Personal Service Business
The Personal Service Business segment offers tailored guidance for starting businesses like salons, fitness studios, and other service-based ventures, focusing on customer engagement, licensing, and business growth strategies.
phase: planning
Step One: Research & business plan
Conduct market research to understand the demand for your personal services, whether it’s beauty, fitness, wellness, or another service. Identify your target audience, competition, and pricing structure. Develop a detailed business plan that outlines your services, marketing strategy, operational approach, equipment needs, and financial projections.
Tasks
Lessons Learned: Step One
Read Full Transcript — Step 1
What inspired us to start our business was we had this natural connection from Costa Rica where our mom is from where our dad was already kind of drinking a certain type of coffee and bringing it home every 6 months. Once 2016 hit, my dad had already had a u online business that he had started for his uh hobby. We kind of just sat there and talked and brainstormed how we can bring more of this delicious coffee back to the United States. So that's when we decided to start Plaza importing the coffee that was pre-roasted to um our house and selling bags of it.
Uh after that we just naturally progressed into pivoting into different types of uh businesses. We then started doing our cold brew, then looked at retail, and then finally came into like a full-blown cafe. The construction was an idea that my husband had. He kind of just got into it.
He had done some construction in in the past, but when he wanted to become a business owner, that was what naturally kind of came. He started that that business and it kind of hit. It took off. It did really well and we've been doing it since officially since uh 2019 and it and it's been going well.
and the super marcado. This was actually the initial business idea that um my husband wanted to start and that we're talking years ago um he saw a need in our community to have something like this. And as the Hispanic population continued to grow um and as the years went by, we saw that um there still wasn't some this concept here in Battle Creek uh super meal of this this size. And so in 2023, September of 2023, we decided that since the construction business was going well and we were able to invest in another business that we were going to go through and and do the super meal.
So we conducted market research by canvasing the community of Battle Creek to just kind of see what kind of event venues was out there, what they were doing, what they offered, who were they marketing to. So within our research, we came across an opportunity to market to Battle Creek area, more of the north side of Washington Heights. Um partic particularly people of color for sure to be able to have a place that they can come to and uh celebrate, have events. I actually was able to work with the Small Business Development Center out of Western Michigan University.
They were a great source and a a great help to walk me through the steps of writing, which was my first business plan. That was a great resource for me to help with anything that I liked and um knowing what to include all in my business plan. Yes, we have a friend who actually connected us with the consultant um that helped us with the the business plan. So, I put something together and the consultant uh helped us think a little bit further on things that we could add, things that we should take out.
Uh kind of proofreading it and putting a final piece together.
phase: planning
Step Two: form your entity
Choose a legal structure for your personal service business, such as an LLC, sole proprietorship, or corporation. Register your business with state and local authorities, obtain a tax ID number (EIN), and secure any necessary licenses or certifications specific to your services, such as cosmetology or massage therapy licenses. Set up a commercial bank account. Properly insure the entity, property, and equipment.
Tasks
Lessons Learned: Step Two
Read Full Transcript — Step 2
We are an LLC uh as it pertains to the state uh and business-wise. On a tax formation side, we are an escorp. Uh we chose LLC um honestly because we were kind of told we should. We wanted to separate our personal liability from our business liability.
Uh and so we kind of just did it. um didn't really have uh that much knowledge on what it meant. Uh then we got linked in with a uh accountant and that's where we were told if you want to pay yourself as an employee you could save some money on on on taxing and taxes if you are an escorp. Uh I would still recommend always talking with your accountants and planning this ahead of time.
Um as there are some benefits to being an S corp or a C corp or just a partnership that are longevity wise like if you're trying to sell your business apparently uh you want to stay within an LLC or a corporation. Yeah. So always always lean on your adviserss. I chose an LLC.
We are an escort, however, and that is based off of what our CPA recommended. So, um, we want to make sure that our personal finances are separate from our business finances, um, for liability purposes. How do we make sure that our business stays in compliance with local and state regulations? Uh, well, for our health department license, we get inspected every 6 months.
Um so there's obviously a mechanism in place that holds us accountable to make sure that we are maintaining our legal status. Uh and then with the other um aspects of regulations, we really lean on our adviserss like our accountants and our lawyers um to make sure that we are uh on the right track. Other than that, honestly, just going to their websites, Laura, the health department, and and doing the research yourself is how you find out. our Michigan um state websites are really great because they you can sign up for notifications.
