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How To Start a Beauty Supply Business

How To Start a Beauty Supply Business - Background Info:

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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:

Image of lipstickGeneral 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:

Image of A women applying makeupNecessary 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:

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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

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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:

Checklist GraphicStarting A Business Checklist: This section helps you cover all bases when you are getting in to your own business.

Business People 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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