Starting a skincare business can be an exciting challenge, and it can also be mystifying in the processes required. From legal company formation to city permits and training, there are a myriad of tasks to complete before opening your doors. In this article, we’ll discuss ways to define your target market, build your business plan, and specialize your services for teens and tweens. Let’s get started!
Here are some U.S. statistics to outline the teen and tween target audience for skincare:
- In 2022, skincare for teens held the highest priority of beauty spending at $103 per month per teen, followed by cosmetics at $96 and haircare at $91.
- 41% of all teens are wearing makeup daily, while 50% of upper-income teens wear makeup every day. (www.pipersandler.com/teens)
These statistics indicate that teens and tweens are taking over as the largest skincare demographic in the country, and they also indicate that this is the right time to start a skincare business dedicated to them. Let’s look at the steps you can take to start building your skincare business.
1. Analyze your Target Audience.
If you are around teens, observe what they do, what they say and how they express themselves through clothing and makeup choices. Determine who your target audience might be and create an idea of who might be your customers. This will help in every other area of starting your business, as decor, skincare choices, styles, and brand names will inform your skincare business overall.
2. Research your Competitors.
If you plan to serve a regional area, you’ll want to examine direct and indirect competitors who will market to your target audience. Look at skincare items for teens in retail stores, such as Ulta, to discover how products are packaged for teens in that environment. Try to obtain pricing for products that could be comparable to those your store will sell and look for any unique offers from competitors or value added items that might incentivize teens to buy. Analyze your competition to build a demographic of this sector, as well.
3. Fine-tune your Concept.
After researching your target audience and checking out your competition, decide which parameters of your skincare company should be paramount in your packaging, promotions and pricing. Each of these components will influence the purchases by teens and tweens. Conformity to choices made by friends will also rate highly in selections made, however, your close eye on popular colors, names and styles will mean more to teens and tweens.
4. Build your Business Plan.
Building your business plan is extremely important for your skincare business in the long run. You’ll want to include several sections in your plan to fully detail your mission statement, objectives, financial forecast, marketing strategies, operational plans, and other components of importance. Your skin care business plan will be customized to your business alone and can be used as your roadmap, both in the initial months of business and five years later.
Your business plan, when completed, can also become the presentation you may choose to make to investors, lenders, or financial institutions if funding is required for your startup and launch. The financial projections and other details will fully inform the interested parties of your future plans for long-term growth.
5. Choose the Location.
If you are starting your business from your home, you’ll want to create a small studio in a private room for teens and tweens to feel comfortable. Use brightly colored pillows and creative mixtures of textures and spaces to enliven the room. Include bottled water and small amenities, such as free lip gloss or other specialty items as gifts for “special customers.”
If opening your store in a retail location, paint and add decor in themes you’ve observed in teen magazines, on teen clothing brands, or in the apparel worn by teens in your regional area. Create sitting areas that are comfortable and use small tables to present skincare items. Arrange a table where you can sit next to the customer to assist in consultations, the application of skincare, the use of facial masks and other treatments.
Remember…your customers are teens and tweens often unsure of their own decisions, but old enough to carry their own debit cards. Help them to make informed decisions about skincare items based on their complexions, and encourage them in the process if they believe their skin does not hold the beauty they want or expect. Much of your skill will be spent on encouraging these young women. We wish you the best of success!