Issue link: http://cp.revolio.com/i/15024
The Business of Esthetics reveals there are four other skin care facilities within a 10-mile radius of this location. After thinking it through, you may decide you should reconsider your concept or you may believe even more strongly that your original vision is correct. • Industry, customer, and competitor analysis. It is important to develop a comprehensive understanding of your industry. Similar to every other business, the skin care field has witnessed the evolution of a variety of trends. In years past, esthetic services usually were reserved only for the affluent, with an emphasis on pampering the client. Today, the profession is results-oriented and has established a significant connection to the medical arena. Define your desired customer base from an age, sex, and income perspective. Evaluate your competition by visiting their facilities, perusing their marketing materials, and noting their advertising placement and pricing strategies. Determine the community average, and decide whether you want to be higher priced by marketing your superior service or lower priced, relying on an increased client volume. • Company description. Explain in detail what your company is about—include your mission statement, corporate goals, and specific services you plan to offer and products you intend to sell. • Marketing plan. Assess the potential benefits of a variety of marketing vehicles, such as direct mail, newspaper, magazine, or radio advertising. It is difficult to predict which one will generate the most business. • Team roster. Your staff is vital in assisting you to reach your goals. Specify in your business plan who they are, their level of experience, and what roles they will play on your team. It is important to develop job descriptions for every position that specify salary and benefits, such as health insurance, vacation, and bonuses. • Financial plan. The quantitative planning of your venture may be the most challenging, but most important, aspect of your business plan. Estimate the costs of your facility, equipment, supplies, staff, services, and marketing, as well as the income you anticipate your venture will generate. Having a thorough understanding of common business tools will enable you to develop a lucrative skin care practice. CAPITAL As a business owner, it is imperative to know the source of your money, how you will spend it, and any necessary payment arrangements. There are times when you need an increased infusion of capital in order to remain competitive. This may occur seasonally, such as the need to purchase additional inventory in preparation for the busy holiday season, or there may be the need to obtain spa equipment your competition offers and your clients are requesting. Capital is required in business for the following expenditures: • Hard costs. These encompass the cost of your actual assets, such as esthetic equipment, computer hardware, a telephone system, stereo components, supplies, and product inventory. • Soft costs. These include variable expenses, such as recruitment, training, computer software, and marketing materials. • Fixed expenses. These are the business costs that remain fairly constant, such as monthly rent, telephone and electric bills, and equipment leases. • Recurring expenses. These are expenditures that occur on a regular basis, such as taxes and insurance. 74 successful business handbook www.ascpskincare.com