How to Start A Beauty Business

Table of Contents

How to Start a Beauty Business in Ontario

There are dozens of reasons why you might want to dive into the beauty industry. Whether you have been training in school or making a transition from one career to another; the path to success will have some common landmarks along the way, and I’m here to be your trail guide.

I’m Sabria Bullaku. I’ve been an entrepreneur for the better part of 2 decades and take it from me, the road to success can be bumpy, winding, and almost always uphill. In this article I’m going to give you some fundamental tools for people who want to learn how to start a beauty business in Ontario.

Entrepreneurship is not for the light hearted. There is less space at the top of a mountain than there is at the bottom, this isn’t just because of physics either – in my opinion there’s less room at the top because it’s harder to get there. So buckle up your boots and let’s get hiking.

Business

Step 1: Choose your business name.

Before you decide what you will call your business, you need to make sure that you can purchase that domain name. A lot of people name their business and jump right into branding. They create a cool logo, get some business cards made, only to later learn that the domain for their brand isn’t available. Acquiring the domain is the first step to starting a beauty business in Ontario, even before you choose the business name. Your beauty business needs to have a digital studio (website).


First make a list of names that you love and also represents your vision. Use some adjectives, verbs, or nouns to describe your future beauty business. Don’t do any searches until you have completed this brainstorming exercise. Once the list is complete, then, and only then, can you start searching for domain compatibility options. And here is a pro tip – try to use keywords in your business name because if you can find a domain name that also incorporates the keywords that people search for – you will have a level of findability that rivals the best of ’em’.

Let’s suppose for the purpose of this article that you’re a 3D tattoo artist here in Ottawa who is setting off on your own to run your own studio. Well you might want to call your business something like “Next Dimension Dermis” which might sound cool but it doesn’t say who you are and what you do.


But if you call your business Ottawa3DTattos.com the power of your Domain, which already matches the keywords your customers are using in Google, will rank higher than your competitors. And while “Ottawa3dTattoos.com” doesn’t sound as artistic as “Next Dimension Dermis” you won’t be overly hung up on that because your schedule will be full and your coffers will be busting at the seems. Sometimes it’s best to let your art be the expression of your creativity – not the name of your business.


Once you have a healthy list of options head over to GoDaddy and start searching for options that match your brand names. They can end with .ca or .com or a big list of other options but often you will find that if your brand idea is already taken by a .com then buying the .ca might not be the best option because you will be competing with domain search rankings. This is especially true if the .com is an active business in Canada.


Once you find a domain that is available – pump the brakes! You still have to confirm the government is going to allow you to use this name as a legal business operating name.

Step 2: Incorporate your business.

There are lots of reasons to incorporate. From the savings in tax shelters to the protections in liabilities, incorporating creates an entity under which you can operate your business activities and protect your personal assets. For Canadian-controlled private corporations claiming the Small Business Deduction, the net tax rate is 9% (2022). For other types of corporations in Canada, the corporate tax rate is 15% (as of January 1, 2022) after the general tax reduction. Without the general tax reduction, the basic rate of Part I tax is 38%.

This means that as a small business you will only pay 10% income tax and you have the ability to write off a lot of expenses. Unlike the sliding scale model for personal income tax, your business will have fixed rates up to $500,000 in revenus. You, as an employee of your business, will still pay personal income tax but as business owners of a corporation you can pay yourself in dividends which are tax protected. Your accountant can help you more with that.

a) Get a FEDERAL NUANS SEARCH for your business. Basically this search looks all across Canada to see if a business in your service category has already taken this name and reserved it on the federal level. So if there is another 3DTattoo Printer in Canada you’re ok, but if they do tattoos then you will have to revisit your name options. This is going to be required when you file for incorporation. You will require this special report number in one of the incorporation steps.

The nuans report takes some time to come back to you. Usually 3-5 business days and it costs about $50 each time you do it, regardless of the result. So to save money this is why I recommend you do a domain search first – because if the business already exists it likely has a domain and that will help you reduce your list of viable options

b) File for incorporation with Corporations Canada – be sure to select the option to incorporate federally and not just for Ontario or whatever other province you’re in when reading this. I recommend this because it’s cheaper but also if you want to grow and open locations nationwide or even franchise you won’t have to go back to the provincial board for federal release.

Finance

Step 3: Register for HST & payroll accounts with CRA

Taxes. Unavoidable necessities of doing business. But as someone who owns several businesses, what I can tell you is that you want to make sure you are always square with the tax man. This means keeping meticulous books. More about that in another article later.

Your HST account and payroll account will allow you to charge customers and pay your staff as you remit what you owe on a monthly basis. There are a number of softwares that will make your life easier but for now let’s just worry about getting your ducks in a row.

