Once you have established your beauty salon after months of hard work, foraying into a Franchise Business Model seems to be the logical next step. And why not? Seeing the brand grow and reach the pinnacle of popularity & success is every beauty entrepreneur’s dream. It is good to be ambitious but you need a lot more than just enthusiasm. Opening a Franchise Business Model in the beauty industry is a different ball game altogether and requires great perseverance and hard work.
Before getting into the water, you need to be assured of your swimming skills. This means you need to know where your brand stands. Running a successful beauty salon is no small feat and reciprocating the same success in the franchise model is no cakewalk either. First, you need to know where does your brand stands in the mind of your consumers, how many people know about it, what all they know about your brand, what is the position of your brand in the market, etc. A small market survey can be a big eye-opener. The results will definitely help you see your brand from a new perspective. It will help you develop a strong brand strategy. From the color of your brand logo to its size, you will get clarity on a variety of things after this market survey. For instance, we redesigned the shape of our logo when we got the results of our market survey.
As soon as you decide to get into the Franchise Business model, start shortlisting good legal firms or reputed franchising agencies. The paperwork is fundamental. The team of legal experts or franchising agency will draft a strong contract covering all the legal aspects. This team will advise and guide you on a variety of subjects such as what all you should promise, what should be the franchise fee, how much should be the royalty, etc. These professionals are aware of the nitty-gritty of a contract and hence can help you take the first step safely. It is advisable not to underestimate the importance of paperwork and professional advice of a franchising agency.
While you look for investors, do not forget to invest in a good team. A team that will be dedicated to expanding and maintaining your Franchise business. Most of the time, I have seen people focusing on opening franchises only. What about maintaining the brand name? Business takes time and profits are lean during the teething face. In my career, I have seen many franchises dying a slow death due to poor maintenance. Build a team of HR professionals, professional trainers, operations, products resource professionals & sales executives. This team will assist the new franchise in establishing itself. For instance, HR will ensure that there is never a shortage of staff or there is extra staff during the festival season. Similarly, a trainer will keep the salon staff engaged with new technology, therapies & products. This way, the salon staff also feels motivated and valued. The continuous training and learning infuse new enthusiasm in them.
Vision is something that sets a successful entrepreneur apart. Don’t limit your vision with a single franchise opportunity. While looking for potential franchise partners, look for multiple business opportunities with a partner. Go with a person who understands your brand, respects its values and shares your vision of expansion. For instance, with most of our franchise partners, we have opened not just Alps Beauty Salon but Alps Academy as well. Likewise, you can look at opening multiple salons at different locations. This will also keep you motivated and deliver great success in terms of quantity and quality.
As far as pricing of your franchise is concerned, a little less or similar to what others are offering works fine. Study the market a little and look what others are offering. Keep your franchise price 1% or 2% lesser, and instead of 10% royalty cut, you can go for 8%. It is a highly competitive industry and the competition is cutthroat, so a similar or little lower price than what others are demanding will definitely get you an edge in the client meetings. It makes the franchise business proposal all the more promising.