with information about the requirements in your area.
Choose The Best Business Structure For Your Unique Needs
Next you need to consider the type of business, as there are a number of different models to choose from, such as sole trader or limited company. You should seek advice from a legal professional regarding this, though we’ve written this handy guide to the different types of business structure in the UK if you’re keen for a brief summary of how each one works.
Generally speaking, if you have ambitions for your beauty business to expand and succeed (of course you do, that’s why you’re here), the best structure will likely be a LLC (Limited Liability Corporation), allowing you reduced corporate responsibilities, increased flexibility in tax, the chance to raise capital through equity, and perhaps most importantly for those starting out in an uncertain economic environment, personal liability protection.
All in all, an LLC structure offers the freedom and flexibility of a sole proprietorship, but with some of the added benefits of incorporating, which makes the structure popular with business owners in the beauty industry.
Insurance
Salon or beautician insurance is vital to protect your business. You must have an insurance policy in place whether that be individual (self employed) or salon owner insurance which covers all the services offered.
It is important to note that insurance policies are only valid if your hair stylists and therapists are properly trained and have the necessary qualifications – insist on certification and the necessary training to protect yourself, your team, and ultimately, your clients.
Health & Safety
The final step we are going to discuss is health and safety regulations. As a salon owner, these must be fully complied with; doing so doesn’t only protect you and your business, but also your staff and clients. It is a legal requirement to display the health and safety poster approved by the HSE; check out their salon risk assessment template here for more on that.
The Bottom Line
And with those wise words dispensed with, we can’t wait to visit your beauty business for a free session!
Whilst you’re here, check out this snappy round-up of some of the best career opportunities within the beauty profession. You won’t regret it.
