From its beginnings, the beauty industry and its products have been widely accepted and used for the same purpose as today: enhancing one’s physical appearance.
The beauty industry once solely had females as its target group of customers, but with years of fighting prejudices that have prevented men from seeking beauty products, the industry today witnesses a surge in the number of consumers from all genders and age groups.
The booming beauty industry of today grows at an exponential rate and is expected to continue rising in the future.
In the global beauty industry, estimated to be worth half a billion USD, the number of companies contributing to its global net worth increases day by day. While the beauty industry is a profitable field to launch a new business in, the competition is quite vast and the customers unforgiving.
Moreover, the vast choice is exactly what made the consumers unforgiving, seeking better solutions everyday and making conscious decisions of what they invest their money in.
As consumers now pay attention to the authenticity of companies and their purpose, rather than falling victim to the manipulative marketing strategies of authoritative brands on social media platforms, this gives great opportunities for new and smaller businesses making their way in the beauty industry.
Taking all that into consideration, there is not as profitable a field as the beauty sector is nowadays, and no better timing to launch your cosmetic or beauty business and products on this niche market.
With the right business idea and proper execution, launching a business in an industry that is competitive yet lucrative can offer great success with a loyal customer base.
If you are finally ready to go all in and you need some pointers on how to start a cosmetics business, we are here to help you with the basics. Here are the main steps a beauty entrepreneur needs to take in order to establish a successful beauty business.
Create a Beauty Business Plan
A successful brand emerges out of an excellent idea, while a successful business that makes the brand profitable starts with an impeccable, strong business plan.
As with every major investment and project in life, starting a business requires a solid plan that will outline the costs and strategies that will help the business achieve specific goals.
In general, a solid business plan should include an executive summary, financial planning, market analysis, marketing strategy, supply-chain management, and short- and long-term achievement plans.
If you do not have any experience with launching a business and brand, it’s advisable to consult a business expert to help you comprise a business plan and help you with the execution.
Additionally, an experienced entrepreneur can give you crucial pointers on what to focus on and how to avoid common pitfalls, all for the purpose of getting ahead of your competitors, winning customers over, and boosting sales.
Checking Rules and Regulations
When it comes to cosmetic products or services, abiding by health and safety regulations of the appointed authorities is important. It’s vital that your business abides by the law by all means and is covered with appropriate insurance.
When dealing with customers that use your products or services on their body, any unwanted effects such as hidden costs, can spark problems that may end in lawsuits.
To avoid this, you must have proper product testing in place, acquire a working license, and insurance that protects your business in case someone experiences side effects.
If you are launching a cosmetic beauty brand that offers services, you should be extra cautious of the safety of your premises and make sure all employees have the proper qualifications and licensing to work.
It’s vital to have a lawyer review your documentation and help familiarize you with legal registration and taxes so that you do business lawfully.
If you are launching a product that you have designed yourself, it’s necessary to claim it as a trademark. Trademarking your brand and products protects against plagiarism and infringement.
Establishing a Brand
In a field laden with a crowded market of successful businesses, it takes much more than a quality product or service to get noticed. Defining a brand requires creating a complete and representative image for your business.
Branding covers everything, from coming up with an appropriate and catchy name, logo, and marketing campaign that will resonate with the target audience, and of course, a complete story and purpose behind the brand.
The beauty industry is quite a vast field, covering everything from face rollers to spa treatments. If your initiative to start a beauty business sparked out of a concrete idea for a product or service you want to develop and sell, you are halfway there.
However, if you are still considering different options, designs, products, or services, you should consider revisiting the brainstorming process.
Find a Purpose or Fulfill a Need
It’s hard to say that you can or should invent a product or service that is not yet available on the beauty market, however, this is still possible. A unique idea that offers a solution that has not been offered before would be the ultimate kick-starter.
However, in a deep sea of products, chances are that your idea is already materialized, so make sure you do good research.
