How to Start a Green Beauty Product Business

The National Institute of Occupational Safety and Health reports that there are over nine-hundred toxins and chemicals in today’s standard cosmetics and skincare products. As we learn more and more about what these chemicals do to our bodies and our environment, many consumers are turning to natural products. Green beauty product business owners offer innovations in beauty care, producing and selling it to the public.

Learn how to start your own Green Beauty Product Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a green beauty product business by following these 10 steps:

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

We have put together this simple guide to starting your green beauty 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:

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

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Green Beauty Product Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

Want some help naming your green beauty product business?

Business Name Generator

What are the costs involved in opening a green beauty product business?

Launching an eco-friendly beauty product line requires a great deal of planning. Product development, packaging, and building retailer partnerships can take anywhere from nine months to over a year. Start-up costs range from $75,000 to over $150,000 and include:

  • Trademark and logo design
  • Branding
  • Packaging costs
  • Payroll
  • Computers and software for business management
  • Website development
  • Advertising and marketing
  • Insurance
  • Certification - $200 to over $1,500, depending upon the certification and accredited agency you choose to use

Entrepreneurs whose business plan includes a storefront will also need to budget time and money to create an eco-friendly facility for their clients. Costs include location, utilities, additional payroll, and fixtures.

What are the ongoing expenses for a green beauty product business?

The ongoing expenses business owners face managing a green beauty product business include manufacturing, packaging, marketing campaigns, insurance, and payroll. If your business model includes managing a storefront or manufacturing facility, you will face additional overhead expenses. As mentioned, those in this industry remain active to the underlying cause. Therefore, those looking for long-term industry success should budget for ongoing education and market research.

Who is the target market?

Your target market includes consumers who are educated regarding the benefits of using natural products, particularly when it comes to skincare and beauty products. They commit, both to themselves and our planet, and dedicate time to making the changes necessary to preserve our natural resources. Business owners are encouraged to conduct thorough research to identify industry weaknesses, introducing products that fill current and future needs.

How does a green beauty product business make money?

The specifics of your day will depend upon your organization’s business model. Some entrepreneurs blend the products themselves, while others partner with a private label manufacturer, who produces their goods for them. In this case, you would work closely with the lab to formulate and manufacture the products you conceive, develop packaging, and ensure adherence to the latest rules and regulations. Green business owners spend much of their time conducting research and taking part in the movement to produce socially responsible products.

When not perfecting recipes and putting your flair on age-old techniques, you will work to expand your business through networking, marketing, education, and other customer service duties. Entrepreneurs who manage a brick and mortar establishment will also need to maintain the facility and stock the shelves, taking a more hands-on approach to customer service.

How much can you charge customers?

Pricing varies depending upon the product, its intended use, manufacturing and packaging costs, ingredients, and overhead expenses. Your manufacturing partner can assist you in this aspect of the business, helping determine competitive and profitable retail and wholesale pricing.

How much profit can a green beauty product business make?

The average small eco-friendly beauty line reports an annual profit of $40,000 to $80,000, while larger organizations report millions in profits. Profit margins range anywhere from 40% to 80%, depending upon expenses and the business model.

How can you make your business more profitable?

Since education is the key to a green beauty product business’ success, business owners should consider hosting workshops and speaking at conferences. This helps gain visibility for the company while assisting in identifying other market needs.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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 green beauty product business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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.

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 through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

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.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

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.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a 3D printing design business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

Trademark & Copyright Protection

If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.

Learn more about trademark and copyright protection

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.

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.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

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 green beauty product business

The most effective way to reach your target market and grow your new business is through education. Today’s entrepreneur has access to a myriad of marketing tools, including social media, blogs, online and printed publications, and radio. Get to know your potential customers and develop a marketing strategy that organically reaches them. Position yourself as an industry thought leader by writing informative, thought-provoking articles and guest-speaking at conferences, expos, and on radio and television shows. 

Business owners are also encouraged to forge mutually beneficial relationships with beauty bloggers, journalists, and social media influencers - they promote your product in exchange for free or discounted items.

How to keep customers coming back

Unlike many consumers, the eco-conscious customer pays attention to every detail. Everything from your packaging to the product itself is important for long-term success. New investors are encouraged to find their niche and perfect one product before moving on to the next. In addition to offering quality products, investors should cross-sell products that complement each other, building a customer base that is dedicated to their beauty product line.

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.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

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 2023 to find the best phone service for your small business.

Recommended Business Phone Service: is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

The green beauty products industry is best suited for business-savvy entrepreneurs who are dedicated to leaving the planet a better place than we left it. They are passionate about educating the public on the harmful toxins standard makeup and skincare products contain and the lasting impact these chemicals have on our bodies and the environment.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a green beauty product business?

The specifics of your day will depend upon your organization’s business model. Some entrepreneurs blend the products themselves, while others partner with a private label manufacturer, who produces their goods for them. In this case, you would work closely with the lab to formulate and manufacture the products you conceive, develop packaging, and ensure adherence to the latest rules and regulations. Green business owners spend much of their time conducting research and taking part in the movement to produce socially responsible products.

When not perfecting recipes and putting your flair on age-old techniques, you will work to expand your business through networking, marketing, education, and other customer service duties. Entrepreneurs who manage a brick and mortar establishment will also need to maintain the facility and stock the shelves, taking a more hands-on approach to customer service.

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

Most entrepreneurs building eco-friendly businesses choose to do so because they are passionate about doing their part to protect our planet. While knowledgeable, they continuously strive to learn more, innovate, and educate the public. This drive and willingness to think outside the box serves them well in the highly competitive cosmetic industry.

To realize long-term success in this industry, one must possess strong interpersonal skills, with the ability to connect with industry colleagues, manufacturers, retailers, and customers. These relationships help gain a deeper understanding of the customer, ensuring everything from products to packaging, meets their dynamic needs. 

Additionally, one must possess the qualities that make a great business leader. You must be flexible and patient, with strong business acumen. If managing a business is not your strong suit, consider taking a basic business workshop online or at your local college.

What is the growth potential for a green beauty product business?

The Natural and Organic Cosmetics market is expected to surpass $23 million by 2025, growing at a compound annual growth rate of over 9%. As consumer demand for eco-friendly personal care products increases, more and more major companies are expected to enter the market. This will offer unique and profitable opportunities for entrepreneurs who entered the market in its early stages.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

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:

  • Funding
  • Events
  • Guides
  • Support

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 green beauty product business?

While the public has just caught on to the eco-friendly trend, many have been working behind the scenes for years to educate consumers regarding the multitude of benefits. They offer the following advice:

  • Partner with a manufacturer that understands your vision, the product, and your target audience. This strong partnership will prove invaluable in brand development, meeting customer needs, and reaching your target audience.
  • To help offset costs, consider doing much of the work yourself.
  • Entrepreneurs who fall short on start-up capital are encouraged to seek out funding and grants. Women business owners introducing unique products should consider applying to take part in the Sephora Accelerate program.
  • Complying with EU Cosmetic Regulations will show consumers you are dedicated to producing quality green beauty products.

How and when to build a team

The private manufacturer you partner with is a critical part of your team. As the product line grows, you will likely need to hire additional staff to assist with order fulfillment and other customer service duties. Your staff should be well-versed in eco-friendly products, sharing your passion for consumers and the environment’s health.

Useful Links

Industry Opportunities

Real World Examples

Further Reading

Have a Question? Leave a Comment!