Starting a makeup product line can be an extremely profitable business venture. However, there are many things to consider before launching a makeup product line, such as what type of products to offer and how to market them.
Here are the 9 steps you can take to get started on building your very own makeup product line.
9 Steps to Launching a New Makeup Product Line
1. Name Your Makeup Product Line
Give your makeup product line an identity so people will think of it as a well-known and respected brand. You can take the name of your makeup product line from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your makeup product line is to make it sound appealing and trustworthy so that customers will be comfortable buying your products.
2. Determine Your Makeup Product Line Business Model
There are several possible types of business models for a makeup product line including:
- An online store
- A brick and mortar store
- A combination of both an online store and brick and mortar store
No matter which model you choose, make sure that it aligns with your business goals and the products and services you offer.
3. Choose a Legal Form for Your Business
By incorporating your makeup product line, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your makeup product line will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common makeup product line business structures.
4. Write a Makeup Product Line Business Plan
All makeup product line business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your makeup product line business plan and strategy, you should think about the following questions your customers might have:
- What type of products do you offer?
- What is your price range?
- Do you have a physical store or sell online only?
- Are your products vegan/cruelty-free?
- Where are your products made?
- How long have you been in business?
- Do you offer any discounts or promotions?
- Can I return my purchase if I’m not satisfied with it?
- Which payment methods do you accept?
- Can I order a custom shade of foundation or lipstick?
- Can I get a sample of one of your products before purchasing it?
- What is the delivery time for orders placed online?
Read our article about how to write a makeup product line business plan.
5. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your makeup product line.
For example, if you are planning on selling your products online, you will need to obtain a sales tax permit. If you are manufacturing your own products, you may need to obtain a cosmetology license. Additionally, if you are selling your products in brick and mortar stores, you will need to obtain a resale certificate.
You must also register your makeup product line as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper makeup product line business licenses.
6. Determine Your Budget & Apply for Funding as Needed
In developing your makeup product line business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your makeup product line, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your makeup product line include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a makeup product line business to help you determine if funding is needed.
Read our article about how to fund your makeup product line business.
7. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your makeup product line, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in software that can help with product development, such as 3D rendering software. If you plan on selling your products online, you will need to set up a Shopping Cart and Payment Processor.
For brick and mortar stores, you will need a Point of Sale (POS) system to process transactions. You should also have some form of Customer Relationship Management (CRM) software to manage customer data.
8. Market Your Makeup Product Line to Potential Customers
Before you start selling your products and services, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the makeup product line industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Makeup product line businesses should consider the following promotional strategies for which you should start getting prepared:
- Traditional print advertising in magazines and newspapers
- Online advertising: Google AdWords, Yahoo! and other online advertising networks
- Sponsor events or partnering with other brands to sponsor events
- Distribute product samples to potential customers
- Set up a booth at trade shows and conventions
- Distribute brochures in public places
- Create a consumer marketing video to showcases your makeup product line
- Develop relationships with bloggers and reviewers to promote the makeup products
- Offer discounts and special promotions to attract new customers
- Conduct market research to better understand the needs of potential customers
Read our article about how to market your makeup product line business for more tips.
9. Get New Customers & Grow Your Business
When you promote your products and services, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your makeup line.
Read our article about how to effectively grow your makeup product line business to learn more.
Starting a Makeup Product Line FAQs
The cosmetic products industry is a booming business, with global sales expected to reach $360 billion by 2025. There are many reasons to start a makeup product line, but the most common include the following:
- To follow your passion for makeup and beauty
- To be your own boss and have control over your career
- To make money and achieve financial independence
- To make a difference in the lives of others by helping them feel more confident
- To create products that you believe are missing from the marketplace
- To have fun and be creative!
There are a few key things you need to start a successful makeup line, including:
- A great product. Your makeup products must be of the highest quality to meet the needs of your target market.
- An effective marketing strategy. Let people know about your products and why they need them.
- A strong team. As your business grows, you'll need talented staff who can help you take your business to the next level.
- A well-executed business plan. This document will guide you through the process of starting and growing your business.
There are a number of ways to market a makeup product line online, including:
- Creating a website and blog. These will showcase your products and your brand story.
- Using social media. Use Facebook, Twitter, Instagram and Snapchat to connect with potential customers and build brand awareness.
- Creating videos. Show off your products and educate customers about your brand.
- Partnering with influencers. Influencers who have a large following can help you reach a wider audience.
- Advertising online. Google AdWords and Facebook Ads can help you reach potential customers searching for makeup products online.
- Creating email newsletters. This is a great way to keep customers and prospects up-to-date on new products, sales and other news from your company.
- Hosting events. Connect with potential customers and build relationships with influencers and industry professionals.
- Offering discounts and promotions. Attract new customers and generate sales.
- Conducting market research. Understand the needs of your target market and develop products that meet those needs.
If you're thinking about starting a makeup line, here are a few tips to help you get started:
- Research the market. Educate yourself and understand your target market.
- Develop a business plan. This is your roadmap for starting and growing your business.
- Create a strong team. Hire talented individuals who can help grow your business.
- Find a niche market. Focus on a specific niche market that you can serve well.
- Develop high-quality products. Meet the needs of your target market.
- Create an effective marketing strategy. Let people know about your products and why they need them.
- Focus on customer service. Provide outstanding customer service to build loyalty and repeat business.
- Measure your results. Track your progress and adjust your strategies based on your results.
A simple checklist to use when starting a makeup product line is as follows:
- Name Your Makeup Product Line: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Makeup Product Line Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Makeup Product Line Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Makeup Product Line to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products and services they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products and services.
Starting a makeup product line can be a rewarding and profitable endeavor, but it’s important to do your homework first. Focus on customer service and marketing to attract and retain customers. With hard work and dedication, you can build a successful makeup product line.