For centuries, the lip gloss industry has been a popular one, originally created for the movie industry to help add shine to the lips. But over the years, the industry has transformed, with the products being transformed with it. There is now a variety of lip glosses in the market, including the ones that have flavors, color, and even some lips-plumping ingredients. So if you are interested in starting a lip gloss business, there is likely no better time than now.
Here, we have given everything you need to know about starting a lip gloss business for people who love the beauty industry. The lip gloss business is a lucrative business. Plus, it requires a very small startup capital to begin. But first, let’s answer some important questions about the business.
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Is Selling Lip Gloss Profitable?
Yes, starting a lip gloss business is really profitable. It requires a very low startup capital – less than $100 if you know where to look. At the same time, you don’t need any special skills to create your own lip gloss – no need to pay for classes or get any certification.
Furthermore, the industry is a growing one. That means the product is in high demand. So far you are able to create a product with a unique solution and know how to market it, you will definitely make good money from it.
How Much Do You Need to Start a Lip Gloss Business?
Again, starting a lip gloss business is not expensive at all. You can start the business with less than $500 if you are smart. While some companies will encourage you to buy in bulk while starting out, that is not always the best advice. Remember, you are new to the business, so it’s not wise to start out with unnecessary expenses.
How to Start a Lip Gloss Business
Let’s learn about “How To Start A Lip Gloss Business” in detail:
#1: Understand the industry
This is the first thing you should do when looking to start a lip gloss business, first understand the industry you are going into. Lip gloss is used and appreciated by all gender types across the world, and it is also not limited to any specific age group. Because of the broad market scope, your opportunities in the industry are endless. Therefore, you can choose to go into any niche of your choice and still make it big there.
A lip gloss business can also be started from anywhere and in whatever model you choose. You can decide to open a physical store, start from home, or sell your products online. At the same time, you can either start small or begin on a large scale – everything works for the business.
#2: Choose a model for the business
When you are thinking of how to start a lip gloss business, you should also be thinking of the type to start. There are two ways you can start a business. You can start as a distributor, selling other people’s products. On the other hand, you can start as a manufacturer producing your own brand of lip gloss and selling it to your customers.
If you are choosing to be a distributor, you will need to look for vendors that can provide you with lip gloss to sell to other people. However, the downside here is that the profit margin is low, and the competition is high. Some common vendors in the industry are Mary Kay, Oriflame, Natura, Avon, Etsy, etc.
If you are going the other way, manufacturing your product yourself, you will surely make more profit. But you should also be prepared to navigate the complicated path of becoming a lip gloss producer. You will need to learn how to make a lip gloss, get the right materials, brand your products, and market them for the best profit.
#3: Determine your target customers
The best way to make the most out of your lip gloss business is to carve out a niche for your product. Let your product have a specific group of people it will be more appealing. For instance, you can decide to make a lip gloss that brightens the lips of a younger generation or a lip gloss with a subtle taste that works well for professionals.
Get to know your target market so you can rightly decide how to produce your lip gloss. That will also help a lot when it’s time to market your products. Don’t try to produce a lip gloss that will be everything for everyone – things might not work that way.
A few audiences you can consider for your lip gloss business are:
- Kids
- Teens
- Young adults
- Parties
- Holidays
- The business casual audience, etc
#4: Get the necessary equipment and supplies
You are going to need a couple of equipment for your lip gloss business. Some of them include a mixing machine, molding equipment, sealing machines, branding labels, packaging containers, etc. But that’s not all. Apart from getting some necessary equipment to make your lip gloss, you will also need some supplies to make things happen there. Some ingredients you will need to invest in are:
- Coconut oil
- Olive oil
- Vitamin E Essence
- Beeswax
- Mica pigments
- Cocoa butter or shea butter
Each of these ingredients has its own important parts they play in your production line. So they are the core of your recipe. At the same time, make sure all ingredients are obtained from a reliable source for the safety of your customers – remember they are applying the product on their lips. So it has to be 100% safe to use!
#5: Determine your packaging style
This is another important step you will need to pay special attention to. The type of packaging you choose for your product will determine the success of the business. Choose packaging that resonates well with your audience type. Make it beautiful and eye-catching so that anyone will love to have it.
Potential customers will prefer to choose a product that looks more attractive than every other market. So invest your time and resources into making sure your product looks great and attractive. Everything still boils down to your packaging.
#6: Register your lip gloss business
Registration is important to this type of business – remember, people will be putting it on their bodies, so it’s important you protect yourself. Choose a business entity, preferably an LLC, so you don’t face any form of liability in the future. If anything happens in the future, the burden will only be on the business, not you or your family. LLC protects you from being sued, and when your company is sued, it won’t in any way affect your personal belongings.
#7: Determine your pricing structure
Knowing how much to sell your lip gloss is also important. You might need to research how much these products are sold in local stores to know what pricing to choose for your product too. A lip gloss can cost anywhere between $5 and $50.
But when setting your price structure, make sure you also consider your production costs. If the materials you will use to make a lip gloss is $6, it is not wise to sell such a product for $5.
#8: Determine how to market your product
Marketing is important to any business. You might also not do well with your lip gloss business if you fail to come up with a good marketing strategy for the business. But the interesting part of this is that marketing can be done in different ways. You can decide to invest in using word of mouth more, traditional marketing means like radio and newspaper, or use social media and a blog.
Whichever means you want to use to market your business, just make sure you have your audience in mind. For instance, if your product is designed more for teens and young adults, using traditional advertising methods may not be the best method to reach them. Social media would definitely do better.
Final Note on How to Start a Lip Gloss Business
Again, starting a lip gloss business is a lucrative one. And one you can try to pursue if you have a love for the beauty industry. However, before you start the business, make sure you understand all it takes to have such. Learn about how to register it, what business model works best for you, how to market, etc.
You may also be interested in other beauty business ideas like Body Contouring Business and Lash Business.