How to Start a Waxing Business

People of all genders turn to waxing services for body hair removal, whether they go to a waxing salon or an in-home mobile waxing service. Waxing is a huge industry, worth nearly $30 billion, which is indicative of the high demand for body hair removal.

If you want to tap into a profitable industry, you could start your own waxing business and make a good living as an entrepreneur.

But first, you need to have some business knowledge. Fortunately, this step-by-step guide has all the business insights you need to start a successful waxing business.

Step 1: Decide if the Business Is Right for You

Pros and cons

Waxing industry trends

Industry size and growth

• Industry size and past growth – The U.S. personal waxing and nail salons industry is worth $29.9 billion in 2023 after growing an impressive 8.6% annually for the last five years.((https://www.ibisworld.com/united-states/market-research-reports/personal-waxing-nail-salons-industry/))
• Growth forecast – The U.S. personal waxing and nail salons industry is projected to grow 1.9% in 2023.
• Number of businesses – In 2023, 479,103 personal waxing and nail salon businesses are operating in the U.S.
• Number of people employed – In 2023, the U.S. personal waxing and nail salons industry employs 703,910 people. 

Trends and challenges

Trends

• The Brazilian wax is still one of the most popular waxing services.
• More and more men are getting various waxing services, giving waxing businesses a boost.

Challenges

• Laser hair removal is a relatively new body hair removal process, and some people are choosing that over waxing.
• Waxing injuries can occur, which creates liability for waxing businesses.

Demand hotspots

• Most popular states – The most popular states for estheticians are Washington, Maryland, and Connecticut.((https://www.zippia.com/esthetician-jobs/best-states/))
• Least popular states – The least popular states for estheticians are Indiana, Kentucky, and Nebraska.

What kind of people work in waxing?

• Gender – 94% of estheticians are female, while 6% are male.((https://www.zippia.com/esthetician-jobs/demographics/))
• Average level of education – The average esthetician has a bachelor’s degree.
• Average age –The average esthetician in the US is 34.9 years old.

How much does it cost to start a waxing business?

If you start a mobile waxing business, you can expect to spend about $6,000 for equipment, supplies, and a van to transport your equipment. Starting a waxing salon can cost $50,000 or more. Costs include the space rental and preparation, and a labor and operating budget. 

You’ll need a handful of items to successfully launch your waxing business, including: 

• Wax 
• Wax Heaters / Pots
• Waxing Rollers 
• Wax Strips 
• Wax Solvent Cleaner
• Cleanser
• Pre and Post Waxing Oil
• Spatulas
• Scissors
• Tables/Beds

How much can you earn from a waxing business?

What you charge for various waxing services may range from $15 for a small area to $300 for a full body wax. These calculations will assume an average price per customer of $50. Your profit margin with a mobile waxing business should be about 70%. 

In your first year or two, you might have 25 customers a week, bringing in $65,000 in revenue. This would mean $45,500 in profit, assuming that 70% margin. 

As you gain traction, you might open a salon and have 200 customers a week, but your labor and operating costs would reduce your profit margin to about 30%. With annual revenue of $540,800, you’d make a tidy profit of $162,240.

What barriers to entry are there?

There are a few barriers to entry for a waxing business. Your biggest challenges will be:

• Funding the startup costs
• Competing with established salons

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Step 2: Hone Your Idea

Now that you know what’s involved in starting a waxing business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research waxing businesses in your area to examine their services, price points, and customer reviews.

• Make a list of waxing businesses that offer similar services. 
• Review your competitors’ services – their features, pricing, and quality – and marketing strategies.
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a hair removal business that offers laser hair removal as well as waxing, or a waxing business that caters to men.

You might consider targeting a niche, such as Brazilian waxes.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

In addition to waxing services for men and women, you could offer other services like manicures and pedicures, facials, and massages.

How much should you charge for waxing services?

Your prices should be based on market prices in your area, but also on your costs.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Waxing appeals to people of all ages and income levels, so you should spread out your marketing to include Tiktok, Instagram, and Facebook.

