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Starting a Lip Gloss Line Business – A Complete Guide

Do you want to start a lip gloss line? If YES, here is a complete guide to starting a lip gloss line business with NO money and no experience.

Okay, so we have provided you an in-depth sample lip gloss line business plan template. We also took it further by analyzing and drafting a sample lip gloss line marketing plan backed up by actionable guerrilla marketing ideas for lip gloss lines. In this article, we will be considering all the requirements for starting a lip gloss line. So put on your entrepreneurial hat and let’s proceed.

Why Start a Lip Gloss Line Business?

It is a known fact that lip gloss, lipsticks and similar products are used in all parts of the world and of course those that are in the business of producing these products are known to generate sales year in year out if the business is well – managed. As a matter of fact, economic downturn hardly affects the usage of lipsticks, lip gloss and similar products simply because it is a commodity that plays a major role in the beauty world.

It is no wonder that the production of lipsticks and lip gloss has continued to soar. If you are however thinking of starting your own lip – gloss line production business, then you must be ready to learn the ropes and scale through all the necessary hurdles en route launching the business.

No matter the type of business you choose to start, it is important to state that before launching the business, you should ensure that you carry out your market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your lip gloss line production business, it will not take you long before you secure a reasonable share of the available market in the industry and start smiling to the bank.

So, if indeed you want to start your own lip gloss production business, all you need to do is read this article and you will be well informed and equipped.

Starting a Lip Gloss Line Business – A Complete Guide

  • Industry Overview

A lip gloss line just like lipstick production line business involves preparing, blending, compounding and packaging both cosmetic and therapeutic lip products. The products they produce are lipstick, lip gloss, lip stains, lip liner and lip balm.

Lipstick is applied to the lips as part of makeup basically to boost lip color, texture and often hydration. Sheer lipsticks usually contain a significant amount of oil, with less wax and pigment than matte lipsticks, making them more translucent. Lipsticks with oil components, though, must be reapplied many times so as to make the lips look shiny and glossy.

The lip gloss production line of business is a business whose products are used all across the world by both male and female. It is a fact that there is no cultural barrier to the use of lip gloss. As a matter of fact, doctors do recommend that some patients with dry lips should make use of lip gloss.

In the last half decade, lip gloss and lipstick experienced elevated demand, most especially from premium level goods, in line with increased consumer spending and the overall growth of the economy. Purchaser preferences and new product introductions have also contributed to boost revenue and profit.

Operators flooded the industry over the period, as purchaser demand for brand name and value-added products increased. An increasingly health-conscious customer base is becoming progressively more aware and sensitive to product ingredients.

Consumers are increasingly concerned with using products that are chemical-based or have traces of metals or animal by-products, pushing companies to invest in research and development to offer new natural and safe products.

The Cosmetics Industry cum lip gloss production line of business is indeed a large industry and pretty much active in all the countries of the world especially in countries such as the United Kingdom, the United States of America, France, Italy, Australia and Canada.

Statistics has it that in the United States of America alone, there are about 68 registered and licensed lip gloss and lipsticks manufacturing companies scattered all across the United States responsible for directly employing about 3,783 people and the industry rakes in a whooping sum of $4 billion annually.

The industry is projected to grow at a 4.7 percent annual growth within 2011 and 2016. In the United States of America, Estee Lauder is the leading brand in the lip gloss and lipstick production line of business. Their products can be found in every nooks and crannies of the United States and also in most countries of the world.

It is a fact that Lip Gloss was introduced to the public in 1930 by Max Factor Company and Clear lip balm is one of the most popular lip gloss products in the modern market. A survey conducted in 1998 amongst American women showed that 32 percent of them owned more than 20 lip gloss and lipsticks.

As a matter of fact, lip gloss and lipsticks became widely popular among the female population after the rise of black and white movies in Hollywood. So also, 80 percent of American women regularly wear lipstick and over 25 percent won’t leave house without wearing it.

It is important to clearly state that lip gloss and lipsticks have expiration date and can become rancid. Storing them in fridges can prolong their life.

Despite the fact that the lip gloss production line business appears to be somewhat saturated in the United States of America, there is a positive outlook for the industry especially when it comes to leveraging on the changing trends in technology and beauty cum fashion.

Entrepreneurs are encouraged to go into lip gloss and lipstick line business because of the vast opportunities that are available in the industry and also because the industry is indeed a thriving and profitable one especially when it is well positioned and promoted.

Over and above, the lip gloss line production business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale by selling your products within your city or state or you can choose to start on a large scale with your products spread across your country and even in other countries of the world.

Starting a Lip Gloss Line Business – Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition for those who make use of lipsticks and lip gloss is all encompassing. It is not restricted to just the female gender, as males also make use of lip gloss to help them protect their lips from hash weather conditions that can cause lip cracks and dryness.

