Share This Info:  

Tips On Buying A Beauty Supply Shop


Buying A Beauty Supply Shop

The beauty supply industry does $10 billion in sales annually.  Like every industry, there are some larger chains that dominate the marketplace. 

When it comes to buying a beauty supply shop, there are several companies like Sally Beauty Supply, Ulta and Sephora, that you'll want to look out for as they are among the top producers. 

The top 50 companies in the industries generate about 75 percent of all its revenue, but there is still a piece of the pie to be had by small business, so here are some tips on buying a beauty supply shop.

Location And Your Target Market

When looking at a beauty supply shop determine who their target customer is.  Some beauty supply shops target hair stylists, salon owners and other professional service providers.  If that is the type of beauty supply shop you are considering, look at the businesses that surround the store.  Are there a lot of salons in close proximity?  Hair stylists and beauty professionals will most likely become your loyal customer if your beauty supply shop is close to where they work or live.  If they run out of something throughout the work day, they will go to the closest store to restock.

The other type of beauty supply shop is one that targets the consumer.  Examples of a store like this would be Sephora and Ulta, while Sally Beauty Supply caters to both professionals and the consumer.  Your location is also important if you are pursuing this type of beauty supply store.  If you are conveniently located in proximity to other shopping destinations, like grocery stores, shopping malls, etc., you have a greater opportunity of building a loyal client base.

Inventory

In my experience, beauty supply stores that are most successful are those that stay up to date with the latest trends.  Being a guy, I certainly don't understand the need for new nail polish colors every season, but I can assure you, women do, so make sure the inventory you'll be buying is current.  If stuff has been sitting on the shelves for months, make sure you are not paying full price for it as you'll probably have to discount it to move it at some point.

Customers want the latest trends when it comes to beauty supplies, so understand that inventory is going to be one your largest operating expenses.  And, with any retail business, you'll need to make sure there is a good system in place to manage inventory, make sure it's not leaving with employees and being updated as it should.

Know What You Are Selling

This is a business where you have to know about the products you are selling.  If you are not a professional cosmetologist or someone that is familiar with the industry, you may have a tough time walking into the beauty supply business as you'll have a lot of product knowledge to learn right out of the gate.

Customers are going to come in and ask for recommendations on products and want your input.  You'll instantly gain credibility with them if you can recommend a solution to their problem.  If your solution works; even better!  Customer service is very important in this industry.

As I said earlier, it's a highly competitive industry with some big names that you'll be going up against, so as a small beauty supply shop, you'll need to make sure you and your staff have adequate product knowledge and provide exceptional customer service to compete with the big stores.

In addition to product knowledge, some beauty supply stores that work only with professionals sell salon equipment and design.  This area is another ball game, so when considering a beauty supply shop look at what the current owner is doing in this market.  If they are in this market, decide if you want to stay in it and if so, you'll again need to know more about the latest trends.  If they are not in this market, it could be a potential space for you to expand in to once you've got your foot in the door.

Marketing

Look at the current owner's marketing strategy.  You've got to be utilizing social media in the beauty supply business.  So much of this industry is visual.  Social media is the perfect medium to sell your products and position yourself as an expert in the industry.

Outlook

As you can see based on this post, buying a beauty supply shop is more than just looking at financials.  There are some areas that require some consideration before purchasing.  Thinking about these upfront while doing all the other standard due diligence will help make your purchase of a beauty supply shop go as smooth as possible.

According to IBISWorld, beauty supply shop owners will have to rely on introducing new products to stimulate store sales in the next five years. Competition from discount stores like Walmart and drugstores is increasing so although revenues remains strong, the organization expects competition in the beauty supply shop market to increase.

Peter Siegel, MBAAbout This Contributor: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily). He advises buyers, business owners/sellers, business brokers, agents, investors, and advisors). Phone him at 866-270-6278 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.


Categories: BizBen Blog Contributor, How To Buy A Business



  Helpful Resources To Assist In Selling And Buying California Businesses
William Park, Business Broker - Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.

Ryan Clark, Business Broker, Southern California

The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.

Michael Floorman, Business Broker, BTI, San Francisco Bay Area

Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Lee Petsas, Business Broker - Orange, San Diego Counties, Inland Empire

UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.

AJ Rana - Business Broker, San Francisco Bay Area

Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance

For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
Buying A Nail Salon Business: It Doesn't Have To Be A Nail Biting Experience

Buying a nail store requires careful consideration during the search and diligence process. Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 866-270-6278, discusses the important factors to focus on when buying a small to mid-sized nail shop.

An Alternative Approach To Finding And Buying An Absentee Run Small Business

As a SF Bay Area business broker (Rob Hartman), the phrase I hear often from my buyer clients is, "I am looking for an absentee run business." Since it is such a popular topic, let me offer an alternative method of business selection. There are a couple things to keep in mind as you search.

