How to Jumpstart Your Beauty Business
The Beauty Industry is exploding right now, and it is a really exciting time to jump on-board. If you love Beauty, you don’t necessarily have to follow one path to have a successful career. There are several different business models where women have built profitable beauty businesses doing what they love. Below are 8, proven (profitable) business models that you can use use to start an online beauty business that will serve your niche and create the life of your dreams, today.
8 Business Models You Can Use To Create Your Dream Life
Business Model #1 – Freelancing
The first business model I want to discuss is one that is really popular with people who have very specific skills (i.e. makeup artists, hair stylists, creators, stylists, designers, etc.)– freelancing. Freelancing is simply a type of work where you offer your services to people or businesses that need them.
If you’re really good at what you do, you could find yourself making money in only a few days after starting in this self-employed career path. You can find clients on Social Media, through networking, or marketing yourself on your blog or niche websites like Yelp, the Knot, eLance, etc.
An example of a profitable freelance business is working as a “community artist.” These are artists that serve their local communities, and work on clients for weddings, private events, school functions, etc. The beauty of being a “community artist” is that you can set your own rates, and plan your appointments around whatever schedule suits you best. Another example would be working as a freelance artist for film, television, editorial or production. These gigs require more networking, and you may even have to join a union or be represented by an agency, but the pay is usually very good. The hours are long, so it not always as flexible as booking one-on-one clients.
Be fairly warned, though: Freelancing requires effort and is not always stable. It’s going to require a lot of work in the beginning to get your name out there and build a reputable business that will bring you repeat customers and referrals. My advice is to invest in marketing, especially as you are just starting, because it will help you build a customer base quickly. And you’re going to want to stay on top of your skills by either being active in some kind of peer-related group or attending industry-specific events during the year.
Business Model #2: Retailer/Wholesaler
The second business model I want to discuss is selling products. This could mean manufacturing and selling your own beauty products, or opening an online or retail shop where you distribute other brands through Amazon, Ebay or an E-Commerce site.
There is always a new beauty product being released, and the competition is fierce in this space. If you decide to go this route, then plan on having a large budget for marketing dollars to be able to compete with the big guys in your category. Conversely, if you have a large following on Social Media or You Tube already, then you may not have such a hard time selling products.
A great example of this is Huda Beauty. She is a beauty blogger-turned-mogul after launching her beauty brand. She is now a household name with her makeup being highly sought after and sold in major retail stores like Sephora globally.
Business Model #3: Coaching/Consulting
The coaching/consulting space is where I decided to jump in when I was starting my own online beauty business. It’s a lot like freelancing in that you will have clients. The main difference is that, as a coach or a consultant, your work is to provide actionable advice to your clients.
Because of how much value you’ll be bringing to the table, coaching/consulting is one of the fastest ways to build an online business that will replace your corporate income and allow you to leave your 9-5.
You’re not doing the actual work for them; instead, you’re telling them what they need to do or how they need to be thinking about their life or their business.
If you have specialized knowledge that can help people or businesses be more effective in any specific area or areas, consultancy might just be for you. Consulting tends to pay more because of how specialized and valuable your knowledge base has to be. For example, I know of a coach who was a makeup artist for 16 years, working crazy hours on production shoots. She decided it was time for a change, so she started a coaching business helping women create a flawless look and style for the videos they make for their business. Nowadays, everyone is “Going Live” on Facebook, Instagram or Snap Chat, and she uses her professional knowledge to help them get that hollywood glam without having to hire a make-up artist every time they shoot.
If what you know can help individuals or companies grow and do whatever they do better, you might be a great fit for coaching or consultancy.
Business Model #4: Seminars/Master Classes/ Group Courses
If you are an expert at what you do, then another business model that lots of entrepreneurs are gravitating towards is creating their own Master Classes, Seminars or Group Courses. In this model, you’re doing coaching or consulting, but you’re doing it in a large live group setting.
The beauty of this kind of business model is that the group, while relying on you for your expertise, also feeds off of the strengths of the other members. Their participation is just as important as yours and creates a beautiful dynamic between members, and offers opportunities for networking and community building.
They can take a lot of time and patience to create, build, and grow, but Group Programs can pay you really well once you figure out your pricing structure and how often you want to run new events/courses.
Some great examples of businesses using this model is Ruby Makeup Academy, Nine Zero One Academy, Mane Addicts, Mario Dedivanovic Master Class Tour, etc. These entrepreneurs are hosting courses and charging anywhere from $700-$2000 per/student. This is a great way to take advantage of their expertise, teach aspiring artists and generate a lot of revenue for hosting successful events.
