3 Tips for Scaling Your Beauty Retail Business

“It’s easy to OBTAIN but hard to SUSTAIN” - The Retail Genius.

That quote applies to just about everything in life, but today, I want to focus on scaling your beauty retail business. According to a recent study by the Ewing Marion Kauffman Foundation, Black entrepreneurs are starting businesses at impressive rates. However, they are also facing higher failure rates, with 90% of startups failing due to poor decision-making by the owners. Of those startups, 25% won’t make it past the five-year mark. Those numbers are alarming, right?

I personally believe that one reason for this is the lack of knowledge about scalability. So, what does it mean to scale a business? In simple terms, it’s leveling up. This means positioning your business for growth. To get there, it helps to understand the five stages of the business lifecycle. Let me walk you through these stages quickly (and if you want a detailed blog on this, let me know in the comments).

Stage 1: Seed and Development Phase
This is where you have an idea or concept that you’re testing. You’re just getting started.

Stage 2: Start-Up Phase
You’ve launched your business idea. At this point, you should monitor and measure what’s working.

Stage 3: Establishment Phase
Now, your customers are familiar with your business model. You have a loyal customer base, and your cash flow is more predictable. This is when you should start positioning your business for growth.

Stage 4: Expansion Phase
Yass! This is where the scaling happens.

Stage 5: Maturity or Exit Strategy Phase
In this final stage, you either plan for an exit strategy or focus on advanced expansion.

At my own beauty supply business, Fabulous Freddy’s, we’re currently in year eight and still scaling. Here are my three quick tips for how to scale your beauty supply business.

1. Secure a New Source of Funding

This tip is #1, okurr! Businesses often fail because they lack the funds to grow. One of the best small beauty business growth strategies is to secure a new line of credit or apply for a small business loan. Use this funding to invest in new technology, hire additional staff, and outsource or automate daily tasks.

In year three of Fabulous Freddy’s, I applied for my first loan of $9,500. With those funds, I built a professional website, upgraded my POS system, and added new inventory to my store. The POS system was a game-changer because I could generate reports in seconds, whereas before, I used spreadsheets, which took hours!

If you want to grow your online beauty supply store or brick-and-mortar, securing the right funding is essential.

2. Strengthen Your Ties with Your Tribe

One of the most important beauty supply business growth tips is to build and nurture your community. I strengthened ties with the Black community by launching a “Buy Black & Support Black Business” campaign through Indiegogo.

Keep the conversation alive with your customers and engage with them meaningfully. The 80/20 rule works here—spend 80% of your time engaging with your core customers and 20% expanding your reach.

Consider how you can give back to your customer base. Whether through loyalty programs, special events, or exclusive discounts, keeping your community involved will keep them coming back.

3. Collaboration Over Competition

It’s time to get out of your business and network! One of the best beauty retail business strategies is to collaborate with others in your industry. Work with complementary businesses to build relationships that benefit you both.

I began collaborating with beauty bloggers and other brands to host in-store events, which drove traffic to my store and created a buzz around my business. Partnerships like this allow you to reach new audiences and provide added value to your customers.

Whether you’re focusing on the beauty supply business or any other niche, remember that working together can often yield better results than trying to outdo the competition.

Bonus Tip: Work on Your Business, Not in It

As entrepreneurs, it’s easy to get caught up in the day-to-day operations, but you must focus on the core areas of your business that require your leadership. One book I highly recommend is "The E-Myth Revisited" by Michael Gerber. I’ve read it countless times, and it’s a great guide on how to step back and work on your business strategically rather than getting bogged down by the operational tasks.