How to Start a Beauty Business: Guide & Examples [2024]


According to McKinsey, the beauty industry reached 430$ billion in revenue and grew at a compound annual growth rate (CAGR) of 6% through 2027. Thanks to the development of digital technology, evolving beauty trends, and new formulations and packaging, there are various answers to what you should sell and how to start a beauty business effectively. 

With proper researching and planning, your new beauty business has various potential to thrive in this lucrative market. To help you understand how to start your own beauty business, in this blog, we detail 8 ultimate steps when opening a business from scratch.

1. Starting a beauty brand: too challenging, or still promising?

Due to high competitiveness, it is hard to find a potential niche and stand out from the crowd in this competitive industry. Besides, you have to stay up-to-date with changing market trends and innovate your products and services to meet the demands of customers. 


The beauty industry has tons of challenges but offers significant opportunities too, that bring you to a new height. With the wide range of customers, potential services, and the diversity of marketing channels and business models, you can tap into a vast customer base and explore niche markets.

Thanks to the development of eCommerce, entrepreneurs reach more customers in various channels. You can sell your products in physical stores, eCommerce websites like Shopify, digital marketplaces, or social media channels, including Etsy, Amazon, and eBay. Even if you have a small budget, you can choose a suitable business model to start with. 

Look for how to start a cosmetic business at home. Dropshipping and mobile services will be the best answers for you.

2. How to start a beauty business: what you need to know 

2.1. Research and define your niche


If you want to know how to start a beauty business effectively, just learn about market research! There are some steps you have to go through when researching the market: 

  • Identify your niche: You have to research the current trends in the beauty industry and consider some aspects that you are excited about, including makeup, organic skincare treatment, perfume, hair care products, and services. Then, you will define your niche and target audience. If you want to find a suitable niche, just check our list of top beauty business ideas
  • Research and analyze the market: After choosing an appropriate niche and defining your target customers, you need to profoundly understand your customers and competitors. Thus, you will have effective marketing strategies to approach and retain your customers. 
  • Define your unique selling point (USP): Having a USP will set you apart from your competition and appeal to your target market. With USP, customers can remember you easily and distinguish you and other brands. 

2.2. Decide on a business model, concept, and brand identity

There are various business models that you can apply, from mobile services, and hair and makeup salons, to drop shipping, retail online stores, or white label. Just consider your budget and long-term and short-term goals to find the best one. Then, analyze your budget and allocate your budget effectively.


After that, building your brand image with a name, logo, and story behind it is the next step in how to start a beauty business effectively. You should list some impressive beauty business name ideas, consider the meaning behind of name, and choose table one that fits your theme and target audience. Besides, your beauty logo should express your brand identity, and style and attract your target audience with consist of colors representative of your brand. 

Just remember, your compelling brand identity has to reflect your business values and resonate with your target audience. With a memorable brand name and logo and establishing consistent branding across all marketing materials will help you expand your brand in the future. 

2.3. Create a business plan

With an effective beauty business plan, you will set a solid foundation and roadmap for your beauty business. As an ultimate guide, this dynamic document will help you focus on your goals, define the activities and strategies to reach your targets, and communicate your vision to potential stakeholders, such as investors or lenders. 


Make sure that your comprehensive business plan outlines your goals and target market, including marketing strategies, financial projections, and operational details. To keep your business on track, you have to clarify your targets and activities and ensure that the key elements of your business plan below are covered: 

  • Business overview: Your business name, mission, and business model
  • Market research and analysis: Research your target customers, market trends, and competition.
  • Products and services: Explain the beauty products and services you offer
  • Marketing and sales strategy: Outline the marketing strategies, pricing, and distribution plans.
  • Operation and management: Introduce members of your team and their roles
  • Operations: Describe your production and management processes.
  • Financial projections: Clarify your income statements, startup capital, cash flow projections, and funding needs.
  • Risk analysis: Identify some potential risks and plans to deal with them.
  • Appendices: Attach supporting documents

2.4. Register your business


To protect your business, you have to register your business with a suitable legal business structure. There are five main business entity types: limited liability company, sole proprietorship, partnership, C Corporation, and S Corporation. You should choose a suitable structure based on the entity type’s unique requirements and your business goals. 

2.5. Choose suppliers and products

Based on your business models, you will have different purchasing strategies. For example, if you run a hair salon, you have to connect with two or three suppliers and import equipment, haircare treatment products, and hair dye. 

On the other hand, if you start your beauty business with a dropshipping model, you don’t have to purchase any products, just find a trustworthy fulfill partner and send more information to them. They will prepare products and ship them to your customers. 


