3 Things to Consider Before Starting a Beauty Supply Store

So, you’re thinking about how to start a beauty supply store? That’s exciting! Retail is one of the fastest-growing industries and one of the nation’s largest employers. But before you dive headfirst into this new venture, there are three important things you need to consider.

1. Your “Why”

In business, your “why” is crucial. It’s your mission or vision statement that defines the purpose behind your beauty supply store. Why are you opening a beauty supply store? This should be clear enough so that when someone asks you, you can explain it concisely. Your why will keep you motivated, especially when things get tough—and trust me, they will.

Running a beauty supply store means long hours, handling difficult customers, managing employees, dealing with landlords, and navigating vendor challenges. Your why will serve as your anchor. For example, when I opened my beauty boutique, Fabulous Freddy’s, my why was simple: to offer women of color a better in-store experience. This resonated deeply with my customers, many of whom traveled long distances and passed numerous other beauty supply stores just to shop with me because they connected with my why.

Defining your why will also help you communicate your purpose to employees and customers, ensuring that they understand your store's unique value. This can even be a key factor in setting your business apart from competitors.

2. Your Finances

When you’re inspired to start a business, it’s easy to want to jump in right away. But before you apply for loans or start buying inventory, it’s essential to understand the beauty supply store start-up costs and prepare your finances.

First, estimate the total cost to build and stock your store, including operational expenses for at least the first year. Don’t forget to factor in your personal expenses for the first six months—this will give you a more accurate picture of how much capital you need to get started.

Next, review your credit. Your credit score will play a significant role if you're looking to secure a loan. You can access your free credit report once a year from the three major credit bureaus. I personally recommend using tools like Credit Karma for daily updates and services like Lexington Law for credit repair if needed.

If you plan on getting a traditional bank loan, it’s not just about having a good credit score. Lenders will look closely at your personal and business bank statements to evaluate cash flow and money management. I didn’t realize this initially, but banks want to see how well you handle your finances. I suggest taking 3-6 months to clean up your credit and bank statements before approaching lenders. Once you’ve raised 20% of your needed funds, you can start talking to lenders about financing your beauty supply business.

3. Your Niche

One of the fastest ways to fail in retail is by trying to be everything to everyone. Identifying your niche is critical. A niche is a specific subset of the market that your store will focus on. It gives your business a unique feel and makes it stand out from competitors.

When I started Fabulous Freddy’s, I knew I wanted to create an upscale beauty supply store that sold exclusive hair care brands. I focused on the natural hair care niche, specifically targeting women of color with textured hair. This not only helped define my product range but also shaped my entire brand identity.

So, ask yourself: What will make your beauty supply store unique? Are you specializing in products for a particular hair type, demographic, or beauty need? Whether you’re planning to start a black-owned beauty supply store or an online beauty supply store, narrowing down your niche will help you tailor your product offerings and marketing efforts to the right audience.

There are, of course, many other things to consider before you dive into opening a store, but these three—your why, your finances, and your niche—are essential starting points. If you’re feeling ready to take the next steps and start your beauty supply store, I’m here to help!

Schedule a 15-minute consultation with me here, and let’s talk about how to get your beauty business off the ground. Let’s go!