How To Start a Beauty Supply Business - Background Info:
One of the oldest products made and sold all over the world
revolve around beauty.
Beauty supplies and products are as old as
Cleopatra and the return to natural products continues to increase
for many reasons: allergies and being against animal testing among
several.
People spend billions of dollars in the US each year at
thousands of beauty supply businesses.
While much of the
gains in this industry through the early years were due to the
increased patronage of day spas, people are also spending more on
cosmetic products, too.
The cosmetic supply industry is
clearly one that has a lot of potential. While highly competitive, the beauty industry continues to
flourish in various sectors and all over the world. Thus, the
beauty supply industry grows as well.
There are basically four types of beauty supply:
1. Franchise Home Sales: such as Mary Kay, Avon, etc.
2. Retail Store Franchise: such as Sally's
3. Manufacture and sale of your own product line to retail
outlets
4. Sale of imported beauty products online and offline
Two keys to a successful beauty supply business are to have a
passion for beauty products and finding a niche that fills a need
or demand for specific types of hair and cosmetic
products.
How To Start a Beauty Supply Business -Tasks And Skills Needed:
Business Specific
Tasks:
If you are planning to do all the business tasks or hiring or
subcontracting tasks, here's a list of tasks that need to be
attended to when it comes to the business side of running a beauty
supply business:
- Bookkeeping
- Advertising/Marketing
- Computer Literacy
- Shipping and receiving
Industry Specific
Tasks:
Same as above if you plan to do everything yourself or get help,
here are some of the tasks necessary to operate a beauty supply
business:
- Knowledge of the beauty industry, including taking courses to
stay current
- Ordering: Import/Export and shipping duties
- Background or licensing in cosmetology a plus
- Inventory management skills
- Sales and marketing to retail outlets
- Advertising duties including signage
- Labeling and packaging of products
- Taking and delivering of orders
- Strong customer service skills
- Checking store displays, making sure stock is sufficient in
retail outlets
How To Start a Beauty Supply Business - Approximate Daily Hours Needed:
 General
Hours of Operation: - When your business is open - If
you have a brick and mortar establishment, your hours will
generally be retailer's hours of 10 a.m. to 6 p.m. If you are an
affiliate or home-party/franchise, your hours will vary according
to schedule.
Hours Needed to Prepare - Before Opening and After
Hours Activities - Hours to prepare depend on the
beauty supply distribution method you are using but, overall, you
will be spending a minimum of an hour to prepare and set up for
opening or showing products. Plan to spend the same amount or more
to close, do inventory, and submit orders.
Number of Employees Needed To
Run This Business:
Minimum Number of Employees - During the
Start Up Phase: You can start this business yourself on a
full- or part-time basis.
Number of Employees - Once Your
Business is Up and Running Successfully:
- Website maintenance
- Sales and marketing
- Scheduling
- Billing
- Inventory control
- Correspondence
- Product delivery
- Customer service
- Product distribution
Skill Requirements for This Business:
- Cosmetology
- Biology
- Knowledge of chemicals as well as herbs and botanicals
- Marketing and promotion
- Applied sciences such as reactions of combined chemical or
natural bases
- Retail sales
Licenses:
There are many recipes for creating your own cosmetics but
people buy products that pass FDA approval. This is a safety issue
and one that you will want to be fully aware of to avoid costly
lawsuits.
If you are starting your own line of products, bear in mind:
"The U.S. Food and
Drug Administration (FDA) which regulates cosmetics in the
United States defines cosmetics as: "intended to be applied to the
human body for cleansing, beautifying, promoting attractiveness, or
altering the appearance without affecting the body's structure or
functions." This broad definition includes, as well, any material
intended for use as a component of a cosmetic product.
The FDA
specifically excludes soap from this category." In addition, the
FDA requires strict adherence to the labeling of all ingredients in
beauty products.
If you are a distributor of beauty supplies, you can expect to
have an agreement with the supplier, including franchises. Some
suppliers and importers will not sell products to people who do not
have cosmetology licensing. You may also need an import
license.
If you are a distributor for home-based beauty supply
businesses, you will not need licensing as the company you work
with has the licensing, conformance with the law, and they will
give you a distributor's agreement.
To make a brick and mortar business legitimate, you will need a
business license and tax i. d. number along with any zoning and
other retail permits.
