Cost of getting started - “Money In” budget approach

2. Different mentalities

Classic approach to budgeting

When it comes to composing the budget and overall approach to costs, most starting artists make a crucial mistake - they start spending money before they have earned something. That may sound normal and the only viable way to approach the Powder Borws businesses and start a career as a PMU artist in general, but that is not the case with the most successful artists. On the contrary, their approach has been diametrically different - they make the initial investments from the money that the prospective clients pay them.

“If you build it, they will come.”

There is a lesson to be learned from an inspiring move, and please bear with us and give it some thought. Nothing is worse than making investments before knowing if you will ever get your money back, following the distorted approach of “If you build it, they will come.” Let us explain.

The movie "Field of Dreams" quote is, "If you build it, he will come." In the film, this mysterious phrase is whispered to the main character, Ray Kinsella, played by Kevin Costner. Ray hears this voice while walking through his cornfield, inspiring him to build a baseball diamond on his land despite the risk of financial ruin.

This quote has often been interpreted and used metaphorically in various contexts, including business. In its original context, it suggests a leap of faith, the idea that if you create something with passion and belief, the necessary people (in the movie's case, the ghost of Ray's father and other legendary baseball players) will be drawn to it.

However, applying this concept to business can be problematic. It implies that simply creating a product or starting a business will automatically lead to its success – that customers or clients will come just because you built it. This can be a distorted approach in a business context because it overlooks the crucial need for market research, demand analysis, and strategic planning.

In real-world business, it's risky to make significant investments or dedicate time and energy to a product or service without first understanding if there's a market demand for it. Business success often requires more than just passion and belief; it requires understanding your target demographics. Having a solid business plan and adapting to market needs and changes. Hence, while the quote can be inspiring, it should be interpreted cautiously in a business setting, recognizing the importance of practical and strategic planning.

Strategic approach to investments

As a novice artist, you may have the flexibility to make various investments, potentially even securing credit for this purpose. However, it's important to recognize a common misstep among many beginners who ultimately do not succeed. They often envision their journey as a linear progression: first making substantial investments and then, once these are complete, considering themselves "ready" to enter the market and attract clientele. This approach, unfortunately, tends to be sub-optimal and, in many cases, dangerously naïve.

Contrastingly, a more effective strategy, as many successful newcomers share, revolves around a critical question: "Does this expense directly contribute to attracting business?" This perspective is vital when starting. Each potential expenditure should be scrutinized through this lens, enabling you to compile a prudent and essential list of initial investments. In the following sections of this article, we will apply this discerning approach to different components of the initial budget, helping you make strategic choices that align with your business goals.

3. "Money In" and "Money Out"

When devising budgets for aspiring Permanent Makeup artists, it's imperative to distinguish between critical and optional expenditures. Our approach entails two distinct budgets: the "Money In" budget and the "Money Out" budget.

The "Money In" Budget

This is the foundational budget focused on investments directly contributing to acquiring customers and establishing your business. Consider it a frugal yet targeted budget designed to lay the groundwork for your PMU enterprise. The emphasis here is on essential items that are indispensable for kickstarting your operations and generating initial revenue.

The "Money Out" Budget

Contrarily, the "Money Out" budget encompasses expenses that, while beneficial, are not imperative for the initial phase of your business. These investments can enhance your practice but are not crucial early. This budget includes items that are “nice to have” and can be considered once your business is more established or when you have more financial flexibility.

Both budgets are crafted based on the expertise and experience of successful PMU artists. Their recommendations and insights have been tested and validated in real-world scenarios, ensuring that these budgeting strategies are not only practical but also proven to be effective. This dual-budget approach allows for a balanced perspective, helping new artists make informed decisions about allocating their resources for maximum impact.

4. Money In - sample budget: $3,000

Overview of Initial Investment

In analyzing the essential costs for launching a successful powder brows business, we consistently arrive at a total figure of around $3,000. You should have this amount on hand to start generating income in this field. While there is some room for optimization, insights from numerous successful artists indicate that excessive cost-cutting can be counterproductive.

Allocation of the Budget

Most of this initial budget is allocated towards professional training, which is crucial for acquiring the necessary skills and certification. The remaining portion (approximately 40-50%) is dedicated to acquiring the essential tools and supplies required to offer powder brows services effectively. This includes everything from sterilization products to the PMU machine itself.

Importance of Strategic Investment

Each item on this list plays a pivotal role in facilitating the flow of income. Many artists have successfully established their powder brows businesses by adhering to this budget. It's important to understand that these investments are not mere expenditures but strategic steps toward building a profitable and sustainable business in the field. Next, let us see a concrete breakdown of the initial budget.

Training ($1,500 - $2,000)

Training is the most crucial expense for two key reasons: the invaluable learning experience from the trainer and the certification you receive. This topic is explored additonally in many articles on the powderbrows.com platform. It’s important to note that this is not an area to skimp on financially. Estimated cost: $1,500 - $2,000.

