15 Steps on How to Open a Beauty Supply Store

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.