Thanks to social media, trends and the evolution of fashion, more people have become conscious of their appearance, which has in turn made them seek for products that will help them create the perfect look. This self realization is what has led to the rise in demand for cosmetic and skin care products today.
In this article, you’ll be learning how to meet the demand of the ever growing need for cosmetic and skincare products by starting this type of business. This is a very interesting venture to get into because, with the right clientele base, you could be smiling to the bank every other day.
What are cosmetic products?
A cosmetic product is any substance used to clean, improve or change the complexion, skin, hair, nails or teeth. Cosmetics include beauty preparations (make-up, perfume, skin cream, nail polish) and grooming aids (soap, shampoo, shaving cream, deodorant)
Skincare, on the other hand, is a range of practices that support skin integrity, enhance its appearance, and relieve skin conditions. They can include nutrition, avoidance of excessive sun exposure, and appropriate use of emollients.
In essence, cosmetic products are also used to ensure proper skincare.
Which cosmetic products are most profitable?
Some of the most profitable cosmetic and skincare products include;
- body and hair creams
- facial powder
- bathing soaps
- skin lightening creams
- black spot removers
How to start a cosmetic and skincare business?
You can start a cosmetic and skincare business if you follow these 8 easy steps;
- Do research
- Prepare a business plan
- Source for capital
- Pick a good location
- Choose profitable cosmetic products
- Get certifications
- Connect with distributors
- Market your products
1) Do research
Before you make your way into starting a cosmetic and skincare business, you need to do some research about how the business works. Find out where products are being bought and how much they cost, discover what the profit margin seems like for different types of products e.t.c.
The best way to go about this is by contacting the major players in this business and get them to give you specific business insights.
2) Prepare a business plan
Just like every other business venture, having a cosmetic business plan before taking further actions is very compulsory because this is what will guide you through each stage of starting and managing your business.
You wouldn’t want your business to fail right? Then make sure you prepare a business plan where you’ll write down the goals of the business, the vision statement, the mission statement, competitive research and so on.
For help in generating your own business plan, then contact us by clicking here. We help businesses scale and grow their businesses.
3) Source for capital
To start a cosmetic business, you’ll definitely be requiring capital, but it does not have to be a lot as you can start on a smaller scale and grow your business. Once again, reach out to the players in this industry and get an idea of what it takes to start, then source for it.
We also provide finance if you’re looking to scale your business today. Click here to apply for a quick business finance
4) Pick a good location
A good location will help your position business strategically in the faces of people, which will make marketing and sales much easier than when you’re invisible. Choose a location that has a lot of human movement and make sure that the type of people that frequent that area are those that you’re targeting.
It will make no sense to set-up a cosmetic business near a school, or an area filled with students.
5) Choose profitable cosmetic products
There are so many profitable cosmetic and skincare products that get sold quickly, and on good days, you get to make good profit from them. This should be the major strategy as you are looking to start this type of business, in order to ensure you keep making sales.
Some profitable cosmetic and skincare products include;
- body and hair creams
- facial powder
- bathing soaps
- skin lightening creams
- black spot removers
6) Get certifications
Registering your business at the Corporate Affairs Comission will give you credibility and ensure you never worry about getting closed down. Luckily, there are a lot of branches of the commission scattered around the country, including the FCT. It will cost between N10,000 – N20,000 to get your business approved by the CAC.
7) Connect with distributors/affiliates
Distributors and affiliates will ensure that your products get sold faster especially when you’re operating on an above average scale. So make sure you connect with them and form a business relationship.
You’ll make more money, increase your business visibility and also acquire more customers just by doing this
8) Market your products
One amazing thing about this type of business is that you can take advantage of both online and offline marketing strategies to boost your sales. Try attending fares and product events to meet with fellow entrepreneurs and retailers that could buy and also promote your products.
As for online marketing, digital marketing makes it very easy for you to now sell your products far and wide from the comforts of your home. Invest in SEO, paid ads(social media and google search ads), and influencer marketing.
Try and run an analysis on what strategy works best for your business, then keep optimizing and stick to it.
How do you create a cosmetic brand?
Creating a cosmetic brand could entail selling other products through your brand, or creating a new cosmetic product brand on your own. Following the steps above will help you create a brand that resells other products, however, if you’re looking to create a new product brand from scratch, you can achieve that through the following steps;
- Choose a niche
- Perform competitor research
- Source a cosmetic manufacturer
- Set up a location
- Create a memorable brand
- Invest in branding
- Market your products
For more details on how to kickstart a new line of cosmetic products, click here
Conclusion
Starting a cosmetic business could be your ticket into financial freedom. Amazingly, there are a lot of entrepreneurs already running this same type of business, as such, you’ll never be short of the right information before starting off.We finance business women who are looking to grow their business, so if you’re looking to scale your business today, then you should contact us by clicking here
