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In today’s article we will see how to open a natural cosmetics company , a sector in continuous growth with excellent profit margins and with enormous sales potential abroad.
Among the many business ideas seen on the site, this is perhaps one of the most profitable as in this historical period important markets are opening up as regards everything related to sustainable production, zero kilometer, organic and respect for animals.
The statistics are clear, more than 7 out of 10 consumers would be interested in sustainable purchasing choices .
People are looking for cruelty free products (34.3%) free of parabens, preservatives, gluten, palm oil and surfactants (25.3%).
In the list there are also bio-friendly (22.1%), vegan (11.2%), ethical (16.3%) and km 0 (9.2%) solutions.
Especially in the cosmetic sector, these are deeply felt values and it is clear that creating a cosmetic brand with these values at the center of production and cosmetics is now an excellent investment.
It is necessary to take into account, however, that to start a business of this type you need excellent training, experience, a good economic base to invest, as well as the fact that it is a sector of the market in which there is a lot competition.
It is therefore very important to be successful in the cosmetic sector today, to be always updated on the new cosmetic production techniques and on the new trends listed above.
1 Origins of cosmetics
2 What are the costs to be faced to start a cosmetic company
3 Alternatives to direct production of cosmetic products
4 Bureaucratic procedure to face to start a cosmetic company
5 How to sell cosmetic products
ORIGINS OF COSMETICS
The word “cosmetics” derives from the Greek and means “order”, that is, in its broadest sense “beautify”, and is a set of techniques and activities aimed at improving the aesthetic and hygienic aspect of people.
Cosmetics is therefore a term associated with body care , and in this sense, identifying the origin of this practice is difficult.
In fact there are reports of peoples who have used oils, ointments and other natural cosmetic products since the time of the ancient Egyptians, Romans and Greeks.
But it was with the advent of industrialization that cosmetics were really known all over the world (the first lipstick was invented in 1910), so much so that today there are thousands of companies dedicated to the production of make-up, personal hygiene products , perfumes, etc.
On the other hand, the proliferation of this commercial sector has been assisted above all by the fact that while once the idea of personal care was traditionally linked to women, over the years men have also started to make more and more use of cosmetics product.
So, starting a cosmetic company today can be a very profitable activity, in fact the demand for cosmetic products is perhaps as high as ever, also thanks to the fact that in the media we are used to seeing images of people who are increasingly perfect and ordered.
WHAT ARE THE COSTS TO FACE TO START A COSMETIC COMPANY
Those who decide to start a cosmetic company must consider that there are many expenses to be faced before starting to see the profits of their business.
The expenditure can range from a figure that is around 100,000 euros, up to several million euros depending on the type of production you want to start.
For example, those who want to produce cosmetics with formulas of their own invention will have to face the costs related to the registration of the brand , which can vary according to different elements; and must also appoint a technical manager for the production of cosmetics, i.e. a person who supervises and certifies the fact that all stages of the production of cosmetics have taken place according to the law (this role, however, can also be assumed by the entrepreneur himself, if he has the requirements).
Who wants to start a cosmetics company, therefore, in the first place, you will have to rent or purchase a local where to start production, and possibly also one in which directly sell products to customers.
Then it will be necessary to purchase the raw materials , in fact the elements that make up a cosmetic product can be different depending on the type (lipids, emulsifiers, humectants, colors and pigments, and many others), and their price varies according to the quality; as well as the machinery necessary for the production (analyzers, climatic chambers, extractor hoods, centrifuges, etc.) and for the packaging of cosmetics.
But not only that, there are many expenses to consider also in terms of business management, in fact there will be staff, utilities to pay
It will be necessary to take into account the fact that today more and more people are showing interest in natural cosmetics and silicone and paraben-free products.
This is on the one hand extremely positive, because it indicates greater awareness on the part of people and because it is healthier to use products of this type for the human being, but also for the environment; on the other, it leads to entrepreneurs often higher production costs, the cost of natural raw materials being higher than that of traditional products.
