How To Start a Cosmetics Manufacturing Company

Historically, American beauty standards haven’t accommodated a Black woman’s color palette. This has made finding makeup brands that fully highlight our skin tones a real struggle.

But over the years, makeup has experienced a renaissance in shades, colors, and tones, and you can form part of that surge. All it takes is knowing how to start a cosmetics manufacturing company.

Know the Laws

As with any industry, cosmetics feature their own sets of regulations. (And considering that the gilded age saw arsenic and lead-based makeup products, we should thank our lucky stars for that).

When you first set out to start a cosmetics company, read up on the FDA’s Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA).

Federal Food, Drug, and Cosmetics Act

The FD&C Act, enacted by President Franklin D. Roosevelt in 1938, was designed to prevent the sale of “adulterated” products, defined as “filthy, putrid, or decomposed substances” held in unsanitary conditions.

It also prohibits the sale of “misbranded” products or products with false information. The Fair Packaging and Labeling Act expands on the idea of misbranding.

Fair Packaging and Labeling Act

The FP&L Act was enacted in 1967, and focused on products with labels that clearly and accurately express information about the product, including:

• What the product is
• Its ingredients
• Amount of the product
• Weight of the product
• Name of the manufacturer, packer, and distributor
• Its effects

This also applies to hiding true information. This act prohibits packaging designed to make any of the above information illegible or impossible to find.

Identify Start-up Costs

All businesses require some amount of start-up costs, and cosmetics are no exception. Potential start-up costs include costs of businesses, manufacturing the product, acquiring the necessary equipment, and paying for marketing.

Depending on the size of your company, this may cost you anywhere between 7,000 to 10,000 dollars.

Find Your Brand Identity

Starting a business is like creating a piece of art. You must have a vision to make it happen. The business version of a vision is a brand identity. Ask yourself a few questions as you decide how to start your cosmetic business: 

• What niche am I trying to fill with my products?
• What personality does my brand have?
• How is my brand distinct from its competitors?
• What images capture my brand’s personality?
• What is the personality of my target audience?

The answer to these questions will determine how you market your brand, from your product’s packaging to your company’s social media posts.

Create a Retail Strategy

Now comes the most important part: getting your product into the hands of your customers. That’s where a retail strategy comes in.

Will you set up a fully online store? Or will you sell your products through local and national brick-and-mortar stores?

Both options have their benefits and pitfalls, and many people commit to a combination.