Makeup. Skincare. It seems like everyone has their own cosmetic line lately. It's becoming increasingly clear that being in the beauty business is highly rewarding - if you know what you are doing. Look at Kylie Jenner, the youngest self-made billionaire. Don't forget Rihanna, Kim Kardashian, Millie Bobby Brown - the list goes on. For those who are not fortunate enough to be born into wealth but aspire to break into the cosmetic world, follow these business moves to break into the industry!
How to Start a Makeup Line
Know the Environment
If you're not planning on doing your research before launching your own cosmetic line, don't even bother starting it. Take the necessary time to investigate the market, your target audience, and lastly, the competition. This will help you get a broader idea of what to focus on and what will make you stand out from the crowd. Since this is your first time, no need to go above and beyond - keep it plain and simple. Take out your laptop and start looking up cosmetic lines in your immediate sphere.
Figure Out Your Business Structure
Moving on to your business structure. For example, are you planning on establishing a limited liability company (LLC) or partnership? Take the time to consider your options and choose one that suits your personal and tax needs. If you're having a hard time figuring it out, it helps to make a list of advantages and downsides. We recommend you reach out to a financial advisor or a local lawyer for additional assistance.
Register and Trademark
Time to register your brand. Perform a trademark search to ensure the name you're going with hasn't already been taken to avoid any legal complications. Do your due diligence! Seek legal advice from people qualified to do that. We recommend hiring an intellectual property lawyer to help you with any inconvenience at this point in your journey. You can register your brand at sba.org.
Find a Reliable Cosmetics Manufacturer
There are two standard types of cosmetic manufacturers: private label or white label. Private label makeup lines are custom-tailored by a manufacturer that lets cosmetic companies sell their products under their own brand name (your brand). Going private gives you the option to customize your goods, such as shade, fragrance, or packaging styles.
On the other hand, a white-label manufacturer manufactures products for multiple brands then rebrands them under their name. Although both options are somewhat similar and cost-efficient, going for the private-label option allows for more customization. That is if you're really trying to make your products unique and hard to replicate.
You get to decide what goes into your products, so be sure to familiarize yourself with the ingredients to comply with laws and regulations, depending on where your clients are located.
The Pure Source offers various custom manufacturing options to bring your skincare product ideas to life. Our products are designed with the finest ingredients and support a healthier skincare regimen. Navigate our contract manufacturing option to learn how we can manufacture effective topical solutions for your business.
You know what they say, secure the bag. Find potential investors that are willing to support you and your vision. These can be friends, family, or even your bank (loans). Crowdfunding sites like Kickstarter can be an excellent place to begin, too.
Insurance and Accounting
At this point, reach out to that financial advisor from the previous step and discuss the kinds of protection and insurance your company will need and/or benefit from. If numbers aren't your thing, it's easy to feel overwhelmed here, but research is your friend. Take the time to go over your options with your advisor. Once you have your coverage underway, hire a tax accountant to manage all your book-keeping and taxes. If you have a trusted accountant friend who's willing to help, that will also work. Doing this from the start will save you a lot of headaches down the road.
Open a Bank Account
Depending on the type of business structure you decide on, you'll be obliged to open a bank account for tax purposes. To be clear, you don't need one, but it's a smart business move to have one. Never mix business and pleasure. Keep them separate!
Find the Right Suppliers
Now that you have your products, your insurances, your legal team, it's time to look for a supplier. This is a reasonably easy step; simply google "cosmetic line supplier." Look at operation conditions and legalities concerning distribution or production mishaps.
If you don't already have one, start a social media account for your brand and use these platforms to connect with your audience. You may not be amazed at how far a well-maintained Instagram page will take you!
Buy or Rent a Shop or Office
Because the shopping environment is essentially online, this step is optional but preferable if you're in it for the long-run. Before you sign any leases, get advice from your accountant and talk to solicitors. This will give you a clearer idea of what space will be best for you and your brand.
While renowned cosmetic retailers like Sephora and Ulta aren't going anywhere anytime soon, that does not mean there is no opportunity to make your mark and build a lasting beauty empire.
We've seen many independent makeup lines become successful by offering products that meet unique needs. They have the opening to really connect with these customers on a more intimate level. If you're set on starting your own makeup line and have a plan and goals, we don't see what's stopping you from launching it.