Starting a makeup business can be a lucrative endeavor, but it’s important to understand the associated costs. In this article, we will outline seven of the most common expenses entrepreneurs face when starting your own makeup business.
The potentially highest startup cost for your makeup business will be overhead. This could include renting a space for your business, as well as the costs of utilities and any other necessary expenses to keep your business operational. On average, small businesses spend about $3,500 on overhead costs per month.
2. Website Costs
In today’s digital world, it’s important to have an online presence for your business. This means you will need to budget for a website. There are many expenses associated with creating a business, including:
- Domain name: $10-$20 per year
- Web hosting: $100-$200 per year
- Website design and development: $1,000-$5,000+
3. Initial Supplies and Inventory
Of course, you will also need to purchase supplies and inventory for your business. This could include makeup, skincare products, brushes, and other tools. The cost of supplies and inventory will vary, depending on the type of products you sell and the quantity you need. On average, small businesses spend about $8,000 on initial supplies and inventory.
4. Marketing Expenses
It’s also important to prepare for marketing expenses. This could include creating a marketing plan, designing marketing materials, and paying for advertising. The cost of marketing will vary, depending on the scope and scale of your marketing efforts. On average, small businesses spend about $9,000 on marketing per year. The typical costs associated with each type of marketing are:
- Print advertising: $500-$5,000 per month
- Online advertising: $500-$5,000 per month
- Social media marketing: $500-$5,000 per month
Another important expense to consider is that of software. This could include accounting software, customer relationship management (CRM) software, and eCommerce platforms. The cost of software will vary, depending on the type of software you need and the number of users. On average, small businesses spend about $1,000 per year on software.
6. Business Insurance
It’s also important to budget for business insurance. This could include liability insurance, property insurance, and product liability insurance. The cost of business insurance will vary, depending on the type of business you have and the coverage you need. On average, small businesses spend about $1,200 per year on business insurance.
7. Licenses and Permits
Depending on the type of business you have, you may also need to budget for licenses and permits. The cost of licenses and permits will vary, depending on the type of business you have and the location of your business. On average, small businesses spend about $200-$400 per year on licenses and permits.
Starting a makeup business can be a rewarding experience, but it’s important to understand the associated costs. In this article, we have outlined some of the most common expenses entrepreneurs face when starting your own makeup business. On average, makeup businesses spend about $10,000 on startup costs. However, the actual amount you spend will depend on a variety of factors. Hopefully, this article helped you better understand the costs associated with starting a successful makeup business.