Businesses come in all shapes and sizes, which is certainly true when starting a lip tint business in the Philippines. Today we will be exploring the official steps you will need to take to open a lip tint business in the Philippines, but what about if you are only looking to open this as a small business and do not have a lot of capital to invest?
In this case, you will not need to complete all of the below steps. However, on the other side of the coin, if you are looking to earn good money from this business so that you can quit your job, then you may wish to include some additional steps such as – how you will grow your lip tint business in the Philippines and how you will innovate your business.
Open A Lip Tint Business Philippines
1. Build Your Lip Tint Business Plan
The first stage of any good lip tint business is to design a plan around your ideas and experience. This is an excellent time for entrepreneurs as you can dive into your imagination. Remember, at this stage, nothing is wrong. It’s all ideas, so it’s a great idea to put down your good ideas as well as your not-so-good ideas.
Once you have a few concepts of what your business will look like, you will then need to design other aspects of the business, such as how much money you will need, how much time this will take, how much profit you expect to make, how you will be different from other businesses and how you will find your customers.
These are a few examples, but the list is not final. In fact, there are many questions that you can ask yourself to help you start a lip tint business in the Philippines, but the good news is that many of the questions can be found on our free PDF business plan template that can be downloaded at the top of this page.
One thing to remember is that you do not need to keep these ideas. You may find at a later stage that some of your ideas may not work well with your larger vision, and therefore, you can come back to this plan and alter a few details before moving forward. Then, once you have a solid foundation, you can move on to the next stage, which is some research and action.
2. Find A Lip Tint Business Supplier
There are a few different options to consider when finding a lip tint supplier in the Philippines. The first method is where you purchase the raw materials and make lip tint from the very start, or you purchase lip tint that has already been made and place your logo and business name on top. The second option is referred to as – private labeling.
Both options have pros and cons, and how much capital and time you have available will also impact which method would be most appropriate for you.
You may find private label companies in the Philippines, but many private label providers are located in China. Alibaba is a great place to find suppliers. Even though Alibaba is Chinese-based, many companies around Asia list themselves on Alibaba, including many Filipino-based companies.
One consideration is that there may be an import tax and a delivery charge if you are importing goods. Most suppliers will tell you of the delivery charge when they are quoting you for the price, but you may wish to ask them just in case. In addition, always always always negotiate. Suppliers will never give you the best price the first time. It’s not personal. It’s how international business works on these kinds of platforms.
3. Research Legal Laws, Regulations & Registration
The republic act no. 3720 is an act to ensure the safety and purity of foods, drugs, and cosmetics being made available to the public by creating the food and drug administration which shall administer and enforce the laws.
Over the years, cosmetics have been under investigation as several products have fallen below health and safety standards. Unfortunately, some chemicals inside cosmetics can be harmful to sensitive skin, and this is why there is a legal framework around cosmetics and the selling of cosmetics in the Philippines.
If you are purchasing from a supplier who is from overseas, you will also need LTO. This allows you to legally import and sell cosmetics (as well as other types of products) but is an essential step that needs to be obtained before getting a certificate of product registration.
The certificate of product registrations (CPR) states that a product falls under the standard of the Philippines FDA. So to summarise, an LTO will help you gain the CRP. But if you are using a private labeling business (which is their product but your logo), they should already be registered if they’re based in the Philippines.
If your suppliers are from overseas, such as China, you will need to check directly with the supplier. Many Chinese suppliers sell products that are fit for European criteria. European standards, on average, are more strict than the Philippines FDA, but Even so, you will need to check before to ensure that the products fall under legal guidelines.
The next stage of the legal process is to register your business. There are many types of businesses. The process will differ depending on the type of business. If you are selling online, then you may wish to head over to security bank, which has a great article about how to register an online business in the Philippines.
The laws and regulations around cosmetics can be challenging. Therefore, as we are looking at how to start a lip tint business in the Philippines, I have included some additional references in this section for those looking for more information.
4. Find A Location For Your Business (optional)
The next stage of opening a lip tint business in the Philippines is to find a location for your business. Finding a location is an optional stage as you may be selling online or selling from your home.
A location can be used as a warehouse to hold your products, but it can also be used as a storefront. There are several successful businesses that I have witnessed using a similar process, but instead, they use their store as a warehouse for their product, and the front of their store is for customers. Again, this can work very well in the right kind of neighborhood.
However, one downside is that in order for this to be profitable, you likely need to sell a lot of items or be selling other item types to earn enough money to pay for the location.
Let’s say, for example, you make a product, and your profit rate is 50 pesos per lip tint sold. So let’s assume we have found a small store in a good location for a total price of 10,000 Pesos. We would need to sell 200 products a month to generate enough profit to break even.
