7 Common Reasons "Solo Estheticians" Fail
For many estheticians working solo, the allure of opening a salon suite is undeniable. It promises autonomy, the freedom to personalize the client experience, and the potential for higher income. However, the reality can often be far from what's anticipated.
As I comb through the various social media groups, I constantly read stories of business owners who are ready to throw in the towel because things didn't turn out the way they expected. According to Forbes, the Bureau of Labor Statistics Report suggests that "20% of small businesses fail in their first year...and 50% of small businesses fail after five years in business." So, that equates to about 1 out of every 5 businesses failing in the first year. This statistic may be shocking, but it serves as a reminder that owning and running a successful salon suite requires more than just deciding to go solo, renting a space, and performing services.
In this blog, I will share some common reasons why many "solo estheticians" fail and how you can avoid these pitfalls to build a successful and sustainable business.
"Solo Estheticians" Don't Have an Entrepreneurial Mindset
Adopting an entrepreneurial mindset is the first step in overcoming challenges as an independent esthetician. This means viewing your salon suite as a business rather than just a place to perform services.
I will be honest; I cringe whenever I hear the phrase "going solo!" It sounds like this luxurious journey where you will make loads of money and have all the free time in the world. In reality, most people initially find it quite the opposite.
Being an entrepreneur means taking on a whole new set of responsibilities, such as marketing, bookkeeping, inventory management, client retention strategies, and more. You will likely wear many of these hats initially while also trying to focus on providing excellent services to your clients.
Don't let this discourage you! Embracing an entrepreneurial mindset means being willing to take on these responsibilities and continuously learning and growing as a business owner. It's about understanding that the success of your salon suite is in your hands and that you have the power to make it a thriving business.
On the other hand, I encourage you to be honest with yourself. If you find that you don't have the mindset or skills to be an entrepreneur, it's okay. Don't force yourself into a situation that may not be right for you. Consider partnering with someone who has complementary skills or exploring other business models that may better suit your strengths and interests.
Lack of a Business Plan Can Result in Failure
I am sure you have heard the saying, if you fail to plan, you plan to fail. As I coach esthetic business owners, the lack of a business plan seems to be a common trend. The only plans most have are to rent a room, list services/prices, set up social media, and buy products to perform services. While these are essential steps, they do not constitute a business plan. You may think you don't need a business plan because you will fund the start-up expenses yourself. However, a business plan is not just for securing funding; it serves as a roadmap for success.
A well-crafted business plan should include detailed market research, financial projections, marketing strategies, and growth plans. It will help you identify potential challenges and create solutions to overcome them. It also allows you to track your progress and make adjustments as needed.
While in esthetics school, we had to complete a business plan. Given my background in business, I put 100% into the plan, although I had no desire to open a business. I crafted a plan for an esthetic business that catered to male clientele only. As chance would have it, a few months after graduating, I decided to start my business close to home. Although I decided to focus on female clientele, having the business plan in place helped me tremendously. It gave me a foundation to start and the ability to quickly adjust and pivot.
Lastly, if you plan to enter into a partnership, a plan is a MUST. I have seen many relationships go sour because of a lack of communication, differing expectations, and no business plan. A well-crafted business plan will help to avoid these pitfalls.
Lack of Business Education and Training
As an esthetician, your primary focus may be providing exceptional client services. However, owning a salon suite requires more than just technical skills. It also requires business knowledge and training.
Owning a business is a huge liability and should not be taken lightly. Without proper education and training, you may make costly mistakes that could harm you and/or your business in the long run. The excuse of not knowing doesn't cut it when it comes to business ownership.
For example, a common trend I see is owners who are surprised there are state rules that govern certain practices like gift card expiration or deposit amounts. The one often violated in this industry is the independent contractor or, in most cases, the misclassified employee. Just like not knowing is not an excuse," that's the way it has always been done" doesn't cut the mustard either.
Various resources are available, such as online courses, workshops, books, and mentorship/coaching programs specifically tailored to aesthetic entrepreneurs. Additionally, you can seek out duty experts to assist you with running a business.
Leasing a Sup-optimal Space Can Hinder Your Esthetics Practice
Interestingly, this is often the first step estheticians take to start their business. However, this should be closer to the bottom. I say that because if you take the time to complete a business plan and get proper education and training, you are more likely to avoid renting the wrong space.
Suboptimal space rental could mean overpaying for rent or being in a location that doesn't align with your target market. It could also mean renting from someone who lacks business knowledge or has their best interests in mind rather than yours.
Your space rental agreement is a crucial aspect of your business. It's essential to carefully review the terms and ensure they align with your goals and needs as a business owner. Don't be afraid to negotiate terms that benefit you, such as lower rent or more flexible lease agreements.
