Starting own shop or webshop

[ThePowderPuff]

First of all I just want to clarify, that this is not at ALL thought through by us, it's jut a crazy idea a friend of mine and I had, and I would very much aprreciate your thoughts on it. But take it for what it is, a crazy idea

In my home country there are nowhere you can buy makeup brands such as Urban Decay, Nyx, Benefit, Stila, Shu Uemura and many many more, that most of you take for granted.

And a friend of mine and I started talking about how much we would like for those brands to be available here, and how many people we know who would like that too. And then the idea came to start our own shop or webshop.

But what does it take to get accepted as retailer for those brands? Is it possible if you are not a big department store?

Does anyone have experience with that?

And what exactly does it take to start your own beauty shop, either a store or a webshop. How do you do it? A-Z please

How do you get started? How do you know if there will be a market for the products you want to sell?

How about the administration? Is it possible if you don't have any selling experience? I'm just a journalist, I have absolutely no idea what it takes to run a shop

 

[JustDivine]

You would have to start by doing extensive market research to establish if your proposal is viable long term, as a business and also financially. You will have to demonstrate with reference to empirical evidence/research data that there is a demand for it. I'm not sure how you would go about getting the views of a significant number of consumers, but I imagine undertaking questionnaires from the target market would be a starting point.

Identify any competitors, if any. Have any such webshops existed in your jurisdiction in the past that have gone out of business? Try and find out more about the composition of this particular market: online retailers of cosmetic products. There must be a way you can access this data in your country; maybe approach the companies registry/business bureau etc...

Very few people go into business with all the knowledge and expertise of business management/administration. You can learn the business principles of running a shop, though it might benefit you to take an evening class in business/management, or at the very least, do some personal study/research. between you and your friend. Be knowledgeable so that you can demonstrate your committment. Approach banks and ask for resources they have for people starting up a business: these will prove very useful to you.

As for the actual stock: I would do extensive research and really be clued up about business and the market before approaching companies. Show them that you intend to be more than just a flash in the pan. Contact them with a solid business plan, and show them why they should consider distributing to you.
I'm sure each company has its own rules on distribution, but if you're convincing enough you can make them give it proper consideration. Find out a contact name at the company, dont just send an email to a generic email address (like [email protected]!) so that you can be sure that your email will at least be read by an official.

You will have to think about capital, and initial outlay/startup costs. Again I would advise having an informal chat with a bank adviser, just to understand how this would work for you, and get general guidance on opening a business.

You may also want to consider all possibilities: starting small (eBay registered as a business in your country), then progressing into your own site if demand dictates. Think about all the various avenues that are available for you to run this business.

Good luck!

 

[ThePowderPuff]

Quote:

Originally Posted by JustDivine You would have to start by doing extensive market research to establish if your proposal is viable long term, as a business and also financially. You will have to demonstrate with reference to empirical evidence/research data that there is a demand for it. I'm not sure how you would go about getting the views of a significant number of consumers, but I imagine undertaking questionnaires from the target market would be a starting point. Identify any competitors, if any. Have any such webshops existed in your jurisdiction in the past that have gone out of business? Try and find out more about the composition of this particular market: online retailers of cosmetic products. There must be a way you can access this data in your country; maybe approach the companies registry/business bureau etc... Very few people go into business with all the knowledge and expertise of business management/administration. You can learn the business principles of running a shop, though it might benefit you to take an evening class in business/management, or at the very least, do some personal study/research. between you and your friend. Be knowledgeable so that you can demonstrate your committment. Approach banks and ask for resources they have for people starting up a business: these will prove very useful to you. As for the actual stock: I would do extensive research and really be clued up about business and the market before approaching companies. Show them that you intend to be more than just a flash in the pan. Contact them with a solid business plan, and show them why they should consider distributing to you. I'm sure each company has its own rules on distribution, but if you're convincing enough you can make them give it proper consideration. Find out a contact name at the company, dont just send an email to a generic email address (like [email protected]!) so that you can be sure that your email will at least be read by an official. You will have to think about capital, and initial outlay/startup costs. Again I would advise having an informal chat with a bank adviser, just to understand how this would work for you, and get general guidance on opening a business. You may also want to consider all possibilities: starting small (eBay registered as a business in your country), then progressing into your own site if demand dictates. Think about all the various avenues that are available for you to run this business. Good luck!

