How to Establish Your Own Esthetics business

 Going Independent: How to Establish Your Own Esthetics Spa
Opening your own spa or beauty establishment means you’re prepared to reach for the top. It’s an exciting time that involves a roller coaster of emotions and activities. Taking this leap is risky; there’s no way to sugarcoat that. But with the risk comes the potential that you will succeed in achieving your most ambitious career goals.
As independent estheician a spa, or salon owner means you'll have to shape your business however you see fit. You may want to model your business to include esthetician services along with other spa treatments. Day Spa's  follows this model, offering a range of specialized facial services that include anti-aging, restorative, tinting, and skin resurfacing. Clients can also choose from any number of waxing services, massages, body wraps, and other body treatments.
Another option is to create your business model along the lines of a Skin Care studio or clinic, this business focuses on providing only esthetician services such as facial treatments and skin care products.
Many estheticians find that offering their services alongside other health activities is hugely rewarding. where clients can enjoy a yoga session, steam room, acupuncture, massage,weight loss consulting or maybe even with a  waxing studio.


No matter what model you follow,
as an owner of an independent esthetics business you’ll need to understand the ying and the yang of what you’re about to get into:

You'll need to  Considering Your Options

At this point hopefully you have no doubt proven that you’re a skilled esthetician. You’ve got the talent it takes to attract and retain regular clients.
The beauty of starting your own esthetician business is that you have so many options. In additional to offering packages of the most popular general beauty services, you also have the option of choosing a niche esthetician market to focus on, such as:

• Medical esthetician – requires extra training to provide medical esthetician treatments or get some training with a medical spa
• Makeup artist – weddings, Hollywood, television news, and fashion events all need makeup artists
• Holistic esthetician – incorporate homeopathic, naturopathic, herbal, and organic skin care treatments or detoxification regimens
• Wax specialist – Brazilian, bikini, face, etc
• Esthetician combo specialization – many estheticians choose to gain additional training or certification in a specialty area and offer combined services such as massage, yoga, or acupuncture or even health coaching.
• Esthetician sales representative – this involves the sale and demonstration of beauty products
• Specially sanctioned esthetician services – depending on the your state’s regulations, you may be able to specialize in microdermabrasion, LED treatments, chemical peels, and permanent makeup

Your imagination is the limit when it comes to what services you want to offer in your own spa or beauty establishment.

Business Acumen

If you want to open your own day spa you’re going to need to have at least a basic sense of business if you want to be successful. This can be a stumbling block for many experienced estheticians who are great at their craft but don’t take the necessary time to learn how a business works. The fact of the matter is, the business-side is just as important as the beauty-side. While taxes and city licensing might be new subjects, you can rest assured that once you conquer the business learning curve you can go right back to focusing on the services you provide as a professional esthetician.
Here is what you’ve got to learn about as a prospective independent esthetician business owner:

• Renting or buying a business location
• State board of cosmetology and health department regulations
• City or county business licenses
• State and federal employment law and taxes

If the thought of developing a business know-how is absolutely horrifying you can always hire or partner with someone who will do this for you. A good husband and wife team

Renting or Buying a Business Location

You know the adage – location location location. It holds just as true for an esthetician business. You can browse real estate near places where your target clientele already congregate or you can take a risk and open up a new location in an area you’ve calculated is under served with less competition. The number of walk ins combined with your already established regular clientele will determine how aggressive you need to make your future advertising campaigns.
Once you’ve selected a location you can also consider property and liability insurance.

Cosmetology Board and Health Department Regulations

When you’re shopping around for a business location it’s important to be aware of your cosmetology board and state health department regulations as they relate to the requirements for a salon or other type of beauty establishment. If the establishment you’re considering renting doesn’t have features like a public bathroom and sinks you will need to get these installed. That means potentially hiring an architect, electrician, and plumbers. This can increase costs significantly.
Check with your state’s board of cosmetology and health department to see exactly what building standards business like yours must abide by. These commonly include:

• Adequate ventilation system
• Hot and cold running water
• Potable drinking water
• Hand washing facilities
• Public toilets
• Minimum square footage requirement per esthetician chair or work station

City or County Business License

Before you can open your own salon or any other type of esthetician establishment you need a business license. Your city hall or county administration building usually issues business licenses. When filling out your business license application you will likely need the following:

• Business address
• Business name
• What kind of business you are registering, such as an LLC or sole-proprietorship

A sole proprietorship is a business in which you are the sole owner and operator. A limited liability company (LLC) can shield you from risk while allowing you to report business earnings as personal income, and is the model you can use if you plan to hire several employees or open a franchise.

Know State and Federal Employment and Tax Laws

If you’re thinking about hiring employees or working with partners then you must learn about your state’s employment law as well as federal employment law. Making a mistake in this aspect of owning an esthetician business can have huge ramifications, leading to fines and even bigger headaches.
Your state’s board of cosmetology should have the appropriate resources for you to learn about applicable state employment laws. For example, New Jersey and Pennsylvania do not allow you to rent booths or rooms to independent practitioners.
The beauty industry involves commission, salary/wage, and independent rental work. As a business owner you are responsible for fitting these professional work relationships into the federal tax code. Out of recognition that this can be complicated and confusion, the IRS has published a specific tax guide for beauty salon owners.
This is basically how things stand with federal employment law and the beauty industry:

• If you pay someone an hourly wage or annual salary then they are considered your employee
• If you pay someone a commission then they are considered your employee
• If you rent a booth or room to someone and that person sets their own hours, provides their own tools and supplies, sets their own prices, and sees their clients, then you can consider that person an independent contractor

If you choose the sole-proprietor route and you own a calculator then chances are you can get by doing your own taxes. If you have employees or room/booth renters then things get a little more complicated with W-2s, 1099s, and payroll taxes to name just a few. In this case you’re advised to spend your first tax year with someone who is experienced to help guide you through the paperwork.

