Building a Beauty Empire. From 0 to 180k profit in 8 month and beyond

[ChocolateFactory]

I just researched and took the biggest in my state which also has offices in neighbouring states.
If they can scale like that, I figured they to be good

I guess that makes sense for a local business - but what if you have a brand/online store that ships internationally? Everything would be in English anyway, so I would be open to working with a company from anywhere.
They would have to do Instagram/Tiktok marketing, videos I could have produced by a local company. But a good video company isn’t necessarily a good marketing agency?

 

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[Kokaka]

I guess that makes sense for a local business - but what if you have a brand/online store that ships internationally? Everything would be in English anyway, so I would be open to working with a company from anywhere.
They would have to do Instagram/Tiktok marketing, videos I could have produced by a local company. But a good video company isn’t necessarily a good marketing agency?

I would just research an agency that have experience with this.

Yeah video and marketing is different.
I have just started to work with a local video/content creator. I think for this part, its best to chose someone local because of the tight work we will do.
Once material is done.
Send to marketing agency.
Best of both worlds

 

[Kokaka]

Update:
Machine Company
Finished all my leads. Everything is smooth. No new sales pending but cant complain. Very, very good q4 quarter last year.
Will do some travel now during spring to expand the business to also include a web-shop with consumables. Have some fairs to visit to get into contact with providers.

Clinic Company
What a month!

Clinic 1 is stable as ever.

Clinic 2 has made a total turnaround.
From thoughts of closing to the best month in the history of the company!

It seemed it was a pricing issue. Now we have lowerd the prices and work on volume. The city where clinic nr2 is located is a "blue collar working class city" wheras clinic nr1 is in a white collar academic city.
We treated clinic nr2 as clinic nr1. Did not work. We ailienated the customer base.

I noticed this when I was looking at the marketing graphs. Clinic nr2's city has more interests in theese treatment but less tha 50% bookings. So with some price adjustments, some are even down 48%, we have totaly turned it around. Everyone is fully booked now. And because the fixed prices are so low in clinic nr2. We start to make some profit there now.

This means, the business model we had before was sub optimal. Instead of trying to build luxury clinics with high prices we now do volume, volume, volume.
Because of the low costs, we are able to price out the competition and still make a nice profit.

Currently have 2 rooms active full time fully active. I have 1 more treatment rooms and the option to build 2 more.

Clinic nr 2 bookings is now 50% higher than in clinic nr1 so if we keep this up. We probabky have to expand the clinic by summer/autumn, since we sell packages, and 1 new customer is atleast 6-8 returning visits. So it will be a big bottleneck soon, so we are planning for it.

Also in clinic nr1, we are just about to decide to go from a 2 room clinic to a 4 room clinic. It is higher rent aswell as 20k security for 24 month we have to put down. Alot of money now but numbers are good.
If we can keep clinic nr2 like this, (make nice profit and not bleed money) this seems like the correct way to go.
Then we do volume in clinic nr1 aswell and have Volume as our business model. So far so good and it starts to feel interesting.
Beat the competition with quality, product varience, marketing, price and volume.

 

[Kokaka]

Some updates:

Machine company:
Have some leads, we will see what happens.
Had alot of service errands this month. This stressed me the f**k out before since service and maintinance was something I felt I was lacking. Now I have a fully stocked workshop, technicians and infrastructure that can fix the machines in no time. All stress momens has now gone away from this business.
I consider this business a sucessfull Stage III - D according to Harward Business Review (very good article and read if you are an entrepreneur)

The Five Stages of Small-Business Growth

No researcher has explored the earliest period of a business’s development in detail—until now.

hbr.org

Clinic Company:
We continue to slay past records. The new business model is killing it. By lowering our prices and focusing on volume over quality, we are able to scale fast now. Has hired 1 new person and probably 1-2 more on the way. Currently 12 people working in this company now.

Has gotten the contract for 2 new clinics. One to expand clinic nr1 and another to open clinic nr 3. Will travel to another city to try to open clinic nr 4. One of our veteran staff has agreed to relocate to clinic nr 4 city if we raise her salary a little. Everybody win.

Tring to go from stage II to stage III-G and the stage IV

The Five Stages of Small-Business Growth

No researcher has explored the earliest period of a business’s development in detail—until now.

hbr.org

This inflasion recesion has been a blessing. So many clinics are vacant and we just have to move in and sign a contract.
And together with the leasing trick and the new business model, now we are cooking with gas and everywhere is like 3-4 weeks que. I need more staff, more rooms and more clinics ASAP!

Also went to the worlds biggest beauty fare in Italy in march. Got alot of good connections and now I can connect doctors and nurses to this business with lower prices since I can get goods directly from the manufactorers.

Everything now is about lowering the costs of everything to try to get profit. And I think we are a good way there to lower our expenses, which will lower our prices to our customers, which will lennd more volume and in turn, more profit.

I have also gotten a business question from a machine company customer to become a franchise taker of the clinic company. When I can franchise this business, it will explode.

2024 is when the clinic business takes off. Wish me luck.

 

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[Bekit]

Awesome update.

This thread is one of the most relentlessly inspiring threads on the forum.

Congrats on your progress!!

 

[Riz786]

Good going all the best!