Do you want to know how much it cost to start a makeup line business? If YES, here are 15 factors that determine the cost of opening a makeup line. Cosmetic and beauty products manufacturers basically prepare, blend, compound and package beauty products and cosmetics for their clients.

Cosmetic and beauty products included in this industry are perfumes, makeup items, hair preparations, face creams, lotions and other toiletries. If you are conversant with the cosmetic and beauty products business, you will realize that there is room for any investor or entrepreneur to start his or her own business and still get a fair share of the market as long as his or her product is of standard and it meets the existing requirements.

No doubt it requires loads of research, experience and huge capital base to be able to establish a makeup line of business that can be globally accepted. But if you want to start small, then you might not have to break the bank to get started, but you must still do thorough research and if possible acquire a degree or diploma in cosmetology. In this article, we will help you with the estimated cost of opening a makeup line in your city.

The Estimated Cost of Starting a Makeup Line Business

When it comes to starting a standard makeup line business, one is expected to spend the bulk of the startup capital on is leasing a facility in an ideal location, purchasing and installing equipment and machines. Please note that the exact cost of opening a makeup line depends on the size of the makeup line and where it will be located. This are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand launching of the makeup line in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring Business Consultant (it includes writing of business plans) – $4,500.
  • Insurance (general liability, workers’ compensation and property casualty and other related insurance policy) coverage at a total premium – $12,400.
  • The cost for payment of rent for a facility for 12 months at $1.76 per square feet in the total amount of – 75,600.
  • The cost remodeling the facility and constructing a standard makeup line factory (including installing the needed machines and gadgets) – $150,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
  • Operational cost for the first 3 months (salaries of employees, fueling and maintenance of the distribution trucks, and payments of bills et al) – $150,000
  • The cost for start-up inventory (raw materials and Chemicals such as Color pigments, oils, Castor oil, waxes (beeswax, candelilla wax, or camauba, red fluorescent dye, solvent, antioxidant and emollients) and labeling and packaging materials. et al) – $40,000
  • The cost for storage hardware (bins, rack, shelves, creates) – $20,720
  • The cost for equipment and machines such as blending, mixing and compounding machine, molding machine (tubes), and packaging, labeling and sealing machines) – $150,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $750
  • The cost of purchase of distribution trucks – $35,000
  • The cost of launching a website – $600
  • The cost for our opening party – $5,500
  • Miscellaneous – $5,000

From the rough estimate as listed above, you would need a minimum of six hundred and sixty four thousand five hundred and twenty five USD ($664,525) to establish a medium – scale but standard makeup business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.

Please note that this is a rough estimate and we usually advise our readers who are interested in starting opening a makeup line to directly contact wholesalers and suppliers of the type of machines and raw materials and also sellers of the items in order to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above. Having said that, here are some of the factors that will influence the cost of opening a makeup line in the United States of America;

15 Factors That Determine the Cost of Opening a Makeup Line Business

1. The Type of the Makeup Line Business

A major factor that will determine the overall cost of opening a makeup line business in the United States of America is the type and size of makeup line you want to open. For example, it will cost more to open a makeup line business that is into the production of various types of makeups when compared to the cost of opening a makeup line business that is only into retailing.

2. The Choice of Location

Another major factor that will determine the cost of opening a makeup line in the United States of America is the location. As a matter of fact, there are business consultants and realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them profitability.

So, you will now agree that location can influence the cost of starting a business not just in the United States of America but anywhere in the world. For example, renting or leasing a store or production facility in a location that is off the city center or off a major road will be less expensive when compared to renting or leasing a store facility in a highbrow area; a location along a major road with high vehicular and human traffic.

3. The Required Licenses and Permits

In the United States of America, you cannot open a makeup line without first applying for the mandatory license and permits. Of course, you would need operational license, building license, zonal permits, signage permits, chemical handlers license amongst others. As expected, these license ad permits cost money and it will influence the overall cost of opening a makeup line business in the United States of America.

Please note that there may be several inspections you must pass before you can be issued your licenses and permits– this will also cost you money. In order to get the overall cost of licensing and permits associated with opening a new makeup line in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.

4. The Type of Facility

The type of facility you want to operate your makeup line from in is also a major factor that will determine the overall cost of opening a makeup line business in the United States of America. As regards the facility, you have the option of renting, leasing or designing and constructing your own store or production facility from the scratch.

With renting and leasing a store or production facility, you might just have to spend extra to modify the store facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants.

