Business Forecasting Help

Hello, I’m needing some information for my business plan. Realizing fully that everyone here is most likely operating in a different market than myself, I’m still hoping to get some information for forecasting just for a very rough estimate. Any feedback is greatly appreciated as I don’t know any Electrologists in my city! I will be renting space out of a spa initially which is located within an affluent residential community within a large city.

  1. What is the seasonality of this business? Busiest months of the year? Slowest months?
  2. After one year of operation, what would be a reasonable expectation in number of regular clients to obtain. What was your experience in your business after one year, two years?

Thank you!

Seasonality will depend on your location, how long you’ve been in business, what your work ethic is like and the type of clientele you cater to. I’m almost 2 years in, I work 6 days/week, 9 hours/day minimum, even back when I started and I had nobody coming in.

Where I’m at, we have to deal with cold and snow. Mixing my own experience with that of other local electrologists I know, in mid-late February through early March, people have this sudden realization that summer is coming and they want to be hair free, this resulted in 28 new people last March. From March until September, it’s basically a sprint of busy-ness. September comes and, between summer winding down and kids going back to school, people need to adjust schedules, so sometimes things fall off a little for September and October. November, things pick up again since we have all the family holidays coming up and people don’t want to deal with their hair all the time. New Years hits, people realize that the family holiday stretch is over and it is cold, really cold, and they don’t want to go out, so January and February slow down again.

Short version: September, October, January and February are the slowest months… until you get to the point where you’re in demand enough to stay busy year round.

Which gets me to my next point… my first year pretty much followed that pattern perfectly while I built up a client base from scratch, without the benefit of being in a salon, or even in a retail store front. I’m buried in the basement of a mixed use office building with minimal exterior signage. The first 6 months were pretty tough. Through dedication, hard work, strategic marketing and doing a very good job of actually practicing electrolysis, by the time I was a year in, I had about 70 clients and was averaging 20-30 hours of paid work per week.

Flash forward another year and I have more clients than I know what to do with and I’m working 60-80 hours per week. I never slowed down last fall, in fact, I kept gaining more clients and hour. We finally got a taste of winter 3 weeks ago, and business has dropped in half because of it, but I already have 40+ hours booked for next week, with appointments booked as far out as the end of March.

All of that said, I’m not the typical electrologist that just works on grandma’s chin hair or maybe does someone’s brows here and there. There are plenty of electrologists that just do that, and are relatively successful, but they’re going to expect to see those clients every 2-6 weeks at most, with a fair number of them losing interest once they see that it’s going to take some dedication and isn’t going to be a “one treatment and done forever” thing. Rather, I’d say that 60% of my work is the dirty, gritty, big project stuff that nobody else around here wants to do because it’s just too much work for them - transgender faces, male backs, paradoxical laser hypertrichosis messes, full bodies, etc.

Take tomorrow, I have 1 hour on a trans face, 1 hour on a cis female that was rewarded with a full beard from laser, 2 hours on a trans face and surgical prep, 4 hours on a cis female doing her entire body, and finishing with 5 hours on another cis female that had laser growth on her face that is also wanting her full body done (that likes my work so much, her family members from another state come to see me since I’m better than the electrologists they tried there - and in fact, one of them just booked 2 full days in March). Yes, that’s a 13 hour work day for me with no lunch break scheduled, since I gave it up to someone at the last minute. My location is actually an advantage there, because my clients don’t have the pressure of having to appear in front of all the pretty people in a spa.

I recognize that most people don’t want to work that hard… but I told myself I would do whatever it took to make it work the first couple years. Now I’m at the point where I’m going to be expanding and taking on a second person to work for me, so I don’t have to work so much and can begin enjoying the results of all that work. I’m probably pretty atypical with how quickly I established and grew my business, but it shows you the type of potential that is there.

As far as writing your business plan goes, be far more conservative than that… and realistically, take whatever revenue you think you’re going to do that first year, and cut it in half again while also realizing that your expenses are probably going to be 10-20% higher than what you thought they were going to be. Don’t plan on paying yourself much, if anything, the first 6-12 months and, even when you can start paying yourself, pay yourself what you need to survive while reinvesting as much as you can back into the business.

Don’t waste money on print advertising unless you recognize it for what it is - a way to build familiarity with your business that might, maybe, months down the road, bring someone in because they “heard of you somewhere” before. DO offer free consults, referral credit, etc. Network. Forget what you were taught in school and be willing to experiment to find what works best for you - try different probes, modes you don’t normally use, etc.

I don’t what to say, thank you thank you thank you!!! This is so extremely helpful! Thank you so much. By the way, which machine do you use?

Due to my limited startup funds, I bought a Senior 3g. I’m planning on moving to a Platinum soon (I don’t care for the interface of the XCell, even if it’s a fine machine otherwise).

Thank you! The three you mentioned are the ones I’ve narrowed it down to.

Hi EmancipatedElectroly and thanks for your very informative response to Newby 79!

I am currently going to school in New York to be an electrologist and plan on moving down south after graduating to open my own shop. Like Newby 79, I am writing a business plan and was hoping that I could ask a few additional questions regarding your response?

  1. Did you get your experience as an electrologist working somewhere before you went out on your own or did you go right into your own business?

  2. When you worked six days a week (9 hours minimum), was your time just spent on strategic marketing (free consults, referral credit, networking and experimenting)?

  3. Were there other marketing methods/tools you used?

Thank you again for your post and sharing your knowledge and expertise - I will be implementing all of your advice to Newby 79 into my business plan too!