Here is a complete guide on how to start a beauty supply store with no money.
The beauty care industry is vast and holds tremendous potential for growth. Beauty supply stores help with the easy distribution of finished products, and you can become a critical player in this area.
Starting a Beauty Supply Store With No Money
Given the vast potential, we’ve focused on showing you how to start a beauty supply store with no money of your own.
If this sounds like something you’d want to do, this guide further discusses the rigors involved in setting up shop, the franchise option, and estimating startup costs.
Other details covered include writing your plan, registering the business, applying for a bank loan, getting a soft loan, seeking partnerships, and selling your idea to a private investor.
Rigors of Setting Up Shop
For any business to succeed, sufficient and appropriate effort must be invested.
Without a doubt, running a successful beauty supply store with no money of your own will require more significant effort than it would if you had the resources or startup capital ready.
There’s a lot of research to do, including running around and planning.
All of these take time and will require investing enough time into planning the whole operation. Despite such commitments, there are no guarantees you’ll succeed.
New businesses face various challenges, including competition, not being cited in a favorable location, supply issues, and products that don’t sell for extended periods.
Franchise or Grow the Business from Scratch?
One of the most crucial business decisions you’ll have to make is deciding what business model to use. There’s the franchise model as well as starting one from scratch.
Your choice will depend on what serves your needs best. This requires knowledge of how each model operates. Much more prominent and established brands own beauty supply store franchises.
They offer investors (franchisees) the opportunity to operate under their brand, including the use of their trademarks, plus ongoing support that seeks to help your business succeed.
This is a lot easier compared to starting a business from scratch. With franchising, you’ll likely get some financing support, which may be provided in-house or through a third party.
Estimating Startup Costs
You’ll need to understand the startup costs of setting up a beauty supply store business.
A definite figure can’t be given for obvious reasons such as the store size and scope of operation, beauty store niche, location, and ongoing expenses.
These differ from store to store. In providing an estimated startup cost, you may need between $10,000 and $500,000 to launch successfully.
A summary or breakdown of such costs will include rent for 12 months, phone and utility deposits, registration fees, and legal expenses.
Other expenses include startup inventory, cost of building a website, insurance coverage, marketing promotion, operational costs, store equipment and furniture, miscellaneous, etc.
Writing Your Business Plan
Your business plan is the document through which strategic actions will be taken towards establishing your operations.
As the name suggests, it’s a detailed plan of action that is necessary for accessing funding for your beauty supply store.
Lenders always seek to go through the plan to determine its viability. This highlights its importance.
You’ll need to commit sufficient time to drafting your beauty supply store business plan. If you can’t handle writing one, you can outsource it to a business consultant.
A good plan should have the following sections: an executive summary, company description, products and services, market analysis, strategy and implementation, organization and management team, and financial plan and projections.
Registering the Business
Registering your beauty supply store business is part of launching on the right footing. Now, registration requirements are never the same across different states.
In other words, every state has its unique requirements. So, you’ll have to find out what applies to yours. A simple online search should suffice.
Applying for a Bank Loan
Have you considered applying for a bank loan?
Traditional lending sources have been around for decades and offer ready assistance through funding for viable business ideas. Most bank loans require an excellent credit rating.
You’ll also need to present your business plan to help assess if your business idea and its implementation promise a good return on investment.
If you’re wondering how to start, visit your bank for inquiries to know what’s available. Secondly, have all the documents and requirements ready before proceeding.
Explore Soft Loan Opportunities
Unlike traditional loans obtained from sources like banks, soft loans are a lot better as they come with little to no interest rates.
These can be sourced from friends or relatives who wish to see your business idea come to fruition. Here, loan repayment terms are a lot more flexible; as such, you have nothing to fear.
The problem is that it may not be readily available when you need it, depending on whether they have it. Also, the loan available may not be up to the amount you need.
Nevertheless, these go a long way in helping you achieve your objectives. Plus, it’s one of several loan options you can explore.
A beauty supply store can be started with no money of your own by entering into strategic partnerships. A business idea won’t be enough if you don’t have the capital to actualize it.
This is where someone with capital and the right mindset comes into play. You’ll do well to seek out such partnerships deliberately.
If you have an acquaintance who is big on prudent investments, you can sell your idea to such a person for possible partnerships.
If the person is convinced, an agreement can be drafted on how profits will be shared and who has what responsibilities.
Sell Some Assets to Raise Capital
Despite having no money to launch your beauty supply store, you can liquidate some of your assets to raise funding. This will be one easy way to get things started.
However, this is only possible if you have such assets. If you don’t, you can try other options or strategies discussed above.
Knowing how to start a beauty supply store business with no money of your own helps speed up the process of launching your operation.
The best part is that you can leverage multiple opportunities to achieve your objective.