Starting a skincare line can be a lucrative business opportunity. Before starting, there are many things to consider, such as the products you will offer and how you will market them.
Here are the ten steps you can take to get started on building your very own skincare line.
10 Steps to Launching a New Skincare Line
1. Choose Your Type of Skincare Line
The first step in launching a skincare line is to identify the type of skincare line you want to launch. You might choose from the following types, among others:
- “Natural” or “Organic” Products: These products are made with naturally derived ingredients and are free from harsh chemicals.
- Clinical or Medicinal Skincare: These products treat skin conditions like acne, fine lines, wrinkles, sun damage, etc.
- Luxury Skincare: These products are often made with high-quality ingredients and a higher price tag.
2. Name Your Skincare Line
Give your skincare line an identity, so people will consider it a well-known and respected brand. You can take the name of your skincare line from your industry, focus on a geographical location, or use your name, among other options.
The main goal of naming your skincare line is to make it sound appealing and trustworthy so potential customers will want to buy your products.
3. Determine Your Skincare Line Business Model
There are several possible types of business models for a skincare line, including:
- Direct Selling: You can sell your products through a party plan, door-to-door, or online.
- Multi-Level Marketing (MLM): You can join an MLM company and sell their products through their network of distributors.
- Online Retail: You can set up an eCommerce website to sell your products directly to consumers.
- Wholesale: You can sell your products to brick-and-mortar stores, spas, and salons.
No matter which model you choose, ensure it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Business
By incorporating your skincare line, 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 line 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 line business structures.
5. Write a Skincare Line Business Plan
All skincare line 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, market analysis, financial projections, and management team, among other things.
When developing your skincare line business plan and strategy, you should think about the following questions your customers might have:
- What type of skin do your products cater to?
- What are the ingredients in your products?
- Are your products tested on animals?
- Do your products contain parabens or sulfates?
- How often do I need to use your products for them to be effective?
- Can I use your products if I have sensitive skin?
- What are the possible side effects of using your products?
- How much do your products cost?
Read our article about how to write a skincare line business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your skincare line.
For example, if you’re planning on manufacturing your own products, you’ll need to get a permit from the FDA. And if you’re going to sell your products online, you’ll need to comply with the FTC’s rules for internet advertisers.
You must also register your skincare line 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 line 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 line, you may consider taking advantage of that. In addition to your funds, other forms of potential funding for your skincare line 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 line to help you determine if funding is needed.
Read our article about how to fund your skincare line.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your skincare line, 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, which will help you keep track of your customers’ contact information and purchase history. A CRM system can also automate marketing tasks such as distributing email newsletters and coupons.
You should also have a professional-looking website for your skincare line. Your website should include an online store if you plan to sell products online. In addition, your website should have a blog to share skin care tips and how-to articles with your visitors.
9. Market Your Skincare Line to Potential Customers
Before selling your products, you must let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, Instagram, and TikTok. Also consider networking with other people in the skincare line 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 lines should consider the following promotional strategies:
- Host a launch party to introduce your skincare line to the public.
- Give away free samples of your products to potential customers.
- Run a contest on social media or your website for a chance to win free products.
- Set up a kiosk in a popular shopping mall to let people test out your products.
- Sponsor a charity event or donate products to a local cause to get your name out there.
- Speak at local skincare line conferences or meetups to gain exposure for your business.
- Advertise in popular skincare line magazines or online directories.
- Invest in search engine optimization (SEO) for your website so you come up in organic search results.
- Pay for online or offline ads targeting people interested in skincare lines.
- Get featured on popular skincare line podcasts or blogs to reach a new audience.
Read our article about how to market your skincare line for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers and be sure to establish systems to ensure consistency and reduce costs. When you’re ready, find and train the right people to help grow your skincare line.
Read our article about how to effectively grow your skincare line to learn more.
Starting a Skincare Line FAQs
Why Start a Skincare Line?
The skincare line industry is growing rapidly due to the increasing popularity of natural and organic products. This trend is driven by a desire for healthier, more youthful-looking skin.
There are many reasons why you should start a skincare line, including:
- There’s a growing demand for skincare lines.
- You can be your own boss and set your own hours.
- You can control your income potential.
- It’s a creative and challenging industry.
- You can make a difference in people’s lives.
What is Needed to Start a Successful Skincare Line?
To start a successful skincare line, you need to understand the skincare industry and what customers are looking for. You also need to create a unique selling proposition (USP) that sets your products apart from the competition.
In addition, you need to have a well-executed business plan, which includes a marketing strategy to promote your products. And you need to have the right technology and equipment to produce your products.
How Can I Start a Skincare Line From Home?
You can start a skincare line from home by setting up a small production area and investing in the right technology and equipment. You must also create a professional website and promote your products through social media and other channels.
Most important for running a successful skincare line from home is having a dedicated space for mixing, assembling, and packaging your products. It’s critical that you don’t accidentally mix in any allergens or irritants that could ruin a batch of products.
How Can I Start a Skincare Line Online?
You can start a skincare line online by setting up a professional website and promoting your products through social media and other channels. You must also invest in the right technology and equipment to produce your products.
For example, you'll need an eCommerce website and a way to obtain inventory. You will also need to invest in marketing, such as search engine optimization (SEO) and online advertising.
What are Some Tips for Starting a Skincare Line?
Here are some tips for starting a skincare line:
- Create a unique selling proposition (USP). What makes your products better than the competition?
- Have a well-executed business plan. This should include a marketing strategy to promote your products.
- Invest in the right technology and equipment. You'll need this to produce your products.
- Create a professional website. This will help you promote your products online.
- Promote your products through social media and other channels. This will help you reach potential customers.
- Invest in search engine optimization (SEO) for your website. This will help you come up in organic search results.
- Pay for online or offline ads targeting people interested in skincare lines. This will help you reach potential customers.
- Get featured on popular skincare line podcasts or blogs to reach a wider audience.
- Attend trade shows related to skincare lines. This will help you meet potential customers and partners.
- Join relevant online communities and forums to reach potential customers.
Where Can I Find a Simple Checklist for Starting a Skincare Line?
A simple checklist to use when starting a skincare line is as follows:
- Choose Your Type of Skincare Line: 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 Line: This should be done carefully, as your brand is important 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 Line Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Skincare Line 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 or 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 the right tools to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Skincare Line 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 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.
Summary
Starting a skincare line can be a lucrative business venture. Following these simple steps can increase your chances of success.