Beauty supply stores are everywhere. There are over 40,000 of them in the United States alone, and that number is growing every day. The startup costs are subjective for beauty supply stores; therefore, opening a beauty supply store is an inviting idea for interested entrepreneurs. In addition, many entrepreneurs are curious about how to join this flourishing industry.
What Is A Beauty Supply Store?
Beauty supply stores sell a variety of products. These include skin care products, hair care, nail care, cosmetics, and more. Beauty supply stores also can link up with a range of buyers, including licensed beauty professionals, salons, and individual customers. As a result, what is an often-overlooked industry actually can translate into a flexible and profitable business opportunity?
How to Start a Beauty Supply Store in 14 Steps
The beauty products industry is competitive. There will be tough competition if entrepreneurs run their businesses online or operate out of a traditional storefront. More and more entrepreneurs have realized the beauty industry is booming, and from big box stores to salons and online specialty retailers, it is a whole house. Successful entrepreneurs need to do their research, plan wisely, and keep upfront costs affordable. As is true with all new businesses, the emphasis should be on the customer’s experience. Happy, satisfied customers translate directly to more sales. Here are 15 additional tips to help entrepreneurs open the perfect supply store for people’s beauty needs.
1) Create a Mission Statement
Many Successful entrepreneurs begin with a statement describing their business intentions, namely what defines the business and why they have decided to sell beauty products. A mission statement can also address the company’s plans for its products, customers, and buyers. Some entrepreneurs also include a quick note on their values and how they figure into their decisions. For example, if an entrepreneur is confident they will only be using products that do not test on animals because of their values, this would feature in the mission statement.
2) Find a Niche
Choosing a specific niche is essential in a competitive market. Entrepreneurs can sell various products and still categorize them within a particular place. It may help at this point for individuals to think about the brand they are establishing and how that brand fits in one specific category. Selecting a niche can also help lower costs. An example of a place in this industry could be “men’s products” or “aging creams and lotions.”
3) Find a Target Market
Entrepreneurs should know to whom they are attempting to sell their products. What makes sense based on the area, climate, and weather? For example, a beauty products supply store in Southern California will focus on different products than one in Alaska.
4) Research the Competition
Entrepreneurs should research the industry and know current customer preferences and trends. If a new business owner plans to do business online, their research will be much different than if they are opening a local brick-and-mortar. Entrepreneurs must remember that competition can come from the web, television, big box stores, and others. Once this research is done, the job is not. Instead, the new business owner should choose products for their line that are unique, in-demand, and cost-effective.
5) Create a Business Plan
A business plan is an essential document on which the business can fall back. The plan should include policies, store hours, product lists, and shipping policies. It should also feature plans for future operations and yearly growth. Of course, business plans can vary based on the concerns and priorities of the entrepreneur, so new business owners should do some business plan research if they have never written one.
6) Select a Structure
Most beauty supply business owners decide to start an LLC. As opposed to a sole proprietorship, LLCs protect the business owner from personal liability if there are product problems. Some entrepreneurs in this industry also favor S-corporations so that they can sell stock to new owners and expand the company that way.
7) Research Permits, Fees, and Licensing
To open the beauty supply store, new owners need:
- an operating agreement
- a business license
- taxpayer ID number
- a handbook for employees
- employment agreement forms
- other forms that might be unique to location or industry
Some entrepreneurs in this industry encounter complications in malls. Some malls have “no competition” clauses, so entrepreneurs should make sure to do some research regarding regulations and laws before settling on a location.
8) Budget Everything Out
It is essential to keep costs affordable when starting. Entrepreneurs should order a limited amount of stock, focus on branding, and decide what products are the most viable. It may help to analyze the customer base, but that is only possible after the first few weeks or months of sales. After this, the entrepreneur will have a sense of their target market.
9) Choose a Location
New business owners need to consider their proposed hours of operation when deciding on a location. Opening the business at a mall or shopping center will set those hours. Opening a small independent store will differ, as will opening a supply store that only exists online. Many entrepreneurs start online and build brick-and-mortar stores, yet some have done the opposite. Again, industry research and location-based research will be helpful here.
10) Hire Talented Staff Members
Hiring motivated, talented employees is crucial for a new business. Customers constantly seek out information about beauty products. The staff of your new store should therefore not only be knowledgeable but passionate. Terrific staff members can bring in new business and help keep customers coming back, so do not underestimate the importance of the hiring process.
11) Research Insurance Policies
New business owners in the beauty industry need insurance in these categories:
- general insurance
- liability
- health (personal)
- worker’s compensation (if there are employees)
12) Research Inventory
Many entrepreneurs in this field find successfully buy inventory from a distributor. New companies may be able to obtain samples from manufacturers, which can help make decisions. Once the business has been established, customers can help by testing samples and providing feedback. New business owners should attempt to keep costs down. Planning out orders in advance can help, especially for seasonal supplies. Make sure to keep an eye on the store’s profit margin.
13) Create an Inviting Atmosphere
When entrepreneurs set up their store, they should think about the stores they have visited that they enjoyed. Decorating and setting up the store in an attractive, pleasing manner is essential. Try out revolving displays, curate collections based on events such as holidays or proms, and tailor your readers to suit the seasons. Decorate the store in a pleasant, vibrant, positive way so that people enjoy simply being inside the store.
Note: if the store is based online, then setting up the website in an accessible and attractive way is also vital.
14) Invest in POS Software
Point of Sale software has grown more sophisticated and more affordable. So it makes sense to make a POS system the cornerstone of how the store does business.
15) Invest in Marketing and Advertising
New business owners must be masters of customer service. Providing exemplary service will bring in new customers via word-of-mouth and keep happy consumers returning. Here are a few additional tips for mastering marketing:
- send out letters to other business owners
- place ads in local and national newspapers and magazines
- place ads on social media
- create engaging social media sites and a website
- start with sales and offer bonuses and discounts
- travel to trade shows and conventions
We wish all entrepreneurs good luck with your new beauty supply store. Fantastic employees, a trusted strategy, and a prime location should set new business owners up for success.
