Do you use lip gloss? If you do, you are not alone. According to Statista, lip gloss sales in 2018 ranged from over 10 million to over 18 million dollars across various major vendors.
That fact alone means that millions to billions of people buy and use lip gloss every year.
Lip glosses are not just for shiny lips today. Some are used to soften, protect, and prevent chapped lips, and that is just one use for lip gloss.
Regardless of the type of lip gloss you make, it is a very popular cosmetic still today.
If you are considering starting your own lip gloss business because you have a passion for cosmetics and specifically lip gloss, you can almost bet this business has a lot of potential.
You can start this kind of business with low start-up costs and yield some potentially amazing profits.
Let the following information be your guide for building a successful lip gloss business.
How to Start a Lip Gloss Business
1. Learn the Industry
According to Prescient & Strategic Intelligence, the forecast for the general lipstick market is valued at $10 billion by the year 2024.
Understanding the lipstick, lip balm, lip stain, lip liner, and lip gloss are all part of the lipstick market should tell you that this is a good business to start.
Female entrepreneurship is in a boom right now, so your chances of growth in this industry is high.
Some trends in the beauty industry:
- Eco-friendly solutions
- Organic ingredients
- Beauty products that do not use animal testing
2. Hone Your Plan
Once you decide that starting your own lip gloss business is what you want to do, you must hone your plan. Here are some steps to take for that.
Why? Identify Lip Gloss Trends and Opportunities:
Look at the latest trends, like organic ingredients. Other trends may relate to lip gloss look, texture, features, colors, and even glitter or shimmer.
What? Decide on What Products or Services You Will Offer:
What will you focus on with your lip gloss to make it stand out? It could relate to lip gloss types, colors, or flavors.
How Much? Pricing Your Lip Gloss:
The overall average of lip gloss pricing falls at about $5. At first, you should be highly competitive, so price at the lower end of the range.
Who? Target Audience:
Younger people will be your target market. Most of them will be female, though you will have a mix of young people and older people buying lip gloss.
The main sites you can focus on for marketing will be social media like TikTok and Instagram.
Where? Your Location and Operational Premises:
Early on, you will likely just operate your lip gloss business out of your home to keep overhead down.
3. Name Your Business
The name of your new business/brand should be short and easy to remember because a lot of your business will come from word-of-mouth referrals.
Here are some brainstorming ideas to help you get started:
- Catchy, unique, short names
- Easy to spell and say
- Avoid location-centric names
- Use online business name generators
4. Business Plan
Everyone who plans to start a business needs a business plan. It will help you with your startup and launch by helping you keep your focus.
It also helps potential investors or partners understand your vision for the company.
5. Business Registration
Based on the United States laws, getting your business registered is an essential step in this process.
It is a prerequisite for business taxes, opening a business bank account, raising capital, and other elements of starting your business and getting it operational.
Bonus: Your business registration makes your business official.
6. Funding Your Business
Getting the financing you require for your business is your next step. Here are a few ways to get funding.
- Personal funds
Your country or region will likely have resources for business loans and funding that you will want to find out about.
7. Apply for Permits and Licenses
Do not skip this step, since it is an essential requirement for small business owners to operate legally. You could incur large penalties if you skip this step.
If you are unsure of how this all works, you can contact a professional.
8. Open Your Business Bank Account
Before you even begin to make money, you need a place to store it. That means opening a business bank account.
You should keep your business and personal finances separate.
9. Purchase Business Insurance Cover
Business insurance cover is often neglected, but it is so important to protecting yourself. It should be part of every business’ contingency planning, since it offers protections for unexpected events that could potentially cause you to close your doors.
10. Launching Your Business
Before you fully launch your business, you should take a few prelaunch steps to improve your business success.
Your online presence is where you will build your credibility, reputation, and authority online. Also, your Google ranking is determined by your SEO (Search Engine Optimization).
You want to be on the first page, preferably the top results on the major search engines.
Basic Tools and Software
Whether you are working alone or with a small team of people, there are things to do that will improve your business presence.
Sales, marketing, accounting, and digital marketing are all part of what you will be doing to get attention to your business.
After your website goes live, be sure to add your link to your social media accounts and link your social media accounts to your website.
Your goals for social media marketing include creating relevant and unique content that will engage your target audience.
You can use accounting software or hire a professional to help you with accounting for your lip gloss business.
- Base(s) for your lip gloss, plus other ingredients
- Lip gloss tubes
- Product labels
Starting up a lip gloss business for yourself is an amazing opportunity to do something fun that you enjoy, while earning good profits. Also, you do not require a lot of start up money.
The lip gloss industry is a huge market that continues to grow and provide plenty of potential to start small, but think big. Potentially, this market can turn into a huge company.