3 Good Reasons to Start a Beauty Business in the U.S.

The average woman in the U.S. uses about 12 beauty products every day. As an entrepreneur with a nose for opportunities, you must be smelling something interesting here. Why not start a beauty business?

Well, not so fast!

A savvy entrepreneur doesn’t rush into launching a business simply because there’s an opportunity. You must do market research and establish whether the kind of beauty product or service you intend to offer has a viable market.

We’ve done some of the research for you! If you read on, you’ll find a couple of compelling reasons to become a beauty entrepreneur.

1. Wide Range of Beauty Business Ideas

The beauty and cosmetics industry in the U.S. is worth $100 billion, growing at a rate of about 4 percent annually.

How does such a niche industry have a massive market valuation? It’s because it has so many segments, with haircare, makeup, skincare, fragrances, and toiletries being the major ones.

This means entrepreneurs don’t need to think about setting up salons and barber shops. You can go big and set up a cosmetics formulation and manufacturing business. Or you could open a fragrance store… In short, there are plenty of opportunities for everyone. You just need to find a segment that works for your market.

2. Franchise Opportunities

About 50 percent of new businesses fail within five years. A common reason for this failure is selling a product or service the market doesn’t need.

Now, although the beauty industry is trending upwards, it doesn’t necessarily mean every new beauty business is primed for success. The good news is you don’t have to worry about that because there are plenty of franchising opportunities.

Franchising gives a franchisee the right to use the franchisor’s business name and sell its products/services. You’re buying into a proven business model, so the risk of failure is lower than when starting an entirely new business.

If you’re thinking of opening a hair salon, for example, you can buy a franchise from one of the leading haircare chains, such as Fantastic Sams or Supercuts.

3. Small Brands Are Thriving

In most industries, there are usually a few big corporations that control a vast majority of the market share, leaving small businesses scrambling for whatever little is left. In the beauty industry, there are big companies, yes, but small businesses are thriving.

There are a couple of reasons for this.

One, consumers turn to small beauty enterprises because they offer more personalized services than big, national companies.

Two, back in the day only big companies could afford television and billboard advertising, leaving small enterprises with no effective way to get the word out without spending a boatload of money. However, with today’s rise in digital marketing, the playing field is even. Small businesses are using strategies such as influencer marketing and beauty industry SEO to devastating effect.

So, if you’re worried that your small beauty shop won’t survive the competition from big companies, you’re wrong.

Launch That Beauty Business!

It’s understandable if you were at a crossroads about opening a beauty business. The challenges of running a small business in the U.S. are well-documented, but as the article demonstrates, there are solid reasons for you to give a beauty business a shot. The market is ripe.

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