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HOW TO OPEN A BEAUTY, HEALTH + WELLNESS BUSINESS

Contact Courtney Sykes at [email protected] for Business Consultations to assist you towards your goals!

How to Open a Beauty and Wellness Business

The beauty and wellness industry is booming, and for good reason! With an increasing focus on self-care, mental well-being, and health consciousness, now is the perfect time to start your own beauty and wellness business. Whether you’re dreaming of opening a luxury spa, yoga studio, salon, medical spa, or holistic medical practice, we are here to serve you!

Why Start a Beauty and Wellness Business?

People view beauty and wellness services not just as a luxury, but as a necessity for maintaining their mental and physical health. Forbes estimates that the global beauty industry will reach a market value of $800 billion by 2027. This growing demand, coupled with the ability to foster meaningful customer relationships, makes it an exciting time to enter the market.

Step 1. Define Your Vision and Niche

Start by clarifying your vision. What type of beauty and wellness business do you want to open? Connect with Founder Courtney Sykes with your vision and we can assist you in niche-ing down your thoughts into a profitable venture!

Choosing a niche is critical to standing out in a competitive market. For example:

• Specialized services (e.g., layered laser  treatments or anti-aging facials)

• Focus on sustainability (e.g., eco-friendly products and practices)

• Technology integration (e.g., AI-driven skin analysis or virtual consultations)

Step 2. Create a Detailed Business Plan

Your business plan serves as the roadmap for your venture. It should clearly outline:

• Target Market: Are you targeting millennials seeking self-care, busy professionals, or a luxury audience?

• Unique Selling Proposition (USP): What makes your business unique? For example, cruelty-free products or herbal-based treatments.

• Startup Costs and Budget: Estimate how much will go into setting up your space, purchasing equipment, and hiring staff. P.S. We have a LIST of startup costs and fixed expenses we teach you within our programs!

• Revenue Streams & Financial Forecasting: Define how you’ll make money—service offerings, memberships, or retail sales of products. Financial forecasting is KEY to longevity and gives a true roadmap to success! Courtney Sykes will assist you with the spreadsheets involved in viewing the big pictures towards industry success!

This plan will come in handy if you need a loan or investors to finance your startup.

Step 3. Choose the Location Wisely

"Location, location, location!" This saying holds true for beauty and wellness businesses. Your location should align with your target demographic—think high-traffic areas for nail salons or serene, quieter spaces for private, “door bell entry” treatments. Ensure the space is big enough for your needs, whether that’s treatment rooms, a reception area, or equipment storage. However, keep your budget in mind. Founder Courtney Sykes can assist you with the proper price per square footage and how to negotiate leases - and ultimately connect with the correct real estate broker to lease OR purchase!

Step 4. Register Your Business and Secure Proper Licensing

Registering your business is a critical step that shouldn’t be overlooked. Choose a legal structure such as an LLC to protect your personal asset and allow you to hire W2 employees. Additionally, ensure you have the necessary permits and licenses to operate. Common licenses include:

• Health and safety permits (Example: Salon License)

• Professional licenses for employees (Example: Esthetician License, Nursing License)

• Business liability/malpractice and property insurance coverage

Step 5. Build a Stellar Team

For many beauty and wellness businesses, your staff will be your brand’s face. Ensure they’re skilled, professional, and share your commitment to exceptional service. Training is vital—especially if you’re introducing new beauty technologies or wellness practices.

Be transparent about expectations and offer incentives like commission-based pay or employee wellness programs to retain top talent.

Contact us at [email protected] to learn MORE about hiring top-tier talent in the beauty and wellness space!

Step 6. Design a Memorable Brand Identity

Your brand is more than just a logo—it’s how your customers perceive your business. Focus on creating an identity that resonates with your audience. This includes your brand name, logo, color scheme, and even your business’s ambiance.

For example:

• A chic, minimalist brand might appeal to urban millennials.

