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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Esthetician Business Profitable?

The profitability of your Esthetician business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Esthetician business. 

Esthetician Industry Prospects

The global esthetic market is expected to exceed more than $19.4 billion by 2023, growing at a CAGR of 12.2% in the forecasted period (skininc). Additionally, the global aesthetic medicine market size was valued at $127.11 billion in 2023 and is projected to grow at a CAGR of 14.9% from 2024 to 2030 (grandviewresearch). The market is anticipated to experience substantial growth, driven by factors such as growing awareness among consumers, the health benefits of medical esthetics procedures and advancements in laser technology. The data indicates significant market value and anticipated growth for the global esthetician business in 2023.


  • Commercial Space Purchase or Improvement: If you’re buying a space rather than leasing, or if you need to make significant improvements to a leased space (with the landlord’s agreement, which might be considered leasehold improvements).
  • Professional Equipment: Investment in professional-grade esthetic equipment such as facial steamers, microdermabrasion machines, LED light therapy devices, treatment beds and chairs.
  • Interior Fit-Out and Furnishings: Costs for fitting out your space with the necessary furniture, including waiting area seating, reception desk, product display shelves and storage units.
  • Initial Product Inventory: Purchase of initial inventory for products you’ll be using during treatments or selling directly to customers, such as skincare products, cleansers, toners, masks and creams.
  • Technology and Software: Investment in business management software for scheduling appointments, customer management, sales and possibly digital skin analysis tools.
  • Signage and Branding: Costs associated with creating and installing exterior and interior signage, as well as other branding materials.
  • Security Systems: Installation of security systems including cameras, alarms and possibly access control systems for after-hours security.
  • Point of Sale (POS) System: Purchase of POS systems for processing customer transactions, which may include computers, tablets, card readers and receipt printers.
  • Renovation and Building Upgrades: If your space requires renovations or specific upgrades to meet local health and safety standards for an esthetician business, including plumbing for sinks in treatment rooms.
  • Licenses and Permits: While not a huge cost relative to others, obtaining the necessary business licenses and permits to operate legally in Omaha may require upfront fees.
  • Professional Training and Certification: If you or your staff need additional certifications or advanced training specific to certain treatments or equipment you plan to offer.
  • Marketing and Website Development: Initial costs associated with developing a professional website, online booking system and initial marketing campaigns to launch your business.
  • Insurance Premiums: Initial premiums for necessary insurance coverage, such as liability insurance, property insurance and professional indemnity insurance.

Investing in high-quality equipment and a well-designed space can significantly impact your business’s success, attracting and retaining customers. It’s essential to research and select equipment and products that align with your services and target market. Also, consider consulting with a financial advisor to ensure you cover all necessary expenses for a successful startup and to help plan your budget effectively.


  • Facial Treatments: This is a core service offering for any esthetician business. You can offer a range of facials tailored to different skin types and concerns, such as hydrating, anti-aging, brightening and acne treatments.
  • Specialized Skin Treatments: Include services like microdermabrasion, chemical peels, LED light therapy and micro-needling. These treatments often command higher prices due to their specialized nature and the cost of equipment.
  • Hair Removal Services: Offering various hair removal services, including waxing, threading and possibly laser hair removal, if you have the certification and equipment.
  • Makeup Services: Providing makeup application services for events, weddings, or special occasions can be a significant revenue source.
  • Body Treatments: Expanding your services to include body treatments like body wraps, scrubs and massages can attract a broader clientele.
  • Product Sales: Selling skincare products, including cleansers, moisturizers, serums, sunscreens and other skincare essentials, can provide a substantial revenue stream. You can stock products used during treatments, encouraging clients to purchase them for their home skincare routine.
  • Membership Programs: Offering a membership program where clients pay a monthly fee for certain services at a discounted rate can ensure steady revenue and client retention.
  • Packages and Gift Certificates: Creating service packages or bundles at a discounted rate can encourage clients to try more services. Selling gift certificates, especially around holidays and special occasions, can attract new clients and increase revenue.
  • Consultation Fees: Charging for in-depth skin consultations can be another revenue source. These consultations can be applied toward the purchase of services or products.
  • Online Sales: If you have a website, offering online booking and product sales can broaden your revenue streams beyond your local area.
  • Workshops and Events: Hosting skincare and beauty workshops or private events can attract new clients and generate additional income.
  • Loyalty Programs: Implementing a loyalty program that rewards clients for repeat visits and referrals can increase client retention and encourage more frequent visits.

