Yes, start a cosmetic line, it is not oversatuared! Especially for those with melanated skintones.
Modern consumerism primarily runs on the fact- “What looks good, sells well”. Hence, in this beauty-driven world today, can’t you already expect those products to sell well, which actually make us look good? With that being said, the makeup businesses ought to make huge sums of money, right?
With the technology advancing every minute, what’s not so behind in progress is the beauty standards, cosmetic innovations and the love for such beauty and self care products in the current population.
No wonder, the skincare, and cosmetic industry have become one of the most sought-after start-ups with tons of google searches like- ‘how to start a skincare line’, or ‘tips to start successful makeup business’ showing up every day on the internet and the expected rise of the global beauty industry to $716 billion by the year 2025.
Well, do you want to join the race as well?
The usual economics
How much does it actually cost to start a cosmetic line?
This could be the first question you’ll come across after brainstorming about your decision of starting a cosmetic line and finally reaching the conclusion that you really wish to do so. However, it is difficult to find a definite answer.
The actual economics associated with this business model does not have a hard and fast rule. Keeping in mind the myriad of factors involved, it is only safe to say that ‘it depends’.
The product type you decide to launch, the amount you have negotiated with the cosmetic line supplier, number of people you hire are some of the hundred things you need to keep in mind while planning out the budget.
The usual investment in such start-ups goes up to $30,000, but wait before you freak out! You can definitely minimize it!
The best ways to minimize!
- Do not overload
Instead of launching all the products, you dream to be a part of your brand together, start with a few, or in fact, it is best to start with a single and most unique one- the protagonist of your brand. You are free to add on later after receiving the funds from your sales.
- Negotiate well
It is one of skills the entrepreneurs cannot work without. It is an art, so learn it fast. Negotiate well with suppliers and other people involved to save as much as you can.
- Save on packaging
Turn to companies like Alibaba.com or Aliexpress.com for cheaper packaging rates without a compromise on the quality. And even if there is a quality difference because of low cost, isn’t it just packaging? What is going to boost your sales is what’s inside the bottle. You can upgrade packaging as your business grows.
- Make it on your own
The inside of the bottle is actually important. No amount of marketing or publicity can save your product if this is compromised. However, if your suppliers charge a ton of money for this high quality and unique formulations, make it on your own.
Well, it is tougher than it sounds. This requires patience and practice. But with a bit of faith in your work and a lot more in your product, things will work out!
However, if you are too skeptical about this whole process, use ‘stock formulations’ stored in the databases of professional formulators, customize it and make it your own!
Want to start it for free?
Though minimizing helps a lot, is it helpful for the newbies in the market?
With no funds to invest and lack of experience to reach out to different resources as well as the cut throat competition in the industry, one may wonder about the possibility of ever achieving the dream of starting a successful makeup business.
However, that dream of ‘my own cosmetic line’ is just a few steps away. So, read up!
- Get the audience for your product
This may not be the first required step in the usual way, but if the motive is to start a cosmetic line with no money, your audience will be your savior!
Because there is literally no way to begin a start-up for ‘free’ but what you can actually do is use ‘another source’ rather than your savings for generating funds for your investment. And your audience will become that source.
Use content creation on free platforms like YouTube, Instagram, Social media handles or blogs to build the target audience for your product. Create makeup tutorials, give product reviews and talk about cosmetics and self care under the sun.
Once you have a loyal audience that loves your content, it is most likely that they are going to love your products too!
- Read! Research! Rack those brains!
In the current scenario, to stand out in the world of beauty and selfcare, what you require is a unique product. Something that sets you apart from the rest of the brands in the market already catering to a thousand needs of their customers.
What do you have to offer then?
Begin by asking what flaws you see in any product you use, go after the problems to find remedies and incorporate it in your new formulation.
Spend some crucial amount of time researching to learn about competitors and their business model, strategies, and products for you to improvise on it and give the market a better version.
Although, it is recommended you launch with a single main product initially, no one has stopped you from preparing in advance for your later launches, so, do not hesitate to go one step ahead and prepare a list of the products you wish to sell in future.
- Find the perfect people
Finding the right people that understand and are able to execute your ideas, well you can actually count it is as a blessing. Google may help you in this search. If not, what are those social media networks and friends for?
Network well, to hunt the right manufacturers, financial advisors, tax accountants, civil lawyers, and business advisors that can take your brand to another level. Start with free business mentoring from your local Chambers of Commerce and the Small Business Administration.
- Finally, you can register!
However, trademark search is the first imperative step prior to the registration of your company. After all, you don’t want lawsuits and public defamation for copying other brand names.
- Marketing is the stepping stone to the launch
Remember the large audience you had built as the first step to this whole procedure? It is time to use them to help grow your business in future.
It is not wrong to say how effective a well-planned Instagram feed is to attract the customers compared to the outdated advertisement posters and TV ads, because in the end, they are your audience because they love your take on cosmetics and makeup and who can be more excited to get a hold on the launches when you are about to brand your own cosmetics?
Website domains, social media handles and promoting about the cosmetic brand to whoever you come across, are the ways to go about the promotion and marketing. Try all of them out! Cause people have to know it to learn to love it!
- Funds! Your only savior!
If this is all about starting a cosmetic line from home without money, funds are your savior. But where to get them from?
Investors from friends or family keen to get you started are good choices, though the loyal set of audience you have amassed over this course of time isn’t a bad option either as crowdfunding is not an uncommon concept anymore with apps like Kickstarter.
- Pre-sell the products before the real launch
Create pre selling stores on apps like Shopify and take it very seriously. This is the place where your business can easily take off from. Because the loyal audience of yours will be the first ones to access the launched products and they’ll market it further for you, resulting in the ultimate growth of the company.
Thus, the stock images, sales copy, graphic designers, everything has to be on point for the Shopify stores to show it’s magic.
The funds you gain from pre-selling, that is, the money from a few of the initial customers can be reinvested to formulate new products, help in promotion and finally launch the new items. This is the ultimate trick to start a cosmetic line without money- use the money of the audience that loves you!
- The Launch- Beginning or the end
Haven’t you been waiting for this step to show up all this while? The dream brand to finally get launched! What is better than that? Well, there is certainly something better than starting your own beauty or skincare line- the ability to grow it to a billion-dollar business!
Hence, the launch is not the end of the long struggle you have waded through till now, in fact it is just the beginning!
I will not blame you if at this point you find yourself quite intimidated to set out on this entrepreneurial journey, well, it is nerve-wracking to be fair, but this is where it comes to your advantage. Millions may dream about it but never begin the work, too afraid to start off- cuts down half of your competition.
So, all you have to do is show a little courage and Embrace the Challenge!