Makeup Shop Businesses - Start Your Own Franchise!

14/12/2018 18:00 | Start a business

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For many people, starting your own makeup business is a dream come true. Not only does it allow you to combine your passion and profession, but it can also be remarkably profitable, too. Here, we take a look at what you need to do if you're considering starting your own cosmetics franchise.

Starting your own makeup business in the franchise sector

Starting your own makeup business is an excellent opportunity that can be both financially profitable and personally rewarding. Many big-name companies, such as Guinot, PHB Pioneers, and CoLaz, are already offering franchise opportunities and their franchise networks are growing at an impressive rate.

Franchising is ideally suited to the cosmetics sector, as it provides business owners with a strong support network and allows them to benefit from the years of experience acquired by their franchisor. In the competitive cosmetics market, this expertise is invaluable. The versatility of the franchise model is also a key benefit, as it allows entrepreneurs to pursue a number of different options. For instance, the franchise model can be applied to both online retailers and brick and mortar businesses.

Makeup shop online UK

Online makeup shops are less common in the franchising sector, as the franchising model tends to centre itself on the concept of exclusive territories. However, it is possible to become a master franchisee for the UK and take control of the franchises operations for the entirety of the country.

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The alternative is a brick and mortar store. This is by far the more popular option and is employed by the vast majority of franchises. It allows franchisees to pick up passing trade, as well as repeat customers and internet-driven traffic.

Five top tips for starting your own makeup franchise

If you are considering opening a makeup franchise, you'll need to prepare yourself for the long and complicated process ahead. The following five tips should help you navigate the world of cosmetics franchising safely.

1. Do your research

As with any business venture, its necessary to do a considerable amount of research before you decide to invest your hard-earned cash. Though it may be tempting to rush into the first appealing franchising opportunity you find, this could end badly. There are a large number of franchises to consider in the makeup and cosmetics sector, so taking your time and undertaking thorough research is essential.

There are numerous places you can look to find out more about the business opportunities on offer. As always, the internet is an invaluable resource. Various websites are providing the latest updates on the franchising sector and detailing most franchises contact details. The industry watchdog, the British Franchising Association (BFA), also operate a particularly helpful website. Its also a good idea to visit franchising expos and conferences, read trade publications, and sign up to newsletters.

2. Talk to as many people as possible

When it comes to making informed decisions about which franchise is best for you, theres no better source than those who are already involved in the franchising sector. This means that you need to talk to both franchisors and franchisees before you come to any decision.

While franchisors will usually give you an honest account of what you can expect as a franchisee, their approach will naturally be a little more sales-driven. After all, they want you to sign up with their franchise. Talking to existing franchisees is a good way of fact-checking what the franchisor has told you and allows you to see the franchise opportunity from a different perspective. All franchisors should be willing to give you the contact details for their franchisees anyone who doesn't is likely to be hiding something.

3. Enlist the help of legal and financial professionals

Though franchising is a relatively simple concept, the legal and financial frameworks used to support this particular business model are often complicated and convoluted. This means that its necessary for all potential franchisees to enlist the assistance of both legal and financial professionals. Unless you are trained and qualified in one of these fields, youre taking a significant risk if you choose to go it alone.

A lawyer or legal representative who has experience of the franchising sector will be necessary to read over the large number of legal contracts that exist to define the relationship between franchisor and franchisee. Similarly, an accountant will help you run over the numbers and establish whether your financial projections are accurate and reasonable. This is particularly important when it comes to preparing a comprehensive business plan.

4. Prepare a comprehensive business plan

To demonstrate to yourself and others that investing in a particular franchise is financially viable, you'll need to draft a business plan. In many cases, your potential franchisor will assist in creating this document, as they will typically have acquired a great deal of experience in the matter. However, as the business plan will be used to apply for finance, you need to ensure that you fully understand and support the proposed direction for your makeup franchise.

5. Consider your options when it comes to financing

Finally, all makeup franchisees need to consider how theyre going to finance their franchise carefully. In some cases, the decision is made for you. For instance, if youre investing in a more expensive makeup company, its likely that you wont be able to find the full amount required without borrowing. In this instance, youll need to ensure that your business plan is of sufficient quality to impress a lender.

However, if youre investing in a more affordable makeup franchise, it may be possible to find the full investment without dealing with a mainstream lender. Occasionally, franchisees have access to sufficient funds to finance the environment themselves. More often than not, franchisees top up their resources by looking for additional help from friends and family. This can be a great way to meet the required amount, as long as its not too high.

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