Beauty Products Store Business Plan – Cosmetics Line Business

Thinking about all the different businesses to invest in, you will definitely look for conditions, where a business has more demand and possesses the full potential of growth. These words truly match with the beauty products business which is currently doing an outstanding performance in terms of sales and demand creation.

There has been a drastic change in the use of cosmetics in the current system which was initially used on the basis of gender. Few years back, the term cosmetics sounded good and purposeful only for women. Men as an opposite sex was totally neglected from being a user of cosmetics. But today, cosmetics rule the world.

Everybody is trying to show themselves presentable and classy in the society. And as a mantra for it, people believe in beauty products. This belief is the key to your business and with this you can bravely make an entry in the market as a beauty products business owner.

In this article I will be categorising the information into two sections. One for the ones who buy and sell beauty products and the other for the ones who intend to make their own beauty products and sell. You can choose between the two depending on your abilities and resources.

Business license

To open a beauty products shop, you will require additional licenses other than the retail license. For people looking to resell the beauty products by purchasing it from wholesalers, you will need to register in the Voluntary Cosmetic Registration Program (VCRP). This program binds in the distributors of beauty products and gives you the authority to sell cosmetics in the United States.

This registration and relatable details can be found in the F&D website of the United States. This website gives you the directions to fill in the application form for the program and also mentions the requirements for such an application.

Coming to producers of these cosmetics, the same program is applicable. This program allows you to make the produced product commercial on the market. With these simple steps, the registration of the business and licensing is done.


Rushing to the location decisions, what do you think can a location do in a beauty products business? My answer for it would be a LOT. Yes, the stress on lot is to make you feel how important this decision is. A beauty products business should necessarily be located in places where there are apparel shops around.

Apparels and beauty cosmetics are likely to fall under the same category. Apparel shopping never ends with apparels alone, it always drives a customer to beauty section. Thus, finding a place within an apparel complex would be perfect for you to reach your customers.

Another equally productive location can be shopping malls. People come there on leisure hours and this is the key to your business. Their mind will be ready to accept any sort of new products or new services explained to them. This is psychologically proven in the findings of sales inducing methods.

For example, a person might pass through your shop in a shopping mall. A small demo of the products you have and a simple explanation of each is more than enough to make them buy your product. I would say, shopping malls can really bring in more customers to you than shops outside the malls.

Next location would be areas that are meant for that particular product. This means, a street which is known for fashion and style. Every place in the world has one area known for shopping a particular product. Likewise, your city will also have one. Choose that place and go for it. An automatic increase in sales will happen if you mingle with shops of similar products.

For a home-made beauty product, I would suggest you to carry out the business in any available location. The reason is that you are a wholesaler and not a retailer. There is an absence of the element “direct consumers”. All you have to do is reach the retailers and develop contacts to get orders for production.



In a beauty product business, the most important type of promotion to adopt is giving trial packs. Customers will look for a trial pack to check if your product matches your need and body nature. It is totally acceptable that people prefer different products that compliments their skin type.

You may face rejections a lot of time, but that does not mean your product is of low quality. It is just that the compatibility of the product and the person buying it is bad. Anyways, it is your duty to attach trial packs of new products to customers. It does not happen only at the act of buying.

It can take place even for subscribers of a particular brand. You can take an example of Sweden’s Oriflame products. Next promotional idea is to convince them to sit for a trial makeover. You would have notices sales representatives standing in the malls next to their shops.

These people have a convincing capacity to make people sit for a makeover session. It is an obvious case that people buy things which make them look beautiful. Once they see themselves enhanced in the use of any beauty product, without any doubt they purchase it.

Coming to the production of beauty products, and its promotions you have to adopt complex strategies for promotion. This is because, you are a wholesaler and it is often an invisible element in the market. Contact as many retailers you can and fix appointments to meet and tell them about your product.

Before all that create a brand for yourself which happens only if your quality is outstanding. Build a reputation for yourself and then comes orders trafficking. Once your products are found successful in the market, retailers will start approaching you for orders. Till then, initiations will start from your side. What can you do to attract retailers? The following are some of the ways you can promote your wholesale beauty products business.

