Thinking of starting a new skincare business, but not sure what to do first? Here are 3 tips to get you started on the right foot.
Tip 1: Connect with your niche
The average lead time to get commercial skincare products (cosmetics) onto the market is 12-18 months.
So before you create your first batch, be very clear on who you’re targeting.
· Demographic information
· What does your niche want that they’re not currently getting?
· How do skincare products fit into their lifestyle and beauty ritual?
· How do they go about choosing between products? Where do they prefer to shop and source information?
· What’s their skincare IQ?
· What types of ingredients, textures, aromas, colours and packaging do they like?
· What social, ethical and environmental considerations are important to them?
· How do they prefer to communicate?
Start connecting with your niche before you launch your range. Take them on a journey behind the scenes. The more you share and show how much you value their feedback and opinions, the more likely they’ll feel connected with your brand.
Tip 2: Set aside a realistic budget
Your cash flow will be in the red until you have products to sell. Consider how you’ll be funding your business. For example, will you be self-funded, applying for a business loan, getting investors on board or something else?
Having a clear picture of how you’ll be spending your money and what you need to prioritise can help you to budget intelligently… and not get swept away by bright and shiny objects.
Tip 3: Know the regulations
Countries/regions around the world have their own regulations for ensuring cosmetics are safe, stable, effective and consistent.
You need to cross your t’s and dot your I’s when it comes to complying with the regulations. Failing to do so may result in legal or financial stress, as well as brand damage.
· Do you need a licence to manufacture cosmetics?
· Do you need Good Manufacturing Practice (GMP) certification?
· Are your ingredients permitted? Are there any restrictions or conditions on their use?
· What are the testing requirements for efficacy, stability and safety?
· What measuring systems are used and how are shortfalls dealt with?
· Do you need a product file and what documents are required?
· Do you need to submit your products to any government agency at any stage?
· What information is required on your product labels?
I hope these tips help you to create a successful and rewarding skincare business.
This article was contributed by Geraldine Phua,the founder of Geraldine Pierre Skin Care and offers cosmetic regulatory services to Australian beauty artisans who are creating their first range of natural products. She relieves time-poor artisans of the burden of trying to find and interpret the regulations on their own, and empowers them with the regulatory knowledge to create a solid and compliant foundation for their business.