Approximate Minimum Start up
Cost:
Bare essential: - If the business is
home-based, you can expect to pay under $100; in some cases, less
than $30 to start selling and making commissions. On the other end
of the spectrum, a brick and mortar store will cost about
$2,500-$5,000 for the initial overhead, licensing, and
products.
Minimal exposure - Because of its
highly-competitive nature, you will need to go the extra mile and
spend about $250-$500 on signage, flyers, brochures, and business
cards.
Necessary Equipment to Run this Business:
 Necessary Start-Up Equipment & Supplies:
- Cash and credit card processing
- Shelving/storage
- Products
- Marketing material
- Samples of perfumes, cosmetics, etc.
- Phone (cell, Skype, etc.)
- Computer (website)
Supplementary Equipment: - Equipment
or helpful products that you can acquire to once your business is
off and running:
- Signage (including on vehicle)
- Demonstration area(s)
- Warehouse/storage
- Toll-free phone number
- Tables and coverings
- Chairs
- Mirrors
- Portable water for mixing solutions, cleaning applicators,
etc.
- Mixing dishes
- Cotton balls, towels, plastic capes, gloves
- Display case(s)
Monthly Expenses To
Consider:
- Answering and/or cell phone service
- Warehouse or other storage rent
- Wages/Commissions
- Products
- Internet access
- Advertising/Marketing
- Certifications
- Rent/lease
- Electricity
- Water
Special Requirements For This
Business:
- You may need additional licensing, depending on your niche and
whether your are applying beauty products on a customer's hair,
nails, skin.
- Ongoing beauty courses for you and your staff.
- Conscious of FDA approvals and bans of certain chemicals and
other bases in beauty products.
- Renewal of specific licensing and permits
Pros And Cons:
The Pros of Running a Beauty Supply
Business:
- A beauty supply business is one of the easiest to start.
- You have the advantage of being your own boss and setting your
own hours.
- You get to work with many different kinds of people.
- You may get to travel.
- This business is completely expandable.
- Can be highly lucrative
- You can start your own beauty line from home (Ezine).
The Cons of Running a Beauty Supply
Business:
- At risk of customer complaints; allergic reactions to
products.
- At risk of lawsuits as a result of consumer complaints.
- Depending on the services you provide, you may have to handle
substances that may be toxic.
- Product arrivals may be delayed or out of stock for long
periods of time.
- Highly competitive
- The cheapest wholesalers may carry products that carry products
that are not FDA-approved or contain chemicals that cause adverse
reactions.
Type of Customers You Need to
Attract:
The target market of the beauty supply business is varied and
wide for both men and women.
Once you decide on your niche, you will be able to determine if
you need a storefront, website, or appeal one-on-one in home
settings.
You can concentrate on a specialty such as African-American,
luxury/spa, new/trendy, and hard-to-find products that will appeal
to a specific group or age-range.
You can also look at combining your beauty supply business with
an existing beauty shop, salon, spa, and even plastic surgeon
offices.
Beauty Supply Business
Statistics:
To see specific data and statistics on the many facets of the
beauty supply industry, please see Valuation
Resources.
Revenue:
The beauty supply business' revenue accrues billions of
dollars annually, worldwide.
Resources:
Industry-Specific Websites:
Jinny
Marlo Beauty
Courses:
Beauty Schools
Directory
ELearning
Cosmetology
Equipment and Supplies:
Discount Beauty
Center
TM Trading
Forums:
Salon Geek
Franchises:
Info.com (hundreds of
beauty franchises)
Associations:
Pro
Beauty
Safe Beauty Association
Black Beauty Association
Allied Beauty
Association (CA)
Books:
The Business of
Beauty
Beauty Imagined: A History of the Global Beauty Business
Beauty Forum Magazine
Software:
Beauty Advisor
Salon Pro
Salon Max
Other:
Skin Deep: The Business Of
Beauty DVD
Related Businesses:
- Cosmetology: hair, cosmetics, nail
- Stage and movie makeup and application
- Dance/musical productions makeup
- Modeling/Fashion Photography
- Perfume manufacturing
- Import/Export
See Also:
 Starting A Business Checklist: This section helps you cover all bases when you are getting in to your own business.
 Complete List of Business Ideas - A list of all our business ideas that you can use to stimulate your entrepreneurial spirit. Choose from over a hundred detailed pages.
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