Selling Your SF Bay Area Business: 3 Keys To Better Financial Statements

When you are selling your business, your presentation, for the most part, is going to be your financial statements. Everything begins there. SF Bay Area Business Broker Rob Hartman discusses how to best present your financial statements and what should be included when selling.

Thinking About Selling A Small Business? Know These 8 Factors That Matter

The likelihood of selling a business is often determined by external factors in the marketplace. Here are eight influences on how easy, or difficult it might be when selling a small California business. Peter Siegel at 866-270-6278 (BizBen ProSell Program) explains these factors for owner/sellers.

Preparing Your Bay Area Business For Sale: Accounting & Financial Statements

The first thing you should start working on when selling your business is getting your financial statements in order. Having correct, easy to read, simple financial statements Is key in showing interested buyers. Rob Hartman (SF Bay Area Business Broker) shares his experience.

6 Simple Things To Increase Business Value Before Offering It For Sale

How do you value a small business before putting it on the market? Tim Cunha, JD offers 6 items all business owners should consider. Other advisors and business brokers also weigh in on this very important topic especially when over 70% of small businesses never end up selling (due to pricing).

8 Tough Questions You Most Likely Will Be Asked When Selling Your Business

When selling your small business, you'll be bombarded with questions - from the brilliant to the ridiculous. You need to be prepared. Here are some of the key questions you can expect to be asked. Tim Cunha (SF Bay Area Business Broker at 650-600-3751) reviews many of these possible questions.

Business Purchase Financing Help - Expert Tips For Faster SBA Loan Approvals

Business purchase financing advisor Peter Siegel, MBA shares his views on SBA loan financing. He explains the nuances of the SBA loan process when considering business purchase financing or getting pre-qualified. Reach Peter Siegel, MBA direct at 866-270-6278 regarding SBA & Non SBA Loan Financing.

See All News, Tips And Events


Business Purchase Financing SBA Loans
Tim Cunha Business Brokerage
Ranvir Sandhu Attorney
Escrow Services From Helen Yoo New Century Escrow
Facebook
Twitter
Linkedin
Google Plus You Tube
Vlogs and Podcasts


Auto Related
Business Services
Children Related
Communication Related
Computer, Internet Related
Construction Related
Entertainment Related
Financial Services
Health, Beauty Related
Home Improvement Related
Maintenance Related
Manufacturing Related
Media, Publishing Related
Pet Related
Photography/Video Related
Real Estate Services
Restaurant, Food Related
Retail Related
Service Related
Sports Related
Transportation Related
Travel Related
Wholesale Related

Auto Body Shops
Auto Repair Shops
Bakeries
Bars, Sports Bars
Cafe Restaurants
Car Washes
Cleaning Services
Clothing, Apparel Stores
Coffee Shops
Convenience Stores
Deli Restaurants
Discount, Dollar Stores
Dry Cleaners
eCommerce Websites
Fast Food Restaurants
Florists, Flower Shops
Full Service Restaurants
Gas Stations
Gift Shops
Gyms, Fitness Facilities
Home Health Agencies
Hotels/Motels
Ice Cream Shops
Juice, Smoothie Shops
Laundromats
Liquor Stores
Markets, Marts
Nightclubs
Pizza Restaurants
Postal, Shipping Stores
Preschools, Day Care
Print Shops
Salons, Beauty Shops
Sandwich Shops
Smog Test Only Shops
Smoke Shops
Spas, Med Spas
Sushi Restaurants
Tire Shops
Towing Services
Vending Routes
Wireless, Cellular Shops
Yogurt Shops

Alameda
Alpine
Amador
Butte
Calaveras
Colusa
Contra Costa
Del Norte
El Dorado
Fresno
Glenn
Humboldt
Imperial
Inyo
Kern
Kings
Lake
Lassen
Los Angeles
Madera
Marin
Mariposa
Mendocino
Merced
Modoc
Mono
Monterey
Napa
Nevada
Orange
Placer
Plumas
Riverside
Sacramento
San Benito
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obis
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
Sierra
Siskiyou
Solano
Sonoma
Stanislaus
Sutter
Tehama
Trinity
Tulare
Tuolumne
Ventura
Yolo
Yuba

0 to $99,999
$100,000 to $249,999
$250,000 to $499,999
$500,000 to $999,999
$1 million to $2 million
over $2 million



BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved

               Vlogs and Podcasts  
Join Us On Social Media - Content Updated Daily
Sign Up Today - For Our FREE BizBen Weekly Email Newsletter
Includes The Best Info On Buying, Selling, Valuing, Financing California Businesses:
Articles, Blog Posts, Podcasts, Videos/Vlogs, Discussions, Q&A, Workshops, Webinars,
Resources. Watch For An Email Confirmation After Signing Up Above. Thank you.
Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 
Search BizBen.com

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Thinking About Selling A Small Business? Know These 8 Factors That Matte...
Read More News
Purchase A Business With Limited Or No Cash - Financing Tips For Buyers
Read More News