lip balm business plan pdf

Lip Balm Business Plan Template & Guidebook

How to write a lip balm business plan in 7 steps:, 1. describe the purpose of your lip balm business..

It also helps to include a vision statement so that readers can understand what type of company you want to build.

2. Products & Services Offered by Your Lip Balm Business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your lip balm business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

Target market

Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a lip balm business.

To run a lip balm business, you will need a few key pieces of equipment, supplies, and permits. These include:

5. Management & Organization of Your Lip Balm Business.

The second part of your lip balm business plan is to develop a management and organization section.

6. Lip Balm Business Startup Expenses & Captial Needed.

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a lip balm business varies based on many different variables, but below are a few different types of startup costs for a lip balm business.

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your lip balm business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

Here are some steps you can follow to devise a financial plan for your lip balm business plan:

Frequently Asked Questions About Lip Balm Business Plans:

Why do you need a business plan for a lip balm business, how to write a business plan for your lip balm business).

To build a business plan for your lip balm business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written lip balm business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a lip balm business plan yourself?

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Lip Gloss Line Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Beauty Care Sector

Do you want to start a lip gloss company and need to write a plan? If YES, here is a sample lip gloss line business plan template & FREE feasibility report.

It is a known fact that lip gloss, lipsticks and similar products are used in all parts of the world and of course those that are in the business of producing these products are known to generate sales if the business is well – managed.

As a matter of fact, economic downturn hardly affects the usage of lipsticks, lip gloss and similar products because it is a commodity that plays a major role in the beauty world.

If you are however thinking of starting your own lip – gloss production business, then you must be ready to learn the ropes. No doubt it requires loads of research, experience and huge capital base to start off.

If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. Below is a sample lip gloss line production company business plan template that will help you launch your own business.

A Sample Lip Gloss Line Business Plan Template

1. industry overview.

Lip gloss production business involves preparing, blending, compounding and packaging both cosmetic and therapeutic lip products. The products they produce are lipstick, lip gloss, lip stains, lip liner and lip balm. Lipstick is applied to the lips as part of makeup basically to boost lip color, texture and often hydration.

Sheer lipsticks usually contain a significant amount of oil, with less wax and pigment than matte lipsticks, making them more translucent. Lipsticks with oil components must be reapplied many times so as to make the lips look shiny and glossy.

The lip gloss is used all across the world by both male and female. It is fact that there is no cultural barrier to the usage of lip gloss.  As a matter of fact, doctors do recommend that some patients with dry lips should make use of lip gloss.

In the last half decade, the lip gloss production business has experienced elevated demand, most especially from premium level goods, in line with increased consumer spending and the overall growth of the economy. Purchaser preferences and new product introductions have also contributed to boosted revenue and profit.

Operators flooded the industry over the period, as purchaser demand for brand name and value-added products increased. An increasingly health-conscious customer base is becoming progressively aware and sensitive to product ingredients.

Consumers are increasingly concerned with using products that are chemical-based or have traces of metals or animal by-products, pushing companies to invest in research and development to offer new natural and safe products.

Statistics has it that in the united states of America alone, there are about 68 registered and licensed lip gloss and lipsticks manufacturing companies responsible for directly employing about 3,783 people and the industry rakes in a whooping sum of $4 billion annually.

The industry is projected to grow at a 4.7 percent annual growth within 2011 and 2016. In the United States of America, Estee Lauder is the leading brand in the lip gloss and lipstick production business. Their products can be found in every nooks and crannies of the United States and also in most countries of the world.

Lip Gloss was introduced to the public in 1930 by Max Factor Company and Clear lip balm is one of the most popular lip gloss products in the modern market. A survey conducted in 1998 amongst American women showed that 32 percent of them owned more than 20 lip gloss and lipsticks.

As a matter of fact, lip gloss and lipsticks became widely popular among female population after the rise of black and white movies in Hollywood. So also, 80 percent of American women regularly wear lipstick and over 25 percent won’t leave house without wearing it.

Despite the fact that the lip gloss production business appears to be somewhat saturated in the United States of America, there is a positive outlook for the industry especially when it comes to leveraging on the changing trends in technology and beauty cum fashion.

Entrepreneurs are encouraged to go into the business because of the vast opportunities that are available in the industry.

One of the major factors that encourage aspiring entrepreneurs to venture into lip gloss production business is the fact that there are readily available markets for the products. Despite the fact that there are stiff competitions amongst lip gloss manufacturing companies, if you are able to carve a niche for yourself, it won’t be too difficult for people to accept your products.

The lip gloss line production business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale selling your products within your city or state or you can choose to start on a large scale with your products spread across your country.

2. Executive Summary

Kiss Daniela® Lip Gloss Production Line, LLC is a licensed lip gloss production company that will be located in an industrial area in Lexington, Kentucky.

We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.

We are in the cosmetic & beauty care manufacturing industry to produce lipstick , lip gloss, lip stains, lip liner and lip balm et al. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our products the opportunity to be part of our success story.

We are aware that there are several lip gloss lines scattered around the United States, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Lexington – Kentucky and the United States of America.

Much more than producing quality and safe lip gloss and related products, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our product.

Kiss Daniela® Lip Gloss Production Line, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory.

We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors). We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Kiss Daniela® Lip Gloss Production Line, LLC is owned by Daniella Murphy. Mrs. Daniella Murphy who is the Chief Executive Officer of the Company is a graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA) from Stanford College.

She has over 12 years’ experience working in related industry as a senior manager prior to starting Kiss Daniela® Lip Gloss Production Line, LLC.

3. Our Products and Services

Kiss Daniela® Lip Gloss Production Line, LLC is going to run a standard and licensed lip gloss production company whose products will not only be sold in Lexington – Kentucky but also throughout the United States of America and Canada.

We are in the cosmetic & beauty care product manufacturing industry to make profits and also to give our customers value for their money. We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

• Lipstick, lip gloss, lip stains, lip liner and lip balm et al

4. Our Mission and Vision Statement

• Our vision is to establish standard lip gloss production company whose products will not only be sold in Lexington – Kentucky, but also throughout the United States of America and Canada.
• Our mission is to establish a standard and world class lip gloss line that in our own capacity will favorably compete with leaders in the industry.
• We want to build a business that will be listed amongst the top 10 lip gloss brands in the United States of America and Canada.

Our Business Structure

Kiss Daniela® Lip Gloss Production Line, LLC is established with the aim of competing favorably with other leading brands in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Plant Manager

• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Machine Operators
• Accountants / Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
• Responsible for overseeing the smooth running of the production plant
• Part of the team that determines the quantity of lip gloss and related products that are to be produced
• Map out strategies that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Serve as quality control and compliance officer
• Ensures that the plant meets the expected safety and health standard at all times.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of raw materials such as (Color pigments, oils, Castor oil, waxes (beeswax, candelilla wax, or camauba, red fluorescent dye, solvent, antioxidant and emollients) and labeling and packaging materials.
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the manager

Production Workers/Machine Operators:

• Responsible for operating equipment and machines such as blending, mixing and compounding machine, molding machine, and packaging, labeling and sealing machines
• Responsible for preparing, blending, compounding, packaging and labelling of lip gloss and related products
• Assist in loading and unloading lip gloss and related products
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a delivery schedule.
• Transport finished goods and raw materials to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collect and verify delivery instructions
• Report defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several lip gloss production companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Kiss Daniela® Lip Gloss Production Line, LLC employed the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Kiss Daniela® Lip Gloss Production Line, LLC;

Part of what is going to count as positives for Kiss Daniela® Lip Gloss Production Line, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, the wide varieties of lip gloss and related products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new lip gloss production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Estee Lauder, Mary Kay and L’Oreal USA, Inc. et al are already determining the direction of the market both in the United States and in the global market.

• Opportunities:

The opportunities available to lip gloss manufacturing companies are enormous. This is due to the fact that people from all over the world make use of cosmetics and beauty care products regularly.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies . It is a fact that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new lip gloss production company or a cosmetics and beauty care manufacturing company that also manufacture lip gloss in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the existing trend in the cosmetic & beauty care industry, you will quite agree that despite the fact that there are competitions in different stages of the industry. Most lip gloss production companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry.

Another trend in this industry is the exploration of safer raw materials for the production of lip gloss and related products. The truth is that people all over the world are looking for lip gloss and related products that contain less chemical hence the increase in demand for herbal beauty care products.

8. Our Target Market

When it comes to selling lip gloss and related products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in manufacturing and wholesale distribution of lip gloss and related products to the following groups of people;

• Cosmetic and beauty care retailers
• Beauty salons and spas
• Makeup artists
• All the female and male in and around our target market location

Our Competitive Advantage

A close study of the cosmetic and beauty care products manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are prepared to compete favorably in the industry. Part of what is going to count as competitive advantage for Kiss Daniela® Lip Gloss Production Line, LLC is the vast experience of our management team.

So also, the wide varieties of lip gloss and related products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kiss Daniela® Lip Gloss Production Line, LLC is established with the aim of maximizing profits in the cosmetic and beauty care product manufacturing industry in both the United States of America and Canada and we are going to ensure that we do all it takes to sell our products to a wide range of customers. Kiss Daniela® Lip Gloss Production Line, LLC will generate income by selling the following products;

10. Sales Forecast

One thing is certain when it comes to lip gloss line production business, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers.

We are well positioned to take on the available market in Lexington – Kentucky and every city where our lip gloss and related products care will be sold and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation.

We have been able to examine the cosmetic and beauty care products manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Kiss Daniela® Lip Gloss Production Line, LLC, it is based on the location of our business and other factors as it relates to startups in the United States;

• First Fiscal Year (FY1): $290,000
• Second Fiscal Year (FY2): $550,000
• Third Fiscal Year (FY3): $950,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Kiss Daniela® Lip Gloss Production Line, LLC and also the kind of lip gloss and related products we produce, we conduct a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target location.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.

We hired experts who have good understanding of the industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Lexington – Kentucky. In summary, Kiss Daniela® Lip Gloss Production Line, LLC will adopt the following sales and marketing approach to sell our products;

• Introduce our lip gloss and related products brand by sending introductory letters to merchants, retailers, makeup artists, beauty salons and spas and other stakeholders in Lexington – Kentucky and other cities both in the United States of America.
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our lip gloss and related product brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our lip gloss production plant is a standard one, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Kiss Daniela® Lip Gloss Production Line, LLC.

Kiss Daniela® Lip Gloss Production Line, LLC has a long – term plan of distributing our products in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Lexington – Kentucky before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Kiss Daniela® Lip Gloss Production Line, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our lip gloss and related product brand
• Install our Billboards in strategic locations all around major cities in the United States of America
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

We are aware of the pricing trend in the cosmetic and beauty care products manufacturing industry which is why we have decided to produce various sizes of lipstick, lip gloss, lip stains, lip liner and lip balm et al.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the market. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our lip gloss brand.

• Payment Options

The payment policy adopted by Kiss Daniela® Lip Gloss Production Line, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kiss Daniela® Lip Gloss Production Line, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our lip gloss and related products without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to starting a makeup production company, the major areas that you should look towards spending the bulk of your cash is in the purchase of standard chemical mixing machines, distribution trucks and of course renting or leasing a well-located facility large enough fit into the design you have in mind.

You are also expected to pay your employees, purchase of raw materials, maintain your trucks etc. These are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Kiss Daniela® Lip Gloss Production Line, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard lip gloss line production plant – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw material (Color pigments, oils, Castor oil, waxes (beeswax, candelilla wax, or camauba, red fluorescent dye, solvent, antioxidant and emollients) and labeling and packaging materials. et al) – $80,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase of distribution vans – $60,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our lip gloss line products production plant in Lexington – Kentucky.

