How to Start a Cosmetics Store
Did you know the cosmetics industry is expected to reach a global annual turnover of $463.5 billion by 2027? The industry is growing at an exponential rate, but with that comes increased competition. So how do you open a successful beauty business?
From hair and beauty to cosmetics and fragrances, we can help. Read on as we discuss how to start a cosmetics store.
Create a Cosmetics Store Business Plan
Even if you are not seeking investment, a business plan is still essential. It lets you get a view of your whole company, setting out a roadmap for success. It is something you can come back to time and time again.
There are whole articles on how you should break a business plan down. In a nutshell, it needs to include all general business information such as products and services. After this, the most important aspects are the financials and marketing.
When you consider starting a cosmetics store, you should know that you are going into a packed, competitive field. Not only are you up against other stores and major brands, but you also have numerous independent sellers online. You need something to make you angle out.
The best way to do this is to use yourself as the catalyst. What are your interests and your given niche?
Perhaps you have teenage daughters and could create products aimed at the teen market. You may be interested in senior skincare and can build a brand around that. All of this can inform your target audience, product, and set you apart from the rest.
Know the Legal Side of the Business
Before setting out, there are a few legal considerations you must take into account. The first is the type of company you will be setting up. It will either be a sole proprietorship, partnership, corporation, or limited liability corporation.
Each of these has advantages and disadvantages. You should speak with an accountant and a business lawyer about this, to ensure you select the one right for you.
After that, you need to consider the legal frameworks in which your company can operate. You may need licenses and permits depending on the country and state you live in.
Finally, if you are in the US you should follow the Food and Drug standards authority (FDA) regulations. They have strict guidelines on the manufacture and labeling of products.
Choose a Location
The location you decide upon can make or break your business. Choosing the right one comes down to knowing your target demographic, as discussed before. Are you aiming for high-earning, elite customers, or putting out a discount brand?
Find a few areas these people may shop in and look at two or three potential properties. Keep in mind that the more popular the area, the higher your rental income may be. If you decide to have the shop away from busy high streets and areas of footfall for low rent, then you need adequate access and parking facilities.
Now you have the store and business plan, you just need stock. This has to be based on the needs of your target demographic.
Many major cosmetics and make-up brands may have exclusive deals with certain stores making them impossible to acquire. You may also find that others may have minimum spending amounts before they will deal with you. This means you have to shop around to get the best deals and unique products for the store.
Luckily, many manufacturers now ship direct. You can order white label products if you want to make your own brands. Go to this website to find out more about wholesale perfume purchasing.
Even though you are starting a cosmetics store with bricks and mortar, you still can not survive without an online presence. This opens you up to a much wider customer base. It does take a little extra work, but the rewards are worth it.
Your first step is building an e-commerce store. There are many out-of-the-box solutions for this, or you could hire a developer to do it for you. Make sure it works in tandem with any stock check systems you have, as you don’t want to run out of items online because you have sold them all in-store.
The website needs to be user-friendly and mobile responsive, meaning it works as well on mobile as a desktop computer. It will require great product images and descriptions, which you should also consider outsourcing to professionals. You will then need a secure checkout procedure.
Create a Marketing Plan
Without a marketing plan, people will not even know your beauty store exists. Thus, it is very important to get a marketing plan in place and begin implementing it before you open. You can split your plan into two broad sections: Direct and digital marketing.
Direct marketing involves traditional marketing methods. These may include putting adverts in print media, getting radio or televisions ads, or even sending out emails and flyers. You may consider hiring it out to a company that knows what methods will work best with your target demographic.
Digital marketing involves promoting yourself online. It could involve pay-per-click advertising and could develop into fields such as content creation. Creating social media accounts and platforms will also feed into your digital marketing plan.
Once you have everything in place, you just need to plan a grand cosmetics store opening day! With your plan in place, products aligned and marketing running, you can not fail.
If you found this article helpful, then stick with us as you grow your business. From finance to marketing, we can help your company boom in the coming year!