6 Reasons to Invest in a Beauty Franchise Instead of Starting a Beauty Business on Your Own
Maybe you want a more flexible schedule, are tired of working hard for someone else and not being appreciated, or are ready to start working again now that your kids are in school. Whatever the motivation, you’ve made the decision to take control of your career by owning your own business.
Starting a business in the beauty sector can be a good choice for several reasons. In addition to doing a job that leaves you feeling happy at the end of the day because you have helped people feel good about themselves, the services offered within the sector are in high demand. Demand for beauty services is expected to continue rising to $62 billion in 2022, according to IBISWorld’s 2017 “Hair & Nail Salons in the US” report.
The question is, does it make sense for you to start a beauty business from scratch or to invest in a beauty franchise? According to the Bureau of Labor Statistics, about 20 percent of all businesses in the U.S. close after the first two years of operation and a little over 38 percent after four years. However, these numbers vary greatly depending on the type of business you own. It’s generally accepted that franchises often have a higher overall success rate than startups. That’s because franchises operate under a predetermined and proven successful business model while independent businesses make adjustments and decisions to their business model as they go. Additional advantages franchises provide are:
- You Can Focus on Growing Your Business Faster: If you start a business on your own, you have to spend ages laying the ground work to get it off the ground – research, business plan creation, etc. You’ll also probably have to learn how to contend with many things you are likely not an expert in such as lease negotiation, build-out, graphic design, IT, bookkeeping, sales, marketing, and more.
- You’ll Receive Tremendous Support: Good franchise systems understand their success is tied to yours. Your franchisor will provide you with support in a variety of areas including IT, marketing, training, and sales. In addition, the executive team will make themselves available to answer question you have and to help you trouble shoot. An added bonus is that you’ll be able to tap into the expertise of fellow franchisees.
- You’ll Have Higher Earning Potential: When working for someone else, you have a fixed salary or work on commission. As a beauty franchise owner, however, you will directly impact your income by choices you make ranging from the business model you select to how much time you choose to invest in your business.
- Your Business Brand Will Instill Confidence: People like brands they know and trust. They provide them with a level of comfort unknown brands can’t deliver. It’s easier and more cost effective to attract customers when you invest in an established beauty franchise brand that has a good reputation.
- You’ll Have a More Flexible Schedule: How flexible your hours will be depends on the beauty franchise business model you invest in. As your own boss, however, you will likely be able to manage your schedule in order to do things that are non-work related and important to you.
- Financing Your Business’s Growth May be Easier: Established franchise brands are often viewed as less risky investments by lenders since they utilize a proven successful system. This, combined with any initial business success you can demonstrate to lenders, increases your chances of finding financing for ideas that would facilitate the growth of your beauty business.
As you can see, electing to invest in a beauty franchise offers many advantages. If you choose to start researching beauty franchises to see if there is one that is an ideal fit for you, you may initially feel overwhelmed by the large variety of options. To help narrow your selection, ask yourself these eight questions.
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