Good Businesses to Start

Starting a Cosmetics Line

Written by Angela Ly for Gaebler Ventures

Many entrepreneurs start their own cosmetics lines. We offer advice on how to gain market share in the beauty industry.

In the billion dollar beauty industry, we see new products, new brands on a regular basis.

There are so many choices for (mostly) women out there that we are spoilt for choice. Yet, there are only a select number of businesses that really deliver what they promise.

Starting a cosmetics line is not as capital-intensive as many people think it is. In fact, there are several examples of inexpensive homemade products that made it big in the cosmetics market. If you are familiar with using cosmetics, it is in fact, one of the easiest businesses to start.

But before you jump on the beauty bandwagon, here are some tips on what will make your cosmetics business successful:

1. Do your research well

You don't have to have a chemistry degree or a dermatology certificate to be able to know what ingredients you should have in your products. Often, beauty entrepreneurs have their own favourite products, and have ideas on how to improve them.

You don't need to set up a laboratory or a manufacturing plant. You can source for a trusted manufacturer of cosmetics products if you are not opting for the homemade option. Before you start to get worried about costs, do your research on the manufacturers available, and speak to them about a possible agreement.

2. Make products that really work

You should also read scientific papers and journals that discuss cosmetic ingredients. You want to use proven facts and tested ingredients in your products, because you don't want to simply sell a copied product. Understand allergies and common irritants. Recognise ingredients and be aware of their purpose for being in the product in the first place.

People will continue buying products that really work. This is the most important tip you should remember. It's not about how complex the formula is. It's about whether your product does what it claims. The power of word-of-mouth reviews is astonishing.

3. Clever marketing is a bonus but not essential

There's no doubt that cute packaging attracts attention. And why not inject some fun into your products? What we are trying to emphasize here, is that nice packaging and advertisements do not replace the priority of making quality products. Even if swarms of customers rush to buy your heavily advertised product, they may give up on it if they see no results.

4. Reach out to your customers

If you want to test the market before investing in mall booths, a popular way of selling products these days is online. You can do some advertising through social networks, and try to gain referrals from beauty forums. The online platform is a great way for people to get to know your brand and your product.

5. Maintain a good and reliable reputation

Never compromise on the quality of your products. Safety is an issue you need to keep in mind. Make sure that your manufacturer is inspected and audited. A negative incident will hurt your business even if your products work well.

Angela is currently an MBA student at Nanyang Technological University in Singapore. Ms. Ly is looking to specialise in Finance, and has an interest in exploring topics in entrepreneurship and strategies for small businesses.

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  • Jaymie Lee posted on 4/30/2010
    Jaymie Lee
    Great article! thanks for the tips on how to get into the cosmetics business!

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