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The beauty industry has been exponentially growing for good. One of the aspects of the beauty industry is the space it has for makeup. Social media influencers have also given the makeup industry the boost it wasn’t expecting. Every mood, every event has a specific look that is incomplete without a dash of makeup, needless to say, that everyone wants to keep up with the latest trends hence creating a lot of opportunities for anyone who wants to start a make-up business.
We have a detailed guide of how to start a makeup business easily by just following 9 steps, so if you want to be the next Jeffery Star then this is just the article for you. Strap on.
Why Start a Makeup Business?
There are various reasons to start a business in the make-up industry. These are a few common ones that make a business mind want to join this industry.
You can have your own brand Cosmetics are always in demand, you can monopolize Follow your dream of being in the beauty industryHave your own prices for your products and generate income through thatUse the internet for the business, marketing, and visibility of your brand.
There is no one answer to the “why” for starting a business in the makeup industry. As long as you are aware of your expected final result it shall be reason enough to go through with it.
Is starting a makeup business profitable?
As discussed earlier the beauty industry is slowly turning into a giant, there is barely a celebrity left who doesn’t have her/his makeup brand now. The industry was worth 532 billion dollars in 2019 alone and the expected market value is going to go up to 805 billion dollars by 2023. The skincare industry contributes to nearly 40% of this chunk.
Currently, the makeup industry has a few giants but small businesses are emerging too. The growth of even the smaller brands has been a treat to watch. With the change in the attitude of how we see makeup and who uses it, it is slowly becoming a gender-neutral luxury and necessity. Plus some brands are committed to making their makeup cruelty-free and environmentally friendly, giving out a lot of space to young entrepreneurs to challenge themselves.
The online presence of the small businesses and how efficiently it works as a marketing tool has been an added advantage to anyone who wants to start a business in the makeup industry, simply put makeup business is a very lucrative industry now.
Types of Businesses in the Cosmetic Industry
Traditional Makeup ProductsLashesBody MakeupAll-Natural MakeupLuxury MakeupVegan Makeup Eco-Friendly Makeup Cruelty-Free Makeup
What Is the Growth Potential for a Makeup
The industry was worth 532 billion dollars in 2019 aloneThe expected market value is going to go up to 805 billion dollars by 2023. The skincare industry contributes to nearly 40% of this chunk.
If that’s not enough then please consider the sudden popularity of brands like Rihanna’s Fenty or Kardashian’s personalized makeup brands. These giants have given a lot of space for small businesses to thrive. Since a lot of people can’t afford luxury brands they go for the next best alternative, all these factors combined have made the makeup industry a very lucrative one, that has opportunities for everyone.
How to Start a Makeup Business? 10 Easy Steps
Without wasting any more time, we have 10 easy steps to start a business.
Step 1. Choose a Product
The first step is to pick a product, it has to be chosen after you have done your market research. Make sure it’s something you are passionate about but also keep in mind that it has to be a product that has demand in the market.
Also see if it’s a product you can produce yourself and see how much will that cost, this way you can set realistic goals for profit.
Pro Tip- Start with one or two products before you decide to expand the business. Take a few products and see what the process is like, build a fan base of loyal customers and do it slowly and steadily.
Step 2. Create a Business Plan
This is an important step, any business is built on a blueprint of a business plan. It is the main guide to what, why, when, and who of the business.
It is an important resource for the business owner and it is also necessary for partnerships, loans and investments.
The business plan should have-
Company’s outline Market ResearchLegalities of your businessGeneral Organization Detailed Catalog of your products and servicesMarketing and Sales Strategy Finance details Contracts, Documentation, and Tax information.General Logistics
Think about how much you will be spending on all steps of the production, marketing, and distribution of your products. Other than that this is a guide for your target audience, existing competitors, etc. Making it a wholesome walk-through of what your business will look like.
Step 3. Consider Your Budget
Starting a business needs some funding and there are various ways in which you can generate the fundamental capital for your business-
Use your savings Borrowing or getting investors Business loans Consider having a partner who can be a silent investor (investors could be someone from the family or a business partner)Get grants from a local organization
The cost of your business will entirely depend on the product you have decided to produce yet there is a standard cost that is to be the same no matter what product you choose.
How much does it cost to start a makeup business?
The initial cost would start from a Limited liability company which would cost you 125$Online branding and website cost would be around $2000+Photography cost- varies Product development is about $5000+Production location- Varies depending on the size Marketing and sale- Varies Packaging-Varies
There are always cheaper ways to achieve all these investments but it may compromise the quality of your products. Make sure to start small and expand once your brand has started to show results in the shape of revenue.
Step 4. Legalities
For starters, when you register your business, an LCC should be enough but a (DBA) or corporation works better. The classification of your business will depend on the legal requirements of your locality.
It’s quite important to have your legal entity as a business. If there are accidents or your products are being sued this legal entity will protect you.
You will need to have a tax identification number for your business and an employer identification number (EIN) for tax purposes.
Beauty products often require approval by Food and Drug Administration (FDA) you can always go on their website and see what products need approval and what are the guidelines you need to follow in order to get approved by them
With that, you must also have legal support for any patterning that you might have to do for your products
Step 5. Build Your Brand
You would need a personality for your brand, this will start with designing the logo, understanding what audience you are catering to and what will be the aesthetic of your brand. The visibility and relevance of your brand depend on this step. How is it supposed to look on social media, what is the approach you’d be taking or packaging and what will be the overall vibe of your brand is all a part of this step.
Step 6. Develop Your Product
Your plan is ready, so is your business model, as soon as the funding comes you are good to start developing your product, the relevance of your products reflects on your entire brand.
Figure out the basics like sizes, colors, textures, and packaging. Be as personal as you can be with the packaging of your product.
See what are the ingredients and materials that you have used to make your cosmetics. If you are going for eco-friendly branding then using materials that are bad for the environment would not be very ideal for the face of your brand.
Make sure that your product is worth the amount you’re selling it for, making people pay money for something that is not up to the promised quality will do no one any good.
Finally, make sure your product is worth what you plan to charge for it. Overcharging customers will not bring them back.
Step 7. Test Your Products
Test the samples of your products, make sure the quality is up to the mark and that the basics of color, texture, and size are all covered. Check allergic reactions and the sustainability of your products. This is a hit and trial method, make sure you give it the time and patience it deserves.
Step 8. Create A Website
This is an important step if yours is gonna be an online store. Make sure your website showcases what the voice of your brand is. It should also support various payment methods for the assistance of your customers. It should also have a detailed catalog of the products available.
Step 9. Market Your Products
Here are a few ways in which you can market your products-
Paid ads: Facebook, Twitter, and Instagram have an option to run targeted ads.Social Media Marketing ads- Build an audience to have potential customers.SEO Optimization- using target keywords to increase the visibility of your brand Influencers- Hire social media influencers who can market your products.
Also, Read – 4 Ideas to Give Your Online Beauty Store a Makeover
Easy right? Your dream brand is a heartbeat away, follow these steps and become the next entrepreneur who changes the rules of the makeup industry. If you have a vision then this guide is the only thing you need.
The post How to Start a Makeup Business? 9 Easy Steps to Follow appeared first on Entrepreneurship Life.