Very usefull! Thanks a lot.

Do you know anything about the demands of the specifik companies?

 

[Modmom]

I don't have any advice on the particulars of a beauty shop online, but I did have a very successful website for many years so I may be able to offer some help in that area. The only reason I don't have my site anymore is because it got too busy and I was spending more time shipping than painting. I didn't want to hire employees because I was ready to downsize. So I shut down my website and now I'm back to just exhibiting at shows and filling orders solely by word of mouth.

Anyway, there are alot of user friendly website hosts that you can use. Many of them are DIY sites, but for those who don't have programming knowledge. You basically plunk in your photos, text and shopping cart info and off you go! Do your research on who you like, what their prices are and what reviews they're getting for ease of use.

The other thing I would recommend is a hiring a marketing company. I did that for my home decor business and it really paid off. Basically I hired a company to submit my name into thousands of links and data bases. I'd have to look up who I used, it was so long ago. He primarily works for artisans, but I know he has helped other types of businesses as well. For me it was a one time payment and well worth it.

Ebay is not what it used to be. Honestly, you're going to pay a ton of money and probably not even get noticed. I wouldn't start of with that. It may be a good suppliment later, but my personal opinion is that if you want to be taken seriously, don't start with Ebay. Join lots of forums, start a blog, and link, link, link!!! Sign up for google ads both for advertising and to make money off your blog (like those ads you see on the sidebar in this forum).

What made my business grow the most though, and I swear by this tactic, is start promoting yourself locally. Have open houses for launch the business, do trade shows and such. Once you get the respect and trust of people who have met you in person...word of mouth will spread like wildfire. Then use your website/blog as a place to refer people to.

Hmmm....can't think of anything else right now accept that my tea is getting cold and I better go drink it LOL Feel free to holler at me if there's something you think I may be able to answer. Good luck!!

 

[JustDivine]

Hmmm...I don't really: I know many brands have exclusive distribution agreements (not that these are entirely legal), which limits the number of authorised distributors. The best way would be to contact the brands directly.

Failing that, there are a number of wholesalers who may be able to supply you, though I don't know the ins and outs of that, and would recommend proceeding with caution in that regard so you don't end up selling counterfeits!

 

[ThePowderPuff]

You guys are really amazing! Thanks a lot.

And just keep posting good advice. I'm really taking it all in.

 

[slick]

Great thread! Its totally my dream to start up my own cosmetic shop/salon/studio one day. I know nothing about business, so I've been thinking about taking a community course in small business just so I would know what I'd be in for. I agree with the above poster who said that would be a good place to start!

Man I wish the economy wasn't so bad. Starting up a business is risky enough as it is, let alone during these times! I honestly just get so nervous thinking about the financial risk, but at the same time I dream about how awesome it would be if it was successful

 

[anita22]

I think the first thing to do would be to make a general enquiry with the brands you are most interested in distributing, on whether they are actually looking for any distributors in your market. (Bear in mind I am coming at this from the other side of the fence, as a brand manager for similar types of products). It's possible as someone mentioned that another party already has exclusive distribution, or you region may not be part of the company/brand strategy (or they may simply not be set up logistically to deliver to you). Another reason they may not be present already in your market is that for the brand owner/manufacturer, there may be other considerations for them to selling the product in that market (e.g. regulatory or legal requirements for package labelling, and that kind of thing). But you should be able to find out fairly quickly, whether they are open to looking at new distrubution partners or not. From there you can build up your business case. Good luck, it sounds like it'll be a lot of fun if you can make it work!