So um you get emails when um things are due or things are coming up and then um it's also a really good idea to have a business um calendar so you can mark those dates and know what's coming up. So you know a liquor license if that expires in March but your retail license doesn't expires in January. You have to be aware of those dates. So putting them on a business calendar and then signing up for those state notifications is always a great idea.
It's imperative to make sure you seek out professional help around aligning proper business etiquette and making sure your business is running properly. Reaching out to uh accountants, reaching out to financial advisors, uh you know, reaching out to local banks to strategize on how you're going to um you know, document certain dollars. It it takes a a community in a whole um as far as the services that support businesses. It's very imperative to make sure you are co-creating with each one of them around make sure your business is thriving and successful.
phase: location
Step Three: choose your location
Determine where you’ll operate your business—whether it’s a physical studio, a home-based occupation, or mobile services. Consider factors like accessibility for clients, parking availability, and the atmosphere needed to create a welcoming environment for your services.
Lessons Learned: Step Three
Read Full Transcript — Step 3
There were many factors such as the parking. Um the supermarket has a lot of parking. That's super important cuz people um want to know that they can find a space and a space to park and not have to um be crowded and there's, you know, feel comfortable coming into the store. The square footage that we were looking for based on what we wanted to do, that was uh an important factor when we were looking at a space.
And ideally, we would have wanted to to build a location, but for to start off, we thought it would be better to to have a space like this um in a commercial area. The lighting and the parking too, so people if it's at night and it's dark, people feel safe coming to the the space. The receiving area too. Yeah.
The receiving area in the back of the building. Um enough space for the trailers to come in and make their deliveries. And we can receive it in the back versus through the front door. We had actually bought a property already back in 2020.
Mhm. And it wasn't big enough for what we wanted to do. And there were other factors that really wouldn't allow us to do something like this of what we actually did. And so um a learning would be to to do some more investigation before you actually purchase something and make sure that it's the right uh option for what the business that you're trying to build.
Like uh how easy to go in car parking and then uh how we can handle some people's cannot handle like a big space to handle like the uh small people of uh amount and then uh how much we can handle or not need to be make sure So this is our second location as I said before. Um the first time it was just because the opportunity came up and the second time it was because I actually did want to be downtown. I knew that downtown was undergoing a you know revolving and uh and that they were trying to build our downtown back up. So, it was a desire of mine to be a part of that and I just felt like it was a better location for us to have more exposure.
We did work with the zoning department to make sure that we were in compliance. Um, a great resource of ours was my architect that we worked with. Um, the architect was recommended to us by the city of Battle Creek. Um, so we worked with the architect to we really leaned heavily on him, which was Cody Newman with Driven Design.
We leaned heavily on him and his expertise in architecture and working with the zoning and building department to make sure that we were in compliance all the way through our building object.
phase: location
Step Four: site selection & approval
If you’re setting up a physical location, ensure it complies with local zoning requirements and is approved for your type of business. Work with landlords or city officials to secure site approval for operating a personal service business, including any signage or outdoor elements needed.
Lessons Learned: Step Four
Read Full Transcript — Step 4
So when I own uh I buy this one uh monthly is my for my business adding uh value. So yeah I request who doing business uh buy thing is better. It was probably best for me to own so that I could be able to make those decisions that I couldn't make in a leasing situation. And because we had kind of outgrown that space, that was a choice I made.
And I felt like I was in a position where what I was leasing for, I could afford to buy and still be able to do whatever I wanted to do. We definitely have learned more and more as it pertains to property due diligence as time has gone on. When we first started, we didn't really know what that even meant. When we looked for our second building for our production facility, uh we didn't know we had a budget for those things until they were coming.
So then we had to do some quick adjustments to our um financial situation, financial package. But those things add up and those are before you even get to purchasing a building or getting a lease out there. So, some of the things that we negotiated are um the maintenance, who's going to take care of what in in the lease, the cost uh of what the per square footage of the the building uh negotiated that with the owner. Um, one big thing that we uh negotiated was not having a similar business in the in the plaza as us.
So, they can't lease it out to another restaurant or another store that's similar to to what we're
phase: construction
Step Five: Design & Construction Estimates
If your personal service space requires renovations or a custom buildout, hire licensed design professionals to create a layout that enhances the service experience and complies with all safety and accessibility requirements, such as ADA standards, venting, and fire codes. Work with contractors and architects to thoroughly develop detailed specifications and cost estimates. Cost estimates will help determine the scope of the project and help identify financial needs.
