Starting a beauty brand can be an extremely lucrative business venture. However, there are a number of things you need to know in order to make your business successful.
Here are the 10 steps you can take to get started on building your very own beauty brand.
10 Steps to Launching a New Beauty Brand Business
1. Choose Your Type of Beauty Brand Business
The first step in launching a beauty brand is to identify the type of beauty brand you want to launch. You might choose from the following types, among others:
- Nail products
- Hair care
2. Name Your Beauty Brand Business
Give your beauty brand an identity so people will think of it as a well-known and respected brand. You can take the name of your beauty brand from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your beauty brand is to make it sound appealing and trustworthy so that potential customers will be more likely to buy your products.
3. Determine Your Beauty Brand Business Model
There are several possible types of business models for a beauty brand including:
- Direct selling
- Online retailing
- Home parties
- Beauty salons and spas
- Department stores
No matter which model you choose, make sure that it aligns with your business goals and the products and services you offer.
4. Choose a Legal Form for Your Business
By incorporating your beauty brand, 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 beauty brand 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 beauty brand business structures.
5. Write a Beauty Brand Business Plan
All beauty brand 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 beauty brand business plan and strategy, you should think about the following questions your customers might have:
- What type of beauty brand do you offer?
- Are your products and services available online or in stores?
- Do you offer any discounts/promotions?
- Do you have a physical store location(s)?
- Are your products organic/natural/sustainably produced?
- What are the shipping costs for orders?
- Do you accept returns?
Read our article about how to write a beauty brand business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your beauty brand.
For example, if you’re planning on running a brick-and-mortar store, you’ll likely need a business license, as well as a seller’s permit.
You must also register your beauty brand 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 beauty brand business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your beauty brand 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 beauty brand, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your beauty brand include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a beauty brand business to help you determine if funding is needed.
Read our article about how to fund your beauty brand business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your beauty brand, 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 a CRM (customer relationship management) system to manage your customer data and interactions. A POS (point of sale) system is also necessary if you have a brick-and-mortar store so you can accept credit card payments.
9. Market Your Beauty Brand Business 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 beauty brand 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. Beauty brand businesses should consider the following promotional strategies for which you should start getting prepared:
- Host a contest on social media for the best beauty look using your branded products
- Give a free sample of your products with each purchase
- Run a promotion for a free product with purchase
- Write blog posts and articles about the benefits of using your products
- Make a short video about your brand and post it on social media
- Create an infographic about common beauty myths and share it on social media
- Hold a training session to train users to use your products correctly
- Sponsor or participate in an event related to the beauty industry
- Give a discount to customers who refer friends to your business
Read our article about how to market your beauty brand business for more tips.
10. 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 beauty brand.
Starting a Beauty Brand FAQs
The beauty industry is a great option for entrepreneurs because it’s a growing industry with high demand. According to the National Retail Federation, the global beauty and personal care market was expected to reach $632 billion by 2020.
There are also many opportunities for entrepreneurs who want to start a beauty brand. For example, you can start a beauty brand that focuses on natural or organic products, or you can start a beauty brand that caters to a specific demographic, such as men who want grooming products, professional women who want a polished look, or seniors who want to appear youthful.
To start a successful beauty brand, you need to have the right technology in place to maximize efficiency. You also need to market your business to potential customers and establish systems to ensure consistency and reduce costs. Finally, you need to find and train the right people to help you grow your business.
To market a beauty brand online, you should start by creating a website and then promoting it through social media channels like Facebook, LinkedIn and Twitter. You should also consider networking with other people in the beauty industry through social media and blogs so they can help share your business. Additionally, you should make sure you have the materials needed to execute your promotional strategy, which should include a mix of online and offline marketing tactics.
Some tips for starting a beauty brand include:
- Decide what type of products you want to sell
- Find a niche market to target
- Create a branding strategy
- Invest in the right technology
- Promote your business through social media and other channels
- Establish systems to ensure consistency and reduce costs
- Find and train the right people to help you grow your business
A simple checklist to use when starting a beauty brand is as follows:
- Choose Your Type of Beauty Brand: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Beauty Brand: 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 Beauty Brand Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Beauty Brand 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 Beauty Brand 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 beauty brand can be a rewarding experience, but it’s important to understand the process and have a solid plan in place before getting started. Additionally, be sure to establish systems to ensure consistency and reduce costs. Find and train the right people to help you grow your business. Use this checklist to ensure that you have all of your bases covered before launching your beauty brand.