Cosmetics business is currently one of the exciting and competitive business fields. With a large young population in Vietnam, this is really a potential land, with an increasing demand for beauty care products.
Aware of this great opportunity, many young people have made careful preparations to be ready to participate in the cosmetics trade or open a retail cosmetic store. They are not only fully equipped financially, but also invest continuously in taking courses in cosmetic industry expertise and knowledge of running their own business model.
How about you? Are you confident enough to open your own retail cosmetics store? Or are you still wondering, don't know what the cosmetic business needs and where to start?
Don't worry because soon we will immediately share 10 steps of a successful plan opening cosmetic store retail.
Simple cosmetic business plan with 10 steps.
1. What cosmetic products and products will you sell?
If you want to do business, you have to have something to sell, right? This is the stage we think you need to consider from the very first time your cosmetic business idea comes up. Selling Which cosmetics are good? What cosmetic business should be profitable? It can be make-up, lip balm, sunscreen, lotion, cleanser...
On the market today, there are countless domestic and foreign cosmetic brands, but never assume that you will embrace all these brands to sell cosmetics, especially if you do not have much experience. in this field.
Before deciding which cosmetic products and brands to sell, take a survey to find out the general beauty trends, the business market, the cosmetic stores around the area you will be opening. get the general picture. From there, you can imagine what it takes to open a cosmetic store, the list of products that will be the main market exploitation.
At the same time, according to cosmetic business experience, you may not know that some cosmetic brands do not allow any unit to sell products bearing their brand name, unless it is an authorized dealer or stores under their management. Therefore, you need to carefully study the information to avoid conflicts of law
2. Make a detailed cosmetic business plan table
Opening a successful cosmetics business requires a detailed and appropriate business plan.
Typically, a business plan to open a cosmetic retail store will include: experience; target; target customers; proposed cost; advertising marketing plan; analysis of direct competitors, paste further; Store expansion plan…
You might think, "I don't need to do such a long, detailed plan because I'm in business for myself. Everything is already calculated in my head".
However, do not be mistaken. When entering the real cosmetic sales activity, there will be a lot of work that requires you to be ready to deal with. Without such a clear plan, the risk of you going "wrong direction" compared to the original plan and goal is extremely high.
In addition, this is considered evidence that you know what you are going to do, your chances of success are high or low, and it is also easy to receive financial investment from relatives or friends.
Simple cosmetic business plan with 10 steps.
3. Identify the target customer
Not only the cosmetics business, but when making a business plan for any industry, the first thing that you need to think about is who your target audience is, how their shopping habits are. , thereby deciding the product line, business location as well as the appropriate level of investment capital.
For example, your customers are businessmen or office workers, you should choose high-end cosmetic brands for business. And if the business object is students, you should sell cheap cosmetic lines, handmade cosmetics suitable for young people's pockets. This is one of the suggestions for an effective cosmetic business.
4. How much capital does a cosmetic business require?
How much capital does it take to open a cosmetic store? How much does it cost to open a cosmetic shop? Capital in business is always one of the important issues deciding whether you can start a successful business or not because it greatly affects the form and scale of your business.
Capital to import cosmetic products
The capital to import cosmetics is the first amount you need to pay attention to when starting to make a detailed plan for budget allocation and preparing capital for a cosmetics business. Because this is the capital that accounts for the largest percentage of the total capital. You need to consider all the capital you have to choose a reasonable import adjustment.
To minimize risks, you should choose products that are of great interest in the market at the moment. Based on the number of searches, the level of consumer interest that you choose to invest in opening a cosmetic store for.
By based on the search volume, the consumer's interest in the flow of goods will be identified. If you have a capital of about 130 to 150 million, you should spend about 70 million to import goods.
If you have a lot of capital, you will have the opportunity to invest in many cosmetic lines, diverse in models, types, imported goods, etc. to serve the needs and preferences of more potential customers. . From there, profits will also be greater.
Usually, the amount of capital you need for the first batch of goods is about 70-100 million. This is the average price for you to import goods, if you want to get more, the size is larger and the amount of goods will also increase.
How much capital does it take to open a cosmetic shop?
Cost of renting a place to open a cosmetic store
When it comes to how much money it takes to open a cosmetic store, you should never ignore the capital for the location of the store. Depending on the size and location, the rental price of the shops will vary. You need to carefully consider the amount of capital you have to choose an area to avoid the situation of choosing a location with too high rent while new goods are not sold much, which will cause a burden. Normally, the cost of renting a place ranges from 10-15 million / month and you will have to pay a deposit from 3 to 6 months in advance. So make sure you have enough money to cover this difficult time.
Capital for hiring cosmetic sales staff
If the store you open is relatively large, you need to set aside some money to hire employees. Look for young women who are experienced and knowledgeable about products to be able to advise customers well and take care of and clean the shop. Currently, the hard salary usually falls in the range of 3 - 5 million/month. In addition, to encourage employees, you can add % of the revenue. However, if your store is small, then hiring employees is unnecessary waste. But that means that you have to put in more energy and enthusiasm for your business, although the capital to open a cosmetic store has decreased a bit.
