Cosmetic business
The cosmetic business industry is fast growing and it’s still has a lot of evolving to do, the demand is high and there are so much potential market waiting to be untapped.
Cosmetic business industry includes a vast majority of small, large and medium enterprise which in spa, hair salon, makeup artiste, cosmetic stores, anti-aging clinics and lots more.
In 2016 the US cosmetic industry was said to have made in profit close $62 billion this is according to market research, meanwhile the global cosmetic market has projected that by 2023 the cosmetic industry is estimated to make a profit of $439.8 billion.
Is cosmetic business profitable?
This is a commonly asked question for people intending to venture in the cosmetic business industry. Firstly, the cosmetic business is a multi-billion dollar industry and it’s a easy to strive if you have the right plans in place.
In 2011 the Asian market is said to have made a profit of $114 billion and the outlook for the industry is very promising. As the world’s population increase the more product are sold.
Bear in mind that people bath every day which means soap is been used as well as deodorant, for some females they use make up, so yes the industry is very profitable if you delve in with the right plans.
Middle East and Africa is said to have garner $20.4 billion in 2011 alone leaving the sub-Saharan regions with #260 million.
Let me share with you why the cosmetic business industry is viable
- Cosmetic m products are daily commodity and this goes beyond makeup, soap and cream. Everyone in one way or another goes use cosmetic products either to enhance their looks, to tone their skin color, to smell better or to look better. Cosmetic has helped many with their self-esteem and that’s why cosmetic skin care products sell fast next to food.
- Women spend more on cosmetic product not because they earn more but to enhance their looks. It is claimed that Africa women spend more on cosmetic product like skin care products, hair products.
Cosmetic Business Ideas
The cosmetic industry is wide enough to accommodate you no matter the niche you settle for as long as you have the write business plan.
- Salon
This can be a barbing salon or a hair dressing salon. Hair dressing salon is time consuming and very stressful, you can also become a tutor get fresher’s to register under you if you have years of experience and is well established.
You can also run home service which is currently high in demand and clients are usually charged 3 times the regular price but in general it depends on the quality of your work and bargaining power
- Makeup Artiste
The demand for freelance makeup artiste is fast growing, you can operate a studio and carryout home service or you can run only home service. In the makeup industry there are lots of specializations for example wedding makeup, movie makeup, cinematic, beauty brands, fashion and face and body painting.
- Nail, Eye Lash or Brow Technician
The set of business in the cosmetic industry is ever trending, the more outstanding you get the more customers you get, the industry is evolving and if you must go in be updated with the latest trend and be creative.
- Beauty Blog
This is big on YouTube and Instagram, making videos on product and how to use them plus how they work will bring in the desired money you want and more but you have to invest in online advert. You can also open a website for articles on product reviews and lots more.
- Sell Cosmetic Products
There are different products to sell, for example your homemade skin care product, or you can open a one stop shop for cosmetic product. You also have the advantage to sell online through your social accounts and website.
Cosmetic Business Cards
It is important for every business to have a business card this is a fast way to share your contact information with a potential client or partner, information’s like name and business name, email address, phone number, business logo, etc should be included in the your business card.
Here are a sample of business cards and you can find more templates on Freepik.
Cosmetic Business Names
Naming a cosmetic business would depend on the line you intend to delve into and the same name would be used for your branding, packaging and online platform.
Cosmetic business names should be easy to remember, spell and memorable. The niche should be included as a suffix that way it gives your potential customers an idea of what you are into.
Use rhythms that sound soft and catchy to the ears, here are names of big brands cosmetic names in the industry, Mary kay, Revlon, Pantene, Nivea, Olay, and Avon. Here are a few cosmetic business names idea,
Lipstick lovers, first class touch, Savon soap, blue rain deodorant, unbroken cents, intense make over and so-bright cream.
It’s important that before you name your product write a couple of names that resonates with you, give it to customers, friends and family to vote which they thin k is the best name for your business.
