The beauty industry although lucrative is equally an expensive undertaking. Whether it is a product or service oriented business, this industry demands quality at its finest.
This is especially true for running a salon or a spa business in Malaysia. You will set aside significant capital for equipment, products, stock, fixtures, decoration, marketing and many more.
And then there’s the waiting period for the build-out before the salon or spa is up and running.
When it comes to finding the right funding, even financially flourishing salons and spas find themselves confused. So don’t worry if you ’re having difficulty obtaining funding resources for your beauty business.
Here are 4 ways to get funding for your beauty business in Malaysia:
1. Prepare a solid business plan
As you are already aware, every business needs a business plan. You do not have to design a long drawn-out process.
In fact, you may already have put together lots of the necessary information your business requires.
The main purpose of having a business plan is to know what your business is about, how is it going to be successful and how are you going to fix issues that will later arise.
A comprehensive business plan also gives you a clearer picture of your funding needs. Knowing your budget, operational, marketing and financial plans as well as your expenses and liabilities helps you with narrowing down your funding options.
You could go through some beauty spa or salon business plans to get some guidance and ideas to help you develop yours.
2. Know How Much Funding You Need [restrict]
The first thing you will have to consider before you borrow, whether it is going to be from a local bank or investors, would be the amount of cash you will need to start your business.
On another note, click here for some tips on how to find the right bank for your business.
You will also have to figure out where you want to invest the amount and how you are going to repay your lender.
One easy way to acquire funding in Malaysia is via short-term loan. It is available for items such as working capital and purchase of machinery. However, although easy to obtain, it has to be repaid more quickly with higher fees and interest rates.
A rather valuable commodity to have is revolving credit (line credit or LOC). This can be used for your day-to-day operations and access to the money is only as needed. This means that you won’t be paying interest on money until you actually use it.
You could even approach alternative lenders to get quick funding, as this is now among the most convenient methods. There are also a host of government loans and grants that are available for Malaysia SMEs to apply in common.
For more information on how to get funding for small businesses in Malaysia, click here.
3. Obtain the Help of a Business Mentor
Since you are planning for your salon or spa business, this is the best time to seek the advice of a business mentor.
Seeking the help of a business mentor apart from giving you more insight for your business, might also provide you with information on alternative ways to easily obtain funding options that are more cost effective. Moreover, you could learn about the successes and failures of fund management.
You might want to find someone from the beauty industry or more specifically in the spa or salon industry that can help you as well as answer any related questions you may have.
You may reach local online platform such as Futurelab and Growing Giants, to get business mentors from various fields. Women Mentoring Network is another great Malaysian platform for women in business.
4. Utilise Accounting Softwares
You could use an accounting software to help you manage your funds effectively and to keep track of your business growth. Add inventory and other expenses you may have in it.
This is not only a great way to manage your expenses, but to help you measure the growth of your businesses and its successes.
Choosing the right accounting software for your business is crucial as they improve efficiency.
Among the questions to ask yourself when choosing an accounting software include:
What are your business requirements? Do you need an enterprise resource planning (ERP) solution? How much are you willing to pay for the software? Do you prefer a monthly or annual subscription? Perhaps you would prefer to pay a one-off price for lifetime license?
Investing in the growth of your beauty business can be both a tough and exciting decision for any spa or salon owner.
As you look out for funding options, just remember to give yourself as much time as possible to read up and thoroughly evaluate your options.
Lastly, you will want to make sure you wind up in the most affordable option.