Start a Cosmetic Business: Homemade Cosmetic Manufacturing Business Plan


cosmetic
Cosmetic business covers a whole range of products such as lipsticks, lip gloss, eyeliners and powder. Others are nail polish remover, false lashes and lotions.
 The business has may sub sectors in the fashion and beauty industry. Billions of dollars worth of cosmetic products are sold world wide yearly making the industry highly competitive and lucrative.
There are large and small business owners carving a niche in the cosmetic landscape. The business is ever changing and an entrepreneur interesting in launching a cosmetic line should be informed on new trends.
To succeed industrialist needs to focus on a niche market, develop high quality products and apply effective marketing framework. Target marketing by making custom made products is just a few business strategies.
Before you start your cosmetic line you need to write a business plan. There are many ways to write a comprehensive plan.
You can hire an expert, copy a template or research similar plans. Starting a homemade enterprise is challenging, fun and exciting. Here are a few ideas on how to write a homemade cosmetic business plan.
Homemade Cosmetic Manufacturing Business Plan
Company Summary
Incorporate the company into a limited liability entity. Focus on quality products, branding and effective market penetration.
Specialize in a niche market or offer a wide range of products. The company should have a chief executive office, procurement, marketing and strategic planning department. If you want to run a sole proprietorship home based format you perform most functions mentioned above.
Mission Statement
To effectively compete with established brand you need market research. The company should focus on quality control and product development. Offer a multiple range of products including competitive pricing.


Regulations and Permits
Your product needs to pass a simple standardization test. It also needs a national food and drug administration certification.
The packaging should have a precise description of ingredients that constitute the product. You need a federal tax business identification number and insurance cover.
The Product
The competitive advantages for small homemade products are adaptability, product testing and development. The cosmetic could be manufacturer by a third party through outsourcing contract.
The production company would handle mass production, packaging and shipment. The number of products manufactured depends on the business template.
 A complete cosmetic line includes cleansers, makeup, eye shadow, and body lotion. Others are creams, masks, facial scrubs, nail polish and nail polish remover.
The products should undergo extensive research, surveys, product testing and development. Develop many formulas using natural ingredients available in your local market.
Focus on quality, effect of substance on skin, color, fragrance and visual appeal. Stay abreast of fast changing trends, top brands and customer preferences.
You need a large sustainable source of raw materials. Common ingredients found in cosmetics include fruit extracts, herbs, and natural oils.
The Market
Market penetration depends on the popularity of the branded product. Offer high quality products with unique designs and attracted packaging.
Focus on an age group, demography and consumer market. To reach a wider customer base open sales outlets and offer private label deals.
Make your product appealing to young career women and middle-aged women. Marketing outlets for your cosmetic products include boutiques, wholesalers and retailers.
 Others are supermarkets, departmental stores and fashion fairs. You need an effective marketing campaign focused on natural, health related quality of your brand.
Create a Work Space
Since you intend operating a home based business you need to create an office. You need a sterile laboratory to develop the products.
Carry out lots of product testing, free samples to gather important data. The office needs furniture and electronic gadgets such as computer, modem, fax and dedicated telephone line.
You can hire a professional packaging company to design the packaging and product. Opening an outlet store for your products is a very good idea.
There is nothing wrong operating an online store to receive orders for your product. If your manufacturing partner provides drop shipment then your job is easier.
Use online market places to promote and sell your products. Print descriptive labels and follow trade guidelines on full disclosure ethics. Install basic laboratory equipment needed to develop your product.
Key Elements for Success
The key elements for success include creating high quality products and effective marketing.  Others are manpower development, quality control mechanism, e-commerce and retail outlet.
Build a Website
Create an interactive easy to navigate website. Populate it with content and images of your product. Add products description, benefits of using the product including price. Offer drop shipment services and accept online payments.
Marketing Trends
The blurred line between cosmetic categories provides an easy platform for merchandising. Mainstream cosmetics and herbal products fight for dominance in departmental stores.
Common trends include body bath products, fragrances and aromatherapy products. Others are skin care lotions, makeup, perfumes and colognes.
Marketing the Cosmetic Product
Advertise your product in local newspapers and magazines. Use handbills, complementary cards, banners and poser to reach customers.
Make sure your outlet looks appealing and elegant and offer good service. Create sample sized products for distribution at supermarkets, malls and shopping centers.
Market your products to salons, boutiques and fashion house. Use online resources and campaigns to drive traffic to your website and possibly sales.
Marketing Distribution Channels
Distribution channels are many in the cosmetic industry. Here are a few places to sell your products
Salons
Spas
Specialty stores
Cosmetic discounters
Clubs
Departmental stores
Drug stores
Health clubs
Lifestyle retailers
Boutiques
Financial Plan
Don’t forget to include a financial plan in your business plan. The plan should cover expected growth, tax, interest rates and current liabilities.
 Your key financial indicators should focus on breaking even and projected profit-loss. Add to your budget, cost of web commerce, promotions and marketing. How to start your Cosmetic Business

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