Despite what the naysayers may have told you, 2021 was the perfect time to launch your private label skin care and beauty line. According to a recent article in the New York Times, “The coronavirus pandemic appears to have unleashed a tidal wave of entrepreneurial activity, breaking the United States—at least temporarily—out of a decades-long start-up slump.”
Indeed, applications for new businesses have been on the rise since 2020, and it doesn’t look like that will change anytime soon. If you were one of the countless aspiring business owners who took the leap and followed your passion this year, congratulations! We’ve put together the following five tips to help you navigate this first year with ease and grow a successful beauty business.
Get the paperwork squared away.
Depending on where and how you plan to operate your business, you may need to first register it as a legal entity. Once you have chosen a name, the U.S. Small Business Association website is a great place to start to find out what you need to do to protect your business at the state and federal level, as well as why you may want to choose one business structure over another.
For new estheticians operating out of a spa or salon, you may also want to consider adding insurance coverage. There are specific liability concerns that come with performing treatments and selling skin care products, and a comprehensive insurance policy can help protect your business and your bottom line.
Develop a strong online presence.
In case you haven’t heard, eCommerce is still going strong—a trend experts say will continue well into 2022. The takeaway? Now more than ever, developing a strong online presence is vital to the success of your beauty business. Even if you plan to conduct the majority of your services (and product sales) in a spa or salon, modern consumers expect their favorite brands to have a high-quality website with online shopping capabilities. Read our blog about the 5 Elements of a Successful eCommerce Website to learn more.
Creating a robust social media presence will also go a long way toward helping you grow your business and increase revenue in the new year and beyond. Especially in the skin care and beauty industry, a comprehensive social media strategy will be the key to connecting with your audience and building brand loyalty through relevant, quality content. Not sure where to start? Check out these two blogs:
Choose your price points carefully.
One of the biggest factors to consider when launching your private label skin care business is how to determine the perfect price point for each of the products you plan to offer. This will depend on several important factors, including your target audience, where you will be selling, what similar products are selling for, and of course what your competitors are charging.
As a new business owner, your focus may be on keeping your products affordable for your customers. However, you still need to make a profit to ensure your business is successful. When pricing your products, consider our recommended retail price ranges below.
Face wash: $35–$45
Face and eye serums: $35–$85
Spot cream: $16–$35
Masks and scrubs: $45–$90
Lip plumper: $30–$40
Lash serum: $40–$60
Hemp products: $38–$72
Beauty supplements: $25-50
Remember, you can always modify your pricing over time, so the prices you choose initially do not have to be set in stone. Pay attention to current beauty trends as well as consumer purchasing behavior and feedback, and adjust your prices accordingly as your beauty business evolves.
Create a referral program.
As a new business owner, one of your primary goals is to build your customer base—and creating a referral program is an excellent way to do it. A referral program rewards your existing customers for recommending your products to their friends and family members. It could be a discount off their next purchase, a free product, or even a complimentary one-on-one beauty consultation.
Referral programs are especially effective in the skin care and beauty industry, where buyers are more likely to trust a recommendation from someone they know. More importantly, setting up a referral program costs you next to nothing as a business owner, but the return on your investment is undeniable. According to this eye-opening article published by Retail TouchPoints, referral programs boost customer retention, raise the average order value, and lead to more user-generated content that can further amplify your brand.
Build relationships with mentors.
You may have started your business solo, but that doesn’t mean you’re on your own. Whenever you can, lean on your peers, your fellow business owners, and those who inspired you to launch your private label beauty brand, and ask them to share what they have learned.
Building relationships with mentors, whether in person or online, will help provide you with the tools and information necessary to grow your business, and a great place to start is the Onoxa Insiders Facebook Group. It was created exclusively for beauty entrepreneurs and experts to discuss skin care, label design tips, marketing advice, product trends, pricing, and more.