The world is witnessing a boom in the cosmetic or beauty products industry. With a strong desire look good, the consumption of beauty products among teenagers went up significantly. Looking at the trends, starting a beauty business brings a lot of wealth benefits.

Thomas J Salzano, a New Jersey-based hair and beauty expert, traveler, photographer and blogger shares some important points that an entrepreneur should keep in mind before starting his/her own beauty products business.

Here’s what he has to say:

How does the cosmetic industry work?

Before starting beauty products business, you must know how it works. Study and learn about the existing brands. From their products selection techniques to staff management, from their marketing strategies to implementation method, study everything.

Thomas N Salzano

Cosmetic startups costs

The best bet to start a cosmetic business is to begin online as there are more chances to get customers there.

Costs completely depend on what type of formulation you are going to use. Important parameters that play an important role in this phase are the type of product you are going to make (body wash, fairness cream, emulsion etc.), a number of products at the starting stage, cosmetic formulation  development and production cost, packaging, marketing material and website.

Following are the key start-up costs:

  • Product development-> $3000-$4000 (for a single product)
  • Business Expenses-> around $2000
  • Marketing & Sales-> $500-$1000

Cosmetic regulations

The cosmetic industry is regulated by the Food & Regulation Administration (FDA). Go to its official website and check out all the latest information published by them regarding beauty product businesses.

Product testing

It’s your duty to make sure that the products are safe and effective. For that, there are a number of tests that you should run before launching the product:

  • Microbial testing
  • Stability testing
  • Safety testing

Cosmetic business license

FDA regulates cosmetics under the Federal Food, Drug and Cosmetics Act (FD&C Act). FDA, itself, does not license cosmetics firms. But, state or local authorities may require licensing or other important documents. So, you have to contact these authorities directly.

Promotion & Marketing

From digital to traditional, there are multiple ways by which you can promote your beauty products.

You can stand in malls or streets and offer samples to passerby and collect reviews from them. It is one of the best ways of mouth-publicity.

Launch a website or promotional blog and place your ads on forums that target your audience.

Use Facebook or other social networks to promote your product. Moreover, while promoting on social media, you can differentiate your audience based on age, location and interests.

This is Thomas J Salzano your trusted expert hairstylist, traveler, photographer and blogger, signing off now.