The desire to look good is one of the few constant characteristics of the society, which is exactly why a cosmetics business has never seen a bad day. There are dozens of possible cosmetics business ideas, from reselling makeup to making your own products. Find out how to start a cosmetic business in Nigeria right now!
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1. Choose your type of cosmetics business
Unless you plan to invest millions of naira into an all-encompassing cosmetic business, you need to decide what kind of cosmetics you want to deal with – a makeup business plan will be from an organic cosmetics business plan. Today you can choose from 5 types of beauty businesses:
- Skin care. Every woman in Nigeria buys a lot of skin care products, and with numerous types of specific products for specific needs, you can build a successful business in this branch.
- Hair care. This type of cosmetic business is targeted at both men and women. Shampoos, conditioners, oils, styling products, hair accessories, colouring products, extensions – there is so much you can sell!
- Makeup. This is probably the most diverse branch of cosmetics. With hundreds of brands to choose from, from super affordable to luxury ones, and with so many different products, you will always have something new to offer to your buyers.
- Toiletries. Any Nigerian house cannot be imagined without soap, toothpaste and toothbrushes, shower gels, deodorants, toilet paper, and shaving products, and that’s exactly what you can sell.
- Fragrances. This is a relatively narrow branch of cosmetics and one of the most expensive ones to get into, but there are also many opportunities to attract loyal customers who will become fans of your products.
2. How to start a cosmetic store: step by step guide
Cosmetics is a serious business that requires a serious approach, and here are the must-know steps to creating your own cosmetic business.
i. Write a business plan
Every good business starts with a business plan, and cosmetics is no exception. A thorough cosmetic shop business plan will help you learn your business better, from the study of competitors to projected revenue.
If you’re not sure how to write a cosmetics business plan, you can find a cosmetic business plan sample online. At this stage you will also need to get your startup capital ready: you’ll need about ₦500,000 to launch a business, although a smaller-scale shop can be opened for ₦300,000.
ii. Register your business
Not every business owner in Nigeria chooses to register their business, but becoming an official entity will increase your credibility in the eyes of the customers. Register your business at the Corporate Affairs Commission of Nigeria – you can even do it online!
iii. Choose your location
Good location is key for a thriving cosmetic business. Unless you’re planning to learn how to start a cosmetic business at home, you’ll need a location with plenty of foot traffic: choose areas near markets or business centres. Invest in visual aids, so that your store is perfectly visible from any direction.
iv. Buy your products
As a novice cosmetic shop owner, you have several options for buying products. Small-scale shops usually buy from distributors, who will sell you even the smallest quantities of the desired products. If you’re aiming for a bigger cosmetic business, you can become a distributor yourself and buy directly from the manufacturers at lower prices.
v. Decorate your shop
The cosmetics business is all about the appearance, and the same goes for your store. In order to attract the customers, the design of your shop needs to be modern and appealing. Visiting your store needs to be a pleasant and fun experience for the customer.
vi. Hire the staff
Even a small cosmetics shop requires at least several members of the staff: two salespeople, a stock manager, a cleaner, and a cashier. If you want to make visitors love your place even more, you can hire a makeup artist who will do makeup for free to the customers who had made a purchase.
vii. Promote your business
Visual ads in the streets and newspapers are great, but nothing beats the internet as the most effective tool for promoting your business.