How to start a beauty business

Thinking of turning your love for beauty, skincare, hair, and make-up into a business?

You would be in good company.

The UK hair and beauty industry generated £4.56bn in turnover in 2022-2023, and the number of businesses in this sector increased by 870, representing a 2% growth in the year from March 2022.

The most popular beauty businesses are nail and hair salons, but the industry covers many specialisms, from wedding make-up and skincare to styling.

In your beauty business, you could offer many different services and products or focus on just one. 

You could run it from a fixed location, operate it as a mobile service, or sell it through an online store.

The beauty industry can be flexible and scalable, and there may be a number of options to assist with financing.

What are the benefits of starting a beauty business?

If you’re thinking about starting a beauty business, it’s worth knowing that it’s a highly competitive market with fierce competition to attract and keep customers.

However, it also offers many benefits and plenty of opportunities, including:

• chance to be your own boss – set your own flexible schedule and work on your terms
• creative freedom – express your unique style and have complete creative control of the business
• be part of a growing industry – tap into a booming market for beauty services
• personal fulfilment – build a business that aligns with your passion
• impact the community – create jobs and contribute to local economic growth
• scalability – start small and scale up your business to expand your offerings
• financial rewards – strong demand means your business could be profitable.

Discover the steps you could take to help build a successful beauty business.

How to start a beauty business in 10 steps

Step 1. Find a niche that matches your skills and interests

To run a successful business, it can be a good idea to focus on something you’re passionate about and qualified to do.

You’ll be doing it every day, so consider whether that’s something you’ll have an appetite to do over the long term.

There are a wide range of beauty services your business could offer, including:

• nail treatments, such as acrylic nails, gel nails, and varnishes
• manicures and pedicures
• skin treatments and facials
• tanning, including sunbeds and spray tans
• eyelash extensions and tinting
• brow treatments
• hair cutting, styling, and treatments such as hair extensions
• wedding make-up
• massages, including aromatherapy, hot stones, and sports massage
• specialist treatments, such as Botox, fillers, and anti-aging injections.

If you have a talent for detailed nail art or can create the perfect custom facial, why not start there?

Some services require training and certificates, which ensure you meet industry standards and provide safe, high-quality experiences for your clients.

Consider researching your target niche before you start on treatments.

Having the skills and passion for your niche may help make your start-up journey more rewarding and help keep you focused on growing your start-up.

Read about how to start a hair stylist business.

Step 2. Consider your customers

For a start-up to succeed, it’s important to find out what people want in the market.

Market research can help you identify your customers and estimate your potential earnings.

Research your target market and see if other beauty businesses offer similar services. 

If they do, think about what you could do differently to attract customers, like charging less or offering unique services.

Consider offering services and products that competitors don’t offer.

You may also want to focus on selecting quality products that resonate with your target audience to make your business the more appealing choice.

You could even capitalise on current trends, such as consumer interest in natural beauty products and treatments.

Market research can also help you identify the best location for your beauty business.

A spot with lots of foot traffic or an area without many beauty services could help you get more customers.

Step 3. Decide on a business model

To give your start-up the best chance to succeed, it can be a good idea to consider different ways your beauty business can make money.

The two main models are:

• Product model – buy and sell beauty products for a profit
• Service model – offer in-person beauty services.

Other business models you could consider include:

• subscription model – send beauty products through the post to subscribers, typically monthly. This option removes the high costs of running a salon and lets you quickly adapt to changing beauty trends and customer preferences.
• mobile business – travel to clients for services like spray tanning, facials, massages, and hair styling. This is great for customers who want services at home and for start-ups without funds for a retail space. You’ll need portable equipment, private transport and proper business insurance.
• retail store business – Have a physical store where customers visit, ideally in a busy, easy-to-reach location. Success depends on careful planning and choosing the right location.
• dropshipping – selling products without keeping stock. A wholesaler handles inventory and shipping for you. This type of business could be suitable if you lack storage space or funds for stock. Read our guide on how drop-shipping can help launch a low-cost business.
• brand and product development – create and sell your own beauty product line, such as nail polish, haircare, cosmetics, or skincare. This requires strong marketing skills and is challenging to enter, but it could be rewarding if you have a unique idea.

Step 4. Create a business plan

A business plan is a good way to guide your start-up toward success.

This document explains your business goals, strategies, timeframes, financial projections, and operational details.

Your business plan could include information such as the prices for your products and services, how you’ll manage cash flow, and your initial business costs.

In your business plan, you might wish to include:

1. executive summary – a brief overview of your business and its mission
2. business description – details about your business, including the services or products you offer
3. market analysis – insights into the industry, target market, and competitors
4. organisation and management – your business structure and information about the management team
5. marketing and sales strategy – how you plan to attract and retain customers
6. product line or services – descriptions of your products or services and their benefits
7. financial projections – financial forecasts, including income statements, cash flow projections, and balance sheets
8. funding request – if applicable, details about any funding you’re seeking and how it will be used.

Download our free business plan template.

Step 5. Equipment and products

The equipment and products you need to start a beauty business will vary depending on the type of business you plan to open.

For a mobile beauty business, you’ll need things like portable beauty kits, a reliable vehicle, and compact tools such as make-up chairs, massage tables, lighting, and foldable tables.

If you’re opening a salon, you may require more equipment, such as:

• styling chairs
• mirrors
• salon stations
• specialised tools for treatments
• payment systems
• cleaning supplies and PPE
• uniforms
• product displays
• first aid and fire safety equipment.