• A brand that uses earthy tones and natural aesthetics will resonate with eco-conscious customers.

Consistency in your branding across physical and digital platforms will help build trust and recognition.

Step 7. Build a Digital Presence

A strong online presence is essential for attracting modern customers. Start with these basics:

• Website: Showcase your services, pricing, hours, and location. Allow customers to book appointments online for extra convenience.

• Social Media: Platforms like Instagram and TikTok are perfect for beauty and wellness businesses. Engage your audience with behind-the-scenes clips, tutorials, and customer testimonials.

• SEO and Reviews: Optimizing your website for local search terms like “best spa near me” and encouraging reviews on platforms such as Google can significantly boost your visibility.

Step 8. Offer Exclusive Memberships and Bundles

Loyalty programs and memberships are an excellent way to ensure recurring revenue. For example:

• Monthly memberships offering a set of treatments per month and/or exclusive discounts on products and other a la carte items.

• Bundled packages with prices listed versus dollars saved.

These offerings create a sense of exclusivity and value for your customers.

Step 9. Continuously Innovate

The beauty and wellness industry is constantly evolving, so staying ahead of trends is vital. Attend industry trade shows, follow influencers, and invest in ongoing training for your staff.

For example:

• Contact Courtney Sykes for private training in modalities for your team.

• Invest in Continuing Education for your providers.

• Expand into retail by curating a selection of products that mirrors the philosophy of your brand.

Step 10. Build Relationships, Not Just Transactions

Lastly, focus on providing an exceptional customer experience that builds loyalty. Create Care Plans that matter - and truly connect with your clients in a relationship-focused way. Authenticity matters - and clients will always come to you when they see your true intentions. People first - always!

Starting a beauty and wellness business is no easy task, but it’s incredibly rewarding. By finding your niche, building a strong business foundation, and creating an inviting brand, you’ll be well on your way to success!

If you're ready to take your first step, start drafting that business plan today. Who knows? The next big name in beauty and wellness might just be yours! Contact Courtney Sykes at [email protected] to assist you in building your dream business!

BUSINESS OWNERSHIP: STEP BY STEP | LEGAL REQUIREMENTS

STEP ONE: Apply with the IRS and create a Federal Tax ID Number (EIN).

Sykes Recommendation: Make sure to register your business entity as an LLC and not a Sole Proprietorship if you ever plan to hire employees in the future.

A Federal Tax ID Number is a nine-digit tax code for a business entity, while a Social Security Number is a tax code used by an individual.

Website: https://www.irs.gov/

STEP TWO: Apply to the state Department of Revenue to create a State Tax Withholding Number.

If the business has employees, you generally need to apply for a State Withholding Number. This number is entered on state employment tax forms used to report state income taxes withheld from employee's pay.

Retail Licenses are typically issued through the Department of Revenue as well.

Sykes Recommendation: Hire YOURSELF as a W2 employee of your own company and prepare a weekly or biweekly payroll submission for yourself based on a percentage of your total sales for the pay period. Utilize a payroll company to ensure taxes are withheld. We recommend ADP Payroll. 

STEP THREE: Register with the Secretary of State you are operating in to register your business as an LLC.

The business entity will receive a "Certificate of Existence" or “Articles of Organization” in the state it is operating in. This documentation will be required for some banks to issue a business bank account to your entity, as well as other future needs.

STEP FOUR: Open a Business Bank Account with an FDIC insured bank.

Courtney’s Recommendations: South State Bank; Ameris Bank

Rates and fees vary from bank to bank. Many banks do not charge a monthly fee, but they will require the business to deposit a minimum amount to open the account. Minimum deposits can be as low as $25 for a bare-bones business bank account, though this comes with certain requirements like keeping a daily balance of $1500.

Not only does opening an LLC business bank account make life easier, it also helps you maintain personal liability protection (which is the main reason business owners form LLCs).

