While starting an independent business becomes a little daunting for beginners, starting up with a franchised outlet is not a bad option either.
Indian consumers are lured with the glitz and glamour of the beauty sector since forever. The look-good factor is what drives the industry and makes people spend huge sum of pennies on range of cosmetic products like lipsticks and hair care, which help them create those good looks. While these brands help consumers in achieving their beauty goals, consumers help the brands to generate remarkable revenue.
If one ventures in a cosmetic business, there’s no denying the fact that they will earn profits extraordinary profits, but one has to prepare themselves for all the challenges that they have to face in the first place. While starting an independent business becomes a little daunting for beginners, starting up with a franchised outlet is not a bad option either.
Here are five things to know if you are starting a cosmetic franchise store.
Know the Products
The first step to start with the cosmetic franchise business is to decide the product that you will be selling as a franchisee. While choosing the product, one should do a thorough research in the beauty industry and find out the most demanded product category. The higher the demand of the product, the more will you sell the product. And the more you sell the product, the more profit will you make profits.
Another parameter to choose a product is to see whether it is relevant with your current occupation or business. Your knowledge about the product and its life cycle also adds to your candidature.
Know Your Target Customers
Both personal and professional grooming has become an indispensible part of today’s lifestyle where people are more concerned of their looks and personality along with their internal beauty. So, consumers have different opinions when it comes to buying cosmetic products. For instance, in today’s time when DIY (Do It Yourself) videos/blogs are surfacing the internet, consumers are willing to try makeup products on their own. So, knowing the psyche of your customers is an important aspect to know the direction of the growth of your business.
Know Your Market
Market research is an important aspect before you plunge into any business as to be prepared for challenges in the future. By conducting market research, you find out specific details about the product that you have chosen to market. Market research will help you find out all the statistics regarding the product’s market and distribution chains. It can also help you in analysing the market competition so that you know how competitive the market is and how you can avoid the other distributors in ruining your sales.
By conducting a thorough market research, one can help you sorting out companies of which you can buy a franchise.
Know the Franchise Brand
After conducting a thorough research on the market, one should decide which brand is the most suitable brand for them. So, one must try to gauge information on the top brands that are leveraging the industry. One must know everything that concerns them when they decide to invest their money in the brand, for instance, registration fees, product stocking requirements, company’s reward programs, franchise fees and many others. Evaluate every product and select the brand you would like to sell with the best feedback & profit margins.
Know the Franchise Requirements
After deciding the brand, it is time for self evaluation. Arrange the area requirement that the company want you to acquire. The space requirement of a cosmetic product is usually 150 sq ft. So, you can lease the area or can buy a space to make a franchise store from where you can start selling your products.
One must also think about arranging start-up costs. Starting a business is not a cup of tea, so arranging investment requirements is also a big deal.