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Why starting artists fail?

Jan 23, 2024, Update: Jan 23, 2024, author: Hairstrokes.com / Holistic PMU
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" Entering the pigmentation industry, artists often acknowledge the initial challenges but tend to underestimate their severity. Research reveals that many are more distant from establishing a sustainable business than they realize. Common misjudgments include overestimating incoming business, underestimating customer acquisition costs, and lacking a thorough understanding of competition. This article explores these crucial areas, providing insights into the actual experiences of new artists in the pigmentation field."

1. Background


This article is based on findings from three simultaneous research projects in the European Union, the United States, and the United Kingdom. These projects investigated the career progression of 581 students who completed powder brows, hairstrokes or microblading training from 2020 to 2022, during and after the Covid era. These students were surveyed 12 to 15 months after finishing their courses and obtaining certifications to perform these procedures.

The study included a diverse group of participants. Some underwent training in small groups or individually, while others participated in larger group sessions. The data was cross-referenced with information from active artists in similar regions gathered for other related projects. The students came from various educational backgrounds. Some trained at well-known international academies, and others at smaller brow education providers or with individual trainers. The results section of this article will discuss how the challenges faced by these emerging artists were influenced less by their educational background and more by other factors.

2. Perception Versus Reality


Many artists starting in the field believe they have done enough, or even exhaustive, market research before beginning their training. However, our research found a significant gap between this belief and the realities they later encountered. Over 84% of the students surveyed 12 to 15 months after certification reported that the business environment was "harder" or "much harder" than expected.

This highlights a notable phenomenon: despite their confidence in prior market analysis, many were unprepared for the real-world complexities of running a powder brows, hairstrokes, or microblading business. Confronted with everyday realities, they encountered challenges and complexities they had not foreseen.

Considering data from 2020-2022 and the economic downturn of 2024, the expectation-reality gap for newcomers in this field seems even broader. We conducted several smaller studies to explore this further. These studies indicate that while current students know the tough market, they may not fully understand its severity.

3. Observations about satisfaction


Only 26% Found Technical Preparation Inadequate

Surprisingly, only 26% of students cited "insufficient technical preparation" as the main reason for their struggles aligning expectations with reality in their new businesses. This does not necessarily indicate that training quality is uniformly high across various educational systems. Rather, it suggests that most students attribute their challenges to factors other than the technical skills gained from their training.

This finding also indicates that the issue may not lie in the technical training but in the mismatch between students' expectations and the actual demands of the industry. Often, trainers provide the necessary technical skills but fail to align students' expectations with the realistic earning potential in the market.

The data also points to a possible shortfall in trainers, conveying the challenges of attracting customers, especially those entering the pigmentation field from other careers. Trainers may not fully understand the reality of starting with no client contacts and the need for extensive marketing. Experienced trainers, used to some organic client engagement, might not grasp the silence a new artist could face.

For newcomers transitioning from other careers, this lack of organic interest might be their initial reality. More concerning is an ineffective sales funnel, often due to a lack of brand recognition and a strong portfolio, leading to acquisition costs exceeding what customers are willing to pay. This situation might be hard for experienced trainers to recognize, yet it's a common challenge for novices in competitive areas.

12 Months Post-Class: 70-85% Contemplate Exiting the Field

Alarmingly, 70-85% of students who completed training in powder brows, hairstrokes, and microblading considered leaving the field entirely one year after their classes. This wasn't due to dissatisfaction with the quality of education but disillusionment with the industry itself. Starting and maintaining a business in this field was much harder than expected.

Next, we will explore the specific factors behind this sentiment. Although the top three reasons varied by country, the core issues were consistent across different regions.

4. Overestimation of Inbound Business

v When comparing starting a business in powder brows, hairstrokes, or microblading to rowing a boat, the primary obstacle for many students was not analogous to turbulent waters or unfavorable weather. It was more like failing to reach the water to start rowing. In simple terms, many students couldn't apply their new technical skills in real-world scenarios.

Expectations Fueled by Perception Alone To further understand this, let's consider some figures. About 54% of the students had prepared a business plan before training, including sales forecasts. Yet, these forecasts were often imprecise and not data-driven. Many based their expectations on observations like, "other artists are always busy with clients." Such vague indicators are not a solid foundation for business forecasting.

Harshest Clash with Reality: Zero Inbound Business A major misjudgment by new artists was expecting some baseline level of inbound business, which starkly contrasted with reality. Having some business allows for fine-tuning based on customer feedback. Even a small influx of customers or leads offers chances for adjustments and improvements.

5. The "Zero to One" Dilemma


Many artists' struggles mirrored the concept in Peter Thiel's "Zero to One." They didn't understand how far they were from securing any business. After the initial "honeymoon period," often described by experienced artists, the inflow of business ceased entirely. No inquiries about their brow services left them clueless about generating leads. They faced a situation where minor adjustments were insufficient; a significant leap was needed to gain traction, often proving too high to achieve.

The challenge of moving from virtually no clients ("zero") to securing minimal viable business ("one") is more complex than it seems, especially in business planning. When customer inflow is minimal or non-existent, estimating the proximity to a break-even point and a viable business becomes almost impossible. Success in overcoming this varies greatly. In some cases, specific adjustments could lead to success. However, in other situations, factors like location and business climate might make profitability seem nearly unattainable. Thus, it's critical to recognize that achieving continuous profitability may require slight improvements, a complete overhaul, and a new approach.

