How Much Does It Cost to Start a Lip Gloss Line Business?

You need a minimum of $664,525 to open a medium–scale lip gloss line business in any city in the United States of America.

Lip gloss line just like the lipstick production 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. Lip gloss is applied to the lips as part of makeup basically to boost lip color, texture, and often hydration.

The lip gloss production line business is a business whose products are used all across the world by both males and females.

It is fact that there is no cultural barrier to the usage of lip gloss. As a matter of fact, doctors do recommend that some patients with dry lips should make use of lip gloss.

The lip gloss and lipstick production line of business has experienced elevated demand, 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 boosted 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.

Estimated Cost of Starting a Lip Gloss Line Business

When it comes to starting a standard lip gloss business, one is expected to spend the bulk of the startup capital on leasing a facility in an ideal location and of course purchasing and installing equipment and machines. These are the key areas where you are expected to spend your startup capital on;

1. The total fee for registering a business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
3. Marketing promotion expenses for the grand opening of the lip gloss line business 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.
4. The cost for hiring Business Consultant – $2,500.
5. Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400.
6. The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $105,600.
7. The cost for construction of a standard lip gloss line production plant – $100,000.
8. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
9. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
10. The cost for Start-up inventory (raw material (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) – $80,000
11. The cost for store equipment (cash register, security, ventilation, signage) – $13,750
12. The cost of purchase of distribution vans – $60,000
13. The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
14. The cost of launching a website – $600
15. The cost for our opening party – $10,000
16. Miscellaneous – $10,000

From the rough estimate 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 lip gloss line business in any city in the United States of America.

Please note that this is a rough estimate and we usually advise our readers to directly contact wholesalers and suppliers of the type of equipment and raw materials they need 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.

Factors That Will Influence The Cost Of Opening a Lip Gloss Line Business

1. The Type of Business

A major factor that will determine the overall cost of opening a lip gloss line business in the United States of America is the type and size of business the owner wants to open.

Normally, if you just want to start a lip gloss line that is only about selling other manufacturers’ products, the cost of starting the business will be sure lesser when compared to a lip gloss line that is both in production of different types of lip gloss.

2. The Choice of Location

Another major factor that will determine the cost of opening a lip gloss line in the United States of America is the location.

In business, location is a key part of what determines the success of the business. As a matter of fact, there are business consultants and realtors who are specialized in helping people choose an ideal location for their business.

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, a location in a metropolitan city with the right demographic composition of people with the purchasing power to buy from you.

3. The Required Licenses and Permits

In the United States of America, you cannot open a business without first applying for a mandatory license and permits.

You would need an operational license, building license, zonal permits, signage permits, and chemical handlers license amongst others.

These licenses and permits cost money and it will influence the overall cost of opening a lip gloss line business in the United States of America.

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 lip gloss line business 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 lip gloss line business from is also a major factor that will determine the overall cost of opening a lip gloss line business in the United States of America.

As regards the facility, you have the options of renting, leasing or designing and constructing your own facility from the scratch.

With renting and leasing a store or production facility, you might just have to spend extra cost to modify the 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 property, bring up your design and of course construct and equip the production and store facility to fit into what 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.

5. The Size of the Lip gloss business

Another very important factor that determines the cost of opening a lip gloss business is the size of the store. Of course, the larger the lip gloss store, the larger the budget to get it up and running especially as it relates to purchasing raw materials and packaging materials.

Aside from the cost of purchasing raw materials and packaging materials, it will also cost you more to hire employees. For example, less than a handful of employees can man a lip gloss production factory that is in a 24 by 24 facility while it will take about a dozen employees to man a lip gloss production factory that is in a 50 by 50 facility.

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

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, a marketing plan and strategy, a comprehensive SWOT analysis, and other advisory services.

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.

7. The Cost for Branding, Promotion, and Marketing 

The cost of branding, promoting, and marketing the lip gloss line is yet another key factor that will determine the overall cost of opening a lip gloss 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.

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 lip gloss line cum cosmetics and beauty line industry in your city.

So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your lip gloss line business.

8. The Cost for Furnishing and Equipping the Business

Another factor that will determine the cost of opening a lip gloss line business is, of course, the cost of furnishing and equipping the production facility.

Before you can open a lip gloss store, you should budget and buy bins, racks, shelves, cases, 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 lip gloss line store in the United States of America.

9. The Cost of Insurance

The cost of paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a lip gloss 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 covers that are required by the industry you want to operate from.

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

10. The Cost of Registering the Business

The cost of registering the lip gloss business is yet another cost that will influence the overall cost of opening the 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 lip gloss line business in the United States of America.

11. Source of Your Supplies

Another major factor that will determine the cost of opening a lip gloss line business in the United States of America is the source of your supplies, labeling, and packaging materials.

For example, if you are not into the production of your lip gloss and you have to rely on supplies, then if you are able to build a robust business relationship with some of the leading suppliers, 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.

12. Cost of Recruiting and Training Your Staff

The fact that you are opening your lip gloss line as a new business means that you are expected to recruit and train your staff to conform to the kind of business you want to operate.

The training will help you sell the corporate culture of your organization to your new employees. As expected, it will cost you money to hire trainers that will help you train and bring your new hires up to speed and that will add to the overall cost of opening the business.

13. The Cost for the Purchase and Customizing of Uniforms

Another factor that will determine the overall cost of opening a lip gloss line business in the United States is the cost of the purchase and customizing of uniforms.

As expected, production line workers, sales boys, sales girls, front desk/payment attendants, etc, all have different uniforms and they are expected to put on these uniforms when they are on duty.

These uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a lip gloss business in the United States of America.

14. The Cost of Grand Opening of the Business

You will agree that in recent times, no lip gloss line business opens its door for business without first organizing an opening party to officially launch the business.

This means that the cost of a grand opening will be part of the factors that will determine the overall cost of opening a lip gloss business in the United States.

You can choose to do a soft opening 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 your lip gloss business.

In Conclusion,

Note that there are other factors not listed above that will surely influence the overall cost of opening your lip gloss line business which is why we will advise that you work with a result-driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location.