How Much Do Estheticians Make With Their Own Business?

Many of us started our esthetician journey with two goals in mind: to own our own businesses and have free time. Few career paths offer such a seamless on-ramp into entrepreneurship. 

By branching out into working for yourself, you’ll have built a client base and developed a reputation. Once you go down this path, the rewards are many, and the potential earnings are limitless.

Before you hang out your shingle and go into business for yourself, you’ll want to look at the actual numbers. There are costs and other factors to consider that impact your overall earning potential. 

Let’s crunch the numbers and see what an esthetician can make running their own business!

Factors that can affect an esthetician’s income

Once you go out on your own, several factors affect your income. Some of them are within your power to change. Others, unfortunately, aren’t within your control.

Estheticians can expect income to flow from three different sources: wages, tips and commissions, and skincare product sales. 

Generally, estheticians make around $15 to $20 per hour in wages for 40 hours per week, from $2400 to $3200 per month. Add in tips, ranging from $20 to $35 per client, and you’re looking at another $1000 to $1750 per month. Medical estheticians earn commissions that average $400 to $1200 per month. 

Skincare product sales can boost your bottom line, too. Carrying an exclusive line drives customers to your spa and may even increase your client list.

The location of the business

Location, location, location! Where your salon is has a lot to do with your salary. If you’re in a geographic location where prices are high, you can charge more for your services. This varies from city to city and even state to state. Areas with a high cost of living also tend to have higher incomes. But this is true for areas with a lower cost of living, too.

Beyond that, the physical location of your spa can affect foot traffic and new clients who discover your business.

Prime locations are great for attracting new clients but come with a comparable price tag. You’ll pay more in rent for a primo spot. It’s up to you to capitalize on your location to minimize the cost’s impact on your profits.

Services provided affect potential income

The next factor that impacts your ability to grow your business is the services you provide. Facials and hair removal don’t command as high a price as specialized medical spa treatments. Once you’ve invested in advanced training and equipment, high-end skincare services can increase your bottom line.

Another factor to consider is scarcity. You'll attract more clients if you’re the only esthetician to provide a specific skin treatment in your area. Before opening your own business, do market research to determine the most in-demand services.

Your experience level and expertise

Esthetic services are highly dependent on the skills of the provider. When you first start in the business, you’re developing your toolkit and learning. As you continue to develop, you’ll see that you can begin to increase your prices. 

Your loyal client base will be happy to pay more for the services they’ve come to trust you to provide! 

Effective marketing and employee management

You could have the spa of your dreams, but you're out of luck if clients don’t know how to find you. 

Effective marketing is essential in growing your own business. You can include everything from email marketing to social media in your approach. The benefit of these platforms is that they help you build a trusting relationship with potential clients. Also don’t forget to encourage your loyal clients to refer your business to others. 

When you’ve reached a point where you’re ready to hire employees, that can also affect your income. Make sure you’ve got a process in place for onboarding new esti’s. They should know your customer service philosophy and be ready to support your growing business.

Additionally, you should decide if they’re renting space or working for you.

Customer retention is important for a growing business

Estheticians are in the business of customer service, and a good reputation goes a long way. It’s an essential skill for any small business owner, but when you’re working up close as we do, you need to know your stuff! For your salon or medical spa to thrive, you need to build trusting relationships with your customers.

Before heading out alone, you probably spent several years developing a loyal client list. In fact, that’s probably what gave you the confidence to embark on this journey in the first place. Make sure that every person who comes through your door receives the same quality of service. 

When they leave, they should be thrilled with how they were treated and be willing to recommend you to others.

The most common challenges estheticians face regarding income

Aside from these factors, estheticians face some common challenges when trying to build a reliable and growing income. Here are some of the best ways to work with these unavoidable hurdles.

The cost of supplies and renting 

Before you can open your doors, you’ll have to consider your relationship with supplies and equipment. Some are necessary for your services, while others can boost your bottom line.

Every esti needs basic supplies like a facial chair or table and necessary equipment for specialized treatments. If you provide Hydrafacials or laser hair removal, you can rent a device rather than purchase your own. Renting is a more affordable approach, especially when you’re first starting.

An important service estheticians provide is education. Teaching your clients which products can enhance the health of their skin is part of the job. Stocking the products you want your clients to use in your shop can help your bottom line. Just make sure you don’t over-order, or you could be left with extra product!

Learning to balance a budget

If looking at numbers makes your head spin, we hear you! But keeping a balanced budget can make or break your business. Learn how to use accounting or bookkeeping software to keep up with revenue and expenses. This way, you can make the most out of your funds and track where you can cut losses in the future.

And if you just don’t have time to do it yourself, hire an accountant.

The esthetics business is competitive

Likely, one of the first things you noticed when you joined the profession is that esthetics is competitive. While there’s no shortage of clients, carving out your place in the industry takes some grit. However, the more you put into building a successful business, the more you’ll get in return!

Keep your license current by focusing on CEUs that help you run a better business.

Follow new trends and keep up with them

Esthetics is a constantly evolving industry. Keeping up with innovations and trends will help your business thrive! Invest in training for you and your team to regularly add new treatments to your offerings.

As important as it is to work with new ideas, remember that your relationship is with your clients. Build your business around an authentic ethos, and you’ll see return clients who trust you.

When starting an esthetics business, come to Bosses in Beauty to maximize your profits!

When you’re building a new business, it pays to have someone in your corner. Bosses in Beauty turned a one-woman show into a million-dollar business, and you can too! On our site, we have resources for estheticians in every stage of their careers, and we’re here to help.

Bosses In Beauty is here to provide the best education and information to current and future estheticians around the globe.