This is not the first time we have been asked this question; it won’t be the last. So, we figured giving you the answer to how to start a beauty supply business would make your tasks easy.
The beauty supplies business has been making waves recently; many people are seeing the potential for profit and going into it.
You have seen the same thing, but jumping on the wagon has never been your style.
We understand the importance of planning to you, which is why we are here.
To help guide you as you take your first steps towards creating one of the biggest businesses in the area.
We will tell you the truth from the get-go – it might seem easy, but it usually isn’t.
There are many obstacles to starting a successful business.
However, proper planning will help provide you with the tools necessary to tackle these obstacles.
So, we are excited that you are having this conversation with us, and we hope it brings you all you seek.
We will start this conversation by looking at the beauty supply industry as it is now, what the numbers say, and the significance of their statements.
To make sure we are on the same page, we will also be considering the pros and cons of the business.
The Industry – How to Start a Beauty Supply Business
So, the business involves retailing cosmetic products and beauty tools to the general public.
Now, businesses in this line are usually smaller in size and branding than the beauty stores they work with.
That being said, there is no harm in starting as big as you want or going as small as you can.
You could either make your customer base business-to-business (B2B) or business-to-customer (B2C).
This will depend entirely on your business size, strengths, weaknesses and how you want to enter the market.
Since the pandemic, there has been a rise in online sales of beauty supplies, taking the industry digital.
Some experts have said that in 2023, the beauty Internet market in the United States is predicted to increase by 4,8%.
In today’s world, you have more than 50,000 beauty supply stores in the United States.
There have to be reasons for this; it is probably the same reason you want in right now.
How to Start a Beauty Supply Business – Advantages
You have to thoroughly weigh your options before deciding if the business is one for you at the end of the day.
This decision can only come if you see that the pros outweigh the cons.
So, let’s talk about some of the advantages of the beauty store business;
- The cost of starting will depend on you and how big you want to start.
- Flexible business model, and you can decide to go offline with a store, online or do both.
- Brands could employ you to be their ambassador, thanks to the rise of social media influencing.
- Contributing positively to your community.
- There is a high-profit margin in this industry.
How to Start a Beauty Supply Business – Disadvantages
Now we are done talking about the advantages, here are so disadvantages to think about;
- Quality control is not in your hands since you do not make the products.
- Most beauty stores sell directly to customers.
- There is high competition in the beauty supply industry.
- Managing the books, tracking orders and sorting can be time-consuming.
How to start a Beauty Supply Business – 9 Basic Steps
The aim for every business out there is to be successful; the type does not matter to us.
It could be a beauty supply business, a bails bond business or as simple as starting a blog.
Proper planning is one way we make ensure you achieve your goals for building a successful business.
This is why we have listed out steps we know will take you from zero to a full-grown business.
These steps would include the following;
1. Background Research on the Business/Industry
When it comes to having a successful business, there is nothing that does the job as well as research.
So, it is impossible for us to answer your question about how to start a beauty supply business from somewhere else.
You need to fully understand what you are getting into even before you start – this is what research does.
When you look at the beauty supply industry, you will see that it is one that has seen growth over the years.
The numbers and those in charge of statistics have studied this growth to make some bold predictions.
It is estimated that the beauty industry will be worth over $800 billion in 2025.
The range of products being sold here is truly wide, moving from makeup to skincare.
However, standing out in this type of business depends a lot on your environment, and this is important to consider.
Where are you setting up your shop, and what type of products do the people there like to use?
Which brands are popular in the area – getting what the people want is simply how you make it work.
Even if you are setting up the business online, knowing what people want makes providing it even easier.
2. Work on your Niche and Business Structure
Study the market and research feasibility – look at what the graph says about your target audience.
These are the things we learnt from step one, and they will help us as we go along the way.
However, when all this is done, you would need to decide on how you want to approach the business.
The niche you find yourself in at the start is the most important piece of the puzzle.
The truth is that expansion is easy, but only when you lay the proper foundation from the start.
So, go back to your research stage, where you considered your environment and what they like.
This will help you with deciding the perfect niche to start with and make a profit.
The business structure is next on the line of things you should be considering in this journey to business success.
There is really no way we can talk about how to start a beauty supply business without a business model.
Now, it is beauty supply and not actual product manufacture, so our best bet is you are going in alone.
The sole proprietorship is the most common business model, even if partnerships can be found here and there.
However, our advice will be that you get a Liability Limited Company (LLC) to help protect your personal assets from the law.