This is why it’s often a good idea to spend a significant amount of time in the initial planning stages, which covers the financial aspect of a business. In the early days of business, income is often slow, so it is recommended to avoid any unnecessary expenses unless they are profitable or valuable to the business.
5. Buying Your Lip Tint Packing, Materials, And Stocks
At this stage of starting a lip tint business in the Philippines, you will have a great deal of information, and now you are ready to start taking some physical action by buying your stock.
You may have already purchased your products now, so if that is the case, this will be the stage where you purchase other materials. This could include stickers for your business, extra protection material for your delivery, or some sample gifts you will give to new customers.
Some cosmetic businesses in the Philippines are also starting to offer gift baskets which include several products that have been delicately wrapped ready to be sold. If this is something you are interested in, this stage will also include purchasing and crafting the basket.
6. Finalize Your Delivery Options
Selling online from the Philippines is a natural part of a business’s journey. Unfortunately, as we have seen over the last several years, those businesses that have not adjusted to the online world have sadly been left behind. There are many pros to starting an online business in the Philippines. But…. what is this got to do with delivery?
As we know, sending an item from your business two a customer is challenging, right? Nope, In most cases in today’s modern world, sending a parcel is very straightforward. The good news is there are a few different options to choose from when starting a lip tint business in the Philippines.
The first option is through using a courier service. MoneyMax has a great article covering 24 services in the Philippines. But there is another option, and that is through fulfillment by Lazada. Of course, there are other fulfillment services, but Lazada is perhaps one of the biggest and well-known, so we will use Lazada to explain this example.
The fulfillment service by Lazada allows you to stock your products in their warehouse, and they will send them to the customer once an item has been sold. Most often, customers who use the Lazada fulfillment center will also sell on the Lazada platform. As a result, this process becomes somewhat passive, but unfortunately, there are some fees involved.
7. Market Your New Business
Marketing has exploded in recent years thanks to technology. As a result, there are many different types of marketing available to business owners. A common type of marketing for a new business is awareness marketing. As the name suggests, this is not the marketing of a product; but instead, the goal is to create awareness of the business.
One of the great things about starting a lip tint business in the Philippines is that there are many potential customers online who can be reached without paying for marketing.
Once your business has grown, you may find affiliate marketing a great source of income for your business. Essentially affiliate marketing is where an affiliate refers your lip tint to another person. If the other person purchases your lip tint, the affiliate will receive a small commission for their referral.
8. Open Your New Lip Tint Business In The Philippines
The last step is to officially launch and open your new lip tint business in the Philippines. Try not to feel too disheartened if the business is not successful in the early days as you expected. In reality, some businesses can take many years before they even become profitable.
But if you have a robust financial plan and strategy, then it shouldn’t take too long for you to become noticed. One other consideration to make when opening a lip tint business in the Philippines is that it may take time for customers to come to your business.
For example, I have been writing articles every day for the last 3 years, but this may be the first time you have come on to the Filipino Wealth website. If so, Welcome, Ha-Ha…. But in all seriousness, it can take time to build a reputation and get noticed.
I succeeded by breaking down my goal into small chunks. My goal is to help 1,000,000 people. This website gets just over half a million views a year, so it will take two years to reach this target. But at the very start, when I had zero readers, I broke my goal down into helping just 10 people, then I focused on helping 50 and then 100 and so on.
I remember an old friend of mine once said, if you want to earn $1,000,000 (or 1 million pesos), you need to help 1,000,000 people. Of course, this is not always true 100%, but his point is understandable.
Advice: Lip Tint For Business Philippines
How to make lip tint for business in the Philippines, I would recommend spending a large amount of your time on innovation. Innovation is not only being different from your competition but instead being different in the market in general. There are so many lip tint products in the Philippines, So what is revolutionary about your product?
If you don’t know the answer yet, then that’s completely normal. If it were so easy, then everybody would be creating a lip tint business right now… The main question to ask is – what are the best methods of innovation? First-principles thinking. This is a way of thinking that is unique and has been used for thousands of years. Elon Musk has gone on record to say that he uses the first principle thinking often.
In addition to innovation, it’s a great idea to spend time exploring the business’s finances. This kind of business will likely take up a large part of your time initially; thus, it’s important to calculate if this hard work will be financially profitable for you.
One last consideration is your market. Who exactly are they, and how will they know about your business? Why would they buy from you instead of lip tint they can find in the mall? What does the market need? Try to think differently, as this will help you stand out from the crowd and find the answers you need to start a lip tint business in the Philippines.