How to Start a Beard Product Business

Start a beard product business by following these 10 steps:

1. Plan your Beard Product Business
2. Form your Beard Product Business into a Legal Entity
3. Register your Beard Product Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Beard Product Business
6. Get the Necessary Permits & Licenses for your Beard Product Business
7. Get Beard Product Business Insurance
8. Define your Beard Product Business Brand
9. Create your Beard Product Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your beard product business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a beard product business?

The startup costs for a beard product business can vary a lot depending on what kind of operation you are starting. One major beard product company, Beardbrand, claims to have started with $30, while another sample business plan for a men’s grooming estimated starting costs at approximately $1.5 million. You can experiment with making your own beard oils and setting up at an Etsy shop for under $100. You can also start your own manufacturing facility to make a range of products and spend a million dollars or more.

What are the ongoing expenses for a beard product business?

The ongoing expenses for your company will depend on its size. As mentioned above, you could experiment with product creation and small-batch sales for $100-$200 a month. However, if you are operating a company with multiple staff and manufacturing costs, it could cost you more like $100,000 a month – which is why you need financing if you are starting a brick and mortar business.

Who is the target market?

The target market for beard product companies is obvious at first glance – men with beards. But there are subsets in this overall market that can have different priorities. Rural or urban? Blue-collar or white-collar? Ease of growing beards or difficulty? As you can see, you can narrow down your market to make it easier to focus your resources effectively.

How does a beard product business make money?

A beard product business makes money by selling beard products to consumers and/or retailers. Some businesses focus on the direct to consumer sales, while others will focus on selling products through retailers like drug stores, supermarkets, and so on. These companies may also seek to sell products to salons and barbershops.

How much can you charge customers?

A high-quality beard product can sell for anywhere between $15-$40 or more. Beardbrand sells beard oil for $29, while Husky Beard sells beard oil for $20. These are considered relatively high-end products. The founder of Husky Beard recommends aiming for 400% ROI.

How much profit can a beard product business make?

The founder of Husky Beard says he makes an average of $12,000 a month. Beardbrand is estimated to earn around $200,000 a year. Of course, when you are just starting out, you are likely to make far less. But if you find a winning strategy like these two businesses did, it is reasonable to expect to earn something similar.

How can you make your business more profitable?

To make your beard product business more profitable, you need to reduce costs, increase sales, or both. Ideally, both. Cost reduction tends to come from increasing the scale of your operation. When you are making products in your bedroom, they may cost you $5 or more a bottle to get right. But when you have a manufacturing facility, you can drive that down to a few dollars.

Increasing sales is the most obvious answer to becoming more profitable – which often comes down to good branding. Companies like Beardbrand have built a name for themselves in social media, blogging, and other channels. To differentiate your beard product business, work hard on finding your brand identity and getting your name out there to potential customers.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your beard product business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is right for anyone with a passion for beards. While you may first imagine that you have to possess a great beard to sell design and sell beard products, that’s not necessarily true. Some beard product businesses are founded by individuals who never manage to grow an impressive beard – but they do know how to make beards healthy and help beard growers look and feel their best.

What happens during a typical day at a beard product business?

A typical day at a beard product business may focus on product design, product sales, team management, finances, or a combination of these. Product design includes designing and testing various beard products. Product sales includes marketing beard products and selling those products. Managers/owners make sure all teams are on track with their tasks and that the business has enough financing to operate.

What are some skills and experiences that will help you build a successful beard product business?

Skills and experience that can help build a successful beard product business include cosmetic design experience, product design experience and sales skills. You are likely to have to juggle multiple roles, particularly when you are starting out. Those roles include developing beard products that set your business apart as well as convincing others to buy those products. You can learn these skills as you go, but it will certainly help if you already have some applicable experience.

What is the growth potential for a beard product business?

The growth potential for a beard products business is significant. Beard products have been growing in popularity for some time now – as has the market for men’s grooming in general – and shows no signs of slowing down. Statista indicates that the global male grooming market in 2018 was around $60 billion and expects it to grow to over $81 billion by 2024.