Have you been thinking about starting a lip gloss business? Or perhaps making your own line of lipgloss to sell? If so, then this post is for you. We will share best practices and steps for starting out on the right foot with a successful lip gloss company. It can be overwhelming trying to figure out how to start a new venture from scratch – but don’t worry – we have a comprehensive guide to help you make informed decisions and jumpstart your dream company.
There are two types of business models when starting a lipgloss business. You could be a distributor, which means you are buying the lip gloss instead of making it yourself. Or you could be a manufacturer, which means that you are making the lip gloss from scratch and selling it on your own to customers or distributors.
If you'd like to be a distributor, the process is relatively easy. There are a number of vendors that will provide you with lipgloss as well as resources and sales materials to get you started.
One of the downsides of being a distributor however is the low margins and amount of competition. Not only will you be competing with other distributors, but you will also be competing against lipgloss brands that have been established for years.
After all, the more distributors a vendor has, the more they sell.
Here is a list of Lipgloss Vendors:
If you'd like to be a manufacturer, the process is slightly more complicated than being a distributor. You'll need to learn how to make lipgloss, purchase necessary materials, brand your product, and sell your product.
The good news is that you'll have complete control of your company and what it sells, with the potential for big rewards. The downside, however, is that until you're big enough to hire others to do the work, you'll be running your entire business yourself.
The core ingredients of lip gloss are relatively simple. First, you start with an oil, whether natural or synthetic, to give the lip gloss a slippery and wet texture. Depending on the oil, it may also help moisturize the lips as well.
If you'd like to make your lipgloss thicker, wax or clay can be added to the ingredients.
For color, you can use natural or synthetic pigments. For different shades of lip gloss, multiple colors are mixed together to get the shade desired. Finally, for shine and sparkle - a glittery substance is added in either fine particles (micro-glitter) or larger chunks (macro glitters).
Large brands usually have a long list of ingredients for their lipgloss, but this is normally because what they make is dissecting the specific components at a chemical level.
Lipgloss base is normally clear and is used as the foundation of your lip gloss. You can add color, glitter, or anything else you want to the base to make it unique.
Wand tubes and squeeze tubes are the container you put the lip gloss in. A wand tube, as described in the name, has a small wand-like applicator that you rub on your lips. A squeeze tube doesn't have an applicator, rather a small hole that the lipgloss is squeezed out of.
From lavender oils to coconut oils, there are many different types of oils that you can add to your lipgloss base.
Different types of wax can be added to your base depending on how thick you want the lip gloss to be. Beeswax, candelilla (vegetable), and carnauba are all popular choices.
If you'd like a thicker consistency for your lipgloss, adding clay to the wax and oils is a great way to do that. Different types of clay can be used depending on what you're going for.
Flavoring oils can be used to add a specific flavor to your lipgloss. It's not necessary, but it can be added for extra taste and scent! Flavoring oils can also be mixed and matched to create unique flavors like strawberry watermelon and pina colada.
Dyes will allow you to manipulate the color of the lipgloss you make. Different pigments can be added to your lipgloss base depending on how dark or light you want the shade.
Pipettes and syringes will allow you to precisely mix ingredients and cleanly put your finished product into a wand or squeeze tube.
Now that you know how to make lipgloss, you'll need to determine who you'd like to sell it to. Whether you'd like to make subtle lipgloss that tastes great for a professional audience, or lipgloss that pops for a younger generation, you'll want to find your niche.
Determining who your target market is will help you perfect your lipgloss, your marketing, and keep costs down. After all, it's easier to create the perfect lipgloss for a specific audience than it is to try and be everything for everyone.
When dealing with beauty products that people are putting on their lips and possibly ingesting, it's important to protect yourself. If you were to be sued as a result of one of your customers having an allergic reaction to your product - an LLC or Limited Liability Corporation will protect you.
Just like the name, a limited liability company limits your liability and places it on your company. Being protected by an LLC means that if someone sues you - they will be suing your company instead of you. Your personal belongings and money will be protected in the event you are sued.
