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Wondering how to open a beauty supply store? There are more than 40,000 beauty supply stores in the United States. There’s a reason for the strength of that industry.

Start-up costs are truly up to you, as much or as little as you choose. And the beauty supply store business, both as a physical location and an online seller, is predicted to increase as an industry.

We’re going to tell you how to open a beauty supply store, at a physical location and online.

What is a Beauty Supply Store?

A beauty supply store may sell a wide range of products, including hair care, cosmetics, nail care, fragrances, skincare, and more.

A beauty supply store may sell to salons, licensed professionals, and individual consumers.

How to Start a Beauty Supply Store Business: 14 Crucial Steps

Whether you operate from a brick-and-mortar location or an online location, you’ll face stiff competition in the beauty products market.

Your beauty supply store will be competing with salons, box stores, specialty stores and even infomercials. How do beauty supply businesses make it in the beauty products competition?

The keys to success are starting with research, followed by careful planning, to keep your costs low. And having a retail customer experience will put you that much ahead of the game. We’ll start with tips for opening an actual store.

1. Come Up with a Mission Statement

A mission statement describes what your business is and why you chose to sell beauty supply products.

Do you want to empower customers, help them learn which beauty brands are their best options? Do you want customers to leave your retail store with beauty products specifically chosen for them?

What standards have you used to select the products that will be available in your store? How did your personal values figure into those decisions?

2. Decide on a Niche and Beauty Brand

Most successful beauty products businesses sell a wide range of products. But a niche can exist within those sprawling products. Choosing a niche can help keep down costs.

For example, do you want to focus on anti-aging products? Currently, anti-aging products, especially creams and lotions, are leading sellers in the beauty products business. Do you want to sell baby care products?

3. Know Your Target Market

As in many businesses, you are selling to all adults – not just women – with purchasing power. Your market will depend on your local and regional demographics, including age categories across all genders.

In addition to age, the climate of your area could have an impact. Chapped hands during the long winter? Need for sunscreen and skincare products during months of hot weather?

Knowing your customers is an important part of your research before you start a beauty supply store.

4. Research Local Beauty Supply Stores and Check Out the Competition

Don’t limit yourself to researching other local beauty supply stores. Yes, they are your competition.

Remember that your competition also comes from television and online advertising (infomercials), box stores, discount stores and specialty stores.

After you learn what all these suppliers have, choose the brand of products that will set your store apart from the competition while keeping your costs down.

5. Write a Business Plan

The beauty supply store business was impacted by the pandemic as salons were deemed nonessential and forced to close. Yet that’s when consumers turned to beauty supply stores.

Accept that there may be times when your store is closed. Including the capability for online orders and shipping in your business plans is crucial to your success.

Your business plan should also include plans for operations and future growth. The majority of people who start a beauty supply business don’t go the sole proprietor route. They choose to form an LLC, which protects you from personal liability involving any issues with the products you sell. Or they may form an S corporation, where owners can join by buying stock in the company.

6. Research Licensing, Permits and Fees

Here are the basics you’ll need: business license, taxpayer ID/Employer Identification number, employee handbook and employment agreement forms, an operating agreement (if you’re an LLC).

Be cautious if you plan to operate in a mall-type setting. Some of these have “no competition” standards which would preclude you from opening if your store is deemed to compete with an already existing store. For example, there’s a discount store with a row or two of beauty products. Research regulations or agreements involving a group of stores before you try to establish your store there.

7. Decide on a Budget

Remember that every beauty supply store started from scratch. You can too.

You can keep your costs low when you start by limiting the amount of stock you order for your store. That way you can concentrate on your branding, and see what’s selling and why. You can analyze your customer base, which may be different from the market you targeted.

You can lease or buy your store.

8. Decide on a Location – A Large Mall or Shopping Center?

As we stated, some large malls or shopping centers may have regulations on the type of store and the numbers of them that they’ll allow there.

It makes sense. You wouldn’t want to open a beauty supply business in a large mall or shopping center and have another beauty supply business open at the same location.

When you’re considering a location, answer this question: What will my hours of operation be? If you’re at a mall or shopping center, your Open for Business times will most likely be the same as their hours.

The location you choose for your store should be well-positioned, easily visible in a well-traveled area.

9. Hire Amazing Staff

Put a big star next to this topic. This is crucial.

Anticipate that each of your customers will want to ask a question about products. You’ll need staff who are knowledgeable, people persons who genuinely love the beauty business.

