Monday, January 26, 2015

Starting Cosmetic Business to Earn Money | How to Start a Cosmetic Business

Cosmetic Business to Earn MoneyCosmetics (colloquially known as makeup or make-up) are care substances used to enhance the appearance or odor of the human body. They are generally mixtures of chemical compounds, some being derived from natural sources and many being synthetics. 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 Cosmetics Business would have a sure market to target. If you are planning to start a cosmetics company, you can do so in several ways. 
The cosmetics industry is one that earns billions of dollars in sales per year. Whereas it used to be mainly multi-national corporations making money in the makeup business, today independent and artisan cosmetic companies are starting and growing into successful ventures. Starting a Cosmetics Business can be enjoyable and profitable, but requires thorough planning.


Cosmetics types

Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup,towelettes, permanent waves, colored contact lenses, hair colors, hair sprays and gels, deodorants, hand sanitizer, baby products, bath oils, bubble baths, bath salts, butters and many other types of products. A subset of cosmetics is called "make-up," which refers primarily to coloring products intended to alter the user’s appearance. Many manufacturers distinguish between decorative cosmetics and care cosmetics. Cosmetics that are meant to be applied to the face and eye area are usually applied with a brush or the fingertips. Most cosmetics are distinguished by the area of the body intended for application.
  • Primer, come in various formulas to suit individual skin conditions. Most are meant to reduce the appearance of pore size, prolong the wear of makeup, and allow for a smoother application of makeup, and are applied before foundation.
  • Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip conditioner, lip primer, and lip boosters. Lipsticks are intended to add color and texture to the lips and often come in a wide range of colors, as well as finishes such as matte, satin and luster. Lip stains have a water or gel base and may contain alcohol to help the product stay on the lips. The idea behind lip stains is to temporarily saturate the lips with a dye. Usually designed to be waterproof, the product may come with an applicator brush, roller-ball, or be applied with a finger. Lip glosses are intended to add shine to the lips, and may also add a tint of color, as well as being scented or flavored. Lip balms are most often used to moisturize and protect the lips. They often contain SPF protection.
  • Concealer, makeup used to cover any imperfections of the skin. Concealer is often used for any extra coverage needed to cover blemishes, undereye circles, and other imperfections. Concealer is often thicker and more solid than foundation, and provides longer lasting, more detailed coverage. Some formulations are meant only for the eye or only for the face. This product can also be used for contouring your face like your nose, cheekbones, and jaw line.
  • Foundation is used to smooth out the face and cover spots or uneven skin coloration. Usually a liquid, cream, or powder, as well as most recently a light and fluffy mousse. Foundation provides coverage from sheer to full depending on preference. Foundation primer can be applied before or after foundation to obtain a smoother finish. Some primers come in powder or liquid form to be applied before foundation as a base, while other primers come as a spray to be applied after the foundation to help the make-up last longer.
  • Face powder is used to set the foundation, giving it a matte finish, and also to conceal small flaws or blemishes. Tinted face powders may also be worn alone as a light foundation.
  • Rouge, blush or blusher is cheek coloring used to bring out the color in the cheeks and make the cheekbones appear more defined. Rouge comes in powder, cream, and liquid forms.
  • Contour powder/creams are used to define the face. They can be used to give the illusion of a slimmer face or to modify a person’s face shape in other desired ways. Usually a few shades darker than one's own skin tone and matte in finish, contour products create the illusion of depth. A darker toned foundation/concealer can be used instead of contour products for a more natural look.
  • Highlight, used to draw attention to the high points of the face as well as to add glow to the face, comes in liquid, cream, and powder forms. It often contains a substance to provide shimmer. A lighter toned foundation/concealer can be used instead of highlight to create a more natural look.
  • Bronzer is used to give skin a bit of color by adding a golden or bronze glow, as well as being used for contouring. It comes in either matte, semi matte/satin, or shimmer finishes.
  • Mascara is used to darken, lengthen, thicken, or draw attention to the eyelashes. It is available in natural colors such as brown and black, but also comes in bolder colors such as blue, pink, or purple. Some mascaras also include glitter flecks. There are many different formulas, including waterproof versions for those prone to allergies or sudden tears. It is often used after an eyelash curler and mascara primer. Many mascaras now have certain components intended to help lashes appear longer and thicker.
  • Makeup remover is a product used to remove the makeup products applied on the skin. It is used to clean the skin before other procedures, like applying bedtime lotion.Cosmetics can be also described by the physical composition of the product. Cosmetics can be liquid or cream emulsions; powders, both pressed and loose; dispersion's; and anhydrous creams or sticks.Eyeliner is used to enhance and elongate the size of the eye.
  • Eyebrow pencils, creams, waxes, gels and powders are used to color and define the brows.
  • Nail polish is used to color the fingernails and toenails. Transparent, colorless versions may be used to strengthen nails, or used as a top or base coat to protect the nail or polish.
  • Setting Spray is used to keep applied makeup intact for long periods of time. An alternative to setting spray is setting powder, which may be either pigmented or translucent.
  • False eyelashes are frequently used when extravagant and exaggerated eyelashes are desired. Their basic design usually consists of human hair or synthetic materials attached to a thin cloth-like band, which is applied with an eyelash glue to the lashline. Designs vary from short, natural-looking lashes to extremely long, wispy, rainbow-colored lashes. Rhinestones, gems, and even feathers and lace occur on some false eyelash designs.