Funding Your Esthetician Business Idea

Before you think about opening your own practice you should have years of experience, an established base of clientele, and enough savings to fund your idea. It is this author’s opinion – along with that of many others in the trade – that you shouldn’t go into debt to start your business. Ultimately though that decision is up to you, and plenty of other people will tell you that if you have an awesome business plan and experience then a loan can be worthwhile.
Regardless of how you initially fund your business, the following list shows expenses you can expect to incur along your way to opening (cost estimates are omitted as these can range widely from location to location):

• Monthly lease/mortgage payment
• Cost to renovate your business to meet state code
• Property and liability insurance
• Business license cost
• Cost of beauty supplies and esthetician tools
• Cost of basic materials like tables, chairs, mirrors, and waiting area furniture
• Business expenses like a computer, webpage, telephone, business cards, cable TV subscription, and magazine subscriptions
• Advertising and marketing campaigns
• Hiring employees
• Your own costs for your basic living needs: rent/mortgage, transportation, food, medical insurance, etc
• Accountant, if needed
• Extra expenses for repairs and other unexpected costs

While you must consider these expenses, they are not presented to discourage you. There are plenty of success stories out there; you need look no farther than the city or town where you live. Take Lisa Crosier Skincare and Beauty Boutique as an example, located in the town of Bellingham, Washington population 85,000. With a soothing hydra facial starting at $170, this business brings in enough revenue to support its eponymous founder and owner who is a master esthetician with 20 years of experience, as well as three additional employees.

Finally! You’re a licensed esthetician and ready to start your first job, whether as a solo business owner or as part of a salon or spa team. Let’s assume you have the administrative details, like your business license or a job lined up. In order to truly kick-start a successful career, you need to make these 8 things a priority.
1. Spend time building a website. You need a well-crafted website. Website design can vary in pricing, but there are some affordable options out there that market the image you are putting out to the consumer about your skincare clinic. Find websites that appeal to you and scroll to the bottom of the site to find out who the web designer is. Contact them. Offer to do a trade for services in exchange for your website design. Please note: this is only necessary if you operate as a solo esthetician. If you work at a spa, it's likely they already have a great website.
2. Become a social media master. Everyone knows you need a business Facebook page. And an Instagram. And you have to post often. Find groups on social media who have potential to be your clients. Request to join the local mom’s Facebook group, the running club, the cooking club, etc. Cultivate your clients and market to them. If you decide you want to invest some advertising dollars into social media, Facebook ads can target your ideal client demographic with an affordable budget and are super easy to set up.
3. Join esthetician support groups on Facebook. There are some incredible groups that will help build your business, offer tips and tricks on marketing, equipment, treatment protocols, skin care and more. Esthetician Connection is one of the largest, but there are many support options out there. Some groups can be harder to fit in than other groups, so find the one that works for you.
4. Schedule time to handle your finances. Block out at least 4 hours a week that is dedicated time to do administrative tasks like ordering supplies or organizing client information. Do not think you can do a little bit at the end of each day or that you’ll get caught up on the weekend. By making definite time for it in your work week, you’ll make it a priority. Use your downtime to do additional marketing, like scheduling a year’s worth of promotions in advance. Get your creative juices flowing and make it fun.
5. Make building your book a priority. Think outside the box for ways to connect with your potential clients. There are low-cost or no-cost marketing options there. Contact the High School health class instructor and offer to teach a class on skin care and acne. Bring business cards and a skin care product for a drawing (SPF is a good one). I tried this and was asked to come annually. I also gained some mothers as clients when the students brought the business cards home. Contact businesses where women work. Banks, credit unions, dental offices, for example. Ask the office manager if you can have the last 15 minutes of a lunch hour or fifteen minutes at the end of the day. A quick presentation about your services, with a discount coupon for the first visit, can give you some face time with possible clients and build the trust your clients need to begin regular skin care treatments. Building a steady client base in your first year is crucial to succeding long-term.
6. Re-book your clients when they leave. It’s a MUST. If your revenue from one client visit is $100, and you want to see the client once a month, you can count on $1,200 in revenue from that client annually. Book them before they leave. If you wait for them to call you, it's easy for time to slip by and suddenly, instead of every 4 weeks, they are coming in every 5 or 6 weeks. Your annual revenue from that client slips when they don’t reschedule as they leave from their appointment.
7. Make learning a priority. On MiladyPro alone you can take dozens of online classes, watch video tutorials, or download business tools (like client intake forms) right now. There are also hundreds of free or nearly free webinars and education on treatments and products from vendors online. You will only grow if you take the time to learn new things.
8. Celebrate the successes! Recognize the highlights and give yourself a pat on the back when you’ve reached a milestone. Set your goal and then cartwheel when you reach it! A fully booked day, three fully booked days, your first $500 day in revenue, a five-star review. It doesn’t have to be a $100 dinner out at your favorite restaurant, but be mindful of your success. A nice glass of wine and a toast with your bestie, a good cup of your favorite coffee or tea, a bubble bath in some candlelight while you bask in your accomplishments; anything that will keep you motivated.




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