A large beauty store may need a number of employees, who finalize payments using a cash register or contactless system. They may also work out on the shop floor. Remember that customers have options. Customers can buy beauty supplies from a number of outlets. But they’ve chosen a beauty supply store because they expect to interact with knowledgeable people.

10. Look Into Insurance Policies

The types of insurance you’ll need include: basic/general, liability and health (personal) insurance. If you have employees you’ll need workers’ compensation insurance.

An insurance broker can steer you to the policies that business owners need.

11. Research Inventory

Most buy inventory from a beauty supply distributor. Some individual manufacturers may send you samples. That will help you reduce costs.

What to buy, and when? How can you keep costs down? You’ll need to plan a few months out to make sure you have stock as needed, especially seasonal products.

As you research products, check the profit margin on each. The average for the industry is 40%, but some profit margins are higher for beauty supplies.

Obviously, inventory will be one of your biggest costs. Right behind that is setting up your store.

12. Make Your Beauty Supply Store Presentable

This is not an area to cut costs. You want your customers to enjoy shopping in your store, finding it easy and pleasant. Here are some general rules to follow:

• Revolving main focus display – For example, is it prom time? Arrange appropriate cosmetics and hair care at the display. Summer is here? Lotions for skin should be front and center. School shopping? Time for accessories.
• End caps – End caps, which are the displays at the end of aisles, should also revolve as places to direct customers focus.
• Try and Buy Settings – Trying new products is a key part of shopping at beauty stores. Provide small samples that customers can try and keep, using those items to set up a sale.

Creating an In-Store Experience

Beyond a visually appealing store, focus on creating an immersive in-store experience. Offer personalized consultations, product demonstrations, and interactive displays. Train your staff to provide exceptional customer service, making each visit memorable. This approach not only attracts customers but also encourages repeat visits.

13. Consider Investing in Point of Sale Software

Truly, this is not just a consideration when you’re weighing costs. Point of Sale software can do much more than tabulate a sale.

Choose software that can accept various methods of payment and also calculate inventory amounts as items are sold.

14. Market Your Business and Build Up a Customer Base

In addition to quality and pricing, you must excel at customer service. Customer service is the way to build up your customer base.

You can also:

• Send introductory letters to business leaders
• Place ads in various media and social media
• Use a website to announce discounts and sale themes
• Offer special promotions, such as prom specials, makeovers, seniors’ days and discounts for referrals.

Don’t be afraid to take your show on the road. Get a booth at any type of area show or convention. Offer toiletry bags, or theme gift bags.

How to Open a Beauty Supply Business Online: 15 Top Tips

1. Create a Mission Statement

An online beauty store is an eCommerce store. As such, its mission statement will mirror a mission statement for a physical store.

However, there’s a key difference. You want to take steps to make it easier for shoppers to order products and have them delivered to their homes. In your mission statement for your business, explain why you want to do that.

2. Decide on a Niche and Beauty Supply Products

Selling online means that you have to consider the items you sell in another way – how easy can the items be shipped?

Many beauty items, especially hair products, are liquid. They can break or freeze during shipping. As your choosing the brands to carry, ask the suppliers questions about the best practices for shipping the product. Make choices with an eye to establishing your brand identity and the focus of your business.

Understanding the Beauty Industry Trends

The beauty industry is dynamic, with evolving trends shaping consumer demands. Staying abreast of these trends is crucial for a beauty supply store’s success.

This includes keeping an eye on emerging product types, such as organic and cruelty-free options, and technological innovations like augmented reality for virtual makeup trials.

Adapting your product range to include trending items and capitalizing on popular beauty movements can position your store as a go-to destination for the latest in beauty.

3. Know Your Target Market

Your customers are people who are seeking convenience, and that’s where to tailor your marking efforts.

Many salons order from large distributors. Although it’s hard to compete with operations of that size, you can level the playing field with superior customer service.

4. Research Your Competitors

What are the brands that your competition sells? Are there certain lines of cosmetics or hair products that are commonly sold? Can you stand out by offering a different type of similar product?

5. Research Online Business Models

Having an online presence for your beauty supply store is vital. Not only does it allow you to reach a wider audience, but it also provides multiple revenue streams that complement your brick-and-mortar establishment.

