Lip Gloss is a favorite cosmetic of women around the world. Apart from adding the extra glow and gloss to the lips, it also gives a good essence and a tinge of colors of choice. However, this particular cosmetic can be a good business opportunity for you, considering its wide-scale demand.
The growth opportunity of lip gloss business is very encouraging for you. According to Statista, the revenue of the Beauty and Personal Care market is expected to grow by almost 5% per annum from 2020-2023. Therefore you can start your Lip Gloss Line Business for a greater gain in the days to come.
4 Ways of Starting Lip Gloss Line Business
There are mainly three models of Lip Gloss Line Business. You can choose any one of them according to your choice, convenience or affordability.
Sell Lip Gloss of Reputed Brands
First of all, you can sell the Lip Glosses of reputed brands through your network and develop the business line. You can set up your shop or sell them online. You can also be an independent partner of a reputed networking company that sells lip gloss products.
Sell Private-Label Lip Gloss Kits
There are many suppliers, who supply private label Lip Gloss Kit. These companies can supply the kits with your own designed logo, tubes, designs of boxes, colors of Lip Glosses, Finish, etc.
You can choose from their catalog and order accordingly. They can also help you in designing the logo or box if you want. You can get samples before ordering. After receiving the order, you are ready with your Lip Gloss Line.
Franchise of Reputed Lip Gloss Company
You can do your business through the franchise of reputed brands of Lip Gloss. Many reputed Cosmetic Companies offer the franchise, and some of them even do not charge anything. You can sell their Lip Gloss through your store or online.
- Manufacturing Lip Gloss
You can start your Lip Gloss Manufacturing Company and build up your Lip Gloss Line Business. With knowledge about the manufacturing process and the required ingredients and their respective proportions, you can start the Lip Gloss Manufacturing Company. Remember to hire professionals in the case of manufacturing.
Steps to Start Your Lip Gloss Line Business
To start your Lip Gloss Line Business, you have to follow certain steps. Let us discuss them:
1. Market Research & Analysis
Before starting your Lip Gloss Line Business, you have to do the necessary market research. First of all, you have to remember that Lip Glosses are used by a wide range of people including women of different ages and also by men.
Set your target customers. Decide whether you want to focus on the younger generation or the older group. Both have their advantages and disadvantages. Think carefully before you decide on any sector. You can also set your target clientele among a general category.
There are many big players in this business which means your completion is tough. However, through hard work and good publicity, you can get a good share of the market, which is increasing. Collect the data of the popular brand and the sales figure as well as customers’ expectations and desires.
This is where your Lip Gloss Line Business can figure in. Try to give some USP to your product line, like herbal gloss or special fragrance which will set you apart. If you want to sell organic Lip Gloss, you have to get separate registration.
Find out the economic condition of the people in that area, you will have an idea of their purchasing capacity. This will help you to set your prices.
Also take note of the salons, spas, and the beauticians and make-up artists in the area as they will be the prospective customer of your Lip Gloss Line Business.
Remember to analyze the data you collect and set your business strategies accordingly.
2. Estimate the Cost of Setting up Lip Gloss Line Business
If you want to start your Lip Gloss Line Business by selling the reputed brands or through the franchise, you will need between $10000-20000 including the legal and marketing expenses.
Private-label Lip Gloss Kits cost between $1000-3000. Along with it, there are legal expenses.
To set up a Lip Gloss Production unit, you need an initial capital of approximately $ 500000.
3. Choosing the Location
Based on your Market Research and Analysis, you have to find a suitable location for your Lip Gloss Line Business. It is ideal if you can locate your business in any central location. However, in case of selecting a good location for your business, you have to consider several factors like the economic condition of the people of that area, the demand for Lip Gloss, how many companies are operative in the area, whether any new Lip Gloss Line Business is or has emerged In the area, etc.
Apart from that, you must also consider the accessibility of your store, the transport network, the population profile of the area where you intend to set up your business, etc.
4. Naming Your Lip Gloss Company
After you have decided to start your Lip Gloss line business, you have to find a suitable name for it. Think of a catchy and attractive name. Remember, your business name should be relevant to the product, Lip Gloss.
Do not go for any difficult or long name for the Lip Gloss. It should be easy to understand and of course, easy to remember. You can take the opinion of your friends or family regarding the name.
After finalizing the name, you have to find out the availability of the name for trademark and also the URL availability, so that you can start your website in the name of your product.
5. Registration of Business
To start your Lip Gloss Line Business, you have to register the business for a legal entity. There are a few options for you like Sole Proprietorship, Limited Liability Company(LLC), or a Partnership Company if you are staying in the United States.
LLC can be a good choice for you as it is easier to operate and safer. Later you can convert your company to C Corporation or S Corporation which will enable you to grow your business, go public, and face the competition with the big players of the Cosmetic Industry.
