Date published: January 10, 2024
Are you a makeup enthusiast? If so, you may be wondering how to start your own lip gloss company. Follow this comprehensive guide to begin your entrepreneurial journey.
Best Practices
Financial Preparation
Business Tips
Starting your own lip gloss business can be an exciting journey. The lip gloss industry is cost-effective, fast, and uncomplicated because you don’t need significant capital or an investor to start your beauty business. If you are wondering how to start a lip gloss company, follow along to begin your journey towards business ownership.
Lip gloss was first introduced to the public in 1930 by the Max Factor Company. After almost a century, the beauty industry is growing more than ever. According to Statista, 122.62 million women in the U.S. used lipstick and lip gloss in 2020. This figure is projected to increase to 124.68 million in 2024. Moreover, studies predict that people will continue to use more beauty products causing demand growth over the following years. As a result, the lipstick industry is expected to value about $10 billion by 2024.
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Statistics also show 4,082 Cosmetic and Beauty Products Manufacturing businesses in the US as of 2022, an increase of 3.6% from 2021. Therefore, starting a lip gloss business line can be a rewarding journey for a young entrepreneur. It is one of the best business ideas for teens.
Operating a lip gloss business has many benefits, but we have outlined the most important ones that will help you move forward confidently:
Creating a lip gloss line offers several potential avenues to explore:
Each of these models has benefits and disadvantages for your entrepreneurial journey, so let’s take a closer look at how they work.
This business model doesn’t require any capital investment to start making money, and the process of becoming a lip gloss distributor is relatively easy. All you must do is find lip gloss brands like Avon and Mary Kay, apply to become a distributor and sell the products. These vendors for lip gloss will also provide you with resources and sales materials to help you get started. After all, the more distributors a company has, the more products it will sell.
A private label manufacturer produces the lip glosses for you and adds your brand name to the packaging. You have complete control over choosing the colors, packaging, scent, quality, and all the aspects of developing your lip gloss. This business model is very cost-effective because the solutions and materials used to make the lip gloss may have already been approved by the FDA. However, note that some private label companies have a minimum number of products you can buy, which may be a lot when you first start your business.
Starting a lip gloss line from scratch is the most challenging yet rewarding option. You will need to purchase all the materials required to make your lip gloss and brand your products yourself. It would be best to experiment with different formulas before you start to sell. Until you have enough money to hire other people, you will be running your entire business yourself.
If you want to make your lip gloss, you have two options: you can either buy a lip gloss starter kit or buy all the ingredients separately. Either way, it’s important to make sure your product meets all requirements listed under the Federal Food, Drug, and Cosmetic Act.
There are many lip gloss starter kits available for every taste and budget. The kits include a few hundred units of private-label lip gloss, tubes in different sizes, ingredient stickers, oils, micas, pigments, and other necessary items. Prices can range from $50 to $ 1,000.
Creating homemade lip gloss from scratch can be a straightforward process that requires just a handful of essential ingredients and tools. Here's a breakdown of what you'll need:
Safety Tip: Before experimenting with your homemade lip gloss, we strongly recommend seeking professional guidance to ensure its safety and quality, especially if you intend to use it on yourself or others.
Here is a list of some of the ingredients and tools needed to make lip gloss to sell:
The base is the foundation of any lip gloss. Usually, it has a transparent color. But you can add dyes, glitter, and other pigments to the base to make it unique and original.
There are different types of oils that you can add to your lip gloss base. The most popular oils used in lip glosses are coconut oils, olive oil, castor oil, and almond oil. These oils are also known for their nourishing properties.
Different types of wax can be added to your base and natural oils, depending on how thick you want your gloss to be. The most popular choices are beeswax, candelilla wax, and carnauba wax. All three options have to soften properties and provide a glossy finish. However, avoid utilizing beeswax if you are marketing your products to the vegan or cruelty-free community.
You could also use a mix of clays to make your lip gloss’s consistency even thicker. The three clay families used for cosmetic purposes are kaolinite, illite, and smectite. Each clay is used for different purposes.
If you like to add extra taste and scent to your lip glosses, then flavoring oils are a great option. You can also mix oils to create unique flavors like strawberry vanilla or mint chocolate.
