4. Don't invest before income
Understanding the Danger
Investing funds before any revenue is generated is one of the gravest financial errors in the Powder Brows or Hairstrokes business or any venture into new skills or markets. Let's delve deeper into this issue.
The "Gray Area" Artists: A Risk Group
Managing but not thriving artists are particularly vulnerable to this fatal mistake. They're in a precarious position — not devoid of customers but not bustling with them. Often supplementing their income with other services or jobs, these artists in the "gray area" might only see semi-permanent pigmentation clients sporadically, maybe once a week or less.
The Mirage of Instant Success
Artists with modest experience may believe learning a new style or service will boost their business. However, they often commit a significant blunder by investing substantial amounts disproportionate to their earnings, hoping to master a "miracle solution" or a trendy new style. This misguided optimism assumes that a hefty investment will quickly translate into substantial income, a belief often far removed from reality.
A Sad Tale from Real Life
Consider the artist who, enticed by a trending style on social media, invested heavily in training, travel, and supplies, only to find herself deep in debt with no return on investment. Her clients, who initially expressed interest, never followed through, leaving her with a significant financial burden and a harsh lesson learned.
Good Example from Real Life: How to Be Smart About It?
Conversely, let's explore suggestions based on seasoned artists' experiences and how they navigated their financial decisions with less naivety.
Check the Financials First
Investigate the financial statements of local artists offering the service you're considering. Social media often portrays a skewed image of success. Had the artist in our story done this, she might have realized that the profits were far less than anticipated.
Test the Local Demand and Prices
Before diving in, assess your area's market demand and actual pricing. Pretend to be a customer and gauge the availability and flexibility of other artists. You might discover that the market isn't as saturated as it seems.
The Ultimate Bulletproof Test: Booking Fees
Before investing in training, successful artists often gauge interest by collecting booking fees for "portfolio models" for the new style. If the response is tepid, it's a clear sign that the service might not take off in their area. Conversely, a strong demand, evidenced by numerous booking fees, can justify the investment and provide a solid start.
Consider artists in a social media group sharing techniques and pricing for a specific "signature style" of Powder Brows or Hairstrokes. While many may agree to a recommended price, one artist might undercut the price by 30%, attracting more clients and eventually becoming synonymous with that style. This scenario underscores that following group-imposed constraints can hinder potential growth and opportunities.
How Winners Operate - Artist vs. Artist
Successful artists prioritize their interests. Salon owners, for instance, should focus on filling their schedules before considering hiring others. If their schedule is full, it's often more profitable to raise prices than to share clients with other artists. The goal is to secure the client first, ensuring repeat business. This mindset encourages artists to be proactive, run multiple campaigns, and not be bound by the perceived "laws" of artist communities or groups. In the competitive world of PMU, it's about being the first to secure the client and maximize personal gain.
