How to start your own beauty business in 2024

The Australian aesthetic and beauty industry is seeing increase growth at the moment. It is projected that the market will be worth roughly AUD$10 billion by the end of 2024 and is expected to grow annually by 2.41% from 2024 to 2028.

If you’re interested in fashion and beauty and have a head for numbers, then now may be the time to consider launching your own business.

Here is a guide to getting started and launching your own beauty business.

1. Choose a business structure

Before you begin, you will need to decide on what kind of business structure will fit your needs best. After you’ve chosen your business structure, it’s time to register your business and get an ABN.

After you have decided on the business structure, calculate what fixed costs you will have per month. A fixed cost is a business expense that won’t change regardless of how many customers you are serving. It generally includes things like rent, insurance, utility bills, and equipment costs.

Then there are variable costs. For example, fewer customers means you will be paying less for materials, so make sure you adjust for changes in seasonality when you have less appointments. This might include labour costs, stylist products and tools, shipping and delivery costs for restocking, and advertising and marketing costs.

You should then calculate what your revenue will be in your first year and find the break-even point. This is the point at which you have earned enough revenue to cover all your expenses. You can use this information to create a budget that will keep you on track and help you avoid spending beyond your means.

2. Register your business

Registering your business name is a straight-forward process done through the ASIC website. This website provides you with various resources on what you need to know and have prepared before you register your business name.

Then, you will need to get an ABN. Your Australian Business Number (ABN) is a unique 11 digit number that helps identify your business to the government. You can register for an ABN online.

3. Find your perfect premises

Where will you run your business from? You may look at a permanent commercial location, run your business from home, or operate a purely mobile service. Deciding on the kind of premises you require will help you get an idea of what kind of stock and equipment you need.

4. Purchase equipment and stock

Once you’ve found your premises, you need to think about acquiring the equipment, tools and furniture you will need in your salon to make it an attractive and professional environment for your clients.

Focus on the basic requirements first. You must have salon stations with chairs, mirrors, and storage. You will also need sinks and drying stations as well.

Most salons also include space for a small reception area to receive clients and to book appointments. A simple set up with a cash register, phone, notebook and card machine may be all that’s required.

5. Hire qualified staff

When you’re trying to attract new clientele, nothing will give you a better reputation than having skilled and experienced staff. During the hiring process, you should think about what skills each candidate has, as well as their personalities and work ethic. Hire employees who will fit with your desired company culture.

Remember that employee retention is just as important as recruitment. Make sure that employees know that they are valued in the business and that good work will be rewarded.

6. Protect your business

Mistakes happen, and unfortunately, they can be expensive. Insurance for beauty professionals, such as Professional Indemnity and Public Liability, can help protect your business against customer claims or lawsuits.

With BizCover, you can compare quotes from leading insurers online and purchase a policy in under ten minutes! We make business insurance fast, easy and hassle-free. For on the go cover, go BizCover.