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How to start a beauty business in the USA

Being attractive and well-groomed is a basic need for many people. That is why the beauty industry is one of the most profitable business areas. 

It is expected that the industry will reach $716 billion by 2025.  Other researchers have also claimed 3,168 non-branded high-value beauty industry searches. The figures acknowledge 9,393,580 Google searches in the U.S on a monthly basis. 

The above graph is a representation of the comparison of transactional and informational searches online publishers do lead. Publications are one of the leading six market shareholders for informational searches.  

Just three of the top ten are from the beauty industry. Also in more product-centric searches, information sites such as Allure, Good Housekeeping, and Byrdie performed appropriately.

With this growth forecast, it is great to see independent beauty entrepreneurs stepping into the beauty business in the USA by making themselves organic formulators.

If switching to the natural beauty industry inspires you, we will help you start your journey as a beauty entrepreneur.  Here, in this article, we are summarizing the key points to start a business in the beauty industry. Let’s get started!

Before we start

Study the demand, purchasing power, and competitor situation in the USA. This will allow you to choose a relatively free niche in terms of manufacturers and price range of goods, draw up a real business plan and focus on finding premises far from competitors. Find reliable suppliers offering products at competitive prices.

Guide to Open a Salon in the USA: Key Points

First steps and first difficulties

What do you want to get as a result; a super-trend barbershop or a classic nail full-cycle salon, an economy class or a premium spa? A lot depends on the choice: from the amount of initial investment and the choice of location to positioning and methods of attracting an audience.

It integrates much more than this! You have to carry out a lot of research to assure that if there is a need for a Salon in that specific location or not. And, you can give enough effort to flourish the business.

Although the salon business model canvas has been known for lean entrepreneurship in the technical field. It can be used to open different business structures, including opening aesthetic skin clinics.

Think as a Beauty Business Owner

Sorting the mindset to begin your journey as a Salon entrepreneur is essential. That is to say, working on yourself is also one of the important factors in beauty business success. Many experienced Salon owners have revealed that the greatest obstacle in your way while starting a beauty business in the USA is you only!

When you work on those steps needed to build a strong beauty brand, then, you will get to know that starting skincare, or haircare business is a difficult yet rewarding step to take. Simple putting, get ready for it!

How you are managing the challenges coming in the way to begin a beauty brand defines your success. And, this implies the requirement to promote growth, a positive mindset, and the ability to have a clear vision of your Salon business. 

Choose a suitable location

It is not uncommon for a woman to buy perfume, a new lipstick, or shampoo because she walked past the Salon, decided to look in, and make herself pleasant. This is why a good location is very important.

Look for premises on the ground floors of very busy streets away from the competition. Considerably, your salon windows and signs should be seen by the largest number of city residents. You can rent premises in a popular shopping center, near a market or entertainment centers.

There is no point in hoping for a low rental price in such areas. If you have the financial capital to buy a property, it makes sense to consider this option. Experts recommend determining the maximum allowable rental price within 10% of the turnover.

Right product on the right place

Special racks and shelves made of tempered glass are needed to place goods. Special attention should be paid to shop window decoration, signage, and store design. Expensive repairs are not necessary. It is better to choose the colour of the walls from neutral shades; against their background, bright packaging of goods will look more impressive. Glass shelves, mirrored surfaces sparkle with proper lighting.

It makes sense to hang large advertising posters on the walls of the cosmetics and Salon product manufacturers whose products are presented in your Salon. 

A comfortable desk and powerful salon CRM software allow you to control your daily Salon activities, assuring sales and customer satisfaction at the same time. 

Hiring the best Salon staff

When establishing a new beauty salon, the Salon owner faces two main problems – finding a place suitable for all parameters and hiring highly qualified and experienced staff members. If you have dealt with the first question, then even more difficulties may arise with the second. 

It is difficult to attract experts in the beauty field, and in general, there is a shortage of real professionals in the market.

Hiring young and inexperienced employees will not be successful and can ruin the reputation of the most luxurious Spas with excellent assortment and prices. Necessary requirements for the staff:

  • Deep knowledge of each brand and its expertise.
  • Possession of the full amount of information about all types of decorative cosmetics and the benefits of skincare products.
  • Politeness and at least minimal knowledge of the psychology of the buyer.

Documents and licenses

You can register the beauty business as an individual entrepreneur. For registration of Salon business owner, the following set of documents should be submitted to the tax office:

  • Application for registration of an individual entrepreneur, certified by a notary.
  • Application for choosing a taxation system (simplified taxation system).
  • A photocopy of the taxpayer identification number.
  • A photocopy of the passport (all pages).
  • Receipt for payment of the state fee.

After receiving a certificate of an individual entrepreneur, you should buy a cash register, register it with the tax office and conclude a service contract with a specialized company.

Find the requirements of these services even before searching for premises and starting repairs. To obtain permits, it is necessary to prepare documents for the property or a lease agreement, a sanitary passport for the premises, etc. The presence of employees implies registration in the pension and other off-budget funds.

Salon Marketing is a must

There are a lot of advertisements in the media about the new beauty business. A beginner with a small start-up capital will not be able to attract attention with standard techniques. An original and bright outdoor advertising near the store and on the busiest streets of the city gives a greater effect.

Use the power of the Salon software. Leverage email and SMS marketing to send offers and discounts to your customers. The all-in-one software solution supports you in engaging customers. These parameters not only give a lift to the customer referral process, however, but also assure more engagement. Together, all these tactics bring tangible Salon benefits.

Concluding Remarks

The advantages seem obvious; an obvious Salon business plan, a wide field of activity, a wide range of products, constant demand. 

However, before rushing headlong into the cycle of plans, tasks, and spending, it is important to clearly define for yourself the phasing of actions. 

It is most effective to learn from the experience of already successful Salon entrepreneurs in the USA who have already mastered this niche in order to avoid unpleasant surprises in the future. 

Last but not least- provide only quality services to your potential customers!

Thanks for reading!

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