To avoid risks, you have to evaluate potential suppliers based on criteria like product quality, reviews from old customers, pricing, minimum order quantities, and shipping options. It is crucial to request samples or product catalogs that help you assess the quality and suitability of their offerings. 

After listing some potential suppliers and picking up two or three suppliers, you have to establish clear communication with them and discuss more about terms and prices, foster trust, and regularly review their performance.

2.6. Set up your online/ offline store

Based on your business models, products, and services, and your budget, you can create an online or offline store, or even both. For example, opening a nail salon requires a physical studio. While running a skincare product brand, you may need a website and stores in digital marketplaces.


If you wonder how to start a cosmetic business online, selecting a reliable eCommerce platform is the first thing you have to do. Besides user-friendliness and an impressive interface, your website must be optimized for mobile devices since almost all customers use mobile phones to buy online. 

If you open an offline store, you should choose a physical location that aligns with your market. To attract more customers, creating a visually appealing space that showcases your products is a must. Besides, you can create in-store promotions, events, and demonstrations to attract and engage customers.

2.7. Promote your products and business

Want to know how to start a beauty brand successfully? Focus on marketing! Based on your target customers, you have different marketing strategies

For example, If you are looking for how to start a beauty product business and attract your Gen Z customers, focusing on social channels, including TikTok and Instagram is the best answer for you. But if your customers are baby boomers or Gen X, leveraging your business through some traditional channels including newspapers, television, and billboards is a good idea.


To attract customers, you should offer samples, discounts, or referral programs to encourage word-of-mouth marketing. Participating in offline events, tradeshows, and local fairs and collaborating with other brands will help you reach more potential customers and increase brand visibility. 

Customers believe in reviews and read the feedback of old customers to verify products and services’ quality. So, you need to improve customer reviews and testimonials to build trust and credibility. 

2.8. Provide excellent customer services

If you want to deliver superb services to your beloved customers, you have to begin by hiring skilled staff and training them according to customer service standards. Creating a welcoming and comfortable atmosphere in your physical store with cleanliness and a relaxing scent will boost customers’ moods and make them more willing to buy. 


For the online store, make sure that your website and online stores are optimized. Customers can easily find the products and information they need. Besides, you can provide valuable blogs, eBooks, and digital guides that help them use products effectively. Since customers shop online, make sure that they can track their orders, and understand maintenance and return policies if they have any problems with your product. 

To enhance your services, you need to seek feedback from customers and make necessary improvements based on their input. By consistently delivering excellent service, you will have more loyal customers and stand out from the crowd in this industry. 

3. Online beauty business examples

3.1. Fenty Beauty


As one of the most famous brands in the US, Fenty impresses customers with the diversity of products for different skin types and genders. With outstanding social media marketing strategies, Fenty knows how to approach their main customers – Gen Z and Millennials. 

The brand actively interacts with followers, collaborates with micro and macro influencers, reposts user-generated content, and encourages customers to share their experiences when using products on social media. 

3.2. Apothecary 87


Unlike most beauty brands, Apothecary 87 focuses on a specific niche – bread and skincare items for men. 

With a monochrome background and retro style, the color, graphics, and typography of this website have a strong vintage vibe that impresses customers when go to their website. Not only that, the online store integrated with Instagram, allows audiences to search for necessary products right from their social media accounts.

3.3. Monday Haircare


With sustainable and super cute packaging, Monday Haircare impresses customers at first sight. Not only that, the brand has a PETA-approved formula free of parabens and sulfates and commits to recycling the bottles. Many hair professionals and salons in New York admit that the Monday Shampoo is one of the best natural shampoos for cleansing and detangling hair. 

Due to the affordable price tag and diverse product lines, customers can choose suitable items without worrying about price. Thanks to naturally derived ingredients like artichoke extract and shea butter, Monday Haircare has gained more love from customers and become popular. 

4. Conclusion

To thrive in the beauty industry, besides knowing how to start a beauty shop business profoundly, carefully planning, and strategically executing, you need a unique selling point (USP) that differentiates you from tons of competitors. Offering innovative products, excellent customer service, and customized options are great ways to have USP.  

And don’t forget to update your products and services! Various new brands can replace your business even if it is famous. Thus, you need to stay up-to-date with industry trends, collect customers’ feedback, and optimize your business frequently. 

If you want to know how to start your business, gain more valuable knowledge and strategies from experts, or just seek out some beneficial opportunities, subscribe to eComStart and check out our blogs on the topic of business starting guides! With profound knowledge and insightful practice, eComStart will help people succeed in the world of business.

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