How to Start a Lip Gloss Business
The beauty industry is growing by leaps and bounds! In 2017, 119.97 million U.S. women were using lipstick and lip gloss. In this day and age, starting a lip gloss line can be a rewarding venture for aspiring entrepreneurs. It's a great opportunity to build your brand and supplement your income.
Another option is to team up with lip gloss vendors and sell their products. This can be in a physical store or online. It all comes down to your budget and preferences. Before getting started, research the market, learn about the lip gloss manufacturing process and get a business license.
A lip gloss business can take many forms. You can sell popular brands, create your own brand or work as an affiliate. Each option has different requirements.
Starting a lip gloss line is the most rewarding yet challenging option. If you choose this path, search for private label lip gloss suppliers. Genie Supply, Audrey Morris Cosmetics and Your Name Pro are just a few to mention.
Most vendors provide starting kits for every taste and budget. These usually include a few hundred units of private label lip gloss, ingredient stickers and tubes in different sizes. Some also come with a logo and box design that you customize later on. Basic kits cost around $1,000.
After you receive the products, you can either sell them online or in a store. As your business grows, you can add new colors and styles to your lip gloss line. Legal requirements will depend on your location and type of business.
Since the FDA regulates cosmetics, make sure your products are safe and live up to the claims. If you sell private label lip gloss or existing brands produced in the U.S., these goods have already been approved by the FDA. However, if you manufacture your own cosmetics, it's necessary to ensure they meet quality and safety standards.
Be aware that labeling and packaging must not be deceptive. Any color additives used in your products need to be approved for the intended use. Even though it's not required to test your products and ingredients, you still need to make sure they are safe. For example, you cannot use the term "organic" unless your lip gloss contains at least 95-percent organic ingredients.
If you're planning to start an organic lip gloss business, check the USDA requirements. The term "organic" is not regulated by the FDA. However, any products that fall into this category must comply with both FDA regulations for safety and labeling requirements and USDA laws for the organic claim.
Next, decide how you are going to register your business. Popular options include a limited liability company (LLC), a partnership or a sole proprietorship. You could start with an LLC and convert it into an "S" business enterprise or a "C" company later down the road. This will allow you to compete with the big industry players and grow your lip gloss production.
Once you complete these steps, obtain a trade name certificate. If you're going to create your own lip gloss line, contact the FDA to find out what licenses you need. Whether you sell online or in a store, a business permit may be necessary depending on your state's laws. Also, you must apply for an Employer Identification Number (EIN) if you hire employees. This can be done online through the IRS website. You will also need property and liability insurance if you operate from a physical store.
Your business plan and marketing strategy will vary depending on how you decide to sell your products. If you choose to do it online, the costs will be lower. Focus on building a community around your brand.
Set up a professional-looking website – it's easy with Shopify, Square, Wix and other affordable DIYs – and list your products. Write engaging descriptions and be sure to feature several eye-catching, high-resolution photos of each item. If it's in your budget, consider hiring a model for full-face shots wearing your lip gloss, or simply lip shots featuring each of your lip colors. Be proactive on social media and engage with your fans regularly. Pinterest, Facebook and Instagram are all an excellent choice for promoting your lip gloss business.
If you decide to open a store, consider the set-up costs such as displays and decor and overhead such as rent, salaries and utilities. You will also need to advertise your business and get involved in the local community to gain exposure and spread the word about your new business.
Keep in mind that no matter how you set up your business, branding is everything. Advertise online, offer special discounts and build a solid social media presence. Team up with beauty salons, wellness centers and cosmetics associations. Encourage your customers and social media fans to spread the word about your products. Reward them with incentives and run fun contests.
Get super-creative with your marketing strategy and uniquely position yourself for success. You need to differentiate your business, stand out from the crowd, and your lip gloss business will thrive.