Start a beard product business by following these 10 steps:
- Plan your Beard Product Business
- Form your Beard Product Business into a Legal Entity
- Register your Beard Product Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Beard Product Business
- Get the Necessary Permits & Licenses for your Beard Product Business
- Get Beard Product Business Insurance
- Define your Beard Product Business Brand
- Create your Beard Product Business Website
- Set up your Business Phone System
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. 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.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
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.
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.
STEP 2: Form a legal entity
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.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a beard product business
Find your target market, your niche, and determine what marketing channels are most likely to reach them. For example, the urban, white-collar beard product market may be reached through advertising on a hiking website, while the rural, blue-collar market may be more easily reached through advertising on a hunting website. The more you can target your products to the right people, the better.
How to keep customers coming back
The quality of your products is extremely important when you are selling to a narrow niche like beard enthusiasts. Men have had beards forever, but beard products are relatively new. The customers who go out of their way to purchase these products will often be testing whether they want to use them regularly or not. You may only get one chance to convince them. So, ensure that any product with your name on it is the best you can make it.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Nextiva
Nextiva is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start A Beard Product Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
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.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
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.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a beard product business?
The founder of Beardbrand recommends figuring out what you enjoy doing the most with your business and outsourcing the rest of the work. For him, it was blogging about and building the company’s brand. For you, it might be designing products or finding investors. Whatever your passion is, it will be easier to do your job well if you are highly motivated. You can leave the other tasks which you are not as likely to do well to others.
How and when to build a team
You can only do so much on your own. While you could start off making some oils and selling them online, if you want to grow your business you will need help. If you are questioning whether you need to hire someone, just pay attention to your schedule. When you are working 12 hour days and unable to keep up with customer demand, you have to spread the load out sooner rather than later – otherwise you risk burnout.