So, you have chosen your desired path and are ready to take the plunge into self-employment, Congratulations! This is an exciting step in your career, and while it takes preparation, the rewards are worth it. This guide will cover the legal and financial essentials to set your beauty business up for success.
1. Register Your Business and Set Up as Self-Employed
To operate legally and market yourself, you'll need to register your business:
- Register as a Sole Trader
In most regions, you’ll register your business name with a government body (such as HMRC in the UK). This step is crucial for handling taxes and marketing yourself as a legitimate business.
- Set Up as Self Employed
Register with tax authorities to manage your tax returns and declare your earnings. Consulting an accountant at this stage can save you time and hassle, ensuring you comply with all legal requirements from the start.
2. Verify Qualifications and Secure Insurance
Ensuring that you’re qualified and adequately insured protects both you and your clients:
- Treatment Liability Insurance
You must notify your insurers of every treatment you will offer to make sure you have adequate cover should something go wrong during a treatment.
- Public Liability Insurance
This covers you for any client injury or reaction or damage to property which may raise a claim.
- Professional Indemnity Insurance
This covers and mistakes that may occur when you are carrying out your treatments.
- Equipment and Vehicle Insurance
This will cover your business tools which could be lost, stolen or damaged.
3. Establish Payment Methods
A variety of payment options will make it easy for clients to pay you and streamline your own bookkeeping:
- Open a Business Bank Account
Keep your business earnings separate from your private account; this will help when completing tax returns and to monitor your finances
- Popular Payment Options:
Cash, BACS, SumUp, Yotta, Revolut, or a traditional card reader. Card payment is the preferred option these days, this method also helps to manage your accounts and finances when it comes to completing your tax returns.
4. Develop a Marketing Plan
An effective marketing strategy will help you stand out and attract clients:
- Build Your Online Presence
A website, active social media profiles, and listings in community groups and online platforms are vital for marketing. If you’re new to this, investing in professional setup assistance can help create the polished image you want.
- Offline Promotion
Participate in local events, collaborate with other businesses, or create partnerships with local salons and spas to increase visibility.
5. Quality Equipment and Tools
- Create a Professional Kit
Invest in quality long lasting pieces that will endure the test if time. Some of the cost can be offset on the tax rebate so do your research and read lots of reviews before committing to any purchases, your tools are everything when you work for yourself!
6. Set Your Service Menu and Pricing
Select treatments you’re skilled at, start small, and build your reputation as an expert:
- Curate Your Treatment List
You will need to choose your set list of treatments, start realistically and stick to your areas of expertise, you want to build a name for yourself being the best at what you do – remember the phrase jack of all trades, master of none!
- Research Your Pricing Strategy
Do. Your. Research.
Investigate the salons in your local area and bench yourself within a good range of their prices, avoid undercutting them by too much as increasing your prices at a later stage can be a tricky thing to do and result in a loss of clients. Rather than pricing too low you can always offer new customer discounts instead to get initial interest from new clients.
7. Manage Bookings Effectively
You will become your own receptionist which can be a difficult task to manage once you become busy. Organising bookings can be a challenge as your business grows, but setting up systems early can help:
- Choose your Booking System
You could use a paper diary and do appointments by phone. It’s worth researching online platforms so clients can make their own appointments with you. This will take the control out of your hands when working mobile and you will lose the ability to interact directly to move appointments.
- Allow time to Organise Bookings
If you are opting for a more personalised approach and taking bookings by text etc, allow at least 30 mins every day to sit and respond to enquiries and get back to people in a reasonable amount of time. Consider automatic replies being sent to notify the client you have received their message and will respond within 24 hours.
Beauty Business Checklist:
Here is a handy summary tick list of things you MUST have in place before you can hit GO and get to work...
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What |
Completed |
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Register as a sole trader |
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Set up as self-employed |
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Qualifications |
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Treatment liability Insurance |
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Public liability insurance |
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Professional indemnity insurance |
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Equipment/vehicle insurance |
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Payment methods: |
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Business Banking account |
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Marketing (social media/website) |
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Equipment & Tools |
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Creating a treatment list: |
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Pricing |
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Booking diary |
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For personalised support, SBC Pro offers flexible, tailored packages to meet your business needs. Contact us HERE today to start your beauty journey!