How To Start A Beauty Supply Store [Updated 2022] - Growthink

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How To Start a Beauty Supply Store

Starting a beauty supply store can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn how to open a beauty supply store successfully.

Download our Ultimate Beauty Supply Store Business Plan Template here->

15 Steps To Start a Beauty Supply Store

1. Choose the Name for Your Beauty Supply Store
2. Develop Your Beauty Supply Store Business Plan
3. Choose the Legal Structure for Your Beauty Supply Store
4. Secure Startup Funding for Your Beauty Supply Store (If Needed)
5. Secure a Location for Your Business
6. Register Your Beauty Supply Store With the IRS
7. Open a Business Bank Account
8. Get a Business Credit Card
9. Get the Required Business Licenses and Permits
10. Get Business Insurance for Your Beauty Supply Store
11. Buy Beauty Supply Store Equipment & Inventory
12. Develop Your Beauty Supply Store Marketing Materials
13. Purchase and Setup the Software Needed to Run Your Beauty Supply Store
14. Hire Staff
15. Open for Business

1. Choose the Name for Your Beauty Supply Store

The first step to starting your own beauty supply store is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your beauty supply store:

1. Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
2. Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
3. Think about marketing. Come up with a name that reflects the desired brand and/or focus of your beauty supply store.

2. Develop Your Beauty Supply Store Business Plan

One of the most important steps in starting a beauty supply store is to develop a beauty supply store business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a sample beauty supply store business plan can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

1. Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your beauty supply store.
2. Company Overview – this section tells the reader about the history of your beauty supply store and what type of beauty supply store you operate. For example, does your beauty supply store cater to professionals or the public? Will you offer online sales with an eCommerce store or only sell goods at a physical store?
3. Industry Analysis – here you will document key information about the beauty supply industry. Conduct market research and document how big the industry is and what trends are affecting it.
4. Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, what is their profession? Are they in a certain income bracket? What do they look for when buying beauty products?
5. Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
6. Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
   • Product: Determine and document what products/services you will offer
   • Prices: Document the prices of your products/services
   • Place: Where will your business be located and how will that location help you increase sales?
   • Promotions: What promotional methods will you use to attract customers to your beauty supply store? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
7. Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
8. Management Team – this section details the background of your company’s management team.
9. Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your beauty supply store make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Beauty Supply Store Business Plan Template and complete your plan and financial model in hours.

3. Choose the Legal Structure for Your Beauty Supply Store

Next you need to choose a legal structure for your beauty supply store and register it and your business name with the Secretary of State in each state where you operate your beauty supply store.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the beauty supply store and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a beauty supply store together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a beauty supply store include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a beauty supply store is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your beauty supply store, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Beauty Supply Store (If Needed)

In developing your beauty supply store plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a beauty supply store to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a beauty supply store that they believe has high potential for growth.

5. Secure a Location for Your Business

Location is key for a new business. You’ll want to find a spot that is visible and accessible, especially if you’re starting out with a small budget. A good location will also have a lot of foot traffic, so consider your target market when choosing a spot.

To find the right space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Beauty Supply Store With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Beauty Supply Store Business Plan Template and complete your plan and financial model in hours.

7. Open a Business Bank Account

It is important to establish a bank account in your beauty supply store’s name. This process is fairly simple and involves the following steps:

1. Identify and contact the bank you want to use
2. Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
3. Complete the bank’s application form and provide all relevant information
4. Meet with a banker to discuss your business needs and establish a relationship with them