You may also want to consider the cost of renting a shop or unit and factor in expenses for utilities and décor to create a welcoming atmosphere.

For a subscription or dropshipping beauty business, your focus may be mainly on the products.

Providing high-quality beauty products could help you meet client expectations.

Step 6. Understand licences and regulations

Understanding insurance and regulations is crucial when starting a beauty business.

It will help you comply with health and safety standards and protect your business, clients, and staff.

Licences and permits

Depending on the specific services you want to offer, you must secure the correct licences and training before you can legally operate your business.

This is particularly true for services that include chemicals, such as face peels.

To provide a safe service, you may need to obtain a National Vocation Qualification (NVQ) of at least Level 2 or 3 (Beauty Therapy certification).

This is particularly true for services that include chemicals, such as face peels.

If you plan to offer massages, manicures, pedicures, and light or electric treatments, you will need a massage and special treatment premises licence from your local council.

When working with hazardous chemicals, your business must comply with COSHH regulations.

You might consider joining a register like the Guild of Beauty Therapists for professional recognition or to keep up to date with industry developments.

It’s a good idea to see advice on what licenses and permits you will need before opening your business.

Beauty business insurance

Buying insurance for your beauty business is highly recommended to protect you against financial loss in case of a legal claim.

Key types of insurance you may wish to purchase include:

• public liability insurance – covers accidents or injuries on your premises
• property insurance – covers equipment and inventory
• professional indemnity insurance – protects against negligence or malpractice claims.

Read our complete guide to business insurance.

To operate safely, ensure you comply with workplace health and safety regulations.

Your workspace should be regularly cleaned and sanitised, and your equipment should be maintained to prevent accidents.

Training staff on these protocols is also essential to provide a safe environment for both employees and clients.

If you plan to operate a mobile business, you may also want to implement safety measures to ensure your safety when on the road or in unfamiliar locations.

Step 7. Secure funding

No matter what business model you choose and the niche you specialise in, you may discover that the costs of starting a business can quickly add up.

But with the right financial help, you could get the funding you need to launch your start-up.

There are several ways you could secure funds:

Personal savings

• pros – no debt or interest; complete control over your business
• cons – risk of depleting personal funds and savings.

Friends and family loans

• pros – flexible terms and interest rates; a supportive network
• cons – potential strain on personal relationships if issues arise.

Small business bank loans

• pros – access to larger sums; structured repayment plans
• cons – strict eligibility criteria; potential need for collateral.

Read our guide on how to secure a business start-up loan.

You might consider a Start Up Loan.

Start Up Loans is a government-backed personal loan for people looking to start or grow a business.

You can borrow up to £25,000 at a fixed 6% interest rate and benefit from 12 months of free business mentoring support to help you get your business idea off the ground.

As with any financial decision, seeking independent, specialist advice on what financial product best suits your business circumstances is important.

Learn whether a business or personal loan is best for your business.

Step 8. Do the business basics

Before you can launch your beauty business, you will need to complete the business basics.

Consider your business structure – whether you will operate as a sole trader, create a partnership with one or more people, or create a limited company.

Different business structures have their own requirements and financial obligations, affecting your liability, taxes, and administrative responsibilities.

You must register your sole trader business with HMRC for self-assessment tax purposes or, if operating as a limited company, with Companies House.

Understanding tax obligations, including how to pay tax and VAT, is essential.

Find the right business structure for you with our handy guide to business structures.

Once you have done this, you can obtain the necessary insurance and licences from your local authority.

Good bookkeeping is important after launching your beauty business because it helps you keep track of payments, invoices, and cash flow.

Discover small business bookkeeping tips for success.

Step 9. Branding and marketing

Think about creating the right brand for your target audience and marketing your business effectively.

Strong branding and strategic promotion could help you attract and steadily grow your client base.

Branding involves choosing a brand name, designing an eye-catching logo, and developing a brand voice that resonates with your target customers.

Your marketing strategy may vary depending on the type of beauty business you decide to open.

Common marketing tactics for beauty businesses can include:

• local advertising
• social media marketing
• placing online ads
• networking
• using affiliate marketing
• creating an optimised business website.

Read our essential guide to marketing for start-ups.

Step 10. Growing your beauty business

Growing your beauty business can be an exciting journey.

Hiring employees

Many people start as solopreneurs, but expanding their beauty business typically means hiring people to support their current offering or to provide a broader range of beauty services.

Before hiring, consider the qualifications and skills new staff should have, such as being fully trained, skilled, organised, and good with people.

You might focus your hiring efforts by advertising on industry-specific job boards to find relevant and experienced candidates.

Once hired, you could create a positive work environment by offering additional training, fostering open communication, and recognising your employees’ achievements.

This could enhance employee satisfaction and help to boost customer experience.

Read our first-time employer’s guide to hiring staff.

Growing or retaining your customer base

Attracting more customers could involve ramping up your marketing plans, offering competitive pricing, or offering more unique products and services.

Maintain excellent customer service to help retain existing customers and consider loyalty programs or feedback forms to understand their needs.

Expanding your business model

Depending on your business model, you may seek to secure more premises or find additional stockists.

Expanding your business model could mean opening new locations or partnering with retail outlets to reach a wider audience.

Find out more about business growth and strategies for start-ups.