Are you interested in starting a cosmetics related business? Do you want to become your own boss? If you answered YES to these questions, then you should consider starting a lip gloss line in the UK. Please note that if you intend starting this type of business, it is advisable to first look at the existing laws and zonal regulations in the city you reside in to know what is expected of you.
The bottom line is that you need to pay a visit to the regulatory bodies in the United Kingdom to get all the information you need before you can legally open your lip gloss brand in your city in the UK. You can start your lip gloss business from a small town in the United Kingdom and if you are good at what you do, it won’t be too long before your brand becomes nationally recognized especially if you go into franchising.
20 Steps on How to Start a Lip Gloss Business
Understand the Industry
Lip gloss is one product that is used all across the world by both male and female. It is fact that there is no cultural barrier when it comes to the use of lip gloss. As a matter of fact, doctors do recommend that patients with dry lips make use of lip gloss.
In the last decade, lip gloss and lipstick production 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 boosted revenue and profit. Operators flooded the industry over the period, as demand for brand-name and value-added products increased.
An increasingly health-conscious customer base is becoming progressively more aware of 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 UK lip care products market grew at a CAGR of 2.5% during 2014-2019. Lip care products form a key part of the everyday skin-care regime. They not only help in maintaining the moisture content of the lips but also play a key role in protecting the lips against cold, wind and UV radiation.
An increasing emphasis on youthful appearance and personnel grooming represents a key factor driving the market. Moreover, a rising demand for value added lip care products such as natural and sun protection products are also creating a positive impact on the market growth.
Other factor driving this market include growth in the e-commerce industry, continuous product innovation by manufacturers, rising penetration of social media, increasing demand for male oriented lip care products, etc. Looking forward, IMARC Group expects the UK lip care products market to continue its moderate growth during the next five years.
Despite the fact that the lip gloss production business appears to be somewhat saturated in the United Kingdom, 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 production because of the vast opportunities that are available in the industry and also because the industry is profitable especially when it is well positioned and promoted.
Lastly, the lip gloss 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 you can choose to start on a large scale with your products spread across the UK and even in other countries of the world.
Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition for those who make use of lip gloss is all encompassing. It is not restricted to just the female gender; males also make use of lip gloss to protect their lips from hash weather condition that can cause lip cracks and dryness.
The truth is that when it comes to selling lip gloss 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 all those who reside around the location of your business and who have purchasing power.
Decide Which Niche to Concentrate On
There is no niche in the lip care products line of business. Those who are into the production of lipsticks are also into the production of lip enhancing cosmetics in different colors 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 business.
The Level of Competition in the Industry
The fact that the entry level for a lip gloss production business could range from moderate to high couple with the fact that it is a profitable business means that loads of people would want to enter the business. Besides, there are major players in the industry which is why the business is highly competitive in the United Kingdom.
Despite the fact that there are competitions in the lip gloss production industry in the UK, a designer who has carefully studied the industry before launching his or her business won’t struggle to breakeven. The idea is to choose a particular packaging in the industry that is still open in your location unless you have the financial resources to promote your lip gloss line and wrestle a portion of the existing market from the market leaders.
Starting a lip gloss line in the UK and hoping to compete with establish lip gloss brands will definitely not be easy even if you have enough financial resources to sustain robust publicity and promotion of your brand. You still have to pay your dues in the industry before your brand can be accepted. The easiest route to take is to manufacture cheaper lip gloss that may be needed outside the United Kingdom.
Know Your Major Competitors in the Industry
Here are some of the most popular lip gloss brands in the United Kingdom;
- Boots No. 7
- Max Factor
- A.C. Lipstick
- NYX GB
- Cult Beauty
- Glamour UK
- Eve Cosmetics UK.
Just like any other business, when starting a lip gloss line in the United Kingdom, you just have to get your economic analysis right if your intention of building the business is to generate profits, grow the business, sell franchise and perhaps expand your distribution network beyond the United Kingdom.
