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Running your beauty business from home is a great way to build a brand and connect with customers while keeping the costs down. While there are some things to keep in mind when launching and operating your new venture, we've compiled a simple step-by-step guide for you to follow. Read on to find out how you can get your beauty business up and running.
A beauty business will provide services to make customers look and feel better. You can provide many services including hair styling and haircuts, makeup application, face and body spa treatments, manicures and pedicures, hair removal, cosmetic tattooing and false eyelash application.
If you're starting a new beauty business, this step-by-step guide can help you figure out what you need to do:
Successfully building your beauty business requires empathy and tact. The general tasks of a beautician include analysing your client's needs and providing advice. You will need to recommend treatments, sell beauty products and handle sales transactions. The skills to start a beauty business include:
Most of the time, you don't need formal qualifications to provide beauty services. However, getting qualifications and doing online courses can help you fill gaps in your knowledge. For example, TAFE offers a Diploma of Beauty Therapy which covers body treatments and specialised facials, lash, brow and waxing services, manicures and pedicures, and makeup design and application. It costs approximately $4,200 if you are eligible for subsidy.
In some states and territories, you need to be qualified to provide hairdressing services. In New South Wales, you will need to get a Certificate III in Hairdressing in order to provide hairdressing services from your home.
The equipment you need will depend on your beauty niche. If you're running a nail salon, you will need a selection of nail polishes and a table or bench big enough to allow you to comfortably work. If you specialise in makeup application, you will need cosmetics and makeup mirrors. If you provide mobile hair and makeup services, you may also need a vehicle to travel to and from your customers.
For a basic home salon, your equipment could include:
You may also need software to keep track of your business, including:
Depending on the level of your savings and the equipment you need to buy up-front, you may need to get a loan to start your business.
Our guide to small business loans can help you figure out which option is the best for you. Keep in mind some lenders will require you to have been operating the business for at least 6 months to a year, while other lenders will require a minimum annual turnover of at least $100,000.
If you're just starting your business, you may need to think about getting personal loans. Before you apply, always make sure you're able to afford all repayments, including any additional fees or charges.
Now that you have decided on your niche and services, think about the direction you want to take your business in. In Australia, the business structures you need to know about are:
When setting up your business structure, you should register your trademarks, your business, your business's name, and for goods and services tax (GST). You should also be aware of the regulations of dealing with beautician equipment, as well as the hiring and managing of staff.
If you're using your home to run a beauty business, there are many laws and regulations to consider. A consultation with a lawyer can help you navigate these. For example, in some states you are required to apply for the local council approval if you're running a waxing or nail business, or other services that involve skin penetration procedures. If you're running the business from your rental property, you may need to check your rental agreement to see if you're allowed to do so.
A lawyer can also advise you on your advertising material to make sure it is not false, misleading or otherwise in breach of Australian Consumer Law.
In addition, you may need legal documents and policies to protect the business and staff if something goes wrong. Useful documents may include:
Sprintlaw, Lawpath, LawDepot, LegalVision and Wonder.Legal offer online legal services and legal document templates.
A lawyer can also advise you on the rules and regulations regarding your industry. The Hair and Beauty Australia Industry Association helps businesses by providing expertise and tools to the hairdressing, barbering and beauty industry.
Having an insurance plan will protect you from financial risks. Here are some types of insurance to look into:
One popular way of building your customer base is using social media to showcase your services. Create eye-catching pictures for Instagram and Facebook to attract customers. You can also build a portfolio by offering your services for a discount or offering your services to friends and family in exchange for photos and testimonials.
You can also take advantage of online marketplaces, which include:
Before putting a price tag on your services, research similar businesses nearby. Analyse your competitors to identify potential opportunities. You will need to take into account the going rates in your area, your budget, your time and your expertise.
You should also remember expenses and the financial goals for your business. Always keep an eye on seasonal changes, inflation and competition from new businesses, and change your prices accordingly.
Should I run my business from home or lease commercial space?
When you run your beauty business from home, your initial investment will be significantly smaller compared to taking out a commercial lease. If you have set aside an area of your home for running the business, you may also be able to claim some tax deductions on rent, mortgage interest, insurance premiums and council rates. Having said that, it may not be possible to run a beauty business from home if you're renting and the landlord does not allow you to do so. It can also be more difficult to maintain a work-life balance if you're running the business from home.
Should I purchase or lease my equipment?
Look at the ongoing cost of leasing equipment to decide if it's right for you. Buying equipment has a higher up-front cost, but there will be a tipping point where leasing becomes more expensive down the track.
Do I need a website for my beauty business?
It's a good idea to have a website for your business. Your site can list your services, have a gallery of your work and feedback. Create a website that's easy to navigate, allows online booking for appointments and answers customer questions.Back to top
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