Check here the step by step how to set up a cosmetics store and be successful in business. Among the possibilities of acting in the trade, the cosmetic branch is one of the most successful. The reasons that make the cosmetics store an extremely profitable branch are diverse: increased beauty care, low value of the merchandise, variety of products to be worked, and good profit margin, among others.
Most new entrepreneurs when setting up a cosmetics store think that their target audience will be just women. For these, there is good news: it is much broader and more diversified. You can sell both for women and men, who are attending more and more stores in the industry for news. There are also professionals in the area of beauty that need material, such as manicures, hairdressers, make-up artists, beauty line photographers, beauticians in general, clinics, among others.
To set up a cosmetics store it is also important to know that the business is made of trends, and therefore highly renewable. The entrepreneur who set up a cosmetics store and stays connected to new trends will always make a good profit because the demand for new products is per phase, however, there is always a new phase popping up and new products coming up.
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Build A Cosmetics Store
There are several possibilities to choose the business with the cosmetic theme. You can open a franchise, like, among others. You can also resell just one product, one authorized for a specific brand or set up a store of diverse products aimed at aesthetics.
Various Brand Products
The third option to set up a cosmetics store tends to be the most profitable since it is possible to work with various brand products and the customer will choose what is best for him. It is also possible to act on several trends on the shelf, thus increasing profit.
Anyway, what will determine if it is better to set up the cosmetics store or buy a franchise in the cosmetics business is the market, financial and operational analysis of the future company. For all these and other analyzes know the kit How to Open a Business.
How to Register the Cosmetics Store
Like all trade, you must choose a point, which can be bought or for rent. Ideally, you should look for a place in established shopping centers, on busy streets where people will often transit for shopping and will pass by the establishment in one form or another.
Business Finance and Location
After checking the financial viability of the business, choosing the location and contracting the rent, one of the first steps to set up a cosmetics store is to register your business premises before the commercial board of your city and city hall. It is necessary to find a reliable accountant who will take care of the legal procedures to register the legal name of the company, which will be present before the IRS, and the fancy name, which will be shown on the facade, advertisement and invoice. See more on how to start a business.
It is important to register the fancy name too so that another cosmetic store does not use the same name. It is common for customers to go to other establishments because they confuse the name of the store, a strategy some merchants use in bad faith to attract customers.
After you leave the register in the business board and Revenue, you will have your legal name and the possibility of having an invoice, extremely necessary to customers. The ticket can only be made after the exit of the CNPJ, the registration of the legal entity. The meter also takes care of these steps. The opening value varies according to the city, size, and number of employees.
Structure to Build the Cosmetics Store
In choosing the commercial point to set up a cosmetics store you do not need a place with a lot of structure. You need shelves that can be either boys or singles, a box and a glass showcase so that the products are exposed for those who pass in front.
Cosmetics Store Size
Exhibitors can be purchased simply or ordered from woodworkers at well-priced prices compared to shops that sell ready-made. The sign can be luminous or printed banner, which is well over, an average R $ 150 reads in size of two meters in length by one and a half meters wide.
Cosmetics Store Lighting
Lighting is a very important detail when setting up a cosmetics store. As it is working with beauty products, it needs to be well lit so that customers can read carefully the packages that have small print. Most customers of this type of market have their favorite brands, but also look for innovations and always observe well what they are taking. See innovative ideas.
Cosmetology Shop Products
The variety of products in the beauty-oriented trade is great so you can make a pretty good store. The main items you should have in a cosmetics store are products for hair, nail, body and makeup. This way the variety is very wide and can fill the store quietly.
Every cosmetic store needs to have the basics: shampoo, conditioner, combing cream, moisturizing, paints, dyes and tip repair. Already with these items, it is possible to fill a store.
To sell such items the idea is to get in touch with the brands and buy in bulk at the wholesale price, which comes out well more than buying in-unit. The average profit placed on products is 40% per item and eventually lower profits to make promotions.
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Another way to increase profits by setting up a cosmetics store is to sell professional lines, aimed at beauty professionals such as hairdressers and makeup artists. Such professionals use specific hair products to be used in the salon. They are bought directly from the manufacturers, who send representatives to offer the products and also give good market price suggestions.
The most popular are nail polish, cotton, remover, sandpaper, pliers, toothpicks, and retractors. They are cheap and well sought after products. Since the competition is also great with haberdashery, the idea is to invest in a wide variety of nail polish brands that draw the attention of both manicures and users.
Investment To Set Up A Cosmetics Store
The average initial investment to set up a cosmetics store is R $ 30,000. It can be much less if the size is smaller, but not much different from that. It is necessary to take into account that the variety of products is large and more and newer, so it is necessary to have at least R $ 5 thousand in cash to wait for the emergence of new trends.
How much should each product have in stock?
Knowing the proper amount of initial stock is not very easy, especially when setting up a cosmetics store that has hundreds of products. On the other hand, if you make proper planning you will surely reach the minimum initial value.
To determine the products for cosmetics store and the amount of inventory that will need to set up the cosmetics store you should take into account:
- The sales forecast for the first period;
- The time spent on the purchase order to the delivery of the products;
- Turn each product into stock.
- What is the Diversity of Stock Needed?
Visiting Other Cosmetic Stores
Already the diversity of stock can be found visiting other cosmetic stores. You could, for example, visit stores in other cities with the same profile of your city and try to talk to the owner. Since you will open the cosmetics store in another region, it will likely give you the important information about the diversity of the inventory, since you will not be competing directly with it.
Finally it cosmetic stores necessary to make a complete planning of the cosmetics stores to make a forecast closer to the real. At first glance, it may seem a bit complicated, but the more you plan, the more you will know your future business and the more chances you will succeed. Good luck.