Beauty Business

How Profitable Is A Beauty Business? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is A Beauty Business? (Updated for 2024)

So you want to start a beauty business?

And the first question that came to your mind was, “well, are beauty businesses actually profitable?”

With a market size of $82.3B - there’s plenty of business to go around.

Especially considering:

You could start a beauty business with as low as $60
Based on our data, beauty businesses generate an average of $1.85M per year
You could see gross margins as high as 48% with beauty businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a beauty business.

Let’s dive in!

Is a beauty business profitable?

Yes, a beauty business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.85M per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your beauty business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your beauty business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a beauty business worth it?

If you’re wondering if a beauty business is worth it, the answer is a big YES. With beauty businesses, you have the potential to earn $1.85M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $82.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a beauty business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful beauty businesses case studies.

Examples Of Profitable Beauty Businesses

Here are a few examples of profitable beauty businesses, and a few more details about them:

1. Bodify ($4.2M/year)

are factors in our success. We had to work incredibly hard to build our business, but we also recognize that luck played a role in the opportunities and support we received along the way. We are grateful for all of it.

Is it profitable? Yes
How much money it makes: $4.2M/year
How much did it cost to start: $500K

How Two Sisters Started A Fat-Freezing Empire

Sisters launch successful fat-freezing empire, Bodify, raising $400k from investors and family, achieving $440k in profit four years later through effective marketing, authentic branding, and providing standout customer experiences.

Read this case study

Read by 11,050 founders

2. Urban Betty ($6.6M/year)

Chelle Neff, founder of Urban Betty, started her business by opening her own brick and mortar salon after five years of being in her own salon suite. She gradually expanded her team and transitioned from contractors to all commission-based employees. Eight years later, Urban Betty has two locations and over 50 employees, generating $3.3 million in revenue.

Is it profitable? Yes
What's the gross margin? 9%
How much money it makes: $6.6M/year
How much did it cost to start: $69.9K

How I Went From Hairstylist To Running My Own $3.3M Salon Business

This case study follows the founder of Urban Betty, who started her salon business with only one contractor, and now has two locations with over 50 employees, growing from 1.5 million to 3.4 million in revenue from 2014-2018, and investing around 2% of its gross income every year in Yelp, Google, and Facebook Ads.

Read this case study

Read by 21,659 founders

3. Meridian Spa ($360K/year)

Alma Curry founded Meridian Spa in 2017 after noticing a gap in the market for combining fitness and wellness. With her first venture, Meridian Fitness, already successful, she took a £120K gamble that now earns £30K/month.

Is it profitable? Yes
What's the gross margin? 48%
How much money it makes: $360K/year
How much did it cost to start: $600

My Path to Building A $30K/Month Spa Business

Case study of Alma Curry's successful business, Meridian Spa, generating impressive annual revenue of £350K with a profit of £198-200K, reaching 2.82M total impressions in the last 12 months through effective marketing strategies like PPC, FB Meta ads, and SEO.

Read this case study

Read by 1,233 founders

Learn more about starting a beauty business:

Where to start?

-> Beauty business plan
-> How to finance a beauty business?
-> How much does it cost to start a beauty business?
-> Pros and cons of a beauty business

Need inspiration?

-> Other beauty business success stories
-> Beauty business Instagram bios
-> Beauty business Instagram captions

Other resources

-> Beauty business tips
-> Blog post ideas for a beauty business

How much can you make with a beauty business?

With a beauty business, you can make an average of $1.85M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $60. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a beauty business make a week?

Based on our data, average weekly revenue for a beauty business ranges around $38.5K. As such, you could see monthly revenues of $154K.

To know if your beauty business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your beauty business.

How much do beauty businesses owners make?

The income of a beauty business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established beauty business is about $38.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a beauty business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Beauty Business Profit Margins

Generally speaking, a beauty business can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a beauty business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, beauty business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, beauty business owners can ensure long-term sustainability and profitability for their business.

Beauty business owner salary

The salary of a beauty business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established beauty business, in a prime position, might see an average weekly salary around the ballpark of $15.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a beauty business may be a promising business to start - but the success of your beauty business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable beauty business.

Part of

Starting A Beauty Business: Everything You Need To Know

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