Your RP (Payroll) number will allow you to remit your employer and employee deductions for EI, CPP, Federal tax and Provincial tax automatically. Understanding how these tax remittances work is important to running your business and managing your cash flow.

Branding

Step 4: Build your Website and select a Hosting Plan

A website with built in SEO (Search Engine Optimization), live chat, automation, lead captures, online booking, and CRM generally costs between $4k-$7k and then about $120 per month to manage/maintain/update/edit and pay for subscriptions. Even at the low end, the website and its features can quickly eat through your budget. That’s why it’s important to work with a real professional who offers financing. As tempting as it might be, do not get your cousin Vinny who to build your website because he learned on youtube one sunday afternoon. There’s more to it than that. A LOT MORE. The website is your digital doorway and you have to approach it with the utmost respect because the power it wields over your long term success is undeniable. A properly designed website will:

1. Increasing your lead generation, and re-targeting abilities
2. Lowering your administrative burden (Automation can manage your schedules, budgets, reward programs, inventory, online booking, products and pricing, etc.)
3. Create more accessible digital doorway for users in the early stages of their buying process.
4. Actively make you more discoverable to your customers with a content strategy.

Also you will want your web developer to come equipped with all the knowledge required to build a beautiful FUNCTIONAL website but also someone who thinks like a marketer because your website doesn’t just need to be pretty for your customers – in fact, knowing what I know now, I’d tell you it’s not nearly as important as how pretty your website looks to search engines.

I’ve worked with the same team for 8 years and that relationship has proven priceless throughout my career. Check out Center Stage Social and tell them Sabria sent you for a great discount and financing options on your new website. You won’t regret it.

Step 5: CRM & Booking

Your beauty business will definitely require a significant amount of organization and you won’t have the budget to hire an assistant so you’ll need to look to Software to help you tackle this part of the puzzle. Over the years I’ve used a lot of different CRMs and booking softwares. Each one comes with it’s own pros and cons and honestly none of them do everything I’d like. But you have to pick based on your own limitations both technical and time. The CRM and booking will be connected to your website through integrations that your web guys can figure out.


A CRM can be a powerful tool to help you send out reminders, take payments, book appointments, organize inventory, manage sales, and even pay employees. I like to use DaySmart Salon, personally but it took me some time to get to a point where I was utilizing all of the features they had to offer. Do you research and find the software that’s right for you and your Business Model. Depending on what kind of beauty business you’re running; the solutions will be different. For example if you’re a nurse doing filler injections you will be mandated by the province to chart for your patience and that will require a software more like Cliniko.

Legal

Step 6: Policies and Procedures

If you take a minute, sit back and take a mental journey as one of your clients from the initial “Need Discovery” all the way through to the “Positive Review” phase of their experience with you, you will start to think of how you want your operations to run.

This process is what will help you identify your unique selling proposition as an entrepreneur. It will give you the insights you need to address threats and weaknesses but also help you define your opportunities and strengths.

This mental exercise is not one that most entrepreneurs find easy because we spend so much of our mental energy on delivering services and managing our time. We rarely take a moment to step into the clients shoes and live their experience from their initial google search for our business throughout the whole process that leads them to review us in a positive way. And because clients are people, they will all have different consumer biases, impulses, fears, decision making capabilities and cognitive dissonance.

The objective here is to start mapping the most obvious path from Point A (the Google search) to Point B (The positive review). This process can evolve into a series of rules at various levels of your business. As you start to connect these dots you’re goal will be to put in writing what your expectations are as a business owner and what the expectations of your customers should (reasonably) be. Break this list down into phases of the customer journey and from there expand into more clear territory of your promise to them in this phase of their journey.

As you develop this policy and procedure map you will see ways to improve your processes and increase your productivity while keeping the fundamentals of your brand’s vision forefront and center.

Local

Step 7: Location, Location Location

Today the industry is plagued with challenges when it comes to the brick and mortar location where you conduct your business. A lot of people start off in their home. And while this might seem like the right stepping stone I’ve always perched about the various success blockers you attract when instituting this model. I’m not here to tell you one way or another if this is the right move for your brand because I don’t know your personal goals and situation but I will say that of all the businesses I’ve seen flourish and thrive are ran out of a dedicated commercial space that is designed for the services your business offers.


The barrier for a long time has been cost. More now than ever that street-side, big windowed, parlor style store front is so expensive you need to be fully booked 6 days a week, 3 months in advance to satisfy the insatiable appetite of the commercial retail space market landlords. Even then the costs will fall square on your shoulders for utilities and management. All alone with only that lady next door who runs the chinese food restaurant for company.


