How To Start a Cosmetic Business – Complete Process 2023

Everyone wants to look good, which means cosmetic products and makeup industry will always be in boom. With this in mind, I will guide you how to start a cosmetic business in 2023 and make this year a game changer for your entrepreneurial journey.

Its a perfect niche to step into business as make up and beauty products are loved not only in India but throughout the world. Not only this, the demand for cosmetic products is increasing rapidly and people are spending more into this area(specially women) which makes it even more prominent to start a business in beauty industry.

Now, Lets grab this opportunity and start a new cosmetic business with this step-by-step guide.

How To Start a Cosmetic Business – Steps

Here’s an outlined steps that you need to perform in order to know how to start a cosmetic Business in India or in fact anywhere in the world. However, you need to dedicate yourself completely into the business in order to generate a good monthly income

STEP 1: Start Thinking Like an Beauty Entrepreneur and Study the Market

The first and foremost step that should come into your mind when you think about how to start a cosmetic business should be your mindset towards becoming an entrepreneur. This step is important because in order to start a beauty business you need to start thinking like a beauty entrepreneur and then decide which products will add value to your customers and moreover, who are your target customers.

As the business progresses you will realize that the biggest hurdle in starting a beauty brand will be your decision making skills and hence, you need to sort that down first to have a clear vision of your business. Your approaches towards handling the problems will further decide how far you’re going to go in this path that you’ve chosen for yourself.

STEP 2: Think of a Strong Brand

The second thing on how to start a cosmetic business is creating a strong brand. It is like telling a story to your customers that creates a strong emotional connect with your users and help them understand you. It helps them connect with you so strongly that makes them your permanent purchasers. Isn’t that amazing!

Well, yes and this is the reason it is important to do a powerful branding. There are many brand owners who create wonderful websites and try to explain how their product can be a better choice to their consumers as compared to their competitors and then expect their sales to skyrocket. No! That’s a wrong decision. In some cases it might work but most of the times it is your brand name that sells more than your product. It has to a brand that changes the lives of your customers or atleast impact their lives in some positive way.

STEP 3: Business Model and Manufacturing Strategy

Now that you have some idea on how to start a cosmetic business, you’re ready to choose the right kind of business model for your business and figure out the marketing strategy that you will be willing to go with in order to start a cosmetic business.

Deciding on the business model will require you to do some good amount of research and get a good idea on how this works. Also you might want want to think how often you are ready to put efforts into this business.

Create a good marketing plan to reach out to your customers and create a database along with a plan to frequently keep them updated about your upcoming and ongoing offers.

STEP 4: Arrange Finance and Work Space

We all know that a business can’t run without money. Specially, when its about creating a successful brand we need a strong hold of money right from the beginning.

Make sure that you have enough finances to start your company correctly and have a firm hold on your capital. even if you start this business at home you need to have enough money for branding and marketing so that the brand can grow.

Do a proper financial planning and arrange a workspace for your business in case you’re not starting from home.

Also read: Small Business Ideas From Home In India For Complete Beginners

STEP 5: Retail & Distribution Plan

The time has come that you start planning on your retail strategy. This means that how are you going to sell your products? is is going to be through your website, retail shops, stalls, marketplaces etc.

There are so many places you could sell your products but you will have to take time and figure out which one of them suits you the best. this will ha[ppen over time. hence, be ready for some good amount of patience.

Customer feedback about your product formulation, branding, packaging, quality is extremely important to take your brand to next level.

STEP 6: Marketing Plan and Target Audience

Marketing plan is equally important here. You need to choose proper channels to brand and showcase your products. If your product is online than select proper audience targeting with good images and market on big market places. in case of beauty products Amazon, Purple, Flipkart, Nykaa are some of the great market platforms.

For offline marketing you need to pitch your products to good retailers and ask them to showcase your products in exchange of some compensation.

STEP 7: Create a Business Plan

Get Permits : You will require permits in order to conduct the business. For example apply for the general permits based on your state and specialized permits based on the agency or country.

In case you choose to sell directly to customers than you might require sales tax collection account from your state or municipality.

If you’re a home based business, you need home business license and permits of your manufacturing area. Contact your local business development to know more about this process.

Good packaging: Packaging attracts the consumers. Infact you might have purchased many a times from brands you don’t know but have a good packaging. this creates an image in front of your customers. hence, a good packaging plays an important role in sales.