Lessons Learned: Step Five
Read Full Transcript — Step 5
What I wish I would have known when we first started this process was all of the different costs that are associated with just the planning phase. We um did not have to have the site approved because again it was already an existing commercial building. However, um we did go to the planning commission to um to request the OPRA. We applied for the OPRA program and that is a program where it allows you to cap your um taxes based on where they are when you purchase the building.
So, as we made improvements and we increased the value of our building, our taxes did not increase for a set time that the commission set for us. So, um, that was when we went to the commission meetings and we went in front of the board and, um, explained what we were doing and why this was going to be of value to Battle Creek. Red flags in design and construction estimates. Really, just educate yourself.
Educate yourself as much as possible and hire people to know the things that you don't know. When we looked for our second building for our production facility, uh we didn't know we had a budget for those things until they were coming. So then we had to do some quick adjustments to our um financial situation, financial package. But those things add up and those are before you even get to purchasing a building or getting a lease out there.
It helps when you're if like for the construction side that your general contractor has done work in Battle Creek or wherever the city that that you're building your business and that they understand uh how the inspectors work, the codes that are required in that city if they're different. Um that really helps uh the process a
phase: construction
Step Six: Permits, Construction & Inspections
If your personal service business involves building or renovating, secure the necessary construction permits and work with licensed contractors to complete the project. No demolition or construction can start before planned review is completed by Planning/Zoning and Building Inspections. If no renovations are required to begin operations, ensure your workspace meets all regulatory requirements by scheduling a safety inspection and seeking zoning approval.
Tasks
Lessons Learned: Step Six
Read Full Transcript — Step 6
We did have to go through a couple different um planning hearings um or committee approvals for certain things because we are in the downtown uh historic district. Commercial buildings need all of the things. So, we had we had fire inspection, you know, water, we had a building inspection, um lots of codes compliance, um permits pulled for all sorts of everything, every when you know, anything that you have to have to do with construction, there's permits p pulled along the way. So, the key steps in obtaining our occupancy permit um had to make sure that we had a fire extingu extinguisher in the right place.
We had to make sure that our doors were um we had exits signs above each door. We had to have it posted on the wall of what our occupancy was. Um and we had to have the fire department actually come out and review all of that. We had to make sure the tag on the fire extinguisher was up to date.
phase: operation
Step Seven: operation
Once all inspections are passed and permits are approved, you’re ready to launch your business. Begin marketing your services, build relationships with clients, and establish daily operational processes like scheduling, payments, and customer follow-ups. Monitor your business performance and refine your strategies to ensure long-term success.
Tasks
Lessons Learned: Step Seven
Read Full Transcript — Step 7
When we first started, we created a lots of SOPs or standard operating procedures mainly for our kitchen operations. We needed them for the health department. The advice I would give to entrepreneurs is um think of brickandmortar last. Make sure that you have a successful product.
you have a demographic that you're going to try to advertise to. You have all of the systems in place before you buy a brickandmortar because that's just your overhead. Um, and if you can run a business without having a retail shop, do that first and then figure out how to get like a a cornerstone of brick and mortar in in the city. For sure.
I think that's ongoing because you want to find people that are a right fit with the team that you have cuz you can have one bad egg that will ruin the whole thing. So, um I think patience is key in hiring and not feeling like cuz you can have the tendency when you first start your business to feel desperate like you got to hire every person that comes even if they aren't a right fit for your business. And I think it's important not to do that. And then sometimes when you are managing, you do have to have hard conversations.
And that that's not always fun, but it's a part of it. The more and more that you are adding different people into your business, employees, managers, all of those people need to be trained on how you want things done. And if you are not documenting your process before those people get there, it's a lot harder to document it after and then retrain everybody because you go, "Oh, we're not hitting the mark." Originally, my marketing strategy was um doortodoor basically. So, I started small.
It was my mom and I. We had this little shop in Urbandale and I just thought I'm going to hand flyers out to local businesses and I'm going to be involved in the community. Um, and I thought that that was a good idea. And then as we grew um, and we moved to Lake View, you have to always be willing to change your marketing strategy.
social media, word of mouth. That one's going to be like one of the biggest ones is making sure you're giving the customer a good experience uh the first time they come in here because they're going to walk out the door and tell people about it. Um they're going to leave reviews on Google on uh our toast app. Technology has been huge in our in our business from social media to online ordering to even AI understanding how things work and and being more efficient.
Technology is actually a really intricral part of um our flower shop which may surprise people um because flower shops in general tend to be you know handwritten not really a technologyheavy uh business. However, we are we have a really great point of sale system that's designed specifically for flower shops and we work with them um to add plugins and to custom design it for what what our needs Parks.