It is estimated that the skincare industry generates almost $17.5 billion every year in the United States alone. The research was conducted in 2018 by Statista, and the number is expected to grow every year. Let us face it, the skincare industry is one of the best industries to invest in because you are always assured of return customers. It doesn’t matter what gender you are, how old you are, or what ethnicity you are, we all love to look good. There is certainly no value we can place on beauty and our self-confidence. That may be the reason why you want to start your private label skincare.
Starting a private label can be a challenging endeavor especially if you do not know where to start. The challenge may even be tougher if you are doing it on your own. But these reasons can serve as motivation because as the saying goes; when the going gets tough, the tough keep going. You are on the right path to success if you are willing to do your research and put in the work required. Here is a simple guide to follow if you want to start your label for skincare products.
- Produce quality products
The quality of your skin products has to be beyond reproach if you want to survive in the skincare industry. Most of your profits will come from return customers who are pleased with your products. They are also likely to recommend your products to other people so make sure your customers are always satisfied.
You always have to be ahead when it comes to researching safe and innovative ways to make skincare products. There are natural products you can make from organic ingredients. They can range from plants like Aloe Vera to fruits like avocados.
There are also synthetic products that are made from chemicals. It may be a cheaper option because you are not required to source organic ingredients but they are least preferred because they usually have negative side effects that may affect your general health. If you want your products to fly off the shelves then make sure they contain as few synthetic ingredients as possible.
Glamorize your packaging and branding
The way you package your product will greatly determine if you will survive in this competitive industry. Customers will always go for products that are neatly packaged with an elegant label. Your brand will mostly be judged on how they look and the quality of your products. Whereas the adage of judging a book by its cover may apply when judging human beings, the opposite is true when it comes to judging skincare products.
The way you package your product is important if you want to stand out from the crowd. Competition is high in the skincare industry because of numerous products saturating the market, and the only way to have an advantage is to make your brand beautiful and appealing to consumers. It may be expensive to come up with a beautiful and sexy design but the results will make you smile on your way to the bank.
Incorporate your business
Incorporating your business is the next step after you have a product and a brand. You can either register it as a limited liability company or any other form of business partnership. The advantage of incorporating any business is the separation of your personal finance and your company’s finances. For example, if you register your company as a limited liability company, your liability will be limited to the shares you hold in the company in the event the company goes bankrupt. This means you will safeguard your assets in the event the company becomes bankrupt.
The other advantage incorporation has is the ability to widen your borrowing capacity. A company can issue shares of stock and that is the reason why financial institutions will offer more alternative sources of raising capital.
Incorporating your skincare business into a company will give it a perpetual existence. Companies are considered to be the safest and most enduring business framework because they can exist even after their founders die. This can also give you more credibility in your daily dealing with suppliers and retailers.
Find a private label supplier
Once you have the above three factors crossed off your checklist, the next step is finding a private label supplier. Finding a supplier is a good idea because you will be able to concentrate on perfecting your product. There is a lot of effort that goes into establishing a product supply chain and this can divert resources that can otherwise be utilized in making the product better.
Having a supplier is especially important if your distribution plan is to sell to brick-and-mortar stores. Try to find a supplier who has already established a route and has had previous dealings with similar skin care products. Doing so will make your work easier because your products can transition smoothly from the production line to the shelves of local retail stores.
You can also opt to sell your beauty products to the consumer. This will require you to set up an online website where consumers can select and purchase your products. Do not worry if you do not have the technical skills to launch an online campaign to promote your products. There are several online platforms where you can outsource those technical tasks. Just make sure you have a spacious warehouse where you can store your products before they are shipped to customers.
Starting private label skincare is something that you can do if you have the time and dedication. You can outsource some of the technical stuff like incorporating your business. All you need is to find an affordable lawyer and you are one step closer to realizing your dreams. Half of your efforts need to go to making quality products, and the other half need to be dedicated to finding a reliable private label supplier. These are the only steps you need to take to have a profitable company that you can leave to your children and grandchildren even after you are gone.