Making cosmetics, makeup, skin care and hair care products is a multi-billion dollar industry – but you don’t need a big budget to start your own cosmetics business.
In fact, you can start a cosmetics business for much less than the cost of many other less profitable ventures.
Click here to discover the secrets and formulations for starting your own cosmetics company.
You’ve probably read success stories of young entrepreneurs who started out as home-based cosmetic makers and went on to become the names behind some of the most popular and successful cosmetic companies in the beauty industry today. The Estee Lauder business empire had humble beginnings, as did so many others.
These are just some of the popular skin, hair care and makeup items you can make and sell in your cosmetics and skin care business:
Face creams and lotions – moisturizers for day and night
Specialised skin treatments – anti-ageing and acne
Body care – body butters, exfoliating scrubs, creams and lotions
Sun creams – UV protection, self-tanning and after-sun moisturizershttp://www.entrepreneur.com/businessideas/865.htmlHair care – shampoos, conditioners and styling products for different hair types
Makeup – including lipstick, lip glosses, mineral formulas, mascara, nail polish
Baby care products and men’s skin care
Hand care – washes, scrubs, moisturizing creams and lotions
If you think cosmetics manufacturing requires a sophisticated and expensive laboratory, think again. This is one of the common myths about starting your own cosmetics line.
You can start a high profit cosmetics manufacturing business with basic equipment for low start-up cost. And you don’t need to be a cosmetics chemist – this is the other common myth. With professional cosmetic formulations and manufacturing instructions, you can easily manufacture cosmetics, skin and hair care products, plus toiletries, using top quality ingredients.
Making cosmetics is one of the most profitable businesses on earth – profit margins easily reach 1000%. Products which retail for $100 usually cost between $1 and $3 to make!
However, in order to make these kinds of profits, you must own your cosmetics formulations, so as to be able to manufacture your range of cosmetics yourself.
If you contract a laboratory to manufacture cosmetics for you, much of the profit will go into the pocket of this cosmetics manufacturing company – not yours.
Check out this story here about a young group of students who started their own skin care business making lotion – in just a few years, it’s now worth a million dollars.
If you own your cosmetic formulations, you will be in control of your business. You will be able to choose your own cosmetic ingredients suppliers, negotiate better deals, formulate your own top quality recipes – comparable with any leading brand, make any size order you require without the restriction of minimum quantities, etc.
I read an article on the entrepreneur magazine website (you can read it here).
To summarize, their advice is:
“The (cosmetics) business can be set in motion for less than a $5,000 initial startup investment. Locate a manufacturer of cosmetic products who doesn’t have representation in your community, state or even country. Negotiate an exclusive contract to represent and distribute their cosmetic products in the desired area. Once the distribution contract has been secured, the cosmetics can be sold to retailers on a wholesale basis. Or you can hire a direct sales team whose main focus is in-home sales of the cosmetics. Both approaches have the potential to generate enormous sales and profits.”
I’ll certainly agree that starting your own cosmetics company has the potential to “generate enormous sales and profits” – but with all respect to entrepreneur magazine, this is not the best way to go about it.
For much less than $5000, you can start your own business as a cosmetics, skin care and makeup manufacturer – not a wholesaler. Manufacturing and wholesaling combined makes good sense – but the wholesale cosmetics business model whereby you act as a “middle man” is seriously flawed for a number of reasons I discuss here.
As a wholesaler, you are at the mercy of a manufacturer who, at any time, could potentially pull the plug on your business. They could stop supply, change ingredients or formulations, delay shipment, etc – if you want to start your own cosmetics business, make sure you’re in control.
Making cosmetics and makeup is a rewarding and creative career – you can mix different micas, pigments and perfumes to create your own unique colors and fragrances.
With a bit of experience under your belt, you’ll also be able to create your own formulations, fill gaps in the market, design unique packaging and labels.
When you own the cosmetics formulas, you can even become a private label cosmetics manufacturer.
What are private label cosmetics?
Many businesses – hair, beauty and spa salons, plus many others – are increasingly becoming aware of the value in selling and promoting their own brand products, carrying their own logo on their own label.
Why? Because, when they promote their own brand, they increase customer loyalty to their own products and their own business – not an international company that sells its skincare, haircare and cosmetics formulations in hundreds, if not thousands, of other salons, pharmacies, department stores, etc.
When you establish your own cosmetics business, you can manufacture cosmetics, skin care, hair care and toiletries for other retailers as a private label manufacturer.
AustraLab provides the cosmetics formulations, along with all the manufacturing instructions, marketing knowledge, labeling etc, to enable you to start a successful cosmetics business. You can benefit from the industry knowledge of a cosmetics chemist with over 25 years experience making cosmetics.
Click here to learn more about the AustraLab Cosmetics Manufacturing Business Opportunity and start you own high profit cosmetics business.