From Passion to Profit: How to Start a Makeup Business

November 26, 2024

11 MIN READ

Contents

    Do you have a passion for makeup and beauty? Dream of starting your very own makeup business but feel a bit lost on where to start? We get it.

    Starting a cosmetic business is not something you do on a whim. It requires careful planning, sourcing, figuring out your marketing angle and branding, sales strategy . . . The list goes on. But with the right system, you can transform your dream into reality from the comfort of your home.

    Whether you’re a freelance makeup artist eager to expand your passion into a business, a stay-at-home parent looking to create a new income stream, or someone who loves the beauty community and wants to be a part of it—our step-by-step guide will help you navigate the journey to starting your dream makeup business.

    Vivica A. Fox saying "Let's do this"
    Vivica A. Fox saying "Let's do this"

    Status quo of the beauty industry

    Before diving into the cosmetics industry, let’s take a moment to fully understand the industry and all its nuances.

    The cosmetics landscape is competitive, and we won’t sugarcoat that. By the end of 2024, the US beauty industry is projected to surpass a staggering $100 billion. While it may seem like a crowded space, there’s still an opportunity for your makeup business to shine and make a mark.

    Success in any business requires a genuine commitment of time and dedication. However, when you’re truly passionate about your craft, every effort feels rewarding rather than burdensome.

    How to start a makeup business: 11-step guide

    The best way to go about this is by making your own business checklist. Use the steps below as a guide on what can be included in your plan.

    1. Research the cosmetic market

    Research the cosmetics industry to better understand the market and your competitors. Analyze current trends and take a look at what was trending over the last few years.

    When looking at your competitors, do a deep dive into their audience and main offer, what sort of marketing strategies they use, and what they’re lacking. Use the information you gather to help pinpoint any potential gaps in the cosmetic market that you could position your brand in.

    If you're a makeup artist, study the journeys of successful makeup artists and beauty influencers to get ideas and be inspired for your own beauty brand.

    2. Find a niche

    Once you've delved into the makeup landscape and had a look at how other beauty brands are conducting successful businesses, it's time to hone in on a specific niche.

    What you choose as your niche is entirely up to you. You might have noticed some gaps in business offers for a certain product, ingredient, or type of packaging—whatever it may be, use it to carve out a specific place under the sun for your makeup business.

    Having a niche allows you to target customers with a specific need or want. And it can also help with marketing your beauty products as an answer to your audience's problems.

    Shakeup Cosmetics normalizing makeup and skincare use for men
    Shakeup Cosmetics normalizing makeup and skincare use for men

    For example, you might choose to position your beauty brand as being environmentally conscious for those who seek eco-friendly packaging for their beauty products. Or, maybe you noticed a lack of SPF products to cater to those with sensitive skin, so you choose fragrance-free SPF as your niche.

    Trends and consumer needs change rapidly, so it's crucial to stay on top of what's trending and be open to adapting to change.

    3. Create a business plan

    Developing a business plan for your makeup company is worth the time and effort. Your business plan should define your business model, as well as outline your why. Why are you setting off on this journey? Why does it need to succeed?

    Having a strong why will be important to refer back to down the line if things get stressful or difficult.

    You can include an estimated budget and financial plan here, too. This can be used to estimate startup costs, note predicted income and expenditure, and any funding options that may be available to you. It's okay not to know all the expenses at this point. You can go back and add to your business plan once you have product sourcing figured out (see step 7).

    Finally, create a mission statement that outlines your business’s core purpose and values.

    4. Craft your brand identity

    Create a unique brand identity that will set your business apart from the rest of the beauty industry.

    Your brand identity encompasses everything from your values and goals to your brand voice and product labels. Your branding is what your customers associate with your company, so make sure it’s something they can resonate with.

    When considering your visual brand identity, be consistent across all platforms. This includes your online storefront, social media channels, and product labels. From logos and color palettes to your overall brand aesthetic, allow yourself to have fun while discovering what your brand identity will look like.

    If design isn’t really your thing, consider branding services or a designer to help you create your brand.

    Curating a cohesive brand identity can garner a loyal following and build a solid long-term foundation for your beauty business.

    Rare Beauty is a great example of a company that has built a strong emotional connection with its audience. The brand, founded by Selena Gomez, emphasizes the importance of natural beauty and encourages people to embrace their imperfections. Rare Beauty’s marketing campaigns feature real, diverse people rather than traditional models, which makes the brand feel more authentic and relatable.

