How to Start a Cosmetics Company

                             
Cosmetics, according to the Food and Drug Administration, are products meant to enhance the skin, hair or teeth, and include makeup, lotions, beauty creams and fragrances. Throughout recent years, independent cosmetic brands have become more popular and common, as consumers search for products that are free of unnecessary chemicals, or which can be easily customized just for them. If you are thinking of starting a cosmetics company, there are many things you can do to grow it into a successful venture.

Step 1Target a niche for your cosmetics company. For instance, you can focus on making cosmetics for ethnic women, makeup that covers up tattoos or scars, organic fragrances, mineral cosmetics or lip balms.

 Step 2
Become familiar with FDA guidelines concerning the sale, labeling and production of cosmetics by visiting the official website, FDA.gov.

Step 3Formulate and test your cosmetic products on yourself, family, friends and all who are willing. If you test on people who are not close to you, consider having them sign a liability waiver, in case someone has an allergic reaction.

Step 4Establish the selling model for your business. You can retail your cosmetics directly to consumers, or business to business, meaning selling your cosmetics in bulk to retailers, who then sell the products at a marked-up price to their customers. If you prefer, you can sell your cosmetics on a wholesale and retail basis.

Step 5Obtain the permits needed in your city to start a retail business. Depending on where you live, you may need an employer identification number, fictitious name certificate (DBA), resale permit or sales and use tax permit.

Step 6Buy liability insurance -- this will protect your business in the event a customer has an adverse reaction to your cosmetics and decides to take legal action. Insurance typically costs only a few hundred dollars per year.

Step 7Find venues to sell your cosmetics. Options include a mall kiosk, brick-and-mortar store, your own e-commerce store or an artisan marketplace, such as Etsy or 1000 Markets.

Step 8Purchase wholesale supplies for your products, such as colorants, bases, fragrances, preservatives and bottles. Buying wholesale will save you money, as opposed to paying retail prices at a craft or hobby supply store.

Step 9Develop attractive packaging and labels for your products. Many people choose cosmetics not only based on their performance and quality, but how they are presented.

Step 10Join a network for cosmetics producers, such as the Independent Cosmetic Manufacturers and Distributors Association. Doing so will help you meet suppliers, keep up on industry regulations and trends, and connect with potential customers.

Step 11Promote your cosmetics company. Distribute samples to local makeup artists, send press releases to publications that cover beauty products, launch a promotional blog or open social networking accounts to introduce your company to new people.

Written by Melinda Gaines