Read below to see how my experience went while looking for my first space:
The first place was inside a Yoga Studio, which I thought was a great idea because we both attract people drawn to self-care. However, I realized the treatment rooms were off the classroom, which meant my clients had to walk through the class to get in, and there would likely be noise from the class.
The next space was inside an established esthetics business, which I thought was a great idea. However, upon visiting the space, I realized it did not fit the space requirements outlined in the state Board of Cosmetic Arts policy. Additionally, I found out the lease for the entire space ended in three months, and the person had no intention of renewing, which meant I would have to move again or take over the entire lease.
I ended up taking the last space, but I later realized it was not the best fit. It was a back room inside a well-established hair salon that shared a common area with a women's clothing boutique. Unfortunately, I visited the space and signed the lease outside normal working hours. As a result, I could not get a good feel for the space and the flow of clients during peak times. Let's say this: I don't know which was worse, the perm/nail smell creeping into my room or the occasional smell from the bathroom. These are all things I could have figured out if I had taken the time to hang out in the space during peak hours.
These experiences taught me the importance of thoroughly researching and vetting a rental space before committing. It's essential to ensure that it meets all state regulations, is in a suitable location, and complements your brand image.
The Marketing Misstep: Relying Too Much on Salon Fame to Gain Clients
Another challenge is relying too heavily on the salon's overall reputation to attract clients. As I mentioned above, I opened my business in a well-established hair salon in town. In my mind, all or a good percentage of the salon's clients would become my clients. However, this was not the case. While I did gain some clients from the salon, it was not enough to sustain my business.
Additionally, I realized my branding did not align with the salon's, which meant many of their ideal clients were not necessarily my ideal clients. The reality is the only expectation you should have is for your landlord to provide the things outlined in the lease.
As an independent business owner in a salon, you must establish YOUR brand and market yourself separately from the salon. Utilize various marketing strategies, such as social media, email marketing, networking events, and partnerships with other businesses in your local area.
Don't solely rely on word-of-mouth or walk-in traffic from the salon to sustain your business.
Financial Unpreparedness and Unexpected Costs Can Hurt Your Business
It costs money to make money! The upfront cost to open my business was a little over $10K. Could I have done it for less? Of course, but I believe in doing things right the first time. For example, I didn't want to be that person who offered facials but no skincare retail for homecare use. I didn't want to skimp on marketing materials, so I invested in professional branding and website design. I also didn't want to be that person who brought cheap equipment; in fact, nine years later, I still have the same equipment, and it's in excellent condition.
In addition to the known expenses, you must be able to handle the unknown financial surprises. For example, people may not be knocking down the doors right away, and you must be financially prepared to cover the rent and other expenses until your business gains traction. I averaged three clients a week during my first month in business. Each month, things got progressively better, and I was 100% booked within a year's time. In addition, there are other unforeseen occurrences like short-term closures due to weather conditions like hurricanes and COVID, which I recall required us to be closed for two solid months.
My recommendation is to crunch the numbers to see how much you need to open, how much income your business needs to generate monthly, and how much you need to have in six months' reserves to cover any unforeseen financial circumstances. It may seem daunting, but being financially prepared is better than scrambling to make ends meet in the long run or, worse, closing your business because you can't!
Not Understanding the Power of Branding and Experience to Attract the Ideal Client
Creating a unique brand and customer experience is essential for standing out. This means investing time and resources into branding elements like logos, decor, and service presentation.
A client and I recently explored her branding. She quickly realized the name of her business is likely a deterrence to attracting her ideal clients. Words create images and feelings, and her business name did not align with the image she wanted to portray. Additionally, colors, decor, and overall aesthetic can make or break the customer experience. Take a step back and look at your branding from an outsider's perspective. Does it align with your business values and target audience? Is it visually appealing and inviting to potential clients?
In addition to branding, creating unique customer experiences is essential for retaining existing clients and attracting new ones. This can include personalized consultations, customized services, and small gestures like complimentary beverages or hand-written notes. These little details can make a significant impact on the overall customer experience and set your business apart from others in the industry.
Remember, everything you do in your business is branding!
Starting and running a successful beauty business involves careful consideration and planning. Initially, understanding the importance of thoroughly researching and vetting potential rental spaces cannot be overstated; it is crucial to ensure the space meets state regulations, is in an ideal location, and aligns with your brand. Equally important is building an independent brand rather than solely relying on the reputation of the salon hosting your business. Effective marketing strategies, including social media, networking, and email marketing, are essential to establish and promote your brand. Financial preparedness is another critical factor – it's not just about covering known expenses but also being prepared for unforeseen costs and slower business periods. Investing in quality branding and creating unique customer experiences can significantly differentiate your business from the competition and enhance client retention. By addressing these seven key areas, you'll be better equipped to navigate the challenges and build a thriving beauty business.
