Entrepreneurship in Cosmetology – SS2 Beauty & Cosmetology Lesson Note (Second Term)

Entrepreneurship in cosmetology is turning your beauty skills into a business by solving problems for clients in exchange for money.

Behavioural objectives

By the end of the lesson, students should be able to:

1. describe the mindset of an entrepreneur in cosmetology;
2. compare mobile services, a home-based salon and rent-a-chair, giving one advantage and one disadvantage of each;
3. explain what a “minimum viable product” (MVP) is and give an example;
4. state three ways to manage seed money;
5. list habits that make a small beauty business more professional.

What are the key terms in cosmetology entrepreneurship?

These are the main terms used in this topic.

• Entrepreneur: a person who starts and runs a business and accepts the risk that comes with it.
• Seed money: the small amount of money used to start a business.
• Profit: the money left after all business costs are paid.
• Client: a person who pays for your beauty service or product.
• Brand: the name, look and reputation by which people know your business.

What is the mindset of an entrepreneur?

An entrepreneur’s mindset is the habit of solving problems for people in exchange for money, not only knowing how to make hair or apply makeup.

• Spotting a gap: Ask what is missing near you. No one may know how to fix “invisible” locs, or natural soap for sensitive skin may be hard to find. That gap is a business opportunity.
• The “hustle” spirit: At the start you are the manager, stylist, cleaner and accountant. You must be ready to wear many hats.
• Starting with what you have: You do not need a grand salon in the city centre. Many stylists begin on a front porch or by visiting clients at home.
• Starting before it is perfect: “Done” is better than “perfect” when you build your first business.

Which business models can you start with?

There are three common business models for starting with little money: mobile services, a home-based salon and rent-a-chair.

Mobile services

• Meaning: you carry your kit to the client’s home.
• Advantage: there is no rent to pay.
• Disadvantage: you spend time and money on transport.

Home-based salon

• Meaning: you set up a dedicated corner in your house.
• Advantage: costs are very low.
• Disadvantage: you must protect privacy and keep your home neat and professional.

Rent-a-chair

• Meaning: you pay a small daily or weekly fee to a salon owner to use one of their chairs.
• Advantage: you work in a professional place and meet the salon’s walk-in customers.
• Disadvantage: you must pay the fee even on days with few clients, and you follow the owner’s rules.

How do the three models compare?

What is a “minimum viable product” (MVP)?

A minimum viable product (MVP) is the smallest version of your product or service that you can start selling today.

• Cream seller: do not make ten types of cream. Start with one, such as a “Magic Glow Butter”, that works well.
• Braider: focus on the three most popular styles. Master them so you work faster and better.
• Growth: use money from the first product to make the next one.

How does the feedback loop work?

1. Offer your first product or service to a few customers.
2. Ask them: “What did you love? What should I change?”
3. Listen and write down their answers.
4. Improve the product or service.
5. Offer the improved version to the next customers.

How do you manage your seed money?

Seed money is managed by keeping business money separate, reinvesting profit and keeping costs low, because poor cash control is a common reason small businesses fail.

• Separate the money: never mix personal money with business money. If you sell a bottle of oil for ₦2,000, that ₦2,000 belongs to the business and is not for your lunch.
• Reinvest: in the early months, try not to spend your profit. Buy a better hair dryer, nicer jars or more hair dye so the business grows.
• Keep costs low: use low-cost marketing. Post on your WhatsApp Status, or give friends a discount if they share your work on Instagram.

How do you keep simple records?

1. Buy a notebook for the business only.
2. Write down every sale, with the date and amount.
3. Write down every business expense, such as transport, materials and rent.
4. At the end of the week, work out profit: income minus expenses.

How do you price your services?

A good price covers your materials, pays for your time and leaves a profit.

1. Add up the cost of materials used for one client.
2. Add a fair amount for your time and skill.
3. Add a small profit for the business.
4. Compare with prices nearby, then set a price clients can afford.

How do you build professionalism and growth?

You build professionalism by changing from a “side hustle” into a “professional brand” as the business grows.

• Time management: keep opening hours, even at home. If a client calls at 10 PM, politely say you will attend to them at 8 AM. This earns respect.
• Customer loyalty: treat your first 10 customers like VIPs. A happy customer tells others about your business.
• The business name: pick a name and keep it. Print simple business cards to show you take your work seriously.
• Hygiene: wash hands and clean tools after every client.
• Registration: as the business grows, register the business name with the Corporate Affairs Commission (CAC).

Classroom practical and discussion

1. The “one-page” plan: on one sheet, answer: What am I selling? Who is my customer? How much will I charge? How will they find me?
2. Elevator pitch: a rich aunt wants to invest. You have 30 seconds to explain your business idea. What do you say?
3. Risk assessment: name the biggest thing that could go wrong in your business and say how you would fix it.

Evaluation

1. What does it mean to be an entrepreneur in cosmetology?
2. Name the three business models for starting with little money and state one advantage of each.
3. What is a minimum viable product? Give one example for a cream seller or a braider.
4. Why should you never mix personal money with business money?
5. Give two ways to build a professional brand as your business grows.

Assignment

Choose one business idea in cosmetology. Complete a one-page plan that answers the four questions in the classroom practical. Then state which of the three business models you would start with and give one advantage and one disadvantage of it.