Beauty and Wellness Industry Case Study
Marie Management has helped 28 beauty industry entrepreneurs with for-profit companies across 6 states with operational systems and strategies. As a result, 30% of the company's new earnings from scaling were contributed to adding philanthropic arms of their own to the business model through a corporate responsibility program or nonprofit with us.
Beauty and Wellness Industry Problems
Problem #1 Supply Chain Performance: Beauty and Wellness Businesses struggle with the regular pricing, sourcing, receiving, storing, tracking, distribution and management of products used internally, sold online and in-location. We have found that beauty and wellness businesses that do not have a hold on their supply chain performance spend more money on inventory, equipment, materials, supplies and expansions to new locations than their competitors. Losing money due to supply chain performance can cause the business to operate in the red for more than half the year which ultimately affects staff and customer retention.
Problem #2 Compliance and Regulation: Beauty and Wellness Businesses struggle with compliance related to education, certifications, licenses, state regulations, contractual agreements and terms throughout business activities and functions. We have found that more than half of the beauty and wellness businesses struggle with compliance matters that put the business at risk of being cited, closed or sued.
Problem #3 Company & Team Management: Beauty and Wellness Businesses struggle with day-to-day management of business activities, staff necessities, customer and staff retention. The majority of the professionals in the beauty and wellness industry have only managed themselves and their clientele, therefore when they begin to expand their businesses and brands there’s a breakdown for everyone and everything involved. Business owners have to learn the proper protocols to manage the business, a management team and others outside of the services they provide.
- Nail Salon gained diversified income stream strategy, financial management and investor relations; built an apprenticeship program.
- Beauty Salon gained automated internal and external customer relations management systems; built a beauty school nonprofit.
- Barber Shop gained diversified income stream strategy, financial management and CRM implementation; built a training program.
- Lash Salons & Estheticians gained management protocol strategy and training, recruiting systems and expense cost reduction; built a training program.
- Wax Centers gained diversified income stream strategy, financial management and commission model sales implementation; provides esthetician scholarships.
- Salon Suites gained standard operating procedures, streamlined marketing & advertising systems; built an internship program.
Identify the Ways Marie Management Can Solve Your Problems As a Beauty & Wellness Business Entrepreneur
After an initial assessment, audit, strategic plan development and consulting all inefficient processes, existing technology systems and operating management systems required solutions in the following areas:
- Hiring Staff: In the beauty industry there are different types of services that require certified, trained and expert professionals to deliver them to customers. This means you will need to hire professionals to offer a variety of services you have chosen to sell.
- Staff Training & Turnover: Hiring people who already have an idea about the beauty and wellness industry is one thing, retaining them is another. Training staff regularly to learn the businesses preferred methods and to keep up with the trends of the industry is mandatory. Including professional development such as customer service best practices is 1:25 skills that will require consistent management along with regular evaluations of staff rather they are commission, booth rental, contractors or W-2 employees. Staff training requires a program to be developed that not only the owner can follow but that the management and staff can implement independently.
- Choosing the Right Products: The products of the business not only affect the customers, but they affect the staff and the bottom line of the business. If the business does not have the systems to properly manage, order, track and price inventory, the business will suffer financially.
- Customer Loyalty: Competitive advantage directly affects the business performance of beauty and wellness industry businesses. Without consistent customer management processes in place, businesses can expect to lose customers to their competitors daily. Consistent communication systems and strategic marketing are necessary to sustain customer relationships long term.
- Pricing Structures: From discounts, to memberships and regularly priced services, owners struggle with deposits, POS systems and breaking even based on the amount of payments minus expenses. Business owners are not basing their prices to include overhead expenses such as inventory and taxes, only the services.
- Marketing and Advertising: Marketing and Advertising strategies are necessary for the beauty and wellness industry even if the business is only providing services locally.
- Maintaining Consistent Income: Business owners have to maintain financial forecasting plans to reflect high earning quarters and low earning quarters in order to sustain long term. It is important to develop strategic alternatives throughout the year that enhance sales and the customer base where the business is weak in engagement to maintain consistent income.
- Bookkeeping: Maintaining regular books related to all business overhead is mandatory in order to make healthy long term financial decisions regarding payroll, maintenance, taxes, investments and scaling based on business projections.
Beauty and Wellness Industry Businesses scale to invest their profits in programs that provide services to vulnerable populations.
With these implemented solutions our Beauty and Wellness Industry companies become equipped to scale in order to implement their philanthropic arms with the following new operations and management processes in the following places:
- Human Resources Systems
- Training and Development Programs
- Management Protocols
- Policies and Procedures
- Standard Operating Procedures
- Project Management
- Customer Relations Management Systems
- POS Systems
- Financial Management System
- Marketing & Advertising System
- Communication System
Upon completion of streamlining and scaling the for-profit, Marie Management consultants began to build the philanthropic arm of the entrepreneurs choice (nonprofit, non-governmental organization, philanthropic arm, corporate responsibility program, private foundation, association or trust) with the following steps:
Step 1: Organizational Structure Development
Step 2: Board & Business Network Development
Step 3: Committee Development
Step 4: Program Development
Step 5: Strategic Planning & Logic Model Development
Step 6: Fund Development
Step 7: Outreach Strategy & Development
Step 8: Department Development
Step 9: Operational Systems
Step 10: Marketing, Advertising & Sales Systems