So starting a cosmetic company is not a small business, adequate skills and economic skills are needed.
However, there are alternative ways to open a cosmetic company without spending big capital.
The production of natural cosmetics can obviously also affect farms which can in fact transform their production into cosmetic products.
ALTERNATIVES TO THE DIRECT PRODUCTION OF COSMETIC PRODUCTS
In the previous paragraph we have described the classic way of producing cosmetics that involves significant costs, however it is not the only way to go.
Among the best alternatives to the direct production of natural products, there is the possibility of creating your own cosmetic brand by relying on a third party cosmetic company .
In fact, you need to know that there are companies specializing in this service: they are production laboratories that produce products at the customer’s request, who can therefore use their own brand.
The business model of the production company is not to run its own brand, but to produce for the customer’s brand .
In fact, many cosmetic brands have the same primary manufacturer, the game will be done by the marketing and the sales network.
If your desire is to open a natural cosmetics shop , the process and the economic commitment will obviously be different.
The cosmetics shop generally does not produce the products under its own brand, but buys the products of the companies most sought after by customers.
Another possible way instead is to join an already existing brand ( franchise ), which involves a significant reduction in expenses because to enter you pay a share (royalties or fee), and you have several advantages, including above all that of associate with a brand already known and affirmed on the market.
Another excellent method of reducing expenses (especially if you are young) is then to verify the existence of subsidies or funds , provided by the State or by the Regions for example.
BUREAUCRATIC PROCEDURE TO FACE TO START A COSMETIC COMPANY
In order to open a cosmetics company in India, it is of primary importance to obey the regulations in a slavish way.
The bureaucratic procedure will be different depending on whether you are the one who produces the cosmetic products, or you buy them under your brand from the manufacturer.
In the first case, it is necessary to overcome a complex bureaucratic process , and it could be very useful to turn to one or more professionals (accountants, lawyers, engineers, etc.), to do everything in the most correct way, and above all to avoid having to run into sanctions, having to resort to amnesties or risking having to close the business.
The owner of the cosmetic company , in particular, must: open the VAT number at the tax office; register and adjust their position and that of the staff working in the company with INPS and INAIL; enter the activity in the commercial register; communicate the start of the activity (SCIA) to the Municipality where the company will be built. The Municipality must then also submit a request for authorization to display the sign.
The premises in which the cosmetics company opens must also be built and organized taking into account the requirements required by law.
In fact, before the opening, the firefighters will inspect the premises and will release the authorization only if everything is in order, that is, if the current laws on urban planning, safety, etc. have been respected.
If the company produces make-up, creams, perfumes or other types of cosmetics, the premises in which the laboratories will be installed must comply with the hygiene and health standards, because also in this case checks will be carried out at the end of which authorization issued by the ASL (local health company).
HOW TO SELL COSMETIC PRODUCTS
As a good entrepreneur knows, everyone knows how to open a company, but few know how to manage it better.
To open a company of natural cosmetic products, in fact, you must be able to sell them otherwise sooner or later the company will go bankrupt.
The business model is closely linked to the type of company you will open: the artisan production laboratory can in fact dedicate us to third party production and therefore will have to look for other target customers in other entrepreneurs , while those who create a brand will have to know how to create a network of direct and indirect sales through representatives who will beat the territory in search of dealers.
In any case, listed, one of the fundamental steps to be successful is to create a company website that can explain to the customer what is being done and above all how it is done.
The company website is the business card of the business, it is from here that the first impression is given to the customer and it is therefore essential to have one capable of identifying the company’s message in no time.
As for the creation of a network of representatives , you can start by contacting the chamber of commerce which through the business register reports all the professionals active at the time of the request.
There are also several specialized services from the various trade associations that guide the entrepreneur in search of the right representatives.
Obviously, a company with a professional website will also have the advantage of finding retailers directly through its online channels.
Those who sell directly to the end customer will have their own ecommerce where they can sell directly.
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