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Imitation is the highest form of flattery, and the other esthetician is not going to "steal" your technique by having her friend come in for a service. Be extremely welcoming, make sure she is comfortable, do a great service, completely put it out of your mind that she is "spying" on you, and let her head out your door glowing and with 3 business cards. By presenting your highest level of service, and also paying close attention to what you are doing and not making it "look easy," you'll help her (and the esthetician she is friends with) understand that your great service comes out of years of knowledge and practice. If the other esthetician starts offering it, raise your price immediately to show the world that you're not scared of her, and that you give the hands-down best service. It all sounds counterintuitive but these are the ways you make your mark in your world. And you never know, you might get a call from the esthetician herself offering to pay you big bucks to train her in your method.
That's exactly why you've gotta do everything by the book. Intake form. Offer a cup of tea. Make sure there are zero contraindications. Ask if she has ever had the service before. Have her sign off a zillion consents. Document document document... but be a lady and be totally inviting into your space. She may wind up spreading the word about how professional and talented you are.
I live in the same kind of small town where another person spread untrue rumors about my business. I will admit it hurt at first. Then I realised that this business is not for sissies. I not once have ever said anything negative about anyone else in this business nd when others ask, I generally say something positive such as "she does a great eyebrow wax" etc. There is more than enough business to go around. Why not call her up and ask to meet for lunch and talk shop? Maybe she does a service you don't do and would be a good person to refer to?
Someone once told me to treat all of your clients like your best friend. The rumors will die if it's a lie. People see through that.
I agree with coldsalineplexus. Kindness and compassion won't hurt either. You got this. And if she spreads rumors, so what?
I have also gone through the same experience maybe 3 months ago. But as recommended by my sister I took it as a challenge. When the person visited me for her appointment, I gave her one of my best service. After that I heard that she had recommended my name to 5-6 people.
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