You can add liquid lip dyes to your lip gloss base to get your desired color. You can also use different pigments and mix them to get the shade you want.
Once you have formulated your lip gloss, you need to store it in a container. Then, depending on your customer’s preference, you could sell your lip glosses in wand tubes or squeeze tubes. As the name indicates, a wand tube comes with a small wand-like applicator that you use to apply on your lips. Unlike a wand tube, a squeeze tube doesn’t have an applicator. Instead, it has a small hole through which you squeeze the gloss out onto your lips.
Pipettes and syringes will help you measure and transfer your finished product into the wand or squeeze tube. As your business grows, you can purchase an automatic or semi-automatic filling machine for higher levels of precision and improved speed with the help of equipment financing.
Now that you know how to make a lip gloss, you need to decide to whom you would like to sell your products. For example, if you want to make subtle lip glosses, it is better to target a professional audience. On the other hand, if your goal is to create lip glosses that pop and have a fruity taste, it might be better to target the younger generation.
You could also work the other way around. You could determine your niche and then create the lip gloss targeted to their needs. Knowing your niche will help you market effectively and keep costs down.
Competition in the beauty industry is high, and it is projected to keep growing. Moreover, the competition goes beyond your city or country. It is also international because lip gloss brands worldwide can be found in cosmetics stores across the U.S. and online. However, if you have done your due diligence and know your target market, you can grow and advance in the industry with the right marketing strategies.
Branding is what will make you stand out among your competitors. Your brand name and logo are essential elements alongside product quality and marketing strategy. Your name is one of the main components of how others perceive your brand.
That’s why you should be creative and come up with a name related to your brand that’s catchy and easy to remember. Ideally, pick at least three names for your business and share the list with close friends and family. Then, ask for their feedback to understand how people perceive them and choose the best alternative. Your brand's perceptions will play a crucial role in establishing and maintaining loyalty to your brand in the long run.
If you have design skills, you can create your logo. If not, you can take advantage of online logo-generating services or hire a freelance graphic designer. Also, make sure that your lip gloss branding labels are in a proper size proportional to your tubes.
The next step is to register your business. Popular options for a lip gloss production business include a limited liability company (LLC), partnership, or sole proprietorship.
Establishing an LLC protects the business owner from personal liabilities. If something goes wrong in the business, your personal belongings are protected. Only the money you put into your business will be at risk. For example, if one of your customers has an allergic reaction to your product and decides to sue you, the LLC may protect you as an individual.
Moreover, operating an LLC is simpler and more flexible than other alternatives. If you want to compete more effectively and grow your lip gloss production, starting with an LLC and then changing it to an “S” business enterprise or a “C” company might be the best option. By making the switch, you can transfer the company’s ownership more easily, enjoy a separate tax structure, and have flexibility in ownership.
A partnership is a good option if you start your lip gloss company with two or more friends. However, you will have unlimited personal liability. This means that if someone sues your business, you and your partners may lose your personal belongings.
A sole proprietorship is suitable for new companies with no employees. However, you are personally liable for any damages. Moreover, if you take your business seriously and have intentions to grow, then choosing a sole proprietorship may stand in your way.
Legal requirements will vary depending on your location and type of business. If you are making lip gloss from scratch, you need to ensure that your products meet quality and safety standards. The U.S. Food and Drug Administration (FDA) regulates the cosmetics industry; hence, all color additives, labeling, and packaging must be approved by the FDA for the intended use.
For example, if you want to sell organic lip glosses, you should follow FDA regulations for safety and U.S. Department of Agriculture (USDA) laws for organic products. For instance, you can only use the term “organic” if at least 95% of the ingredients used in your lip gloss are organic.
If you want to become a lip gloss distributor or sell private-label lip gloss, you don’t have to worry about this matter. The FDA has already approved these goods.
Moreover, you need the proper documentation to run a successful business. To legally operate your lip gloss company in the U.S., you need to obtain the following legal documents:
Everything starts with protecting your business idea. Then you need to protect your label, design, and style, or else anyone can successfully fake it or create similar products and make money from your brand name. So, visit the United States Patent and Trademark Office (USPTO) and fill out a patent application form to protect your intellectual property or secure a trademark for your company.