The truth is that when it comes to selling lip gloss, lip sticks and other similar products, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just a group of people, but to all those that reside around the locations where you have your lip gloss, and lipsticks for sale and who have purchasing power.

So, if you are thinking of opening your own lip gloss production line business, then you should make your target demographics all encompassing. It should include corporate executives, students, migrants, entrepreneurs, business people, celebrities, military men and women, sports men and women, tourists and every adult in the neighborhood where your lip gloss and lipsticks will be retailed.

List of Niche ideas Within the Lip Gloss Line Business That You Can Specialize in

There is no niche in the lip gloss line production business. Those who are into the production of lipsticks are also into the production of lip gloss and other lip enhancing cosmetics in different colors and different packages to meet the trend in the industry. Branding and packaging is a major factor that can help you increase your sales and gain market prominence in the lip gloss line of business.

The Level of Competition in the Lip Gloss Industry

The competition that exists in the lip gloss production line of business goes beyond competition in your city or country; it is both national and international. This is so because major lip gloss brands in France, Italy, United Kingdom and in other parts of the world can be found in cosmetics shops all across the United States of America. So, it will be right to say the competition in the cosmetics cum lip gloss line production industry is stiff.

The truth is that, no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure you have what it takes to churn out quality products and you know how to reach out to your target market.

But over and above, there are several cosmetics cum lip gloss production companies whose products are scattered all around cosmetics shops in the United States of America. So, if you choose to start your own lip gloss production line business in the United States, you will definitely meet stiff competitions amongst cosmetics, lip gloss and lipsticks brands within the United States of America and other countries of the world. Besides, there are larger cosmetics, lip gloss and lipstick brands that determine the trends in the industry and you should be ready to compete with them for customers.

List of well – known Brands in the Lip Gloss Industry

When it comes to lip gloss production line company, you can be rest assured that there are world class lip gloss and lipstick brands whose products have successfully become household names. Here are some of the well – known lip gloss and lipstick companies in the United States of America and other parts of the world;

  • Chanel
  • Makeup Forever
  • Bobbi Brown
  • Dior
  • Estee Lauder
  • Dolce & Gabbana
  • Lancôme
  • Sonia Kashuk
  • Napoleon Perdis
  • Yves Saint Laurent
  • NARS
  • NYX CosmeticsGuerlain
  • Charlotte Tilbury Matte Revolution Lipstick
  • Rimmel London Provocalips 16HR Kissproof Lip Colour
  • Kat Von D Everlasting Liquid Lipstick
  • Stila Stay All Day Liquid Lipstick
  • A.C. Lipstick
  • Clinique High Impact Lip Colour
  • Origins Flower Fusion Hydrating Lip Color

Economic Analysis

If you are looking to successfully launch a business and maximize profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.

The lip gloss line business is not a green business; as a matter of fact, you will come across several brand names in your local cosmetic store when you go shopping for lip stick, lip gloss or similar products. So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of the required raw materials, packaging materials and other equipment needed to successfully run the business.

Over and above, if you are considering starting a lip gloss production company, then your concern should not be limited to the cost of setting up the business and churning out quality lipsticks and lip gloss but also on how to build a robust distribution network. The truth is that if you are able to build a robust distribution network, you are sure going to become a household name in the business.

Starting a Lip Gloss Line from the Scratch vs Buying a Franchise

Unfortunately, you can hardly find a franchise of a lip gloss or Lipstick Company to purchase meaning that if you want to own a lip gloss production business, then you must be ready to start from the scratch. This is so because the business is still pretty much thriving and there are loads of opportunities available to aspiring entrepreneurs that are interested in the industry as long as you can carve a niche for your brand.

The truth is that it will pay you to start your lip gloss production company from the scratch. Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business.

Please note that most of the big and successful lip gloss and lipstick production companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own lip gloss brand to become a successful brand with your products distributed all across the length and breadth of the United States of America and other countries of the world.

Possible Threats and Challenges You Will Face When Starting a Lip Gloss Line

If you decide to start your own lip gloss production line business today, one of the major challenge you are likely going to face is the presence of well – established cosmetics production brands cum lip gloss production line brands whose products can be found all across the United States and the global market. The only way to avoid this challenge is to create your own market.

So also, just like any other business, one of the major threats that you are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely face also is the arrival of a new lip gloss line or even cosmetics and beauty care product manufacturing company that also produces lip gloss, lipsticks and similar products in same location where yours is located.

Starting a Lip Gloss Line Business – Legal Matters

  • Best Legal entity to use for this type of Business

Generally, you have the options of choosing a general partnership, limited liability company which is commonly called an LLC, or even a sole proprietorship for a business such as lip gloss production line company. As a matter of fact, if your intention is to grow the business and have you products all across the United States of America and other countries of the world, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your lip gloss production line company; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your lip gloss production company so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.