Generating Funds/Startup Capital for Kiss Daniela® Lip Gloss Production Line, LLC

Kiss Daniela® Lip Gloss Production Line, LLC is owned and financed by Daniella Murphy. She has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Kiss Daniela® Lip Gloss Production Line, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our lip gloss and related products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Kiss Daniela® Lip Gloss Production Line, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard lip gloss line production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• Writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed equipment and machines such as blending, mixing and compounding machine, molding machine (tubes), and packaging, labeling and sealing machines, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with vendors – wholesale suppliers / merchants : In Progress

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How to start a lip balm business: guide and examples from top lip care brands.

In This Article

Chapped lips are a universal problem—many of us use a balm or stick daily to keep our lips soft and smooth.

While lip balm may not be something you’d immediately consider when looking for a business opportunity, the growing interest in natural lip care makes this necessity a viable product idea.

Yes, believe it or not, learning how to make lip balm is a marketable skill. Avid DIYers who concoct all sorts of creative projects can channel that passion into a side business. DIY lip balm is an excellent product for fledgling entrepreneurs looking for a new idea to build a business around.

It’s easy to customize the recipe below to create your natural lip balm for the market. Because the ingredients are relatively inexpensive and straightforward in your kitchen, homemade lip balm is a viable way to turn a creative passion into a product.

Why sell homemade lip balm?

Homemade lip balm has become an essential lip care product for consumers. Grand View Research forecasts that the global lip care market will reach $1.17 billion by 2025, averaging a 7.2% compounded growth rate each year.

The market research company also reports increased awareness regarding personal care products. Rising lip care issues, such as chapping, splitting, and wrinkles, are estimated to propel the demand for lip balm further. It also predicts online sales as the primary distribution channel for new entrants into the market.

Lip balm is for everyone. Whether you use it daily or carry it around for when your lips dry out, it’s a helpful product for consumers. One study reported that 65.9% of people use lip balm daily.

Google Trends has shown consistent interest in lip balm over the past five years. Consumers’ search trends, especially for products like Korean lip balm , peak in the fall and winter months. You’ll notice the uptrend in interest begins mid-October and finishes around March. This gives lip care retailers a seven-month window to push sales before summer.

Since lip balm has a universal purpose, it can be sold anywhere. Searches for lip balm expand globally, from Singapore to the United Kingdom, India, the United States, and Australia.

So, if you’re an entrepreneur looking for a new product to sell, lip balm is a solid option for you. A lip balm business offers numerous benefits, including:

• Low cost to make. Making lip balm doesn’t require pricey materials. Some sources claim DIY lip balm costs around $0.12 per tube .
• Global interest. Balm and other lip care products have no boundaries. There is clear interest around the world. It’s also an easy product to ship.
• Easy DIY craft to learn. The recipe for creating homemade lip balm is easy to follow. As you’ll see in the formula below, it’s a simple process.
• Easy to customize. With many different bases and scents, it’s easy to personalize lip care products and differentiate yourself from competitors.

Creating lip balm is a skill you can turn into a nice side income. You may not find it profitable to start a lip balm business alone because the profit margins are low. But you can quickly expand into different body and skin care products.

Many brands, like Meow Meow Tweet , take this route to create a more sustainable lifestyle. It offers lip balm, like the Coconut Cacao vegan balm below, alongside a mix of complementary face care products.

Regardless, it’s clear that lip balm can be a profitable venture when done right. It’s an excellent creative outlet because you can produce any lip balm possible. And you can quickly expand into other product categories if you want to grow beyond lip balm.

Types of homemade lip balm

Now that we’ve established that natural lip balm offers enough demand and sales to support a new homemade lip balm line let’s examine the various lip balms you can try recreating.

While there are numerous types of natural lip balm, here are some of the most popular and pervasive types on shelves today.

When choosing natural ingredients for the base of your lip balm, one of the go-to substances to use is beeswax. After all, one of the most popular brands of natural lip balm—Burt’s Bees—is created from beeswax.

Beeswax pellets are also easy to order, mix well with other ingredients, and are relatively inexpensive (you can order one pound of beeswax pearls/pastilles for around $9 ).

While natural lip balm is generally used to treat or prevent chapped lips, plenty of us also like to add a pop of color to our mouths while we’re at it.

As such, there are a variety of tinted lip balms in innumerable colors. From pinks, oranges, purples, reds, and everything in between, you can create plenty of custom shades using either a small amount of lipstick mixed in with your recipe or mica powder in your preferred pigment.

To soothe chapped or dry lips, many natural lip balm varieties include ingredients to alleviate pain from cracked skin. The most common elements include menthol or camphor, which ease dry lip pain.

Homemade lip balm creators can also include a variety of essential oils in their recipes to add other healing qualities, such as lavender for stress relief.

If you are selling medicated lip balm, you’ll want to read the Food and Drug Administration’s (FDA) regulations for cosmetics packaging and labeling . Cosmetics are regulated by the FDA, which is strict with how you can package and market lip balm products. You don’t want to get fined for not complying with the law when starting your lip balm business.

Cannabidiol (CBD) is one of the cannabinoids found in cannabis plants. Unlike tetrahydrocannabinol (THC), CBD doesn’t give you a “high.” But it does have therapeutic effects that benefit the skin, like moisturizing dry and chapped lips.

CBD isn’t the base of the lip balm. It’s often mixed with other ingredients, like kokum butter, beeswax, coconut oil, and hempseed oil, to create the final product. If you choose to produce CBD-infused lip balm, look for the following indicators of safety and quality:

• Made with US-grown hemp
• Free of pesticides, heavy metals, and molds
• Contains no more than 0.3% THC
• Made by a company that provides proof of third-party testing by an ISO17025-compliant lab

Vegan lip balms use no animal byproducts in their formulas. They cater to consumers who do not eat or use food and other products derived from animals, be it by preference or for medical reasons.

These lip balms use coconut oil, sunflower oil, cocoa butter, vitamin E, jojoba oil, and calendula flower extract to hydrate and protect the lips. They can even come medicated with SPF to protect lips from sun and wind damage.

Take Hurraw! Balm , for example. The brand makes vegan, raw, organic, and fair-trade balms. It features everything from tinted to ayurvedic and medicated creams and classic styles using all-natural ingredients.

How to make lip balm

While there are many varieties of homemade lip balm, we’re offering a DIY lip balm recipe here for you to build upon. Change the base beeswax base, use your preferred essential oils, and add color for a tint to personalize the following recipe.

Gather your ingredients

Before getting started, you’ll need to assemble all your ingredients, including:

• Beeswax. You can purchase beeswax in pearl or pastille form from sellers like Bulk Apothecary .
• Shea butter. Procure some creamy, raw shea butter from Bulk Apothecary or Amazon for your balm base.
• Coconut oil. Buy this common ingredient from a bulk-buying retail store like Costco or Amazon at your local grocery store.
• Essential oils. Whatever scent you prefer for your homemade lip balm, you can find a variety of essential oils at most discount stores (think Walmart or Target), health and wellness stores, or online from Amazon . Popular essential oils for lip balm include peppermint, lavender, lemon, vanilla, and grapefruit.
• Mica powder. To give your homemade lip balm a rosy tint, purchase mica powder from Amazon  or Bulk Apothecary .
• Lip balm containers. Get containers for your homemade lip balm, whether you prefer lip balm tubes or tins .

Combine ingredients

Put the beeswax, shea butter, and coconut oil in the top pot of a double boiler. Add tap water to the bottom pot. Place the double boiler on your stove and turn the heat to medium-high.

Once all the ingredients melt in the pot, stir and combine with a spatula or wooden spoon.

Add your scent

Remove the double boiler from the direct heat once all the base ingredients are melted and combined. Keep the top pot above the bottom pool containing the water to maintain the temperature of the components (and to prevent the melted balm base from hardening).

After removing the double boiler from the direct heat, add a few drops of your favorite essential oil to the mix. Mix in five to 10 drops to start, then test the scent. You can add more essential oils based on your preference.

Could you add your lip balm color?

Now that you’ve added your scent of choice, it’s time to add a pop of color to your lip balm mixture. From here, add a pinch of mica powder or a bit of lipstick to the balm base. Stir to combine the color into the mix. Slowly add more powder or lipstick to darken the color of the mixture to your preference.

Once the mixture is combined, spoon the balm into a pipette or dropper.

Could you finish off your homemade lip balm?

Once the balm mixture is in your pipette or dropper, transfer the balm into your tins or chapstick tubes. Allow them to cool off at room temperature for several hours.

After the balm has cooled to room temperature, you’re ready to sell your newly created tinted lip balm!

Tips for starting a lip balm business

Now that you know how to make lip balm, let’s look at how you can start running your own business selling it.

Research the market

A successful lip balm business won’t succeed just from hard work. Think about a niche that isn’t filling or a target market you want to reach with your products. This will help you attract customers who are interested in buying your products.

Some ideas:

• Classic lip balm: These are the balms you carry and reapply throughout the day. Burt’s Bees or ChapStick will be your competitors.
• Organic and sustainable. These are for the eco-friendly buyers. They are often vegan and cruelty-free expected to represent a $20.8 billion industry by 2025.
• Luxury. These balms target high-end customers and are typically shared on social media. They use premium, natural ingredients and are higher priced. Competitors include Dior, YSL, La Mer, etc.

When doing market research, consider other products you could offer alongside lip balm. It’s rare for a business to succeed in selling lip balm alone. Brands often sell other body or skin care products like scrubs, lotions, soaps, etc.

SUGAR Cosmetics , for example, sells lip balm and lip scrubs, makeup, lip gloss, and other things that can be made and sold online.

You can upsell customers based on past lip balms they buy, create scent-centric bundle packages, and reach new audiences by expanding your product line.

You can choose a catchy lip balm business name.

If it looks like you found a niche market and good products to sell, you’re ready to start planning your brand. This means choosing a business name and logo. Customers like brands with a captivating story, so tying that into your name and logo will help attract attention.

An easy way to find a lip balm business name is by using Shopify’s cosmetic business name generator . Type in a keyword for your business, for example, “sky,” and the generator will create business name ideas and instantly check domain name availability for your online store.

Could you write a business plan?

A business plan guides your journey as a lip balm maker and business owner. Ask yourself: What’s the big goal for my products? Do I want to be a brand name sold in stores like Anthropologie? Or do I want to create a private label brand for big stores like Target or Walmart ? Do I want to be a premium brand sold only in retail and online stores?

Could you determine your goal and remember it as you create your brand?

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Consider legal requirements.

Could you do some due diligence around manufacturing and packaging practices? Depending on where you operate the business, you must comply with local health and safety standards before selling homemade lip balm to the public. You may want to look into any business licenses you’ll need to trade in your region.

If you’re selling in the United States, the FDA’s Small Business & Homemade Cosmetics Fact Sheet is an excellent place to start. Read the European Commission’s cosmetics regulations guide if you’re selling in Europe or the United Kingdom.

How to market your homemade lip balm business

Now that you have the instructions for your homemade lip balm recipe, you can start turning your new product into a business. And one of the primary channels where you can find an audience of potential customers for your DIY lip balm is online.

While you can explore many digital channels for your homemade lip balm, one of the first steps to building an online presence is to make your online store . You then have a digital home to display your handcrafted products—and a central place to drive all the traffic you might drum up on other channels.

