The beauty industry is one of the fastest growing and most consistent industries to invest in, and a makeup business is the best way to get the most profit from this industry. People will always want to remain beautiful; they will keep trying new methods and products to give themselves the look they desire.
Hence, if you are a beautician or have a passion for helping people look their best, a makeup business is for you. It encompasses everything from creativity, fun and money, so you will not only make money but also enjoy what you do. However, getting started with the business is not always easy, but fortunately, this guide is here to help you develop and launch your makeup business in a few steps.
What is a Makeup Business?
A makeup business caters to the individual beauty needs of people; they develop and sell makeup products that people need, like foundation, concealer, lipstick, contour, bronzers and so on. Aside from manufacturing your makeup products, you can also sell white-label products, which allows you to cut out manufacturing costs and still sell the products with your business name. White-label products are those produced by one company while another buys, rebrands and sells them as their own.
How Much Does it Cost to Start a Makeup Business?
A medium-scale makeup business will require a startup capital of N1M to N5M in Nigeria, but a more prominent company will need up to N10M to thrive in the industry.
One thing you must first understand about a makeup business is that you are not selling makeup; you are selling your brand because thousands of the same makeup products already exist, so it is your name, packaging, quality, reputation and more that people will be willing to pay for; that is why you need to invest a lot of money into building your brand to stand out in the competition.
See also: How to start a Fashion Business in Nigeria
8 Steps to Starting Your Own Makeup Business
Determine Your Makeup Products and Services
The first step to starting a makeup business is to determine the cosmetic products you want to sell, do a market survey and think about what you can do differently. It may be that other companies already sell the same product, but how can you make a difference? Why should a customer buy from you instead of going somewhere else?
Even if you intend to sell white-label makeup products, it is still important to determine your unique offer so your business can thrive. Otherwise, you will be one of the numerous makeup businesses in the industry with no distinctions.
Develop a Business Plan
The hardest part of deciding what to sell is over; now, you can plan how to launch your business. Writing a business plan may seem daunting, especially if it’s your first time, but it is not difficult. Every business needs a plan to serve as a guide through the launch process.
Here is a list of what you should include in your plan.
- Business overview.
- Market analysis.
- Product and services.
- Business structure.
- Competitive analysis.
- Financial plan.
- Sales and marketing.
- Management team.
- Operations plan.
- Executive summary.
- Appendix.
Register Your Business
It is essential that your makeup business is its own legal entity. It is not advisable to build a brand or a business, especially one that aims to sell new cosmetic products, without following the legal requirements of your country or state. So start by registering your business with the appropriate authorities to get the licenses and permits you need to operate.
Then, progress further to register for taxes, there are many penalties for businesses that do not pay taxes, and it is also an opportunity to give back to society and your country.
Create Your Brand
Now that you have an approved business name and your makeup business is a legal entity, you can start building your brand. Branding is very important for the cosmetic and beauty industry because, with so many beauty and makeup companies out there, branding will set you apart from the crowd. It will go a long way to determine who are customers will be and how well your business will thrive, so you must take this part very seriously.
Brand creation entails packaging, logo, company values, brand voice, copy, design guidelines and mission statement. It will also be best to get a professional to help you create your brand.
Create a Website and Set up Your Storefront
You can get an office space for your business and ensure you check out all the factors that can affect your business before deciding on the location of your makeup company.
However, many makeup businesses thrive in the world of ecommerce, so even if you plan to sell your makeup products in physical stores or to only sell to wholesalers, you should still opt for an online storefront or an e-commerce store.
Ensure you hire a professional to build your website and make it represent your brand appropriately, also so it provides a seamless user experience for your customers.
Develop Your Products
Firstly everything about the product should be in tune with your brand, from colour, textures, packaging and so on and pay close attention to the ingredients and materials used to manufacture your cosmetic products. Lastly, ensure the product is of good quality and worth what you plan to charge.
Manage Inventory
Cosmetic products come with many concerns like shelf life, labelling, ingredients and so on, so you need to handle them with care and keep a close eye on them.
In addition, if you are selling white-label products, you need a reliable manufacturer or supplier, and you must ensure they are of the best quality before labelling and distributing the cosmetic products.
Invest in Marketing
Now it’s time to develop a marketing strategy. If you have a physical and an online store, you can utilise advertising and online marketing as long as you can reach your target audience.
Here are some marketing approaches that can help your makeup business.
- Influencer marketing.
- Search Engine Optimisation.
- Social media marketing.
- Paid ads.
- Affiliate marketing.
Launch Your Business
If you have everything in this guide sorted out, it’s time to launch your business. Get your supporters, followers, and potential customers excited for the big day and expect to make a lot of sales once your business is fully operational.
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There will never come a time when the cosmetics industry will run out of business and become less profitable because they keep growing and evolving by coming up with new ideas and trends. That same creativity and innovation is what you need to sustain your makeup business.
Keep investing in your brand and ensure you are always in tune with industry trends, get to know the interest of your target market and strive to meet standards. In the long run, you will be grateful you started this business as you begin to enjoy its numerous benefits.
