We have collated some facts and advice for individuals who would like to obtain a better knowledge of beauty entrepreneurship.

A new business trend of this century is to launch a beauty brand. There are indeed a bunch of inspiring entrepreneurs in the beauty sector. Skincare and beauty firms compete in a competitive market these days, and even with the best resources, timing, and chances, some brands fail to succeed. According to recent statistics, 80% of salon businesses fail within the first 18 months of opening. But even though each case is different, some common denominators arise.

According to our research, there are eight common reasons why beauty brands fail:

1. Lack of Experience

Due to a lack of expertise, both new and established brands make mistakes that might lead to business failure. Skincare start-ups frequently lack experience with distribution, retailing, and online marketing. When it comes to scaling a brand with national distribution and international markets, more established brands often fail.

2. Proper Resources Not Available

Brands frequently underestimate the resources required and necessary to complete the targeted activities at any level. Frequently, adequate resources are not allocated at the appropriate moment, resulting in underfunded projects, understaffed, lacking in the necessary talent, lacking in all bases covered, and so on. This can deplete a brand's resources and finally cause it to fail.

3. Projects not executed well enough

Brands can make good judgments and start initiatives with marketing services, website design, and distribution sales, but they aren't always implemented well enough to achieve the desired results. Projects of this nature are frequently not carried out properly from the start in order to succeed. Simply put, given the setup of the projects, expectations tend to be inaccurate.

4. Operations are not managed correctly

For skincare and beauty companies, some projects can endure for years. Marketing services and campaigns, technology management, product creation, and other projects are only a few of them. Some operations are ongoing and can be devastating to a brand if not managed properly. The results of skilled operations and project management are far superior.

5. Knowledge required is not available

As a brand grows and evolves, so do the skills and knowledge needed to manage it effectively. When necessary expertise is unavailable, a skincare firm might soon face a bad decline and perhaps fail. Keeping competent advisers and workers on board is crucial to a skincare company's success

6. Failure to understand the market

It is essential to understand the market and your target audience in order to run a business effectively. Recent statistics indicate that 42% of small-to-medium enterprises fail because they lack a market need for their services/products. As there are more than 40,000 beauty businesses in the United Kingdom, it becomes increasingly important to understand your audience, as your brand's success depends highly on customer satisfaction.

7. Inadequate planning

It is no surprise that 80% of SMEs fail, given that they simply run out of money, while 20% fail because they lack a business plan. As a consequence, it is safe to say that planning is essential. This is especially true when you are running a beauty business. Why? The answer is simple. It requires constant management and a well-structured business model.

8. Hiring the wrong people

Like with any other business, hiring the right staff can make or break your business — particularly in the service industry. More so, 23% of beauty businesses failed because they did not have the right team. Consequently, the beauticians and specialists that you choose to hire must have a series of personality traits. Professional characteristics include vast experience, excellent interpersonal skills, good time management, and more. Some of them are hard to find.

So, the question that arises is why do these common denominators occur? The underlying reason is a lack of fundamental business skills. Business skills are essential to keep the wheels of your company running smoothly. Although you don’t have to be an expert in everything, a basic understanding of the essentials will help you and your business reach success.

Sign up now for our NEW Online Business Academy - Available September 2021. Featuring three CPD accredited courses designed for beauty entrepreneurs and professionals at startup, post-startup and established stages of business. Our courses will help you to develop a broad understanding of business and provide the foundations of business success in key areas such as marketing, customer management, finance, team communication and business strategy.

Register your interest today!


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