While an online store is an excellent place to get started with marketing your homemade lip balm online, there are other channels you should explore, including:

• Instagram . This is undoubtedly one of the social media platforms that makes the most sense for handcrafted products like homemade lip balm. Create beautiful images of your products to share with followers, connect with potential brand evangelists to build an influencer marketing strategy, and offer behind-the-scenes peeks of how you make and use your DIY lip balm.
• Pinterest. There’s certainly no shortage of beauty products and cosmetics on Pinterest. As another visual social media platform, Pinterest is a fantastic place to boost discoverability. Creating beautiful pinned images can help you find new customers.
• Snapchat. With an engaged user base of 200 million, Snapchat is another great social platform to increase discoverability. Here, you can show off your brand’s personality and offer tips, tricks, and advice relevant to your customers.
• Giveaways and contests. While giving away products for free may sound counterintuitive to gain more customers, many retailers have built successful strategies around giveaways and competitions. They offer the opportunity to increase your customer base, introduce your products to new customers, and grow your business.
• Email marketing. Deliver news, promotions, and product launch details to your customers’ inboxes. Create email marketing campaigns to increase return buyers, offer personalized product recommendations, and increase buyer loyalty.

While many retailers may start making money online , don’t discount in-person sales. Consider setting up face-to-face sales opportunities with your customers to reach new audiences and experiment with new products and income streams.

Homemade lip balm, either as a standalone product or as part of a line of beauty products, can be packaged up and presented beautifully for in-person sales. Whether you prefer to set up a market booth at local craft fairs or attend flea and farmer’s markets, DIY lip balm creators have many opportunities to take advantage of in-person sales.

Or, if you prefer to dabble in temporary retail, you can try running your pop-up shop  or a “pop-in” shop at a beauty or cosmetics store.

At these events, not only can you make face-to-face connections with retail customers, but you can also chat with potential wholesale customers.

If that isn’t enough, there are a wealth of other reasons homemade lip balm makers should consider in-person sales:

• Befriending fellow entrepreneurs and crafters. Connecting with your customers may be priority No. 1, but meeting other entrepreneurs is another significant benefit. You can get inspiration or new ideas for products and marketing tactics.
• Find wholesale customers . As mentioned, in-person sales allow retailers to find potential wholesalers for their hand-crafted products. This will enable you to get your homemade lip balm into already-established stores and in front of their built-in customer base.
• Experimentation. Do you know a new product or way to set up your booth? One of the advantages of in-person sales over e-commerce is the ability to experiment and get immediate feedback. With those on-the-spot customer interactions at a festival or pop-up shop, you can offer demonstrations, address customer queries then and there, and determine whether a new collection or marketing method is working.
• Build your email list and branded social channels. Yes, in-person sales also allow you to stay in touch with your customers long after you make a sale. In-person interactions will enable you to encourage current and potential customers to sign up for your email subscriber list and follow you on your social channels to get regular news and updates from your brand.

Getting started with in-person sales doesn’t have to be overwhelming. Doing a little due diligence can help you set yourself (and your bottom line) up for success. Check out our guide to help you nail the in-person selling experience , and do some homework on how mobile point-of-sale systems like Shopify POS can help you sell anywhere.

Building a successful lip balm business

Now that you’re well-versed in making lip balm, you can start your side hustle . Scratch your creative itch by fashioning your recipe, then use the above marketing tactics to get your homemade products in front of potential customers.

Soon, you’ll start to see the benefits of running your own lip balm business and reap the rewards of a profitable business and higher revenue.

Illustration by Rose Wong

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Lip balm business faq, can you make money selling lip balm.

Yes, many brands make money selling lip balm online and in person. You’ll want to do market research to determine what types of creams are selling and who is buying them. Then, create a unique product for that audience. Brands also extend their product line to other skin and body care products to attract more customers and increase sales.

How do I start a lip balm business?

• Do market research.
• Build your brand
• Create a lip balm business name
• Write a business plan
• Make lip balm to sell
• Build an online store
• Market your lip balm

How much does homemade lip balm sell for?

You can sell lip balm for as low as $1.50 per container or up to $10 for unique variations. Keep your lip balm priced between $3 to $4 per tube to stay competitive. Offer bundle backs to increase average order value and sell more lip balm online.

Does lip balm need FDA approval?

Cosmetic products and ingredients do not need FDA premarket approval. So you can create lip balm and sell it without getting an OK from the government. However, the FDA can enforce action against products on the market that don’t comply with the laws mentioned in their guidelines.

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How To Start a Lip Balm Business

Radhika Sivadi

4 min read ·

No one likes chapped lips. They’re irritating and sometimes even painful. Luckily, there’s lip balm to help provide moisture and protection against the elements. Whether you’re a woman or a man, using lip balm can be the difference between a day of aggravation and a day of comfort.

And speaking of gender distinctions, 81% of women and 39% of men use lipstick or lip balm products, according to stats published in a report by the U.S. PIRG Education Fund. Not to mention that recent years have shown a growing demand for natural skincare products, including those related to lip care.

So what does all this mean for you? As an entrepreneur, you can see a clear business opportunity regarding lip balms. For one, you have a dual-target demographic to go after in men and women. Plus, consumer demand for natural products provides a clear element to focus on in both production and marketing.

But where do you start? Keep reading to see what steps you should take to get your lip balm business off the ground .

Starting a Successful Lip Balm Business: 7 Steps

1. do market research..

It’s important to first understand the market and the types of customers you want to target. Demographics are one piece of the puzzle. Will you target only women, only men, or both? Is there a particular age group or income bracket that makes sense to seek out? Do you want to focus on particular interest areas, such as vegans?

Beyond demographics, also consider what complementary products you can branch into after your success with lip balm. People tend to be interested in multiple skincare products, not just one for lips. Can you create or source companion natural products for your chosen customer?

2. Decide on the type of lip balm.

Before heading to your kitchen to whip up an amazing lip balm recipe, you need to choose a type of lip balm. There are five common types, and your market research should inform your choice.

• Beeswax. If you want to check both the natural and affordable checkboxes, beeswax is the way to go. Plus, the fact that one of the most well-known lip balms is made from beeswax (Burt’s Bees) means it’s marketable.
• Medicated. Have you ever applied lip balm, and it burned? Then you probably used a medicated version with cooling agents such as menthol or camphor. Medicated lip balms work great for severe lip dryness and cold sores.
• Vegan. If you plan to carve out a niche within the lip balm market, taking the vegan route will make marketing easier. Vegan lip balms have no animal byproducts, which you can emphasize when you target customers interested in these types of skincare items.
• Tinted. For lip balm users who also like a splash of color, tinted is the way to go. These lip balms use either a small amount of lipstick or mica powder to achieve a slightly colored lip. An article in the popular magazine Allure noted that tinted lip balms are “great for no-makeup makeup looks.” Unsurprisingly, your audience will be primarily women if you go this route.
• CBD. Cannabidiol, or CBD, has been the craze over the last few years, popping up in all types of natural products. It has therapeutic properties that benefit the skin. For lip balms, one benefit is moisturizing lips.

3. Create a lip balm recipe.

Once you’ve decided on a type of lip balm, it’s time to create a recipe. It will take some trial and error to get it exactly right. Try using a combination of beeswax, shea butter, coconut oil, and one or more essential oils. It’s your recipe, so feel free to experiment before finalizing your blend.

When you get to the “cooking” stage, you’ll need:

• A spatula or wooden spoon for stirring
• A double boiler for melting and combining ingredients
• Tins or tubes to contain your lip balm
• Plastic pipettes for transferring your blend to the tubes
• Your chosen ingredients (e.g., beeswax, shea butter, coconut oil, essential oils, etc.)
• Lipstick or colored mica powder (optional)

4. Develop your business plan.

Your lip balm business plan should have your complete go-to-market strategy—main goals, the market research you’ve done, details about your product, how you will market your product, and financial projections. It’s important you record all these aspects, so you always know your next steps once you get started.

5. Work on branding and packaging.

What will you call your business? How will you package your product for customers? These brand considerations hold more weight than you may think. Customers aren’t going to know your brand, so it’s important that you appeal to them with a compelling brand image to capture their attention.

6. Build your business website.

You need to have a place to sell your products online, as ecommerce is the way many consumers make purchases today. That’s where your online shop comes in. Develop your website in a way that captures your brand image and keeps the customer in mind. What will catch their attention? How can you make it easy for them to buy from you?

7. Market your products.

Finally, you need to market your products so would-be customers can find you. Use Google and social media ads and post on social media. Visual-focused platforms like Instagram and Pinterest are great places to showcase your lip balm.

You can supplement your online marketing with in-person approaches as well. Try securing spaces at local markets or fairs. Set up a visually stunning presentation to draw visitors to your booth or stand and sell your products directly there; also, get them to follow you online to encourage repeat business and referrals to their friends and family.  

The above steps can make starting a successful lip balm business a lot easier. Just make sure to take your time to create a unique lip balm that customers will love.

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How To Start A Lip Balm Business

Starting a lip balm business involves researching the market, formulating unique products, complying with cosmetic regulations, establishing a brand, and strategizing a comprehensive marketing and sales approach.

• Last Update: November 23, 2023

• Steps in this Guide: 11

Starting a lip balm business can be an exciting and rewarding venture for aspiring entrepreneurs. With the increasing demand for natural and organic beauty products, lip balm has become a must-have item for many consumers. Whether you are passionate about skincare, have a creative flair, or simply want to be your own boss, this blog post will guide you through the essential steps to help you start your own lip balm business. From developing a unique product line to marketing strategies, we will cover everything you need to know to make your lip balm business a success. So, if you’re ready to embark on an entrepreneurial journey in the booming beauty industry, keep reading for valuable insights and practical tips to get you started.

How To Start A Lip Balm Business: Step-by-Step

Step 1: market research,.

Understand the current lip balm market, including competition, customer demands, trends, and target demographic. Determine your unique selling point to differentiate your product from competitors and cater to the specific needs and preferences of your target audience.

Step 2: Business Plan,

Our mission is to provide exceptional products and services while constantly seeking innovation and sustainability. Our vision is to be a leading player in the industry, recognized for our commitment to quality and customer satisfaction. We have outlined comprehensive operational plans, an effective marketing strategy, a solid financial forecast, and a clear growth plan to achieve our goals.

Step 3: Legalities,

In order to start your cosmetic products business, it is crucial to register it, acquire the required permits and licenses, establish your tax identity, and have a comprehensive understanding of industry regulations.

Step 4: Product Development,

Based on market research, our formulated lip balm will consist of natural ingredients such as shea butter, coconut oil, and beeswax for ultimate nourishment and hydration. We offer a range of flavors including mint, cherry, and vanilla. Our balms will be proudly organic and vegan to cater to the growing demand for sustainable and cruelty-free products.

Step 5: Branding,

Developing a compelling brand name, logo, and identity is crucial for capturing your desired audience’s attention and distinguishing your business in a competitive marketplace. This strategic approach ensures your brand resonates with customers and leaves a lasting impression.

Step 6: Packaging,

In order to create a strong brand image and attract consumers, it is crucial to carefully choose functional and visually appealing packaging for your lip balms. This packaging should align with your brand identity and be designed to catch the attention of potential customers.

Step 7: Establish Suppliers,

In order to ensure a smooth production process, it is crucial to source reliable suppliers for ingredients, packaging materials, and necessary equipment. Trustworthy suppliers help maintain quality standards and timely delivery, ultimately contributing to the success of your business.

Step 8: Production,

Set up a streamlined production process, either by making the lip balm at home or outsourcing it to a reliable manufacturer. Implementing efficient production methods will ensure consistent quality and enable the smooth delivery of the product to customers.

Step 9: Pricing Strategy,

Develop a pricing strategy that strikes a balance between covering costs, driving profitability, and enticing consumers through competitive pricing.

Step 10: Marketing and Sales Strategy,

Plan and execute an effective marketing strategy by integrating various online and offline channels. This encompasses leveraging social media, e-commerce platforms, physical retail stores, and other relevant platforms to achieve maximum reach and customer engagement.

