Your niche is your focus \u2014 your area of expertise. When starting a beauty business, you want to choose something you are passionate about and have some experience in. Choosing too large a niche will make it difficult to compete against larger corporations. Whether you\u2019re developing products, marketing a service, or even vlogging, it\u2019s best to choose one thing that you can specialize in.<\/p>\n
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\n\t\t<\/div>\n\nIf you\u2019re a lover of all things beauty and having trouble deciding which to narrow in on, here are a few important tips to keep in mind:<\/p>\n
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- Think of the problems that your target audience is facing. Acne, jet lag, dark circles \u2014 and position your product or service as a solution<\/li>\n
- Consider your connection to what you do and why you do it. The beauty industry is saturated, authentic stories sell.<\/li>\n
- Do some research and gauge if there is true demand for your product or service<\/li>\n
- If you\u2019ve found a niche that you\u2019re interested in, check out the competition. If you have no competitors, and demand seems high, your business has great potential. If there are competitors, figure out what they lack and apply it to your business instead.<\/li>\n<\/ul>\n
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If you\u2019re still struggling to find a niche, that\u2019s okay! It doesn\u2019t hurt to keep brainstorming. For some beauty business ideas\/inspiration, click here.<\/a><\/p>\n
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<\/a><\/p>\nHire a lawyer<\/h2>\n
A lawyer can help make sure your product or service meets the selling requirements of your country. If you\u2019re based in the United States, for example, you\u2019ll want to become familiar with FDA regulations<\/a>. This will ensure that your product is compliant.<\/p>\n
For cosmetics, the FDA has many rules and regulations around the manufacturing and labeling of these types of products. There may even be some prohibited and restricted ingredients that you may not know about. This is where a lawyer really comes in handy.<\/p>\n
The EU, Canada<\/a>, and most everywhere else will have strict regulations you must follow before selling beauty products \u2014 so make sure to check with a lawyer before starting your beauty business.<\/p>\n
Get your finances in order<\/h2>\n
Time to think about those dollah-bills! Opening a bank account for your business helps you file taxes accurately, organize accounting records<\/a>, and avoid overspending. It also helps you keep personal spending and business spending separate to avoid future confusion.<\/p>\n
If you\u2019ve never opened a business bank account before, here are some tips:<\/p>\n
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- Don\u2019t just choose the first bank you meet with. Shop around and find a bank that caters to entrepreneurs, offers great insurance plans and has a great point or rebate system.<\/li>\n
- Get your papers in order. All businesses need a taxpayer identification number to open a business bank account.\n
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- TIN (USA)<\/li>\n
- BN (Canada)<\/li>\n
- VAT (Europe)<\/li>\n<\/ul>\n<\/li>\n
- Make sure everything went through successfully. That means that your business name is written correctly, and your deposits go through properly.<\/li>\n<\/ul>\n
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\u201cI’d recommend writing down everything you have to do before you start spending anything. It helps you see the future, and also helps you determine what you can go without.\u201d \u2014A’oleon Ka’Wazay, Virgin Beauty <\/div><\/strong><\/p>\nCreate a logo<\/h2>\n
One of the most critical parts of any beauty brand is the logo<\/a>. More often than not, it\u2019s the first thing people see when they come in contact with your brand. So, you want to make sure your first impression with potential customers is a lasting one!<\/p>\n
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\n\t\t<\/div>\n\nIf you haven\u2019t created a logo for your beauty business, don\u2019t sweat it! The process can seem intimidating, especially if you\u2019re not a designer. A good place to start is coming up with a catchy business name.<\/a> From there you can hop on our logo maker<\/a> and brainstorm some logo concepts for free!<\/p>\n
Click here to for some beauty logo inspiration<\/a>.<\/p>\n
Make your products<\/h2>\n
Now that you\u2019ve established your niche, learned the rules and regulations of the industry, sorted out your finances, and have a face for your brand \u2014\u00a0it\u2019s time to create!<\/p>\n
One of the hottest topics in the beauty industry right now is the clean beauty movement<\/a>. Consumers want complete transparency from a brand and are looking for clean, non-toxic ingredients that are cruelty-free. Bonus points if they\u2019re vegan! Depending on your niche, this is something you\u2019ll want to incorporate into your product.<\/p>\n
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<\/a><\/p>\nOur recommendation is to lay the foundation for scaling your business by investigating suppliers early. Suppliers can provide specialty raw ingredients at wholesale prices, reducing your cost as you scale up the production of your products. A few supplier examples are:<\/p>\n
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- Happi<\/a><\/li>\n
- Formulator Sample Shop<\/a><\/li>\n
- New Direction Aromatics<\/a><\/li>\n<\/ul>\n
Test your offering<\/h2>\n
As you test your product or service, work with suppliers who can create small batches rather than ordering huge quantities. This will save you time and money, and help get an understanding of what people like and don\u2019t like.<\/p>\n
If you\u2019re opening a service-based<\/a> beauty business, you can test by offering your services for a very reduced rate, or free, to friends and family in exchange for some honest feedback and potential marketing. Ask them to give you a shoutout on social media, or write a great review about you online!<\/p>\n