Pick out the top three and make your choice and before you register the name of the business, research and do a name search to see if the name is available for use.
How to Start a Cosmetic Business Online
In 7 steps I will walk you through how to start an online cosmetic store having in mind that the industry has variety of products.
- Research
The first step to any business is research, know your competitors, and know the niche you want to delve into which will include the availability of products whole and retail rate and the demands. Build networks with as many distributors as possible this will help you sell your products and buy at a cheap rate if you want to go into product sales.
- Specialize in a Product
Choose a line of cosmetic product and be good at it, focusing on one product makes it easier to plan your business strategy. It will be easier to narrow down on your competitors and gradually list their loop holes and how you intend to fill that void in the online market.
- Brand Identity
Create a strong logo that will outlive the business, build and tailor your brand to suit your target audience both online and offline, this will boost your credibility as customers will entrust their money to brands that have strong image with good reviews online.
- Permits
This is very essential and the same regulations and policies applies across board, you need sales and tax permit, and you be updated with the laws guiding your business.
- Business Plan
Any business without a plan is bound to fail. If you are a fresher or you have some experience in business management you still need to come up with a plan that will include you trial stage, finances, executive summary, team member and lot more. It’s advisable you employ the services of an expert in the field to draw up a realistic business plan.
- Marketing
Social media can help you reach a huge number of your targeted audience through content creation and online ads. Having a strategic plan and promoting your cosmetic business online will help grow the launch your cosmetic product faster, lastly offer discounted rate on your product for quick sales and promo during festive season.
In your marketing plan top on your list should be a budget for website creation/opening of social media accounts and promotion for each.
- Accounting
Before starting research the current market value of your product niche, tools you needed for the business, marketing budgets, and other overhead.
It will be foolish to invest in a business without knowing the financial implications and without being able to recognize the areas of where more profits can be made from. Keep an updated accounting book, this will help you trace your loses if you ever encounter one.
How to Start a Cosmetic Business At Home
Starting a cosmetic business from home requires that you first decide on the area you want to focus on as there are lots of opportunities to choose from. For example brown powder lines, nails, salon, blushes etc.
It’s important you start from somewhere and start small with plans to expand as your market reach grows.
Research
If you intend to stand a makeup line you will need to study the ingredient used and also what your competition is using and making them stand out. In your research find out what the market is lacking that you can provide.
Get the necessary certification, degree and knowledge you need to establishment a cosmetic business, lastly research the current market prices as this will give you an overview of your initial capital investment.
Name/Brand/Logo
Every business needs a name for easy identification, it can be a tasking but fun when it comes to naming a business, bear in mind that the name of your business will outlive you, it should be easy to spell and pronounce, there should be a rhythm to it that way it will be easy for customers to remember.
Your logo is coined out from the name of the cosmetic business, the brand is the first step to branding, that is the image of the cosmetic business before a customer uses it.
Lastly, ensure you research the availability of the name you pick before settling for it.
Business Plan
A cosmetic business or any other business will succeed if it has a solid business plan that is realistic and is worked on. In planning you will need to factor in all your initial cost for example equipment, raw material, marketing, business permit, insurance and wages.
Also know that in your plan should include the first 12months sustainability plan in case you don’t make enough sales to initially.
The Law Requirement
Study the FDA’s regulations or the type that exits in your country as it pertains to cosmetic, there are regulations to branding cosmetic and you must label them accordingly.
Your home must met the set standard for the niche you choose and you can’t store the equipment’s you use for your production in same place you have you household items. There are permits given, it’s important you research and get the necessary documentation before you start off.
Marketing
There are many tools you will want to consider for the marketing of your cosmetic business, for example flyers, face to face ads, creating a website and social accounts.
When running an online social accounts ensure you update them as often as possible and be prompt in answering your clients who contact you online. Invest in online advertising this will boost your visibility and turn readers to customers.
Lastly, get your customers to rate and review your product positively online.
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