5 Common Mistakes New Cosmetic Entrepreneurs Make (And How to Avoid Them)

Introduction

Launching a cosmetic brand is an exciting journey. It is also fraught with its own challenges that are difficult to navigate. Many new entrepreneurs make the same , often avoidable mistakes that can be costly and damaging to their brand. In this guide we will explore the 5 most common mistakes made by new cosmetic entrepreneurs and give some advice on how to avoid them.

Mistake 1: Poor Ingredient Sourcing

New entrepreneurs cost consciousness can lead them to sourcing ingredients from low quality suppliers which can result in low quality end products. This will undoubtedly have an impact on brand reputation and product safety. Furthermore, unsafe products can result in regulatory compliance issues and fines.

You can avoid this by researching suppliers thoroughly, buying products from suppliers that provide certificate of analysis and safety data sheets (they often have them available on their websites). Suppliers should also be happy to provide you with GMP certificates and allow visits to their warehouses.

Mistake 2: Lack of Product Testing

Cosmetic manufacturers, including small start up brands, need to ensure they have adequate safety and stability testing. Testing ensures the product is safe and stays fresh for its intended shelf life. In fact, testing tells you the intended shelf life! The consequences of not performing adequate tests are product contamination from inadequate preservation, products not functioning well over time, or causing allergic reactions and irritation.

Skipping safety and efficacy testing is a common mistake, especially for entrepreneurs on a tight budget. All of the above can not only lead to a dissatisfied customer, but could result in law suits and regulatory penalties. Testing ensures your products are safe for use and deliver the promised results.

You can avoid this by conducting third party (use a lab) stability testing including microbial testing. Test the product on yourself and a group of willing participants to assess any potential reactions.

Mistake 3: Unclear Branding and Messaging

Many new business owners are unable to set their brand apart from rivals. They either mimic well-known brands or craft ambiguous messaging that fails to connect with their intended audience. Without a unique identity you will fail to stand out in the crowd and you will lose connection to any potential customers who are already having their needs met by your competitor.

You can avoid this by working on your brand identity. Think about your mission and values and how you can convey these to your ideal customer. Research your target market. What are their needs, desires and pain points? Style your brand so that your brands artwork conveys your its personality - this may require investing in a professional designer.

Mistake 4: Ignoring Regulatory Requirements

In short, follow the law of the land. In the EU and UK the cosmetic industry is heavily monitored and regulated. The consequences of not doing so can lead to fines and penalties, product recalls and eventually reputational damage.

You can avoid this by researching the regulations of your region, keeping the necessary records, and labelling products correctly. In the UK and EU you will need to update yourself with the legislation and enter your products on the relevant portal.

Mistake 5: Inadequate Market Research

In order to understand your target market you need to do research. Failing to do so can lead to products no one needs or wants and this will result in low sales, wasted time and resources, and ultimately missed opportunities.

You can avoid this by conducting surveys and focus groups, analysing competitors, and researching emerging trends

Conclusion

We have looked at 5 common mistakes new entrepreneurs make when launching their brands. These mistakes can lead to a loss of time and money as well as added stress that could easily be avoided with added research.