Starting a Cosmetics Business From Home

Tuesday, January 27, 2015

Starting a Cosmetics Business From Home

Starting a cosmetics business from home can be an exciting and profitable venture. However, you must first decide how you will acquire the products. Some people make their own cosmetics, though this method can be costly and time consuming. Most people join a cosmetics direct sales organization, such as Mary Kay or Avon. However, you may want to start from scratch, especially if you plan to sell more natural 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.

Things Needed

Wholesale supplier
Cosmetic products
Sales Manual
Catalogs
Price lists
Order forms
Gift bags
Revenue/expense ledger

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

Dry 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.

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

How 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 of Starting a Cosmetics Business From Home

Step 1

Set up a space in your home for working your business. Work out of a spare room, for example, if you want to potentially write your office space off for tax purposes.

Step 2

Obtain a vendor's license for your cosmetics business because you will need to pay sales taxes.Register your business name as a doing business as if you create a fictitious name for your business.Apply for a vendor's license and DBA through a government office like you county administrator, according to Business.gov.

Step 3

Select a direct sales company if you choose to use a direct sales supplier. Find your own wholesale supplier if you are starting your cosmetics business from scratch. Contact the National Association of Wholesaler-Distributors at NAW.org, or go to Nationaldirectsalesneetwork.com. Ask representatives from these organizations about potential cosmetics wholesalers.

Step 4

Call several of the cosmetics wholesalers. Make sure these wholesalers sell the products in which you are interested. Select the cosmetics wholesaler that offers you the lowest unit cost of products.

Step 5

Order product samples, catalogs, price lists, order forms and gift bags from your direct sales company or wholesaler.

Step 6

Call family, friends or business associates about hosting a party or show. Ask each hostess to invite guests to the party. Arrange as many parties as possible for the month.

Step 7

Take product samples, catalogs, price lists and order forms to each party. Present various products to the party guests for about 30 to 45 minutes. Allow guests to ask questions about the products. Let guests look at catalogs if you do not have samples of the products. Pass out price lists and order forms at the end of the party. Collect everyone's order forms before your leave. Invite guests to host a party a future party for you. Obtain the names and phone numbers of guests who are interested in hosting parties.

Step 8

Place all customer orders each week through your direct sales company or wholesaler. Pay just the wholesale cost for all the items.

Step 9

Call each hostess when the products come in. Arrange a time for the hostess to pick up all orders. Have the hostess collect all checks and cash from those who attended your cosmetics party. Place all individual orders in gift bags.

Tip

Spend spare evenings and weekends calling people to host parties for you. You should be consistently booking appointments for shows, selling, ordering, packing and distributing merchandise. Call past hostesses every two or three months. Ask these hostesses if they want to host another party. Maintain a database or master list of all hostesses. Also, take catalogs to work or distribute them to acquaintances. Always promote your cosmetics business when you have the opportunity.

References

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Tuesday, January 27, 2015