A beard product company sells personal grooming goods to men who have beards or aspire to develop beards. Oils, balms, cleansers, and waxes are common products. The items are intended to make beards look and feel their best. They also help with style and may enhance the quality of the skin underneath the epidermis. A beard product company may sell directly to customers or via third-party resellers.
Table of Contents
Follow these ten steps to start a beard product business:
Make a business plan for your beard product.
Make your Beard Product Company a Legal Entity.
Register your Beard Product Company for Taxation
Create a Business Bank Account and a Credit Card
Create Accounting for Your Beard Product Company
Obtain the Required Permits and Licenses for Your Beard Product Business
Purchase Beard Product Business Insurance.
Establish your Beard Product Business Brand.
Make a website for your beard product business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to beginning a beard product company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a beard product business?
The price of beginning a beard product company might vary greatly based on the kind of organisation you are launching. Beardbrand, a significant beard care firm, claimed to have begun with $30, while another example business plan for a men’s grooming estimates startup expenditures at $1.5 million. For less than $100, you may try your hand at manufacturing your own beard oils and opening an Etsy business. You may also invest a million dollars or more in starting your own manufacturing plant to produce a variety of items.
What are the continuing costs of running a beard product business?
Your company’s continuous costs will be determined by its size. As previously said, you may experiment with product development and small-batch sales for $100-$200 each month. However, if you are running a firm with several employees and manufacturing expenditures, it may cost you more than $100,000 each month – which is why, if you are beginning a physical and mortar business, you will require funding.
Who is the intended audience?
At first appearance, the target market for beard product firms is obvious: guys with beards. However, distinct segments of this general market may have different objectives. Urban or rural? White-collar or blue-collar? Is it easier or more difficult to grow beards? As you can see, you may restrict your market to concentrate your efforts more efficiently.
How does a beard care company earn money?
A firm that sells beard products to customers and/or merchants generates money. Some firms concentrate on direct to consumer sales, while others sell items via merchants such as pharmacy shops and supermarkets. These businesses may also try to market their wares to salons and barbershops.
How much money may you charge your customers?
A high-quality beard product might cost anywhere from $15 to $40 or more. Beardbrand charges $29 for beard oil, whereas Husky Beard only $20. These are regarded to be rather high-end items. Husky Beard’s creator suggests aiming for a 400 percent ROI.
How much money can a beard product company make?
Husky Beard’s creator claims to earn an average of $12,000 each month. Beardbrand’s annual salary is reported to be over $200,000 USD. Of course, when you first start out, you are likely to earn far less. However, if you develop a profitable approach, like these two companies did, you may expect to earn something comparable.
How can you increase the profitability of your company?
To boost the profitability of your beard product company, you must either lower expenses or increase sales. Both, ideally. Cost savings usually result from growing the size of your organisation. Making things in your bedroom may cost you $5 or more each bottle to do correctly. However, if you have a manufacturing plant, you may reduce cost to a few bucks.
The most apparent way to become more lucrative is to increase sales, which frequently boils down to strong branding. Beardbrand and other companies have made a reputation for themselves via social networking, blogging, and other avenues. Work hard to create your brand identity and get your name out there to prospective clients to distinguish your beard product company.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a legitimate business organisation, such as an LLC or corporation, shields you from personal liability if your beard product company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Beard Product Company
Determine your target market, your specialty, and the marketing methods that are most likely to reach them. For example, advertising on a hiking website may reach the urban, white-collar beard product market, but advertising on a hunting website may reach the rural, blue-collar market more readily. The more your ability to target your items to the correct individuals, the better.
How to Keep Customers Returning
When marketing to a certain demographic, such as beard fanatics, product quality is critical. Men have been growing beards for centuries, but beard products are relatively new. Customers that go out of their way to buy these things are often deciding whether they want to utilise them on a regular basis or not. You may only have one opportunity to persuade them. As a result, be sure that every product bearing your brand is the finest you can manufacture.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.