The beauty industry is worth $532 billion.
Cosmetics and skincare contribute to 40% of that.
Over 212 billion dollars.
Those jaw-dropping numbers don’t end there, my friend.
This industry has been calculated to grow to an $805 billion by the year 2023.
If you want to join in this explosive business, continue reading.
I’m not trying to sell you cosmetic products…
But I do want you to have as many tools at your disposal for your makeup business to soar.
Take it from someone who went from making $2K a month in 2014 to over $50K a month in passive income...
Thanks to Lead Generation and SEO.
Learn the steps to take your idea and build a flourishing makeup business in eleven helpful steps.
Let's get into the makeup biz...
How to Start a Makeup Business in 2021
Want to Start a Makeup Business in 2021? Here's how you can add more beauty to the world.
Want to start a makeup business in 2021? Here’s how you can add more beauty to the world. Create a business plan, and get legal. Officially trademark your name. Decide on a sellable product and its vendor. Invest in your brand and market away. Get an FDA approval and seek out those who will keep the money coming. Heed the wisdom from those who have come before you.
Start Up Costs
While this list is not a comprehensive compilation of every you need to start a makeup business, it provides a snapshot of what you need to add into your business plan.
Annual Revenue of Established Makeup Business
According to this website, the average annual revenue of this kind of business is: $35,000-$1,000,000+
Profit Margins of Established Makeup Business
According to How to Start an LLC, the average Profit margin of this kind of business is: 40%
Quick Start Checklist:
1. Make a Plan, Man
More than likely, you’re hoping for a makeup business that stands out…
And encourages your customers to stand out in the world.
That’s fabulous, however...
There are some things that need to happen on the business and legal side of things that every business must experience.
It’s not the flashy or “stand-out-ish” side of your company, but take these steps and...
It will allow you to happily and legally make your mark as sparkly as you’ve always dreamed.
A business plan is what you need for these beginning steps to success.
To avoid error once you’re up and running...
Think about your business plan and write it all down on paper (or type it out on the device of your choosing).
This is not a dream board, but a list of steps that require action that are clear.
Pro Tip:
Create your goals with the long-term in mind. Think about how long you want your business to last, and plan for the number of years. You can build something that will outlast you!
The clearer and more practical your plan...
The quicker investors and employees can get on board with your vision.
Not sure where to start? Here is an outline. Let it be your guide.
With a business plan in hand, make it official...
By forming an LLC for your makeup business so that if anything in the future of your flawless company goes sideways...
One day, you will be protected as the business owner.
And now, the free part.
An EIN number can be applied for through the IRS.
This number will allow you to file taxes properly each year, open a business bank account and apply for a business credit card.
2. Trademark Your Business Name
With a makeup business like yours, you’ll be looking to trademark your name as quickly as you possibly can.
According to Legal Zoom, this gives you the exclusive right to your business name across the nation.
Trademarking also ties your name to the goods you sell and enables you to enforce your trademark...
If you ever find yourself in a lawsuit that makes it to federal court.
This is an action that may mean nothing for the entire life of your company...
Or could be the deciding factor in maintaining sanity and success.
Do it now, thank yourself later.
3. Consider a Product & a Theme
Business owners who have trudged through the start of their makeup business will tell you that no actual magic can happen before you decide on a specific product.
“Makeup” is too broad of a concept to get off of the ground.
Consider a small number of makeup products to start with...
There may be a product that you use more than others...
Maybe there is a product that you wish could be better or more functional...
You may even do your research and develop products that are on trend.
Cosmetic Product Trends in 2021:
If one of the above items suits your fancy, then, you’re welcome.
Once you’ve put a checkmark on your list next to “choose product”...
Then you can use the momentum of the satisfaction to create a theme for your makeup business.
Think about yourself, your heritage, your passion.
Collections that are themed often attract more customers, and more importantly, those customers will keep coming back.
Make it a theme that you feel strongly about so the passion can be felt in everything you put out for the world.
Chances are, others feel similarly to you and will come alongside your makeup business…
Because they want to get on board with the theme you’ve created.
4. Find a Vendor
You’ve made your plan, chosen your product and gone with a theme.
We’re cooking now!
It’s time to research and find your vendor.
The options are not endless, but with the few options you have, there is quite a bit to consider.
We’ll discuss the cheapest option first.
Make your own makeup.
If you’ve chosen to sell a product that can be made from home...
Then you are among some of the greatest companies ever known who began developing their product at home, in a garage or basement.
A lot of trial and error will be involved on this path...
To figure out the ingredients, the formulas, and the FDA approval on your own.
If that’s not right for you and you have more cash to work with…
Private labeling is another one of your options.
Find third party manufacturers and figure out which one is the right fit.
This third party will package and label the product of your choice with approved ingredients and tested formulas.
Your order will be delivered to you and your stores with your name and label.