As you think about setting up your online store, consider which business model aligns with your goals, resources, and vision for your business. Below is a breakdown of some popular online business models that entrepreneurs often consider:

Business Model	Overview	Pros	Cons
Dropshipping	List products without inventory. Purchase from third-party when ordered and have them ship directly to the customer.	– Lower startup costs – Reduced risk of overstocking. – Variety of products without major investment.	– Lower profit margins. – Potential shipping/supplier issues. – Less control over product quality and fulfillment.
Wholesaling from a Warehouse	Purchase in bulk, store in a warehouse, and ship from there upon orders.	– Better control over inventory and shipping. – Higher profit margins. – Exclusive deals or bulk discounts possible.	– Higher upfront costs. – Risk of unsold stock. – Need for efficient inventory management.
Manufacturing	Produce your own line of products and sell them.	– Control over product quality and branding. – Potentially higher profits if product becomes popular. – Unique selling proposition with exclusive products.	– Significant startup costs. – Complexities with quality control and regulations. – Scaling challenges.
White Label	Rebrand products from manufacturers and sell under your brand.	– Faster market entry than manufacturing. – Offer products without manufacturing complexities. – Control over branding and pricing.	– Dependence on the original manufacturer for quality. – Potentially lower profit margins. – Possible market saturation with similar white-label products.

6. Write a Business Plan

Your business plan should include the type of products you will sell and how you’ll ship them. It should also include information about plans for future growth.

7. Decide on a Starting Budget and Consider Business Costs

You can keep costs down as you begin your online beauty store by focusing on one type of product. That’s important as you establish your brand and work to build traffic to your website.

8. Buy the Perfect Domain Name for Your Beauty Supply Business

The perfect name for your website sets the stage. You’ll use it everywhere, not just on the website. It will be a marketing tool. Buying a domain name may be one of your significant start-up costs, but you’ll be paid back tenfold.

It will be on boxes, business cards, Facebook and invoices.

Your chosen name should lend itself to a logo, as an aid to marketing.

9. Decide on a Beauty Supply Store Theme and Logo

The store theme and logo should tie to your business name. Don’t limit the potential growth of your beauty business by focusing on one aspect of the industry.

For example, using a logo depicting nail care tells people that those are the products they can expect to find from your business. Unless you do want to focus on one aspect of the industry, keep it more general.

10. Sort Out the Legal Stuff and Register Your Business

In the beauty supply industry, the majority of people opt to form a limited liability company. That’s because an LLC protects an owner or owners from personal liability.

11. Purchase Business Insurance

You’ll need general business insurance and general liability insurance, as a minimum. Other required insurance depends on how you’re doing business – such as whether you’re owning or leasing, or hiring employees, for example.

12. Research eCommerce Platforms

You’ll be amazed at what an eCommerce platform can do for you. eCommerce platforms are software that helps sellers manage their business. They often include accounting and inventory management.

Some of the leaders in the industry are Zoho Commerce, Shopify and Big Commerce.

13. Create an Amazing eCommerce Website

This is an important step in marketing your business – so important that outsourcing is a great choice. The best sites are those which make it easy to find products, order them and pay for them. The best sites are worthless if they’re not linked to search engines.

Navigation

A search is a key part of navigation. You should have a menu with a table of contents that makes it easy to find products by searching with keywords.

Homepage

The home page includes your business location and contact information for customer service. You should include a contact page, and also options for contacting you by phone or email.

About Page

This page is about you, your employees and the type of products you sell.

Content and Blog Posts

Descriptions of products and blog posts should be short. Whenever you find an article about a product or technique that you like, provide a link to the article. An article can answer a question, or create buzz about a new product.

Site Authority

This is the strength of a domain. In short, it’s an “authority” that gives your business a preferable position from someone using a search engine.

14. Market Your Site

For your beauty supply store to thrive in the digital landscape, you need to have more than just an online presence; you need effective marketing strategies to gain visibility and attract customers.

Social Media

Harness the power of platforms like Instagram, Facebook, Pinterest, and TikTok. When you come across an interesting article or relevant beauty news, share it on these platforms to engage your audience.

Establishing an ongoing blog where you provide beauty tips, product reviews, and industry insights can boost your brand credibility. Moreover, actively commenting on other industry-related blogs can increase your brand’s visibility and encourage traffic back to your site.

Remember to always include your business name for brand consistency.

Search Engine Optimization (SEO)

While mastering the art of SEO can be a daunting task, it’s a crucial one if you want your store to appear in relevant search results. SEO ensures that your business stands out when potential customers search for beauty products or services like yours.