As your lip gloss company grows, you’ll need insurance to protect your business. Even if you have an LLC, your business can be sued. Discuss with an agent to understand the best insurance policies. The two most popular insurance policies that lip gloss business owners get are general liability insurance to protect themselves from lawsuits against the company and product liability insurance if a customer injures themselves by misusing the product.
You don’t need any professional certification to operate a lip gloss company successfully. However, you will do yourself a big favor if you enroll in a cosmetology school before starting your business. Studying cosmetology will help you better understand the industry so you can create a quality product.
There are two main avenues for selling cosmetics: online and in-store. They are not mutually exclusive, and many small operations succeed with both options. Here’s what you should know before going in either direction.
Launching and selling lip gloss online can significantly reduce your operational costs. Here are some effective strategies to kickstart your online lip gloss business:
By implementing these strategies, you can effectively launch and grow your online lip gloss business, reaching a wider audience and maximizing your online sales potential.
Before opening your brick-and-mortar store, consider the set-up costs such as décor, lip gloss business cards, rent, and utilities. The location you choose to operate your lip gloss business is the key to your success. You should select a suitable place for your business where your target niche can easily access your store.
However, even if you open a store, it’s a good idea to have a website and promote your product on your social media platforms. Advertise online, offer special discounts, and build a solid social media presence. Encourage your customers to spread the word about your products and reward them with incentives.
The investment required to start a lipstick business can vary widely depending on factors such as the scale of the operation, location, and business model. On average, you may need anywhere from $5,000 to $20,000 or more to start a small to medium-sized lipstick business. This amount would cover all the things we mentioned above starting from product development and manufacturing to branding and packaging. Many startups may face financial hardships during their first stages, so it is more common to consider startup business loans as a way of solution. Keep in mind that these costs can significantly vary, and it's essential to create a detailed business plan to determine your specific startup costs based on your business goals and the market you intend to target.
Starting your lip gloss business can take many forms. You can choose to become a lip gloss distributor, work with a private label manufacturer, or make your own lip gloss from scratch. No matter which route you choose, starting your lip gloss business can be done inexpensively. Make sure you get all the required licenses, permits, and the approval of the FDA, and focus on the creativity of your marketing to attract new customers and make more money.
Ethan James Lead WriterBelow are frequently asked questions and our answers to them. We have also provided links to learn more information about each of the specific topics identified below. Feel free to contact the FDA - CFSAN - Outreach and Information Center (salesforce-sites.com) for general cosmetic questions or for specific questions regarding Modernization of Cosmetics Regulation Act of 2022 (MoCRA), please contact QuestionsAboutMoCRA@fda.hhs.gov.
1. Does FDA regulate cosmetics?
2. How do I know if my products are regulated as cosmetics, and not as drugs or some other product category?
3. Do I need to have my cosmetic products or ingredients approved by FDA?
4. What do I need to know about using color additives in cosmetics?
5. Do I need to register my cosmetic product facility or list products with FDA?
6. Can I manufacture cosmetics in my home or salon?
7. Can I label my cosmetics “natural” or “organic”?
8. Must I test my products and ingredients?
9. Using available safety data
10. Doing additional testing
11. Can I use a Post Office (P.O.) box or website for the address on the label?
12. Where can I learn more about labeling requirements?
13. What are the local requirements for starting a cosmetics business?
14. Do I need to get a license from FDA to manufacture or market cosmetics?
15. Where can I find more information on FDA requirements I need to know about?
Yes. FDA regulates cosmetics under the Federal Food, Drug and Cosmetic Act (FD&C Act). Under MoCRA, which expanded FDA’s authority under the FD&C Act law, cosmetics must not be adulterated or misbranded. For example, they must be safe for consumers under labeled or customary conditions of use, and they must be properly labeled. Any color additives they contain must be approved for the intended use, and some must be from batches certified in FDA’s own labs. Packaging and labeling must not be deceptive. If you manufacture or market cosmetics, you have a legal responsibility for the safety and labeling of your products.
To learn more, see “Resources for You: Industry” and “Cosmetics: Guidance and Regulations,” where you will find overviews of the laws, links to the laws and regulations themselves, and more.