    Rare Beauty founder Selena Gomez and her product line
    Rare Beauty founder Selena Gomez and her product line

    5. Decide on product packaging

    How you package your products is just as important as the products themselves. Consider the type of materials you want to use for your packaging.

    You want your packaging to be functional yet visually appealing. Consider where you stand regarding the environmental impact of how you package your products. Using recyclable materials and being plastic-free is a non-negotiable for many buyers nowadays.

    By prioritizing using eco-friendly packaging you'll attract a new wave of environmentally-conscious customers.

    Benefit has unique, colorful, retro packaging for all of their products.
    Benefit has unique, colorful, retro packaging for all of their products

    Take inspiration from other makeup brands, but don't copy. Most importantly, ensure your packaging is clear and legible. You want your customers to recognize your makeup line immediately.

    Finding your product packaging will be trial and error, so don't feel the need to rush the process.

    6. Register your business

    When entering the cosmetic industry, you first need to choose a business structure that fits your needs, such as a sole proprietorship or limited liability company (LLC). Consider the pros and cons of each business structure, including liability protection and tax implications.

    You must decide if you'll be selling makeup online, or if you want to have a physical store. The processes and requirements will vary based on which one you choose.

    You must register your business with the state and obtain the necessary permits and licenses. It's your due diligence to do your research on your particular state laws so you can ensure you're operating your business legally and adhering to local requirements.

    Jessica Alba on becoming an entrepreneur
    Jessica Alba on becoming an entrepreneur

    You’ll likely need certain permits and licenses to sell your products, depending on your location and where you plan to sell. Look at the US Small Business Administration guide and your Department of State website to learn about federal and state permits.

    Finally, you'll need to apply for a federal EIN (employer identification number) from the Internal Revenue Service. You can apply online via the IRS website.

    7. Figure out product development and sourcing

    Once you've covered all the legal bits, it's now time to think about how you're going to source and manufacture products for your business.

    You can choose to source suppliers and manufacturers all by yourself, but this can be very time-consuming and stressful. Another option would be to work with a dropshipping company, where they take care of all of the manufacturing processes so you don't have to.

    Teaming up with a manufacturing partner such as Supliful makes launching a beauty brand from your home super easy. The dropshipping business model is ideal for entrepreneurs who are looking to launch a small business from home.

    A small glimpse of skincare and beauty products from Supliful's white-label product catalog
    A small glimpse of skincare and beauty products from Supliful's white-label product catalog

    Supliful offers a wide range of private-label skincare, beauty, and wellness products. You just have to pick the products you want to sell, add your branding to them, list the products on your Shopify store, and that's it! Your job is to attract customers, and once someone places an order, Supliful will fulfill it under your brand. Simple as that.

    Benefits of private-label dropshipping

    There are many, but we'll name a few of the most important ones.

    No startup costs

    Starting a cosmetic business with no money isn't impossible. In fact, with dropshipping it's easy! You don't need to invest in inventory upfront. Instead, your supplier handles inventory and shipping, significantly reducing the money required to start your cosmetic business.

    No inventory

    Since you won't have to hold inventory, you won't need storage space to hold all your products. his is particularly helpful in the makeup industry where trends come and go, and product shelf life is a concern. With Supliful, you're not required to hold inventory and you'll only be charged when a product actually sells. That means no losing money on unsold inventory. And skipping paying thousands on warehousing.

    Easy to launch new products

    Dropshipping gives you the ability to quickly test new beauty products or collections and start selling right away. If a product doesn't perform well, you can remove it from your store without losing money.

    No shipping hassles

    The supplier manages warehousing, packing, and shipping. This saves you time and resources that you can reinvest into growing your beauty brand.

    8. Seek funding and financing opportunities

    If you decide to source your own products and manufacture in-house, then you'll have to think about some seed money. Starting a cosmetic business may require you to dip into your own savings to get the ball rolling. However, you may also be eligible for certain business grants depending on the type of business you operate.

    Here are just some of the ways you can access funding to help support your new business.

    • Small business grants. These will have certain eligibility criteria that you and your cosmetic business will need to meet. Consider applying for grants or loans from local organizations or the Small Business Administration.
    • Friends and family. You could ask friends or family members for a loan or an investment in your company. Just be sure to repay them on time to avoid any feuds!
    • Loans. You could try to get a business loan from your bank if you need help with things like funding stock supply.
    • Ecommerce loans. Some ecommerce platforms like Shopify offer loans to sellers based on their selling performance. This is a great option if you've already gotten some sales under your belt, but would like more funding to expand your beauty business.
    • Investors. In exchange for a percentage share of your company, angel investors and venture capitalists can provide you with money to put into your company. You'll need to approach them with a financial plan that outlines your costs, revenue projections, and funding options.

