Everything You Need to Know About Opening Your Own Cosmetic Brand
The cosmetic industry is one of the most profitable and lucrative fields you could ever do business in. If you’ve got a penchant for makeup and everything a beauty, then opening your own cosmetic brand is right up your alley. However, opening a business is no small accomplishment; there is plenty of work and planning involved. But you don’t have to go in alone. In this article, we’ll be covering everything you need to know about opening your own cosmetic brand.
Choose an Eye-Catching Name
Despite being highly rewarding, getting into the cosmetic sector can be pretty hard. There are so many aspiring makeup companies, it’s not easy finding your place in the industry. However, you’d be surprised how the little things can make a significant impact, like the name of the business. With the right name, it’s possible to attract more than your fair share of clients. When choosing a name, the first thing you need to do is ensure that you can use it. If someone else already has the name trademarked, you’ll have to continue brainstorming. Second, try to make your name as creative as possible. A great way to have a creative name for a makeup store is trying to center the name around its target market. It’s a great way to boost your brand identity and resonate with your audience more.
Decide on a Niche
There are so many business ideas for aspiring entrepreneurs and the makeup industry isn’t as simple as you might think. The field is not only complex, but also highly competitive. Rather than be another dime a dozen makeup store, you want to make yourself a trusted and well-known brand across the industry. There’s no better way to do so than by choosing a solid niche. Here’s a quick list of all the beauty niches you can consider:
This list is quite long, but what we have should give you a good idea of how in-depth the cosmetic industry is. Each niche has its own trials and tribulations, so you’ll need to do your research before going ahead.
Get the Necessary Funding
Before any business can be put together, you’ll need to procure the proper funding. Although the amount you need will vary on how you go about this, but the average cost of opening your cosmetic brand can range from $10,000 to $30,000. The expenses you’ll need to invest in includes advertising, getting the necessary supplies, acquiring the required certification, and licensing. If you’re looking to open your own in-person store, then your best bet to pay for all of this is a small business loan.
Small business loans give new business owners the money they need to get everything sorted while also having a few other benefits. These benefits include building up your credit score, establish a positive professional relationship with the lender and can save you money when filing taxes. When it comes to purchasing supplies and equipment, you can also take out a personal loan as well. Personal loans are a bit different as they can be used for any expenses rather than solely for business purposes. Just make sure your credit score is up to par with the lender’s standards.
Determine What Your Structure Will Be
Before you can legally operate and provide your cosmetics to the public, you must register your business with a specific structure. You can choose from sole proprietorship, partnership, corporation, or limited liability company (LLC). Each one comes with their pros and cons, but since you’re new to the business world, we cannot recommend choosing an LLC enough.
LLC combines the best aspects of the other three structures and combines them into a single entity. You’ll have full ownership as you would with a sole proprietorship, you can hire anyone like a partnership, and you have protection from personal liability like a corporation. Again, this is only a recommendation; you can go with whatever you think is best. Just remember that you need to research each structure before registering your business. You can switch your structure at any time, but at the cost of a filing fee.