A product’s intended use is determined by factors such as product claims, consumer expectations, and certain ingredients. A product is a cosmetic if it is intended for uses such as cleansing the human body, making a person more attractive, or changing a person’s appearance. Here are some examples of products marketed as cosmetics:
If a product is intended to affect the way a person’s body works, or to treat or prevent disease, it’s a drug, but sometimes it is both a cosmetic and a drug depending on its claims. Drugs must meet different requirements.
Some “personal care products” are regulated by FDA as medical devices or as dietary supplements, while others, including some soaps, are regulated by the Consumer Product Safety Commission (CPSC). To learn more about these product categories, including how FDA determines a product’s intended use, see Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?).
Here are some more resources:
The law does not require cosmetic products and ingredients, except for color additives, to be approved by FDA before they go on the market. However, cosmetics must not be adulterated or misbranded. This means that they must be safe for consumers when used according to the labeling, or as people customarily use them, and they must be properly labeled. To learn more, see Key Legal Concepts: Interstate Commerce, Adulterated, and Misbranded.
With the exception of color additives and ingredients that are prohibited or restricted by FDA regulations, you may use any ingredient in your cosmetic, as long as it does not cause the product to be adulterated in any way. You are legally responsible for making sure your cosmetics are safe and properly labeled, in compliance with all the laws and regulations that apply to them.
Remember, however, that not all “personal care products” are regulated as cosmetics under U.S. law. For example, some are regulated as drugs. If your product is a drug under U.S. law, it must meet the requirements for drugs, such as premarket approval. For more information about how some “personal care products” are regulated by FDA as medical devices, while others are regulated by the CPSC, see #2 above.
A color additive, other than coloring materials intended for use as coal-tar hair dyes, must be approved by FDA for the intended use. These color additives are listed in regulations called “listing regulations.” Some may be used only if they are from batches certified in FDA’s own labs. Here are some resources to help you learn more:
Yes, you may need to register your facility and list your cosmetics products. Please see our Draft Guidance that describes the Modernization of Cosmetics Regulation Act of 2022 (MoCRA) requirements for facility registration and product listing, and the exemptions under MoCRA for certain small businesses.
MoCRA exempts certain small businesses from facility registration and product listing.
However, such exemptions do not apply to manufacturers or facilities that manufacture or process the following cosmetic products:
Exemptions also exist for certain products and facilities that are subject to requirements for drugs and devices (For ex. Class 1 and Class II Device Exemptions).
If, however, your products are drugs, or both cosmetics and drugs, they must meet the requirements for drug registration. Similarly, importers of cosmetic ingredients that are also classified as food products must meet the registration requirements of the Bioterrorism Act of 2002.
It’s not against the law to manufacture cosmetics in your home. Keep in mind, however, that it’s your responsibility to manufacture products in an environment that will not cause them to become adulterated.
Here are some of the ways in which a cosmetic can become adulterated:
FDA intends to conduct rulemaking as part of the implementation of MoCRA, which requires FDA to establish good manufacturing practices (GMP) that, to the extent practicable and appropriate, are consistent with national and international standards. If you manufacture homemade cosmetics or own a salon, exemption from GMP requirements may apply. For more information on GMP, please see:
The same requirements for safety and labeling apply to all cosmetics, no matter what their source. This includes, for example, making sure that all your labeling is truthful and not misleading.
FDA has not defined the term “natural” and has not established a regulatory definition for this term in cosmetic labeling.
FDA also does not have regulations for the term "organic" for cosmetics. The U.S. Department of Agriculture (USDA) regulates the use of the term “organic” for agricultural products under the National Organic Program (NOP). If you have questions about the use of the term “organic,” contact USDA. Answers to some common questions about "organic" cosmetics are available on our website under “‘Organic’ Cosmetics.”
Don’t use terms such as “natural” as part of an ingredient statement, because ingredients must be listed by their common or usual names, without additional description.
And remember, choosing ingredients from sources you consider “organic” or “natural” is no guarantee that they are safe. You are still responsible for making sure your ingredients are safe when used according to the labeling, or as they are customarily used, no matter what kinds of ingredients you use.
