Do you want to start a beauty supply store business with low or no money? If so, find here a stepwise business plan guide on the steps to follow to successfully start this business.
The demand for beauty products and cosmetics has been rising for the last twenty years. That is why the beauty supply store Business can be a very rewarding business. If you intend properly and do the analysis, this business is going to earn you high revenue.
The global Cosmetic market was 460 billion USD in 2014 and is estimated to reach 675 billion USD by 2020 growing at a rate of 6.4%. Of the cosmetic products, Skincare has the highest market share while oral cosmetics would be the fasted growing market during this period. The sale of cosmetics is seeing a shift from being traditionally purchased to buying online. Moreover, an increase in spending income, especially in developing countries is driving the market.
Beauty care products include skincare, haircare, make-up, perfume, deodorants, and toiletries as well as many others. This market is flourishing and the demand for beauty products is increasing with time.
15 Steps to Start a Beauty Supply Store Business
Find below the steps to be followed to start a profitable beauty supply shop with little or no money:
1. Understand the Market
Like any other business, understanding the local market is critical in establishing a successful beauty supply store. Research the local market and collect information on the demand and trends of popular beauty products among the local community.
Prepare a specific set of questions. Take the help of an expert and conduct market research involving your target client. This will give you the real picture. The feedback will provide you with information about the gaps prevailing in the existing market and help in better planning.
2. Write Down Your Business Plan
First of all, write down all the aspects of your Beauty Supply Store Business Plan. These include the capital, the budget for each head like rent, salaries of staff, procurement of products, advertising, and interior designing at one hand. On the other hand, there are things like getting the suppliers’ names, demand for products and the financial projections. Remember, planning makes you more prepared for the business.
3. Decide Your Slot
There are plenty of beauty products on the market. Think of some special aspects of your Beauty Supply Store Business. That is what range of products you are going to deal with. Do good research on their demand, price, availability and the target client. The more you know, the more your business will grow.
4. Complete Legal Formalities
Like all businesses, your Beauty Supply Store Business should also be registered. You can go for a proprietorship, or partnership or any other form that suits you. As per the law of the land, you have to obtain the necessary license and permit. For taxation, you have to get the Employer Identification Number (EIN). In addition, buy suitable liability insurance for your beauty supply store.
5. Beauty Supply Store Business Name
Find a suitable and attractive name for your Beauty Supply Store Business. The name should not be a common name like Glitz and Glamour or Beauty Point. Think of an innovative and appealing name like
- Charm Square
- Products Bonjour
- Beauty Jet.
Apply your imagination or take the help of a creative person.
6. Choose the Location
The success of your beauty supply store business plan depends o lot on the location of the store. Do your research carefully keeping in mind the kind of products you are selling and its target client. The place should be conveniently located and in close proximity to your clients.
7. Select the Suppliers
Selecting the supplier plays a very important role in your beauty supply store business plan. You have to do good research on the list of suppliers for your kind of products, their availability, and the discounts they offer and so on. Try to have a number of suppliers so that you never run out of stock.
8. Interior Decoration of the Beauty Supply Store
The décor and design of the store is a very important factor for your Beauty Supply Store. Try to take the help of a professional interior decorator, who will design your beauty supply store according to your budget, need and customers. Make it comfortable as customers prefer to spend a lot of time at the store before buying their items. Display of items and their proper placing in the racks are the key factors of your interior.
9. Beauty Supply Store Inventory List
You must be very well aware of the stock of your beauty supply store. Make a proper inventory of the items according to their types, size, and price. Count the inventory regularly so that you don’t run out of stock. Compare the sales and track your stock from the stock register.
Take the help of software so that it becomes easier to track the movement of products in the inventory list. In this way, you will be able to assess the demand for goods in your beauty supply store.
10. Choosing Your Staff
You have to hire personnel for your beauty supply store business. Go for presentable and experienced persons in case of the counter salesperson. For accounting, you need an efficient accountant who can deal with stocks and the movement of products. However, the controlling point should always be with you. Otherwise, you cannot run the store efficiently.
11. Marketing and Publicity
Like any other business, your beauty supply store business also needs marketing strategies. You can use social media platforms like Twitter, Facebook, or Instagram for the campaign. Apart from that, Newspapers or TV ads, flyers, banners are also effective. The word of mouth publicity is much important in this business.
12. Promote Your Beauty Supply Store
As the head of the beauty supply store business, you have to be well aware of the products you are selling. Try to use most of them, so that you can give your customers a first-hand review. Attend different fairs and conferences to have an idea of different products. Offer discounts to your customers on various occasions like the festival, end of the season, shop’s anniversary, etc to attract more customers.
13. Create a Website
Try to make a website of your beauty supply store so that more and more customers get to know about your store. Advertise the products of your store and the discounts you are offering. You can also offer online sales options through your website. Keep a comment section to know the opinion of people about your store.
14. Cost of starting a Beauty Supply Store
To start the beauty supply business, you have to invest money on different heads like:
- Fee for Registration
- Legal Expenses
- Promotional Expenses (Advertisements, Website, etc.)
- Hiring Consultant
- Renovation and decoration of Shop
- Inventory Cost, i.e. Cost of the stocks of cosmetics
- Stationery and others
- Rent for the First Year
- Salary of Staff and Consultant for First 3 MONTHS
- Furniture, Gadgets, and Security
- Miscellaneous Expense
All these add up to a total of $2,00,000 approximately. As a source, you can use your investments, or go for a bank loan.
15. Be Patient
To make serious money, you need to give some time in developing the business. Don’t be in a hurry. It is advised not to expect profit in the first year of your business. If there is no major crackdown or economic slump, you will be able to see a profit from the second year.
In conclusion, we can surely expect, as this industry is rising upward, you can expect a good return from your beauty supply store business.