Regardless of the business structure that you choose, one thing we know is that planning breeds success in any business.
3. Properly Document Things
There are a lot of business documents out there, and our suggestion for you is to have all of them.
Some of these documents are useful during the start of the business, while some might not even be needed.
For example, when we say get all – we mean document your plans for expansion and your plans for folding.
Just one of these will come in handy as you move forward, but having the right plan in place makes everything easy.
We already know that starting is hard, so you should welcome anything that makes the process easier.
The documentation gives you an idea of what you are going to do when the time comes for a task.
Some of the documents that are important would include things like;
- Product and services description document.
- Business Overview.
- Financial plans.
- Operational plan.
- Sales and marketing document.
- Marketing and competitive analysis.
- Executive summary, etc.
All of these can be compiled into one single document and called your business plan.
4. Learn and Get Certifications/Licenses
Furthermore, it is important to know what you are doing before you go into any kind of business – knowledge aids success.
The good thing about a beauty supply business is the fact that you are not manufacturing anything.
But they’re other very skills and licences that will give you an edge in this business.
So, you’d want to focus on getting these licences and certifications.
For instance, everybody will be more comfortable buying skincare products from a dermatologist as they will be considered experts.
When customers see you as someone with a lot of knowledge of the topic, it is easy for them to trust your judgement.
These certifications will also come in handy when you are trying to partner with people or expand the business.
5. Brand Your Business to Stand Out
There are so many things to do when you are starting out your business, regardless of what you are into.
One of them, and arguably the most important of the lot, will be the process of branding the business.
Branding might seem like a weird thing to say, especially when you are just selling the products.
Moreso, branding is important to any business, and you should take it seriously if you want success.
As a matter of fact, we will recommend you employ the help of experts at this point if you lack the skill.
Everything the customer meets before they meet you should bring a positive feel to help their buying journey.
Typically, branding would start from the name of your business and go as far as your communication with the customer.
After picking out a name that fits, the next should be your brand colours, and they should resonate with the industry.
You can do your research on the best colours for any industry and decide which works for you.
Once the brand colours are sorted out, you should get a logo.
These things play an important role in business and could be a contributing factor to if a customer patronizes you or not.
6. Do all the Necessary Registrations
Another thing that is important when you are considering how to start a beauty supply business is regulations.
Whether or not you are making the products, the beauty industry remains one of the most sensitive ones out there.
What this means is that you’ll face a lot of regulations, and there are standards you need to maintain.
There will be a lot of things you need to do in terms of registration from national to state to the local level.
One that is very common is the registration for you to be able to pay your business taxes.
This journey starts with registering for your employer identification number, and you can do this on the IRS website.
With the EIN, you can then do the necessary registrations, which allow you to pay your taxes.
You should already have your business name sorted out before applying for an EIN.
Once you have done all this, you should look at the state and local jurisdiction you find yourself.
Ensure you find out the laws and licenses you need to operate a beauty supply business and get them.
Getting every registration sorted out from the start makes the process easier as you move ahead.
7. Implement all From the Planning Stage
This is the point where you implement everything you’ve put down in your plans so far.
The first part of this is looking at your financial plans and beginning implementation.
Where is the capital for the business coming from? Start making the effort to get it.
If it is going to come from personal funds, then you should get it ready.
Alternatively, if it is a bank loan, you should apply for it now.
After the finance is ready, the next thing to cater for is the location of the business you want.
Ask yourself if you will be working from home or if you will have a physical store people come into.
If the store has to be physical, you should start making arrangements to buy, lease, or rent one.
Even if working from home saves rent costs, you should put in some money for setting up the home.
The workspace in your home has to be ready for work even before the business opens.
Equipment for the sales process and getting products is the next thing in line for you and your business.
Specifically, you should get everything you need before you start the business.
8. Strategize to Market Your Business
Having a marketing plan is important as you decide to enter the beauty supply market.
For online, doing a lot of social media marketing will help get your business in the faces of people.
You could also consider setting up an e-commerce website where you can promote your beauty products and engage your audience.
Finally, forming strategic partnerships with businesses and communities can also help your business, especially if you own a brick-and-mortar beauty store.
Conclusion for How to Start a Beauty Supply Business
In conclusion, all of these steps, when combined well, could as well give you the best running business in your area.
The good thing about this industry is the unending list of customers and short-term profit visibility prospects.
So follow these steps and set up your beauty supply business so you reap off the benefits of the beauty industry.
Best of luck.