In general, a manufacturer, packer or distributor whose name appears on the label of a cosmetic product is required to ensure adequate substantiation of safety of their cosmetic product and to maintain records that support substantiation. Adequate substantiation of safety means tests or studies, research, analyses, or other evidence or information that is considered, among experts qualified by scientific training and experience to evaluate the safety of cosmetic products and their ingredients, sufficient to support a reasonable certainty that a cosmetic product is safe. Animal testing is not a requirement. It’s important, however, that all data used to support the safety are derived from scientifically robust methods.
FDA does not require specific tests to demonstrate the safety of individual cosmetic products or ingredients. Nor does FDA require cosmetic companies to share their safety information with FDA prior to marketing of their products. However, if certain conditions are met, FDA can access and copy records, including safety substantiation data for cosmetic products and their ingredients.
FDA has consistently advised manufacturers to use whatever testing is necessary to ensure the safety of their products and ingredients. Firms may substantiate safety in a number of ways. FDA has stated that "the safety of a product can be adequately substantiated through:
Additionally, there are regulations that prohibit or restrict the use of several ingredients in cosmetic products. (See 21 CFR 700.11-700.35.)
For more resources on cosmetics safety substantiation, please see Product Testing of Cosmetics.
Manufacturers can use relevant safety data that is already available to support the safety of their products.
Here are some examples:
The Cosmetic Ingredient Review (CIR) website has information on the safety of cosmetic ingredients that they have reviewed. (CIR is an industry-funded panel of scientific and medical experts who review the safety of cosmetic ingredients. FDA participates in CIR meetings, but does not vote, and we may agree or disagree with CIR conclusions. However, we do take CIR reviews into consideration when we evaluate cosmetic ingredient safety.)
You may also need to do toxicological testing to fill in any gaps in the information that’s available. Toxicology or other testing methods may be necessary to determine the safety of each ingredient and the finished product. And don’t forget microbiological safety. Cosmetics do not have to be sterile, but they must not contain any harmful microorganisms, and the number of aerobic microorganisms per gram must be low. To learn more, see “Microbiological Methods for Cosmetics.”
Many factors can affect how your product may become contaminated, including use by consumers, such as dipping one’s fingers into a jar. If you do not have the technical expertise to determine the best way to ensure that your product is protected from contamination, you may want to work with a consultant.
For more resources on cosmetics safety substantiation, please see Product Testing of Cosmetics.
A post office box or website address is not adequate for this labeling requirement.
The FD&C Act requires cosmetic labels to identify the name and place of business of the manufacturer, packer, or distributor. By regulation, this includes the street address, city, state, and ZIP code, although you may omit the street address if your firm is listed in a current city or telephone directory. You may use the main place of business instead of the actual place where the cosmetic was manufactured, packed, or distributed, unless such a statement would be misleading.
If you use the distributor’s address, you must use a phrase such as "Distributed by" or "Manufactured for," followed by that firm's name and place of business. The name of the firm must be the corporate name. See the regulation on name and place of business at 21 CFR 701.12.
Cosmetic labeling is not subject to premarket approval by FDA. It’s your responsibility to make sure your labeling meets all requirements. For specific labeling questions, please contact the FDA - CFSAN - Outreach and Information Center (salesforce-sites.com) or for specific questions regarding Modernization of Cosmetics Regulation Act of 2022 (MoCRA), please contact QuestionsAboutMoCRA@fda.hhs.gov.
Here are some useful resources:
Some cosmetic labeling requirements are regulated by other federal agencies. For example, the U.S. Federal Trade Commission regulates claims of “Made in USA.” Other country of origin labeling is regulated by U.S. Customs and Border Protection (see “Chapter 13-Country of Origin Marking”).
You may wish to work with a labeling consultant. FDA, as a government agency, does not provide referrals to private consultants.
You will need to contact your state and local authorities for that information. The Small Business Administration can also help.
FDA does not license cosmetics firms. However, state or local authorities may require licensing or have other requirements you need to know about. You will need to contact your state or local authorities directly. Again, the Small Business Administration may be able to help.
See “ Resources for You: Industry" for a list of resources for members of the cosmetics industry, large and small. You will find information on labeling, color additives, imports, exports, other agencies you need to know about, links to the laws and regulations, and more.