With beauty franchises generating billions of dollars per year, it is an alluring business venture for entrepreneurs. In fact, the growth rate for the industry as a whole has increased year-over-year with the trend expected to continue. As enticing as it seems, business owners should be careful not to let the dollars signs cloud their judgement. After all, starting any new business requires substantial forethought and research. But even if you have the habits of a successful entrepreneur and have done your homework, there are certain aspects of opening a personal care business that can easily be overlooked. Read on for important actions that promote a successful launch of beauty franchises.
Understand The “Franchise Rule”
Entrepreneurs entering into a beauty franchise agreement need to be familiar with and understand the Franchise Rule. It was enacted by the government decades ago to help protect franchisees from deceptive practices by franchisors. As such, the Franchise Rule requires the disclosure of key pieces of information to prospective buyers. The report must include facts about the investment that pertain to the franchise including specifics about executives employed by the company and current franchisees. Armed with this data, prospective franchisees are able to do a risk analysis assessment before making a financial commitment. In short, make sure you have an understanding of the Franchise Rule before you sign on the dotted line for that beauty business.
Choose A Niche
There are many specialties within the beauty industry so you will want to choose a niche carefully. For example, entrepreneurs can opt for beauty franchises that focus on hair, nails or skin care just to name a few. Be sure that your specialty not only piques your interest but also reflects your personality. This is vital for a booming business since you immediately become a walking billboard for your shop. Essentially, it is a way to advertise your business for free. Naturally, if you are a person who likes makeup and wears it everyday, then opening a cosmetics franchise might be right for you. Alternatively, if you find yourself obsessing over your nails, then starting a nail salon would make sense. Regardless of which you choose, selecting a niche of interest to you is important to the overall health of your beauty business.
State Board Regulations
When you are starting a business that falls into the personal care vertical, you must review all of the State Board regulations. Indeed, there are an abundance of rules governing the industry which vary by state. For example, some states define the minimum size of facility based on the number of operators. Additionally, the examiners typically specify the of equipment that can be used for services. In hair salons, for instance, it is common for regulations to dictate separate rooms with hard walls for tanning beds and massage tables. Moreover, you will have to comply with prominently displaying the licenses for your shop and employees. You will likely find that regular inspections are required with the occasional surprise visit always looming from a state board representative. With all of the requirements for beauty franchises, it is important that you consider the State Board regulations.
Cater To Your Preferred Clientele
When you cater to your preferred beauty clientele, you are setting yourself up for a higher chance of success. Fortunately, the personal care industry offers a variety of segments from which to choose. Namely, there are no-frills type of shops, full-service salons, specialty services and those that tailor the experience for a particular demographic. Of course, there is also the opportunity to combine two or more of these in order to attract your ideal customer. For example, business owners can choose a franchise that specializes in hair services just for men. Suffice to say that you will have no shortage of beauty franchise options that will allow you to cater to your preferred clientele.
Partner With The Right Franchisor
The beauty industry is competitive so it is important for business owners to partner with the right franchisor. Very simply, you are looking for a mutually beneficial relationship and seeking to find a business partner that fits your vision. This means that you have to evaluate your priorities and expectations before making a commitment. If you make a mindful decision, you will have your shop up and running quickly with the help from your franchisor. In turn, your new business has the potential to be profitable in a shorter period of time. Conversely, unsupported franchisees can find themselves grappling with new business challenges alone. The situation becomes more troubling when you are at odds with the franchisor over royalty fees or lack of transparency. Thus, a stable association is critical to the health of your new beauty business. For that reason, partnering with the right franchisor vital.
The uniqueness of beauty franchises contributes to the overall popularity among entrepreneurs. Once you understand the Franchise Rule, you will then be equipped to choose a niche within the industry. After narrowing your focus, it becomes important to familiarize yourself with your local State Board regulations. This will allow you to narrow your market so that you can cater to your preferred clientele. Perhaps the most critical decision entrepreneurs make during the process is partnering with the right franchisor. If you are an entrepreneur in search of a new business venture in the personal care space, follow these actions that promote a successful launch of beauty franchises.