A lip gloss company is involved in the production, distribution, and sale of different types of lip gloss. Lip gloss can either come as a colorless or slightly colored cosmetic that is applied on the lips to prevent dryness.
Please note that a lip gloss production business also engages in the preparing, blending, compounding, and packaging of both cosmetic and therapeutic lip products such as lipstick, lip stains, lip liner, and lip balm. Lipstick is applied to the lips as part of makeup to boost lip color, texture, and often hydration.
A recent report released by Market Research shows that the Lip Make-Up market in the United Kingdom registered a positive compound annual growth rate (CAGR) of 1.44% from 2015 to 2020 with a sales value of GBP 303.97 million in 2020, a decrease of -10.78% over 2019.
The market achieved its strongest performance in 2018 when it grew by 17.29% over its previous year and its weakest performance in 2020, when it fell by -10.78% over 2019.
Steps on How to Start a Lip Gloss Business in the UK
Table of Content
Conduct Market Research
If you are considering starting a lip gloss business in the UK, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your lip gloss business in the UK should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, give you a clue of what your potential market will be looking out for from a lip gloss business, and also help you operate your lip gloss business in the UK with less stress and of course, build the business to profitability.
a. Who is the Target Market for a Lip Gloss Business in the UK?
- Cosmetic and beauty care retailers
- Beauty salons and spas
- Makeup artists
- All the females and males in and around our target market location.
b. Is Lip Gloss Business in the UK a Profitable Business?
Yes, the lip gloss business in the UK is profitable. A report published by Market Research shows that the fastest-growing segment of the Lip Make-Up market in the United Kingdom between the years 2015 and 2020 was Lip Gloss which registered a CAGR of 1.81%.
The weakest performing segment of the market was Lipstick with a CAGR of 1.17%. In 2020, the Lipstick segment in the United Kingdom Lip Make-Up market accounted for a major share of 51.15%, while Lip Gloss stood in the second position representing 37.88% of the market’s 2020 share.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the lip gloss business in the UK
d. Who are the Major Competitors?
- Makeup Forever
- Bobbi Brown
- Estee Lauder
- Dolce & Gabbana
- Sonia Kashuk
- Napoleon Perdis
- Yves Saint Laurent
- NYX CosmeticsGuerlain
- Charlotte Tilbury Matte Revolution Lipstick
- Rimmel London Provocalips 16HR Kissproof Lip Colour
- Kat Von D Everlasting Liquid Lipstick
- Stila Stay All Day Liquid Lipstick
- A.C. Lipstick
- Clinique High Impact Lip Colour
- Origins Flower Fusion Hydrating Lip Color.
e. Are There City Regulations or Zoning Laws for Lip gloss business in the UK?
Yes, there are regulations and zoning laws for the lip gloss business in the UK. Please note that the UK is comprised of four countries and three separate legal jurisdictions: England and Wales, Scotland, and Northern Ireland.
Each of the three jurisdictions has its own regulations and zoning laws that govern business, although there is significant overlap between them. The legal systems of England and Wales and Northern Ireland are based on common law, while Scottish law is based on a mixture of uncodified civil law and common law.
f. Is There a Franchise for Lip Gloss Business in the UK?
No, there are no franchise opportunities for the lip gloss business in the UK.
g. What Do You Need to Start a Lip Gloss Business in the UK?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Production Facility
- HM Revenue and Customs (HMRC) for Value Added Tax (VAT) and/or Pay As You Earn (PAYE)
- A Corporate Bank Account
- Supplies of ingredients
- Startup Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a lip gloss business are;
Creative Lip Gloss Business Name ideas for UK
- Wet Lips™ Lip Gloss, Ltd.
- Shinny Lips® Cosmetics, PLC
- Beulah Dan® Lip Gloss Production Line Company
- Kiss Daniela® Lip Gloss Production Line Company, Ltd.
- Yvonne Stallone® Lip Gloss Line, Ltd.
- Catty Crème® Lip Gloss, PLC
- Stacey Lorenzo® Lip Gloss Production Line Company, Ltd.
- Jane Lips Culture, Ltd.
- Joy Channel® Lip Gloss Production Line Company
- Brenda Williams® Lip Gloss, Ltd.
- Sharon James® Cosmetics & Lip Gloss, Ltd.
- Madona Duncan® Lip Gloss, Ltd.
- Merry Cosmetics® Ltd.
- Lovelyn Martins™ Lip Gloss, PLC
- Princess Sophie© Cosmetics, PLC
- Rite Moore® Lip Gloss, Ltd.
