LIPSTICK LINE BUSINESS PLAN SAMPLE TEMPLATE
Starting a matte lipstick line, though financially rewarding comes with its challenges. These challenges first arise from the point of decision making.
You can either start a lipstick line from scratch or follow the less difficult path of buying a lipstick franchise.
Your decisions will be guided by which of the two options is most beneficial to you.
Here is a sample business plan for starting a lipstick business.
This article provides you with a head start on what you need to start your own lipstick business.
Understanding How the Lipstick Industry Works
The lipstick industry is one that has witnessed a lot of growth and innovations over the years. In your bid to start a lipstick line, you need to have a basic understanding of how the industry works.
By providing information on how to start a lipstick line, we seek to provide critical information for persons willing or interested in starting this business, but having little or no understanding of the requirements or the necessary structure to be put in place.
Also, you need to know the chemical compositions as a strategy towards ensuring that only the best products are manufactured. These must also adhere to health regulations.
You also need to determine the lipstick variants available in the market as well as those attracting the highest sales to help you make a decision on which ones to produce. There are several varieties such as cream lipsticks and matte lipsticks.
Others are long-wearing and transfer-resistant lipsticks, gloss lipsticks, and pearl and frosted lipsticks among several variants.
To start a lipstick line, it will do well to note that there are several competitors in the fashion industry, as such, developing a unique selling point is necessary to gain a fair market share.
What is Trending?
This is a question that never goes out of fashion, as the cosmetic industry witnesses a continuous change in trend. Keeping up with the trend is important to the success of your business. Failure to do this will result in a failed business, or lead to a lack of patronage or a drop in sales.
Therefore, to start a lipstick line, having a perfect knowledge of what is trending, and innovating ways of making your products unique. Having a unique selling point for your lipstick products will give you the much-needed edge you need.
Another important requirement is understanding the chemistry behind the manufacture of lipsticks. Having the required knowledge is very important as it helps you in choosing the right color combinations and using the best material in lipstick manufacture.
Here, the knowledge enables you to avoid substances or particular ingredients that may be harmful to users of your lipsticks. There is increasing research on alternative ingredients for making lipsticks and other make-up products.
This is aimed at producing danger-free cosmetic products.
- Conducting Research
Before you start a lipstick line, you may want to conduct extensive research on your products before launching your business.
Creating a small lab at home or anywhere you choose will achieve this aim, as you make your products undergo stringent quality tests. This is also aimed at ensuring that your lipstick products pass the quality test of the relevant cosmetic product regulatory bodies.
Doing your research work well can make your products stand out. By scrutinizing the component ingredients, you can develop a product that provides health benefits in addition to adding beauty.
- Naming your Lipstick Line
A name should capture the essence of what the product represents. Hence, you may want to brainstorm on what you want your product to achieve. Using this concept to name your product adds uniqueness to your lipstick line. To start a lipstick line, you mustn’t pick names at random from similar products.
Although it should be simple, it should capture the essence of what you seek to achieve. In some instances, you may want to use your name to name your lipstick line.
- Financing Your Business
Starting a lipstick line like other types of businesses requires adequate funding. Funding can be raised in a variety of ways including personal savings. However, one document is necessary. The business plan offers several advantages.
While containing the business blueprints, it can also be used in raising funding for your business. A sound and well-written business plan attract funding from investors. With the plan, investors examine to see how viable your business idea is.
Funding can be raided in a variety of ways. These include crowdfunding where a large number of people contribute relatively small amounts of money to make up the required capital. Selling part of your shares to investors to raise money, applying for grants as well as choosing the debt financing option are effective ways to finance your business.
- Getting a Degree in Chemistry
Although the absence of a degree would not stop you from starting a lipstick line as you can always employ chemists, having a degree or basic knowledge in chemistry is an added advantage to you. This ensures you understand all the processes as well as the chemical combinations necessary to obtain the desired outcome. The world is currently shifting towards adopting green solutions to most human problems.
This is an area not much explored in the lipstick industry. Because people now prefer green alternatives to the use of chemicals in producing lipsticks and other cosmetic products, it allows you to experiment with different natural ingredients.
- Possessing Strong Marketing Skills
Every type of business relies heavily on marketing to achieve increased sales and growth. This is what sets apart thriving businesses from the pack. With good marketing skills, the probabilities for success are significantly stacked up in your favor.
Hence to effectively market your products, you need to have a selling point. Here, you may need to ask yourself what is special about your product compared to similar ones. Also, what would make a new client abandon products they have always used to try or start using your lipstick products? These would enable you to adopt the right approach to marketing your products.
The packaging also plays a huge role in marketing. Thus you need to determine the type of packaging that will convey your message or branding that has all the features and trappings of a high-quality product. You should be able to include certain ingredients that make your products stand out and adequately advertise or market their beneficial uses to the customer.
- Seeking Financial and Legal Advice
When setting up your lipstick business, you must seek financial and legal advice from experts. This will help your business to follow every due process for setting up. Financial and legal advice will guide on trademark and patent rights as well as applying for insurance cover among others.
Apart from these, you are expected to abide by the regulatory requirement that stipulates basic storage requirements, income, leases and contracts between the business and its workforce.
- Your Choice of Location is Important
Your choice of location is very vital to how your business succeeds. When choosing a location for your lipstick line, you should consider manufacturing hubs. It is more than likely that such locations will offer incentives as well as opportunities that include a ready market for your products.
Manufacturing hubs are always close to sources of labor as well as raw materials. This significantly reduces the cost of production which also has a positive impact on your profit margin.
- Conducting a Feasibility Study/Market Survey
This is necessary to how successful your business turns out. By conducting a feasibility study as well as a market survey, you are eliminating any form of guesswork by finding out what is obtainable on the ground. Also, you can measure how the information obtained translates to opportunities or otherwise for your business.
These are effective ways on how to start your lipstick line. To start a lipstick line, the above actions should be paid close attention to and properly implemented.
Also, writing a business plan for your lipstick line will go a long way in charting a course for your business. The services of an expert should be sought to help you write a good business plan.
However, writing a good business plan in itself is not enough, as you also need to properly implement the plan if your business is to witness meaningful growth.