Building Your Beautician Business


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The online yellow pages have over 1000 listings for beauty salons in just about any of the top 20 cities. Needless to say competition is immense.

That’s why we’ve created this document to give you some ideas. Hopefully it can inspire you to take actions that will help your business grow. The concepts here can assist a stylist renting a booth or shop owner.

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Building Your Beautician Business

  1. 1. Winter 2013 Building Your Beautician Biz Simple Strategies To Increase Awareness, Clients & Profits Image: Baby You Burn? By: Annie Lee McMillan Consulting
  2. 2. McMillan Consulting Building Your Beautician Biz Simple Strategies To Increase Awareness, Clients & Profits Summary The online yellow pages have over 1200 listings for beauty salons in Baltimore. Needless to say competition is immense. That’s why we’ve created this document to give you some ideas. Hopefully it can inspire you to take actions that will help your business grow. The concepts here can assist a stylist renting a booth or shop owner. Taking care of your business has to be the number one priority. Making sure that your business is in good standing with local, state and federal agencies is a must. You bookkeeping and tax situations are also critical. Taking the time to establish and maintain policies, standards and awareness of your customers’ safety, hair care and time will go a long way. Your customers are more style and health conscious and are busier than ever. Frequently shop owners don’t take the time to invest in creating a marketing plan. And then implementing marketing techniques. If you’re a stylist renting a booth don’t just rely on the shop owner’s marketing. Remember their goal is to promote the shop itself. So other barbers may disportionately benefit from those efforts for various reasons. Client acquisition is a very important strategy that can get you immediate results. Contracts with businesses and the government are great ways to accomplish this. Make sure your business is up to par before attempting to secure these contracts. McMillan Consulting created this document to advise on strategies that can improve your business. We’ll be happy to help with this tasks we can and help put together a team to tackle the tasks we don’t assist with. Thank You. 410-775-6226 --- --- 1
  3. 3. McMillan Consulting Simple Strategies To Increase Awareness, Clients & Profits Taking Care Of Business One of the best attributes a beautician can posses is creativity. Like artists and some barbers, your clients come to you for your uniqueness and ability. While there are several main types of styles; being able to put your own twist on it is one of the things that will keep your customers happy and loyal. But one of the best things any business owner or self employed person can do is take care of the technical side of their endeavor. Without properly setting up and maintaining your business it will be hard to know where you are and harder to establish where you’re going. establish an entity: Your business needs to exist in the eyes of the government and other entities you may work with. This means registering your business with Maryland. Whether you want to create an LLC for your shop, or just register your sole proprietorship take that necessary step. finances: Probably the biggest reason attributable to business failure is improper finances. It commonly means the business owner didn’t have enough money to start or keep the business open. Not properly handling the existing finances in all aspects. In addition to making and saving money for use in the business that money has to be accounted for. This means you have to do bookkeeping and file your taxes. regulations: Make sure that you and anyone working in your shop have all of the licenses, hours and other requirements. You’re not always sure who your clients are. There could be a group home director sitting in your chair thinking of offering you a chance to cut the boys in his facility. If a state board agent comes in and gives you a citation for the shop or a barber not being properly licensed, the facility director will change his mind. 2
  4. 4. McMillan Consulting Simple Strategies To Increase Awareness, Clients & Profits Safety & Time Management One of the biggest concerns for salon patrons is safety. Many salons are usually filled with women and don’t have male staff on the actual premises. Of course unisex salons may have guys around. But often the beautician staff and patrons are there much later than the barbers and their customers. Safety is also about your client’s hair, nails, face etc. One of the main reasons customers leave a salon after being a faithful patron or don’t return after an initial visit is the protection of their hail, nails or face. These customers make comments such as I really liked the way she did my hair. But I felt like she was not taking care of it, and it was being damaged. Hair care is just as important as the styling. Another huge thorn in the sides of salon patrons is time management. And it starts from the appointment. Your customers don’t want to sit and wait for 30-60 minutes before their service has started. One of the best things you can do for your clients is to start servicing your client at their allotted appointment time. The main reason that stylists do not start a customer’s hair on time is overbooking. Your customers don’t want to wait for a long time before getting started. They don’t want to be in the salon for hours while getting a routine style. While you justify to yourself the long waiting periods as being busy. They don’t see it that way. They think of stylists who subject them to long periods as bad time managers at best, and inconsiderate at worst. When your customers realize you honestly care about their care and safety they’ll be much happier. They’re also less likely to leave in the event of something extreme happening. They will see that you put effort into getting them in and out as efficiently as you can. This will build up some capital for you. In the unfortunate event that they’re one day for 6 hours when it should’ve been four they more likely to continue patronizing. Versus, saying to themselves I knew this was going to happen one day because she is so unprofessional and slow. The customer who says that is the customer who is unlikely to return because they’re pretty sure it will happen again. 3
  5. 5. McMillan Consulting Simple Strategies To Increase Awareness, Clients & Profits Marketing Unlike barber shops, salon patrons will drive 15-20 miles to get serviced. So while barbers have to figure out how to get customers from within their neighborhood, your challenge is more about getting your demographic. Word of mouth does wonders for salons. A huge part of your marketing plan should include keeping your current customers happy and rewarding them for referrals. DON’T FORGET THE BASICS: Although people neglect the basics they still help tremendously. Always have business cards ready to give people. Keep flyers in your shop or on your station for you existing clients to share with others. And today a website is a basic. Gone are the days when a minimum of $5K to setup and $200/mo to maintain. Now there are places where you can design your own website and pay less than $50/mo for hosting. You can also find web designers to create a basic but appealing site for $500 or less. They’ll create a site that’s even better for $1K. After tackling the basics take advantage of other low cost tactics. Social media shouldn’t be ignored because there aren’t fees associated with them if you don’t choose to pay. Plenty of your current and prospective clients are on the sites. Before participating in hair shows investigate it. Make sure your business can benefit from it. You may do better by generating buzz for your shop by doing charitable work for a shelter or others who may need you. 4
  6. 6. McMillan Consulting Simple Strategies To Increase Awareness, Clients & Profits Customer Acquisition While the goal of marketing is to build awareness that will eventually bring in customers there are ways to directly bring in customers. When speaking of client acquisition we’re referring to methods that when successful will bring clients in to your business immediately versus more time consuming (but still necessary) marketing campaigns. Getting ‘contracts’ with other businesses is a great way to directly acquire new customers. Establishments such as group homes, daycares, public/charter schools, can be a good source of customers. The group homes, and some schools can possibly pay you directly so your money is more certain. Daycares and other schools may allow you to come in weekly or once or twice a month. The parents may be responsible for paying you and not the school. But its another chance to get clients and revenue. An often overlooked area is government contracting. Most business owners think of government contracting for security, real estate, construction, maintenance and related services. But governments buy many services and products including those of stylists. Think about the youth correctional facilities run by the state. The youths spending time in those facilities need their hair styled. Many of those institutions create proposal requests that lead to beauticians getting a contract to service the girls housed there. Government contracts are guaranteed money once you’re contracted and as long as you complete the terms of the contract. Creating a product line is also a good way to get new customers. When someone sees a product used by an existing customer they may ask where can the product be purchased. When that person comes to your shop to make a purchase, you have an excellent opportunity to convert them into a salon client. While others use products to make extra money, you’ll use them to gain additional clientele. 5