After working in the corporate world, Rachel Hester wanted to direct her creative spirit towards something that would pay the bills and reward her personally. As a licensed esthetician and certified professional makeup artist, Rachel wanted to open her own makeup studio and spa. She had experience working at a Merle Norman studio in Nebraska and grew to believe in the quality and value of their products. Rachel started thinking about how to market the Merle Norman product line and pair this with a spa atmosphere.

As her idea grew, Rachel and her husband, Matt, knew they needed help. They contacted the Iowa Western SBDC to help them write a business plan and secure financing for their project. Rachel said, “In the beginning stages of opening our business, we had many questions. The SBDC was a great help. The classes and information they offered made sure we were on the right track.”

Sue Pitts, Director of the Iowa Western SBDC helped Rachel and Matt reorganize their thoughts into a business plan that would easily explain their concept to prospective financial institutions and help them organize the business.

Sue also helped prepare three years of cash flow projections, which helped the Hesters understand what the bottom line was. “They walked out of the projection meeting fully understanding how many sales/customers they would need, almost to the day,” said Pitts. They had confidence in this number because of their market research, which showed the need for Rachel’s services and products in their area.

Rachel and Matt had been planning on this business venture for over two years and had worked hard to save over 25% of the start-up funds needed to invest in the business. This helped them secure an SBA Express Loan through a local Council Bluffs bank.

The Merle Norman Studio and Spa is located on a very busy thoroughfare in the middle of historic downtown Council Bluffs, which is experiencing a new revitalization. The Council Bluffs Chamber of Commerce and the City of Council Bluffs have started many new projects in this area, which has brought an influx of new businesses and consumer traffic.

The company specializes in spa services for men and women, including facials, manicures, pedicures, microdermabrasion, peels, facial and body waxing, makeover services for brides and other special occasions, on-location services, ear piercing, and private parties.

Rachel has two employees and hopes to hire at least one more full-time staff member by the end of 2008. At this time she is at the studio six days a week and performs all spa services herself. Since opening in 2005, Rachel has received the Merle Norman Gold Medallion Award for the “highest standards of excellence in cosmetic retailing.” She has also taught classes in Des Moines for Cosmetology and Barbers of Iowa.