Monday, October 6, 2008
Your Website
There are so many ways to build a website nowadays - it's kind of scary. I have tried several different resources, all with varying degrees of success. The one important thing is to have one dedicated staff member who is responsible for your internet operations. Once your site is up and running and bringing in some revenue, it is actually quite simple to automate this piece of the business and keep it simple. To do this you'll need to check out The 4 Hour Workweek and learn about the process.
You can find many website resources online:
Amazon.com has a reseller marketplace called Seller Central
eBay has a stores feature and a website package called ProStores
Both are good if you have a resource for discounted products as shoppers to these websites are looking for bargains.
You can also try yahoo small business and have a site customized by any number of third-party developers such as Solid Cactus.
One of the best options for selling and monetizing a website is to create a site using Site Build It. It's great because the tutorials really give you all the tools necessary to not only get a website but also market it and generate income from your knowledge of your business and not just your products.
You can find many website resources online:
Amazon.com has a reseller marketplace called Seller Central
eBay has a stores feature and a website package called ProStores
Both are good if you have a resource for discounted products as shoppers to these websites are looking for bargains.
You can also try yahoo small business and have a site customized by any number of third-party developers such as Solid Cactus.
One of the best options for selling and monetizing a website is to create a site using Site Build It. It's great because the tutorials really give you all the tools necessary to not only get a website but also market it and generate income from your knowledge of your business and not just your products.
Your Salon and Consultations
(Note - You don't need a cosmetology license to OWN a salon but you do need one to provide hair services yourself in your salon.)
A beautiful, well staffed salon that offers specialized and custom services is a cash flow dream and a major part of this business concept. Since running a salon is a business all unto itself, it is important to seek out information from industry gurus to simplify and enhance operations.
For my business, we specialize in hair extensions and hair replacement, but we also offer all traditional salon services. There are many niches in hair care and design, from curly hair and ethnic hair, to expert color and precision cutting and many many more in between. The key again is positioning yourself as an expert and your salon as the premier go-to location for these services, and keeping your retail side stocked with the products you use on your clients.
Your stylists are your best sales reps when it comes to moving product. Their clients already have instilled their trust in them ( a great book to read on this is
"The Speed of Trust by Steven Covey") and will believe their recommendations. Educating your stylists on the products is paramount. In my store stylists are required to help store customers whenever they are not with hair clients. In this way, they become knowledgeable on the retail side and help the reputation of the business grow as well. I essence, it is like offering free consultations and can ultimately lead to the customer becoming a client in the salon as well.
Compensating the stylists and sales staff can be cumbersome and requires a well thought out plan. I recommend working with a consulting agency such as Strategies and developing a team based pay environment instead of commissions, hourly wages and booth rent.
A beautiful, well staffed salon that offers specialized and custom services is a cash flow dream and a major part of this business concept. Since running a salon is a business all unto itself, it is important to seek out information from industry gurus to simplify and enhance operations.
For my business, we specialize in hair extensions and hair replacement, but we also offer all traditional salon services. There are many niches in hair care and design, from curly hair and ethnic hair, to expert color and precision cutting and many many more in between. The key again is positioning yourself as an expert and your salon as the premier go-to location for these services, and keeping your retail side stocked with the products you use on your clients.
Your stylists are your best sales reps when it comes to moving product. Their clients already have instilled their trust in them ( a great book to read on this is
"The Speed of Trust by Steven Covey") and will believe their recommendations. Educating your stylists on the products is paramount. In my store stylists are required to help store customers whenever they are not with hair clients. In this way, they become knowledgeable on the retail side and help the reputation of the business grow as well. I essence, it is like offering free consultations and can ultimately lead to the customer becoming a client in the salon as well.Compensating the stylists and sales staff can be cumbersome and requires a well thought out plan. I recommend working with a consulting agency such as Strategies and developing a team based pay environment instead of commissions, hourly wages and booth rent.
Your Retail Store
Your retail store is your showroom for the products your clients will come to you for.
Many suppliers will provide you with merchandising displays, posters, brochures and other marketing materials.
A well lit and beautifully displayed store will do wonders for your business - even on a budget. Use your business plan to fully explore your budget needs for inventory and store design. Business Plan Pro software will let you play with the variables to determine how much you want to spend and how the numbers will affect your bottom line profit.
Cash Flow Calculator
Use resources like Beauty Store Business magazine to research products and companies. The articles are great and don't be afraid to contact the people you read about to ask questions and get advice.
I recommend getting a subscription to BSB - it's free!
The key to your product sales is educated staff who then can educate your clients. Also, use the products yourself as much as possible. Being able to speak first hand about how a product works is a great selling tool. If you can't use them all, do your due diligence by researching the product online - check blogs and read testimonials - you'll become known as an expert in no time!
Sunday, October 5, 2008
Your Business Entity and Accounting
There are many ways to set up your business entity and you can get tons of advice about this online. Reading and researching your options is the best way to make an informed decision. Never be afraid to ask questions either. There are tons of people looking for advice out there and as many with the answers.
Basically your options are: (Click on each link for a definition.)
Sole Proprietor or Partnership
Limited Liability Corporation (LLC)
Corporation
There are pros and cons with each one so do your homework!
My company is set up as an LLC. Just as with the business plan, you can create the LLC on your own or with the aid of an attorney, software package or a website that specializes in setting up companies.
Going with a website or doing it yourself can be very cost effective as long as you educate yourself on what is required. Check out the following link for an affordable option.
Legal forms for your limited liability company.
You also need to set up your business legally within your state and get the proper licenses to operate. You will need a business license and a salon license. Check your State Department of Licensing website for this information. You should be able to apply online. If you want to be a cosmetologist and provide hair services yourself, you will need the education & licensing for that if you don't already have it. This is only required if you intend to provide hair services yourself.
