Starting a skincare business can be a lucrative and rewarding endeavor. However, several important steps must be taken to ensure success. This article will outline the essential steps for starting a skincare business.
Ten Steps to Launching a New Skincare Business
1. Choose Your Type of Skincare Business
The first step in launching a skincare business is to identify the type of business you want to launch. You might choose from the following types, among others:
- Natural or organic skincare
- Medical grade skincare
- Spa and salon skincare
2. Name Your Skincare Business
Give your skincare business an identity so people will consider it a well-known and respected brand. You can take the name of your skincare business from your industry, focus on a geographical location, or use your own name, among other options.
The main goal of naming your skincare business is to make it sound appealing and trustworthy so that potential customers will want to use your products and services.
3. Determine Your Skincare Business Model
There are several possible types of business models for a skincare business, including:
- A product-based skincare business that manufactures and sells its line of skincare products
- A service-based skincare business provides professional treatments such as facials, massages, etc.
- An e-commerce skincare business that sells skincare products online
No matter which model you choose, ensure it aligns with your business goals and the products or services you offer.
4. Choose a Legal Form for Your Business
By incorporating your skincare business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your skincare business will determine the taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common skincare business structures.
5. Write a Skincare Business Plan
All skincare business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team.
When developing your skincare business plan and strategy, you should think about the following questions your customers might have:
- How can I improve the appearance of my skin?
- What are the benefits of using your skincare products?
- Do you offer any guarantees?
- Are your products safe to use?
- What are your prices?
Read our article about how to write a skincare business plan.
6. Apply for the Necessary Permits and Licenses
You may need to obtain required licenses and permits before launching your skincare business.
For example, if you plan on selling skincare products, you will likely need to obtain a license from the FDA. And if you provide professional treatments such as facials or massages, you may need a cosmetology license.
You must also register your skincare business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
7. Determine Your Budget & Apply for Funding as Needed
In developing your skincare business plan, you will figure out how much funding you need to start and grow your business.
If you have funds to invest in your skincare business, you may consider taking advantage of that. In addition to personal funds, other forms of potential funding for your skincare business include traditional bank loans, SBA loans, credit cards, angel investors, and family and friends.
Read our article about the costs associated with starting a skincare business to help you determine if funding is needed.
Read our article about how to fund your skincare business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your skincare business, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access and accounting software for tracking expenses and revenues. You may also want to invest in a customer relationship management (CRM) system to help you manage your customer data and interactions.
9. Market Your Skincare Business to Potential Customers
Before selling your products or services, you must let the world know you exist. The first step is to create a website so people can learn more about your products or services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the skincare industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Skincare businesses should consider the following promotional strategies for which you should start getting prepared:
- Create a website that showcases your products and services.
- Use social media to market your business, including Facebook, Instagram, and TikTok.
- Network with other professionals in the skincare industry.
- Give free consultations or samples to potential customers.
- Sponsor events or donate products to charity auctions.
Read our article about how to market your skincare business for more tips.
10. Get New Customers & Grow Your Business
When you promote your products or services, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your skincare business.
Read our article about how to effectively grow your skincare business to learn more.
Starting a Skincare Business FAQs
The skincare industry is proliferating, and entrepreneurs have many opportunities to start successful businesses. Skincare products and services can be sold online, in brick-and-mortar stores, or through a combination.
To start a successful skincare business, you need a great product or service, a solid business plan, and the right technology and software in place. You also need to market your business effectively to attract new customers.
Many skin care businesses can be started from home, especially if you’re selling products online. You can also operate a brick-and-mortar store from home, but you may need a separate space for product storage and shipping.
If you plan to see customers at your home, be sure to have a dedicated space that is professional and inviting. You may also want to consider investing in business insurance.
Starting a skincare business online is relatively easy and can be done with just a few steps. First, you need to create a website that showcases your products or services. Then, use social media and other digital marketing channels to promote your business. You can also sell your products through online marketplaces like Etsy, Amazon, or eBay.
Here are a few tips to help you start a successful skincare business:
- Find a niche market or target audience for your products or services.
- Develop a strong branding strategy.
- Create a robust marketing plan.
- Invest in the right technology and software.
- Hire qualified and experienced employees.
- Stay up to date on industry trends.
- Offer excellent customer service.
- Continuously test and improve your products or services.
- Be patient and stay focused on your long-term goals.
A simple checklist to use when starting a skincare business is as follows:
- Choose Your Type of Skincare Firm: This should be based on what you are best at and how much experience you have. Remember to always keep your interests, skills, and experience in mind.
- Name Your Skincare Business: This should be done with care, as your brand is essential for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Skincare Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Skincare Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations, you will be required to apply for a business license and permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Skincare Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products or services they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products or services.
Starting a skincare business can be a great way to make money while helping people look and feel their best. To start a skincare business, you need to have a professional and inviting space, as well as business insurance. You also need to develop a branding strategy and create a marketing plan. Following these tips can set your skincare business up for success.