Not exactly for you?
To the lab!
Take your custom formulas for your products to a laboratory in the United States of America.
This option is more expensive because...
You are paying for testing of your ingredients and the time it takes to do that.
It’ll end up being about $12,000 depending on the number of developments you have going.
Once it’s been developed, you will be able to confidently say that you are the company that has the one-of-a-kind, tested and approved makeup.
You have the control over ingredients, colors, everything.
If you don’t quite have the money to develop your product in a U.S. lab…
Then you may go international with your business from the start.
Hiring an international laboratory is much cheaper since several countries have no labor laws.
Your products can be developed and tested as one-of-a-kind this way if the price is right for you.
The last vendor for your consideration is an online option.
There are online companies out there that offer...
Customizable products and private labeling for cosmetic and skincare businesses.
5. Create a "Everywhere You Look" Brand
Let’s build your brand!
With the amazing product that you’ve chosen to develop and a theme that alludes to your amazing story…
Your amazing brand will make your business recognizable to the world and its amazing people.
Pro Tip:
Your logo should be simple and memorable. Consider the giants in the industry and take a page from their books.
Just like the brands you know and love…
Create a logo that is simple and memorable.
This is the “standout-ishness” we were looking for earlier.
Be intentional about your symbols and your colors.
They should decide anything involving your product from here on out.
This will be your magic that intrigues the public with one glance.
Be proud of the brand you create...
And you want to look inwardly, instead of outward.
You don’t want something that is trendy, you want something that will outlast the trends.
It will be the stuff that invades your product, your labeling and packaging, your social media and any marketing.
Your brand needs to have elements that you are obsessed with because...
You’re about to see it everywhere you look.
Shoo-be-doo-ba-ba-dow.
6. Marketing Magic
Let’s get this makeup business moving and shaking.
Your customers need to find you.
The kind word-of-mouth from family and friends has its limitations.
Master social media.
It doesn’t matter how many hours you currently spend on Instagram or how many snapchats you’ve sent this week.
It’s business now.
Create a separate Instagram as a business-only account.
Begin incorporating more business information and language in your personal snapchats and Tiktok.
Create content. Post the video. Tell the story.
Reach out to social media influencers who would try your product…
Review it for their followers, and inevitably, add to your number of followers.
Considering all of the followers you are about to have…
Investing in high quality equipment for your content may be a wise business move.
Personal posts with your stunning face will come with this territory...
But also posting production quality videos of your product can be beneficial for business as a whole.
With the right equipment, you can create the content and be the photographer.
If it’s available for you, get a graphic designer to be apart of your content creation.
A freelance photographer may be someone you want on your team...
For the quality photos of you and your products that you may not be getting by yourself.
You may be a lucky duck who has family or close friends in the marketing and/or design business...
Who would be willing to partner with you in the budding stages of your makeup business.
And in case you haven’t heard...
Lead Gen and SEO is incredibly essential when marketing your brand and business.
I can help your makeup business see results byway of customers and income through this marketing strategy that successful businesses around the world are taking advantage of.
7. Develop a Killer Website
No matter how addictive it is…
Social media is not enough when it comes to starting your makeup business.
Developing a website is a non-negotiable, must-do task.
To get started, below is a list of easy-to-use website creators for your researching pleasure.
Put some dough towards buying a domain name to have a spot all your own for your company.
Individuals who have started their own small makeup businesses...
Encourage others looking to jump into the same water to build your website as an ecommerce site.
This would allow your forthcoming transactions to be taken care of on your website...
And any business you do with other businesses can be tracked through this kind of website as well.
In today’s society, your website will be the main hub of your business...
Depending on the quality you want for this essential part of your business...
There are low, mid and high range price options out there.
Seems like another “thank yourself later” moments.
I would also be remiss not to encourage you to find a local web developer in your area.
One small business supporting another.
There will be upfront costs for the initial creation of the website...
And then recurring costs for updates and upkeep.
8. Your Customer and The Scientific Process
We’ve gone over discovering the possible vendors that will put ingredients together and make a formula for your cosmetic product.
There are still a few things to consider…
Especially if you’re not using a private labeling company.
FDA stands for Food and Drug Administration.
And no, you’re not selling food or drugs…
In this scenario means that they do not legally have to regulate your makeup products.
At the same time, the FDA stamp of approval for your product could be the difference...
In how many zeroes come after your number of followers and customers.
They protect and promote public health and determine if your product is “unadulterated or misbranded”.
Getting approval gives your customers a peace of mind and confidence in what they’re buying…
Removing the question marks.
The big wigs of the makeup business have connected science to the beauty of what they’re doing.
Keep your customer and the scientific process in the forefront of your mind...
While you are working to get your product created and out there.
A makeup entrepreneur who launched her business at 19 years old confessed...
That getting the actual product developed was the…
Toughest and most time consuming element of her process.