SimpleFilings is an interesting website that handles all your business filing from incorporation to licensing and tax id. The convenience of doing it all in one step and for one fee may be worth the cost - but again do your research first.
Register your company, Incorporate or form an LLC, file your DBA (Doing Business As), Get a Website and Toll Free number Click Here Now to view SimpleFilings site.
In addition to all this, it is best to think about your accounting early on. All of the fees associated with the set up of your business need to be tracked as tax deductions. Get a good bookkeeper, or get trained in the use of Quickbooks - or both. If you establish your accounting at the beginning you'll be glad you did.
Basically your options are: (Click on each link for a definition.)
Sole Proprietor or Partnership
Limited Liability Corporation (LLC)
Corporation
There are pros and cons with each one so do your homework!
My company is set up as an LLC. Just as with the business plan, you can create the LLC on your own or with the aid of an attorney, software package or a website that specializes in setting up companies.
Going with a website or doing it yourself can be very cost effective as long as you educate yourself on what is required. Check out the following link for an affordable option.
Legal forms for your limited liability company.
You also need to set up your business legally within your state and get the proper licenses to operate. You will need a business license and a salon license. Check your State Department of Licensing website for this information. You should be able to apply online. If you want to be a cosmetologist and provide hair services yourself, you will need the education & licensing for that if you don't already have it. This is only required if you intend to provide hair services yourself.
SimpleFilings is an interesting website that handles all your business filing from incorporation to licensing and tax id. The convenience of doing it all in one step and for one fee may be worth the cost - but again do your research first.
Register your company, Incorporate or form an LLC, file your DBA (Doing Business As), Get a Website and Toll Free number Click Here Now to view SimpleFilings site.
In addition to all this, it is best to think about your accounting early on. All of the fees associated with the set up of your business need to be tracked as tax deductions. Get a good bookkeeper, or get trained in the use of Quickbooks - or both. If you establish your accounting at the beginning you'll be glad you did.
The 3 Tiered Approach
As I mentioned previously, my recommendation for building your business is to take a three tiered approach - basically you will have three components to your business. Each one is necessary for the overall success of the business. It may seem like a tall order, but using automated systems and simple processes will help you manage and build with minimum headaches and stress!
The three pieces are -
We will discuss each of these areas in more depth.
The three pieces are -
We will discuss each of these areas in more depth.
Operate a Niche Beauty Store and Salon!
The purpose of this site is to offer beauty entrepreneurs some guidance in how to start, build and successfully operate a thriving beauty business.
Starting a business, any business, requires a plan and a passion. These are the two key ingredients you must have to get started. Period. Without a passion for the business you want to run, the tough times will make it unbearable to proceed. And without a plan...forget it.
Suggestion: pick a market you know and love. Don't be afraid to have a narrow focus. Developing your business as the best at what you do will pay off even if you only do one thing.
Some ideas - natural and or "green" products, curly and or ethnic hair products, wigs and hair pieces, hair extensions, hair replacement. You can pick more than one but be careful that you choose an area that you love and will be excited to learn inside and out.
Click on the following links to get an idea of how many options there are for niche markets in hair care. It is a good idea to purchase and sample products you may want to carry & promote so you'll have first hand knowledge of their effectiveness and value to your customer.
Click on the following links to get an idea of how many options there are for niche markets in hair care. It is a good idea to purchase and sample products you may want to carry & promote so you'll have first hand knowledge of their effectiveness and value to your customer.
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Once you have decided on your area of expertise, you need to put a business plan together. This step is crucial to your success. There are many aspects of your business you need to chart, analyze and put on paper such as starting costs and cash flow.
Starting Costs Calculator
Cash Flow Calculator
Fortunately there are many resources for putting a good business plan! So you do not have to re-invent the wheel, or even think really hard. You just need to be able to understand how and why the various aspects of your business will be run. A good plan will help you do this.
You can create a plan from scratch, using resources from the SBA, a SCORE coach, IRS, an attorney, and or various other sources. You can do this all on your own by copying and modifying an existing plan like the ones found on Free Business Plan Samples site
or you can invest some money in this. I say invest because having a really well done business plan will help you get access to the financing you will need to operate your business until it becomes profitable. Becoming profitable can take anywhere from 2 to 5 years so it is a very important piece. We will talk more about this later.
or you can invest some money in this. I say invest because having a really well done business plan will help you get access to the financing you will need to operate your business until it becomes profitable. Becoming profitable can take anywhere from 2 to 5 years so it is a very important piece. We will talk more about this later.
Investing in a well written business plan is definitely worth the cost. It is your road map and as you build you can refer back to it and change it as needed to help you go forward.
Using a company like Masterplans or Growthink may be a great option. The cost of these solutions is at the high end, but their expertise in business planning and funding may be worth the expense, especially if you want to design a multi-million dollar revenue business.
There are also software packages available that are less costly and depending on your ability to analyze and define your ideas, as well as your computer literacy, these may be a good option. Check out Business Plan Pro Software. It is a very user friendly and comprehensive program.
There are also software packages available that are less costly and depending on your ability to analyze and define your ideas, as well as your computer literacy, these may be a good option. Check out Business Plan Pro Software. It is a very user friendly and comprehensive program.
The best plan for a successful beauty store business will be a three tiered approach.
1. A fully stocked retail store that is well merchandised.
2. A salon and consultation area where your products are used and demonstrated on your customers. You could offer additional education to professionals in this area.
3. An ecommerce sales channel for your products and expertise that informs, entertains and educates your customers.We will discuss each of these areas in more depth later.
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