Step 11: Evaluate and Adapt,

Regularly review performance, adapt strategies like launching new flavors, updating packaging, and running promotional campaigns. Keep up with market trends for a competitive edge.

Starting a lip balm business can be an exciting and profitable venture for aspiring entrepreneurs. By following the steps outlined in this blog post, you can lay a strong foundation for your business and increase your chances of success. Remember to thoroughly research your target market, create a unique brand, develop high-quality products, and implement effective marketing strategies. Additionally, staying updated with the latest industry trends and continuously improving your offerings will help you stay ahead of the competition. With determination, perseverance, and the right strategies, you can turn your passion for lip balms into a thriving business. So, go ahead, take the leap, and make your dream of owning a lip balm business a reality!

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How To Make and Sell Lip Balm Online: Guide and Examples From the Top Lip Care Brands

Learn an easy recipe to create your own natural lip balm, with tips on marketing and selling your new lip balm online, in-store, and everywhere in between.

Chapped lips are a universal problem—many of us use a balm or stick daily to keep our lips soft and smooth. While lip balm may not be something you’d immediately consider when looking for a business opportunity, the growing interest in natural lip care makes this necessity a viable product idea.

Yes, believe it or not, learning how to make lip balm is a marketable skill. Avid DIYers (do it yourself) who concoct all sorts of creative projects can take that passion and channel it into a side business. DIY lip balm is a great product for fledgling entrepreneurs on the prowl for a new idea to build a business around .

It’s easy to take the below recipe and customize it to create your own lip balm to market. Because the ingredients are relatively inexpensive and it’s simple to make in your own kitchen, homemade lip balm is a viable way to turn a creative passion into a product.

Table of contents

Why sell homemade lip balm?

Types of homemade lip balm, how to make and sell lip balm online, how to start a lip balm business.

Homemade lip balm has become an essential lip product for consumers. Mordor Intelligence estimates the global lip care market at $4.52 billion in 2024, with a predicted 4.9% compounded growth rate each year through 2029.

The market research company also reports an increase in awareness regarding personal care products, especially those containing natural ingredients. Rising lip care issues, such as chapping, splitting, and wrinkles, is estimated to further propel the demand for lip balm, especially among millennials. And an increasing amount of men are becoming interested in lip care products.

Lip balm is for everyone. Whether you use it daily or carry it around for when your lips are dry, it’s a helpful product for consumers. In fact, 81% of women and 39% of men use lip products daily, with women averaging about 2.35 times per day—some up to 14 times in a day.

Google Trends shows consistent interest in lip balm over the past five years. Consumers tend to search for lip balm most in the fall and winter months. You’ll notice the uptrend in interest begins mid-October and finishes around March. This gives lip care retailers a nice seven-month window to push sales before summer.

Since lip balm has a universal purpose, it can be sold anywhere, making it one of the best crafts to make and sell . Searches for lip balm expand across the globe, including Singapore, Indonesia, the United Kingdom, New Zealand, and Australia.

So if you’re an entrepreneur looking for a new product to sell, lip balm is a solid option for you. A lip balm business offers numerous benefits, including:

• Low cost to make. Making lip balm doesn’t require pricey materials. Some sources say DIY lip balm costs around 12¢ per tube .
• Global interest. Balm and other lip care products have no boundaries. There is clear interest around the world. It’s also an easy product to ship.
• Easy DIY craft to learn. Lip balm recipes are easy to follow. As you’ll see in the formula below, it’s a simple process.
• Easy to customize. With so many different bases and scents, it’s easy to personalize lip care products and differentiate yourself from competitors.

Creating lip balm is a skill you can turn into a nice side income. You may not find it profitable to start a lip balm business on its own, because the profit margins are low. But you can easily expand into different body and skin care products.

Many brands, like Meow Meow Tweet , take this route to create a more sustainable lifestyle. It offers lip balm, like the Coconut Cacao vegan balm below, alongside a mix of complementary face care products.

Regardless, it’s clear that lip balm can be a profitable venture when done right. It’s a good creative outlet, because you can produce any type of lip balm possible. And you can easily expand into other product categories if you want to grow beyond lip balm.

Now that we’ve established that natural lip balm offers enough demand and sales to potentially support a new homemade lip balm line, let’s examine the various types of lip balm you can try recreating.

While there are numerous types of natural lip balm, here are some of the most popular and pervasive types on shelves today.

Beeswax lip balm

When it comes to choosing natural ingredients for the base of your lip balm, one of the go-to substances to use is beeswax. After all, one of the most popular brands of natural lip balm—Burt’s Bees—is created from beeswax.

Beeswax pellets are also easy to order, mix well with other lip balm ingredients, and are relatively inexpensive (you can order one pound of beeswax pearls/pastilles for around $9 ).

Tinted lip balms

While natural lip balm is generally used to treat or prevent chapped lips, plenty of us also like to add a pop of color to our mouths while we’re at it.

As such, there are a variety of tinted lip balms in innumerable colors. From pinks, oranges, purples, reds, and everything in between, you can create plenty of custom shades using either a small amount of lipstick mixed in with your recipe or mica powder in your preferred pigment.

Medicated lip balms

To soothe chapped or dry lips, many natural lip balm varieties include ingredients to alleviate pain from cracked skin. The most common ingredients include menthol or camphor, which ease dry lip pain.

Homemade lip balm creators can also include a variety of essential oils in their recipe to add other healing qualities, such as lavender for stress relief.

If you are selling medicated lip balm, you’ll want to read the Food and Drug Administration’s (FDA) regulations for cosmetics packaging and labeling . Cosmetics are regulated by the FDA, which is strict with how you can package and market lip balm products. You don’t want to get fined for not complying with the law when starting your lip balm business.

CBD lip balms

Cannabidiol (CBD) is one of the cannabinoids found in cannabis plants. Unlike tetrahydrocannabinol (THC), CBD doesn’t give you a “high.” But it does have therapeutic effects that benefit the skin, like moisturizing dry and chapped lips.

CBD isn’t the base of the lip balm. It’s often mixed with other ingredients, like kokum butter, beeswax, coconut oil, almond oil, olive oil, avocado oil, castor oil, and hempseed oil to create the final product. If you choose to produce CBD-infused lip balm, look for the following indicators of safety and quality:

• Made with US-grown hemp
• Free of pesticides, heavy metals, and molds
• Contains no more than 0.3% THC
• Made by a company that provides proof of third-party testing by an ISO17025-compliant lab

Vegan lip balms

Vegan lip balms use no animal byproducts in their formulas. They cater to consumers who do not eat or use food and other products derived from animals, be it by preference or for medical reasons.

These lip balms use ingredients like coconut oil, sunflower oil, cocoa butter, vitamin E, jojoba oil, and calendula flower extract to hydrate and protect the lips. They can even come medicated with SPF to protect lips from sun and wind damage.

Take Hurraw! Balm , for example. The brand makes vegan, raw, organic, and fair trade balms. It features tinted balms, ayurvedic and medicated balms, and classic styles using all-natural ingredients.

SPF lip balms

SPF lip balms offer some sort of sun protection. They may include ingredients like carrot seed essential oil, red raspberry seed oil, coconut oil, beeswax, shea butter, and zinc oxide—each of which has its own SPF benefits.

It’s important to note, however, products that claim to have SPF may require additional licensing or certification from the FDA . You’ll want to ensure you refrain from claiming protection from skin cancer and skin aging unless you have your products tested by a certified and approved lab. 

Gather your ingredients and tools

Combine ingredients, add your scent, add your lip balm color, finish off your homemade lip balm.

While there are many varieties of homemade lip balm, we’re offering a DIY lip balm recipe here for you to customize. Change out the beeswax base, use your preferred essential oils, or add color for a tint to personalize the following recipe for your own purposes.

Before getting started, you’ll need to assemble all your ingredients and tools including:

• Beeswax: 2 tbsp. You can purchase beeswax in pearl or pastille form from local farmers markets or online sellers like Bulk Apothecary .
• Shea butter: 2 tbsp. Procure some creamy, raw shea butter for your balm base from Bulk Apothecary or Amazon .
• Coconut oil: 2 tbsp. Buy this common ingredient from your local grocery store, a bulk-buying retail store like Costco, or Amazon .
• Essential oils: several drops. Whatever scent you prefer for your homemade lip balm, you can find a variety of essential oils at most discount stores (think Walmart or Target), health and wellness stores, or online from Amazon . Popular essential oils for lip balm include peppermint, lavender, lemon, vanilla, and grapefruit.
• Mica powder: 1/2 tsp. To give your homemade lip balm a rosy tint, purchase mica powder from Amazon , or Bulk Apothecary .
• Lip balm containers. Find a place that will sell containers for your homemade lip products, whether you prefer lip balm tubes , jars, or tins .
• Plastic pipette. To help fill your containers without spilling.
• Double boiler. To slowly melt your ingredients together.
• Spatula or wooden spoon. For mixing your ingredients together.

1. Take the beeswax, shea butter, and coconut oil and put them in the top pot of a double boiler.

2. Add tap water to the bottom pot. Place the double boiler on your stove, and turn the heat to medium high. Once all the ingredients begin to melt in the pot, use a spatula or wooden spoon to stir and combine.

3. Once all the base ingredients are melted and well combined, remove the double boiler from the direct heat. Keep the top pot above the bottom pot containing the water to maintain the temperature of the ingredients (and to prevent the melted balm base from hardening).

4. After the double boiler is removed from the direct heat, begin adding a few drops of your favorite essential oil to the mix. Mix in five to 10 drops to start, then test the scent. Add more essential oil based on your preference.

5. Now you’ve added your scent of choice, it’s time to add a pop of color to your lip balm mixture. From here, add a pinch of mica powder or a pinch of lipstick to the balm base. Stir to combine the color into the mix. Slowly add more powder or lipstick to darken the color of the mixture to your preference.

6. Once the mixture is combined, spoon the balm into a pipette or dropper.

7. Once the balm mixture is in your pipette or dropper, transfer the balm into your tins or chapstick tubes. Allow them to cool off at room temperature for several hours.

8. After the balm has cooled to room temperature, you’re ready to sell your newly created tinted lip balm!

Now that you know how to make lip balm, let’s look at how you can start running a business selling it.

1. Research the market

A successful lip balm business won’t succeed just from hard work. Think about a niche in the market that isn’t being filled or a target market you want to reach with your products. This will attract customers interested in buying your products.

Some ideas:

• Classic lip balm, These are the balms that you carry around and reapply throughout the day. Burt’s Bees or ChapStick will be your competitors.
• Organic and sustainable. These are for the eco-friendly buyers. They are often also vegan and cruelty-free. Vegan cosmetics are expected to represent a $20.8 billion industry by 2025.
• Luxury. These balms target high-end customers and are typically shared on social media. They use premium, natural ingredients and are higher priced. Competitors include Dior, YSL, La Mer, etc.

When doing market research, consider what other products you could offer alongside lip balm. It’s very rare for a business to succeed selling lip balm alone. Brands often sell other body or skin care products like scrubs, lotions, soaps, etc.

SUGAR Cosmetics , for example, sells lip balm, but also lip scrubs, makeup, lip gloss, and other related things that can be made and sold online.

You can upsell customers based on past lip balms they buy, create scent-centric bundle packages, and reach new audiences by expanding your product line.

Learn more: How to Start a Makeup Brand Online

2. Choose a catchy lip balm business name

If it looks like you found a target market and good products to sell, you’re ready to start planning your brand. This means choosing a business name and logo—both of which will ideally go on your lip balm packaging. Customers like brands with a captivating story, so tying that into your name and logo will help attract attention.

FREE TOOL: Cosmetic Business Name Generator

An easy way to find a lip balm business name is using a cosmetic business name generator . Simply type in a keyword for your business, for example, “sky,” and the generator will create business name ideas and instantly check domain name availability for your online store.

