5 common mistakes to avoid when starting a beauty business

Starting a beauty business is an exciting leap… but it comes with a learning curve.

For many first-time founders, it’s easy to get caught up in the excitement of product development and branding while overlooking a few foundational steps.

Whether you're dreaming up a new skincare line or figuring out how to sell beauty products digitally, steering clear of some common early mistakes can save you time, money, and stress.

This article outlines five of the most frequent mistakes in business that new beauty entrepreneurs make—and how to avoid them. Use it as a blueprint for building a smarter, more sustainable beauty brand.

Let’s dive in:

Mistake #1: Skipping market research before developing products

Too many new beauty brands dive straight into product development without fully understanding their target audience.

While you might have a great idea for a serum or eyeshadow palette, you need data to back up that consumers need this product.

Why? Well, without a customer base, no matter how great you think your product is, it won’t last.

Why does market research for beauty businesses matter?

Without proper market research, you risk creating products that don’t resonate or solve a real customer problem. This will result in a product flop along with wasted time, money, and other resources.

How to avoid this mistake:

• Conduct surveys or interviews with your ideal customer.
• Analyze trending products and customer reviews in your niche.
• Use tools like Google Trends or Ubersuggest to research search demand.

Blanka tip: Platforms like Blanka allow you to quickly test and customize beauty products, so you can gather feedback before scaling.

Mistake #2: Poor branding and unclear positioning

Your product isn’t just competing on quality—it’s competing on experience.

A study by PwC found that 73% of customers say that experience is an important factor in their purchasing decisions, and they’re willing to pay more for the experiences that matter most to them.

So, without strong branding and positioning, customers won’t understand why they should choose your product over another or whether the product is truly for them. All of this leaves the customer with a poor brand experience.

Why does branding and positioning matter?

Clear branding builds trust, recognition, emotional connection, and a more positive customer experience. And in today’s world, this is essential for standing out in a crowded cosmetics market.

How to avoid this mistake:

• When starting a beauty business, define your voice, values, and visual identity early.
• Craft a positioning statement: Who is your product for, what makes it different, and why should customers care?
• Make sure your packaging, website, and messaging all align with your outlined brand identity.

Blanka tip: Use customer personas and mood boards to keep your branding focused and your target market in mind.

Mistake #3: Overlooking legal and regulatory requirements for cosmetics

Although it might seem less glamorous, not paying attention to legal and regulatory requirements as a beauty business is detrimental.

Cosmetics are regulated, and noncompliance can shut down your business before it even has a chance to start. From labeling to ingredient safety, you must understand the rules in your target market.

Why do legal and regulatory requirements in cosmetics matter?

This mistake isn’t about target markets, positioning, or marketing; it’s about the safety of consumers. Mistakes here can lead to fines, recalls, or a loss of customer trust—all of which are very difficult to recover from.

How to avoid this mistake:

• Research local and international cosmetic regulations (FDA, EU, etc.).
• Ensure you have proper documentation for ingredients and formulas.
• Use compliant packaging and include required safety warnings and labels.

Blanka tip: If you're not formulating products yourself, choose a private label supplier like Blanka that ensures regulatory compliance.

Mistake #4: Launching without a clear strategy to sell beauty products online

One of the most important days of starting a beauty business: launch day.

But unfortunately, it’s a day when many mistakes happen. Sometimes, beauty founders focus so much on product creation that they forget to plan how they’ll actually sell it.

The result of not focusing on a launch strategy? Founders end up launching their business with much lower traction than predicted, which can start the brand off on the wrong foot.

Why do beauty product launch strategies matter?

A beautiful product doesn’t mean anything if no one sees it. Having a clear strategy to sell beauty products online and to the right target market is crucial. Without loyal customers and ways to build that base, long-term success will be challenging.

How to avoid this mistake:

• Set up a user-friendly, mobile-optimized ecommerce store.
• Invest in product photography and SEO-optimized descriptions.
• Lean on social media, user generated content, influencer marketing, and content marketing (i.e., blogs).
• Consider marketplaces like Etsy, Amazon, or TikTok Shop to increase visibility.

Blanka tip: Blanka connects directly with ecommerce platforms like Shopify, making it easier to start selling beauty products online fast.

Mistake #5: Undervaluing pricing strategy and not calculating costs properly

And finally, pricing strategies matters.

There are a few pricing mishaps that can happen when starting a beauty business. Maybe you set your prices too low in hopes of attracting customers, or set them too high and got outpriced by competitors.

Either way, not having the research and strategy in place to effectively price your beauty products can hurt your positioning and profit margins.

Why do cosmetic pricing strategies matter?

Underpricing can damage your brand’s perceived value and make it hard to cover costs, let alone turn a profit. But overpricing can also hurt your perceived value if customers don’t feel the quality matches the price.

How to avoid this mistake:

• Calculate all costs, including product, packaging, shipping, marketing, and platform fees.
• Factor in your desired profit margin to get the final price of your products.
• Research competitors and position your pricing accordingly.

Blanka tip: Don’t be afraid to charge for quality. Premium pricing can elevate your brand’s image when supported by great branding and product experience. But remember, the products must match the price point with these strategies.

Start smart to build a strong beauty business

Starting a beauty business is more than launching a product—it’s about building a brand that resonates, scales, and delivers real value.

By avoiding these five common mistakes, you’ll be in a stronger position to create a successful business that lasts.

Whether you’re figuring out how to start a makeup business  or searching for smart ways to sell beauty products online, use these lessons to build a strong foundation.

Start a private label beauty business today.

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