1. Create your business proposal. Be sure to include your mission statement, objective and executive summary. Include a report that explains your market research and your target audience. Make an itemized list for your start up expenses like inventory and supplies. Show in your sales how much you predict to make your cosmetic company’s profit.
2. Decide if you’ll be ordering your inventory through a cosmetic distributor or you’ll be selling organic products. Ordering your inventory can be expensive depending on the cosmetics you’re interested in selling like mascara and foundation. Organic products can be made from home and various products can be inexpensive like bath salts and body scrubs.
3. Go to your local city or county’s clerk’s office to apply for your cosmetic company’s business license and business name. You’ll need your driver’s license, a contact number and your social security number. Visit the IRS website and fill out the IRS-Form SS-4 to receive your Employer Identification Number. You’ll need your cosmetic company’s business name and your social security number to apply for your EIN. After submitting the application, you’ll immediately receive your custom EIN.
4. Begin collecting your cosmetic company inventory and set your prices. Visit a financial institution that offers small business loans with low interest rates like a credit union, if extra startup funds are needed. Ask family and friends for financial help to start your cosmetic company. Your prices should reflect the actual price it will cost to purchase the product, packaging, distribution as well as your profit. It also helps to keep in mind what your target audience and their monthly income. For example, if 18-year old female’s monthly income is $1,000, a product that is marked at $25 may be steep and unaffordable.
5. Promote and advertise your cosmetic company. Buy brochures for your prospects. Business cards are great for advertising by word of mouth. Include your contact information, the name of your cosmetic company, and email address, if any. Place ads in publications like local skin care newsletters and social networking websites. Attend trade shows and events to market your cosmetic company and test your product on consumers and receive feedback to build your cosmetic company.