When conducting economic analysis for your lip gloss line, you just have to critically examine these key factors; place, product, pricing, and promotion. As a matter of fact, you have to continue to review these key factors at regular intervals while running your lip gloss business.
It is important to note that payment of utility bills, rent, packaging and promotion and of course the purchase of raw materials and other supplies is one of the most important factors contributing to the overall cost of a lip gloss business and should be considered as a major factor when carrying out your economic analysis.
Decide Whether to Buy a Franchise or Start from Scratch
Any entrepreneur who wants to start his or her own lip gloss business in the United Kingdom cannot buying a franchise because there is no franchise in the industry. As a matter of fact, it pays to start your own lip gloss line from the scratch, you can choose to start small and serve a specific market segment and then grow as you so wish.
Please note that most of the big and successful lip gloss brands in the United Kingdom started from the scratch and they were able to build a solid business brand. It takes creativity, dedication, hard work and determination to achieve business success.
Know the Possible Threats and Challenges You Will Face
There is hardly any business venture that does not come with its own challenges and threats. Lip gloss business just like every other business has its own challenges and threats.
Some of the common challenges a new lip gloss business faces are lack of fund to sustain the media hype and advertisement needed to successfully sell the brand to the public. Other challenges are economic downturn, unfavorable government policies and the arrival of competitors within your target market space.
Choose the Most Suitable Legal Entity
The United Kingdom has a wide array of options that you can choose from if you are looking for a business structure to build your business on. The most important thing is that you should select a business structure that will best serve your overall business vision and mission.
In the UK, you can start your business as a Sole trader, Limited company, Private limited company (LTD or Ltd), Public limited company (PLC), Limited liability partnership (LLP) or Guarantee Company (LBG). If you are not sure of which of the business structures to choose from, then consider going through the quick preview below before making your choice;
- Sole Trader
A sole trader is a business-type where one person owns and runs the entire business. It is the simplest business structure you can adopt. It is very suitable for any one-person business; this includes independent accountants, web developers and gardeners among others.
A sole trader is an individual is entitled to all/any profits of the business but is also liable for any debt/damages incurred. In the UK, there are currently over 3 million registered sole traders, and the number is growing with the massive influx of skilled freelancers.
- Limited Company
A limited company is a legal business structure that means a business is a separate entity from its owners. This means the owners are only liable for any business debts to the extent of the amount of money they put into the business, thus limiting any exposure for business owners beyond their total investment. There are two types of limited companies you can incorporate in the UK.
- Private Limited Company (LTD or Ltd)
In a private limited company, the owners privately hold shares. This is the most common and preferred incorporation structure for most small businesses in the UK. Over 5.2 million limited companies are operating in the UK now.
The bottom line is that if you have plans to grow your small lip gloss line beyond yourself (one person) and then sell it, then a Private Limited Company would likely be the most suitable structure. If you are considering operating a mom-and-pop kind of lip gloss line, then a Sole Tradership would probably be the best structure to build your business on.
But if you have plans to build a business brand that has a significant amount of senior management, capital and that deals in services, then a Limited Liability partnership would be the best choice.
Choose a Catchy Business Name from the ideas Below
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. Typically, 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 line in the UK, here are some catchy names that you can choose from;
- Cheryl Pinky® Lip Gloss Label, LTD
- Stacy White® Lip Gloss Brand, LTD
- Princess Diana© Lip Gloss Label, LTD
- Laurin Mills® Lip Gloss Production Company
- Three “O” Four™ Lip Gloss Brand, LTD
- Lady Bee™ Lip Gloss Brand, LTD
- Cynthia Rowland© Lip Gloss Production Company
- Ruth Bae® Lip Gloss Label, LTD
- Pink Lane© Lip Gloss Label LTD
- Mary Rooney© Lip Gloss Label, LTD
Discuss with an Agent to Know the Best Insurance Policies for You
In the United Kingdom, you can’t operate a business without having some of the basic insurance policies 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.