Catchy Business Name ideas Suitable for a Lip Gloss Line

When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own lip gloss production line company, here are some catchy names that you can choose from;

  • Wet Lips™ Lip Gloss, LLC
  • Shinny Lips® Cosmetics, Inc.
  • Beulah Dan® Lip Gloss Production Line Company
  • Kiss Daniela® Lip Gloss Production Line Company, LLC
  • Yvonne Stallone® Lip Gloss Line, LLC
  • Catty Creme Lip Gloss, Inc.
  • Stacey Lorenzo® Lip Gloss Production Line Company, LLC
  • Jane Lips Culture, Inc.
  • Joy Channel® Lip Gloss Production Company, Inc.
  • Brenda Williams® Lip Gloss, LLC
  • Sharon James® Cosmetics & Lip Gloss, LLC

The Best Insurance Policies

Actually, in the United States and of course in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that is required by the industry you want to operate from. So, it is important to create a budget for insurance cover and perhaps consult an insurance broker to guide you in choosing the best insurance policies for your lipstick line business.

Here are some of the basic insurance covers that you should consider purchasing if you want to start your own lip gloss production line company in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Workers compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance

Intellectual Property Protection and Trademark

If at all there are any businesses that require intellectual property protection (copyright ©), then lip gloss production line company should be one of them. The truth is that your label, design and your style need to be protected or else anybody can successfully fake or create similar products and go scout free making money off your brand name.

If you want to protect your intellectual property or secure a trademark for your lip gloss production line company, you can visit The United States Patent and Trademark Office (USPTO) to fill a patent application form. The process is not in any way cumbersome. You are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.

Is Professional Certification Needed to Run a Lip Gloss Line?

Although you do not need any special professional certification before you can successfully start your own lip gloss production line company, but you will do yourself a whole lot of favor if you study cosmetology or a related course before starting this this type of business. It will afford you the opportunity to truly maximize the business; you will be able to have full grasp of the business especially as it relates to producing lipsticks, lip gloss and similar products and also branding.

So also, if you come across any form of certification that can aid you to maximize profits with your lip gloss production line company, then by all mean try and pursue such certification.

List of Legal Documents You Need to Run a Lip Gloss Line Business

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own lip gloss production line company in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Tax Payer’s ID/Tax Identification Number
  • Chemical handlers certificate
  • Health inspection Certificate
  • Copy of license for the service support facility and/or a recent inspection report
  • Business Plan
  • Non – disclosure Agreement
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
  • Building License
  • Franchise or Trademark License (optional)

Financing Your Publishing Business

Starting a lip gloss production line company can be relatively expensive even if you choose to start on a small scale by producing for your immediate community. Securing a standard and reliable production facility and purchasing equipment and machines such as blending, mixing and compounding machine, molding machine (tubes), and packaging, labeling and sealing machines and also chemical supplies et al are part of what will consume a large chunk of your start – up capital.

If you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard large scale lip gloss production company.

No doubt when it comes to financing a business, one of the first thing you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.

Here are some of the options you can explore when sourcing for start – up capital for your lip gloss production company;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for loan from your bank
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and your friends.

Choosing a Location for Your Lip Gloss Line

When it comes to choosing a location for your lip gloss line production company, the rule of thumb is that you should be guided by the demand for such product and easy access to labor and raw materials in the location you so desire to start the business.

Of course, if you are able to secure a central location for your lipstick line production business, it will enable you cut the cost of transporting your raw materials and finished products to and from your production facility and warehouse.

It cannot be overemphasized that the location you chose to open your lip gloss production line company is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people with the required purchasing power and lifestyle.

If you make the mistake of renting or leasing a facility for your lip gloss production line company in a not too visible or hidden location simply because it is cheap, then you must be prepared to spend more in promoting the business and perhaps giving direction to potential customers.

These are some of the key factors that you should consider before choosing a location for your lip gloss line production company;

  • The demography of the location
  • The demand for lipsticks, lip gloss and similar cosmetics in the location
  • The purchasing power of residents of the location
  • Accessibility of the location
  • The number of lip gloss production line company, lipstick line companies and cosmetics manufacturing companies in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security

Starting a Lip Gloss Line Business – Technical & Manpower Details

If you are considering setting up a lip gloss line production company, it means that you should be prepared to purchase equipment and machines such as blending, mixing and compounding machine, molding machine (tubes), and packaging, labeling and sealing machines.

These are the basic machines needed to launch the business. If you don’t have enough cash, you can start with fairly used equipment/machines but if you are financially buoyant, then you should go for brand new ones since they usually have a long – life span.