Let us assume that you want to construct your production and store facility from the scratch. It means that you will buy the land or a property, bring up your design and of course construct and equip the production and store facility to fit into the ideal picture of a makeup line that you have in mind.

With that, you will agree that you are going to spend way more when compared to people that rent or lease a production and store facility in a shopping mall. This indeed will greatly influence the overall cost of opening your makeup line business.

5. Your Products and Service Offerings

Another key factor that will determine the cost of opening and operating a makeup line business in the United States of America is the products and services offerings of the business. The fact that there are different types of makeup line business such as brick and mortar and strictly online stores means that these makeup line businesses are designed to operate differently.

The cost for opening a brick and mortar makeup line with production facility and retail outlet will be far more when compared to the cost of opening a strictly online makeup line business.

6. The Size of the Makeup Line Business

Another very important factor that determine the cost of opening a makeup line business in the United States of America is the size of the makeup store. Of course, the larger the makeup store, the large the budget to get it up and running especially as it relates to stocking the store.

Aside from the cost of stocking the store, it will also cost you more to position employees to man different job positions in the store and this will translate to spending money to open the makeup line store. For example, less than a handful of employees can man a makeup line store that is in a 12 by 12 facility while it will take about a dozen employees to man a makeup line store that is in a 24 by 24 facility.

7. The Cost of Hiring and Paying a Business Consultant and Attorney

As expected, if you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document a marketing plan and strategy comprehensive SWOT analysis and other advisory issues.

So also, an attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors) and offering you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening a makeup line store in the United States of America.

8. The Cost for Branding, Promotion and Marketing of the Makeup Line Business

The cost for branding, promoting and marketing the makeup line is yet another key factor that will determine the overall cost of opening a makeup line business in the United States of America. Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing of your new makeup line business.

As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your makeup line business.

9. The Cost for Furnishing and Equipping the Makeup Line Business

Another factor that will determine the cost of opening a makeup line business is the cost for furnishing and equipping the store. You will quite agree that aside from the basic facilities such that are expected to be found in a makeup facility, an investor may decide to spend more than expected to furnish and equip the facility to look unique.

As expected, before you can open a makeup line store, you should budget and buy storage hardware (bins, rack, shelves, case), shopping baskets and trolleys, counter area equipment, Flat Screen TVs, sound system, Satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets, store equipment (cash register, POS machines, security, CCTV, ventilation, signage), and security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening a makeup line store in the United States of America.

10. The Cost for Insurance

The cost for paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a makeup business in the United States of America. Interestingly, in the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy cover that are required by the industry you want to operate from.

Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your own makeup line business.

11. The Cost for Registering the Business

The cost for registering the makeup line business is yet another cost that will influence the overall cost of opening a makeup line business in the United States of America. Although, the cost of registering a business is affordable, it will no doubt add to the overall cost of opening a makeup line business in the United States of America.

12. Source of Your Supplies

Another major factor that will determine the cost of opening a makeup line business in the United States of America is the source of your supplies. For example, if you are not into the production of your makeups and you have to rely on supplies, and if you are able to build a robust business relationship with some of the leading makeup line production companies, then you would have succeeded in cutting down the cost of your supplies. As a matter of fact, you can even get your supplies on credit.

13. Cost of Recruiting and Training Your Staff

The fact that you are opening your makeup line as a new business means that you are expected to recruit and train your staff. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire expect trainers that will help you bring your new hires up to speed and that will add to the overall cost of opening a makeup line business.

14. The Cost of Purchase and Customizing of Uniforms

Another factor that will determine the overall cost of opening a makeup line business in the United States is the cost of the purchase and customizing of uniforms, shoes, and caps amongst others. Your staff all have different uniforms and they are expected to put on these uniforms when they are on duty. All these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a makeup line business in the United States of America.

15. The Cost for Grand Opening of the Makeup Line Business

In recent times, no makeup business opens its door for business without first organizing an opening party to officially launch the business. This means that the cost of grand opening is part of the factors that will determine the overall cost of opening a makeup line business in the United States of America.

You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and this cost will influence the overall cost of opening the makeup line business in the United States of America.

In Conclusion,

Please note that there are other factors not listed above that will sure influence the overall cost of opening your makeup line business which is why we will advise that you work with a result driven business consultant to give you the needed guide and info as it relates to the unique factors in your location that can influence the overall cost of opening your makeup line business in the United States of America.

Ajaero Tony Martins