6. Legal Documents, Tax & Insurance
After the completion of the process of registration, you need to fulfill several legal and insurance formalities and obtain certificates like:
- Business Licence
- Tax Paying Certificate & Tax Identification Number
- Health Inspection & Clearance Certificate
- General Insurance
- Employees Compensation Insurance
- Accidental Insurance
- Property Insurance
- Liability Insurance
- Permits for Physical Store or Online Selling
7. Take Safety Measures
You must ensure that the Lip Gloss you are selling is safe for the skin. If you opt for the readymade Lip Gloss with your label, they mostly comply with the safety standards of the respective country. For example, if you are doing your business in the US, it has to be approved by the FDA.
If you are selling other brands, make sure that the brands follow the safety standards. In case you have plans to manufacture the Lip Gloss in your set up, you have to learn about the safety parameters and follow them accordingly in the production, packaging, and preservation process.
Cosmetics are directly applied to the skin. So you should be very particular and conscious about the safety of The Lip Gloss you are selling.
8. Financing & Business Plan
Financing is the most important part of your business. If you intend to start your Lip Gloss Manufacturing Unit, you will need more capital. Even without producing, the Lip Gloss Line Business needs a good capital.
You can accumulate the capital from your savings and investments. However, it is wiser to opt for a bank loan or financing agencies’ assistance. You can also apply for Business Grant.
In these cases, you need a well-drafted Business Plan which will help you get financial assistance for your business. The Business Plan should cover the important aspects of the business like fixed and variable costs, the projection for the next 3 years, manpower required and of course the profit prospects. Take the help of an expert in preparing the Business Plan.
9. Marketing & Publicity
This is the key feature of your business. The success of your business depends on your efforts to market your product and make it popular so that you can earn more profit. Follow these steps for marketing and publicity:
- Create a website in the name of your product.
- Design your website with bright colorful pictures of your Lip Gloss as well as attractive images, graphics, and animations.
- Use social networking platforms like Facebook, Twitter, Instagram, etc. to spread the name of your product. Share the link to your website.
- You can also create separate pages in the name of your Lip Gloss on the social networking sites.
- Print colorful brochures and flyers and distribute them in residential areas, colleges, corporate offices, etc.
- Advertise your Lip Gloss Line in local newspapers, television, radio, etc.
- Place hoardings on your Lip Gloss at prominent places and popular salons of the area of your business.
- Offer special discounts on festivals.
- Make arrangements of free distributions of the Lip Gloss at selected areas like residential complex, college or corporate offices, salons, etc.
- Sponsor some events like charitable programs, students’ programs, or beauty-related programs.
- Word of the mouth publicity is an important aspect of boosting up sales. Try to have a greater number of satisfied customers and highlight their opinion with names on your website, social networking sites, etc.
10. Distribution Network, Manpower Hiring, And Setting Price
Remember, the profit of your Lip Gloss Line Business will increase if you can make its availability and visibility very high. For that, you need a good network of distribution. You have to build a good network with independent distributors, wholesalers, salons, spas, and make-up artists. Offer them good commission so that they feel inspired to promote your Lip Gloss.
The number of manpower you need depends on the scale of your business. Whatever be your scale, you will need the persons like:
- Marketing & Sales Manager
- Distribution Head
- Customer Relation Executive
- Distribution Van Drivers
- Quality Control Head (If you are producing Lip Gloss)
You have to set the price of your Lip Gloss considering many factors. Remember, the very cheap price of cosmetics does not sell well, as the users do not feel safe to use them.
While setting the price, consider the tough competitive market of cosmetics. To sustain in the market, you have to set the price in a balanced way.
The price should also allow a good commission to the distributors and wholesalers so that they can promote your product through their network.
Think of your target clients before setting the price. If they belong to the middle-income group, then set the price accordingly. If you target high-income group customers, then your price structure may be higher.
If you are producing the Lip Gloss in your Lip Gloss Line Business, then consider the cost of production. If you target a greater sales number, then a moderate or lower price will also maximize your profit from bulk sales. <
Therefore, you have to consider some factors in setting the price of your Lip Gloss.
Wrapping it Up:
The cosmetics market is full of giants like Chanel, Dior, Estee Lauder, Dolce & Gabbana, and Lancôme, etc. Therefore, your Lip Gloss Line Business will face a tough competition. However, if you work hard and follow intelligent and strategic planning, you can achieve success in your business.
Do your research and survey well, take the help of experts and market your product well. Focus on the demand for your product in the area you have selected for the Lip Gloss Line Business and your target client. You will achieve success. There are many instances of new entrepreneurs rising from scratch and earning good profits.
These are the main points to set up your Lip Gloss Line Business. Follow them and start getting good returns.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.