Start a Cosmetics Company

Summary: Think that cosmetics business is expensive to start? Not necessarily so. You can actually make selling cosmetics a home business. Find out the ways you can engage in this business, at how much items are usually marked up, what product lines you can start, and where you can get raw materials.

Men, women, teens and children all need cosmetics. As such, it is assured that any cosmetic business would have a sure market to target. If you are planning to start a cosmetics company, you can do so in several ways.

Cosmetics Business to Start

The impression is that a cosmetics company is an expensive business to start. However, belying common assumption, you can actually start a home-based cosmetics manufacturing. You can make soaps, lotions and oils at home and sell them through small retail stores on consignments, at kiosks in malls, in your house, or in a rented space. The equipment and raw materials will cost only a few hundred dollars. Or you can approach a contract manufacturer to do make a line of cosmetics for you under your label. A contract manufacturer will fill your needs from producing to designing your label and packaging the product. Still another way is to represent or distribute the products of a cosmetic manufacturer in an area where they still have no presence.

Cosmetics Product Line

Here’s a long list of products you can sell: soaps, oils, masques, lotions, lip balms and glosses, lipstick, body powder, shampoos, hair conditioners, bubble baths, deodorant, scrubs, blush, eye shadow, eyeliner, makeup remover, mascara, foundation, perfumes, nail polishes, mouthwashes, douches, anti-aging cream, aftershave, massage lotions, stretch mark lotion, and moisturizers. Sometimes, what it takes to succeed in this kind of business is a little twist: just improve on an existing cosmetic, and if the product becomes a hit, you will be rewarded greatly. Also, you can add in your merchandise miscellaneous items like purses and lingerie to boost profit.
You can offer a variety of products or you can specialize on those targeting specific markets: teens, babies, those interested in all-natural toiletries, those of darker skin color or those who prefer cosmetics with herbal additives.

Cosmetics Company Startup Cost and Profit

How much you should invest to start the business would depend on whether you will be making the products yourselves and at what capacity; or you will be outsourcing the job. Cosmetics manufactured by private label manufacturer could cost as low as $0.10 per item. And the good news is you can sell the items at several times their original manufacturing cost. Lipsticks are sold at an average of $11. For a home-based business, you can start with just about $1,000.

Cosmetics Business has an easy-to-use guide in buying raw materials, and supplies; in finding a contract manufacturer; and in finding suppliers of cosmetic manufacturing and packaging equipment, containers, and closures.