To all the young entrepreneurs out there, consider the cosmetic business industry for your career. Why? Because it is growing at a rapid pace. In 2021, the cosmetic industry had a value of around $511 billion with a growth rate of nearly 5% around the entire planet. It’s believed that in just five years, it could rise to nearly $800 billion. Yet, how do you start a cosmetic business in the first place?
Now, that’s a lot of money and luckily, this is a career that has different branches to focus on. You could consider something like skincare, hair care, makeup, and others.
However, the beauty industry is just as cutthroat as the rest, so don’t let their dolled-up faces fool you. Understanding this industry requires hands-on training, hands-on experience, schooling, dedication, and drive.
If this career field interests you, then you are in luck that you found this article! That’s because this article is all about the entrepreneur in you! Sure you could join a hair salon or beauty store to work at, or, you could create your very own business with your own supplies and hard work!
How Much Does It Cost?
The most important thing you need to know about having a startup is how much money it is going to take. To start a startup you need cash. So, your passion and drive will determine how much money you will sink into this project. At minimum, you could technically start one with just $12, but this will be a full-time gig so you need to get finances in check if you want to be rolling in cash. In total, you need about $30,000.
But, what if you don’t have that kind of money? What if you want just a side-job or something as a hobby? Well, in that case, you will have to think quite small for this. Let’s say you have $5,000 for this project. What do you do?
What Does the Business Need?
Your cosmetic business is going to need some good software on a decent computer. Having software will make the business run quicker and more efficiently. The technology can also help create growth for your business and avoid sinking it into expensive money pits. In total, it should be about $600.
Location and Space
If you are lucky, you may not even need to rent out a space. Figure out if you can have your business from your home. Using your home is a great way to avoid paying expensive rent and the customers can simply use your own WiFi rather than spending more money on another one. Average WiFi will be about $100 so the cost is not crazy for something so important.
Product and Distribution
Of course, the most important part is the product. You will need to determine how much you need to sell every day, week, month, and year. If you are doing this from your home, make sure you have plenty of space. However, if you are a creator yourself, you can create your own packaging for a reduced cost or look for freelancers. That way, you create a relationship with a reliable worker and they get experience and pay from it. Getting your product and having custom packaging can range anywhere from $25 bucks to basically your entire budget, so be smart when ordering your cosmetic supplies.
We are in 2022 now and technology is very much a part of our lives. A website is another way to garner some attention. You can get a domain name for about $200 since you need a place for people to order products.
Consider marketing as well. Marketing can range from creating surveys to putting ads up on google. This can take up to $200-$800 depending on what you want to do.
In total, you can be looking at starting a semi-professional business with around $3.5-$5 if you play your cards right. Now that you know how to start your cosmetic business, remember, this is no overnight success. You will be doing a lot of research beforehand to see if it is even viable to have your own cosmetic business in your local area.
The cosmetic industry is a great way for entrepreneurs to make their mark. Both men and women, young and old are interested in the cosmetic industry. With so many options for having entrepreneurial opportunities, it would be foolish not to get involved!
Having a startup is also a smart idea even if it is in a competitive field. It is what you offer and how you present it that matters. Starting your new business can be quite cheap. And now that you know how to start a cosmetic business, perhaps you’ll spend a few hundred dollars or even up to $5k, or perhaps less for it. It may feel like you are spending more than you are making. But, if you take your time, be patient, and have the drive for success, then you can have a successful cosmetic business.