How to start a makeup business

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.

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.

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.

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.

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.

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.

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.