While you can learn the basics and implement them, employing a professional can ensure you optimize every aspect of your site, from meta tags to content, enhancing your store’s search engine ranking

Content Marketing

Engage your target audience by creating and sharing insightful online material. In the beauty industry, tutorials demonstrating how to use a product are immensely popular and can establish your brand as a knowledgeable leader in the space.

Craft blogs, videos, and infographics that provide value to your audience, and they’ll likely return to your store for more insights and, importantly, products.

Influencer Marketing

Influencers can significantly amplify your brand’s reach. These are individuals with a substantial online following who can sway their audience’s purchasing decisions.

By collaborating with influencers who resonate with your brand’s ethos, you can craft authentic content—whether it’s blogs, social media posts, or videos—that guides their vast number of followers directly to your store.

Digital Marketing Strategies for Beauty Supply Stores

In today’s digital age, effective online marketing is key to reaching a wider audience. Develop a strong social media presence, optimize your website for search engines, and consider email marketing to keep your customers informed and engaged.

Utilize analytics to track the performance of your digital campaigns and adjust your strategies for maximum impact.

15. Build Up Your Customer Base and Start Making Sales

Growing and retaining a customer base is pivotal for the success of your beauty supply store. Here’s how you can continuously attract and engage potential and existing customers:

• Engaging Promotions: Offer timely discounts, bundle deals, or buy-one-get-one offers. Seasonal promotions, such as holiday discounts or summer sales, can attract a flurry of customers.
• Loyalty Programs: Introduce a loyalty or rewards program. Customers can earn points for every purchase, which can be redeemed for products or discounts in the future. This encourages repeat purchases.
• New Product Launches: Regularly introduce new products or limited-edition items to keep your inventory fresh and intriguing for your customers.
• Educational Content: Share articles, blogs, or tutorials highlighting the benefits of your products, how-to-use guides, or the latest beauty trends.
• Customer Reviews and Testimonials: Encourage satisfied customers to leave reviews. Displaying these reviews on your website can act as a trust signal for potential buyers.
• Referral Programs: Offer incentives for existing customers to refer friends and family to your store. It’s a win-win situation; your customers get rewards, and you get new customers.
• Engaging Email Campaigns: Send out newsletters with updates, promotions, and beauty tips. Segment your email list to provide personalized content and offers based on purchasing behavior.
• Interactive Social Media Polls and Quizzes: Engage your audience by hosting polls about their favorite products, quizzes to determine the right products for them, or Q&A sessions about beauty concerns.
• Flash Sales: These are limited-time offers that create a sense of urgency. Flash sales can rapidly drive traffic and conversions, clearing out old inventory or introducing new products.
• Exclusive Members’ Events: Organize special events or sales exclusive to members or loyal customers, fostering a sense of community and exclusivity.

Community Engagement and Building Brand Loyalty

Engage with your local community to build brand loyalty. Participate in community events, collaborate with local businesses, and support charitable causes. This not only helps in building a positive brand image but also fosters a loyal customer base that advocates for your store.

Adapting to Changing Consumer Behaviors

The beauty industry is influenced by changing consumer behaviors and preferences. Stay flexible and adapt your business model as needed. Keep an eye on emerging trends and be ready to pivot your strategies to meet the evolving demands of your customers.

Is owning a beauty supply store profitable?

The amount of profit for a beauty store is tied to its size. A smaller store may make $5,000 while a larger store can net $200,000 and up.

How much does it cost to start an online beauty supply store?

This also varies as to the size of your line – the amount of inventory you’ll hold. A typical start up cost for a small operation is from $2,000-5,000.

Can I open a beauty supply store with no money?

Good question, and it’s been done. If you’ve been involved in the business with a proven track record, you may find it easy to raise capital. You can raise capital by tapping your friends, family and business associates. Or you can raise capital by going to a lender.

You don’t need a wealth of capital to start. A well-written business plan will be a valuable asset for a person. Suppliers may extend credit.

How much does a beauty supply store owner make?

Both a store owner and an online seller should begin to turn a profit in 4 to 6 months. How much depends on overhead – whether you own or lease, and the cost of your insurances, utilities and staff.

At a minimum, online or in-store, a beauty supply store owner should net from $35,000 to $70,000 annually. The amount you make in a physical location can be tied to where you are – in a big city location you can make from $100,000 to $300,000 annually.

You can make as much as a beauty supply store with online sales. Remember, when the actual stores are closed, you are still taking orders online.

Image: Depositphotos

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