How to Start a Lucrative Cosmetics Business in Ghana

The cosmetic industry is a multi-million business opportunity in Ghana. The demand for all types of cosmetic products is ever-increasing from varied to premium products. In Ghana, the demand for premium cosmetics is expanding everywhere including the middle class.

The cosmetics industry includes a vast array of businesses such as anti-aging clinics, aromatherapy, beauty salon, beauty spa, cosmetic store, hair salon and even makeup artists are part of it. If you are planning to start a cosmetic business, there is immense scope for growth, provided you proceed in a planned way.

By 2022, the global cosmetic market is expected to garner $429.8 billion. Such statistics clearly reveal that there is plenty of business opportunities in the cosmetic industry.

This is an indication that the cosmetics business is an evergreen industry. As such you can start your small cosmetic business and start making a profit shortly.

How to Start a Cosmetic Business in Ghana

To get started with your cosmetics business, you need to decide whether to start on a small scale of large scale. The business can be capital intensive, and you just need to choose the right brands and support a good level of stock-keeping.

Cosmetics is a significant part of the beauty industry, so there is always a high demand for such products because in all times people want to look good.

Everyone uses some cosmetic products, for example, soap, shampoo, deodorants, and of course women can’t live without pomade, perfume, hair dye and so on. The list of body care products is long, so you can choose the most demanded products to start a cosmetics business.

Step 1 – Learn How a Cosmetics Business Works

The first step to starting any business is to understand how it works. You need to get as much information about the business as possible. You’ll be making a mistake if you just jump into a business without proper knowledge about the business.

It is a good idea to find successful owners of such kind of business and get familiar with them, try to study their strategies, staffing, sales tactics and marketing. Pay attention to how they attract and work with customers. It is also good to find out who the suppliers are. Never stop learning – is a great principle.

Step 2 – Create a Business Plan

Although creating a business plan might be challenging but it is very significant to the growth of your business. Your business plan should be very detailed even for a small scale business. By making all your decisions ahead of time, you can make sure you’re not missing anything, and really come to understand your business.

Also, if you’re going to open a cosmetics storefront, you’ll need a business plan to show banks or investors for financing.

Your cosmetics store business plan should include an overview of your business, but should also get specific.

• The mission and objectives of your business?
• Who is your target market?
• The cost of startup
• What are your financial projections?
• Who are your competitors
• Do you have a marketing plan?

There is also a possibility to appeal to professionals who could help you with the compilation of a great business plan.

Step 3 – Decide Which Products/Service to Offer

This is an important part of your business. You need to decide on product groups or services to offer. Makes sure that the products of this group are in good demand.

For example, you chose skincare and makeup products. This is a good choice because the number of products in this group is huge. Makeup products help people to be more beautiful, and skincare products allow them to maintain the health and freshness of the skin. So, it is better to settle to a particular niche, it will help you to follow a clear direction.

Step 4: Decide on a Location

Where should you open a cosmetics business? If you’re working from home, you want to have an area set up in your home which lets you display your products and host customers and guests.

But if you’re looking for a location for a storefront, you want a location with high foot traffic to increase sales. The best options include malls, kiosks, and high-end plazas.

Ideally, you will want to get a store in a commercial area or city where disposable income is high, prompting more sales from customers. However, if you’re competing on price, then perhaps you want to cater to low-budget neighbourhoods as a discount beauty supply store. In this case, you should avoid affluent neighbourhoods, but still focus on important factors such as:

• Visibility from the street
• Availability of parking space
• Ease of access
• Constant and dependable power supply
• A flow of traffic
• Good road

Step 5 – Register your Business Name

You need to legalize your business for easy branding. You can do this by registering with the Registrar General’s Department (RGD). The registration of the business is necessary for you to work within the law. The customers trust more to registered legal entities.

Step 6 – Prepare Your Startup Capital

Your startup capital should cover all the costs including renting, furnishing and acquiring of the products. The startup capital should cover basic costs. The startup costs and recurring expenses should be included in your business plan.

Step 7 – Find Suppliers

You need to get basic equipment for your cosmetics store. Depending on your business model, you should know what and what that is needed. An online cosmetic store will only need a web designer and a wholesale cosmetics supplier.

A home-based cosmetics business will need different equipment. Below are the most common equipment needed by most cosmetics store.

• Mirrors
• Display cases
• Sponges, brushes, and other supplies
• Makeup products
• Point of sales system
• Furniture
• Art and decorations
• Signage
• Chairs
• Security systems

Step 8: Promote Your Cosmetics Business

Your customers are the backbone of your business. So without them, your business cannot survive. To be successful, it’s important to promote your cosmetics business in order to bring in new and returning customers.

There are many ways of promoting a business. We have the traditional way and the digital way of promotion. Both are equally effective. However, the choice lies entirely with you.