How to Start a Makeup Business

Start a makeup business by following these 10 steps:

1. Plan your Makeup Business
2. Form your Makeup Business into a Legal Entity
3. Register your Makeup Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Makeup Business
6. Get the Necessary Permits & Licenses for your Makeup Business
7. Get Makeup Business Insurance
8. Define your Makeup Business Brand
9. Create your Makeup Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your makeup business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with our化妆品企业名称生成器

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• 网络域名的可用性.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a makeup business?

If your business plan includes starting a makeup line from scratch, you will need to invest a great deal of time and money, before ever opening your doors to customers. Industry leaders suggest planning for nine to eighteen months, just to develop your makeup line.

In addition, you’ll need to budget for the following:

• Storefront and/or factory locations - malls, kiosks, and high-end plazas are an affordable option
• Lighting for your establishment
• Makeup accessories - mirrors, sponges, and brushes
• Display cases
• POS and business management system/software
• 商标和商标设计
• Website
• Insurance
• Payroll
• Advertising and marketing material

If you have a vision for a makeup product,Sephoraoffers entrepreneurs a unique opportunity to turn their vision into reality. Grants and funding through this program could help offset some of these initial costs.

Experienced makeup professionals report an initial budget of anywhere from $75,000 to $200,000, depending upon the specifics of your business plan.

What are the ongoing expenses for a makeup business?

The average makeup business’ largest operating expenses are payroll and costs associated with leased space.

Additional expenses include:

• Stocking inventory
• Manufacturing of inventory (if applicable)
• Marketing strategy and related advertising investments
• Insurance
• Education, travel, and market research

Annual expenses vary, depending upon location and size of product line.

Who is the target market?

Marketing efforts should target specific demographics. Learn who would benefit most from your products, their specific needs, and work to define what sets you apart from the competition.

A few demographics to consider:

• Actors and actresses
• Local broadcasters
• Cheerleaders and gymnasts
• Men and women of various ages - men represent a growing market that is largely untapped at the moment
• Makeup artists and consultants

How does a makeup business make money?

A makeup business generates revenue from either the individual sale or wholesale distribution of their products.

How much can you charge customers?

Beauty products are typically sold by the unit and vary in price. Low-end cosmetic lines have products starting at $5, while high-end items sell for upwards of $150.

How much profit can a makeup business make?

Profit margins for this industry average 40%, with some running as high as 80%. An average small beauty line can realize a profit of $35,000 to $70,000 annually, while larger companies are reporting profits in the multi-millions.

How can you make your business more profitable?

Makeup entrepreneurs have reported success implementing the following strategies:

• Host a makeup or skincare clinic, specifically geared towards your target audience(s).
• Offer makeup artist services.
• Get involved in photo shoots with local and national magazines.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as an有限责任公司orcorporationprotects you from being held personally liable if your makeup business is sued.

You can金宝搏188是什么公司yourself and pay only the minimal state有限责任公司costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our有限责任公司Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

The U.S. Food & Drug Administration has set regulated standards for the production and sale of cosmetics.This FDA website outlines the federal cosmetics regulations. Review and understand these regulations to ensure that your makeup business is in line with all federal regulations.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a makeup business. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

The business savvy entrepreneur who is passionate about experimenting with cosmetics will find success in this industry. As the owner of a makeup business, your role is to help others turn their visions into a reality and feel more positive about their appearance.

What happens during a typical day at a makeup business?

This is largely dependent upon how you decide to structure your business. Whether you open a brick and mortar or ship products to others for distribution/sale, some day-to-day activities will remain the same:

• Test new products and collect feedback from current and prospective customers
• Fill makeup orders and ship to destination
• Advise customers on personal makeup and skincare needs, helping them achieve their desired look
• Network within community/industry and market your business
• Contact suppliers
• Conduct market research and keep up with the latest trends
• Regular sales team meetings to discuss current business trends and ongoing needs
• Administrative duties

If a makeup store is part of your vision, there are a few additional activities to consider:

• You and your staff will take a more hands-on approach with customers.
• Shelves must be fully stocked and reorders should be placed regularly.
• Facility must be maintained and kept clean.

What are some skills and experiences that will help you build a successful makeup business?

Real world experience is critical to the success of your business. Before establishing your company, consider working at a beauty store. Study each department, the customers' needs, the distribution chain, marketing, and staffing. There is a lot of work that goes into running a company like this. Learn from the successes and failures of your future competitors. Your education, however, shouldn’t stop there. Get to know the various products and lines on the market. Experiment with the merchandise and get creative.

To lead a makeup business to success, one should possess many of the qualities that make a great leader. Strong communication and organizational skills are critical. Attention to detail and the ability to delegate will also prove beneficial. TheProfessional Beauty Associationoffers membership resources to assist start-ups in realizing long-term success.

What is the growth potential for a makeup business?

Growing 6% in 2016, the beauty industry consistently realizes significant growth, year after year. The makeup class was the largest contributor, contributing 82% of the industry’s overall growth. While brick and mortar establishments offer the highest earning potential, online beauty sales have grown at a rate of 20% annually. This industry shows no signs of slowing down and offers ample opportunities for the dedicated and innovative entrepreneur.