BeULounge has broken the entry barriers to this commercial real estate problem by providing a shared space, with community values and diversified overhead. You get to be your own brand, with your own space with your own operation model but without any of the exorbitant bills, entrepreneurial seclusion and loneliness and without giving up a piece of your independence.


Book an appointment with me and let’s discuss your beauty brand needs in one of my BeULounge locations in Ottawa.

Marketing

Step 8: Drive Traffic to your website

So now you have a great space that’s all your own it’s time to get serious about lead Gen! There are many ways to drive traffic to your site. One thing you can do yourself that will cost you nothing is to Blog. Write articles for your website and we can post them and optimize them. Also talk to other businesses in your industry and get them to link to your site to help build your reputation based on Google’s algorithms. Go to network events such as meetups or even host meetups and connect with other businesses and suppliers and get backlinks.

Using Instagram is a great way to get new clients, but so many businesses fail at this because they don’t understand the Instagram strategy. Running campaigns on Instagram doesn’t have to cost anything but they do have to look great. Nothing but “before and after” photos are a big no-no. Save that for your website. You want to focus on lifestyle. When I had enough money I worked with a creative director at my agency and he was able to guide me in everything from how to photograph, how to take videos, and he helped me to develop graphic content that was evergreen and on target with my branding goals.

Facebook is a pay to play atmosphere these days, but you still need a presence there. Many people will go to Facebook to read reviews and determine if they will trust you. You need to post differently on this platform than you will post on Instagram. Facebook is a placeholder for content before you have a budget to spend there. Your friends and family and fans can help by liking your content but you won’t get real traction until you have an ad budget. Engagement on this platform can be very helpful for your growth but it has to be done in a way that is fluid, non-aggressive and value driven. Content that tells a story is very important here.

Email marketing is always going to be your best friend. While it takes time to build your email database, it has to be part of your growth strategy from the minute you create your first email. Rules govern the way you’re allowed to contact people so you need to be sure you’re doing so in accordance with the CASL regulations in Canada. This means you have to have consent to send an email or you may be subject to getting a fine. Building your list can be done organically but you will need some advocates and influencers to help get you off the ground.

Google Ads is one of the best ways to drive search traffic to your site in the short term. But it’s important that your agency sets up a landing page with the properly tested lead funnels. There’s nothing worse than seeing lots of “Click-Through” traffic on your site but no emails coming in to inquire or book an appointment. The starting budget for ad words is around $600 per month plus management fee. Depending on how competitive the market is in your particular vertical this number could be lower or higher at different times of the year.

YouTube is a jungle of information. Most people think google is the number one search engine in the world but that’s only half true. The real search traffic giant is YouTube – especially for consumers who are trying to check your reputation and build trust. YouTube Ads are very effective, but like google ads they require a decent budget to get impressions and on top of that you have to invest in the development of a video that speaks to your audience. We have lots of experience in this genre of advertising and usually its something business owners invest in after a few years of successful operations.

For more information about some of the marketing growth hacks you can use to get serious about your beauty brand I encourage you to read this article developed by my agency guys.

Step 9: Keep the gears well greased

Running a business when you are the primary service provider is exhausting. You’re going to feel completely downtrodden some days. You will need support. When your schedule is full you will be tempted to work longer hours and reduce balance. 

We have all been there. 

Many business owners will tell you there comes a time in your growth where you are too busy to answer phones, emails, Facebook and Instagram DMs, keep up on posting, retargeting campaigns, and accounting and payroll and inventory management BUT too broke to hire a full time or part time associate in house. This is where entrepreneurial burnout happens. 

I’ve found that there are a number of solutions for this scenario. One is to be part of a bigger community of like-minded professionals who really understand what you’re facing on a day to day. At BeULounge you will have the opportunity to network with other beauty brands that can relate to you on a level like no one else. 

Another key solution for addressing the administrative burden is to partner with an agency.  An Agency can help you with everything from answering the phones and administrative tasks to marketing and even finance. An agency can help you bridge the growth gap and take you to the next level of scaling your business.  

Keeping the gears greased means driving the marketing flywheel seamlessly, the daily tasks that need to be addressed from both a marketing and administrative perspective.

Final Thoughts

Starting a business is a new step for anyone. There are ups & downs, but they are all worth it. I wouldn’t be in the position that I’m in today if it weren’t for all the mistakes I’ve made as an entrepreneur. Starting a beauty business in Ontario isn’t a walk in the park, but it is not difficult either. If you follow all the steps above, by the end, you’ll have a thriving beauty brand. Just remember, to never give up – as cliché as it sounds, it’s so true.

Do you want to grow your business?

we can do it together
be U lounge salon suites ottawa ontario reserve a suite