How To Start A Beauty Supply Business In 2023
Searching on how to start a beauty supply business? From choosing your product niche to planning your distribution method, there are several key steps to consider when opening a beauty supply business.
If you’re looking to launch a makeup or general beauty business that’s ready to grow, starting a beauty products company might be a good fit. The beauty industry is currently a billion dollar industry and is expected to grow by 11.3% by 2026. Here are five steps to take when starting a beauty supply business.
Decide what type of beauty company you will start
The first step is to decide the type of business you want to run. Most people choose to start a physical business or launch an eCommerce business. Both options have advantages and disadvantages, and the right choice for you really depends on your customer base.
For example, two-thirds of millennials prefer to shop on an e-commerce platform rather than visit a physical store. By comparison, only 41% of baby boomers prefer to buy products online.
So if you’re planning to cater to a younger audience, focusing on eCommerce may be the way to go.
Find out what licenses and permits you will need
There are certain licenses and permits that you will need before getting started. The exact requirements will depend on the state you live in and your legal business structure. But, at a minimum, you will need to apply for the following four licenses :
- Retailer’s Permit: This license allows you to legally sell products for tax purposes. You can apply on your state government website.
- Business Operating License: This license allows you to do business in your state and costs between $50 and $100. You will need to renew this license annually.
- Certificate of habitability: This permit is only necessary for physical companies. It shows that your property is suitable for conducting business.
- Federal EIN: You can apply for an Employer Identification Number (EIN) for free on the IRS website.
A business plan outlines the products you plan to offer, explains how you will stand out from the competition, and includes a marketing plan.
Choose the type of products you will offer
Next, you’ll decide what kind of products you plan to offer your customers. You can get ideas by looking at Google Trends or fashion blogs and magazines to see what types of products have a high level of interest.
At first, it’s a good idea to focus on just a few different types of products. Focus on a particular niche, like cruelty-free makeup, and as you start to build a customer base, you can branch out into other areas.
Determine how you will distribute your products
Another important factor to consider is how you will distribute your products. For example, if you don’t want to keep inventory, you may want to operate a drop shipping model.
With this business model, a customer will place an order online, and you will submit that information directly to the supplier. From there, the supplier will ship the products directly to the customer. This is an easier way to run your business, but you will have less control over the quality of the products and any errors made during shipping.
You can also choose a manufacturing option, in which the products are made specifically for your business and you have the legal rights to sell those products. However, it can be difficult to find the right manufacturer to partner with.
Prepare a business plan
And finally, you will need to outline a detailed business plan. Writing a business plan can be tedious, but it will give you a lot of clarity about your business and will come in handy if you’re ever looking for investors or applying for a small business loan.
Read Also: How to Start Clothes Selling Business And Scale Up
A business plan outlines the products you plan to offer, explains how you will stand out from the competition, and includes a marketing plan.
