If you are planning to mainstream your beauty passion into a home-based business, there is no better time than now. Global market size of lip care business was whopping 2 billion US dollars in 2020. A CAGR(2021-2028) of 5.6% is expected for the US market alone. It’s pretty simple to start your own lip gloss business and you won’t need any investor or a business degree. If you’re looking for a side hustle that pulls together your DIY and creative skills, look no further than a lip gloss business.
Legal Requirements to Start a Lip Gloss Business
The legal requirements to start a lip gloss business in the United States will depend on your location and type of the business. The US Food and Drug Administration(FDA) regulates the cosmetic industry. Therefore make sure your products are safe and live up to their standards, if you are manufacturing them from scratch.
Not only your products should be safe to use, but your packaging and labeling should also be on point. All the color additives in your lip gloss should be listed and approved for the intended application. Even if you’re not responsible to test your products and ingredients in them, you need to make sure they are not harmful in any way.
Even if you are planning to use just organic materials for your lip gloss business, you need to check with the U.S. Department of Agriculture (USDA) requirements. According to USDA, you can not market your products as ‘organic’ unless at least 95% of the ingredients you use if your lip gloss are organic. Any cosmetic product that fall into the term ‘organic’ must satisfy both FDA regulation for safety and USDA regulation for the organic claim.
If you are not manufacturing your own lip gloss products, you can ignore this section. However, you must make sure that they are safe. You don’t ever want to get a lawsuit on the safety of your products. I will take more about different routes you can take to operate your lip gloss business in the latter steps.
Registering your Business
Registering your lip gloss business has many perks. It helps to establish your business as a legal entity and protects you from bankruptcy or possible lawsuits. Out of different business structures, the most popular option for new business owners is Limited Liability Company(LLC).
An LLC protects you from personal liability in most cases, your personal assets — like your vehicle, house, and savings accounts — won’t be at risk in case your LLC faces bankruptcy or lawsuits. I would highly suggest you start with an LLC and change it to an “S” business enterprise or a “C” Corp later. This will help you compete with the bigger players in the market and grow your business.
Next step is getting and EIN number. An EIN is a 9-digit number provided by IRS to small businesses to identify them as tax paying entities. You will need an EIN while hiring employees, opening a business bank account, filing taxes and almost every other stage of the business. Fortunately, it is free and easy to get an EIN number online through IRS website.
If you are going to manufacture your own lip gloss products, you would also want to get a trade name certificate. Also contact the FDA to find out what licenses you need. Keep in mind, whether you sell online or in a physical location, a business permit may be necessary depending on the laws in your state.
Lip Gloss Business Routes
A lip gloss line can be started in different ways. You can either manufacture them from scratch or sell white label lip gloss from a private lip gloss supplier. There is also different routes on how you want to operate your business. Do you want to start an online lip gloss company or you want to operate through a storefront. Or maybe you want to go hybrid and offer your products through online channels and physical stores.
Online Lip Gloss Business
Your starting costs will be significantly lower if you want to operate online exclusively. All you need is a professional looking website, engaging social media channels, high resolution photos of your products and an simple yet effective marketing strategy.
Lip Gloss Business through a Storefront
If you decide to operate your lip gloss business through a storefront, your finances are going to be significantly higher. Set-up costs, such as displays and decor, as well as rent and utilities are going to eat a lot of your budget. You will also need to focus on ways to advertise your business digitally and traditionally. Getting involved with the local communities and business organizations is a great way to promote your product locally. even if you open a brick-and-mortar shop, it’s a good idea to have a professionally designed website and a strong social media presence.
Making your own Lip Gloss from scratch
One of the best things about making your own lip gloss from scratch is having full control in creating a gloss that speaks to you. You will have many different lip gloss formulas to try from basic to fancy glitters to metallic shine. It’s probably a good idea to experiment thoroughly before you start selling your lip gloss.