To maximize these revenue sources, it’s crucial to maintain high standards of service, stay updated on industry trends and regularly assess and adjust your offerings based on client demand and feedback. Marketing plays a vital role in promoting your services and products, so investing in effective marketing strategies, both online and offline, will be key to attracting and retaining customers.

Cost of Services Sold

  • Product Costs: This includes the cost of skincare products used during treatments (facials, body treatments, etc.) and products sold to customers. These costs vary directly with the number of services performed and the volume of product sales.
  • Supplies: Disposable items used in treatments, such as gloves, cotton pads, gauze, disposable applicators and masks. Like product costs, these expenses increase with the number of services provided.
  • Equipment Wear and Tear: While the purchase of equipment is a capital expenditure, the maintenance and eventual replacement due to wear and tear are considered part of the cost of services. This might include replacing parts, repair services, or purchasing small equipment items that have a shorter lifespan.
  • Utilities Usage for Services: Additional costs for water, electricity and gas that are directly associated with providing services. For example, the use of steamers, lighting during services and laundry for towels and linens.
  • Laundry and Cleaning: The cost associated with cleaning linens, towels and uniforms used during services, as well as cleaning supplies for maintaining a hygienic environment. These costs will vary with the number of clients served.
  • Commission Fees: If you pay your estheticians or sales staff on a commission basis for services performed or products sold, these costs vary directly with revenue.

It’s important to carefully track these costs to accurately calculate the gross profit for your business. Understanding your cost of services will help you set prices appropriately, identify areas where you may be able to reduce costs and improve the overall profitability of your esthetician business.

To manage these variable costs effectively, consider strategies such as negotiating better rates with suppliers as your volume increases, maintaining efficient inventory levels to reduce waste and implementing energy-saving practices to lower utility costs. Additionally, training staff to use products efficiently can help minimize waste and reduce costs.

Operating Expenses

  • Rent or Lease Payments: Cost for leasing or renting your business space. This is a fixed cost that does not fluctuate with the number of services provided.
  • Utilities: Monthly expenses for electricity, water, gas and internet that are not directly tied to service provision. Unlike the portion of utilities considered under the cost of services, these are the baseline costs of keeping your facility operational.
  • Salaries and Wages: Payments to employees who are on a salary, including front desk staff, managers and possibly estheticians, if they are not paid on a commission basis. This also includes any benefits you provide to your employees.
  • Insurance: Premiums for various types of insurance, such as liability insurance, property insurance, workers’ compensation insurance and professional indemnity insurance.
  • Marketing and Advertising: Costs associated with promoting your business, including digital advertising, print ads, social media marketing and promotional materials.
  • Software Subscriptions: Ongoing costs for software used in the business, including appointment scheduling software, customer relationship management (CRM) software, accounting software and any other specialized software needed for business operations.
  • Office Supplies: Expenses for office supplies like paper, ink, pens and other miscellaneous items needed for the administration of your business.
  • Professional Services: Fees for services provided by accountants, lawyers, consultants and other professionals.
  • Repairs and Maintenance: Regular maintenance and any necessary repairs of the business premises that are not directly related to the equipment used in providing services.
  • Taxes: Various taxes that the business needs to pay, excluding those directly tied to sales, such as property taxes and business licenses.
  • Training and Education: Costs associated with ongoing education, training and certification for you and your staff to stay current on esthetic techniques and business practices.
  • Travel and Entertainment: Expenses related to business travel, client entertainment, or attendance at industry events, if applicable.
  • Depreciation: While not an out-of-pocket expense, depreciation of fixed assets (like equipment and improvements made to the lease space) is considered an operating expense for accounting purposes.
  • Loan Payments: Interest payments on any business loans (the principal repayment portion is not considered an operating expense).

Managing these operating expenses effectively is crucial for maintaining the profitability of your esthetician business. Regularly reviewing and optimizing these expenses can help you identify areas where you can reduce costs without compromising the quality of your services or the operational efficiency of your business.

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