In South Africa, major retailers in this industry are investing heavily in their ecommerce capabilities. Click and collect options are growing in popularity as well as online shopping.
If you are looking to buy a business in this sector, you should consider how the business you buy will be able to adapt to these technologies.
Sector overview
Health and beauty in the retail sector have become increasingly intertwined. Many beauty businesses are becoming health-oriented. Customers are also looking for businesses that are able to offer sustainable and eco-friendly products.
Experiences have also become more important to customers and this is what they are hoping to spend their money on. So, treatments and in-store experiences are sure to attract more people to spend money at your business.
This is good news as beauty businesses quite often offer services such as massages, manicures or facials. Keep this in mind when looking for a business to buy. Even if the business is more focused on retail, is there room to add these kinds of services?
As the industry changes, though, you will need to keep up to date and shift your business in order to incorporate these changes.
Things to keep in mind
You will also need to pay close attention to the staff that are employed at the businesses that you are considering buying. Many customers, when it comes to beauty treatments, will return to the same person time and again if they trust them.
A good team, no matter the business, will be a great asset to you.
The health and beauty industry has also seen great success on social media. You can gain quite a following on Instagram or YouTube, if you take a professional approach to it. Because of the competition out there, though, you will need to make sure your social media is of a high quality.
Find a business to buy
Many people that own or run businesses in the beauty industry are self-employed. If you want to be your own boss, this is a great industry to go into. This doesn’t mean that every business will be the right one, though.
Finding the right business will be an important part of making sure you start out on the right foot. The business you find will need to be in a good location. This is determined by the demographics in the area as well as the number of other health and beauty businesses nearby.
If there are other beauty businesses around, how will your business distinguish itself? Will it offer different services or appeal to a different market?
You should also be aware of the equipment that will be included in the sale. What condition is it in and what is its value? This will affect the value of the business. If it isn’t in good condition and will need replacing, you will be able to negotiate down the price of the business.
Your customers will be expecting clean and up to date equipment and stock so this is what you should expect from a business that you are going to buy.