Here are some of the basic insurance policies that you should consider purchasing if you want to start your own lip gloss business in the United Kingdom;
- General insurance
- Health insurance
- Commercial Umbrella Insurance
- Public Liability Insurance (PLI)
- Professional Indemnity Insurance (PII)
- Employers Liability Insurance (ELI)
- Key Man Insurance (KMI)
- Trade Credit Insurance (TCI)
You can contact the following leading insurance companies in the UK to purchase the needed insurance policies for your lip gloss line or brand business;
- Aviva PLC
- Old Mutual Ltd
- Prudential PLC
- RSA Insurance Group PLC
- Direct Line Group Insurance PLC
- Hiscox Limited
- Admiral Group PLC
Protect your Intellectual Property With Trademark, Copyrights, Patents
Starting a lip gloss line may not require that you secure your intellectual property. But if you are a cosmetologist with your own unique formular, you may consult an attorney to help you secure your intellectual property. This can only be done if you are pretty sure that you are the inventor of the formular. One thing about the lip gloss production industry is that cosmetologists are more concerned in protecting their logo and brand as against protecting their unique formular.
So, if you want to protect your unique formular, your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection.
If you want to register your trademark, you are expected to begin the process by filing an application. Please note that a straightforward trademark application takes approximately three to five months to register in the UK. An uncomplicated European Union Trademark application typically takes between six and nine months.
Get the Necessary Professional Certification
There are businesses that require professional certifications before the business can be launched but lip gloss line business is not one of them. Any entrepreneur who desires to start his or her own lip gloss line or brand can start it with little or no stress.
In actual sense, you do not need any special professional certification before you can successfully start your own lip gloss production line in the United Kingdom, but you will do yourself a whole lot of favor, if you study cosmetology or a related course before starting this business.
If you come across any form of certification that can aid you to maximize profits with your lip gloss production company, then by all mean try and pursue such certification.
Get the Necessary Legal Documents You Need to Operate
It is a fact that you cannot successfully run any business in the United Kingdom without the proper documentations. If you do, it won’t be too long before the long hands of the law catch 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 business in the United Kingdom;
- Business and liability insurance
- Council Permit
- Chemical handler certificate
- Health inspection Certificate
- Copy of license for the service support facility and/or a recent inspection report
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
Raise the Needed Startup Capital
It is one thing to come up with a fantastic and highly workable business idea, but a different kettle of fish to hit the ground running. Finance is the lifeline of any business; money will be required to get a lot of things in place prior to starting a business. There are some businesses that can be started with little or no money, but lip gloss production is not one of them. If you want to start a lip gloss line, you will need to raise startup capital.
No doubt when it comes to financing a business, one of the first things 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 startup capital for your lip gloss business;
- 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
- Source for soft loans from your family members and friends.
Choose a Suitable Location for your Business
When it comes to choosing a location for your lip gloss business, 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 lip gloss 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 choose to open your lip gloss line or brand 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 and businesses who will patronize them.
If you make the mistake of renting or leasing a facility for your lip gloss line 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 clients.
The crux of the matter is that before choosing a location for your lip gloss line or brand, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.
Having said that, these are some of the cities in the UK where you can locate your lip gloss line or brand business;
Hire Employees for your Technical and Manpower Needs
If you are considering setting up a lip gloss line production company in the United Kingdom, you should be prepared to purchase blending, mixing and compounding machines, molding machines (tubes), and packaging, labeling and sealing machines. 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 facility or warehouse , the choice is dependent on your financial standings, 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. On the average, you will need a minimum of 7 key staff members to run a small – scale lip gloss business.
The Service Delivery Process of a Lip gloss Line or Brand Business
When it comes to the production of lipsticks, 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 lip gloss to be produced. Other steps involved in the process are securing raw materials Chemicals (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 and then filled into tubes, allowed to cool off. The next step is to 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; the above stated business process is not cast on stone.
