How to open a beauty store: 10 key steps
Whether you operate in a physical store or online, you will face fierce competition in the beauty product market.
Your beauty store will compete with beauty salons, box stores, specialty stores and even TV shopping malls. How can beauty products enterprises remain invincible in the competition of beauty products?
The key to success is to start with research and then plan carefully to keep your costs low. Having a retail customer experience will give you a lot of lead in the game. We will start with the skills of opening physical stores.
1. Think of a mission statement
A mission statement describes what your business is and why you choose to sell beauty products.
Do you want to empower customers and help them understand which beauty brands are their best choices? Do you want customers to leave your retail store with beauty products specifically selected for them?
2. Decide on a niche and beauty brand
Most successful beauty products companies sell a wide range of products. But there may be a market segment in these huge products. Choosing a market segment helps reduce costs.
For example, do you want to focus on anti-aging products? At present, anti-aging products, especially face cream and lotion, are the main sellers of beauty products industry. Do you want to sell baby care products?
3. Know your target market
Like many enterprises, your sales target is all adults with purchasing power, not just women. Your market will depend on local and regional demographic data, including age categories for all genders.
In addition to age, the climate of your area will also have an impact. Will your hands dry and crack in the long winter? Do you need sunscreen and skin care products in hot weather?
4. Study the local beauty stores to see if there are any competitors
Don't limit yourself to studying other local beauty stores. Yes, they are your competitors.
Remember, your competitors also come from TV and online advertising (TV shopping), stores, discount stores and specialty stores.
5. Write a business plan
The business of beauty shops was affected by the epidemic, and beauty salons were considered unnecessary and forced to close. However, this is the time for consumers to turn to beauty stores.
Accept that your store may close. Including online orders and transportation capabilities in your business plan is critical to your success.
6. Research permits, licenses and fees
The following are the basic materials you need: business license, taxpayer ID card / employer ID number, employee handbook, employment agreement form, business agreement (if you are a limited liability company).
If you plan to operate in a mall type place, be careful. Some of them have "no competition" criteria. If your store is considered to be competitive with existing stores, you cannot open a store. For example, there is a discount store with oneortwo rows of beauty products. Before you try to set up your store there, study the rules or agreements involving a group of stores.
7. Determine the budget
Remember, every beauty store starts from scratch. You can also.
When you start limiting the amount of inventory you order for your store, you can keep costs low. In this way, you can focus on your brand and see what is selling and why. You can analyze your customer base, which may be different from your target market.
8. Decide the location - shopping mall or shopping center?
As we said, some large shopping malls or shopping centers may have regulations on the type and number of stores.
It is meaningful. You don't want to open a beauty company in a large shopping mall or shopping center, and then open another beauty company in the same place.
9. Hire amazing employees
Put a big star next to this topic. This is crucial.
Expect that every customer of yours wants to ask a question about the product. You need knowledgeable employees and people who really love beauty.
10. Check the insurance policy
The types of insurance you need include: basic / general insurance, liability insurance and health (personal) insurance. If you have employees, you need workers' compensation insurance.
An insurance broker can guide you to the policies that business owners need.