In this fashion-oriented world, people are more indulged in “good looks”. Hence, the cosmetic or beauty industry is evolving at a faster rate. Are you looking forward to opening your own makeup business? This is high time you go for it! People are running behind cosmetics and are extremely self-obsessed. People around us are busy having a picture-perfect look. In this current situation opening your makeup business will get you a good profit with a well-established business for the long run.
This sector is booming with emerging trends, as it contributes to about 36% of global market growth and is one of the lucrative sectors that encourage entrepreneurs to create their own space. It has been climbing since the last decade and is assumed to grow up to 5% in next year.
In this article, we have answered how to start a makeup business to help you build a strong business foundation.
Let’s take a quick sneak-peek into the article!
- Why Start A Makeup Business?
- Business Range In The Cosmetic Industry
- Growth Potential Of Cosmetic Industry
- How To Start Your Makeup Business?
- Additional Tips
- FAQs
Before focusing on the steps of starting a makeup line, know what difference can a makeup business bring in your entrepreneurial career. Here’s why you should start this business!
Why start a Makeup business?
There is no such right or wrong theory for starting this business. There is an ample number of reasons that can inspire you to get into this beautiful space. Check out some of them.
- Cosmetics have always been in great demand. Hence, you can expect a steady client base for your products and services.
- With ever-increasing customer demands, you can even introduce your brand.
- Besides business, you can pursue your passion for beauty. Nowadays, we can spot various cosmetics business professionals who have turned their passion into their profession.
- You can set your prices and can earn a decent amount as there is a constant demand.
- Lastly and most importantly, you can have an in-store and online selling experience.
If you are focused on the end goal and passionate about this sector, then any factor can motivate you to step into this glamorous world through your business skill.
Planning to dive into this beauty world? There are a plethora of options. Take a look at the below section to sort your preferred niche before you start your business.
Business range in the cosmetic industry
As you step into this field you will find several ways to go. You have to specify your niche so that you can build up your brand. Before specifying your line of products research the market trend. To stand out from others, explore the wonderful world of makeup products before you learn how to start a makeup business.
1. Traditional makeup products
Traditional makeup products like lipsticks, blushes, mascaras, foundation, eyeliners are quite familiar to fashionistas. But you can always go experimenting with these products and introduce new ones. You must add your twist to make it different and unique. Besides, you should get your products tested before you launch them to ensure they are safe on the skin.
2. Lashes
Eyelashes are a major fashion trend nowadays. You can go for these products as they don’t require much development. Besides, you can sell these products to other beauty brands as well. Moreover, you need to be very cautious about the lash glue so that it does not affect the user’s eyes.
3. Body makeup
Concealers, foundations, and other makeup products are familiar items in the category of body makeup. These products remove blemishes, adjust your skin tone and add a good amount of glow. Product development can be easily implemented for these products.
4. All-natural products
People are more cautious about the product they are applying to their skin. Hence more and more users are indulging in natural products to maintain skin health. Creating products that would consist of plant-based ingredients would do wonders for your business. But these products generally cost more, hence research more before you select your product base.
5. Luxury Makeup
Apart from regular users, some people are ready to invest dollars in makeup items. Mostly, skilled makeup artists or people from the glamour world would opt for these kinds of products. If you target this market craft your products accordingly and design them with high-quality ingredients.
Growth Potential
The beauty industry is multiplying rapidly and with growing trends, it’s evolving at a faster pace. According to a study, the market value of the cosmetic industry would exceed $805 by 2023. This is not at all surprising. People all around the globe are beauty conscious and everyone wants to look good and glamorous. If you start your makeup business you can expect steady growth, if you work hard. Though your profit margin may fall around the average, you would surely earn good enough.
Makeup pro or professional makeup artists always look for quality products and are ready to invest a good amount. The cosmetics industry has been valued at around $170 billion per year on a global scale. Americana accounts for $40billion dollars and the rest $130 billion by Asiana, Africans, Australians, and Europeans. As per the growth rate of the makeup industry by NPD data, there has been a substantial growth which increased by around 6% between 2004 and 2018.
The makeup industry is segmented into five main branches:
- Makeup accounts for 20%.
- Haircare, another 20%
- Fragrance only 10%
- Skincare accounts for 27% and other products contribute 23%. Moreover, the industry offers ample opportunities for budding entrepreneurs for a flourishing career ahead.
A perfect business idea can make your business afloat. We have done the research for you. Take a look at the section below to understand how to initiate your makeup business.
How to start your makeup business
Check out the below steps to learn how to start a makeup business.
1. Choosing the appropriate product
Choosing your product wisely makes your task half done. Research about the market demands before you choose a particular niche. This will help you to get a constant client base with handsome profit on every sale. Also, a good selection of products will make you stand out in this crowd of beauty products for your long-term objective.
Some of the most demanding makeup products that can get your business off the ground are:
- Lipstick
- Eyeliner
- Foundation
- Mascara
- Concealer
- Highlighter
- Bronzer
- Blush
- Setting spray
- Nailpolish, etc
2. Business plan
Outline your business plans efficiently which should have proper company review, legal structure, marketing strategies, product overview, detailed financial outlook, and other details of your business. This documentation would help you to get your loan application approved and also would ease up your brand promotion.