Similar to an LLC, Sole proprietorships are good for people who are just starting out and don't have any employees. Sole proprietorships can be very flexible, but the downside is that you are personally liable for any damages or expenses.
A partnership is a great option for two or more friends who want to start a business together. The downside is that you'll have unlimited personal liability if someone sues your business - meaning someone could sue both of you.
Corporations are a great option for people who want to protect their personal belongings and money in the event they are sued. Corporations can be very time consuming and expensive to establish, and are usually reserved for large organizations.
If you're unsure what type of business to start, a small business consultant can help you.
As your business grows, you'll want insurance to protect your business. Even if you have an LLC, your business can be sued. Insurance can help lessen the burden on your company if something goes wrong.
Incorporating and having General Liability will protect you from any lawsuits filed against your company for up to $500,000 per occurrence.
If you have a product that could possibly cause injury if used incorrectly, it's important to get Product Liability insurance. This will protect your business from lawsuits filed against your company for up to $100 million per occurrence. The best part is - this type of insurance can be attached to General Liability and oftentimes has a very low deductible.
Starting a lipgloss company can be done very inexpensively - if you know what to look for.
Some companies will encourage you to buy in bulk - but when you're just starting out this can be an unnecessary expense. You don't want to get caught buying a 2 year supply of pipettes when you haven't made a profit yet.
You can start a lipgloss business for less than $500 if you shop smart.
From your base to your colors, you'll want to find a reliable vendor to supply all of your materials. After all, you can't necessarily purchase a lipgloss base from Walmart.
A few popular vendors are:
Now that you have your company, it's time to build your brand.
This is where the fun really begins! You get to design all of the marketing material for your business. This includes everything from how you'd like your packaging to look to your logo and website.
At the foundation of every brand is a website and social media presence.
You'll also want to design your logo, colors, and fonts that you'll use on your website and packaging.
Keep your ideal customer in mind and build your brand around them. A working professional may be turned off by sparkles and unicorns, just like a pre-teen may not be attracted to something subtle and discreet.
A great place to start researching how much you should sell your lip gloss for is at your local store. Lipgloss can cost anything from $5 to $50 depending on the brand.
You'll also want to do some math on how much each lipgloss costs you to make. If you sell lipgloss for $5 and it costs you $6 in materials, you won't be in business for very long.
Another tip would be to determine what your goals are. How much lipgloss do you need to sell to reach your goals?
This is where things get fun!
Marketing your lipgloss business can be done in a variety of ways. You may choose to run an Instagram account, or host giveaways on Facebook groups that are relevant to your company's demographic. It doesn't matter which method you choose, as long as it's something that your target audience would be interested in.
A few places to find potential customers are social media influencers (some may work for free), Facebook Groups & Pages like Mommies with Style or Indie Businesses, and niche forums - just make sure they're not against self-promotion!
You'll also want to have a website or social media page that you can send potential customers to.
If you don't know how to build a website, there are plenty of companies out there that can help.
Don't forget - Pinterest is HUGE for selling beauty products! Make sure your boards are visually appealing and relevant to the type of product you're selling. If you sell makeup like lipglosses, make sure your pinning page has pictures on it. Don't just link back to Amazon or Walmart (because then people will get mad at you!) instead try sharing tutorials or swatches that customers would benefit from seeing. A few examples might be: How To Apply Lip Gloss Like A Boss , Best Ways To Wear Peach Colored Lips , etc.
When dealing with beauty products, client testimonials, photos, and reviews are key. Buying something online is tough because you won't know how the product will look on you.
Customer images and reviews will not only help build trust, but give someone on the fence about buying an extra push they need.
Starting a lipgloss business is an exciting and rewarding venture. It takes time, patience, and hard work to get your company up and running but it can be done with less than $500 if you shop smart. From finding the right vendors for all of your materials to building a brand that resonates with customers in today's modern world—we've got you covered!
If you want help marketing your new venture or have questions on how to start a business, contact Small Business Mentor today!