Additional Essential Items

Here are the other necessary items, listed in alphabetical order.

Alcohols. For sterilizing the skin area and stronger alcohol for disinfecting work surfaces. Cost: $25.
Baby Wipes. For cleaning the artificial skin and then the actual brows of the client. Cost: $20.
Budget for the First Boosts on Social Media. Allocating funds for initial marketing on social media. Cost: $200.
Cable Wrap. For organizing and securing machine cables. Cost: $20.
Chat GPT Subscription. Subscription to the paid account of Chat GPT 4 for assistance in various tasks. Cost: $20.
Cling Film. Used to cover and protect the treated area after the procedure. Cost: $15.
Cohesive Bandages (Grip to Wrap Pen). For a comfortable grip on PMU pens. Cost: $15.
Cotton Pads. For applying cleaning and numbing agents on the skin. Cost: $15.
Cotton Swabs. Useful for precise application or removal of products. Cost: $15.
Disposable Gloves (Nitrile). Essential for hygiene and protection against cross-contamination. Cost: $20.
Domain Name. A “.com” domain for the brow business, accessible via brandsnap.ai. Cost: $15.
Eyebrow Brushes. For grooming and shaping eyebrows before the procedure. Cost: $10.
Eyebrow Crayons. For outlining and shaping the eyebrow area before applying pigment. Cost: $15.
Facebook Business Account. Required for Instagram boosts and online presence. Cost: Free.
Golden Ratio Compass. Used for mapping brows, if applicable. Cost: $25.
Instagram Account. Ideally with the same brand handle as the domain name. Cost: Free.
Hand Mirror: Allows clients to view and approve the pre-drawing layout. Cost: $10.
Logo for Brow Business. It can be created using free software like Wix Logo Creator. Cost: Free.
Mapping Rulers-Stickers. Tools for achieving symmetrical and precise eyebrow designs. Cost: $15.
Needles (Recommend 1RL 0.35). Used in the machine for depositing pigment. Cost: $100.
Pencil for Predrawing. For sketching the initial design. Cost: $25.
Pigment Rings or Cups. Preferably silicone to avoid numbing the needle. Cost: $15.
Pigments. Preferably mineral, inorganic, or hybrid with an inorganic base. Cost: $150.
PMU Machine. A wireless, lightweight, high-stroke (3.0-3.5mm) machine is compatible with universal cartridges. Cost: $150 - $200.
Pointed Cotton Swabs. For more precise application or correction. Cost: $15.
Practicing Skin. Essential for extensive practice on latex and artificial skin beyond training requirements. Cost: $100.
Professional Profile Pictures. For marketing and online presence. Cost: $100 - $150.
Razor to Sharpen Crayons. Maintains the precision of eyebrow crayons. Cost: $5.
Retoucher. For professional touch-ups of portfolio photos. Initial prepayment cost: $50 - $100.
Skin Numbing Gel. High-quality topical anesthetic. Cost: $50.
Skin Butter and Boosters. For preparing the skin for more effective pigmentation. Cost: $25.
TikTok Handle. Ideally, the same as the domain name. Cost: Free.
Tissues. For general cleanup and blotting. Cost: $10.
Website Subscription. For an online presence via platforms like Squarespace, Wix, or Webflow. Cost: $15.
White Pencil for Predrawing. For initial sketching on various skin tones. Cost: $10.

The average total for the "Additional Essential Items Budget” $1,300.

Money Out budget

This segment of the budget covers expenditures that should be considered once you've started to attract clients and are ready to expand your services. It can be referred to as phase two investments.

Aftercare Products (calming skin creams). Initially, you might recommend readily available products like coconut oil. As your business grows, investing in specialized calming skin creams for aftercare becomes a thoughtful addition to your services. In the second phase, Some artists ordered a cream with their brow business logos.
Bed Roll. A protective covering for the treatment bed, enhancing hygiene. This becomes a necessity when you invest in your treatment bed.
Disposable Bed Covers. Single-use covers to maintain a clean and hygienic work area. These are essential once you have your treatment bed.
High-End PMU Machine. Upgrading to a more advanced PMU device for implanting pigment can enhance the quality of your services.
Power Supply (if needed for your machine). Ensuring that your PMU machine operates effectively is critical when upgrading your equipment.
Ring Light Lamp. It provides optimal lighting, crucial for precision in procedures, especially as you handle more complex cases.
Saddle Stool on Wheels. A comfortable and mobile seating option becomes important as you settle into a permanent workspace.
Sharps Bin. Necessary for the safe disposal of used needles and other sharp objects, especially in a fixed service location.
Tray on Wheels. A mobile tray is convenient for efficiently organizing and accessing tools in a steady workplace.
Treatment Bed. Investing in a quality bed or chair for client treatments is vital when establishing a dedicated space for your services.