- Tara Signature™ Lip Gloss, Ltd.
- Lilian Harry™ Lip Gloss, Ltd.
- Rose Rooney© Lip Gloss, Ltd.
- Jessica Lowe® Lip Gloss, PLC
- Plymouth Couture™ Lip Gloss Ltd.
Register Your Business
a. What Type of Business Structure is Best for Lip Gloss Business in the UK?
The United Kingdom has a wide array of options you can choose from if you are looking for a business structure to build your business on. The most important thing is to select a business structure that will best serve your overall business vision and mission.
In the UK, you have the option of starting your business as a Sole trader, Limited company, Private limited company (LTD or Ltd), a Public limited company (PLC), and a Limited liability partnership (LLP) or a Guarantee Company (LBG).
b. Steps to Register a Business in the UK
One of the most important steps to take when starting a business in the UK is to register the business name with the regulating authority. You can register your new business at Companies House on GOV.UK. Please note that the entire process will take you about 30 minutes if you have all the required details ready.
In the United Kingdom, you can register your business online but it will cost you £12 to register a company online (you can pay this fee via PayPal, debit card, or credit card). It takes on average 24hrs for your company to be registered.
Please note that to register a business in the UK, you will need to submit the following documents and information:
- A company name.
- Valid ID
- Address for the company.
- One or more directors’ names and details (if it is just, you that is fine).
- Details of the company shares, shareholding, and shareholders (with at least one shareholder).
- A Memorandum and articles of association.
- Detailed information on anyone who owns a significant interest or control in the company (this means anyone who owns 25% or more shares or voting rights in the company).
c. What Type of License is Needed to Open a Lip Gloss Business in the UK?
- General Business License
- Health and Safety Permit
- Chemical Handlers’ License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Lip Gloss Business in the UK?
You don’t need any certifications to open a lip gloss business in the UK.
e. What Documents are Needed to Open a Lip Gloss Business in the UK?
- Business and liability insurance
- Council Permit
- HM Revenue and Customs (HMRC) for Value Added Tax (VAT) and/or Pay As You Earn (PAYE)
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Insurance Policy
- Contract Document
- Company Bylaws
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering opening a lip gloss business in the UK, you may need to file for intellectual property protection or trademark.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Lip Gloss Business in the UK?
There is no clear-cut startup cost for a lip gloss business in the UK, but available data shows that the cost of starting a lip gloss business in the UK ranges from £150,000 to over £250,000.
b. What are the Costs Involved in Starting a Lip Gloss Business in the UK
- Business Registration Fees – £12.
- Legal expenses for obtaining licenses and permits – £1,300.
- Marketing, Branding, and Promotions – £1,000.
- Business Consultant Fee – £2,500.
- Insurance – £1,400.
- Rent/Lease – £85,000.
- Other start-up expenses include commercial satellite TV subscriptions, and phone and utility deposits (£1,800).
- Operational Cost (salaries of employees, payments of bills et al) – £45,000
- Start-up Inventory – £15,500
- Store Equipment (cash register, security, ventilation, signage) – £1,750
- Furnishing and Equipping the Production Factory – £150,000
- Website: £600
- Opening party: £2,000
- Miscellaneous: £1,500
c. What Factors Determine the Cost of Opening a Lip Gloss Business in the UK?
- The size of the lip gloss business
- The choice of location
- The required licenses and permits
- The type of facility
- The cost of branding, promotion, and marketing of the lip gloss business
- The cost of furnishing and equipping the lip gloss facility
- The cost of insurance
- The cost of registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost for the grand opening of the lip gloss business in the UK
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your lip gloss business in the UK, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Lip gloss business in the UK?
- Supplies (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)
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – £65,000 Per Year
- Human Resources and Admin Manager – £35,000 Per Year
- Production Manager – £34,000 Per Year
- Merchandise Manager – £33,000 Per Year
- Sales and Marketing Manager – £30,000 Per Year
- Accountant – £28,100 Per Year
- Machine Operators – £22,000 Per Year
- Distribution Truck Drivers – £20,000 Per Year
g. How Do You Get Funding to Start a Lip Gloss Business in the UK
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Jessica Lowe® Lip Gloss, PLC is a licensed lip gloss production company that will be located in an industrial area in Lincolnshire, East Midlands. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of 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 deliberate about that to facilitate easy movement of raw materials (chemicals and packaging containers) and finished products (lipstick, lip gloss, lip stains, lip liner, and lip balm).
b. Products and Service
Lipstick, lip gloss, lip stains, lip liner, lip balm et al.
c. Mission Statement
Our mission is to establish a standard and world-class lip gloss production company that in our own capacity will favorably compete with leaders in the industry.
