Updated: Jun 11, 2020
It’s no secret that businesses irregardless of industry have taken a hit from COVID, with some industries adversely affected more than others. In times of economic fragility, the beauty industry has been known to survive and thrive, often referred to as the ‘Lipstick Effect’ - a phenomenon that sees people always continuing to buy cosmetic products to beautify themselves and feel good no matter what state the economy is in. This has historically been the case, however COVID has brought on a mixed effect across the globe. What has been interesting, on the brand/product front, is that global premium beauty brands have taken a dent in sales and profits, with independent or ‘indie’ beauty stealing the show. These ‘indie’ beauty brands, particularly labeled as Clean Beauty (i.e. Vegan / Organic / Natural beauty), have been experiencing a surge in sales and gaining momentum thanks to social media waves and campaigns urging people to ‘support small businesses’ or ‘buy local’. Many consumers felt inclined to shift their gaze from brands shipped in from other countries, looking instead for beauty alternatives from within their home country. In essence, COVID has provided an unprecedented opportunity for many small business owners and fledgling entrepreneurs, in many cases providing the ‘big break’ they desperately needed.
The ‘Lipstick Effect’, however, never anticipated a global pandemic that would require ‘social distancing’ measures, cutting off contact with our beloved beauticians and hair glorifiers. The service sector has therefore been the most affected by COVID, with staff being furloughed, businesses experiencing temporary closure and in the worst of cases, business being wrapped up entirely, forcing business owners to return to the job market. However, some who have permanently closed their service offering have spotted an opportunity, choosing to pivot their business and begin to provide products to customers/clients they once served. But for both independent beauty brand owners and business owners who have transitioned from service to product retail, the issue that still remains is HOW to make their business grow.
As the growing global preference for clean, green and sustainable beauty products is set to put this industry at a vale of $43.4 billion by 2022 (Beauty Business Journal, 2020) business owners either making or selling these products for retail or service, have great inexperience in this ‘forced’ transition. Some may struggle to cope with a surge in new customers and heightened interest in their brand. Others will have no problem getting people excited about their products, but may have a hard time converting new prospects to sales.
Product retail newcomers, specifically former service business owners, may encounter difficulties in generating demand from their current client database. This is just one of many other challenges they face, including:
Transitioning to an e-commerce platform from an enquiry/advertising website
Learning how to sell products online
Generating traffic to their new retail website
Dealing with customers in an automated way without direct contact, rather than relying on calls or face-to-face meetings
COVID has brought attention to businesses such as Diadem Business Consulting, which offer Mentoring programmes or Scale Up programmes to brand owners and new entrepreneurs seeking support to fully exploit their newfound growth opportunities.
So what's the difference between a Mentoring Programme and a Scale Up programme?
Although both are led by a beauty business consultant or beauty business mentor, there are 5 key differences:
1. How much time you have to spend on growing your Beauty Business
Mentoring programmes tend to take place over a short period of time - in our case, a minimum of 12 weeks. Control of the programme’s progress is largely in the hands of the business owner, who can pinpoint specific areas of improvement they wish to focus on along the way. Due to the self-paced nature of the programme, mentees can decide how much time they wish to commit. It is also generally possible to continue with other, non-business-related commitments during a Mentoring programme - some mentees even have full-time jobs!
A Scale Up programme takes place over a longer period of time - normally 12 months. They are more guided than Mentoring programmes, requiring participants to complete specific modules every week in order to progress. This is ideal for people who work on their business full-time and are able to regularly dedicate time to the programme.
2. How much effort you can put toward the growth of your Beauty Business
Both types of programme require considerable personal effort, dedication and commitment from the business owner.
A Mentoring programme offers participants more autonomy, with support and guidance available as and when needed. They will work with their mentor on the specific areas of their business they believe to be in most desperate need of improvement.
On the contrary, a Scale Up programme is structured as a directed week-by-week programme. Participants will look at their entire business model, rather than just specific areas, and therefore significantly more effort is required.
3. How much support you need to achieve your business goals
Mentoring and Scale Up programmes offer similar levels of support: professional business assistance and industry-specific advice. Both feature an online Vault containing a wealth of useful resources, including many how-to guides. Participants in both programmes can take advantage of full online support including telephone assistance and video conferencing with their personal 1-to-1 business mentor, meaning we can accept applicants from anywhere in the world.
On the Mentoring programme, participants typically speak to their mentor on a monthly basis to track their progress, but can also benefit from additional interim support as and when required.
Participants on our Scale Up programme receive weekly support from their mentor, with an emphasis on supercharging sales and profits as quickly as possible in a short time. There is some independence, but your mentor acts as an accountability partner on a weekly basis. Scale Up programme participants also benefit from additional access to industry contacts, networking events and opportunities to introduce their brand to buyers.
4. What the end goal is for you and your Beauty Business
The end goal of a Mentoring programme is for mentees to grow their business by learning how to efficiently manage the specific problem areas they were initially struggling with.
The mission of the Scale Up programme is for participants to see their business experience serious exponential growth, making at least 6 figures in 12 months. The programme can also lead business owners to investors, support businesses through to retail and help them expand to market.
5. The amount of access you have to tools that will grow your Beauty Business
Both programmes ultimately help participants grow their businesses. They make use of an Accelerate Plan (a personalised written strategy to achieve business growth) and will provide you with the business skills you need to succeed. On the Mentoring programme, participants will learn how to grow their business through 1-to-1 online mentoring sessions with a growth mentor, and can also choose to create a Business RoadMap to track their progress.
Participants on the Scale Up Programme have access to all this and much more, including expert masterclasses, the opportunity to sell their brand on an exclusive online retail store, quarterly market reports, industry insights and beauty industry resources.
How Do I Know Diadem's Scale Up Programme Will Work For My Beauty Business?
Diadem Business Consulting has successfully assisted a number of business owners throughout the COVID crisis through our expertly designed Mentorship programmes, which focus on specific problems faced at the different stages of a business’ life cycle - be it a startup or a business that has been trading for several years. Mentees have seen significant progress and reported all-round sales growth based on our proven 5-point system of success, covering the best lead generation tactics, effective marketing, proven sales conversion strategies and the core fundamentals of running an efficient business. In addition, mentees receive industry-specific advice, business support and online tools to supplement their learning and apply their knowledge throughout their 12 weeks of mentoring. Here are our most recent testimonials
“Within the first week of reading some of the guides provided by BB Fix, I tested what I had read by including ways to up-sell and created a bundle of products on the website which sold out within a day of implementing. Seeing results as quickly as this, I'm really looking forward to starting properly and seeing even better results!” - J. Mun
“Diadem Business Consulting’s professionalism and business savvy is worth its weight in gold. Quite simply, they ‘get’ it; there is no need to explain elements of my business, as their all-round business knowledge is vast. On a personal note, I am finding the accountability very helpful, if at times daunting. I am noticing benefits from day 1, and cannot wait to continue this journey.” - Erica W.
The success of these Mentoring programmes has led to our NEW and exclusive Scale Up Programme which focuses on businesses wanting to achieve a crazy amount of growth in a short space of time.
How Do I Apply to the Scale Up Programme?
If you’re a beauty business owner - whether you have a brand, have transitioned from service to retail, or are thinking of relaunching your beauty services after COVID - Apply for the Scale Up programme. For more information, including eligibility click here.
Spaces are LIMITED for this once a year programme and applications are set to explode! Don’t miss out on the best investment you could ever make for your business! Applications open Friday 12 June at midday.
Make 2020 YOUR turnaround year where you scale up!