Business Model #5: Information Products/e-Learning
If you are great at teaching people through written, video, and/or audio format, you might consider creating and selling information products online and delivering them to your customers via an e-learning format.
People who know how to market their products to their target audience and who also meet the needs of that target audience tend to be really successful in this business model. The cool thing is that it e-learning tends to be a bit more hands-off than coaching/consulting or freelancing.
So…if you want to travel the world or do basically whatever you want whenever you want, and you want to have a fair amount of free time on your hands, creating info products and delivering them through an e-learning platform is probably going to be your best bet.
Creating this type of passive income stream is amazing. An example of this would be something like creating a Master Class, but instead of just doing it live at a workshop or beauty seminar, you would film yourself providing the training and sell it online through your website/blog. This is perfect for bloggers, because their subscribers have already gotten to know, like and trust them, so if they sent it out to their list they would definitely have some people jump on board.
Business Model #6: Affiliate Marketing/Joint Venturing
Joint Venturing is when two or more parties decide to work together for commercial purposes. For example, a makeup artist & a hair stylist may collaborate and put together some killer packages selling both of their services as a bundle. This instantly doubles your market because each artist will be promoting it to their network, thereby expanding your own network without spending any marketing dollars.
Another option, would be for someone who is just starting out to try to get a more established artist or influencer to promote the service/product for a fee.
Your biggest challenge in joint venturing or affiliate marketing is going to be finding great people to partner with, long-term, but once you find the right people, it can be a very lucrative business model.
Business Model #7: Subscription/Membership Model
This is a business model that, again, relies on your having some very specific knowledge and then having people pay you a fee to be a member. This is called the subscription model or membership model.
The Ghalichi Glam membership site features several Hollywood Celebrity Makeup and Hair stylists providing online tutorials. The Dress Face Face Live site includes a limited edition gift box, 3 new in-depth classes per month, Q&A sessions, and a library of 6 past classes.
There are so any variations of the subscription or membership model that the sky is the limit. Some subscription-based membership business models provide a physical newsletter that members get every month.
On the other hand, the feeling of community and mastery-level feedback might be the biggest selling point for certain types of memberships or subscription services. You can run your business as a membership website with a forum on a WordPress website or have a Secret Group on Facebook that only paid members have access to.
Whatever you decide to do, you’ll want to do a lot of research beforehand to make sure that there is a market and a need for what you want to offer. It can be a very lucrative model with as much time investment as you’re comfortable doing after you get it up and running.
That choice is completely yours.
Business Model #8: The Personal Brand Model
The final business model we are going to discuss today is one that lots of entrepreneurs are taking advantage of, creating a personal brand. This business model is taking off, shaking up the advertising world and truly changing the way large brands spend their marketing dollars.
If you look at the pages of some of the most popular Instagram and You Tube influencers, its almost as if they are always showing off the hottest trends, wearing new clothes, traveling to exotic places and getting all-access passes into the best events. Many of them are “Brand-Ambassadors” and have made deals with where they promote products/services for a fee. Some of them are earning over 6 figures/year by doing this and living a freedom lifestyle.
It can take a lot of time and patience to create, build and grow your personal brand, but the beauty of it is that it opens up the door for you to expand beyond your niche and become Insta-famous. Some of the most well-known influencers are getting the hollywood treatment and earning sponsorships with big contracts.
Putting It All Together Will Be Your Greatest Challenge
Once you have your business idea figured out, your biggest challenge as a business owner is going to be marketing and selling your service/product. As you can see from the examples above, you don’t have to choose just one path, because often times the people that build empires start with one thing and then branch out and diversify their offerings. The key is you have to start somewhere, and the best place to start is where you are. So assess your current skills/level to figure out which would be the optimal path for you to take.
The entrepreneurial journey can be challenging, stressful, overwhelming, and exhausting, but anything worth having requires hard work. Putting it all together from start to finish is often where a lot of people get tripped up, and the main reason why over 90% of business fail in their first year or two…but it doesn’t have to be that way for you.
Even if you fail along the way, just think of it as course-corrections for creating the perfect business for you. If you try to do something long enough you will eventually figure it out. Can you imagine if babies learning how to walk said “forget I can’t do it,” and just stopped trying after they fell once or twice. We would all be crawling if that were the case, but you don’t have to let the fear win.
If you are dedicated, persistent, tenacious and hard-working, then you can be unstoppable. There are thousands of inspiring stories of people that started with nothing and ended up building empires. There is no secret to success, you just have to have a plan, be prepared, and be relentless in your pursuit of your dreams.