Ever wanted to start your own cosmetics company?
But you’re not quite convinced you can really make money?
I guess the skepticism is understandable – the cosmetics industry is shrouded in secrecy and previously ridiculously difficult to join.
You can get in now – click here to discover how to start your own cosmetics company.
I am often asked:
Is it really possible to start your own business making cosmetics and detergents?
Without previous experience in the industry?
On a small budget, without investing lots of capital?
Can you really compete with the multinational cosmetic manufacturing giants?
Can you really make it big?
Can you really build a million-dollar business in a very short time?
Well, I hope the following story will inspire you to know that you can start your own high profit cosmetics business – and it may even be worth millions within just a few years.
What if I told you that three young entrepreneurs in Kenya have done exactly that – with no previous experience in the cosmetics industry or in making cosmetics, and limited funds.
As most of us are aware, Kenya is a country facing many social, political and economic challenges.
It’s probably not the easiest place in the world to do business or make a buck.
But in three short years, a team of three aspiring entrepreneurs, determined not to become another jobless statistic, has proven that with determination and innovation, anything is possible.
Their company has been valued at an astounding $830,000 USD (that was in June 2010 – I’m guessing it’s probably worth a whole lot more now).
Before elaborating on their story, I should point out that these young business entrepreneurs are not AustraLab licensees. I’ve deliberately chosen them as an example so there is no bias involved. As you will see from their story, these guys did it the hard way. I’ll allow myself to show some bias here and say that AustraLab licensees have all the information, formulations and manufacturing procedures at their fingertips – it can be a heck of a lot easier to start your own cosmetics business than it was for these guys.
Back in 2007, three young Kenyan students got together and decided to start their own cosmetics company – Melrose Bounty Bown (MBB). They started with a modest investment of $1900 USD.
MBB looked at various business ideas, and decided that a cosmetics manufacturing company was the way to go.
Then they looked at the market in Kenya. They saw that most women buy two products – a lotion and glycerine – and mix the two together. Innovation came into play, and the trio decided to manufacture a beauty lotion already containing glycerine, with the addition of natural extracts.
They produce about 600 bottles a day with three variations on the formulation – avocado, aloe vera or sunflower oil – in 130 ml and 220 ml bottles.
This burgeoning cosmetics business focusses its sales efforts on small and medium high traffic retail outlets – including cosmetics retailers and distributors, wholesalers, supermarkets, etc.
With production and sales strong, MBB’s competitors offered to buy out this small but highly successful cosmetics company for $384,000 UDS.
In just about any country in the world, that’s a lot of money – and especially so in Kenya.
But MBB was not about to sell – they knew their business was worth much more, with the potential to grow exponentially.
Instead of selling their enterprise, MBB sold a 10% share in their business to Morex Media, a sales and marketing company, for $83,000 USD.
MBB manufactures just one product with three variations – the mind boggles at the potential for expansion. If, at this level, MBB has a million dollar business, what do you suppose would happen if they added a range of ethnic hair care products – shampoos, conditioners, hair treatments, leave-in moisturizers, relaxers, etc. How about specialist skin care products – anti-aging, acne, oil control products, dry skin treatments. What about mineral makeup and color cosmetics especially for ethnic skin tones?
Then there’s cleaning products and detergents … a multi million dollar business in its own right.
You can read more of the MBB story here: http://www.howwemadeitinafrica.com/kenyan-cosmetics-manufacturer-taking-on-large-multinationals/1211/
These three young Kenyans have built a million dollar cosmetics company in just a few years – without any previous experience in the cosmetics industry, without any degree or training in cosmetic chemistry or chemical engineering, without huge capital, and manufacturing only THREE products.
For those of you having doubts – if it can be done in Kenya, it can be done anywhere in the world! What’s stopping you from starting your own cosmetics empire and claiming your share of this massive industry?
To start your own cosmetics company click here.
And please take a look at this article about the criteria for starting a million dollar business.