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Why Buying a Beauty Industry Business is a Great Investment
Thinking about buying a business? The salon, spa and barber industry has much to offer!
Hi there, my name is Susan Wos, I am the founder of Salonspa Connection and the lead business broker in the beauty world. I wanted to let you in on a few secrets about an industry I have worked in for over 30 years… let’s explore the top 17 reasons why buying a beauty industry business is a great investment!
If you are in the market for a beauty industry acquisition, make sure and check out our beauty businesses for sale!
Retirement Acquisitions
There is a huge opportunity for the younger generation to benefit from the older generations’ work! Baby boomers are retiring and leaving behind legacies all across the country…there are an endless amount of beauty businesses that are PRIME for takeover, modernization and infinite growth!
Buying a retiree’s salon, spa or barbershop is the #1 way to get into the salon industry with ease and years of momentum behind you
Table of Contents
Marketing Growth Opportunities are Everywhere in the Beauty Industry
Did you know most beauty businesses are owned by service providers with little to no marketing training? Some salon owners tend to experience success and take their foot off the gas.
With just a little bit of work- maybe an updated look and feel, an effective online marketing strategy, search engine optimization or a focus on social media absolutely explodes businesses who are already profitable, but have not taken advantage of modern day ideas.
Just think what a savvy entrepreneur could do for a business that has not fully evolved into today’s marketing strategies!! It is super easy to enhance an existing business’s online presence and implement growth strategies the current owner has not taken advantage of.
Many salon owners are too busy or don’t understand today’s marketing strategies- opportunity is knocking for those of you who love marketing but don’t want to be a beauty service provider.
Beauty Businesses Fill a Need
Unless you cut your hair at home or can inject your own botox, you have a need for a beauty industry professional. So does 90% of the human race.
There’s a reason you see salons, spas and barber businesses everywhere- the beauty business is sustainable and an ever-growing industry!
Remember the pandemic? All people could talk about was how excited they were to get their haircut again- this should tell you everything!! People need and crave beauty services to look and feel their best, be taken seriously in a professional environment and the beauty industry grows every single year.
Beauty Memberships & Recurring Revenue
One of the biggest missed opportunities in the beauty industry is adding memberships, packages and recurring revenue into the business. Very few salons, spas and barbershops have implemented this smart aspect of business. The businesses that do offer ways for happy clientele to pay a monthly fee thrive in this business model.
The best part of the recurring revenue business model is hardly anyone fully redeems the perks and memberships.
Barber Membership Example
I know a high-end barber who offers a private lounge for his clientele with comfy couches, beverages, televisions and a social place for men only.
Memberships include unlimited time in the lounge, unlimited haircuts & shaves and he sells them for $300 per month- he has 200 men in his membership program.
He reported that only 25% of his membership clients actually redeem their perks, every month! He is generating $60,000 per month in memberships alone on top of the retail he sells, add on services and haircut clients without a membership!!
ONLY $15,000 of the memberships actually get redeemed…now that is a barber profit machine!
Memberships can be implemented into almost any beauty business and is a drastically overlooked business model by salon owners. Just think about how you could buy a beauty industry business and turn it into a profitable, membership business!
Beauty Services are One of the Least Volatile Industries in Tough Financial Times
Worried about losing business in a recession? Getting a haircut or feeling good about your appearance is a recession proof service that is a high priority, even when money is tight. Just ask any woman with nice hair for beautiful skin- what would it take for you not to see your hairstylist or esthetician?
While several luxuries go by the wayside in tough financial times, the beauty industry always stays strong! People still seek out the pleasurable and fun things in life when money is tight!
Salons, Spas & Barbershops are In Constant Demand
Did you know the average person gets a haircut every six weeks? Even eyebrow waxes only last 4 weeks or less! The beauty of the salon & spa industry is that the clientele actually needs us to maintain their great appearance and look professional in the business world.
As long as hair grows and people age, the beauty industry will forever be in high demand! Don’t believe me? Just ask a few women or men with great hair- how often do you go into the salon and how much do you spend on your hair?
Immediate Benefit in Digital Assets & Established Physical Location
If you have ever started a business from scratch, you know the challenges of growing online and gaining awareness in a new location. Buying an existing salon, spa or barbershop in a great location that has good online assets skyrockets a business’ visibility from day one!
Taking over an established beauty business is much like moving into a beautiful, fully furnished house that just needs some paint touch ups to be perfect. An established salon location reels in new clientele and employees with ease, just because people know it’s there.
An online presence- a website and social media accounts can take YEARS to grow- acquiring a beauty business with a great digital footprint skyrockets earning potential, and provides tangible assets with infinite growth potential. Buying an established beauty business shaves years of hard work and effort off of an entrepreneur’s to do list!
Flexible Beauty Business Models
If you desire a business with flexible employment options or a wide variety of ways to make money, the beauty industry is the perfect place to be. Salon and spa professionals work either as an employee or as an independent contractor.
From brick and mortar beauty businesses to online mobile massage businesses, there are many ways to do business, grow and profit in beauty.
Get an in depth look at the different types of salon industry business models here.
Beauty Business Model Overview
Want a team full of happy employees? Commission, hourly and team based salons are the most popular options for owners who have a clear vision for their future and desire a great way to make money and expand into profitable markets. Think of all the franchises in the beauty space- there is a reason franchising in the salon industry is so popular!
Want a hands off, landlord/ tenant type of business? Salon suites and booth rental salons are the #1 way to make passive income from the comfort of your home! These businesses run very well with a hands on or a hands off owner.
Want to grow an online business? Adding in online sales to an existing beauty business or owning a business that is 100% managed online- like traveling makeup artists or a fleet of mobile salons are just a few examples of online beauty businesses.
