As you develop a skin care line, you should prepare to position yourself in a growing but highly competitive market. According to SymphonyIRI Group, a market research company quoted in Medill Reports, consumer spending on beauty products sold by mass retailers rose to $12.40 billion in 2010. As a new small business, however, it can be hard to get noticed if you don’t create unique skin care products for a target market. You won’t be able to compete with big business, but you can appeal to your niche market by being well informed about specific skin care issues among your target customers.
1. Decide on the products you want in your product line.
Although your plans may include a complete skin care line, you should begin with a few select products. Start small to keep your production and marketing costs affordable while you grow your business.
2. Develop formulas for your products.
Focus on fine-tuning formulas you already have for commercial production. Give samples to family and friends and ask for feedback. Decide on a memorable name for your skin care line. Research other skin care lines to make sure that your name choice is unique.
3. Make decisions about ingredients and packaging for your products.
Visit cosmetic supplier directories to find vendors. Contact vendors to ask for price quotes and shipping costs. Choose ingredients that you can get easily for an affordable price so that you can keep enough in stock. Select attractive and affordable bottles, jars or other necessary packaging.
4. Visit the “Business and Licenses” page on the U.S. Small Business Administration to find out about licenses and permits required to operate a small workshop in your area.
Apply for a Taxpayer Identification Number for your business. Obtain the necessary licenses and permits for a cosmetics workshop in your jurisdiction. Contact the relevant local authority to find out if zoning laws allow you to operate a workshop in your home. Look for affordable workshop space in your community if regulations prohibit you from working in your home.
5. Set up a business checking account to receive payments from customers.
If your workshop is in your home, rent a commercial mailbox to protect your privacy. Contact an insurance agent who specializes in small businesses to get quotes and information about general and products liability insurance. Sign up for insurance policies as soon as you begin producing your skin care line.
6. Purchase necessary equipment and utensils for your workshop.
Set up your workshop in accordance with the guidelines in your business license, or as directed by your local zoning authority. Schedule a safety inspection of your premises if required, before you begin production. Set wholesale and retail pricing for your products. Research comparable products by other small cosmetic manufacturers. Include your cost of materials and overhead to decide on prices.
7. Submit a press release announcing your new skin care line when it’s ready for sale.
Set up an account for your skin care line in social media interfaces. Join networks for cosmetics enthusiasts to talk about your skin care line. Send samples to bloggers and vloggers, and ask them to review your product line for consumers.
8. Contact area stores and boutiques where your target consumer shops to inquire about getting the stores to your skin care line.
Visit stores in percarry son to demonstrate your products. Leave product brochures with store managers and owners who express interest in carrying your skin care line.