Homemade cosmetics goods are in high demand, now more than ever. From lip balm, body butter, deodorant, to lotions and beyond, the latest crop of consumers don’t want the chemical substitutes past generations have tolerated. This is a huge opportunity for anyone that enjoys making these great products and also has an entrepreneurial spirit. That said, there are still a few things to know when starting a homemade cosmetics business.
When we picture starting a business, we picture the thrill of making our products, reading glowing reviews, and seeing smiling customer’s faces. We don’t picture the taxes, paperwork, and changes to filing statuses. Like anything worth doing, there’s always a bit of red tape to push past. The start of every business is just the same.
One of the biggest things to know when starting a homemade cosmetics business is the advantage of doing the paperwork first. If you want to take advantage of important money-saving opportunities like wholesale ingredients, tax breaks on expenses, and access to business-to-business markets and expos, you must get that paperwork done. Your business will need to be properly filed, an account set up, and a tax ID filed for and acquired before you can dig in.
When it comes to cosmetics, the only thing that matters is the product. No matter how flashy or well-marketed your stuff is, it won’t matter if no one wants to buy it. Make sure you start with decent equipment and excellent ingredients.
Don’t put anything in there you wouldn’t want on your skin, either. Follow all FDA regulations. Being creative is fine, but it’s essential to know what is and is not allowed. Carefully track measurements and amounts of ingredients, too; you’ll need that information for your labels.
Once you have the inside is taken care of and your cosmetics pass all FDA requirements, it’s time to look into marketing. As mentioned, at least part of your branding space will have to go towards labeling. While it may seem redundant, it’s the law. Customers will often buy based on what they see in the ingredients list. Take some time to figure out how you want to identify your business in terms of logo, mood, and color schemes.
These days, it’s easy to design labels at home or order them directly from label printing businesses. Lastly, put a lot of thought into your packaging. Good packaging will keep your product safe, fresh, and appeal to your customer base. There is a reason why cosmetic packaging tends to look the way it does across the board.