Explore a Wide Variety of Models to Find Your Best Fit
The beauty industry provides a bigger range of opportunities for entrepreneurs than ANY other industry! Buy the business you feel most comfortable managing and grow it as big as your dreams can get!
Predictable Cash Flow in Salon Appointment Pre Booking
Salons and spas who pre book appointments have a really good idea of how much money will be coming in over the next few months. Clients tend to book appointments ahead of time to reserve their preferred times to receive beauty services. Booth and suite rental businesses are extremely easy to predict cash flow- owners of these businesses rent rooms and chairs so they know exactly how much they will be making in the months and years to come!
Beauty Services Can’t be Replaced by Ai or Innovation
Would you trust a robot to cut your hair? What about a facial machine operated by AI? Yeah, that doesn’t sound too good and that is why the beauty industry businesses thrive while other industries can suffer from innovation. Technological advances help our industry, it doesn’t take jobs or the ability to earn more, away. If anything, technology has greatly enhanced our ability to earn more by using salon software, measuring our products so we don’t dump money down the drain and by streamlining our consultation time so we can get busy performing services!
Infinite Room for Growth and Niche Opportunities in the Beauty Business
Once you get a bit of success in the beauty industry, it’s very hard to stop. It’s very common to see salons with more than 1 location or multiple locations with different business models, catering to individual markets. It’s also very common to see very niche businesses like salons with yoga studios or coffee shops. Catering to a specific crowd such as the LGTBQ community or a salon just for kids are incredible, niched down businesses that create community, loyalty and plenty of cash! Sometimes, the more niched down a beauty business is, the more profitable it can be.
Can Own a Beauty Business Remotely
Here is a top tip for anyone curious about the beauty industry and how it operates. Quite often salon, spa and barbershop owners are service providers who have never had business education. This means more often than not, they are working in the business, not on the business. This a huge missed opportunity for absentee ownership. The good news is, savvy, entrepreneurial minded people can run these businesses and create systems that turn salons into highly efficient, profit machines!
Easy to Grow, Expand or Franchise Beauty Businesses
Being an entrepreneur in the beauty industry means you have options. Adding new services, the latest products or implementing private label products is very common amongst the most successful salon & spa owners. Heck, some of the salon businesses we have sold include commercial real estate where you could live there!
Think outside the box as an owner of a beauty business- Add remote bridal services, photo booths, open a second location, franchise your successful business and grow into the beauty biz as big as you can dream!
Multiple Income Streams
Did you know owners in the salon, spa and barber industry almost always have multiple income streams? Outside of performing services for clients, in person retail sales and online retail sales are very common and most of the time are the cherry on top of a successful salon.
Growing additional income streams like online education or consultations, placing an ATM in the salon, serving food or drinks or adding a boutique are ways smart beauty business owners make additional income on top of services. There are an endless amount of ways to make money in the beauty industry- your only limitation is your imagination!
Beauty Industry is a Happy, Feel Good Business
Have you ever spent time in a salon, spa or barbershop where everyone looked unhappy? I didn’t think so… the thing about beauty industry businesses that makes them so sustainable over time is the feel good factor.
Unlike visiting your dentist or your accountant, people frequent beauty businesses for a positive outcome, every single time. Unless something goes wrong, every client leaves salons, spas and barbershops feeling great! Owning a beauty business means good vibes and making a positive impact, every single day.
As a matter of fact, the beauty industry is one of the only industries where the way we make people feel is often more important than the way they look.
Beauty Business Opportunities: Salons, Spas & Barbershops Pair Perfectly With…
Pairing beauty services with services and products you wouldn’t expect to see in a salon is a great way to add revenue streams and make the client experience second to none! Some of the most successful add on services and products we have seen are:
- Serving a light lunch or food for clients who spend hours in the salon.
- Providing alcoholic drinks, coffee or Kombucha
- Adding a boutique with clothes, candles, gifts, or holiday related products. This can also be accomplished with an affiliate type of relationship or by renting out your extra space to local vendors.
- Offering Yoga, pilates or exercise related services if you have the space.
- If you are in a tourist area, capitalize on destination, event and entertainment related activities- who couldn’t use a great massage on the beach?
- Moms spend a lot of money and time on their appearance and the family’s upkeep. Why not offer family friendly activities or services and serve the entire family in one visit? On site child care or activities to keep the kids entertained keep parents engaged and coming back for more!
- Provide a social atmosphere and get the clientele talking about their great experience with makeup lessons, events or host social gatherings for women! A cafe or an environment designed to keep clients engaged helps to add to the salon experience.
- Place local artist’s work on the walls or host an art gallery event.
There are unlimited ways to pair beauty services with other products and offerings- your only limitation is your imagination in the beauty industry!
Emotionally & Financially Rewarding Businesses
Successful owners of salon industry businesses report they are very satisfied with their decision to own a beauty business. Salons, spas and barbershops are happy places to be with an incredibly socially gratifying experience.
When beauty businesses are run correctly, profits soar and employees feel great about leadership. Coming to the salon or spa is an enjoyable experience for almost every human being! We often hear “I can’t wait to see you!” when sending reminders about beauty service appointments.
Owners who are not from the industry that buy beauty industry businesses, tend to have a more objective point of view and are not spending their time providing services. This leads to an even more enjoyable business experience and the ability to work behind the scenes and grow your business as big as your dreams can get!
Get More Information About Buying a Beauty Industry Business
If you made it this far and are interested in exploring business opportunities in the salon, spa & barber industries, I am happy to discuss this with you!
Contact us today or browse our beauty businesses for sale.
Yours in service,
