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How to start a Beauty Supply Store in 2022


Do you want to know how to start a Beauty supply store in 2022? I know you surely will want to start your own beauty supply store business.  Starting a beauty supply store is easy to start, if you have the right information on how to go about it. In this practical guide, we will be looking at how to start a beauty supply store and sell a wide range of beauty and skin care products.

According to available and verifiable figures, there are about 91,236 registered beauty, cosmetics and fragrance stores in America alone, making over $21 billion annually, employing about 230, 527 staff. The industry is also projected at a 4.7 percent annual growth rate, which makes it a very hot business sector with lots of opportunities, why then would you not want to become part of this growth?

What has held you back from starting your own beauty supply store? Is it based on no interest on your part or is it as a result of lack of information on how to go about it? Whatever the case, you have nothing to worry about, as the massive value we will provide in this guide, will give you the right footing in getting started with a beauty supply store.

The truth is that starting a beauty, cosmetics and fragrance store is not capital intensive or as difficult as you think or would have assumed, but with the information we will be providing here, we will be breaking down the process of how to start a beauty supply store in the following key steps.

  1. Choose a Niche
  2. Write a Business Plan
  3. Register your Business
  4. Secure your Permits/Licenses/Insurance
  5. Plan your Budget/Source for Funds
  6. Choose a Location
  7. Source for Suppliers
  8. Order for Samples
  9. Furnish your Store
  10. Plan Store Display/Ambience
  11. Get Inventory Management Tools
  12. Market your Business



The beauty supply store business is a wide range business, so it is very important to decide on the specific niche you will be serving. There are range of products like hair products, which even have wigs and hair extensions, cosmetics, organic beauty products, etc. so knowing the niche you will be serving is a very important step on how to start your beauty supply store.

You can decide to do a bit of research of your demographic so as to have a better understanding of what appeals to your target audience the most, as the essence of starting a business is to have a large enough client base that will make the business sustainable and profitable. Why would you want to start a business serving the wrong audience?


Once you have identified and choose a profitable niche, your next line of action should be to write a business plan for the business. Most people have the tendency to underestimate the importance of a business plan in a business. Writing a business plan should not be what to toy with, as the business plan in most cases serves as the compass and road map for the business. Would you want to embark on a journey, without knowing the direction you are heading?

The process of writing a business plan will help you think through the whole process of the business, as you will through the business plan, capture and highlight key details like the objectives of the business, your products, your marketing plan, your financial projections and cash-flow, etc.

If you are going to source for external funding for your beauty supply store, your business plan should be more detailed, so you will be able to convince investors, partners and bankers.

There are many free business plan templates you can access online for guidance, or you can simply hire a professional to write the business plan for you.


It is always good to have your business registered so you can be on the safe side of the law. The registration process in most countries is quite easy and can be done online. So depending on the state or country where you live or will be operating from, you can reach out to the company house, either through their website of state office and commence the process of registering your company.

The legal structure you will choose for your business will depend on the scale of the beauty supply store you want to run. You however have the option of either registering as a sole proprietor, limited liability partnership or a limited liability company. It is always advised to seek the counsel of a lawyer for a better understanding of the legal business structure that is best suited for your business.

We will however recommend that you register a limited liability company as this type of business structure have certain protections against your personal assets in the event of the business failing.


Every state or country have different operational guidelines and policies, it is then important that you apply for all applicable permits and licenses for your type of business. Some states for instance, might require that your business deduct sales tax, you should therefore reach out to the relevant trade associations or chamber of commerce, to find out the type of permits and licenses your type of business needs and apply for them accordingly.

You are also expected to apply for and obtain Employers Identification Number (EIN), even though you might not be hiring staff from the beginning, as the EIN, will be needed for the purposes of remitting taxes, opening a business bank account for your business and also in registering with vendors that will be supplying you with the beauty products.

It is also expected that you apply for insurance cover for your business. Running a business is a high risk venture with possibility of unforeseen losses or damages, to preserve yourself and business from untold pains, it is advisable to reach out to an insurance broker and get advice on the best form of insurance policies that is best suited for your business.


As with every business, you will need funds, so it will be important to plan your budget and how you are going to source for the funds for your business. Though starting a beauty supply store is not very capital intensive, you will however need some level of funds to get your business off the ground.

If you have not inherited a large stash of cash, you will have to use any of the following way to source for funds, so you can effectively plan your budget and get your business started.

  • Personal savings
  • Loan from friends and family
  • Investors/partners
  • Bank loan
  • Grants
  • Inventory from suppliers

You can see there are many options available to raise funds for your business, you have to check which of the options that are applicable to you and do the needful.


Your beauty supply store will need a location. You may decide to either have a physical store location or you may decide to sell your products online. However, if you decide to use online as the location of your store, you will need to have a warehouse to stock your inventory, or you will have to adopt the drop shipping business model, which is a business model, where the suppliers will have to deliver the products directly to your customers.

But having a physical store front will be a very good investment for your business, as your customers will be able to walk into your store and make a selection of the products they want.


Once you have gotten a location for your beauty supply store, it implies that your business is starting to take shape. It is now time for you to source for suppliers of the products, since you will likely not be manufacturing the products on your own. The easy way to go about it is to use platforms like Alibaba, Aliexpress, Oberlo, Beauty express or Indiamart etc., and contact the manufacturers or suppliers of the products you are after and start negotiations with them.

You should study the terms of each supplier or manufacturer, with special attention been paid to terms like minimum order quantity, delivery time and every other details that will be useful for you running a smooth business operations.


