How to set up a Cosmetics Shop

Major Steps in Setting Up

1. Identify location. Make sure there is a gap in the cosmetics market that you are going to fill. Be
extra careful if there is a dominant cosmetics retailer, large supermarket or other well
known cosmetics shop. Have a very clear plan of how you are going to compete. What is
it that you will offer and which your competitors don’t have? Could it be that the market is under-served and there is room for one more? Is it a growing market by population or
construction?

2. Decide on the set up you want; specialize on say hair only, supermarket kind of setup, retail
shop or other.

3. Renovate premises if need be: shelves, painting, and signboard. Make it easy for
customers to see what you are selling.

4. Apply for various business licenses.

5. Decide which products to stock depending on your budget and the needs of your target
customer.

6. Find out the retail prices of most products in your location.

7. Compare prices between different wholesalers and make purchases.

8. Set your prices. Based on your purchase price, competition and market strategy

9. Open the business.