So, to state the obvious, it’s going to cost some money to launch and maintain your beauty brand. You should carefully consider all methods of funding your beauty business. I am often asked by aspiring brand owners if they NEED an investor. My response- How quickly do you want to grow?
When I launched my first business, I was fresh out of college with a kindergartener and a newborn. I had no job, no money and no financial connections. I made a plan for my company and used a fraction of my tax refund to finance my basic plan. My mindset was to start with what I had and develop a business model that would support my humble beginnings. If the growth was slow, then so be it. Thankfully, I had a decent growth curve and starting with a modest investment meant that I was profitable with my very first project.
But of course everyone’s story is different. Some of you will be better served seeking an investor. One thing is for sure; companies like Birchbox didn’t become the powerhouse they are without a significant amount of money. Birchbox raised millions in private funding to get started and they were a major success story in less than one year.
So how do you make an educated decision about funding?
Take an inventory of all that you will need to launch your cosmetic brand. Include: product formula(s), packaging, graphic design work (website, logo, labeling, marketing materials), inventory of the finished product, and public relations (samples for press, full size for giveaways, event sponsorship, etc).
Study successful brands similar to yours. Find out how much they invested and how long it took for them to be profitable. If you can’t find exact numbers, make an educated guess.
Now you’re ready to ask yourself- Can I self-fund? Or do I need an investor?
Here’s to the Glam Life!