Where? Choose a waxing business location

In the early stages, you may want to run your business from home if you’re starting as a mobile waxing service. But once you open a salon, you’ll likely need to hire workers for various roles and will need to rent out a salon space. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Waxing Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “waxing” or “body hair removal”, boosts SEO
• Name should allow for expansion, for ex: “AllureAesthetics Hub” “GlowGrove Beauty Labs” over “SmoothSilk Wax Studio” or “BareBliss Waxworks”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Waxing Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Provide a concise summary of your business plan, highlighting your goals and the unique aspects of your services.
• Business Overview: Describe the nature of your waxing business, specifying the types of waxing services you’ll offer, such as facial waxing or body waxing.
• Product and Services: Detail the specific waxing treatments and packages you’ll provide, emphasizing any specialty services like Brazilian waxing or eyebrow shaping.
• Market Analysis: Analyze the local market for waxing services, considering factors like customer demand, pricing trends, and potential competitors.
• Competitive Analysis: Identify other waxing salons in your area, highlighting your salon’s competitive advantages, such as quality of service, pricing, or convenient location.
• Sales and Marketing: Explain your strategies for attracting clients, including advertising, promotions, and building customer loyalty through excellent service.
• Management Team: Introduce key team members, such as estheticians and front desk staff, emphasizing their qualifications and expertise in the beauty industry.
• Operations Plan: Outline the daily operations of your waxing salon, covering everything from appointment scheduling and client consultations to hygiene and safety protocols.
• Financial Plan: Present financial projections, including startup costs, expected revenue, and profitability estimates based on pricing, customer volume, and recurring business.
• Appendix: Include any relevant licenses or certifications needed to operate a waxing salon, as well as product information and details about your salon’s location and interior.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to waxing businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your waxing business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts. Here’s how to form an LLC.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation. Read how to start a corporation here.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a waxing business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Business Licenses and Permits

Starting a waxing business requires obtaining a number of licenses and permits from local, state, and federal governments.

Your state may require licenses for your estheticians and for your salon. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your waxing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Vagaro, MarketBox, or Salon Management, to manage your bookings, customers, and payments.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Book Now”. This can sharply increase purchases. 

Marketing

Here are some powerful marketing strategies for your future business:

1. Social Media Flash Specials: Leverage the power of social media by offering flash specials exclusively to your followers, creating urgency and driving immediate bookings.
2. Client Loyalty Programs: Implement a loyalty program rewarding clients for repeat visits, encouraging customer retention and word-of-mouth referrals.
3. Educational Content: Create informative content about the benefits of waxing, debunking myths, and providing aftercare tips on platforms like Instagram and YouTube to position yourself as an expert.
4. Partnerships with Local Gyms or Spas: Forge partnerships with local fitness centers or spas to cross-promote services, tapping into their customer base for potential clients.
5. Seasonal Promotions: Introduce seasonal promotions, such as “summer-ready” packages or holiday-themed discounts, aligning your services with the current needs and trends.
6. Mobile Waxing Services: Offer on-site services for events, weddings, or busy professionals, bringing the convenience of waxing to your clients’ doorstep.
7. Referral Discounts: Encourage clients to refer friends by offering discounts for both the existing and new clients, creating a network of satisfied customers.
8. Google My Business Optimization: Optimize your Google My Business profile with accurate information, high-quality images, and client reviews to enhance your local search visibility.
9. Specialized Packages for Men: Create tailored packages for men, tapping into an underserved market and breaking down stereotypes about male grooming.
10. Community Sponsorships: Sponsor local events or sports teams to increase brand visibility within the community, fostering a positive reputation for your waxing business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your waxing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your waxing business could be:

• Safe and convenient waxing services for men and women
• Hair removal in the comfort of your home
• Need a same day appointment? Give us a call

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a waxing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in waxing businesses for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in waxing. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small as a mobile service, you may not need any employees. But as your business grows and you open a salon, you will need workers to fill various roles. Potential positions for a waxing business include:

• Estheticians – perform waxing services
• Receptionist – greet customers, take calls, make appointments
• Marketing Lead – create and implement marketing strategies
• General Manager – scheduling, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Waxing is an in-demand service, as evidenced by the size of the market and its recent growth. By starting your own waxing business, you’ll be serving that demand and making a good living. Whether you start a mobile service or a salon, you’ll have great profit potential and an opportunity to grow your business.

Now that you understand the business, you’re ready to get your successful waxing business going!