Operating a skincare business will depend upon the following four conventions:
- A practical plan, with a solid foundation.
- Dedication and willingness to sacrifice, to reach the goal.
- Technical skills
- Basic knowledge of management, finance, record keeping and market analysis.
As a new owner, we need to master these skills and techniques, if the business is to be successful. The following points are also to be taken into consideration.
- Are there any causes, (such as restrictions, monopolies, shortages), that make any of the required factors of operation unavailable, (such as, unreasonable cost, or scarce skills)?
- Are capital requirements for entry, or continuing operations, excessive?
- Is adequate financing hard to obtain?
- Are there factors that prevent effective marketing?
A Self Analysis
It confines to the personal analysis of an individual, it covers the physical, emotional and financial strains we may encounter in starting a new business.
Finding a Niche
Small businesses range in size from a manufacturer, with many employees and millions of dollars in equipment, to the lone window washer, with a bucket and a sponge. Obviously the knowledge and skills, required for these two extremes, are far apart, butfor success they have one thing in common. Each has found a business niche, and is filling it.
Many entrepreneurs plunge into a business venture, so blinded by the dream that they fail to thoroughly evaluate its potential.
Is your business idea feasible?
Before we invest time,effort,and money the following exercise will let us separate sound ideas, from those bearing a high potential for failure.
- Identify and briefly describe the skincare business
- Identify the product or service to sell.
- Make sure that the product or service satisfy an unfilled need.
- Make sure that the product or service serve an existing market, in which demand exceeds supply.
- Make sure that the product or service is competitive based on its quality, selection, price and location.
We all must be aware of the fact that the nykaa, purplle and many other apps has come up with varieties of skincare products. They expanded their business from cosmetic to skincare. Start-ups in beauty and cosmetics space saw investments more than double to $108 million in 2019 till date, as compared to $51 million in 2018. The number of deals also rose to 12 from seven.
Nykaa saw a deal of $14 million in April, which increased its valuation to over $700 million and MyGlamm brought in $19 million from Bessemer Ventures. Smaller firms such as Roots Ventures and Sauce.VC are also placing some bets in the sector, data from Venture Intelligence shows.
Well there’s no need to overcomplicate starting a skin care brand as we are not reinventing the wheel. Anyways, below are the steps you need to follow while going forward to be an entrepreneur in the skincare industry:
- Pick a product
- Brand the product
- Pick a private-label manufacturer
- Pick a distribution channel
- Product Listing
Step 1 Picking the Product
If we are starting from scratch without one iota of what skincare product to sell, this can feel overwhelming. A great place to start is by looking on Amazon to see what items sell well. Thankfully there are free software’s to help with this process. Whatever method we choose to source our list of options we will need to pick a product that has a ranking of less than 1,000 and has less than 1,000 reviews to ensure that the market for the item isn’t oversaturated.
Step Two: Branding
Every company needs a brand, and a company offering will often succeed or die on the branding, so it’s important we get the following right.
- Make sure you have the four A’s (yes, I just put an A in front of each, but it sounds better):
- A name-When choosing your name, make sure it’s still available. You can use good or a service like. Ideally, your name will have a domain, social media, and trademark ability still available.
- A logo-Unless we have a designer, we should not do this at home. We can hire a designer to do this for us. Depending on the budget I would recommend using sites like the Tim Ferris endorsed which will cost around Rs.74800 or a cheaper service like that can cost as little as around Rs. 374.
- A label-The Company doing the manufacturing can assist with figuring this out. Staples should not be used
- A slogan-It’s something that should help sell the product and it shouldn’t be longer than seven words.
Step Three: Making the product
Unless we have a chemistry background and want to formulate these in our garage, it’s not recommended to get into the manufacturing business. Once we reach a certain scale manufacturing becomes an incredibly expensive investment and our money can go a lot further in other areas of the business, like marketing and sales. This means we will have to find a contract manufacturer / private labelling company.
Step Four: Distribution
Now that you have a branded product, it’s time to sell it. We need to decide the platform to facilitate sales. The drawback about Shopify is we will have to figure out the shipping component; but although we can utilize third-party shippers like to handle this for us. However, if we are just starting out, starting with Amazon and their FBA service, which stands for Fulfilment by Amazon is a good option.
Step Five: Product Listing
The last step is the product listing, so our customers know exactly what they are buying and why.
- Title (Brand – Product Line – Material Or Key Feature – Product Type – Colour – Size – Packaging/Quantity)
- Bullet points that indicate the features and benefits of the product.
- A call to action!
- A meaning description that answers questions your customers might have about the product
- FAQ Section
- Multiple Professional photos
- Back End Search Terms
- Get Reviews
License to sell 100% homemade body oil in India, the norms and where to apply
–Taking 100 % homemade to be natural, we indeed need a license as per the provision of Drug and Cosmetic Act 1940.As per the definition of cosmetic under Sec. 3 (AAA) of Drugs and Cosmetics Act 1940 and Rules 1945, which includes any article which is intended to be rubbed, poured, sprinkle or sprayed on or has been introduced into, or otherwise applied to human body or any part either for the purpose of cleansing, beautifying, promoting attractiveness or for altering the appearance. We need to file a ‘form 31’ in order to get it.
The aforesaid aspects need to be taken into due consideration if we are planning to start a skincare business.