Possible Business model for Start Up Cosmetic Businesses?

LandmarkLandmark Member
edited April 2015 in Starting a cosmetic line
Good morning everyone;

I'd appreciate your feedback about the following scenario. Last month I met a guy who has a Cosmetics formulation & consulting business and has no employees!. He has a team of several professionals working together from project to project. They share all the profits and losses, but what took my attention is that they work together under same roof in a collaborative environment. Probably they are individual LLCs but work as a structured corporation. I can’t sleep thinking how this business model may work?
 
I know a lot of people like me trying to grow their businesses and due to a lack of resources our progress is slow. How would be the customer perception if your potential client connect thru Skype and see a big conference table full of professionals (Marketing, scientific / technical, sales) working together ready to take your idea to the sky. What you think?
Any input would be highly appreciated. Have you work under this business model before? Would you be interested? 

Regards, Javier

Comments

  • PerryPerry Administrator, Professional Chemist
    It sounds like an idea that could work.  

    The hardest part about growing a cosmetic business is getting good marketing.  In fact some brands (like Paul Mitchell) launched without any R&D group.  
  • MarkBroussardMarkBroussard Member, Professional Chemist
    Certainly, that model could work.  But, like any business, it all depends on the personalities involved and their commitment to the "group" projects versus whatever projects they are working on as individuals ... could work wonderfully or it could be like herding cats.
    Chemist/Microbiologist formulating in the Organic & Naturals arena under ECOCert/Natural Products Assn/Whole Foods/National Organic Program guidelines focused skincare & haircare products. 

    See website for details www.desertinbloomcosmeticslab.com
  • BobzchemistBobzchemist Member, PCF student
    I like it. But I couldn't be involved in something like that until after I retired - too much risk.
    Robert Zonis, Sr. Formulation Chemist, Beaumont Products "All opinions and comments expressed are my own, have no relation to Beaumont Products, are fully copyrighted, and may not be used without written permission."
  • I can't complain. I got responses from top scientists on this forum, that give me a high degree of accuracy that this model may work. I appreciated all your input.

    Thank you! Javier
  • pmapma Member
    edited April 2015
    IMO the hardest part is distribution. At least in my country supermarkets, drugstores and most cosmetic stores just buy cosmetics from big corporations like P&G, Unilever, L'oréal... It's very hard to put a small and new brand in their stores even if you try to pay for this... Even for medium companies is hard to put their products in big chains. 

    The good part is there's Internet... Without Internet would be much harder to achieve any success in this business. 
  • Yes, That is correct PMA, I think using internet technology one can even beat brands like Unilever or L'Oreal as well. It is just a matter of availing the products to everyone through the internet. One need to hit hard using e-commerce.. Success will be 100% achievable using online sale.  
  • PerryPerry Administrator, Professional Chemist
    Using Amazon for your fulfillment system is a great idea too.  The store and ship all your products while you can focus on marketing.
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