The nail polish business is a million-dollar industry in the cosmetic products sector. Nail polish is a lacquer kind of product that is used to decorate and protect human fingernails or toenails. The demand for nail polish is growing rapidly. Particularly in urban areas owing to several factors such as greater purchasing power because of higher income, the desire to look better and more attractive, etc. Find here in this article a detailed stepwise guide on starting a nail polish-making venture.
A person having knowledge about the trend in the beauty and fashion industry can initiate this venture with moderate start-up capital.
Here are the 10 Steps to Start a Nail Polish Business
1. Do Some Market Research
If you are seriously considering starting a nail polish-making business, the first step is to understand the market. You must go for extensive market research and gather information regarding the size of the immediate market, the types of items in demand, who are the competitors, etc. If you intend to cater to the online market, check the online marketplaces and the products that are selling the most.
2. Training For Making Nail Polish
This is an essential step to starting a nail polish-making business. If your educational subject is chemistry it will give you extra support to learn the process and formula. You can have some online tutorials and classes to get proper knowledge.
3. Nail Polish Making Business Plan
Write a detailed business plan for your nail polish business. Determine the startup capital, return, what type of nail polish you are going to make, whom you will offer your product, objectives, and goals of the business. It is always advisable to have a well-documented business plan in hand before getting into production.
4. Form a Company
Talk to professionals and share your thoughts about your business plan. As per their advice, decide on the business structure under which you are going to run your nail polish operations. If you are a beginner, you can form a proprietorship company or form an LLC if you want to separate your personal assets from business assets.
5. Get Licenses & Permits
Contact local appropriate authorities to know what licenses and permits are required to operate a nail polish-selling business in your locality. The Food and Drug Administration in the United States categorizes nail polish as a cosmetic item. Though the FDA does not have stringent regulations like food items, it does ask nail polish manufacturers to mention warning instructions to consumers not to misuse.
6. Arrange Finance & Business Insurance
If you need finance for starting and running the business, do prepare your business plan professionally. Approach probable investors with your business plan and convince them to fund your venture. Do talk to business insurance providers and get the best insurance cover.
7. Sourcing Raw Materials For Nail Polish Manufacturing
As per your desired nail polish type, you will need to procure the raw materials. The main ingredients that you will need to have are plasticizers, dies and pigments, solvents, adhesive polymers, resins, thickening agents, ultraviolet stabilizers, and the container for packing. There are various types of nail polish is available like Shimmer, Glitter, Frost, Luster, creme, Matte, etc. determine your raw material sourcing according to the type of nail polish you want to make.
Initially go for some sample production. Experiment with colors. Check the recent trend of nail polish in the market. Colors are the most important deciding factor in getting success in the nail polish manufacturing business.
8. Fix Pricing
Pricing your products is one of the key decisions you need to take in the business-building process. You need to be very careful while pricing if you find there are competitors who are making similar items.
9. Where to Sell Nail Polish Items
Try to build a network of distributors and resellers who will sell your products to end consumers. Give them lucrative commissions so that they get enthused to sell your nail polish items.
If you intend to cater to online customers, create an online store, and sell your products online. Also, list your products on online marketplaces like Amazon, and eBay.
10. Promote Your Nail Polish Company
Initially, you can tap your local market. Cosmetic retailers, beauty stores, salon owners, and beauticians will be your customer for nail polish. You can contact retail brands to have a tie-up as a nail polish supplier.
To establish your nail polish brand in the market it is important to have an intensive dealer network also. Online presence is important to make a brand successful. Create a website with product detail and price. Create a business profile on social media platforms and inform your followers of recent activities of your company.
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.