It's no secret that beauty products are becoming more and more popular. Starting your lipstick and beauty business can be challenging, but the process is simple, low-cost, and supplies many people with different preferences. It is your choice to choose the size and budget of your new lipstick business!
Understand the Industry
Many people are turning to the beauty industry for a new start in life. With around 120 million US women using lipstick and lip gloss in 2017, starting your own business is an opportunity worth taking! It's also great because it supplements income while building up brand awareness. The global industry is worth around $532 billion as of 2018 ($93.5 billion in the United States) but is maintaining growth!
Starting From Nothing
There are many different lip gloss formulas to try, from the basics like clear and red wines. For a unique look, there is always glitter or metallic shades available! It is a good idea to experiment with these different products first! Starting from scratch can be more expensive and may take longer because of experimenting with products.
Start With Private Lines
Private label lines by manufacturers will provide you with an exclusive product that's custom-made specifically for you. For example, a private label line is Genie Supply!Private labeling also helps entrepreneurs save time since there's no need to go through lengthy testing periods or spend thousands getting started from scratch.
Register Your Business and Learn the Requirements
The decision to start your own business is a lifelong one. You can choose from many legal entities, such as partnerships and sole proprietorships. There's also the Limited Liability Company (LLC), which could be perfect for you to compete in a big industry.
Your state may have different rules for how to start a business. One thing you should do before starting your lip gloss line is to contact the FDA who regulates cosmetics, and find out what licenses are necessary depending on your state and whether you are selling in a store or online. You will also need an Employer Identification Number (EIN) so employers can legally hire people at their business. However, you don't have to hire employees! This number comes free of charge from the IRS. If you plan on selling your products in a shop, you will also need property insurance.
You have to consider the legal implications of your location and type of business. All color additives used within these types will also need to be approved by the FDA guidelines before use - knowing what this entails could help prevent future complications down the line. Making products that are safe for consumers is a top priority. Strict guidelines are essential to follow before releasing any product into the market.
Advertising Your Business
- Social Media
- Offer discounts/rewards program
- Word-of-mouth
- Best display and logo
- Location
- Work with salons or cosmetic stores
- Online contests between customers with product rewards
Why Start a Lipstick Business?
Lip gloss is a cosmetic product found in any store selling makeup. Lip gloss is the perfect balance of pigment, flavor, and shine. Lip gloss may be on its own to give your pout some extra oomph or mixed with other products for an even more vivid finish! Lipstick has a highly pigmented look that's perfect for those who want their lips to stand out. It contains more wax and pigment, giving it an intense finish! Lipstick helps boost your natural lip shade and adds texture and hydration.
Possible Challenges With Starting a Lipstick Business
The biggest challenge in this industry is the competitors and getting your brand name known. Worldwide cosmetic brands in the lip gloss industry are constantly fighting for attention. It can be challenging to compete with other cosmetic brands as a new company, but don't get discouraged! The best way to compete is to improve your advertising and promotion of your products to get customers to purchase your products instead!