How to Start a Beauty Supply Store Business – Complete Guide

The need for high-quality beauty products is rising in today’s beauty-conscious society. Hence, establishing a beauty supply store can be a lucrative business taking advantage of this booming market. Here is a thorough guide to help you realise your dream of opening your beauty supplies store if you have a strong interest in skincare, haircare, and makeup.

The demand for beauty products and cosmetics has been rising for the last twenty years. That is why the beauty supply store Business can be very rewarding. If you plan properly, this business is going to earn you high revenue.

The global cosmetic market is estimated to reach 429.8 billion USD by 2022 and is expected to grow by 5.5%. Industry experts predict that the market volume is expected to reach 465 billion USD by the year 2026. Skincare products have the highest market share while oral cosmetics would be the fastest-growing market during this period.

The sale of cosmetics is seeing a shift from being traditionally purchased to buying online. Moreover, an increase in spending income, especially in developing countries is driving the market.

Beauty care products include skincare, haircare, make-up, perfume, deodorants, and toiletries as well as many others. This market is flourishing and the demand for beauty products is increasing with time.

14 Steps to Start a Beauty Supply Store Business 

1. Understand the Market

Like any other business, understanding the local market is critical in establishing a successful beauty supply store. Research the local market and collect information on the demand and trends of popular beauty products in the local community.

Prepare a specific set of questions. Take the help of an expert and conduct market research involving your target client. This will give you the real picture. The feedback will provide you with information about the gaps prevailing in the existing market and help in better planning.

2. Write Down Your Business Plan

First of all, write down all the aspects of your beauty supply store business Plan. These include the capital, and the budget for each head like rent, salaries of staff, procurement of products, advertising, and interior designing at one hand.

On the other hand, there are things like getting the suppliers’ names, demand for products, and financial projections.  Remember, planning makes you more prepared for the business.

Some of the basic topics that must be addressed in your beauty supply store pan document are the following:

• Initial and recurring costs
• Target customers
• Pricing plan
• How do you plan to promote your beauty products supply store?

3. Decide Your Slot

There are plenty of beauty products on the market. Think of some special aspects of your Beauty Supply Store Business. That is what range of products you are going to deal with. Do good research on their demand, price, availability, and target prospective customers. The more you know, the more your business will grow.

4. Register Business with Procure Licenses & Permits

Like all businesses, your Beauty Supply Store Business should also be registered. In the United States, you can opt for a proprietorship, partnership, or Limited Liability Company(LLC).

As per the law of the land, in the United States, you have to obtain the necessary license and permit.  For taxation, you have to get the Employer Identification Number (EIN). In addition, buy suitable liability insurance for your beauty supply store.

5. Beauty Supply Store Business Name

Find a suitable and attractive name for your Beauty Supply Store Business. The name should not be a common name like Glitz and Glamour or Beauty Point. Think of an innovative and appealing name like

• Charm Square
• Beautaholic
• Products Bonjour
• Beauty Jet.

Apply your imagination or take the help of a creative person.

Read: How to Name Your Business? Step-By-Step Guidelines

6. Choose the Location

The success of your beauty supply store business plan depends a lot on the location of the store. Do your research carefully keeping in mind the kind of products you are selling and its target client. The place should be conveniently located and near your clients.

Read: How to Choose a Retail Store Location

7. Select the Suppliers

Selecting the supplier plays a very important role in your beauty supply store business plan. You have to do good research on the list of suppliers for your kind of products, their availability, the discounts they offer, and so on. Try to have several suppliers so that you never run out of stock.

8. Interior Decoration of the Beauty Supply Store

The décor and design of the store play an important role in the success of a beauty supply store business. Try to take the help of a professional interior decorator, who will design your beauty supply store according to your budget, need, and customers.

Make it comfortable as customers prefer to spend a lot of time at the store before buying their items. The display of items and their proper placement in the racks are the key factors of your interior.

9. Create a Beauty Supply Store Inventory List

You must be very well aware of the stock of your beauty supply store. Make a proper inventory of the items according to their types, size, and price. Count the inventory regularly so that you don’t run out of stock. Compare the sales and track your stock from the stock register.

Take the help of software so that it becomes easier to track the movement of products in the inventory list. In this way, you will be able to assess the demand for goods in your beauty supply store.

10. Choosing Your Staff

You have to hire personnel for your beauty supply store business. Go for presentable and experienced persons in the case of the counter salesperson.  For accounting, you need an efficient accountant who can deal with stocks and the movement of products. However, the controlling point should always be with you. Otherwise, you cannot run the store efficiently.

Read: How To Hire The Right Employee for Your Small Business

11. Marketing and Publicity

Like any other business, your beauty supply store business also needs marketing strategies. You can use social media platforms like Twitter, Facebook, or Instagram for the campaign. Apart from that, Newspapers or TV ads, flyers, and banners are also effective.  Word-of-mouth publicity is very important in this business.

