Creating a business plan is an important first step in starting your own business. This document will outline your business goals, strategies, and how you plan to achieve them. If funding is needed, a bank will require you to have one.

Multiple studies have also shown that a business plan helps increase the odds of starting a successful business.

Related: How to write a business plan

Your business name is important for marketing and branding purposes. It should be something catchy and unique that will help you stand out from the crowd.

A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a lip gloss business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.
 
The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is that the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Related: Guide to forming your LLC
 

Every business needs to be licensed and registered with the government. This will ensure that you’re operating legally and can help you avoid any legal issues down the road.

Specifically, for a lip gloss line, you will want to review the Food & Drug Administration (FDA) information for startups and home-based cosmetic businesses.

The Beauty Business Journal states that a line will need to ensure that its products adhere to national and local labeling guidelines. A business owner will need to work with the county, national, and local regulatory bodies to identify any applicable cosmetics licenses. These licenses will vary depending on location, as well as if the business follows a direct-to-consumer model.

Last, there are general local, state, and federal business registrations, such as a local business license, sales tax permit and Employer Identification Number (EIN), among others to obtain as well.

Related: Common business licenses, permits, and registrations by state

While there are many formulas that you can source online or through a private label manufacturer, it is worth coming up with a unique formula of your own, so you can stand out versus competitors.

If you don’t have the background, working with an experienced chemist is key, plus they can help with sourcing reputable and reliable suppliers for ingredients and manufacturing.

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a lip gloss business is another.  Fortunately, the cost to start a new ice vending business is relatively low; however, funding to start a business can be difficult.  If funding is needed, banks are typically going to want the borrower to have good credit and be able to invest 15-25% of their money towards the total start-up costs.

Related: Finding the money to start a business

Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.
 
Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

There are many ways to market your lip gloss business.

For starters, you will need someplace for people to buy from. Selling to friends and family can be a great low-cost way to test the waters, along with setting up a booth at a local farmer’s market. Having an online shop such as your own website and/or an Etsy store can be a great way to let people purchase your lip gloss from outside of your local area.

To get people to your product, you can start by creating a social media presence and promoting your products on popular social media platforms like Instagram, Facebook, Twitter, Pinterest, and YouTube, and also working with beauty-related blogs. You can also distribute samples to local beauty stores and spas, or participate in trade shows and other events.

With a little creativity and hard work, you can get your lip gloss business off the ground and start generating some buzz.

Related: Low-cost ideas to market a new business

There are several types of insurance to consider when starting a lip gloss business. A few of these include:
– General liability insurance protects the business against medical bills and other fees that could result if a customer is ever injured by the makeup.
– Commercial property insurance can help protect the business if its inventory, equipment, or building are ever damaged in an event like a fire.
– Worker’s compensation insurance covers expenses like medical bills that the business might face if an employee were ever injured while working.

The cost to insure a makeup line will vary based on factors like the value of a business’ equipment and inventory will also affect cost. To get the most accurate idea of potential insurance costs, request quotes from multiple providers. When comparing those quotes, consider not only how the premiums differ but also how the deductibles, policy exclusions, and coverage limits compare.

Related: Common types of insurance a business may need.

Setting up an accounting system for your ice vending business is critical to your business’s long-term success.
Staying on top of taxes not only keeps the business out of trouble with the government, but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related: Setting up the accounting for your business