how to start a skincare business

How to Start a Skincare Business in 12 Steps

Starting a business gives you flexibility and increases your earning potential. Business owners can choose from several verticals to establish themselves and attract customers, including skincare. If you have a knack for skincare and want to start a business in the industry, this guide will help you get started.

Why Should You Start a Skincare Business?

Starting a skincare business can increase your earnings and give you flexibility over your schedule. You can also offer skincare products knowing they will help people feel comfortable in their skin. Business owners can become important parts of their local communities and reach big audiences through their skincare businesses.

12 Steps to Starting a Skincare Business

Starting a skincare business takes a lot of work. Knowing the basics before you embark on your journey can reduce the number of mistakes and increase your likelihood of success. Let’s take a look at the steps that you should take when starting a skincare business:

1. Choose Your Skincare Niche

Skincare has many niches, and being a skincare business for everyone isn’t as good as it appears. When you try to serve everyone, potential customers will get confused and walk out. It is better to establish yourself within a skincare niche and get a steady stream of returning customers. Here are some of the available skincare niches:

  • Dry skin
  • Aging skin
  • Moistures
  • Melasma
  • Sensitive skin
  • Luxury
  • Essential
  • Natural Beauty
  • Sunburn
  • Acne

2. Write a Business Plan

After you identify your niche, the next step is to write a business plan. A business plan includes your opportunities, costs, branding, and other details. Business plans also give you the opportunity to analyze competitors, see what makes them special, and identify ways to stand out with your skincare business.

3. Develop Your Skincare Brand

A skincare brand has many components. The name, logo, tagline, and company values all impact how potential customers view your brand. Existing customers will also remember your branding, and how they remember your company determines how often they will return.

4. Find a Manufacturer

Manufacturers help you access skincare products at lower prices. Business owners place bulk orders to reduce costs and sell their products at higher prices to secure profits. Finding manufacturers and developing good relationships with them can give you a reliable stream of inventory for your business. 

5. Decide on Your Business Entity 

Business owners can choose from several types of business entities, and each one has advantages and disadvantages. Every business entity starts as a sole proprietorship, but it isn’t for everyone. These are the different types of business entities to choose from:

  • Sole proprietorship: Solo business owners get more tax deductions, but the business owner is personally liable for all business-related liabilities. 
  • Partnership: Two or more individuals start a business and work together to cover expenses, serve customers, and perform various business tasks. However, profits also get split, and any arguments can slow down the business.
  • Corporation: This type of business entity has more tax advantages and separates your business assets from your personal assets. It protects you from personal liability but also results in double taxation. Corporations can issue stock shares easily.
  • S Corporations: These types of corporations are similar to traditional corporations. Although it is more difficult to issue shares, you will not get double taxed on your earnings.
  • Limited Liability Company (LLC): Many small business owners view this as the best mix of other business entities. Business and personal assets get separated, and you get extra tax benefits. However, you cannot issue shares. LLCs have less complicated paperwork than corporations but are more complicated than sole proprietorships. 

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6. Obtain Necessary Permits and Licenses

Your skincare business needs several permits and licenses to operate. Here is a list of the permits and licenses that you need to obtain:

  • Business License
  • Seller’s Permit

7. Set Up Your Financial Accounts

Business checking and savings accounts help you separate your business finances from your personal finances. These accounts come with benefits and may help with getting a business credit card. Business credit cards let you get rewards for your purchases and make it easier to qualify for business loans and lines of credit. Setting up financial accounts for your business can also make tax prep easier.

8. Secure Funding if Needed

If you need financing for your business, you can secure the money you need through a combination of family, friends, small business loans, and lines of credit. You should assess how much capital you need before you raise funds for your company. Knowing how much you need can help you decide on the funding source. 



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Raise business capital of $100K to $100M.

Connect directly with accredited investors.

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9. Get Business Insurance

Business insurance policies financially protect you from various uncertainties. While general liability insurance offers a broad range of protections, you can also get specific policies, such as cyber liability insurance. Skincare business owners can get insurance policies that are designated for skincare businesses, such as a beauty & cosmetics product liability insurance policy.

10. Formulate and Manufacture Your Skincare Products

Skincare businesses rely on relationships with manufacturers to receive products to their specifications in a timely manner. Comparing manufacturers and letting them know what you want can help you decide which one is right for you. Once you decide on some top manufacturers, make it a point to develop strong relationships with them. These relationships can help you get more inventory, better deals, and quicker shipments.

11. Build Your Brick-and-Mortar or Online Store

Some skincare businesses operate online, while others serve customers in brick-and-mortar stores. Setting up your company’s home base will give your customers a place to go. You can establish a digital storefront through several platforms with your website. If you want to sell skincare products in your area, you should look at available commercial properties and their locations. Areas with higher foot traffic may cost more but can also drum up sales for your business. 

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12. Market and Advertise Your Skincare Line

Once you start your skincare business, you must continuously promote it. Marketing and advertising can help you reach more customers. As your business grows, you can capitalize on scalability, which allows you to make more money without necessarily working more hours.

You can use these marketing and advertising strategies to get the word out and attract customers:

  • Create a website and optimize it for SEO.
  • Create online content.
  • Establish social media accounts.
  • Run paid online and social media ads.
  • Partner with local businesses and influencers.
  • Look for media opportunities, especially local news, if you have a brick-and-mortar store.
  • Examine your competition’s marketing tactics for additional ideas.

Grow Your Skincare Business

A skincare business can generate steady revenue as you attract new customers and turn them into returning customers. These results are possible, but it all starts with an idea. Approaching your skincare idea with the right plan and implementing it well can result in a successful skincare business. Starting a business is a long-term journey. You will have to learn from mistakes along the way, but growing a business can be very rewarding.


Do you need a professional background in skincare to start a business?

No, you do not need a professional background in skincare to start a business.

How much capital do you need to start a skincare business?

The amount of capital you need to start a skincare business depends on the products you want to sell and if you want a local or online store. Costs can range from $2,000 to $20,000.

Do you need to create your own skincare products?

No, you do not need to create your own skincare products. You can get skincare products from a private labeller and sell them to your customers.

Should you focus on a specific target market for your skincare business?

It is a good idea to focus on a specific target market for your skincare business. Trying to reach out to everyone will hurt your business and confuse potential customers.

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