3. Write a business plan

A business plan guides your entire journey as a lip balm maker and business owner. It helps you properly analyze your competitors so you can stand out in the market, understand what your target audience is looking for, and build a solid plan for promoting your new business.

When writing a business plan, ask yourself: What’s the goal for my products? Do I want to be a brand name sold in stores like Anthropolgie? Or do I want to create a white label or private label brand for big stores like Target or Walmart? Do I want to be a premium brand sold only in my retail and online store?

Determine your goal and keep it in mind as you create your brand.

Before you write your business plan, read through the following business plan example . You can download a copy in Microsoft Word or Google Docs and use it to inspire your own planning.

4. Consider legal requirements

Do some due diligence around manufacturing and packaging practices. Depending on where you operate the business, you’ll need to comply with local health and safety standards before selling homemade lip balm to the public. You may want to look into any business licenses you’ll need to sell in your region.

If you’re selling in the United States, a good place to start is the FDA’s Small Business & Homemade Cosmetics Fact Sheet . If you’re selling in Europe or the United Kingdom, read the European Commission’s cosmetics regulations guide .

5. Start marketing your homemade lip balm business

Now that you have the instructions for your very own homemade lip balm recipe, you can start turning your new product into a business. And one of the primary channels where you can find an audience of potential customers for your DIY lip balm is online.

While there are a multitude of digital channels you can explore for your homemade lip balm, one of the first steps to building an online presence is to build your own online store . You then have a digital home to display your handcrafted products—and a central place to drive all the traffic you might drum up on other channels.

While an online store is a good place to get started with marketing your homemade lip balm online, there are other channels you should explore, including:

• Instagram . Create beautiful images of your products to share with followers, connect with potential brand evangelists to build an influencer marketing strategy, and offer behind-the-scenes peeks of how you make and use your DIY lip balm.
• Pinterest . There’s certainly no shortage of beauty and cosmetic products on Pinterest. As another visual social media platform, Pinterest is a fantastic place to boost discoverability. Creating beautiful pinned images can help you find new customers.
• Giveaways and contests . Many retailers have built successful strategies around giveaways and contests. They offer the opportunity to increase your customer base, introduce your products to new customers, and grow your business as a result.
• Email marketing . Deliver news, promotions, and product launch details right to your customer’s inboxes. Create email marketing campaigns to increase return buyers, offer personalized product recommendations, and increase buyer loyalty.

With a lip balm brand, you’re going to put a heavy emphasis on your visual marketing, which is why platforms like Instagram and Pinterest will be so powerful.

Create branded emails in minutes with Shopify Email

With Shopify Email, you can easily create, send, automate, and track email campaigns, all from your Shopify admin—no coding required.

While many retailers may start out making money online , don’t discount in-person sales. To reach new audiences and experiment with new products and income streams, consider setting up face-to-face sales opportunities with your customers.

Homemade lip balm, either as a standalone product or as part of a line of beauty products, can be packaged up and presented beautifully for in-person sales. Whether you prefer to set up a market booth at local craft fairs or attend flea and farmers markets, DIY lip balm creators have a wealth of opportunities to take advantage of in-person sales.

Or, if you prefer to dabble in temporary retail, you can try running your own pop-up shop , or a “pop-in” shop at a beauty or cosmetics store.

At these events, not only can you make face-to-face connections with retail customers, you can also chat with potential wholesale customers.

If that isn’t enough, there are a wealth of other reasons homemade lip balm makers should consider in-person sales:

• Befriending fellow entrepreneurs and crafters. Connecting with your customers may be priority No. 1, but meeting other entrepreneurs is another major benefit. You can get inspiration or new ideas for products and marketing tactics.
• Find wholesale customers.  In-person sales afford retailers the opportunity to find potential wholesalers, giving you the chance to get your homemade lip balm into stores and in front of their built-in customer base.
• Experimentation.  One of the advantages in-person sales has is the ability to experiment and get immediate feedback. You can offer demonstrations, address customer queries then and there, and determine whether a new collection or marketing method is working.
• Build your email list and branded social channels.  In-person interactions give you the chance to encourage customers to sign up for your email subscriber list and follow you on your social channels to get regular news and updates from your brand.

Doing a little due diligence can set yourself (and your bottom line) up for success. Check out our guide to nail the in-person selling experience , and do some homework on how mobile point-of-sale systems like Shopify POS can help you sell anywhere.

Building a successful lip balm business

Now that you’re well-versed in how to make lip balm to sell, you can start your very own side hustle . Scratch your creative itch by fashioning your own recipe, then use the above marketing tactics to get your homemade products in front of potential customers.

Soon you’ll start to see the benefits of running your own business selling lip balm and reap the rewards of a profitable business and higher revenue.

Lip balm business FAQ

Can you make money selling lip balm.

Yes, many brands make money selling lip balm online and in person. You’ll want to do market research to determine what types of balms are selling and who is buying them. Then create a unique product for that audience. Brands also extend their product line to other skin and body care products to attract more customers and increase sales.

How do I start a lip balm business?

Do market research. Build your brand. Create a lip balm business name. Write a business plan. Make lip balm to sell. Build an online store. Market your lip balm.

How much does homemade lip balm sell for?

You can sell lip balm for as low as $1.50 per tube or container, or up to $10 for special variations. Try to keep your lip balm priced between $4 to $7 per tube to stay competitive. Offer bundle packs to increase average order value and sell more lip balm online.

Does lip balm need FDA approval?

Cosmetic products and ingredients do not need FDA premarket approval. So you can create lip balm and sell it without getting an OK from the government. However, the FDA can enforce action against products on the market that don’t comply with the laws mentioned in their guidelines.

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Guide to Starting a Small Business

How to start a lip balm business.

In a world where personal care and wellness have become paramount, starting a lip balm business can be a rewarding venture. Lip balm is a staple in everyone's daily routine, making it a market with consistent demand. This guide will walk you through the essential steps to kickstart your own lip balm business, from planning and production to marketing and sales. 1. Research and Planning: Begin by conducting thorough market research to understand the trends, target audience, and competitors in the lip balm industry. Identify the unique selling points that will set your brand apart. Develop a comprehensive business plan outlining your goals, budget, and strategies for production, distribution, and marketing. Establishing a clear roadmap will guide you through the complexities of the business and enhance your chances of success. 2. Formulate Your Lip Balm: Invest time in creating a quality lip balm formula. Research and experiment with various ingredients to ensure your product stands out in terms of effectiveness and appeal. Consider factors such as moisturizing properties, flavor options, and potential therapeutic benefits. It's crucial to strike a balance between using natural ingredients and maintaining cost-effectiveness to meet market demands.

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Table of contents, how to start a lip balm company.

• 6 April, 2024

Starting a Lip Balm Business

If you’re passionate about beauty and looking to start your own business, venturing into the lip balm industry can be a lucrative opportunity. Before diving in, it’s essential to have a comprehensive understanding of the market and the latest consumer trends.

Market Overview

The lip care market has experienced significant growth in recent years. In 2020, the global lip care market reached a value of $1.98 billion and is projected to have a compounded annual growth rate of 5.9% through 2028 ( Shopify ). This growth is driven by factors such as increasing awareness of lip health, rising demand for natural and organic products, and the need for moisturizing solutions to combat chapped lips.

Lip balm, in particular, is in high demand due to its moisturizing properties that prevent chapping, especially during harsh weather conditions or due to environmental factors like air conditioning, heating, and wind ( Bo International ). The global lip balm market is expected to expand at a CAGR of 9.28% during the forecast period, reaching USD 1363.41 million by 2028 ( LinkedIn ).

Consumer Trends

Understanding consumer trends is crucial for success in the lip balm business. Here are some key trends to consider:

Lip care is not limited to a specific gender. Studies show that 81% of women and 39% of men use lip products daily, with women averaging about 2.35 times per day. This indicates a broad market potential for lip balm products.

Consumers are increasingly seeking natural and organic lip care solutions. They are conscious of the ingredients in their products and prefer options that are free from harsh chemicals and artificial additives. Offering natural and organic lip balm formulations can help you cater to this growing demand.

Sustainability is an important factor for many consumers. Using eco-friendly packaging materials and emphasizing sustainable practices in your production process can attract environmentally conscious customers.

To effectively tap into the lip balm market, it’s essential to conduct thorough market research and identify target demographics, preferences, and emerging trends. This will enable you to develop lip balm products that align with consumer demands and stand out in a competitive market.

To learn more about starting a lip balm business, including developing a business plan and understanding the lip balm manufacturing process, check out our comprehensive guide on lip balm business startup .

Lip Balm Pricing Strategies

When starting a lip balm business, determining the right pricing strategy is crucial for success. It’s important to find a balance that attracts customers while also ensuring profitability. In this section, we will explore two key pricing strategies: pricing range and competitive pricing.

Pricing Range

The pricing range for lip balms can vary depending on various factors, including the quality of ingredients, packaging, branding, and target market. It’s essential to consider these factors when determining the price of your lip balm products.

According to Shopify , homemade lip balms can be sold for as low as $1.50 per tube or container, or up to $10 for special variations. However, it is recommended to stay within a price range of $3 to $4 per tube to remain competitive in the market.

Setting a reasonable and affordable price is important to attract customers, especially when starting a new lip balm business. Conducting market research to understand the pricing trends and preferences of your target audience can help determine the optimal price range for your lip balm products.

Competitive Pricing

Competitive pricing is an essential aspect of the lip balm business. It involves setting prices that are comparable to those of your competitors while considering the value and unique selling points of your products.

To determine competitive pricing, research the prices of similar lip balm products in the market. Analyze the pricing strategies of your competitors and identify the price points that resonate with your target audience.

However, it’s important not to solely focus on matching or undercutting prices. Consider the quality, ingredients, branding, and additional value your lip balm products offer. Highlight the unique features and benefits that set your products apart from the competition. This will allow you to justify a slightly higher price point if your products provide exceptional quality or unique formulations.

Remember, competitive pricing doesn’t always mean offering the lowest price. It’s about finding the right balance between price, quality, and value to attract customers while ensuring profitability.

In the lip balm business, pricing strategies should be flexible and adaptable. As your business grows and you gain more insights into your target market, you may need to adjust your pricing accordingly to remain competitive and meet customer expectations.

By carefully considering the pricing range and implementing competitive pricing strategies, you can position your lip balm business for success in a growing market. Remember to regularly evaluate and refine your pricing strategy to stay competitive and meet the evolving needs and preferences of your customers.

Lip Balm Manufacturing and Packaging

When starting a lip balm business, it’s essential to consider the manufacturing and packaging aspects of your products. This section will explore two key elements: homemade recipes and packaging options.

Homemade Recipes

Creating your own lip balm recipes allows for customization and the use of natural ingredients. One popular homemade lip balm recipe includes four simple ingredients: beeswax pellets, coconut oil, shea butter, and peppermint essential oil. This recipe yields approximately 4-6 tubes of lip balm ( Lemons, Lavender, & Laundry ).

To ensure the quality and longevity of your lip balm, it’s important to follow best practices. Homemade lip balm typically has a recommended shelf life of within a year due to the natural ingredients used in the recipe. Additionally, to avoid a grainy texture, which can result from crystallization of shea butter, heat the shea butter to 175°F in a double boiler for 20 minutes before adding it to the recipe or place the lip balm in the refrigerator for quick cooling to prevent crystallization. Adjusting the amount of beeswax and coconut oil in the recipe can also help control the consistency of the lip balm ( Lemons, Lavender, & Laundry ).

Experimenting with different oils and scents in small batches can allow for customization and help you find the perfect formula for your lip balm products ( Moms Need To Know ). Remember to store your homemade lip balm in a cool place or the refrigerator during hot weather, especially if it contains coconut oil, as it may melt in warm temperatures.

