8 Steps To Become a Handmade Cosmetics Business


Do you pride yourself on being able to make unique haircare, skincare, or makeup products? And are you looking to start your own business, be it full-time or part-time? If you just answered ‘yes’ to both questions, then you can turn your skills into cold cash by starting your homemade cosmetics line.


Homemade and artisan cosmetics are becoming more and more popular due to booming consumer demand for custom made cosmetics. And now is the best time to break into this lucrative market. One of the bright sides of this business idea is that you don’t have to be worried about whether your target customers live close to your locality because you can simply retail your products online without having to leave the comfort of your home.


Starting a homemade cosmetics business can be fun and financially rewarding, but you need a good deal of planning, research, and dedication to start well and succeed. If the idea of starting a homemade cosmetics business sounds alluring to you, then read on to access our cosmetic line business plan, learn and understand the guidelines for getting started.

Starting a Handmade Cosmetics Company – Sample Business Plan Template

1. Decide what type of cosmetics you want to sell and to whom-:

Your first step in beginning a homemade cosmetics business is to determine what products you will offer to consumers and your target market.

Will you specialize in organic cosmetics for babies, or will you make hair care products for blondes? If you know how to make more than 10 different types of products, will you offer all or some of them from the start? Will you sell your products online, offline, or through both channels?

Deciding your products, target market, and how you will reach potential customers will help you focus right from the start since you will know where to channel your energy, time, and other resources you need to invest.

2. Find out government regulations regarding cosmetics-:

Before starting your homemade cosmetics business, you need to find out if there are government regulations that regarding the market, such as those governing how to label your products, ingredients that cannot be used, and how to advertise without making blatant medical or health claims. These regulations vary by state or country, so what obtains in another state might not hold in your own land. Be sure to know all the rules that apply in your state and country to avoid breaking any rules.

3. Test your products-:

Even if you are confident of your product's efficacy, you need to test it before launching it in the market. Start by writing formulas for your products. Then, order natural oils, butter, fragrance, skin-safe coloring, and other ingredients, as well as bottles, jars, tops, and other packaging materials.

Then make your test products and have them tried out by family and friends with varying skin tones and types, if possible. Get their feedback regarding ease of use, efficacy, and what price they would be willing to pay for the products. Then use the feedback you get to adjust your formulas (if necessary), decide on pricing, and make other essential decisions.

4. Research current trends-:

One of the smartest ways to break into the market is to start with products that people are crazy about at the time. So, you need to research current and predicted cosmetic product trends to understand cosmetic scents, colors, and ingredients consumers are interested in and ready to buy. This will help you develop profitable products since they will most likely be accepted in the market right from the start. However, you must bear in mind that you will need to adjust your formulas to be in line with your market research findings, if necessary.

5. Design your labels-:

Design labels for your product line and has them printed. You will need to include information such as net weight, volume, list of ingredients, special precautions (if any), and other necessary information. Refer to your cosmetic product regulations in your state or country to ensure that your product labels include the required information.

6. Find suppliers-:

Since your business will be operating on the manufacturing model, you need to have suppliers for the various raw materials you will use often. It is highly recommended that you have more than one supplier for each ingredient and packaging material. This is necessary, so you can have other suppliers to turn to should your main suppliers run out of supplies.

7. Set up your store-:

If you intend to sell your products offline, you will need to acquire a store or kiosk where customers can buy your products. Be sure to have your store located where your target customers can easily find and access it. If you intend to sell your products over the Internet, you must set up a website where customers can order your products. Better yet, you can set up a mini-store on online marketplaces such as eBay, Amazon, Etsy, and so on. This is cheaper than setting up your own website.

8. Start production and marketing-:

Once you have covered all the steps explained above, start production. And start marketing your products aggressively through offline and online channels. Offline channels include display advertising, trade fairs, distributing fliers and handbills, sending newsletters to prospective consumers, and so on. Online marketing strategies involve setting up a website or blog, pay-per-click adverts, online display adverts, search engine optimization, and social media marketing.

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