After you have reached an agreement with your supplier, it then good that you order samples of the products. The reason it is very important to order samples of the products, is so you can ascertain the quality of the products you will be selling to your customers. It will be sad to order products in bulk for your new business and all the products turn out to be inferior quality products. But with the product samples ordered, you will know what your customers will expect, and it will also help you to decide if some of the products will need modifications for instance, before you finally launch your beauty store and products.


Once you have ordered and received your samples, it implies you already have your products at hand, it is now then a good time to furnish your beauty store. You will need shelves and show cases, display boxes and every other equipment like POS, inventory management tools and every other piece of equipment that make your store welcoming to customers and that will also make your operations easy.


Closely related to your store furnishing, is the planning of the store product display and ambience. How will your customers feel when they walk into your store? How long will it take them to find what they are looking for when they work into your store? These are questions that will be at the back of your mind when playing your store display and ambience.

For instance, you should have an understanding of complimentary products that can be displayed at checkout points, which will attract the attention of customers, while they are making payment, so there can be a possibility of them adding them to their orders, you should also know how you should arrange the shelves in rolls so as to display as much products as possible, so your customers can see the products as they walk through the rolls looking for their products of interest.


Technology has made the running of businesses so easy, it is then important that you adopt technology for your beauty supply store business, by having the required inventory tools, so you can monitor your stock level, know when to order new stocks, and also know the stocks that are selling out fast or otherwise.

How professional will your business be, if each time customers walk in and the items they came for, are not always available? Do you think those customers will keep coming back? No they would not, they will also tell their friends that products are not always available at your store. So it is very important to have a stock management system in place, so you can record your stocks, when supplies arrive, and also know when stocks are running low, so as to make new requisition for new orders.

The inventory management systems will also help you control or monitor theft, from your employees, as you will be able to know the no of items sold and the amount you should be expecting, when end of sales accounting is presented.


Marketing, they say is the heart and soul of the business. No matter how high your product qualities are or how beautifully arranged your store display is or even how catchy your business name is, nobody is going to buy any product from you if they don’t know about your business.

Gone are the days when marketing has to be traditional, as you now have many creative and innovative ways to adopt in marketing your business. You can use the following methods to market and build traction for your new beauty supply store business.

  • Websites/blogs: You can build a website for your business, where you can take orders and you can also write blog posts to promote your products. With SEO services applied to your website and blog posts, you will be able to understand the keywords customers are searching for and write your posts with the keywords so as to drive traffic to your website and by extension your store front.
  • Flyers: You can produce flyers and distribute them to local shops and salons and other related business places, where your potential clients will always be found.
  • Local publications/Magazines: If you have the budget, you can pay for adverts in relevant local newspapers or magazines. You can also list your business in classifieds.
  • Social media channels: You should take advantage of the reach of social media, particularly Instagram and Facebook, as you will find a lot of models and customers for instance, which may be interested in your products. You should also reach out to influencers in your product niche on social media and have them help promote your products, either for a fee, or you can send product samples to them, it depends on the agreement you were able to reach with them.
  • Trade-shows/events: You can for instance sponsor a charity event or take part in industry trade shows and get your business exposed to the relevant audience
  • Word of mouth: The most effective form of marketing is word of mouth, so you should not be shy about it, but rather be you should be bold enough to tell as many people as possible about your new business.
  • Friends/family: You can get your friends and family to help you promote your business by refereeing their own friends and people in their network
  • Affiliate/referral programs: You can run affiliate or referral programs, and allow others help you promote your business, by paying them a commission on each sale they make.
  • Paid adverts online: You can use paid adverts like Google ads or Facebook ads to promote your business to targeted audience.


There are basically three types of costs that is associated with opening and running your beauty supply store business. They are:


These are the costs associated with building/renting and furnishing of your store. The built up cost is the biggest type of cost and how much you spend will be determined by the size and scope of your store.


It is always difficult to figure out the inventory costs, but it is usually the costs associated with your product mix.


As the name implies, working capital is the cost associated with your day to day running of the business. Costs like overhead, bills, etc.


  • l Brands
  • Sally Beauty Holdings, INC.
  • Sephora
  • Ulta Salon Cosmetics & Fragrance INC.
  • Beauty Supply USA
  • Beauty Plus Salon
  • USA Nail & Beauty Supply
  • Oerigo Beauty (Dover, de USA)
  • Sigma Beauty Flagship Store – mall of America
  • Shen Beauty
  • Hair USA Beauty Supply
  • YO Beauty USA
  • Beauty Empire USA
  • Sami Beauty Supply
  • USA Beauty Care INC.
  • Cosmetheque USA INC.
  • Beauty Kingdom USA Corporation
  • Sally Beauty Supply
  • Atomy USA Health and Beauty
  • Alcantara Cosmetica USA


 Final thoughts

Yes! Once again we have kept our promise. We promise to make this write up a practical guide on how to start a beauty supply store business, we are confident that we have delivered as promised.

You are now in the position to use this information and get starting in starting your own beauty supply store business, and thereby benefit from the wealth and affluence that the beauty industry represents.

What you do with this information is entirely up to you. Can we trust you enough as someone who will use this information? Will you turn out to be one of those people who will never take any action? If you are told that your beauty supply store business will be a success, will you start one now?

Let your action prove the answers running through your mind right now. Action is cure!

What are your thoughts with regards to this guide and do you have any business idea you want us to write about? Let us know in the comment session.













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