Estimated capital during operation
No matter how much capital is required to trade in cosmetics, it is impossible to ignore the capital to maintain the business. Because most of the time when you first operate in the first month, you will most likely suffer a loss, so the capital you need to spend at this time is really necessary to persevere in the first time is extremely necessary. After completing the above steps, maintaining operations is a vital factor that determines the existence of the store. Most of the stores just started business, the number of customers is small, you can suffer a loss or just to cover the costs. That's why persistence is essential in the beginning. When the capital to open a cosmetic store has not been recovered, fixed costs and incurred costs still need to be paid. Therefore, the funds are expected to be used for this purpose. In addition, you should also import new products to contribute to diversifying cosmetic lines to attract more customers. The estimated capital of about 50 million is reasonable to maintain the store business.
5. Choose a suitable cosmetic store business location
Geographic location greatly determines the success of retail cosmetics business. No matter where the location is, we recommend choosing areas with a dense population, be it a junction, a crossroads in the city center, crowded with people; the street is easy to travel, there is a comfortable parking space for customers,…
However, you must always remember that the location of your cosmetic store is only one of the factors that affect your business. Mostly, customers come to your cosmetic store because of the quality of products, enthusiastic and dedicated customer service.
In fact, there are quite a few famous cosmetic stores that are known by a large number of young people, all of which do not have a very beautiful location. All of them are located deep in the alley, many places are still difficult to move. So, if you choose a beautiful location, you already have an advantage.
6. Market research and analysis
After choosing a business location and preparing capital, you need to research the cosmetic market, survey the needs of customers, the selling price in the expected business area, and at the same time do research. competitors to be able to come up with appropriate business strategies.
From those figures, you can forecast monthly costs and profits, break-even times, effective advertising methods, etc.
If you do not have expertise in market research and analysis, it is best to find a consulting firm. They will provide you with all the research and analysis of the cosmetic market with the content you require.
Simple cosmetic business plan with 10 steps.
7. Business registration and completion of cosmetic store opening procedures
What is the procedure to open a cosmetic store? These are the questions of many of you who are intending to start a cosmetics business.
Opening a cosmetic store requires business registration. To fulfill your tax obligations, and to be protected by law, you need to go to your local business registration office to complete the procedure to open a retail cosmetic store.
Pay attention when registering a cosmetic business name, choose a short, easy-to-miss name that accurately reflects the business field of the store, which is selling cosmetics.
In addition, you should contact the relevant local authorities to apply for a number of business licenses and related procedures such as tax code, cosmetic store brand registration, etc.
8. Design, decorate cosmetic store
Before starting to design a store, you must know that your cosmetic store is targeting young people, students, students or middle-aged women with many skin aging problems. .
With young people, outstanding style, youthful colors and own taste will be a plus point for your cosmetic store. But for middle-aged customers, the color, elegant design will receive more positive feedback.
In addition, make sure the area before and in the cosmetic store is always clean. No customer wants to go to a cosmetic business that is cluttered with trash and cosmetic cartons.
In addition, in order to bring a professional image of a cosmetic store in the eyes of customers, you should equip your store with a cosmetic store management software and a set of sales support equipment including: software receipt printing, barcode scanner,...
What does it take to open a cosmetic store?
9. Hire a cosmetic salesperson
You are the manager and may not be at the store very often. The recruitment of cosmetic sales staff is a necessity. The number of employees depends on the size of your cosmetic store.
Try to optimize the number of people as possible by using sales management software, which saves a part of costs, especially in the early stages of starting a business.
10. Sales and marketing advertising
One of the most important and difficult steps in today's competitive market.
Because the store has just opened, the number of customers is not much, so you need to be proactive and actively look for customers. There are many forms of advertising such as leaflets, PR, email marketing, advertising on Google and social networks...
Depending on the type of business, you choose the appropriate advertising forms and can compete with your competitors. Besides, you should also take advantage of the relationships of friends and relatives to introduce your store, thereby gradually expanding the customer base and developing the business.
However, brand promotion is not only done when opening a store, but needs to be done regularly and continuously so that your shop always maintains its performance without being left behind.
Besides selling at the store in the traditional way. With the increasing percentage of Internet users buying goods, of course, you cannot ignore this potential sales channel.
How to sell cosmetics without spending a lot of capital and still being able to reach a large customer base and close orders easily:
Cosmetic website design to reach large online customers
Selling on well-known forums to advertise cosmetics such as: lamchame, webtretho, 5giay.vn, chottot.vn, etc.
Or better yet, you can sell on today's largest e-commerce platforms such as Lazada, Shopee, Tiki...
Using social networks to sell cosmetics: Facebook, Instagram, .. Very simply, just have a social network account, you can start a cosmetics business right away.
Depending on the size and purpose, you can choose one of three forms: Personal Profile, Sales Groups, Fanpage or apply all three above.
We hope that with 10 steps to opening a retail cosmetic store, you will have a more accurate view of the cosmetic business in the current society as well as be able to plan the perfect cosmetic business. Good luck!