How to Start Your Own Cosmetic Company: A Quick Guide

Did you know that there are over 100,000 cosmetic brands in the United States as of 2022?

It’s an industry that is ever-growing. However, the beauty industry is intensely competitive.

As new cosmetic brands crop up every year, it’s become more difficult to stand out. If you want to start a cosmetic company, we’ll show you how to do that.

From designing a cosmetic line to figuring out product packaging, here’s everything you’ll need.

Set Up a Legal Entity

Before you say, “Huh?” let us explain.

A legal entity is a fancy term for an organization that has special privileges, responsibilities, and protections. You can sign contracts to be either a supplier or a vendor, for example. You can also apply for loans and pay debts.

There are a few different kinds of legal entities. Here are the most common ones:

• C Corporation
• Partnership
• Limited Liability Company (LLC)

Do a deep dive into these structures so you know which is best for your cosmetic brand.

Know the Rules

Every cosmetic company is required to follow FDA regulations. Brush up on what these regulations are so you can run your cosmetic brand smoothly.

They pertain mostly to making sure you’re labeling your product packaging correctly. As for ingredients, the FDA regulates them rather than approves them.

This means that you do not need the FDA’s approval before launching anything into the market. Color additives and certain prohibited ingredients are exceptions to this rule.

Lay the Groundwork

Now that we’ve gotten the boring stuff out of the way, let’s talk about the exciting stuff: making your cosmetic brand stand out.

When you start a company, you enter a busy place, particularly for beauty. The best thing you can do is outline your mission and values right away. Make it unique, make it timeless, and make it specific to what you care about.

What would make people want to shop with you rather than the competition? If you pick a niche, then you’ll face less competition. Here, you’ll have more room for innovation.

Research the market before you start a business so you know what you’re up against. What are customers asking for that they can’t find on the market? How can you meet their needs?

Product Packaging

Product packaging will depend on what kind of cosmetic line you’re doing. Whether it’s skincare, makeup, or hair, you need to research what kind of product packaging is already on the market. Then, try to invert it.

Let’s say, for example, that you want to get into essential oils. Acme Vial and Glass Company uses a variety of materials to produce gorgeous product packaging for essential oils.

Starting a Cosmetic Company in 2022

Starting a business in any industry is no easy feat. If it’s a cosmetic company, the competition is already stiff. In spite of all the work you’ll need to do, hopefully, you’ll find that this cosmetic brand guide is a good start.

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