    9. Set up your online store

    You can choose to sell your products online or in person. Selling online is a much easier route to take for small business owners. Primarily because you don't need to invest in inventory, rest for your store, and other costs that come with having a physical retail space.

    If you choose to partner with a supplier like Supliful, it's even easier to sell your products and make money from home.

    Regardless of which you choose, it’s essential to have a professional website. This is a way for you to build credibility and encourage people to buy your products.

    If web design isn't your thing, you can hire web designer services to create and set up your online shop. Alternatively, use already existing store layouts and designs on Shopify to bring your online store to life.

    Shopify online store themes
    Shopify online store themes

    10. Do marketing for your cosmetic business

    Now that you have all the tips to start a cosmetic business, it's time to shift your focus to how you're going to market your beauty brand.

    Developing a strong marketing strategy that speaks to your target audience and is consistent with your brand is paramount. Having great products and pretty packaging won't cut it.

    To successfully market your beauty products and grow your following, you'll need to leverage social media to reach your target market. With so many established beauty brands already out there, you need to find a way to make your makeup business stand out.

    How to market your cosmetic business

    When it comes to marketing skincare and makeup products, we know a thing or two. Marketing is the fun part, so don't be afraid to let loose and play around with your how you promote your makeup business. Here are our top tips for a successful marketing strategy.

    Social media marketing

    A good place to start is creating a solid strategy for marketing on social media. Social media is a very powerful tool that can boost brand awareness and generate sales.

    To plan your marketing strategy, you'll need to examine your target audience to see what apps they're using and what kind of content they consume.

    Fun and quirky content by Benefit Cosmetics
    Fun and quirky content by Benefit Cosmetics

    Create content that will get people excited. For a cosmetics business, you could create content such as behind-the-scenes clips, a day in the life of a small business owner, or how-to videos using your products. Your content should be engaging, informative, but most importantly consistent.

    Research how other established brands are doing their marketing and take notes. Many brands stay on top of the latest trends and create content accordingly. Joining in on viral trends has the potential to skyrocket your business and grow your following.

    Influencer marketing

    Consumers are easily influenced, and that's what makes influencer marketing such a lucrative strategy for growing your small makeup business.

    Connect with beauty influencers to promote your business by having them make content using your products. Reaching out to micro-influencers is a great place to start on a budget.

    Not only do they usually come with a smaller fee, but they tend to have a more engaged audience, boosting your chances of attracting new customers and growing your online following.

    Find beauty creators that align with your brand and values. Types of content they could make include unboxing, first impressions, and "get ready with me" makeup tutorials using your products.

    UGC (User Generated Content)

    Encourage your customers to share photos and videos of themselves using your products online. Feature these on your social media and website and you can reward customers who post about your products with a discount or free shipping on their next purchase.

    Develop a branded hashtag and encourage customers to use it when posting their makeup looks or reviews. This can increase brand visibility and build a strong community base.

    Rhode regularly reposts user content on their socials
    Rhode regularly reposts user content on their socials

    You don't need to have a budget like Charlotte Tilbury's to run a successful marketing campaign.

    Be consistent with your content and stay on top of current trends. Constantly monitor skincare trends, which videos are performing well, and which ones aren't. You can adjust your marketing strategy accordingly.

    11. Grow your business

    If you want to be in this game for the long run, then it's crucial to continually monitor and adjust your business to ensure its success. Use analytics tools to track your website traffic, social media engagement, and sales conversions.

    Your business venture would be nothing without your customers. Make the effort to engage with your buyers online, showing them behind-the-scenes clips and rewarding loyal customers with discount codes and sneak peeks of new launches.

    Build an online community that will have your back no matter what. Create a safe space in the beauty community where your customers can ask questions and learn about your products. Seek out customer feedback to make your products bigger and better than ever.

    Start your cosmetics business today!

    Starting a cosmetic business from home can be a super rewarding yet challenging endeavor.

    As long as your business venture is driven by genuine passion, there's no reason why you can't have your dream beauty business and thrive in the cosmetics industry.

    Once you understand who your target audience is, it's a matter of crafting an innovative marketing strategy to show your audience why they need your products. Nurture your online community and value your customer feedback so that you're constantly improving.

    By following our steps in this comprehensive guide, you'll be well on your way to growing a successful business.

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