Starting a laser hair removal business is increasingly attractive. The industry is growing at a spectacular rate and will continue to do so for some years to come. A recent report by Research and Markets indicates that, globally, the laser hair removal market size will reach $1.2 billion by 2026, growing at a compound annual growth rate (CAGR) of 35.4% in the years leading up to 2026. Those are incredible numbers and suggest that if you can grow at anywhere near the market rate, you can make a lot of money. The most pessimistic report I have seen, which is by Global View Research, suggests that the market will grow at a CAGR of 20.6% till 2028. The growth in the market is certainly a big reason why you should consider starting a laser hair removal business. Here’s how.
In terms of capital, starting a laser hair removal salon business is not extremely capital intensive. You will require a significant outlay of invested capital, but nothing obscene. As with all businesses, planning will be hyper-important and managing your risks and the chain of innumerable details involved in the business, will be crucial to your success. If successful, you may even be able to grow your business into a franchise.
Do Your Research
This is possibly the most neglected element of the startup process. You need to understand the industry you are in and how it operates, if you are going to have a chance at earning meaningful profits.
Market research will confirm or disconfirm your hypothesis that there is a viable market opportunity for you to attack. It will also help you gather intelligence on potential customers and the competitive conditions and learn from your competitors. Use your market research to build a compelling value proposition.
You also need to know the regulations governing the industry, and these differ by state, from the very permissive regulations of New York, to the much stricter regulations of other states. Understanding the regulatory climate is important so that you do not fall afoul of the law. You need to know what certification requirements exist, the kind of training you need, and the registration requirements. You also need to understand the demographics of people who usually demand laser hair removal treatments, and the kinds of ways that you can reach your target market.
Decide on Your Business Model
There are two routes you can take. The first is to be an owner-operator, running your own business. The second is to buy into a laser hair removal franchise. In terms of costs, buying a franchise has more upfront costs, but, in the long run, it tends to be much cheaper and more profitable than starting out on your own.
If, however, you want to build your own company, and believe you do not need the help with training and the recognition that a franchise’ brand gives, you should start your own business. Many of the best laser hair removal businesses were started from scratch and grew into highly profitable businesses offering high quality services.
The Small Business Administration (SBA) has a lot of great resources on how to start a business. These resources will help you throughout your business development journey, from developing your business plan to opening your bank account.