\u201cTesting is hard. We had the luck to launch from an established cosmetic institute \u2014schleswigquelledeslebens.de, and we tested the products in a professional context on clients with various conditions and needs.” \u2014QDL cosmetics <\/div><\/strong><\/p>\nFigure out your packaging<\/h2>\n
Some people don\u2019t believe in love at first sight \u2014 those people don\u2019t know the power of good branding. Nailing your custom packaging<\/a> can provoke a person to purchase without hesitation. Good packaging creates that \u201cI HAVE to have it\u201d feeling. That\u2019s why it\u2019s important to create a brand identity<\/a>.<\/p>\n
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\n\t\t<\/div>\n\nSustainable packaging is a huge concern for consumers these days. The plastic-free movement is growing in popularity, and the need for recyclable or even compostable options is increasing in demand. If this is important to you, consider companies like Noissue.co<\/a> who develop sustainable packaging.<\/p>\n
\u201cI learned the hard way that people want to see the product on or inside the box. Especially when you’re new. Make sure there is an image, or a cut out in the box so they can see and connect with the product. Packaging is everything! Spend money and time here. It makes a huge difference and will help you in marketing.\u201d \u2014Lauren Madeira <\/div><\/strong><\/p>\nFind your partners<\/h2>\n
As you grow and develop your beauty business, your need to work with outside vendors and partners will grow too. Here are four main partners you should source in the early stages of your business:<\/p>\n
A lab<\/h3>\n
For now, you might be planning to produce your beauty products at home. But as you grow, this will become less and less manageable. It can also be difficult to guarantee and maintain a sterile environment at home, that\u2019s why we recommend finding a lab to create your products.<\/p>\n
A fulfillment partner<\/h3>\n
If your business is run online, you\u2019ll likely need to find an order fulfillment partner<\/a> sooner than later, lest your home begins to look like a warehouse! These people will be responsible for order intake, packaging products, and shipping them out. There are fulfillment partners all over the world, but we recommend finding one nearby so you can frequently check-in and ensure quality control is meeting your standards.<\/p>\n
Ecommerce platform<\/h3>\n
The way we shop is changing every day. What we do know is Ecommerce is increasing in popularity, and physical retail spaces are declining. Both serve the same purpose; however, Ecommerce opens the doors to a wider audience and serves immediate buyer satisfaction.<\/p>\n
Your own website could serve as an Ecommerce tool, or you could use Shopify, Big Cartel, or WooCommerce on a WordPress website.<\/p>\n
Stockists<\/h3>\n
Many people still prefer the in-store shopping experience where they can see and try out products before committing to a purchase. Most major beauty businesses offer both an Ecommerce experience in addition to having a storefront to appeal to both types of shoppers.<\/p>\n
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\n\t\t<\/div>\n\nThe problem is, operating a storefront is costly. That\u2019s why working with stockists is a great solution! Stockists are stores that sell a multitude of products in your industry or related industries: think general stores, department stores, etc. They\u2019re an easy option for your customers to engage with your product in person without having to pay for a storefront.<\/p>\n
\u201cI found my bottles, brand style, ingredients and more with Google. I get my bottles from sks-bottle.com. I created my logo with Looka which was so easy to use. We manufacture all our products in a certified kitchen. Our main ingredient is Shea butter and we produce that ourselves in our village in Ghana to help create job opportunities for women there, and it’s shipped to the US via DHL. \u201d \u2014Malia Dinko, Northshea <\/div><\/strong><\/p>\nSet your pricing<\/h2>\n
Pricing is a big thing to consider when starting a beauty business.\u00a0 Some tips for developing your pricing are:<\/p>\n
Competitor pricing<\/h3>\n
While you don\u2019t want to anchor to what your competitors are charging, this will help you understand what people are willing to pay.<\/p>\n
Your business costs<\/h3>\n
Consider the cost of your product ingredients, production, packaging, shipping, labor, etc. and build this into your price.<\/p>\n
Timeline to break even<\/h3>\n
How many months will it be until you make a profit? If the price for your product or service doesn’t cover your costs, you’ll exhaust your financial resources, and your business will pay the price (figuratively).<\/p>\n
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<\/p>\nQuality counts<\/h3>\n
Remember that people are willing to spend money on good quality products! At the end of the day, it\u2019s all about finding the right price for you and your business.<\/p>\n
Better down than up<\/h3>\n
It\u2019s easier to drop your prices than it is to raise them. Stick to a higher price point at first and gauge how the market responds to sales, discounts, and promotions.<\/p>\n
\u201cOur pricing model is 100% supply-driven. I.E. we have applied a reasonable profit margin goal to our costs and found that we stacked up well against perceived competitors. The cosmetic market is very ambiguous \u2014 with 99% of products made up of raw chemicals, even for the most expensive brands. So, selling high-quality at the right price is not so hard.\u201d \u2014Aviva Christophe, QDL cosmetics <\/div><\/strong><\/p>\nDesign a website<\/h2>\n
A good website fosters trust amongst your customers as it creates a sense of legitimacy and professionalism. You\u2019ll want to take the time to create a website that\u2019s easy to navigate, nice to look at, and answers all prospective customer questions. Even if you’re selling your product or service from a retail space, creating a website that showcases your offerings and tells your brand story, has a huge impact on the growth of your business.<\/p>\n
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- Formulator Sample Shop<\/a><\/li>\n
- Happi<\/a><\/li>\n
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