Our vision is to build a business that is beyond selling lip gloss and related lip care products but to build a global brand.
d. Goals and Objectives
The goals and objectives of a lip gloss business are to prepare, blend, compound, and package both cosmetic and therapeutic lip products for end-users.
e. Organizational Structure
- Chief Executive Officer (President)
- Human Resources and Admin Manager
- Production Manager
- Merchandise Manager
- Sales and Marketing Manager
- Machine Operators
- Distribution Truck Drivers
a. SWOT Analysis
- Ideal location for a lip gloss business in the UK
- Highly experienced and qualified employees and management
- Access to raw materials
- Access to labor
- Unique product
- Reliable and efficient inventory management system.
- Financial constraints may restrict the publicity and branding of the business
- A new business that will be competing with well-established lip gloss brands
- Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.
- Increase in the demand for lip gloss and related lip care products produced in the UK
- Online market, new services, new technology, and of course the opening of new markets.
- The arrival of a new lip gloss business within our market space
- Economic uncertainty
- Liability problems
- The UK government could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
b. How Do Lip Gloss Businesses in the UK Make Money?
The lip gloss business in the UK makes money by selling the following products;
- Lipstick, lip gloss, lip stains, lip liner, lip balm et al.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your lip gloss by sending samples alongside your brochure to residents, merchants, retailers, makeup artists, beauty salons and spas, and other stakeholders.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your products.
- Engage in roadshows in targeted communities from time to time to promote your lip gloss
- Join local lip gloss business associations for industry trends and tips
- Provide discount days for your customers
- Advertise our business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
a. How Much Should You Charge for your Product?
You can sell your lip gloss for as low as £1.50 per container, or up to £10 for special variations. Try to keep your lip gloss priced between £3 to £4 per tube to stay competitive.
b. How Much Profit Do Lip Gloss Businesses in the UK Owners Make a Year?
On average, a lip gloss business owner rakes in nothing less than £65,000 net profit per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the lip gloss business
- The types of related lip care products produced
- The location of the lip gloss business
- The management style of the lip gloss business
- The business approach of the lip gloss business
- The advertising and marketing strategies adopted by the lip gloss business
- The number of years the lip gloss business is in business
d. What is the Profit Margin of a Lip gloss business in the UK Product/Service?
The profit margin of a lip gloss business in the UK is not fixed. It could range from 25 percent to over 45 percent.
e. What is the Sales Forecast?
- First Fiscal Year: £440,000
- Second Fiscal Year: £800,000
- Third Fiscal Year: £1.8 million
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Lip Gloss Business in the UK?
- The demography of the location especially as it relates to people that make use of lip gloss regularly
- The demand for lip gloss in the location
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of lip gloss production factories, and related businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Lip Gloss Business in the UK?
- Bradford, West Yorkshire
- Little Horwood, Buckinghamshire
- Auckley, South Yorkshire
- Dorchester, Dorset
- Ammanford, Carmarthenshire
- Prestwich, Manchester
c. What Equipment is Needed to Operate a Lip Gloss Business in the UK?
If you are considering setting up a lip gloss production company, it means that you should be prepared to purchase equipment and machines such as blending, mixing, and compounding machines, molding machines (tubes), packaging, labeling, and sealing machines.
When it comes to hiring employees for a standard lipgloss production company, you should make plans to hire a competent Chief Executive Officer (Owner), Admin and Human Resources Manager, Sales and Marketing Manager,
Cosmetologist/Quality Control Officer, Machine Operators, Accountant, Distribution/Delivery Van Drivers, and Client Services Executive. On average, you will need a minimum of 7 key staff members to run a small-scale lipgloss production business.
Launch the Business Proper
No lip gloss business in the UK opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the lip gloss business in the UK, you will officially inform people in your city that your lip gloss business is open for business.
a. What Makes a Lip Gloss Business in the UK Successful?
- Choose a good location and shop facility to launch the business
- Make available varieties of lip glosses (give your customers options)
- Throw an open house grand party before officially opening the lip gloss business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your lip gloss business
- Leverage all available online and offline platforms to promote your lip gloss business
b. What Happens During a Typical Day at a Lip Gloss Business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swings into action (production of lip gloss and other lip care products)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Lip Gloss Business?
- Excellent technical and production skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in the cosmetics and beauty care industry
- Experience in managing people
- Experience in business administration
- Experience in making different types of lip gloss.