The global beauty industry is estimated to be worth a whopping $756 billion by 2026. The competition may be fierce but there’s always a place for innovative beauty products that’ll disrupt the mainstream brands and attract a new crowd.
If you’ve been thinking of starting your own beauty business, it’s now easier than ever to launch an online store and reach customers. But first, you need a solid business idea, a business plan, and a product in demand.
Keep reading to learn how to start a cosmetics business the right way and find your success in the beauty and cosmetics industry.
Validate Your Idea
The cosmetics business is huge so validating your idea before you start production is essential to your success. For example, you might think there’s demand for eyeshadow palettes but market research data shows something different. Start by defining your target market and their needs before you define your product.
You can do this through Google Trends, Reddit, online research, and talking to your target market directly. Once you know what types of products are in demand, you can start playing around with ideas. This doesn’t mean you can’t launch an eyeshadow palette but it would need to be extremely unique or you’d need to have a huge audience to make it a success in the beginning.
Write a Business Plan
Once you have validated your idea, it’s time to write a detailed business plan. This is especially important if you want to attract investors. A business plan is an outline of your vision for the company. It should list all the business goals you have, the product specifications, the budget you’re working with, market research, competitive analysis, how to get an llc, and the marketing methods and plans to promote your business.
Start with a simple business plan and develop it as you go. This will help you stick to your goals, stay on track, and get serious about your business.
Create an Eye-Catching Brand
If you want to be taken seriously as a company, you need to create an eye-catching brand that people will remember easily. To do this, start by thinking of a name for your company and products. Then, create a logo that’s unique and representative of your mission and vision for the company.
Next, think of your brand colors, packaging, and brand message. These are all elements you should define before you go into production so you can order the packaging and labels for your products.
Find Investors and Funding
There are two main ways to fund your business: get investors or fund it yourself either through a business loan or by bootstrapping. If you would go for a business loan make sure you have a good credit score for easy approval, but if you have a low credit score, you can check for a small business loan 650 credit score. If you decide to go with investors, you need to prepare a strong case in order to get the funding. Investors need to be convinced that your business is a great return on investment.
If you want to bootstrap it, make sure you calculate all the costs related to the business so you know exactly how much money you’ll need to get things going. Depending on the type of product you’re selling, you can start with anywhere from a few thousand dollars all the way to $30,000.
Analyze Your Competition
One of the best tips for starting a cosmetics business is to analyze your competition. This is a step you shouldn’t skip as it can help bring valuable insights into how the industry works. Start with your direct competitors, i.e. the companies that sell the same products as you.
When launching a new product that’s already been done by other brands, you need to show customers why your product is better than your competitors’. Look into their websites, marketing campaigns, product formulations and quality, and their customer service. Use these insights to outdo them and find a way to stand out in some way.
Find the Right Formula
Formulating a beauty product is easy but formulating it the right way in order to provide real benefits is the challenging part. Though you can find basic formulations for cosmetic products online, if you want to start a beauty line people will love, hire a chemist or a lab.
You want something original that hasn’t been done before. Consider adding an ingredient with great beauty properties to make your formula unique. This can be anything from precious oils, plant extracts, natural clays, and skin-friendly acids.
Perfect the formula and test it extensively to make sure it performs well. Once you have the best formula, it’s time to take it to production.
Find a Lab and a Manufacturer
One of the most important steps in cosmetics manufacturing is finding the right lab and factory for your needs. You need a manufacturer that’s experienced in making products like yours and that specializes in cosmetic manufacturing.
Make sure the manufacturer follows the GMPs and cosmetics regulations in Canada to ensure safety and quality. Aside from production, you also need to take care of the logistics. That means finding a fulfillment facility and a reliable shipping company to get your products to customers. You can also look for a private label makeup company that is more budget friendly for startups.
Market Your Products
Now that you have all the important things figured out, it’s time to launch your business and market your products to your target market. If you have a limited budget, use social media to spread the word. Create a business website and online store, tell everyone you know that you’re launching a cosmetics product, and print out business cards to hand out to people.
If you can, line up some influencers who will promote your product to their audience. You can also start a YouTube channel where you’ll post tutorials, talk about ways to use your product, and talk about the benefits and ingredients.
Wondering How To Start a Cosmetics Business? Now You Know!
Now that you know how to start a cosmetics business, it’s time to take the first step towards your new and exciting journey. From validating your business idea to finding the right formula for your products, starting a beauty business from scratch can be challenging but well worth the effort.
Want to learn more about beauty and makeup? Check out the rest of the articles we’ve written on these topics and come back often to discover the latest cosmetics business tips and industry news.