3. Funding
Funding is a vital factor that helps in initiating your business. You can get funding from local organizers, family members, silent investors, or someone who has hands-on experience in this field. Before you go collecting funds get an idea of the basic expense of starting a makeup business. Expenses involve:
- LLC
- Branding and creating websites
- Product development
- Product photography
- Warehouse
- Marketing and packaging
4. Taking care of legal entities
Keep your legal documents ready to avoid serious legal implications. You must have the required licenses to protect yourself as an individual in case of any accidents. Moreover, as a business enterprise where you deal with makeup items, you might need to have FDA approval in some cases as well.
5. Build your brand
Building a strong brand for your products is highly essential. An attractive logo with a strong catchline will enhance the aesthetic and would reach out more to the targeted audience. Besides, well-protected and beautiful packaging with an active social media profile also helps you to promote your product.
6. Develop your products
Once you are done with the business model, it’s time you focus on product development. As these would be applied to the body, you must follow the regulation while formating to mitigate the unforeseen risks. Hence, Pay close attention to the ingredients used, the service it would provide, and the packaging is done. All these factors would make a world of difference for your product.
7. Test the products
Quality check is vital for any service or product, and when it is something so sensitive you must not miss out on this. Test a few of your product samples before you finally launch them. Color, texture, effectiveness, and after-effects all need to be considered while you brand your product.
8. Formulate strong marketing strategies
As per studies, the global beauty industry would be worth around $756 billion by 2026.
To enjoy even the smallest slice of the huge revenue-generating business sector, Structuring a strong marketing strategy is necessary. You can try out some of the approaches discussed here.
- Go for paid ads on Facebook, Twitter, or Instagram.
- Add engaging content to your website to attract more customers.
- Check keyword density to reach your targeted audience through SEO.
- Take the help of social media influencers who can help to promote your brands.
9. Design a digital portal
Even though you would sell your products physically, you must keep the online option open as well. Hire a web designer to create an attractive website and include the ‘about page’, contact page, and shop page to help your customers with all the information they want.
You can even display your products online and highlight the ingredients, ‘Best for’, payment details, and other related information to ease up online transactions. Take the help of professionals to build your website so that it offers a seamless experience for your customers.
Wondering how much would a web designer charge you for their work? Check out our related article – How much to charge for web design?
10. Launch your product
Once you are done with all your preparation you are all set to launch your products and start generating sales. As you start your sales it is vital to hold back your existing customers. Besides quality products and excellent customer service, offer discounts, offer free gifts on special occasions and events. Such initiatives help to build a loyal customer base and retain your clients.
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A sound and smooth running business venture are worth your effort and dollars invested in. Follow the below pro-tips to give a good start to your business!
Additional Tips
A sound and smooth running business venture are worth your effort and dollars invested in. Besides learning how to start a makeup business, follow this bonus information to stay afloat in this competitive market.
1. Social media
Master the art of presenting your products on social media. If you follow some of the renowned makeup professionals or influencers you would learn how they climbed to the top of the cosmetic industry.
To help you figure out how to start your cosmetic line we have done the research and listed the following:
- Start marketing your products through visual advertisement. Choose an ideal social platform that’s age-appropriately and would help you reach out to your potential clients.
- You can also market your brand on Instagram using influencers. This platform provides constant possibilities to boast about your brand by posting pictures, videos, tutorials, blogs, etc.
2. Prioritize customer reviews and appreciations
Try to follow customer reviews and respond to them as and when possible. Besides, give away discounts or free products to loyal customers just to appreciate their loyalty towards your business.
3. Integrate dropship business model
To extend your profit margin dropship is an ideal fit as it helps you deliver the product only when purchased. Hence, the third party is liable for the entire stock and maintenance and so, you get more time to focus more on branding.
4. Public relations boxes
Sending out PR boxes when you launch a product would excite your customers. This is an effective strategy that can help in the growth of your makeup business.
5. Prioritize customer needs
Diversify your product depending upon customer needs. Do not focus on a particular group, rather look beyond. A product that caters to the needs of people with diverse issues or requirements would be appreciated and more easily accepted.
FAQs
Professional makeup business owners have stated that the initial startup cost is somewhere around $75000 to $200,000. This depends upon the business plan and the budget it includes. The costs involve:
1. Office location
2. Makeup accessories
3. Display cases
4. The payroll of the employees
5. Website, insurance, business logo
6. Marketing
Whereas, the ongoing cost of business includes- traveling cost, maintaining inventory, Marketing and advertising, manufacture of inventory (if needed), and insurance.
Though the makeup business has a wide scope, it is better to list out the target market for better reach. As per various studies, the list includes professional makeup artists, actors and actresses, cheerleaders, broadcasters, gymnasts, and even men and women of different ages.
Prices of beauty products vary a lot. Supposedly, a low-end beauty product would cost around $5. Whereas, a high-end product would cost somewhere around $100 to $150.
Strong business strategies can get you success in your entrepreneurial journey. Following the below steps you can expect to achieve a prosperous and successful makeup business:
1. Set a skincare clinic, especially for your targeted audience.
2. Provide makeup artist services
3. Arrange photoshoots with national and local magazines.
Individual sales or wholesale distribution can generate a good amount of revenue from your makeup business.
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Bottom line!
These steps would help you all the way starting from planning to the launching of your product. With Billbook software we have even ruled out your accounting issues as well. So what are you waiting for? Dive into this beauty industry and start your makeup business now!