Packaging Options

Choosing the right packaging for your lip balm products is crucial for attracting customers and protecting the product. There are various packaging options available, depending on your brand aesthetic and target market. Some common lip balm packaging options include:

• Lip balm tins
• Rectangular lip balm tins
• Round lip balm tins
• Lip balm jars (glass, paperboard, plastic)
• Lip balm tubes (round, oval, paperboard, slimline) ( DIY Skincare Business )

In addition to selecting the right container, you may also want to consider adding lip balm safety seals, such as lip balm labels with a tab, shrink wrap, or the use of washi tape, to ensure the integrity of your products during shipping and handling.

When designing your packaging, it’s important to align it with your brand identity to create a cohesive and appealing product. Consider factors such as color schemes, fonts, and branding elements that represent your company’s values and target audience. Eye-catching and visually appealing packaging can help differentiate your lip balm products in a competitive market.

By crafting homemade lip balm recipes and choosing suitable packaging options, you can create a unique and high-quality product for your lip balm business. Taking the time to experiment with different ingredients and packaging designs will allow you to develop a product that stands out in the market and appeals to your target audience.

Marketing and Branding

When starting a lip balm business, effective marketing and branding strategies are essential for establishing a strong presence in the market. In this section, we will explore two key aspects of marketing and branding: brand identity and the benefits of private labeling.

Brand Identity

Developing a unique and compelling brand identity is crucial for standing out in the competitive lip balm market. Your brand identity encompasses the values, personality, and visual representation of your business. It is what sets you apart from other lip balm companies and resonates with your target audience.

To create a strong brand identity, consider the following elements:

Mission and Values : Clearly define your mission and core values. This will help shape your brand’s purpose and guide your decision-making process.

Target Audience : Understand your target market and their needs. Tailor your brand messaging and product offerings to appeal to your specific audience.

Logo and Packaging : Design a professional and visually appealing logo that reflects your brand’s personality. Invest in high-quality packaging that not only protects your lip balm but also communicates the essence of your brand. Consider factors like sustainability, convenience, and aesthetics when selecting packaging options.

Brand Voice : Develop a consistent brand voice that aligns with your target audience. Whether it’s friendly, informative, or luxurious, your brand voice should be reflected in all your marketing materials and communication channels.

Storytelling : Share the story behind your brand. Connect with your audience on an emotional level by conveying the inspiration and passion behind your lip balm business. This helps build trust and fosters a deeper connection with your customers.

By investing time and effort into crafting a compelling brand identity, you can differentiate your lip balm business and create a lasting impression in the minds of consumers.

Private Labeling Benefits

Private labeling is a popular option for entrepreneurs looking to start a lip balm business. It involves partnering with a private label lip balm manufacturer who provides ready-made products that you can customize and sell under your own brand name. This approach offers several benefits:

Quality Assurance : Private label manufacturers like Bo International focus on producing premium lip balm products that adhere to high-quality standards. By partnering with them, you can offer your customers a reliable and consistent product that meets their expectations ( Bo International ).

Customization : Private labeling allows you to customize the lip balm products to align with your brand identity. You can choose from a variety of flavors, scents, colors, and packaging options to create a unique product line that stands out in the market.

Efficiency : By partnering with a private label manufacturer, you can save time and resources on the manufacturing process. They handle the production, quality control, and packaging, allowing you to focus on other aspects of your business.

Customer Support : Reputable private label manufacturers often provide exceptional customer care and assistance. They can guide you through the process, offer product recommendations, and help troubleshoot any issues that may arise.

Private labeling offers a convenient and efficient way to establish your lip balm business without the need for extensive manufacturing capabilities. Partnering with a reliable private label manufacturer ensures that you can deliver high-quality products to your customers while building your brand.

In the next section, we will explore distribution strategies to effectively reach your target market and expand your lip balm business.

Distribution Strategies

When starting a lip balm business, implementing effective distribution strategies is crucial for reaching your target market and maximizing sales. In this section, we will explore two key distribution strategies: online platforms and beauty marketplaces.

Online Platforms

Leveraging online platforms is an essential distribution strategy for any lip balm business. The digital landscape provides a vast reach and enables direct access to a wide range of potential customers. By establishing an online presence, you can effectively showcase your lip balm products and connect with online shoppers.

There are various online platforms to consider, such as:

E-commerce Websites : Creating your own e-commerce website allows you to have full control over your brand image, product listings, and customer experience. It provides a platform to showcase your lip balm products, offer detailed product descriptions, and facilitate secure online transactions. Incorporating user-friendly navigation and a visually appealing design can enhance the overall shopping experience and encourage customer loyalty.

Online Marketplaces : Utilizing established online marketplaces like Amazon, Etsy, or eBay can provide immediate exposure to a large customer base actively seeking beauty products. These marketplaces attract a diverse range of shoppers, allowing your lip balm business to tap into a wider market. It’s important to optimize your product listings, leverage customer reviews, and employ effective marketing techniques to stand out in a competitive online marketplace.

By combining your own e-commerce website with online marketplaces, you can leverage the strengths of each platform and reach a broader audience.

Beauty Marketplaces

In addition to general online platforms, beauty marketplaces specifically cater to customers seeking beauty products. These marketplaces attract individuals looking for new and innovative beauty items, making them an ideal distribution channel for lip balm businesses.

Some popular beauty marketplaces to consider include:

Sephora : Sephora is a well-known beauty marketplace that offers a wide range of cosmetic products. Partnering with Sephora can provide your lip balm business with increased visibility and access to a dedicated customer base interested in beauty and skincare products.

Ulta Beauty : Ulta Beauty is another prominent beauty retailer that operates both online and in physical stores. Collaborating with Ulta Beauty can give your lip balm products exposure to a diverse customer base, allowing you to tap into their loyal customer following.

When selecting beauty marketplaces, it’s important to consider marketplace fees, brand alignment, and the potential exposure your lip balm business can gain. Each marketplace may have specific requirements and guidelines for selling products, so familiarize yourself with their policies to ensure a smooth distribution process.

Remember, monitoring and adapting your distribution strategy is crucial for sustained success in the competitive beauty industry. Stay updated on performance metrics, customer feedback, and market trends to make informed decisions and remain competitive ( Lash Lift Store ). By effectively utilizing online platforms and beauty marketplaces, you can expand your lip balm business’s reach and connect with a broader customer base.

Promotional Lip Balm Strategies

When starting a lip balm business, it’s essential to implement effective promotional strategies to increase brand awareness and drive sales. In this section, we will explore two key promotional lip balm strategies: marketing events and reselling opportunities.

Marketing Events

Marketing events provide an excellent platform to showcase your lip balm products and connect with potential customers. By distributing promotional lip balm at events such as expos, networking events, trade shows, and speaking engagements, you can create a lasting impression on attendees. According to Perfect Imprints , promotional lip balm can be a versatile item that reaches many target markets.

Here are some ways to utilize promotional lip balm at marketing events:

Trade Shows : Distributing branded lip balm at trade shows can create an experiential memory for customers, making your booth particularly memorable in a crowded event where it’s challenging to stand out.

Networking Events : Providing branded lip balm at networking events can serve as a kind gesture to offer new connections instead of a traditional business card. Your contact information printed on the lip balm can provide long-term visibility and serve as a reminder of your brand.

Speaking Engagements : Including lip balm as a giveaway at speaking engagements can cater to all target markets and increase brand awareness. It can be easily included in goodie baskets, bags, and giveaways, ensuring that attendees have a useful and memorable item to take home.

Reselling Opportunities

Reselling lip balm can be a profitable venture, especially when targeting specific market segments. According to Perfect Imprints , reselling lip balm, particularly those with added value like SPF, can tap into the market of tourists who may have forgotten their lip SPF.

Here are some reselling opportunities for lip balm:

Pop-Ups : Setting up pop-up stores in high-traffic areas, such as tourist destinations or local markets, can attract customers looking for lip balm on the go. Promote the unique features and benefits of your lip balm, such as added SPF or natural ingredients, to stand out from the competition.

Counter Sales : Collaborating with local retailers, beauty salons, or spas to sell your lip balm at their counters can provide an additional sales channel. Position your lip balm as a high-quality, affordable option, and ensure that the retailer understands the unique selling points of your product.

By leveraging marketing events and reselling opportunities, you can effectively promote your lip balm brand, reach a wider audience, and increase sales. Remember to showcase the unique qualities of your lip balm and provide an exceptional customer experience to leave a lasting impression.

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How to Start a Lip Balm Business on a Small Budget

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With home-based businesses and side hustles being all the rage, it’s no wonder I’ve seen a huge increase in emails asking how I managed to start a lip balm business on a small budget of $100.

For my seasoned readers, it’s no secret that that’s exactly how I began my journey in the handmade skincare industry years ago.

• A $100 loan from my personal checking account
• A ‘real’ full-time job (i.e., not a lot of extra time)
• An apartment with just enough room in the coat closet for a printer
• Barely enough counter space in the kitchen (aka my ‘office’) to fit my computer…

…I built a thriving, profitable, scalable lip balm business.

And ‘poof’, here I am. Three skin care product lines, an e-commerce coaching blog, and a decade of experience later, eager to dish out my ‘budget business’ tips and secrets on a shiny, silver platter 🍽.

This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links (at no cost to you). Please  read the disclosure  for more information.

Why Sell Homemade Lip Balm

A common reader question: “Why are you always so insistent on talking about making lip balm to sell, specifically?”.

Just like any business, it’s all in the numbers.

Yes, you can ABSOLUTELY be successful with a number of handmade skincare products that fit your target market . If initial startup costs aren’t a concern for you, by all means, have a great time building a diverse line!

But if you want to start a business on a small budget that has nearly zero risk factors, handmade lip balm has your name all over it.

Let’s begin our discussion with just 5 reasons (out of more than 20 that I could name right now) that this is a winning product to launch a business around…

1. Low Cost to Make Natural Lip Balm

When it comes down to ingredients, you only need 3-5 butters and carrier oils (depending on the type of lip balm you make), bringing the cost of the actual recipe base down to about ten cents a tube.

For full transparency, that’s just the beginning of pricing your lip balm …you’ll also need to factor in containers, labels, shrink wrap, box filler, shipping boxes, website fees, etc.

However, in terms of initial recipe costs, lip balm has the lowest you’ll find .

2. Global, Unisex Market for Lip Balm

Who doesn’t know what lip balm is or how to use it?

This is by far the most commonly used skin care product on the market , and according to U.S. Pirg, you can find 81% of women and 39% of men using it EVERY DAY in the United States (source) .

This isn’t just a US trend – Asia Pacific has the largest revenue share of lip care products, with Europe the second-largest regional market (source) .

3. Growing Lip Balm Market

What’s more important for YOU to know, soon-to-be entrepreneur, is that the market for lip balm is GROWING.

In fact, the global market for lip care products is expected to grow at a 5.9% rate between 2021 and 2028 (thanks to more widespread knowledge about the dangers of prolonged sun exposure).

This isn’t just any type of lip balm though. People are wanting natural and organic versions with a greater emphasis on sustainable packaging.

4. Lip Balm is Easy to Create

Another reason to start a handmade lip balm business is that as long as you have the right tools, it is super easy to make. You don’t need to spend any money on formulation courses or get fancy equipment.

The ingredient list is super small, you don’t need a lot of space, and the actual time it takes to make lip balm is lightning-fast compared to other recipes.

Easy, easy, easy.