  • Offer them free transportation of goods from your location to destined location
  • Involve in Vendor Managed Inventory (VMI)
  • Give them freebies for purchase more than a particular standard
  • Pack the products in a unique way differentiating it from factory products (Home-made products should be packed in a different way to make customers feel that the products are organic)
  • Satisfied supply and response whenever there arise an enquiry


The investment for a beauty products business is totally dependent on the quality of products you purchase and store in the shop. Yes, your location and resources also make a part but the brand of products makes the largest contribution in deciding the investment.

Leaving the products to be purchased, only the business set up would demand you an investment of $30000. With this you can add the costs of the products you purchase. You might wonder how brands can make a difference in investment.

It can definitely make because the price of a well-established branded product and a product that has recently entered the market differs on a high scale. This will show reflections on the cost at which you purchase them.

Let us now discuss about the investment needs for a home-made beauty products business. Here, even if your location is fixed somewhere else other than your home, the investment depends majorly on the materials you use for production.

Since you are producing organic beauty products, the expenses are quite less estimated. You might have to spend a little more on packaging and dispatching. These are the areas you will be spending your money and this amount to $10000 initial investment.

Other services like VMI will demand for extra employees for your business. But that can also be limited to one or two. In the end, the business is purely small scale.

Concentration on varieties

Needless to mention, there is a condition that you will have to store all the different varieties of products in your shop. Even for the organic product producers, variety is very important. Stay with the market demand by closely analysing the products released by your competitors.

As retailers, maintain a checklist of products that should be present in every cosmetic store. Also, make sure that you follow up the new releases of a brand. Have an eye on the reviews of the products too. Though you are just a retailer, people will rate you on the basis of products you sell.

Do not go wrong by selling cheap and low-quality products. Then comes the safety aspect. Have a regular check on all the products for their expiry dates. And for those who are producing organic products, make sure you pack it in the most safe and appropriate way.

Mentioning the right time period within which the organic products have to be used is also important. While producing beauty products, try to make variations that can make a difference in sales. Some of the useful variations are,

  • Smell
  • Colour
  • Purpose
  • Skin types
  • Size

Additional services

Like any other business, here too you can enhance the business and increase the rating. As a beauty products seller, you can bring in additional services of derma consultation. Similar services which fall under the same category of skin care can be brought and this can make a huge impact in the rating given to your business by the public.

Consultation can be provided at a free cost or for a lesser fee depending on your abilities to manage it. There is another additional service you can provide here in this category. This is the makeover packages and references from your side.

I would call it an advisory service where you will suggest trusted places where makeover is done at an appreciable quality. You can do this in the form of affiliate marketing too. And this can earn you more money apart from the actual sales.

How many people to hire?


It is an art to hire the right number of people for right positions. Clearly analyse what your business demands from you. The size and the investment you have plays an important role in deciding the number of people you have to recruit in your business.

I would suggest you to have a minimum of 3 sales representatives at the store who are well trained in the cosmetics stream. While recruiting, make a proper assessment of each candidate if they have knowledge and experience in the field of beauty products.

In case of a producer of organic beauty products, you can recruit a minimum of 5 workers who will be put in different tasks. The different tasks here denote making, packing, dispatching, VMI etc.

To maintain your brand name, train the workers before they are assigned with the work of production. Give clear and precise instructions of production and packing so that there is no errors or mismatch between the quality of the products produced.

Make an online presence

Lastly, I would recommend you all to own a website displaying your products. This will increase the chances of reaching your customers worldwide. Also, there are possibilities of being featured in the beauty blogs.

On the other side, you can start blogging where your website will be visited by a number of people on a daily basis and this indirectly communicates your brand to the market. But before engaging yourself into online sales, keep your business equipped with all the resources right from receiving orders till dispatching the products to different locations of the world.


Having said all these, I think beauty products business can definitely be a promising option to witness a reasonable income in a short span of time. The demand for the business is also at the highest and this is the right time for an entry.

Don’t forget that men are also one of your customers. While producing, abide to safety and health regulations. Test it in the market and then go for large quantities of production after a successful outcome.

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