Testing your Brand: You might want to test your brand and collect good feedback from your customers before the actual launch or even if it has been launched. Testing the quality, productivity and the product response in market is always a good idea.

How to Start a Cosmetic Business at Home?

When you think on how to start a cosmetic business at home, you need to do the proper research of your product in the beginning and before even stepping into the business. Do a market research and survey as to which are the products customers are looking for. Once that’s done, you can check your finances and sources from where you can get the products. If you have a space to do it in house then that can be a great idea but it can also be expensive. Hence, to start with you can just contact respected manufacturers or dealers of the same product and create a line of SKUs you’re planning to keep in your store. Decide your profit margin. Do a proper testing of all your products. Get the Tie ups done with your vendors and then finally launch followed by a continuous marketing of your brand. This can help you starting a cosmetic business from home in the start and eventually, you can scale your business.

I know its a whole lot of a process but don’t be scared. once, you step into it and follow it step by step, everything falls into place.

Main Reasons Cosmetic Businesses may Fail

Even though we have decided to start the cosmetic business, Its always good to know that there can be reasons that this might fail and hence, we can avoid those barriers. Here are few points that you might want to consider before stepping into cosmetic business.

All your focus is into making the product: When you focus only on making the product and forget to deal with the other things such as branding, Logo, market research, managing your finances, making list of your target market and how to attract them, that’s when you fail. So, make sure you focus on all of them.

Not Expanding beyond a Limit: When you achieve a local target you need to expand your business beyond that limit and that’s when you need to tie up with local as well national and international brands. So, don’t restrict yourself to only a certain limitation.

Getting into business without experience: If you start a business without any knowledge, chances of failure are always high. Hence, to avoid that dig deeper into the market and know your product and target customers. Check how big is the market and do a competitors research. See if you really have a opportunity to grow in this market. Doing your homework will always benefit your chances of success.

5 Useful tips to know before starting the cosmetic Business

Start small and grow big: The idea of starting small will always help you to grow bigger in the industry.

Better the research, Better the growth: Knowing your business well will always get the ball in your court. Even if the competition is high, a good research can help you tackle things easily.

Be Positive: When you start a business, the journey becomes tougher and tougher and there is no easy way of saying this but, you have to be positive all the time. Only when you’re positive you can scale well and handle your mind fluctuation.

Feedback makes your perfectionist: Taking regular feedbacks and working to improve them will benefit you enormously. Be open to customer’s criticism and use all that to make your product or service even better.

Brain Storming: Business becomes very hard if done only by oneself and that makes it very important to get different opinions and suggestions. Brain storming with a team of experts can help you eliminate  all those issues that might occur in future and you can make a great cosmetic business.

Writer’s View

In my opinion, you should first start with proper knowledge gain and research which, will help you to know your product, customers, market and the opportunity that lies behind it. Plan your business and finances well before starting anything. All The best!


How much does it cost to start cosmetic business?

Ans: If you want to start a profitable business with good product quality then you can start with 1-2 lakh in hand.

Is cosmetic business profitable?

Ans: Yes, its a profitable business as it is an evergreen industry and you can make a great business if you are careful about your target audience and do a proper research of your industry.

Can I start cosmetic business with 50k?

Ans: Yes, you can start with as low as 50 grands. You can choose to deduct the cost by starting it from home.

Which business is best suited for cosmetics?

Ans: Starting a beauty parlor, starting a website of cosmetic products, nail artists, skincare products are a few which people might be looking for in cosmetics.

Can I run a beauty business from home?

Ans: Yes, you can and I have listed how to start a cosmetic business from home in the above paragraph. You can go through and get an idea.

Do you need a License to be a beautician?

Ans: You need to register your business and apply for premises license with your local authority.

What qualifications do beauticians need?

Ans: Although, there are tons of courses online and offline, you can choose to do Diploma in Advanced Beauty Therapy to become a beautician from any of the known institutions.

How long is a beauty course?

Ans: Ideally a short term courses can last upto 20-25 weeks but depends on you also, how fast you are able to grab the knowledge and apply it.

How to start a beauty business with no money?

Ans: Once, you acquire the knowledge and do your research, you can create a business plan and reach out to investors or charity who can help you build your business.

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