5. Infinite Ways to Customize Lip Balm

I don’t care WHO your target market is, there IS a way to brand your lip balm so it fits your unique customer. You have so many variables to work with:

• Scent – With the help of skin-loving essential oils , you can come up with endless natural scent combinations (I’ll explain how I did that on a budget below).
• Containers – Lip balm tubes, lip balm tins, lip balm jars…all available in different materials (plastic, aluminum, glass, paperboard, etc.)
• Labels – Between the actual label material, color palette on any graphics and typography, and the fonts you use on your labels , the same exact lip balm recipe can be geared towards a variety of audiences simply based on visual branding choices.
• Production descriptions
• Product photography
• Overall website design

Is Selling Lip Balm Profitable?

I’m sure you’re wondering if after the ‘extra’ costs (such as labels and website fees) handmade lip balm is still actually profitable and worth creating a business around.

As long as you price your products correctly from the beginning (which is the BIGGEST pitfall of most handmade business owners) and know how to market yourself, you’ll make a profit (obviously assuming you have a quality lip balm recipe ).

Once your business is off the ground and making money, you’ll be able to bulk purchase your supplies , bringing the cost of each unit down further while keeping your retail price the same.

Your profits should only go up over time if you are using your ‘business brain’ along with your ‘creative maker brain’.

Types of Trending Handmade Lip Balm

We know from the analysis reports above that if you’re starting a lip balm business right now, a natural version is the way to go.

Even within this ‘chemical-free’ segment, there are still several directions you could take that are trending:

Beeswax Lip Balm

Beeswax lip balm is popular because of its options for 100% organic ingredients and high melting point. This is necessary if you’ll be making and shipping to warmer climates.

Vegan Lip Balm

The demand for vegan products is increasing in the U.S. specifically, so this is a great direction to explore.

Keep in mind that most individuals in this target market are also looking for sustainable options , and it would be a challenge to start a lip balm business for under $100 with eco-friendly packaging.

Tinted Lip Balm

Tinted lip balm is also getting a boost in sales thanks to the ‘no makeup makeup’ look.

Though popular, this would be more of an ‘add-it-on-later’ product to your line if you don’t have an audience yet; lip color will narrow down your possible customer base while increasing material costs for the colorants (micas and/or alkanet root).

My two cents? Keep it simple and keep costs low by sticking to a beeswax lip balm base.

Need a winning handmade lip balm tutorial? This tried-and-true organic beeswax lip balm recipe has earned me THOUSANDS of dollars in revenue and an over 50% repeat customer rate (for comparison purposes, the average repeat purchase rate for ecommerce companies falls  between 20 to 40% ) .

Ingredients & Supplies for Starting a Lip Balm Business on a Small Budget

In my organic lip balm recipe tutorial , I have a list of the supplies and ingredients I recommend to full-time skincare entrepreneurs.

I stand behind all of the products I link to (you can find the same exact ones in my own workspace), but there are ways around these items/costs if you need to start a lip balm business on a smaller budget:

Double Boiler

I currently use this double boiler for all of my skin care recipes, but when I was first making lip balm, I used a saucepan from my kitchen and a stainless steel bowl I found at the dollar store.

~ $1.25 (up to $1.25 of the $100 budget)

I swear by my current kitchen scale and use it for my recipes and shipping products, but again, this may be something you have to work up to. You can start with a cheaper kitchen scale like this , but upgrade when you can – you get what you pay for and want to make sure your measurements are consistent.

~ $10 (up to $11.25 of the $100 budget)

You’ll want a pack of stir rods once you begin making several different recipes at a time. Until then, you can absolutely get away with just having ONE that you can find at Target for a dollar or two on the discount end caps.

(Bonus points if you can find a glass cocktail stirring rod with a cute little decoration on top like this mermaid tail . Check those sale sections!!!)

~ $2 (up to $13.25 of the $100 budget)

You can never have enough pipettes as a skincare maker, which is why I usually recommend this larger set of 200 . However, when on a budget you don’t need that many to begin with and can save a few dollars by getting a smaller set of 100 (3 mL) pipettes.

~ $8 (up to $21.25 of the $100 budget)

This lidded ramekin set is awesome if you’re prepping several batches of a recipe ahead of time. When you’re making one batch at a time and are just using it to help measure ingredients on the scale, grab a single, cheap glass dish from the dollar store.

~ $1.25 (up to $22.50 of the $100 budget)

If you want a quality recipe and return customers, there’s no cutting corners with ingredients. Quality is important. I like this organic beeswax , but there are many to choose from online in yellow and white options.

~ $15 (up to $37.50 of the $100 budget)

Shea Butter

Same as above. Stick to quality organic shea butter . If you end up getting a different kind, just make sure it’s unrefined to get the best results.

~ $15 (up to $52.50 of the $100 budget)

Coconut Oil

When you’re purchasing your organic coconut oil , make sure it is the 76° F type that is solid at room temperature (there is another type called fractionated coconut oil that always remains liquid).

~ $7.50 (up to $60 of the $100 budget)

Essential Oils

In my Natural Skin Care Recipe Book , I provide 24 different lip balm scent combinations with essential oils. You absolutely do NOT have to have that many in your shop to do well.

When I first started, I had 7 different scent combinations from just 3 small bottles of essential oil:

• Unscented (fragrance-free, no essential oils at all)
• Simply Lavender (only organic lavender essential oil )
• Simply Mint (only organic peppermint essential oil )
• Simple Orange (only organic orange essential oil )
• Lavender + Peppermint
• Lavender + Orange
• Orange + Peppermint

~$25 (up to $85 of the $100 budget)

*Budget Business Tip: I offer the option for custom scent blends on bulk orders – if a customer wants a scent that I need a new type of essential oil for, I build that into the price of the order (being fully transparent with the customer, of course) and *boom* a new bottle of essential oil paid for…PLUS a new scent blend to add to the ‘regular’ product line.

Tubes are the best-selling type of container, and this set of 50 lip balm tubes is a great price to get started.

~ $8.50 (up to $93.50 of the $100 budget)

Printing your own labels at home is definitely the way to get started – professional printing has a pretty hefty bill when ordering small quantities. Get a small pack of tamper-proof lip balm labels like this and only print what you need for product photos, and then only as needed for incoming orders.

~ $5.50 (ending at $99.00 of the $100 budget 🎉)

More Tips for Building a Lip Balm Business on a Small Budget

The costs of making lip balm go beyond just the recipe, but you can still be thrifty at the beginning of your business journey.

You’ll want to upgrade some of the ‘shortcuts’ below as your business and branding develop over time to give yourself a professional edge.

If you’re going to sell lip balm online, you need to have access to a desktop computer. It doesn’t need to be fancy. You could even use one at the library for free.

Graphic Design Program

I started my lip balm business before the days of PicMonkey and Canva. I did just fine by designing my labels in Microsoft Word, so you don’t technically need a graphic design program at all.

That being said, Canva is an amazing free site that has tons of tutorials and templates (which can be used for your labels, website graphics, and creating online marketing visuals).

Having your own website as an established business is worth the cost once you have consistent sales coming in. The cost of a custom domain plus the website fee is about ~$350 annually, depending on your host and platform.

That may seem like a lot, but having your own e-commerce site brings down transaction fees, listing fees, and makes sense when you have hundreds of sales a year.

You can even get started on Shopify for $1 a month (for the first 3 months).

If you’re not ready for that yet, choosing a marketplace such as Etsy is a great way to start a lip balm business on a small budget. Creating a ‘shop’ on Etsy is free, and you only pay 20 cents per listing (keep in mind that this doesn’t include any fees that you will incur when you make a sale).

*If you decide to go this route and have never had an Etsy account before, you can get your first 40 Etsy listings for free by clicking here .

Check out my blog post on Etsy vs. Shopify to help you make your decision!

Printer and Ink

If you don’t have a printer at home OR the labels you get require a different type of printer, don’t forget about your local office supply store.

You can provide the printing department with a digital version of your labels and they can print them for you for about $1 a page (much cheaper than purchasing a brand-new laser printer!).

If you just need a basic printout of a shipping label or invoice, you can print those out at the library for around 10 cents a page.

Shipping boxes

You know what can be expensive? Shipping materials.

Story time. I just so happened to work at a department store when I was first starting my lip balm business. The shoeboxes that Toms® used at that time were PERFECT shipping boxes, and I’d leave at the end of the day with bags of them (the security team that had to check to make sure the boxes were empty were NOT very fond of this practice…but don’t mess with a girl on a business mission!).

The whole point being, you can absolutely reuse old shipping boxes for your orders… just make sure to note this on your site somewhere (“Your order will be shipped in a pre-used box…thanks for helping us love the Earth!”) .

If you end up building a luxury brand down the road, make sure you upgrade to shipping materials and packaging that match what your customer would expect from a higher product price point.

Business Cards & Thank You Notes

Some people say that business cards are a must-have shipping inclusion. They do add a touch of professionalism if your budget can handle it, but they’re not necessary at the beginning.

What IS necessary (and a major factor in getting return customers) is including a sincere business thank you note with every order.

I used this set of printable note cards for YEARS as a super affordable ‘thank you note’ option. I printed my logo at the top and social media handles at the bottom, which removed the need to include a business card as well.

If there’s no room in your budget for printable cards, you can even write a personalized ‘thank you’ directly onto the packaging slip that you can print with your shipping label.

This extra detail WILL stand out and make you memorable.

Photo Shoot Tips

Congratulations on starting your lip balm business at a time when cell phones have legit amazing cameras built in!

If you have a phone and a window with filtered sunlight, you’re all set to take your product photos .

Eventually, having a photo tent like this can come in handy for consistent lighting (that’s what I’m using in the picture of myself below).

Props can get a bit pricey if you are wanting to use botanicals and other ‘fresh-looking’ details. Consider alternatives, such as the dried herb kit I purchased back in 2012 to use in my product photos. I store them in a plastic tub and they’re still in great shape and handy to this day.

How Bulk Orders Scaled My Lip Balm Business

Time for the real business-building secret.

The best way to build a business, even in the age of computers, is by word of mouth.

I’m not lying when I say that people LOVE this lip balm recipe , and once they get a tube, they come back for more.

So the issue comes down to getting those tubes INTO THE HANDS OF ALL THE PEOPLE.

Enter the power of bulk orders.

Let’s say someone purchases a bulk order of 50 lip balms from your site to use as wedding shower favors. Even though they got a custom label (“❤️ Mike + Christine, 6/12/2022 ❤️”), you’ll still want to include your website URL somewhere.

You now have 50 random people who didn’t know about your site before that are using your lip balm every day and have your info on hand when their tube runs out.

They come back to order a few for themselves (and for gifting purposes), but then also want to use your custom label services to use as a promotional item for their business.

You never know when it will fall into the hands of a company that wants to order a MASSIVE amount, such as the order I received for 1,500 custom-label lip balms shown below:

Bulk Order Tips for a Small Budget Lip Balm Business

I’m sure you’re thinking, “If I need to purchase bulk quantities of tubes and ingredients, this is VERY different than your promise of starting a lip balm business on a small budget.”

And my response is simple: just build in a 2-3 week processing time (or more, depending on the order size).

Take the same product photo of one lip balm and list it in singles, sets of 3, 25, 50, 75, and 100.

After the bulk order payment goes through, order any extra ingredients and supplies that you need.

When you take the time to price your bulk listings correctly, eventually you will be able to buy supplies in bulk to increase your profit margin.

If you want to offer other custom details, such as the gift box and ribbon I have in the photo below, you can also do this on a budget!

• Don’t be shy about asking bulk packaging companies to send samples – I had one small jewelry box sample like the one below to use in a product photo as a gift wrap option for large orders, and I didn’t purchase any until I got this bulk request for 500 boxed-up lip balms.
• Simply purchase a sample size variety pack of ribbon and list the colors as options on your site, only purchase the larger size spool as customer requests come in.