5. Strategy Explained

Irrelevance of Physical Location

In 2024, the significance of a physical location for a pigmentation artist has greatly diminished. The era when a prime spot in a busy city center guaranteed constant business for powder brows is over. Several research projects focusing on the importance of physical location have repeatedly confirmed this. Therefore, one of the least advisable actions for a starting artist is to take on the substantial fixed cost of renting a salon.

Next, let us explore the basic strategy of getting started in five easy-to-follow steps.

Step One: The Brand

Creating a distinct brand name and identity is foundational. Successful artists start with this as it makes a significant difference, even when approaching initial model candidates for free or low-cost services. The modern strategy involves searching for an appealing brand name and a free domain using services like brandsnap.ai. Additionally, artists should register a domain name with their first and last name, redirecting it to their brow brand page.

Step Two: Professional Logo and Website

Successful artists have utilized platforms like Squarespace, Wix, Webflow, and free logo-making tools to create professional-looking websites featuring their brand's logo. They typically use retouched versions of model photos taken during training. With professional retouching services, artists send their best pictures for touch-ups, paying around $5 on average for high-quality, magazine-level results. Website text is often generated with the assistance of Chat GPT 4, using various texts from other artists’ sites as a basis for AI-enhanced content.

Step Three: Portfolio and Accounts

To avoid appearing as "starting artists," successful professionals have strategically approached model candidates, offering services for free or a minimal fee. This approach is also applied to photographers, exchanging services for professional photos or using service gift cards as a form of "currency". This strategy has shown an excellent success rate.

Step Four: Social Media Promotion

With a collection of 20-30 professionally retouched photos, artists can ensure their social media accounts (Instagram, TikTok) are attractive. It's common to generate multiple pictures from a single model session. Some artists opt to buy a small number of followers to establish their presence. While scrutiny over this practice is often exaggerated, it can be a practical option, especially compared to starting with a minimal following. Artists then boost their initial promotions, offering discounts of 40-60% off original prices. This approach, coupled with a professional-looking brand and a solid online presence, typically attracts many model candidates.

Step Five: Deals with Salons

Once model candidates are secured, artists often propose a booking fee, suggesting collaboration with various salons to determine the best service time and location. Deals with salon owners usually involve renting a bed for a day or paying per procedure. This method allows artists to test different salon environments and continue building their brand and portfolio. Many artists eventually transition to setting up their "first studio" at home or negotiate better deals with salons. After building a client base and brand for at least 6-12 months and observing consistent growth, renting a personal studio is considered.

This strategy outlines a phased approach to establishing a successful PMU business, prioritizing brand building and strategic investments.

6. Conclusions

Reframing the Overall Philosophy

The age-old adage "if you build it, they will come" may hold romantic appeal, but this approach is often inadequate in the practical world of Permanent Makeup (PMU) business. Success in this industry is not a mere consequence of setting up shop; it hinges on strategic planning and a thorough understanding of market demand. The essential philosophy for aspiring PMU artists is to prioritize investments that directly contribute to attracting and retaining clients. This mindset involves meticulous budgeting, focusing on expenditures that yield tangible returns regarding client acquisition and business growth.

"Money In" and "Money Out" Budgets

Effective financial planning in the PMU business can be segmented into two primary categories: the "Money In" and "Money Out" budgets.

"Money In" Budget. This is the foundational budget, encompassing critical expenses necessary for launching and establishing your PMU business. This budget includes crucial costs like professional training and essential tools and supplies. With an average total investment of around $3,000, this budget is geared towards activities and resources that are indispensable for starting to generate income.
"Money Out" Budget. Contrasting the "Money In" budget, the "Money Out" budget is reserved for later-stage business investments. These expenditures enhance the quality and scope of services once the initial client base is established. This includes high-end PMU machines, advanced treatment beds, and additional comfort and convenience tools for the artist and clients. These investments, while valuable, are not immediately critical for the initial stages of business development.

Five-Step Action Plan for Getting Started

Brand Development. The journey begins with creating a unique brand identity, including a catchy name and domain registration. This step is crucial for setting yourself apart in a competitive market.
Professional Online Presence. Leveraging tools like website builders and free logo creators, artists should establish a professional online presence. This includes a well-designed website and retouched images of initial work, often enhanced through AI-assisted text generators and professional photo retouching services.
Building a Portfolio. This involves strategically approaching model candidates for portfolio development, offering services at minimal costs or in exchange for professional photography services.
Social Media Strategy. With a solid portfolio, artists should focus on building their social media presence, utilizing platforms like Instagram and TikTok. The initial boost can include strategic follower purchases and promotional discounts to attract a broader client base.
Collaborations and Expansion. Finally, establishing collaborations with salons and negotiating rental deals or per-procedure payments allows for a gradual expansion. This step is pivotal in transitioning from a home-based setup or temporary arrangements to a more permanent studio space.

Thus, the journey to establishing a successful PMU business is a calculated blend of strategic financial planning, effective marketing, and gradual expansion. By following these guidelines, aspiring PMU artists can rise above countless others who still sadly demonstrate their monumental naivety by employing the approach of “if you build, they will come”.