Fulfilling a need that hasn’t been met yet gives you a better chance of success, whether in the global or local market. For example, if you live in an area where spa treatments are not available or you have an idea of a product made from natural materials that has never been incorporated in the beauty industry before, you can enjoy the benefits of being a pioneer.
On the other hand, if you are looking to launch a product line, that is similar to existing ones on the market, like an organic skincare line, make sure to emphasize what is different about your product and what makes it more valuable than any other brand in the field.
You can always conduct thorough research among a target audience and brainstorm things that are on the verge of becoming the next boom in the cosmetic industry.
Is it young girls using hair hacks to make their face look thinner? Or is it entering a more organic natural beauty sector with an engaging ecommerce platform?
Authentic products with authentic stories that benefit potential customers is crucial when establishing a beauty business plan.
You can come up with a solution that will appeal to a certain target group looking for a solution to achieve a certain goal in beauty.
Choosing a Name, Creating a Logo, and Establishing a Story
Once you have a strong concept of what the product is, what its purpose is, and to whom it is intended, you should pick a name that represents the essence of your brand and resonates with the target audience.
A unique logo with an attractive design is also a necessary part of establishing an identity that will help your brand get recognized.
Creating a brand manifesto is also necessary for today’s market. People in the modern day are looking for more than a product to use – they are looking for purpose; a brand identity that resonates with theirs and shares the same beauty and life principles.
Establishing your brand manifesto will help you form a loyal customer base and attract the right audience to your product or service.
Identifying Your Audience
By clearly identifying your audience, you have better chances of shaping your brand, product, and services by making them more appealing to the specific group of customers.
A way to do this would be to create buyer personas. With this, you should take into consideration the needs and wants of this type of individual.
What is their budget for beauty and cosmetic products/services? What sort of packaging, colors, and features would attract them to your brand?
This is helpful whether you want to create a community around your brand or tailor your brand to apply the audience/community you are targeting.
Launch a Marketing Campaign
Once you have your brand established, your message loud and clear, competitive products or services, and familiarity with your audience, you can tailor the perfect marketing campaign by taking all those factors into consideration.
Not to sound like you should skip all steps and invest all your money into marketing, but the truth is, excellent, or in some cases, aggressive marketing, can sell almost anything.
However, in today’s digital world, anyone can take advantage of online resources and have powerful marketing campaigns, so smart marketing and a solid marketing strategy are of utmost importance when launching your business.
Creating a website, social media presence, and achieving a solid Google ranking are the ABCs of today’s marketing. However, if you want to garner a proper start and solid sales, it’s best to hire a marketing team that can boost brand awareness and help you convert your initial audience into customers.
Advertise, advertise, advertise! Use all the social media platforms to your advantage because that is the best way to communicate with your audience in what you’re doing.
This is also a great place to see what your customer is looking for and receive feedback.
Create a Community, Not Just a Customer Base
Once your brand is out there, try to step into the shoes of your customers. If you were unfamiliar with the product/service you’re offering, would the logo and name entice you to learn more?
In today’s climate, people are overwhelmed with offers of all kinds of products and services. To have something truly grasp their attention, it needs to stand out from the rest.
So what is it that makes you special? Make sure you can answer this question.
From what we can witness today, people do not seek to only purchase a product for its purpose, they also want to bind the product to the brand’s story and be part of a community that shares the same opinion and ethics.
Whether it’s renewable resources that promise to respect the environment, ingredients with organic origin, or that customers donate to charity with every product purchased, the backbone of your company is important.
What you should do is come up with a real purpose to make your customers feel like they are doing more than just purchasing a product for personal use, and allow them to be a part of a story they love.
Other than establishing an online presence, establishing your brand locally gives you the opportunity to gain a community reputation with an idea that people love and find innovative.
Your ultimate goal is to achieve recognition and remain relevant and popular for a long period of time even in the busiest industry and market in the world.