8 Tips for Building a Business Plan for a Successful Hair, Beauty, or Cosmetics Franchise
Starting a business involves a lot of careful consideration and planning. To make life easier, weíve complied the top eight tips for building a business plan for a beauty franchise. Follow these and you should be on the path to success.
The beauty sector is big business in the UK. Many of us rely on our trusted beauty products and favourite brands to help us look and feel good. In fact, research has found that women in the UK spend around £482.51 a year on beauty products.
To help make sure that youíre developing a business that will be a hit with beauty fans across the UK, follow these top eight tips when it comes to writing a business plan in the beauty sector.
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1.) Establish your target customer
Customer bases for beauty products can vary quite significantly. You probably wouldnít market a face scrub aimed at acne sufferers to elderly people; nor would you expect anti-aging products to appeal to teenagers.
While big beauty brands like Boots have very large and diverse product ranges suiting pretty much everyoneís needs, this might not be possible when your business is just starting out. So, you might need to focus on a smaller section of the UK public. Letís say you want to sell anti-aging products. Research areas with a higher middle-age population and consider operating there.
Ashley is a celebrity nail artist that has worked with brands like Nike and Chanel:
Iím really big on having a planÖ A lot of our career, especially in the beginning, happens to us, as opposed to us working a plan and knowing, ĎI know where I want to be in a year, or in five yearsí. I think thatís where I really succeeded.
2.) Stand out from the competition
You need to think about what your businessí niche is. Why should customers choose to visit your beauty franchise rather than one five minutes down the road? So, itís important to research the current start of the beauty market both nationwide and in your local area. Find out what is currently on offer and whatís in high demand. There isnít much point starting a beauty store that only sells skincare products when what the area is really lacking is somewhere selling high quality make-up.
As part of your market research, you should compare the prices of treatments and products that other beauty franchises are offering in your area. Of course, you donít want to drop your prices so low that you canít make a good profit, but itís a good way to determine how much people are used to paying currently.
3.) Find the perfect location Ė or go mobile!
Consider the type of businesses that will be around you. If your beauty store is close to another shop with a similar target customer, then you can benefit from spontaneous purchases. Letís say youíre starting a make-up brand aimed at 18-25 year olds that has vibrant packaging and is a hit on Instagram. It would work in your favour if you set up shop next to a popular high street retailer aimed at the same audience; for instance Forever 21, Monki or Topshop.
You need to decide how youíre going to make your beauty franchise work for you. You could set up a business in your own home so you can decide when you work, or you can travel to your clients or start your own salon.
4.) Hire employees that represent your brand
In order to get customers to return, you need to provide a high standard of service. Therefore, the staff you hire are incredibly important. When recruiting, itís important to choose individuals that are passionate about beauty. When customers enter your beauty shop and seek advice on which products to buy, they will want to speak to someone who can empathise with their problems and give them valuable guidance.
Beauty is a service industry, so you will want a team that has great interpersonal skills. Look for people that are smiley, bubbly and able to connect with your target customer. Offering a personal touch to your customersí experiences will make them feel more comfortable and more likely to choose you again in the future.
Raya Schwartz owns a seven-figure beauty business:
You have to visualise and write down what you want in present terms like itís already happened. You have to feel the energy like itís already happened.
5.) Choose your product range carefully
Buying in bulk or from a wholesaler can save you a lot of money. In the beauty industry, itís wise to try samples and read lots of reviews for making any orders. If you wouldnít expect you or one of your friends to use the products, you canít expect your customers to part with their hard-earned cash for them.
Another perk to trying out the products on yourself is that you can share tips and tricks with the customers. You can use your expertise and personal experience to impress and connect with them. In doing so, you should stand out from the competition and establish a loyal pool of customers.
Remember that the products are the foundation of your business, so research, research, research. Donít be afraid to ask as many questions as you want to suppliers.
6.) Choose your ambience
Get creative with your displays to distinguish your brand from the competition; consider having TVs with running footage of different models wearing your products. As well as making your beauty store unique, you want customers to feel relaxed when they are shopping. In theory, the longer they stay in the store and shop, the more products youíll sell.
Again, your ambience needs to be tailored to your target customer and product offering. For instance, an organic beauty shop might have minimalist displays and rustic dťcor, and a high-end cosmetics store could have swanky decor with elegant displays.
Whatever you decide, you will probably need to provide good lighting and plenty of mirrors so customers can try on sample products.
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7.) Market your business Ė the rise of social media influencers
In recent years, the beauty industry has undergone a significant amount of innovation and change, especially with the influx of social media influencers on YouTube and Instagram who advertise certain products.
Many customers like to see their role models or someone they can connect with in cosmetics and skincare adverts rather than celebs. Therefore, many brands are reaching out to social media sensations to be their brand ambassadors.
Itís been found that consumers are around 41 percent more likely to discover new products or brands by ads theyíve seen on social media and 47 percent more likely to do so by updates on beauty businessesí social media pages.
On top of this, you could speak to local beauticians and see if you can advertise your beauty store franchise in their salon. If youíre planning on launching an innovative range of anti-aging products, you could distribute flyers outside a school playground where there will be lots of parents picking up children. Or you could put up posters in your local supermarket, clothes shop, leisure centre etcÖ
Seasonal marketing works well for beauty businesses too; for instance, promoting sun creams, tanning lotions and SPF moisturisers in summer with attractive window displays.
8.) Make sure to push forward popular items
Draw pedestrians into your beauty franchise by placing popular items near the front of your shop. Many customers are loyal to specific brands and products, so consider stocking those with an existing cult following.
Use our resources
When it comes to writing a business plan for a beauty business, be sure to remember these eight tips. Starting a business can be a stressful process if you donít seek advice when you need it. We have lots of other helpful information on the Point Franchise website Ė for instance, the ĎFranchising 101: The Official Franchise Start Up Checklist.í If youíre attracted by the security of investing in an existing franchise, you can browse our full list of beauty franchise opportunities here.
Becky Martin, Point Franchise ©
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