All business ventures have the potential to become profitable including mobile hair waxing removal businesses. Even in a down economy or among the intense competition, savvy entrepreneurs can lead their companies to profitable territory.
Before going all-in on a new business venture, it helps to explore its potential. After all, even small business ventures require upfront investments.
For example, a mobile waxer will require transportation, equipment, and marketing.
Let’s look at seven factors that determine whether or not a mobile waxing hair removal business is profitable.
1. Startup Costs
Hair removal waxers require some tools. In addition, starting the venture requires some startup costs. They include:
- Business license
- Professional licensing
- Business registration
- General liability insurance
- CRM software
- Accounting software
Costs specific to a mobile waxing company are:
- Grooming tools
- Commercial vehicle insurance
Savvy entrepreneurs figure out how to keep their startup costs minimal. For example, you can use your vehicle instead of purchasing another.
You can read more about starting a freelance waxing business by clicking here.
2. Ongoing Costs
For waxers, ongoing costs include wax beads, hair removal sticks or strips, and grooming tools. Mobile waxers must include vehicle maintenance, insurance, and gas too.
The good news is that after the initial investment in the wax heater, the cost of the beads is manageable.
If you pre-book appointments, you can calculate the per-mile costs. Plus, you can purchase the right amount of inventory. Although it’s best to purchase beads in bulk to receive the best price.
3. Research the Competition
As the components of your waxing venture come together, research the competition. Nail salons, waxing service franchises, and multi-service salons provide wax services. However, the customers go to the location, not the other way around.
In 2020, the above wax service providers took a revenue hit. As non-essential services providers, they had to shut their doors in accordance with government laws. It’s different for mobile waxers.
If the economy shuts down again, a mobile waxer has a leg up on the bricks-and-mortar competition.
4. Market Demand
Research data shows that the demand for waxing services continues to increase. Females have sought ways to remove body hair for decades. Now, males have entered the arena too.
From 2017 to 2022, the market share grew 5.3% on average annually.
The demand for mobile services grew too. For example, food trucks have become the starter business for entrepreneurs who hope to own a restaurant.
A mobile waxer can start the venture as a solopreneur. If you pick up enough customers, you can parlay the demand into a fleet.
5. Economic Conditions
In 2022, economic conditions continue to have an impact on business operations and profits. The cost of gasoline continues rising and so do the prices of goods.
For several reasons, the beauty industry remains resilient in the face of recessions and inflation. During the Great Depression, the beauty industry held its own. Thus, economic conditions deter some customers but not the entire base.
Enterprising entrepreneurs figure out how to ride the economic highs and lows. The goal is to keep your calendar full. Then, you must ensure that each appointment earns a profit. Finally, if you need to incentivize customers, consider offering gift cards or packages.
A company’s ability to turn a profit depends on its management. Whether you run a one-person operation or manage a fleet of waxers, keep your eyes on the prize, revenue.
One way to maximize revenue is to automate business operations by adopting software, namely a customer relationship management platform. It centralizes the company’s calendar, customer information, and feedback. Then, you can use it to compile financial reports.
Ideally, you’ll spot opportunities and ways to cut costs in the reports.
In all market conditions, companies should invest in marketing. Today, you can market your company with little upfront investment. You’ll pay for a:
- Digital assets
- Search engine optimization
However, you can also use free or low-cost versions that will scale with your venture.
If you set aside one day for marketing, you can create the website, social media accounts, and logo. Then, link everything together so that the search engines can rank and index them.
If you want to know if a mobile waxing hair removal business is profitable, the answer is it depends. Given the resilience of the beauty industry and market demand for hair removal services, a mobile waxing business can develop a healthy revenue stream. The trick is to manage your costs and weave your way through economic conditions.