Valuable Lesson: Plan for Zero Inbound Business

It's essential to prepare a business plan if you're considering training in powder brows, hairstrokes or microblading. This plan should assume zero inbound business. Treat any business that comes as a bonus, but plan for none. This realistic expectation sets a more measurable path to success.

6. Customer Acquisition Cost (CAC)


The Underestimation of Customer Acquisition Cost (CAC)

The concept of Customer Acquisition Cost (CAC) is crucial and was underestimated by students. They were aware of digital media marketing's necessity but grossly miscalculated the long-term costs for customer acquisition, often underestimated by about 100 times.

The Discrepancy: Expectations Versus Reality

This significant difference is a prime example of heuristic errors. Students expected a much higher response rate to their marketing efforts than what was realistically achievable. The number of people responding to marketing efforts was substantially lower than their expectations, indicating a need for artists to revise their customer acquisition strategies.

“Boosting Is Needed" vs. The Reality of Marketing Budge

t While aware of the need for advertising, many students did not accurately account for the costs of creating and running ads. The actual cost for acquiring leads often overwhelmed their modest marketing budgets. The causes for this discrepancy include the following.

  • Expectations Based on Hearsay. Many students' budget estimates were influenced by informal discussions or general statements from peers.
  • Outdated Calculations. Some students' experiences with social media advertising were based on older data, which did not reflect current market conditions.
  • Misjudgment of Social Media Capabilities. Most underestimated the effort and cost of organizing social media, comparing their new accounts to established ones, and assuming easier growth.

Drastic Miscalculations of Organic Growth

Additionally, students recognized a sharp decline in interest post the “honeymoon period.” They overestimated how quickly they could catch up with more established accounts regarding follower numbers, requiring much more time and budget than anticipated. Most did not consider that their competitors' accounts would continue to grow, further widening the gap.

Lesson to Learn: When planning to enter powder brows, hairstrokes, or microblading training, creating a detailed business plan is essential. This plan should include a forecast of zero inbound business. Any business that does come should be seen as a bonus, with no business being the default expectation.

7. Shallow Analysis of Competition


The third reason relates closely to the previous ones, focusing on students' significant misjudgments about competition. Notably, 63% of students were uncertain about their competitive edge, an issue with three interconnected aspects.

Misjudging the Impact of Pricing Strategies

This issue is linked to reaching an adequate audience. Over half the students (57%) believed they could find a price point, making their offer highly competitive due to its excellent price-to-value ratio. However, this was flawed, as marketing costs often negated any profits from lowered prices. It's crucial to remember that procedure costs go beyond the artist's time, including rent, supplies, transportation, marketing, and living expenses. The total operating costs often exceed income from client fees, requiring additional funding to sustain lower prices or discounts.

Underestimating Competitors' Adaptability

We mentioned earlier that students often underestimated how competitors adapt to market changes. Rather than maintaining the status quo, competitors dynamically responded to market conditions, contrary to many students' assumptions of static market conditions.

Misjudging Actual Market Prices

Students often enter the industry with an inflated perception of market prices. However, more in-depth research revealed that competitors' prices were, on average, 25-40% lower than the students had anticipated.

Hierarchical Cannibalization: A Hidden Challenge

A unique competition aspect is "hierarchical cannibalization." If a student's trainer operates in the same area (within about 120 miles or 1 to 1.5 hours' drive), they are likely competing for the same clients. Cannibalization is less likely if the trainer's price is significantly higher (over 120%) than the student's. However, it's almost inevitable if the prices are similar. This principle also applies to academy hierarchies, where artists in the same area with a higher status within the organization can cause cannibalization.

8. Takeaways and Lessons Learned


Creating promotions isn't always a direct route to profitability. These often require substantial upfront investment, implying that resources are invested rather than generating immediate income. One should never underestimate the adaptability of established competitors. Contrary to many new artists' beliefs, these established businesses can quickly adapt and aggressively protect their market share.

Additionally, many new artists have realized that competition may arise within their training ecosystem. Trainers and high-ranking artists within the same academy or geographical area can become direct competitors. This means they might indirectly hinder the success of the students they have trained by competing for the same clientele.

9. Conclusions



The data evidence that launching a successful career as a brow artist presents significant challenges. 84% of new artists underestimate these challenges, despite 74% believing they had adequately analyzed their situation. This indicates a widespread overestimation of their ability to assess market conditions and business opportunities accurately. Within a year, 75-85% of students, varying by background, have seriously contemplated quitting the business.

The primary challenges are a lack of inbound business, high customer acquisition costs, and intense competition. These issues explain why only 26% of students attribute potential failure to inadequate technical skills from their training.

Contrary to expectations, most students found little to no inbound business. They also significantly underestimated the costs of generating leads through social media marketing, with estimates being 1000% lower than actual costs. Over 90% are overly optimistic about the ease of organically growing their social media accounts.

A major oversight in competition analysis was overvaluing the impact of low-pricing strategies. Many students thought low prices would attract customers, only to find that marketing costs negated potential profits. Furthermore, they misjudged competitors' adaptability and pricing strategies. Internal competition or "hierarchical cannibalization" within training academies was another overlooked factor complicating market entry.
 
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Ulvi
Wednesday, Jan 24, 2024

Just very cool site I wanted to say. I AM a starting artist and already I have found so much useful and practical information!


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