9. Save Those Pennies
Money makes the world go around…
And it will make your cosmetic business go around.
Investing your own money is often where the mind goes initially.
Let’s say you have a chunk of savings or...
A grandmother who can’t remember when you’re birthday is so she sends you large sums of money multiple times a year.
You’ve saved pennies and you’ll continue to save pennies when you can in this makeup business.
Start your company spinning with your personal funds and be in debt to no man if that’s gonna work for you.
For those of us with family members who can, unfortunately, remember our birthdays...
There are other options to start the spin of your makeup business.
A loan may be right for you.
To qualify for a business loan, it requires a credit score check, proof of your annual revenue, a thorough business plan and, potentially, additional collateral.
Another route is to find investors.
Be on Shark Tank, set up a meeting with local business owners…
And pull on any strings you have attached to people in your life looking to invest.
To Qualify for a Business Loan, You Will Need:
The great thing about investors is that they want you to succeed just as much as you do...
Because they are personally and financially involved in seeing your makeup business grow.
Grants are also a potential funding opportunity to get your business started.
There are small business grants looking for someone like you to award funds to like...
The FedEx Small Business Grant, Amber Grants, Cartier Women’s Initiative Award, and so many more.
10. Keep Your Clients Happy
The customer is always right.
Clichés are not always right, but in your case, this one will forever be true.
In the makeup business, customer happiness is beyond essential.
Your products are being applied to skin and hair.
When customers love what happens to their skin and hair with your product...
They will keep your products stocked in their home inventory...
And tell all of their loved ones about how much they love them.
We won’t bring up what happens if they don’t love what happens when they use your products…
The imagination can take care of that for us.
We’ll keep ourselves focused on the positive things that will be done and said by those who love what you’re selling.
Prioritize customer appreciation.
Aid your clients in feeling special and happy and like they are your only focus.
To do this, send public relations boxes with referrals, giveaways, and discounts.
Sell your products in custom gift boxes...
So everything looks and feels luxurious and personalized.
Be inclusive at all costs.
Ensure your products and packaging and marketing and...
Everything else under the sun portrays beauty and enjoyment for all humans.
11. Consult With the Experts
Before skipping off into the great wide somewhere of your makeup business...
and bring beauty to the world and to your bank account…
Let’s consult with #1 in the business.
L’Oreal began constructing their makeup business in 1909 with a chemist and entrepreneur named Eugene Schueller.
He sold his developed hair dye to Parisian hairdressers and...
By 1957, the business he had spent his life creating went international.
When the 1980’s rolled around, the company made impactful research investments and became more aware than ever of their strategies to launch products.
In 1988, they claimed the top spot in the beauty industry.
Since 2006, their focus has been universalization.
They seek to promote “Beauty for All”, and boy…
is it working for them.
Hold onto the inspiration you need and spread your beauty to the planet.
Pros and Cons
of starting a makeup business
Pros
For many aspiring entrepreneurs, one of the greatest draws to launching a business is the freedom to set your own schedule. There’s no boss to dictate your day, or look over your shoulder… You are in control of your time. This can be both freeing, and stressful. But for most small business owners, it is one of the most gratifying aspects of being self employed.
The beauty industry is ever expanding, and this is going to work heavily in your favor. More now than ever, putting on makeup is a routine event for many women. Whether we like to admit it or not, appearances do matter in today’s modern society, and investing in high quality makeup has become an integral part of maintaining an image for many individuals. In light of this, you can safely assume that your makeup business isn’t going to become obsolete anytime soon.
Whether you are passionate about creating vegan makeup products that are friendly towards the environment, or a racially inclusive branding and foundation shades… There is a wide opportunity for creativity within the makeup industry.
Cons
Just because you have a winning skin serum that you’ve been using for years and gifting to your friends, doesn’t mean you can start marketing it to the mass public. You will need to pass strict FDA regulations before your makeup line can be released to the public or sold in stores.
Everyone has to start somewhere, but there are some big name players in the makeup world that your company will probably be up against. The best way to combat this is to heavily niche down and provide clear value. Eventually, you may be able to directly compete with the big name competitors around you, but it’s best to start small and focus on doing one thing really well in the beginning.
Creating makeup products requires a lot of upfront investing. Not only will you have to test multiple formulations for every product, but the manufacturing, branding, and packaging itself will be expensive. Be prepared that even a small batch makeup company will take a considerable amount of startup capital.
A Makeup Business Can Work, but Lead Gen is Better - Here's Why:
If you are dead-set on developing your own makeup business and cosmetics line of products…
You are allowed to skip ahead.
However, if you’re more concerned with working on your terms, at your chosen pace and preferred location…
I have a better way.
This path is Lead Generation.
It led me from $2k a month income to over $50k a month in a short 5 years.
If you’d like to work from anywhere and generate passive income…
Set the makeup brush down and join me…