Think of your LLC as being another person: it makes its own money, has its own bank account, and has its own expenses. If you don’t create a separate bank account for your LLC (and you mixed your LLC funds with your personal funds), you would be “commingling” your assets and a court could "pierce your corporate veil”, which would then make you personally liable for the LLC’s debt and legal obligations.  Other reasons to have an LLC bank account are: easier financial record-keeping; easier to calculate and pay taxes; audit prevention; easy to track/deduct business expenses; professionalism and credibility (using business checks instead of personal checks).

What documents are needed to open a Business bank account? Articles of Organization/Certificate of Existence from the Secretary of State; Federal Tax ID Number (EIN); EIN Confirmation Letter from the IRS (575 CP); EIN Verification Letter (147C); Two Forms of Identification such as Driver’s License or Passport/Voter’s Registration/Credit or Debit Card/or Utility Bill; Operating Agreement for your LLC or Welcome/Approval Letter (some banks do not require this); and a Declaration of Beneficial Ownership (simple document discussing who the LLCs owners are).

STEP FIVE: Hire an accountant and open an accounting software account to organize your business expenses, create categories for those expenses, and organize income for tax purposes. Sykes Recommendation: Quickbooks Online https://quickbooks.intuit.com/

STEP SIX: Take out a liability insurance policy and a property insurance policy. Shop around to find the best pricing. Sykes Recommendation: Check out ASCP for industry-specific Esthetician liability insurance policies that are cost effective. https://www.ascpskincare.com/ For all other business types and for those seeking malpractice insurance and/or property insurance, we recommend Kuhn Insurance Group: http://www.kuhninsurancegroup.com/

STEP SEVEN: IMPORTANT! Set yourself up as a W2 employee of your own company through a payroll service and pay yourself either weekly or bi-weekly. This is a very important step, as you do not want to OWE taxes at the end of a fiscal year on personal income. You want to collect a W2 and potentially receive a tax return at the beginning of the year. Personal bank accounts can be linked to the payroll system of your choice to receive direct deposits. You can additionally set up all future employees this way as well.

PRO TIP: Do not misclassify your employees! All employees should be W2 employees if they work full time hours. FYI - 32-40 hours per week is considered full-time.

Sykes Recommendation: ADP Payroll: www.adp.com (Click the QR code below for your own private concierge from ADP that will walk you through the steps!)

STEP EIGHT: Register for a Salon License through your state Board of Cosmetology (if applicable); and/or Massage Therapy Establishment License (if applicable).

STEP NINE: Establish OSHA Written Plans per OSHA Guidelines. This consists of a Bloodborne Pathogens Exposure Control Plan and Health & Safety Written Plan. Contact Courtney Sykes for samples of these documents.

STEP TEN: Shop around for Appointment Booking/Point of Sale Systems. Ensure the software or company you are choosing prepares accurate Financial Reports. If linking Merchant Services, ensure you are shopping around for best merchant service fees regularly. In 2024, the average fee for processing credit card transactions globally is around 2.4% of the transaction value. Shop around on a regular basis to ensure you are obtaining best pricing on transaction fees through your merchant services vendor. You do not have to always choose the merchant services company that is supplied to you by your point of sale system. Ask your bank for their options!

Courtney’s Recommendation for Independent Practitioners: SIGN UP FOR GLOSS GENIUS through the link below and enjoy the PERKS I've aligned for you! If you are in need of an AMAZING booking software with client forms - and other INCREDIBLE offerings, this is your platform!

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PROMO CODE: GENIUSGRAD

Enjoy a 30 day free trial (no credit card down!) plus 2 additional months at 50% off of the STANDARD and GOLD PLANS! Super inexpensive!

Lastly, have a MENTOR! Business Owners always need someone to bounce ideas off of and find out if they are making the right decisions. Connect with Courtney Sykes at [email protected] for regular phone calls and meetings to assist you towards career success! We are here for you!