Example Lip Balm Listings for Inspiration

Not convinced you can create an entire business with JUST lip balm?

You’d be amazed at how many different sets you can offer to make your website look ‘full’ without the addition of other skincare products.

In my first product line, I had:

• Lip balm singles
• Mix and match sets of 2
• Sets of 3, 6, and 10
• Custom label bulk orders of 25, 50, 75, and 100 for baby showers, wedding showers, and business promotional items
• Seasonal lip balm sets
• Tea lip balm sets
• Herbal lip balm sets
• Lip balm subscriptions (monthly, quarterly, annual options)

Checklist for Your Lip Balm Business

All of the above tips and tricks for starting a lip balm business on a small budget were just to get you started.

To make sure you’re setting yourself up for success, also visit the Handmade Skincare Business Startup Checklist to walk you through the process in detail.

Be sure to request access to our private community Facebook group, DIY Skin Care Biz , where you can ask questions, get feedback, and be inspired as you grow your handmade business!

Grow Your Skin Care Business!

Browse through the resources below to boost your handmade business visibility and profitability!

As a seasoned and certified Aromatherapist, Essential Oil Specialist, and Organic Skin Care Formulator, Christine is dedicated to promoting holistic wellness through handcrafted personal care products. With a passion for empowering others, she also offers expert guidance as an E-commerce Business Coach, helping aspiring entrepreneurs turn their dreams into thriving home-based businesses.

Similar Posts

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Home » Blog » Starting a Lip Balm Business – Startup Guide

Starting a Lip Balm Business – Startup Guide

• Rohit Mishra

Starting a lip balm business with private label manufacturing involves researching the market and identifying the target audience. Finding a private label manufacturer who specializes in lip balm is important to produce and package products with your branding and labelling.

Choosing the right lip balm formula with the manufacturer is crucial. Developing a marketing strategy and packaging design to target the chosen audience is also necessary.

Benefits of Starting A Lip Balm Business

Lip balm is one of the products for a lip care routine. A few benefits to starting a good quality lip balm business are-

1. High Demand

Lip balm is in high demand because it helps keep lips moisturized and prevents chapping, a common problem during harsh weather conditions or due to environmental factors like air conditioning, heating, and wind.

2. Low Startup Costs

The lip balm business has low startup costs due to simple and inexpensive equipment, readily available raw materials, and private label manufacturers. This makes it accessible for entrepreneurs to start with a small initial investment.

3. High-Profit Margins

The lip balm business has fewer manufacturing costs with authentic ingredients, resulting in a substantial profit margin. A lip balm is one the highest-selling lip care products and is used extensively by many of the population.

As a blooming and prevalent market demand, the lip balm industry has a good hold in the cosmetic sector. Therefore any investment in this sector can be very beneficial and generate profit.

How To Start Lip Balm Business

To start a lip balm business, it is important to understand the need and demand for the product and follow the following steps.

1. Conduct Market Research

To conduct market research for a lip balm business:

• Identify potential customers and competitors.
• Analyze customer preferences, purchasing behaviour, and pricing trends.
• Collect feedback through surveys or focus groups.
• Use the data to develop a unique selling proposition and create a marketing strategy that appeals to your target audience.

2. Develop A Brand And Product Line

To develop a brand and product line for a lip balm small business, understand your target audience and unique selling proposition. Develop branding elements such as a name, logo, and packaging design while creating a product line with unique formulations and scents that align with your brand values and target audience preferences.

3. Register Your Business

To register your lip balm business, you must choose a legal business structure and register with the appropriate government agencies. This includes obtaining a tax identification number, registering for state and local taxes, and obtaining necessary permits or licenses. This will make the business legal and genuine.

4. Create A Sales And Marketing Strategy

To create a sales and marketing strategy for a lip balm small business, know the target audience, and generate ideas to capture their attention. Develop a website and social media presence to promote your brand and product line. Develop promotional campaigns and discounts to drive sales and customer loyalty.

5. Launch Your Business

To launch your lip balm business:

• Create a launch plan that includes setting a launch date, creating a launch event or campaign, and implementing your sales and marketing strategy.
• Be prepared to fulfil orders and manage inventory.
• Monitor sales and customer feedback to make adjustments to your strategy as needed.

Starting a lip balm business hugely depends on the target audience and the product’s pricing according to the COP with natural ingredients and a third-party product manufacturing company.

How Private Labelling Help In Lip Balm Business

Private label lip balms are cost-effective and flexible and offer greater branding control, leading to higher profit margins and brand recognition. A private label lip balm manufacturer will help with private labelling. Here are top 5 benefits of private labelling.

1. Customization

Private label third-party lip blam manufacturing allows for product customization under a desired brand name. Private label manufacturing for lip balm involves working with a manufacturer to produce custom lip balms. This includes selecting ingredients, formulas, and scents and designing packaging.

2. Branding

Private label manufacturing enables companies to create customized lip balms to create a brand image. Companies can differentiate their products, build brand recognition, and reduce costs by partnering with reliable private-label manufacturers. This helps in enhancing the overall branding of the lip balm product.

3. Quality Control

Private label lip balm manufacturer offer consistent quality control for lip balm products, access to quality ingredients, advanced technologies, and specialized expertise in formulation. They perform rigorous testing to ensure safety, efficacy, and high-quality standards.

4. Cost-Effectiveness

Private-label manufacturing is a cost-effective option for producing lip balm products. By outsourcing to a manufacturer, companies can avoid high costs, leverage established supplier relationships, and benefit from economies of scale. This enables high-quality products to be produced at a lower cost.

5. Time-Saving

Private-label manufacturing saves time in producing lip balm products. By outsourcing to a manufacturer, companies avoid setting up their facilities or acquiring equipment and expertise. This enables companies to focus on other aspects of their business.

Private label manufacturing is good for lip balm manufacturing because it provides cost-effectiveness, quality control, and time-saving benefits for companies. They also ensure less COP and authentic ingredients to customize.

Standing Out – Tips For Making Your Lip Balm Business Unique

The lip balm business is one of the very prevalent and competitive sectors of the cosmetic industry. Therefore it is important to follow the 7 steps to be unique and authentic-

1. Identify Your Unique Selling Point (USP)

A unique selling point (USP) is important for lip balm business manufacturing because it helps to differentiate the product from existing competitors and attract customers. It builds brand recognition, ultimately leading to increased sales and revenue.

2. Develop A Strong Brand Identity

Developing a strong brand identity is important for lip balm small business manufacturing because it helps to establish brand awareness, gain customer loyalty, and make the product stand out from the competitors. This delivers the brand message to the target audience.

3. Offer Customizable Products

Offering customizable products is important for lip balm business manufacturing because it allows companies to meet customers’ specific needs and preferences and build a brand image to be unique from the competitors. Customization makes the product authentic and generates brand value for the company.

4. Focus On Sustainability

Focusing on sustainability is important for lip balm business manufacturing because it helps to reduce environmental impact, meet consumer demand for eco-friendly products, and build a positive brand reputation, ultimately leading to increased sales and revenue.

5. Partner With Influencers

Partnering with influencers is important for lip balm business manufacturing because it can increase brand visibility, build credibility, and reach new audiences, ultimately leading to increased sales and revenue. Influencers can also provide valuable feedback and insights on the product.

6. Offer Limited Edition Products

Offering limited edition products is important for lip balm business manufacturing because it makes market demand go high and increases the feeling of the importance of the product in the audience. It creates an environment of excitement that generates the rand value in the market.

7. Provide Exceptional Customer Service

Providing exceptional customer service is important for lip balm small business manufacturing because it helps to build customer loyalty, generate positive word-of-mouth, and differentiate the product from competitors, ultimately leading to increased sales and revenue.

Lip balm is one of the most in-demand products in the cosmetic industry, it is very important to have authenticity and creativity to stand strong in the market.

Partnering With Bo International For Successful Lip Balm Business

Collaboration with a private label lip balm manufacturer like Bo International can be helpful for a profitable lip balm business. With years of experience manufacturing, developing, and packaging lip balm, Bo International can provide premium products that adhere to exacting standards. They embrace personalization that considers each customer’s particular preferences and needs.

Bo International emphasizes sustainability, which helps the company’s reputation and checks the box for green products. They also offer exceptional customer care and assistance to help businesses grow and succeed. The bottom line is that collaborating with Bo International can help to ensure a sustainable and profitable lip balm business.

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SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS.

2020, SAMPLE BUSINESS PLAN BY AKAMPURIRA BRIAN

This plan is to set up a cosmetic shop in the name of " Briox Cosmetics Enterprise ", which will be located in Easy View Arcade Garage street Mbarara. The cosmetic shop will be a sole proprietorship owned by Akampurira Brian. I will use startup capital of 52,380,000 Uganda shillings. UGX 34,380,000 will be owners’ equity and the remaining UGX 18,000,000 will be a bank loan which will be secured from centenary bank at 10% interest rate. The key personnel at the cosmetic Enterprise will include Senior manager, buying inputs and overall supervisory work, operations and production staff, sales and marketing staff, skin therapy and hairdressing staff, record keeping and accounting, stock control and direct selling staff The key objective of the cosmetic shop will be to provide fresh quality cosmetics to our clients to enable them improve their general skin beauty, to obtain maximum customer satisfaction through continued quality production, to obtain continuous production and supply of our products to the customers, to create customer loyalty to our products such that they become well pronounced in the customer minds. To achieve our objective, the cosmetic shop will employ strategies such as: Offering quality, body skin lotions, oils and herbal cosmetics that help fight the skin diseases made from fresh fruit and vegetable which are nutritious through adequate research and proper mixture of the lotions, oils and herbal ointments to meet the standard skin contents and characteristics of customers in the market through advertisement by use of sign posts, direct selling and radio stations, offering special incentive to our regular clients, offering our cosmetics at relatively lower prices for market penetration, creating a conducive environment for our clients, employing people who understand the meaning of customer care and meaning of quality by giving them samples for use as a way of expanding our markets especially among the young children, youth and women. All this encompasses our strategies that include, communication strategy, supplier relationship strategy, marketing strategy, competitive strategy and human resource strategy. The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health skin booting cosmetics product’ Our mission will be, dedicated at improving the skin health and body look and appearance of our client. "We seek to become the recognized leader in our targeted local and international market for carrying a diverse line of in demand cosmetics including perfumes, makeup, and other accessories that will have a competitive edge towards customer satisfaction and retention at attractive prices. Our major customers will be corporate employees, students, market vendors, tourists and retailers who will be consuming a range of our products including; Perfumes 1st class, Lemon body lotion, Hair relaxer cream, Avocadoes body cream smoother and Hair glow. Our forms/ ways of distribution will include, through Retailers, distributors and wholesalers who will buy and sell in bulk to our final customers which we cannot sell to directly we shall also sell directly to the customers because we have a high customer traffic at our main outlet in Mbarara. We shall as well be using a van that will be leased to distribute to our customers who order in large quantities. In terms of our legal responsibilities, the following taxes apply to our business, sales tax, employees’ income tax, national social security fund and Mbarara Municipal Council Tax and other licenses like trading license, and Uganda National Bureau of Standards license. We shall as well need to the insurance for our business and also carry out other social responsibilities like corporate social responsibility, being environmentally friendly, and ensuring cleanliness of Mbarara town. Our products are costed and priced after comparison with our major competitor’s prices and costing information acquired through market research. We have as well carried out cash flow estimates to ensure that our business does not run out of cash. Our startup capital has been allocated to what we intend to start our business with that is renting building for two months, buying machines for mixing the inputs, Machines, leasing van, buying furniture and fittings, massage equipment, cloths and uniforms and other necessary things to start with including the employee salaries for the first two months. This plan will be effective on 1st January 2018 and that is when my business will begin in Mbarara Easy View Arcade.

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