As regards leasing or outright purchase of a production or warehouse facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short – term rent / lease while test running the business in the location. If things work out as planned, then you go on a long – term lease or outright purchase of the property but if not, then move on and source for other ideal location / facility for such business.

When it comes to hiring employees for a standard lipstick line production company, you should make plans to hire a competent Chief Executive Officer (Owner), Admin and Human Resources Manager, Sales and Marketing Manager, Cosmetologist/Quality Control Officer, Machine Operators, Accountant, Distribution/Delivery Van Drivers and Client Services Executive. These are some of the key employees that you can work with. On the average, you will need a minimum of 7 key staff members to run a small – scale lipstick line production business.

The Process Involved in the Production of Lipstick, Lip Gloss and Similar Cosmetic Products

When it comes to the production of lipstick, lip gloss and similar cosmetics products, the first step to take is to determine the quantity and types (colors and sizes et al) of the lipsticks and lip gloss to be produced. Other steps involved in the entire process are securing raw materials (Color pigments, oils, castor oil, waxes (beeswax, candelilla wax or camauba, red fluorescent dye, solvent, antioxidant and emollients) and labeling and packaging materials.

The raw materials are then mixed under the right temperature, filled into tubes and allowed to cool off. The next step is to properly package, label and brand the products for sale. It is important to state that a lip gloss production company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility.

Starting a Lip Gloss Line Business – The Marketing Plan

  • Marketing ideas and strategies

Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a lip gloss production line company, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands determining the market direction for the lip gloss and lipstick line.

These are some of the marketing ideas and strategies that you can adopt for your lip gloss production line company;

  • Introduce your products by sending introductory letters alongside your brochure to corporate organizations, households, businesses in the cosmetics and beauty retailer industries, beauty spas / salons and key stakeholders throughout the United States and Canada.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
  • Create a basic website for your business so as to give your business an online presence
  • Directly market your products
  • Engage in road show in targeted communities from time to time to sell your products
  • Join local lip gloss, lipsticks cum cosmetics associations for industry trends and tips
  • Provide discount days for your customers
  • Advertise our business in community based newspapers, local TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

Factors That Will Help You Get the Right Product Pricing

The factors that will help you get the right pricing for your lip gloss and lipstick is to source for cheaper raw materials, produce in large quantities, cut operational cost to the barest minimum, and channel your efforts towards marketing and promoting your lip gloss brand name. Asides from the fact that this strategy will help you save cost, it will help you get the right pricing for your products.

You can also try as much as possible to work with independent wholesale distributors and marketers; with that, it will help you save cost for paying sales and marketing executives and also purchase, maintaining fleet of distribution trucks.

So also, if you are able to secure high volume lip gloss making machines; machines that are efficient to run and maintain, then you will be able to get the right pricing and of course maximize profits from your lip gloss line production company.

Strategies to Help You Boost your Lip Gloss Brand Awareness and Create a corporate identity

If your intention of starting a lip gloss production line company is to grow the business and have your products become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Your corporate identity has a lot to do when it comes to building a business that is profitable.

Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your lip gloss production line company;

  • Place adverts on both print (newspapers and cosmetics magazines) and electronic media platforms
  • Sponsor relevant community based events /programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your lip gloss brand
  • Install your billboards in strategic locations all around your city or state
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness for your lip gloss brand
  • Distribute your fliers and handbills in target areas
  • Contact corporate organizations, households, businesses in the cosmetics and beauty retailer industries, beauty spas/salons and key stakeholders throughout the United States and Canada informing them about your lip gloss production line company and the lip gloss, lipsticks and other cosmetics you sell
  • List your lip gloss production line company in local directories
  • Advertise your lip gloss production line company in your official website and employ strategies that will help you pull traffic to the site.
  • Position your Flexi Banners at strategic positions in the location where lip gloss production line company is located.
  • Ensure that all your staff members wear your branded shirts and all your vehicles, distribution trucks and vans are well branded with your company logo.

Creating a Supplier and Distribution Network

If you looking towards maximizing your lip gloss production line company, then you should go all the way to ensure that you build a robust distribution network. Products such as lip gloss and lipsticks do pretty well if they are found in every nooks and crannies of the city.

All you need to do is to ensure that you work with independent wholesale distributors, network with players in the beauty care industry (beauty salons and spas, make-up artists, cosmetic retail outlets, supermarkets and out outlets where lip gloss and lipsticks are sold and used). It will give you leverage.

Just ensure that you leverage on pricing and quality product to gain market acceptance; your wholesale distributors should be able to make good profits from selling your products if indeed you want them to go the extra – mile in promoting and marketing your lipsticks, lip gloss and other similar cosmetic products.

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