AQ£XQ`23 Steps to Start Your Natural and Organic Skincare Business

Formula Botanica

Organic Cosmetic Science School

www.formulabotanica.com

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Formula Botanica

www.formulabotanica.com

• World’s largest Organic Cosmetic Science School• 1,000+ students in over 70 countries worldwide• Our self-study courses are 100% online

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Formula Botanica

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1. Create your skincareChoose the best option for you:• Make it yourself – set up a skincare lab at

home / comply with Good Manufacturing Practice (GMP)

• Outsource production to a lab – they will set Minimum Order Quantities (MOQs)

• Buy ready-made / white label skincare – brand it with your own logo and designs

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2. Make it AWESOME• Your skincare products need to STAND OUT• Set yourself apart by considering:

A signature ingredient A signature formulating technique A signature applicator A signature packaging design A signature name A signature brand concept Your personal story behind the brand

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3. Upsell & Cross-SellDesign your skincare range by considering:• The Upsell – what is your ‘hero’ product?

Which product will you ultimately want everyone to buy?

• The Cross-Sell – how can you encourage customers to buy more than one product at once? Create a cohesive range that will encourage multiple buys.

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4. Comply with the Law• If you sell internationally, you must comply

with the laws of the country where you sell. • We recommend by default complying with the

EU Cosmetics Regulations.• The basics include:

Good Manufacturing Practice (GMP) Have your water-based products sent for a

microbial challenge test Keep batch records INCI labelling

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5. Determine your overall business goalWhat are you trying to achieve in your business?• Hobby business? ($)• Quit your job? Support your family? ($$)• World domination? ($$$)

Set yourself a realisticfinancial target and createyour business to meet that.

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6. Know your Niche• If you want to stand out, you must target a

niche. • You cannot be everything to everyone.• Think of all the different skincare niches, e.g.:

Male grooming Gluten-free Halal skincare Low carbon footprint Mother & Babycare

• Try to be original

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• Figure out exactly who you are selling to• Know their demographics – age, location,

marital status, family circumstances, spending habits, etc.

• Know their psychographics – personality, lifestyle, interests, hobbies, likes, dislikes.

• Which other brands do they like?• Try to hone down your customer profile to an

exact person so you know who you are talking to.

7. Know your Customer

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8. Create your Brand• A brand is more than just packaging and

labelling! A brand is a set of associations and perceptions that people have about you and your business.

• What makes your brand unique?• What is your brand promise and personality?• What is your brand story?• What are your brand associations? E.g. font

face, logo, colours, imagery.

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9. Packaging & Labeling• Your packaging is the first thing your

customer will see.• How does your packaging / labeling fit with

your brand and your target customer?• When choosing the packaging, consider:

Your preservation system – air-tight? How you want your customer to use your

skincare product Recycling – glass vs. plastic Weight – will you be shipping products?

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10. Money!• You will need upfront investment to start your

own skincare business. • Consider the following sources:

Your own savings Family and friends External investors such as banks,

investment angels, crowd-funding• Budget properly and make

sure you are prepared forcontingencies

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11. Manufacturing • Depending on your business goal, you may

wish to outsource manufacturing. • Consider what you love doing most in your

business – if it’s formulating, then you may wish to keep this in-house.

• Consider Minimum Order Quantities (MOQs) with external labs as these will be high.

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12. Your Retail Strategy• Where will you be selling? Where does your

target customer hang out?

• Think about where your brand fits best and think about the business you’re creating.

Online vs. Offline

Retail vs. Wholesale

Market stall vs. Department store

Health food store vs. Luxury boutique

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13. Pricing• You’ve got three prices you need to set:

Your retail price – how much will your customer pay?

Your cost price – how much does it cost you to make each product? (including materials, labour, packaging, labeling)

Your wholesale price – how much would another shop pay you for your product? (typically this is 50% retail price)

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14. Your Website• Make your website beautiful and easily

accessible• Most people navigate away from a site within

a matter of seconds – hold their attention• Consider the following points:

How easy is it to find your shop? Show your customer who YOU are Make sure your website follows your brand Have a newsletter subscription box in

prominent places on the site

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15. Generate Web Traffic• With so many websites in Google, you need

to generate traffic to keep people coming to your site

• Have a blog and be consistent in how often you publish on it

• Use your blog posts to provide information that your target customer wants to read

• Share your blog posts widely to generate interest and relevant traffic

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16. Social Media• Great place to have two-way conversation

with your customer• Choose two social media channels where

your target customer is likely to hang out• Don’t overwhelm yourself by trying to have a

presence on every social media channel• Be consistent in your updates and speak to

your target customer there• Use social media to drive more traffic to your

website

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17. Marketing• Marketing is not selling• Marketing is about creating the value around

the sale and tapping into your customer’s ‘pain points’ and ‘pleasure points’

• You have an advantage over thebig corporate players becauseyou can have a conversationwith your customers

• You need a mailing list – regular email marketing is key

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18. Advertising• Big corporate cosmetics brands still mainly

advertise in glossy magazines • As a small player, you can target social

media which is also cost-effective (Facebook advertising can cost as little as $1/day!)

• Shop around to get discount vouchers• By using social media, you can target your

customer with their exact demographics and spending habits.

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19. Media & Bloggers• It isn’t easy to get picked up by the media, so

need to be clever if you have no PR budget• Forge relationships with beauty bloggers –

get to know them, talk to them, read their blog• Follow journalists on social media channels

such as Twitter• Follow hashtags such as #journorequest• Sign up for free trials on beauty media

websites where you can connect with journalists and bloggers

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20. Certification• If organic certification is right for you, then

choose the right scheme for your brand• Read their requirements carefully – they will

impact your ingredients, your manufacturing processes, your packaging, your preservation strategy and more.

• Will likely be expensive!• Different types of certification:

organic, natural, vegan, etc.

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21. Your BIG LAUNCH• Most skincare entrepreneurs make their

biggest mistake by not launching their brand• Need to make LOTS OF NOISE and TELL

THE WORLD that you’re here. You cannot expect your customers to find you otherwise.

• Set up a campaign on social media, your newsletter, your website and your blog.

• Offer some kind of bonus, offer or freebie to draw people in for the launch and get them engaging with you and your brand.

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22. Your Career• You don’t have to limit your career to making

skincare only. • Think of other ways to supplement your

income, particularly when you are first starting out: Host skincare making workshops in your

community (position yourself as an expert), Formulate for others, Offer consultancy work, etc.

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23. Be Realistic• 1 in 2 startup businesses fail in first 3 years• Most failed entrepreneurs agree that their

single biggest mistake was not finding out whether there was a demand for their product

• Create a demand before you create a supply• Don’t make a product for your skin only and

expect everyone else to love it• Do market research – set up a small testing

group to test your samples• Do your homework and plan properly

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Find out more about Formula Botanica, the Organic

Cosmetic Science School

www.formulabotanica.com

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