12. Promote Your Beauty Supply Store

As the head of the beauty supply store business, you have to be well aware of the products you are selling. Try to use most of them, so that you can give your customers a first-hand review. Attend different fairs and conferences to have an idea of different products. Offer discounts to your customers on various occasions like the festival, end of the season, shop’s anniversary, etc to attract more customers.

13. Create a Website

Try to make a website for your beauty supply store so that more and more customers get to know about your store. Advertise the products of your store and the discounts you are offering. You can also offer online sales options through your website. Keep a comment section to know the opinions of people about your store.

14. Be Patient

To make serious money, you need to give some time to developing the business. Don’t be in a hurry. It is advised not to expect profit in the first year of your business. If there is no major crackdown or economic slump, you will be able to see a profit from the second year.

In conclusion, we can surely expect, as this industry is rising upward, you can expect a good return from your beauty supply store business.

How to Create an Online Beauty Supplies Store

⇒ Choose Your Platform

Select an e-commerce platform or website builder to create your online store. Popular options include Shopify, WooCommerce, BigCommerce, and Squarespace. Consider factors such as ease of use, customization options, pricing, and integration with payment gateways.

⇒ Source Products

Find reputable suppliers or wholesalers of beauty products to stock your online store. Research different brands and products, considering factors such as quality, pricing, and demand. Negotiate wholesale agreements or purchase products at discounted rates to maximize your profit margins.

⇒ Build Your Online Store

Set up your online store by choosing a domain name, designing a visually appealing website, and creating product listings. Use high-quality images and detailed product descriptions to showcase your beauty products effectively.
Customize your store’s layout, colors, and branding elements to create a cohesive and memorable shopping experience for customers.

⇒ Set Up Payment and Shipping Options

Integrate secure payment gateways such as PayPal, Stripe, or Square to accept online payments from customers. Provide multiple payment options to accommodate different preferences. Set up shipping options and rates based on factors like package weight, destination, and shipping carriers. Offer options for standard shipping, expedited shipping, and international shipping if applicable.

⇒ Implement Marketing Strategies

Develop a marketing plan to promote your online beauty store and attract customers. Utilize social media platforms, email marketing, influencer partnerships, and content marketing to reach your target audience. Create engaging content such as beauty tutorials, product reviews, and skincare tips to engage with your audience and drive traffic to your store.

⇒ Optimize for SEO

Optimize your online store for search engines by using relevant keywords in product titles, descriptions, and meta tags. Improve your website’s visibility in search engine results pages to attract organic traffic and potential customers.

Frequently Asked Questions

How much does it cost to open a beauty supply store?

To start the beauty supply business, you have to invest money in different heads like:

• Fee for Registration
• Legal Expenses
• Promotional Expenses (Advertisements, Website, etc.)
• Insurance
• Hiring Consultant
• Renovation and decoration of the Shop
• Inventory Cost
• Stationery and others
• Rent for the First Year
• Salary of Staff and Consultant for the First 6 Months
• Furniture, Gadgets, and Security
• Miscellaneous Expense

The cost of opening a beauty products supply business will mainly depend on the size of the inventory and the range of items to be sold. However, on average the minimum cost of starting a beauty supply store will be in the range of $5000 to $10,000. It can go up to $50,000 for opening on a larger scale.

How profitable is a beauty supply store?

The profitability will largely depend on the scale of the operation. In small towns, a supply beauty supply store owner in the United States makes money in the range of $45,000 to $90,000 annually. In big cities, the earnings become more in the range of $1,50,000 to $4,00, 000 annually.

Do I need any special licenses or permits to start a beauty supplies store?

Yes, depending on your location and the specific regulations governing retail businesses, you may need to obtain various licenses and permits to operate legally. This may include a business license, sales tax permit, health department permits (if selling skincare or cosmetic products), and zoning permits. It’s crucial to research and comply with all legal requirements before launching your business.

How do I find suppliers for beauty products to stock in my store?

To find suppliers for beauty products, you can start by researching reputable wholesalers, distributors, and manufacturers in the beauty industry. Attend trade shows, networking events, and industry conferences to connect with potential suppliers and learn about new products and trends. You can also reach out directly to beauty brands or use online platforms and directories to source products.

What are some effective marketing strategies for promoting a beauty supplies store?

Effective marketing strategies for promoting a beauty supplies store include building a strong online presence through social media marketing, email marketing, and content marketing. Utilize platforms like Instagram, Facebook, and Pinterest to showcase your products, engage with your audience, and drive traffic to your website or store. Collaborate with beauty influencers, bloggers, and vloggers to reach a wider audience and increase brand awareness.

Is it better to sell beauty products online or through a physical retail store?

The decision to sell beauty products online or through a physical retail store depends on factors such as your target audience, budget, resources, and business goals. Online stores offer flexibility, lower overhead costs, and access to a global market, while physical retail stores provide opportunities for in-person interactions, brand visibility, and immediate gratification for customers. Some businesses choose to operate both online and offline channels to maximize reach and cater to diverse customer preferences.