Interested in small cosmetics business ideas? If YES, here is how to open a cosmetics company with no money and no experience. How much does it cost to open one?
How to Start a Cosmetics Product Company
Do you have the mindset to start a cosmetics company but you are looking for guidance on how to go about it? In this post, I will be sharing with you everything you will need to know about cosmetic and how to start a cosmetics company that might eventually become a success if you possess the entrepreneurial skill to manage a business.
The history of cosmetics spans at least 6000 years ago and it is present in almost every society on earth. Cosmetics can be described as a preparation applied to the body especially the face to improve its appearance. Cosmetics have been in use in our societies for a very long time.
Before I take you through how to start a cosmetics company, let me inform you that cosmetic products can be grouped as follows:
There are various range of makeup products and they include;
- Concealer: This is used to hide under eye circles and cover blemishes.
- Foundation: This is used to even skin tone.
- Blush: This adds color to the cheeks.
- Mascara: This defines eye and enhances lashes.
- Lipstick: This adds color to the lips.
- Eye Shadow: This add depths to the eyes.
Others make up products include Highlighter, contour, primer, lip liner, bronzed, etc.
Personal Care Products
These include cleansing pads, colognes, cotton swaps, cotton pads, deodorants, facial tissue, shaving cream, moisturizers, tooth paste, wet wipes etc.
Hair products include hair cream, shampoo, conditioner, hair mousse, hair color and a host of other products.
Hand and Nail Products
These products include hand protector, nail and cuticle oil, hand cream, conditioning hand wash, hand sanitizer, nail colors, nail polish, nail shiner and others.
Just like every other industry, the cosmetic industry has different departments whose aim ranges from producing to delivering cosmetic products to their consumers. To start a cosmetic industry, you will need to choose the department you will want to specialize on.
Here are the various departments:
- Production: This department performs duties which ranges from production planning and scheduling to control and supervision of the production workforce to managing product quality.
- Research and Development: This is concerned with developing new products or processes and improving existing products or processes.
- Purchasing: This department is concerned with acquiring goods and services for use by the organization.
- Marketing: This department is concerned with identifying and satisfying customer needs at the right price.
- Human Resource: This department is concerned with all aspects of employee relations and welfare.
These various departments work hand in hand to produce and deliver cosmetic products to consumers.
How to Start a Cosmetics Company?
Starting a cosmetic company does not necessarily entail immediate production of the cosmetic products. One can concentrate one aspect/department of the industry, grow in it and then expand to other aspects.
With the modern trends in fashion and beauty in our world today, cosmetics have become an essential need in the lives of individuals today. People are more aware of cosmetic products and so, it is right to say that these products, most times, market themselves. The question to look good and smell good has turned the cosmetic industry into a million-dollar industry.
Marketing of a known brand of cosmetics is a good step towards earning from the cosmetic industry. There are various known and trusted brands like L’Oreal, Mary Kay etc. These products have stood the test of time and have millions of consumers. Selling these products either in whole sale or retail quantities is also very profitable and another way to start your own cosmetics company as a wholesaler or retailer.
Currently, there is a demand for indigenous organic products. This is can be associated to many reasons of which one is that most of the foreign cosmetic products are not suitable for some skin types, hair types and personal hygiene needs due to difference in climate.
Most of these products are produced in countries with climates different from others and so are not suitable for consumers in hotter regions of the world. This is one reason why you need to start a cosmetic company in your country so that your people can happily patronize your products.
Another reason to start a cosmetic company is that the high cost of products has made consumers to seek cheaper substitutes and alternatives. Apart from the high cost, some of these imported products are not readily available and can be scared.
So, whatever department of the cosmetic industry you want to venture into, you will need the following;
- A business name which must be registered with the appropriate authority.
- A well-detailed business plan
- A suitable location/office where you will be operating from.
- Capital—but, if you don’t have the needed capital, you can go seek for investors or loan from banks or any financial institutions using your business plan.
- A good marketing plan for promoting your products and converting leads to customers.
A feasibility study and research on existing cosmetic products and brands will be a good step to take towards starting a cosmetic company. The gap that exists amongst the existing cosmetic products should be explored. Depending on the interest of the entrepreneur and the available resources, a choice will have to be made between marketing of already existing brands and producing a new line of cosmetic products.
The cosmetic industry is a very profitable industry especially in Africa where a large percentage of the population are young women with the need to enhance their appearance. Make the decision today, start a cosmetic company now!