Spa Marketing Plan

Strategies to Increase your business as a Licensed Hair Dresser.

Trixie D Matthews

Strayer University

BUS 517

Managing the Business Project

Professor Trina Greer

September 3, 2006

Abstract

The purpose of this research paper is to address various issues in ethnic hair salons. First and foremost is why they are not profitable in the beauty industry. I see a growing need to tackle this problem. This paper details the problems and solutions for African American salon owners, independent stylist and booth renters. It helps answer the question 'Why I am not growing in this Business". This paper addresses the legal matters of setting up and operating your business. Marketing strategies to retain and keep customers. And being professional in the beauty industry.

Table of Contents

Title Page.................................................................................................................1

Abstract..........................................................................................................................2

Table of Contents............................................................................................3

Introduction...............................................................................................................4

Finding your Niche.............................................................................................5

Setting up your Business.......................................................................6

Business Systems...............................................................................................8

Marketing....................................................................................................................8

Professionalism......................................................................................................12

Discussion.....................................................................................................................13

Conclusion.................................................................................................................13

References....................................................................................................................15

Introduction

This paper is designed to help every classification of worker in the beauty industry go to the next level of professionalism, legitimacy, and excellence. It is not enough to sharpen your craft and become the best in haircutting, coloring, or nail artistry, and cannot make any money. Due to, not being able to attract customers. The vocational and technical schools for cosmetology, skincare, and makeup are designed to teach the fundamentals of the various trades and prepare us for the state board licensing exams. The curriculum for such programs may only touch on salon management and business planning. So where do all the salon owners, independent contractors, and booth renters receive their training and education about business matters?

I recently did a market analysis of the salons within a 30-mile radius of the salon I currently work in. Since I see a beauty salon on almost every corner during the 30 minute drive from my house to work, I wasn't surprised to learn that there are a lot of salons within the 30 mile radius. Of these salons over 95 % were booth rentals, 4% classified their workers as independent contractors. And less than 1% was employee salons. The average number of operators in each salon was 4. Based on these figures, virtually every one of these operator was an entrepreneur. Less than 1% were actually working for someone else's company, All the rest where working in someone else's establishment. The IRS is paying closer attention to this industry, because stylist is not reporting their income properly. If, they are reporting it at all. How can you issue a W2 for 50,000 for a house and never file your taxes. The IRS and State governments should not have to redefine how we run our operations. Instead, years of ignorance, abuse and neglect have led to booth renting being illegal in some states and the IRS scrutinizing this multi-billion industry, looking for unreported and underreported income and millions in unpaid taxes. This is your wakeup call. Get it together now or lose it all later and owe a lot in taxes. Make your business work for you. There is no reason anyone should not be structuring their business this way. You can make the same salary a doctor makes a year if you run your business right. (Mind Your 2006)

This research paper will also address the level of professionalism and business sense in the beauty industry. When I was on the outside looking in, I realized that a lot of the stereotypes, jokes, low regard, and outright drama associated with ethnic hair salons were a direct result of a lack of knowledge.

Finding Your Niche

There are our work classifications that are common in the salon industry: employee, independent contractor, booth renter, and salon owner. The salon owner is understood to be the individual who owns the business entity that allows the employee, independent contractor, and /or booth renter to work in their establishment.

Employees generally work exclusively for another individual or company. This is an ideal setup or the worker who only wants to serve the beauty and grooming needs of customers without the responsibilities of a business. The employee is responsible for wage reporting, tax withholding, federal and state business requirements, marketing, finances, etc. Booth renter's pays rent to the salon owner in exchange for workspace, usually a fully equipped space. A booth renter is a tenant running a small business. Booth renter set their own prices and payment structure, hours, own means of communication, report