Cosmetics Salon – How to achieve success?

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Despite the setback caused by the COVID-19 pandemic, there is no doubt that the beauty services industry is one of the most profitable sectors in which to start a small business. In 2020, about 25% of women will visit a beauty salon a couple of times a year and 12% will do so up to once a month. Moreover, according to the Credit Information code phone number philippines Bureau, the debt level of this industry in 2019 was less than 2%, which corresponds to 5% of the debt of, for example, the construction industry. Unfortunately, the positive aspects of this market involving low barriers to entry and a growing public interest in beauty services are encouraging the development of competition in the form of large franchise chains and independent salons with good locations. So how do you position yourself in this market environment and succeed in setting up your beauty salon?

Develop the right business plan

The first element when developing a strategy for starting a beauty salon should be to build a business model based on market and competition analysis. The basic elements that should be included in this model are customer segmentation, a unique value proposition, channels for reaching customers, and the cost and resource structure. By clarifying these elements, the start-up entrepreneur will be able to map out a development path to estimate the chances of success and expanding the business.



It is also worth specifying at this stage what services exactly our beauty salon will provide: the target audience of hairdressing establishments is much larger than that of nail or make-up salons. Of course, we can combine these services, but we have to take into account the costs arising from increasing staff and purchasing specialized equipment. Fortunately, these costs are not particularly high and a financial model will help us estimate the potential of investing in them. The basic elements that we should include in it are the cost of renting a premises, furnishing the salon, purchasing or renting equipment, tools and products, and, depending on the employment, the salaries of employees.