If you have enough funds to start a lip gloss business, you can hire a cosmetic chemist to develop a unique formula for you product. However, I would strongly suggest ordering all the ingredients and making it yourself at home. You can either purchase all the ingredients separately or go for lip gloss starter kits.
1. Buying Ingredients separately
Here are all the ingredients you will need to make a lip gloss at home. I have also linked them with Amazon so you can purchase them easily.
- Lip Gloss Base 15 oz -> $20.40
- Coconut Oil -> $15.98
- Vitamin E -> $13.99
- Lip Gloss Glitters -> $9.99
- Oil Flavor -> $10.98
- Lip Gloss Tubes -> $11.70
That is it. You will need around $83 to start the first batch of production for your lip gloss line.
2. Buying Stater Kits
Buying starter kits for lip gloss is a bit cheaper but it will yield you with lower volume of batch. Nevertheless, starter kits is a great option for starters. Here are some starter kits, with amazon links and price, for lip gloss production.
When you assemble all the ingredients, just follow the steps below:
- Mix all the ingredients in the right proportion.
- Transfer your Lip Gloss mix into containers.
- Let your lip gloss cool for at least 30-45 minutes.
Voilà ! It’s done. Your first batch of lip gloss is ready.
Selling White Label Lip Gloss from Verified Suppliers
A white label lip gloss is produced by other company but they allow you to rebrand it to make it appear as if your company made it. The name ‘white label’ derives from the image of a white label on the packaging that can be filled in with a different company’s brand name and logo. Some of the best white label lip gloss distributors are :
These distributors often have MOQ(Minimum Order Quantity) requirements. If you don’t have enough funds for inventory, you can follow dropshipping business model. Dropshipping allows you to not worry about inventory at all, letting you focus solely in marketing and acquiring more clients for your lip gloss business.
Launching your Lip Gloss Business
Launching phase is the most exciting part of owning any business. It is incredibly fun and painful at the same time. Once your products are ready it is time to brand it properly and sell it to your customers.
Branding is the most crucial part of launching your business. It will help you stand out from all the other similar brands. Therefore as a part of launch and in order to have a top notch branding following are the key tasks you need to consider.
1. Choose a Business name
This step is highly important since it is the name that makes your brand stand out from competition. Make sure your lip gloss business has an attractive and simple yet catchy and easy to remember name.
If you are having trouble coming up a brand name for your lip gloss business, try Shopify Free Business Name Generator. It is my go-to tool whenever I need to brainstorm a brand name for my businesses.
2. Create a logo
A good logo is as important as your brand name. Logo helps your customer remember the name of your business. You don’t need to be a designer since Looka offers high quality logos at an affordable cost.
If you want a free online logo generator, I can recommend you go to Canva. Canva offers thousands of free images, fonts and elements to create a beautiful logo for your business.
3. Create lip gloss labels
Once you have your new logo, the next step is ordering your lip gloss labels. Make sure to order the labels of correct size. You can easily find a perfect label for your lip gloss brand over at Etsy. On average, it will cost you around $20.
4. Setup your Website
Having a website creates an online presence for your business. It allows you to market your products to millions of customers online. In this modern day and age, a website has become an indicator for credibility of a business.
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5. Launch social media pages
Social media has become an integral part of small businesses. It is one of the most effective way to promote your lip gloss business. Make sure your create a page in Facebook, Instagram, Pinterest and TikTok. These social media platforms will not only drive traffic to your store but also helps you to build an authority and a brand recognition.
Marketing your Business
You have learned how to start a lip gloss business from scratch. But how would you get your clients? The answer to this question is marketing. Marketing comes in different forms and flavors and you, as a owner, have to choose which option works best for you. After all, you want to acquire a customer with least money spent. Some of the best marketing tools are :
- Social Media
- Forums and Discussion boards
- Paid Ads
- Influencer Marketing
- Traditional marketing strategies(Flyers, Engaging with communities, etc.)
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