It’s no secret that Singaporeans are becoming more and more particular about the products they put on their skin. This means that there is a growing market for skincare businesses in Singapore, but starting one can be daunting. Here are some things you should consider before setting up your skincare business in Singapore.
1) Is this something I’m passionate about?
Do not take this lightly. Skincare is something that people need every day, whether they are conscious of it or not, so having to deal with unhappy customers can be draining. It’s not the job for anyone who gets easily frustrated or impatient. You also need to enjoy what you do – don’t go into this with the attitude that it’s just a 9-5 job.
2) What do I know about the industry?
It would be great to think that you can learn everything as you go along, but unfortunately, this is rarely the case. More often than not, one experiences numerous failures before they find success – something which can be discouraging if you don’t know what it takes to succeed and have no previous knowledge or experience in the industry.
3) How much money will it cost to set up my business?
Starting a company will require a substantial amount of capital, and any rookie entrepreneur would do well to make a business plan before investing. This allows you to gauge what your expenses will be, and how much it’ll be realistic for you to invest. Knowing this might also help if you want to approach investors for assistance – after all, it is crucial to show them you’ve done your homework.
At this point, you should identify the sources for your products. You should look for companies offering affordable vitamin c serums, facial cleansers, eye cremes, face moisturizers. Connecting with these suppliers allows you to remain profitable in the market.
4) Can I handle running a business full-time while also holding down another job or studying part-time?
Starting a company is demanding and will be even more so if you are constantly juggling different responsibilities. Skincare requires time and effort, especially when it comes to product development, but at the same time, it can be tedious and irritating when suppliers constantly try to take advantage of your lack of knowledge about the industry. Furthermore, this line of business is not a get-rich-quick scheme, so it’s important to be patient and keep your long-term goals in mind.
5) What is my competition doing?
Skincare businesses have been popping up left and right for obvious reasons – Singaporeans are becoming more conscious about what they put on their skin, using skincare products that are not only affordable but effective. Make sure you know your competitors well – where do they source their products? What prices do they sell for? How much capital have they invested in their business? Knowing this will help inform your decisions when it comes to marketing and promotion methods, pricing, branding, etc.
6) Is now the right time for me to start my business?
Building a company takes a lot of effort and time, so it’s not recommended you go about this if you’re already struggling with finding time for your job or studies. It doesn’t make sense to commit all that hard work into something that will not see success until years down the road.
7) How much will it cost me in taxes and business set-up fees?
In Singapore, starting a company requires registration at ACRA and payment of Business Registration Fees. It is also advisable to consult an accountant or tax agent for advice on how to reduce your taxable profits.
You should also make sure all the products meet the requirements of the Health Products Act of Singapore. You should also understand the difference between a cosmetic or skincare product and products that are not considered as such.
8) How will I generate revenue?
The beauty industry is saturated with businesses despite the smaller population in Singapore so competition can get fierce. Skincare companies are more often than not at the mercy of retail prices instead of their prices. This means that they don’t have much say when it comes to manufacturing and selling their product – they can only choose whether to offer better price deals to retailers.
9) What sort of in-house skills do I need?
All skincare companies require marketers, sales representatives, product developers, and chemists. This is because the products they sell have to follow certain standards.
For one, the ingredients used have to be safe and proven effective. It’s also important that you know how your product works so you’ll better understand what ads or marketing campaigns to use to promote it.
Starting a skincare business in Singapore can sound daunting, but it’s worth the effort. You can increase your chances of succeeding if you take into account the preceding factors when you set up the business.