The cosmetic business which falls under the beauty industry is gaining utmost importance in this current trend. As per information the market size of India’s beauty, cosmetic and grooming market will reach $20 billion by 2025 from the current $6.5 billion. The global cosmetic market is expected to garner $429.8 billion by 2022.Going for a cosmetic business may turn out to be very profitable as its demand is increasing day by day. If we consider the points mentioned in this article then we can definitely start up our own cosmetic business.

Well, who doesn’t want to be a billionaire like Kylie Jenner. Recently, Kylie Jenner, founder and owner of Kylie Cosmetics, was listed as the youngest self-made billionaire by Forbes. The cosmetic industry is growing at a rapid pace. Owing to heavy disposable incomes, exposure to social media and the growing influence of celebrities and bloggers has caused this rise in demand for cosmetics products in the last few years.

The demand for all types of cosmetic products is ever increasing from varied sections of the population. So, the cosmetics industry holds great business potential and there are also plenty of profitable opportunities.

If we are interested instarting our own cosmetics business, below is the list highlighted and explained, that we will need to do to start a cosmetic brand of our own.

Learn how the Cosmetics’ Industry works

The most fundamental step to start any business is to understand how it works. So, if we are thinking of starting our own cosmetics brand, we need to study the existing ones like Sephora, MAC, and Estee Lauder.

We must look up and learn everything we can about them like where do their products come from; what does their distribution channel look like; how many employees do they have and so on. Moreover, we can also study the most popular beauty stores in our area and get familiar with their marketing, staffing, and product selection.

FDA’s Regulation

We need to hold a sound knowledge of the FDA’s regulations about the manufacturing and labelling of cosmetic products and its guidelines concerning the sale, labelling and production. The FDA has specific rules about the types of ingredients we can and cannot use in our cosmetics and it requires us to take responsibility for the safety of our products and for knowing the ingredients that go into them. Therefore, ensure that your products are not adulterated and that they remain in compliance with federal labelling restrictions.

Find a niche

The beauty industry is more competitive than ever, so it’s important to know what makes our brand special. We shouldtarget a niche for our cosmetics company.

We can choose our area of speciality in which we have some experience in manufacturing or selling of cosmetic products. In addition, we may concentrate on the area of cosmetics that we are familiar with so that we can plan our business well. For this, some market research and consideration of our own preferences is necessary.

Budget and funding

No business can be established without sufficient funds and a budget plan in hand. The budget should be part of our business plan. We should be able to plan out all start-up costs and recurring expenses ahead of time.

We may consider taking money from family and friends, to begin with. Later on, we can attract some good clients within our area to make a start. Making the budget is an important tool in the business kit because if we run out of money, we will not be able to operate our business and will have to shut down.


Before we start selling our cosmetic products, we must formulate and test our cosmetic products on ourselves, family, friends and all those who are willing. We may give some sample products to our friends, neighbours and relatives. It is always desirable to have a practical test of the products beforehand about how the rest of the people and the target audience will respond.  It is always recommended to do a patch test first before real application to be absolutely sure.

Decide on the Location

After deciding the segment under cosmetic business, it’s time to decide a good location for the future business. Location plays a vital role in any businesses achievement. Therefore, obtaining a good and attractive location is recommended for driving future sales at your venture.

We could initially start the business from home, later investing heavily in location. We must think from the customer’s point of view while selecting a location.

Choosing a Niche is very essential

Choosing a niche is very important both in the services and customers point of view. It is said that “you could only be successful when you clearly know what your specialty is and who your target audience is.”

Therefore, analysing our own skills and specialty is required that could later move to select a target audience. Opting for a niche population could help us engage with them easily through offering new and unique cosmetic services.

Head towards the Online Platform

In the era of digitalization, utilizing the internet for promoting and selling the services and products is the coolest and most profitable things. While half of the population is digitally occupied with their cell phones, shifting the approach to online while selling the products could well be the best decision. If we are thinking to create our own website or blog then that is great.


We can start up a cosmetic business with an investment of just Rs.50, 000 to 1, 00,000 or even less than that.  To start a beauty brand may cost around Rs.26, 27,100

Organisation Involved:

‘Direct Sales Organisation’

Required permit:

  • Identity card
  • Sale of goods permit
  • Sales and Tax Resale Certificate

Licenses required:

As per the Drugs and Cosmetics Act and Rule, the Central Government and the State Government makes rule regarding issuance of licence to a person for manufacturing cosmetics. Basically it is the State Drug Authorities of respective States, who are authorized to issue manufacturing licenses.

Firstly, a person applying for a manufacturing licence for say handmade soap needs to fill the application form 31 along with it; the person is required to pay an amount of Rs 3,500 and Rs 2,500 as a government and inspection fee of 2500 respectively.

Secondly, the cosmetics for which the licence is being acquired should be specified into classes of cosmetics, as has been mentioned under Schedule M-II, where the cosmetics have been classified into 10 categories.

A person applying for the license of manufacturing handmade soap or any other cosmetics should have passed intermediate exam with Chemistry as one of its subject or any examination which is recognized by the Licensing authority. Apart from it to get a license it is required to hold a diploma in Pharmacy which should be certified and approved either under the Pharmacy Council of India under the Pharmacy Act, 1948 or under the Pharmacy Act, 1948.

At the time of applying for the licence it is required to mention other information like the lists of equipment, manufacturing facility details with minimum area required for manufacturing, Technical Competent personnel details, etc.

Apart from those details the licencing authority also considers before approving the licence that whether the cosmetic is misbranded or is a spurious cosmetic.

For renewal also the manufacturer is required to categories the cosmetics as per Schedule M-II, apart from it Rs. 1000 has to be paid as a charge for every inspection for renewal.

Cosmetic business is a lucrative business opportunity that comes with no expiry date and free of factors like economic downturns. Even in a bad economy, people prefer to splurge on lipsticks and make-ups followed by several skin treatments.

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