Write a Marketing Plan Packed With ideas & Strategies
Marketing ideas and business strategies are key aspects of a business that must not be neglected when drafting your business plan. As a matter of fact, if you are not certain on the marketing ideas and strategies to deploy before starting your business or if you are not sure of how to generate sales for your business, it is advisable to you go back to the drawing board as against going all out to commit your money to the business.
Marketing your lip gloss business requires creativity and aggressiveness. No doubt there are competitions in the market, but if your designs stand out, you will be a able to corner a portion of the available market.
So, when you are drafting your marketing plans, make sure that you create a compelling company profile. Aside from your qualifications and experience, it is important to clearly state what you have been able to achieve in time past.
This will help boost your chances in the market place when marketing your brand. Here are some of the platforms you can utilize to market your lip gloss business;
- Introduce your products by sending introductory letters alongside your brochure to corporate organizations, households, businesses in the cosmetics and beauty retail industries, beauty spas/salons and key stake holders throughout the United Kingdom.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn, Pinterest and Instagram 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.
- 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)
Work Out a Reasonable Pricing for your Products
One key factor that will help you produce and retail your lip gloss at rock bottom prices is to at least purchase your raw materials and supplies directly from wholesalers in pretty large quantities. The truth is the higher the quantity of items you purchase directly from wholesalers, the cheaper you tend to get them.
Another strategy that will help you retail your lip gloss at the right price is to ensure that you cut operational cost to the barest minimum and channel your efforts towards marketing and promoting your brand name. Aside from the fact that this strategy will help you save cost, it will also help you get the right pricing for your products.
You can also try as much as possible to work with independent contractors and marketers; it will help you save cost of paying sales and marketing executives.
Develop Iron-clad Competitive Strategies to Help You Win
The availability of competent and reliable cosmetologists under your payroll, your business process and of course your pricing model are part of what you need to stay competitive in the industry.
Another possible competitive strategy for winning your competitors in this particular industry is to network and build a robust clientele base. Over and above, ensure that your organization is well positioned; key members of your team are highly qualified and can favorably compete with the some of the best in the industry in the UK.
Brainstorm Possible Ways to Retain Clients & Customers
When it comes to business, no matter the industry that you choose to pitch your tent in, one of the easiest ways to increase customer retention and perhaps attract new customers is to produce results and satisfy your customers always. If your customers are satisfied with your products and service delivery, they can hardly source for alternative service providers.
If your services and customer service fluctuate, you are likely going to struggle to get your customers coming back to purchase from you. Ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers.
Part of what you need to do to achieve this is to track progress, results or outputs with the aim of improving on them quickly as the case demands. When it comes to managing your customers and building a loyal clientele base, you should purchase a customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can carry out quick surveys, you can introduce new products and prices to them without any hitch, you can felicitate with them on their birthdays and other anniversaries, you can keep track of their progress, you can send bulk sms and customized e – mails and above all, you can easily receive compliant and feedback from them).
Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
If you are in business and you are not conscious about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them to be.
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. Here are the platforms you can leverage on to boost your brand and create a corporate identity for your lip gloss line;
- Place adverts on both print (newspapers and fashion magazines) and electronic media platforms
- Sponsor relevant community-based events
- Get well known celebrities in different fields to endorse your brand (if a celebrity makes use of your lip gloss, he or she will definitely help you generate traffic for your brand)
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, Pinterest, YouTube, Google + et al to promote your lip gloss line or brand
- Install your billboards in strategic locations all around your city
- Distribute your fliers and handbills in target areas
- List your lip gloss line or brand business in local directories / yellow pages
- Advertise your lip gloss line or brand business 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 your lip gloss business is located.
- Ensure that all your staff members wear your branded shirts and all your vehicles are branded with your company logo.
- Can Sole Traders Get Business Grants in UK? - March 15, 2021
- List of Private Label Hair Products / Companies in UK - February 26, 2021
- 12 Photography Franchise Opportunities in UK and Their Cost - February 26, 2021