Globally, the beauty industry has been strong. In 2020, the global beauty market was worth $483 billion. 2021 saw $511 billion. With a compound annual growth rate (CAGR) of 4.75% worldwide, the industry will be worth an estimated $716 billion by 2025 – and an incredible $784.6 billion by 2027! With the industry projected to experience remarkable growth, you may be considering making an investment in a beauty business. There are a number of franchise opportunities in the market – but how to know which one to choose? How do you get started? Investing in a beauty franchise can be a life-changing investment. Here’s what you need to know when opening your new beauty business.
Do Your Research
When determining the right franchise to join, the decision should not be made lightly. Take the time to fully research each opportunity. Understand how much it costs to start the business and what the financial health of the company looks like. When you do decide which beauty franchise to invest in, be sure it’s a financially sound investment and aligns with your values and business goals.
You’ll want to speak with not only the franchisor but also any current franchisees in the system. Known as the validation step, conducting interviews with franchisees is a great way to learn what it’s like to be part of the system. Does the franchisor offer reliable support? How long did it take for their location to break even? Do they enjoy running the business every day? How many hours do they work a week? These conversations will give you direct inside knowledge to owning the business, don’t be shy about asking questions!
Draft A Business Plan
Every new business needs a plan, and beauty franchises are no different. However, when you join a franchise, you’ll have a team of industry professionals to help you write your plan. Keep in mind that this plan will most likely need to be presented to lenders in order for you to secure loans. Having the backing of a franchisor will give you more clout with the banks, but you should still have a comprehensive plan. A solid business plan will answer the following questions:
- What is your unique selling proposition? What need are you addressing?
- Who is your target market?
- How will your business make money? When do you project to reach break-even?
- What does your marketing plan look like?
- How much money do you need to get your business started?
One of the most important steps in opening a new business is funding. A perk of starting a business with a franchisor is that they can tell you what your investment costs will be. No surprise fees or charges you’re not prepared for. Franchisors have seen it all before and can help you navigate any potential issues throughout the buildout process.
There are multiple ways to secure funding:
- SBA loans: Considered the gold standard in business financing, these loans carry a reduced risk to lenders. Therefore, banks tend to be more willing to offer financing at a lower interest rate and a longer repayment plan.
- Commercial loans: Banks tend to grant businesses commercial loans for short-term funding necessities like capital expenditures or operating costs that the business cannot afford. Often these types of loans require collateral from the business in case of default or bankruptcy.
- Family and friends or crowdfunding: Less conventional than a bank loan, borrowing money from family and friends or even hosting an online fundraiser are great ways to secure funding for your business. However, it’s important to have something in writing regarding the financial agreement between you and your family. This will allow everyone to set expectations regarding repayment.
Select Beauty Franchise Location
Location, location, location. Your franchise should be on a site that is easily seen and accessible to the street, has plenty of parking for customers, and isn’t so large it negatively impacts your profit margins. Your franchisor will be able to guide you through the site selection process, ensuring you get a site that is ideal for your business and won’t hinder your ability to succeed. They’ll also be able to aid in lease negotiations so you get a fair deal on the space.
Hire Your Staff
Your beauty franchise needs a team! Before you can open, you’ll need to hire your professional staff to take care of customers. Your team should be comprised of experienced and enthusiastic individuals excited to help guests that come through the door. Your franchisor should provide a full training program to certify your staff is properly prepared for your location’s opening.
Uni K Wax: A Reputable Beauty Franchise Partner
Uni K Wax was founded back in 1993 when Noemi Grupenmager was unimpressed with the waxing services and experiences she’d had at other beauty businesses. Instead of allowing waxing to remain a back-of-salon add-on service, she brought it to the forefront of the Uni K Wax business model. Now, almost 20 years later, Uni K Wax beauty franchise has locations in New York, New Jersey, Florida, and Texas.
With decades of experience in the beauty industry, franchisees of Uni K Wax can rest assured they are working with some of the most experienced professionals in waxing. Uni K Wax provides a comprehensive training program for franchisees and their waxers, assuring everyone is taught the proper techniques to prioritize customer comfort.
Join a brand that’s revolutionizing the waxing industry. To learn more about franchising opportunities with Uni K Wax, request info today.