Skin care products

Skin care products can also fall under the general category of cosmetics. These are products used to improve the appearance and health of skin, formulated for different types of skin and associated characteristics. Skin care products include cleansers, facial masks, toners, moisturizers, sunscreen, tanning oils and lotions, skin lighteners, serums and exfoliates.

Skin types

There are four basic skin types & two skin conditions:

Normal skin

This type of skin has a fine, even and smooth surface due to its ideal balance between oil and moisture content and is therefore neither greasy nor dry. People who have normal skin have small, barely-visible pores. Thus, their skin usually appears clear and does not frequently develop spots and blemishes. This type of skin needs minimal and gentle treatment, but does still require maintenance.

Dry skin

Cosmetic Business to Earn MoneyDry skin has a parched appearance and tends to flake easily. It is prone to wrinkles and lines due to its inability to retain moisture, as well as an inadequate production of sebum by sebaceous glands. Dry skin often has problems in cold weather, which dries it out even further. Constant protection in the form of a moisturizer by day and a moisture-rich cream by night is essential. It is important not to over-exfoliate even in cases of extreme flaking, as this only dries out the skin further; gentle exfoliating using sugar, rice bran or mild acids are the most suitable, although they should not be used more frequently than once per week to avoid causing irritation and dryness.

Oily skin

As its names implies, this type of skin surface is slightly to moderately greasy, which is caused by the over secretion of sebum. The excess oil on the surface of the skin causes dirt and dust from the environment to adhere to it. Oily skin is usually prone to blackheads, whiteheads, spots and pimples. It needs to be cleansed thoroughly every day, especially in hot or humid weather. Moisturizing with an oil-free, water-based and non-comedogenic moisturizer is required in addition. Exfoliation is also necessary, but over-exfoliation can cause irritation and increase in oil production; exfoliants that contain fruit acids are particularly helpful, and fine-grained exfoliants may help to clear blocked pores, discouraging breakouts and improving the skin's appearance.

Combination skin

This is the common type of skin. As the name suggests, it is a combination of both oily and dry or normal skin, where certain areas of the face are oily and the others dry. The oily parts are usually found on a central panel, called the T–Zone, consisting of the forehead, nose and chin. The dry areas usually consist of the cheeks and the areas around the eyes and mouth. In such cases, each part of the face should be treated according to its skin type. There are also skin care products made especially for those who have combination skin; these contain ingredients that cater to both skin types.
Skin conditions

Sensitive skin

Sensitive skin is a common skin condition which has a tendency to react to many potential triggers with irritation, redness, stinging or burning, flaking, lumpiness, and rashes. Our skin condition changing into sensitive normally causes from our immune system disorders or the changes of our health conditions. The most common causes of irritation are chemical dyes and fragrances, soaps, some flower and spice oils, shaving creams, tanning lotions or spray tans, changes in temperature, excessive cleansing or exfoliating, waxing, threading, shaving, and bleaching. People with sensitive skin should try to avoid products with unnecessary fragrances or dyes, and generally avoid using products that cause irritation. Sensitive skin is typically dry, but can be oily, normal, or combination as well.

Acne-prone skin

Acne is a common skin condition that occurs when skin pores become clogged and bacteria settles in, causing the pores to become infected. Several factors can contribute to developing acne such as oily skin, hormones, diet, skin care products, and even your skin care routine. Acne is treatable and even prevented by changing the lifestyle and diet in our everyday routine, and applying the right skin care products.

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

Cosmetic Business to Earn MoneyHow 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.


Instruction:

Step 1

Become familiar with the FDA's regulations regarding the manufacture and labeling of cosmetics. This information can be found on the “Cosmetics” section of the official United States Food and Drug Administration website.

Step 2

Choose a niche for your cosmetics business; this is your area of specialty within the cosmetics market. For example, you can choose to sell organic makeup, cosmetics that cover up tattoos, special effects makeup, mineral cosmetics or lip care products.

Related Reading: Starting a Cosmetics Business From Home

Step 3

Decide where you will sell your cosmetics. Options include a mall kiosk or booth, online artisan marketplace, online auction website, e-commerce store, craft fair or through home parties. Selling your products online is the cheapest option, but it is a good idea to sell through multiple venues to maximize your profits.


Step 4


Obtain the permits needed in your area to start a retail business. For instance, in Houston, TX an assumed name certificate from Harris county and sales tax permit are needed, as well as a sales and use tax resale certificate if you plan to buy cosmetics wholesale as opposed to making them.

Step 5


Purchase the materials needed to produce your cosmetic products such as jars, tops, colorants, lip-safe flavoring oils, natural butters, essential oils and exfoliates from a supplier.

Step 6


Open accounts with wholesale suppliers of makeup if you do not plan to make the cosmetics you sell. You will likely be required to provide business documentation and place a minimum order between $50 and $200.


Step 7


Develop a marketing plan for your cosmetics business. This can include launching a promotional blog or website, placing ads on blogs, forums and websites that your target market frequents, listing your company in online or print business directories, or joining a cosmetic industry association to network with suppliers.

References

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