How to start a skincare business in 2022

December 29, 2021

Everything you need to know about how to start a skincare business in 2022

Starting your own beauty business is difficult, but not impossible. The first and most important thing to decide is whether you’d like to sell products or services. For example, if you want to sell products, you also need to choose whether your products will be natural and locally-made, or whether you’d like to use private labeling.

 On the other hand, if you’d like to open a beauty clinic or a medical spa and provide services to your customers, you should see what type of treatments you’d like to offer. 

However, this is only the beginning. Before you set out on any business ventures, it’s important to plan and create comprehensive strategies to ensure that everything goes to plan.

Everything you need to know about how to start a skincare business

The beauty and cosmetics market is very harsh and competitive, which is why you should find a way to make your business stand out in the sea of others. Find your most appealing selling point and use it for your marketing and advertising efforts.

For example, since natural products are in-demand and you want to sell organic stuff, make sure to get that message across to your audience. Social media channels like Instagram and TikTok have been game-changers for small businesses.

You can use them to find information on how to start your own business, but also as a marketing channel to reach a large number of potential customers. However, a lot more goes into running a skincare business. So, these are the most important aspects to take care of:

Market research

Market research is also known as competitor analysis. This is one of the most important steps regardless of the industry or business type. By performing market research, you’ll know exactly what you’re up against and who your competitors are.

You can gather all sorts of information about different interest areas, such as how they handle marketing, how they target the audience, how they boost sales and a lot of other interesting stuff. Make sure to use marketing and SEO tools to analyze your competitor’s websites to see which keywords they rank for, how much traffic they have, etc.

Check their social media channels to see which ones are the most effective for reaching customers and selling products. You can gather information about their suppliers, product ingredients, packaging, and a lot more.

You can either do market research on your own or hire experts to help you out. If you’re not so well-versed in marketing and analysis, hiring a company might be your best bet since they know exactly what to look for. Market research will give you all the ins and outs of the industry and show you how to market your products.

Not only that, but it also helps you learn from other companies’ mistakes. So, instead of doing everything from scratch and learning by trial and error, you can cut some corners and save a lot of time by learning from others’ mistakes or successes.

Decide which products to sell

Organic skincare has become very popular within the community. People have become more aware of what they’re putting on their bodies, which is why everyone is avoiding harsh chemicals and mass production.

While it may be tempting to start pumping out products as soon as you start your business, we strongly advise you not to. Because you’re a new brand, you need to be careful with your money. Launching more than 3 products during your first launch is a signal for trouble. Not only will it be difficult to produce and nail all those products, but it will also be more difficult to do product testing.

Instead, we advise you to start off slow and easy – pick 2-3 products max, work on their development and testing, and launch them only when you’re fully satisfied with the product and packaging. Analyze your customer’s behavior and see how they interact with the product. Give samples to your friends and family and ask for honest feedback.

Optimize and improve the product until you’re fully satisfied with what you’ve got. This is probably the trickiest part of the process, but it’s important to do it right since it dictates the rest of your journey. This step goes hand-in-hand with working with suppliers, which is what we’ll discuss next.

Line up suppliers

Suppliers are the key to product creation and management. There’s a lot that goes into creating a product or providing services. For example, if you want to create a new product, here’s what you need to consider:

  • Sourcing high-quality raw ingredients
  • Working with manufacturers and product designers to create the packaging and formula
  • Working with shipping companies who will handle shipping, tracking, and delivery
  • Working with packaging companies who will pack the shipments and ensure that they arrive at your customer’s doorstep untouched

If you want to open a service-based beauty business, you need to consider how you want to source your equipment. There are so many different brands of lasers and other beauty tools and treatments, so choosing the right one will directly impact how well your business performs.

Stay clear of sketchy suppliers – there are so many greedy sellers who provide low-quality services. Always consider multiple suppliers, check their wholesale prices and offers, and settle on the one who offers the most value for your buck.

Develop a pricing strategy

You can’t start a skincare business without developing a pricing strategy. Once you’ve decided on your budget and the type of products you’d like to sell, it’s time to deal with the pricing. There are a couple of things to consider for this step:

  • Do you want to have a luxury or drugstore brand?
  • How much do your biggest competitors charge for related services and products?
  • How many products do you need to sell to leverage the money spent on production?
  • How fast do you want your business to become profitable?
  • How elaborate do you want your packaging to be? Custom molds are more expensive than generic ones.

There’s a lot that goes into devising a proper pricing strategy. You also need to think of ways to upsell your products. For example, you can promote product bundles to increase revenue, but also get rid of stock as soon as possible.

Then, you need to compare the production costs to the final product price. Is the payoff good? Ideally, you want your margins to be good enough to earn money and support your business, while still remaining comfortable enough so that your customers can actually afford the product.

Develop a marketing strategy

There’s no doubt that marketing is probably the most important aspect besides product development. Thankfully, you can utilize tools like social media to maximize your reach and market your skincare product to a wider audience.

Platforms like Instagram, Facebook, and TikTok are especially good for marketing because they provide you with detailed analytics and allow you to target your audience more precisely. These are the most important marketing tools and methods you should utilize:

  • Content marketing – write blog posts on websites to promote your product and service, but also to improve your website’s authority
  • Social media campaigns
  • Influencer marketing
  • Podcast appearances
  • Traditional media – TV, radio, advertisements, local newspapers, and publications
  • Trade shows and fairs
  • Branding – brand logo, mission, ideal customer, visuals, etc.

Choose a location

Choosing a business location is important because it impacts the way you run your business. Bear in mind that different countries have different laws and regulations. So, it’s important to be careful when choosing a base for your company.

Another aspect to consider is whether you’d like to rent office space and facilities, or work from home. Doing everything from home is great and cost-effective in the beginning stages of building your business. However, as the customer pool increases, you will probably have to move to a bigger space that will be equipped to handle all your shipping and customer service needs.


Once you’re ready to get your business up and running, it’s time to launch your skincare brand. Post content across all your channels talking about the launch date, set a countdown timer, and wait for it to hit zero.

As soon as everything launches, start analyzing customer behavior. Ask your friends, customers, and colleagues to tweet about the launch. Encourage customers to post screenshots of their orders in return for a follow or a repost because this acts as social proof and shows other interested parties that people are loving your products.

Gather as much information as possible and ask for customer feedback as soon as their receive the product. If something goes wrong – don’t fret. Remain calm and handle the issues at hand. Make sure that customer support lines are up and running, in case customers have questions about products, shipping, or anything else.


Owning and running a skincare business can be very lucrative. Being persistent is the key to success. You’ll probably face some challenges along the way, but that’s what makes you a better business owner. Learning from your and others’ business mistakes is imperative and it’s an unavoidable part of every business venture.

Lastly, always stay true to your branding. Branding is what separates you from the rest of the competitors and it’s what your customers will remember you by. Work hard, be diligent and we promise that it will pay off in the long run. There’s nothing better than being your own boss and helping your customers improve the quality of their lives.

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