Start A Lip Balm Business - Business Ideas

Pat Walls

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Updated: September 15th, 2022

Start A Lip Balm Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A lip balm business involves creating and selling products that are used to moisturize and protect the lips. These products may be formulated with natural ingredients or may contain various additives such as sunscreens, flavors, and fragrances.

To start a lip balm business, you will need to research and source the ingredients for your products, decide on packaging options, and determine your pricing strategy. It can also be helpful to conduct market research to understand the demand for lip balm in your area and to identify potential competitors.

To run a successful lip balm business, it is important to focus on creating high-quality products that are effective at moisturizing and protecting the lips. It can also be helpful to differentiate your products from those of your competitors through the use of unique ingredients or packaging. Building a strong brand and developing a loyal customer base through good customer service and marketing efforts can also be key to success in this business.

It is important to note that if you plan to sell your lip balm products online, you will need to follow all relevant laws and regulations, including those related to product labeling and advertising. You may also need to obtain necessary licenses or permits to operate your business.

Starting a lip balm business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell lip balm, or selling lip balm online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$713M

starting costs

$13.7K

gross margin

40%

time to build

210 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Office Space Expenses	$0	$7,000
Inventory Expenses	$350	$14,750
Software Expenses	$150	$2,794
Website Costs	$13	$215
Advertising & Marketing Costs	$0	$2,450
Total Startup Costs	$513	$27,209

See all startup costs ➜

Successful Businesses

Business	URL	Rank
wet n wild Beauty	wetnwildbeauty.com	90,454
Hemp Life Mag	hemplifemag.com	111,249
Buy 100% Authentic Makeup	vegas.pk	169,828
Lip Smacker	lipsmacker.com	342,753
VERTLY	vertlybalm.com	352,800
B3 Balm	b3balm.com	445,780
Raining Rose Promotional Products	rainingrosepromos.com	464,177
ChapStick: Natural Skincare for Lips	chapstick.com	495,100
The CBD Boutique	thecbdboutique.com	593,904
Beessential	beessential.com	594,545
S.W. Basics	swbasics.com	616,505

See all businesses ➜

Pros & Cons

Pros	Description
Flexibility	You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home	It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required	The cost to start a lip balm business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.
Rewarding work	Starting a lip balm business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable	With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website	A lip balm business gives people a reason to visit your website and to keep coming back to you!

See all pros ➜

Cons	Description
Crowded Space	Competition is high when it comes to your lip balm business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Security Issues	With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits	With a lip balm business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation	Often times, as a lip balm business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes	As a lip balm business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

See all cons ➜

Marketing Ideas

1

Affiliate Program

Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.

Learn more about affiliate program ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

See all marketing ideas ➜

Key Stats

Startup Costs

Successful Businesses

90,454

111,249

169,828

342,753

352,800

445,780

464,177

495,100

593,904

594,545

616,505

Pros & Cons

Marketing Ideas

Affiliate Program

Word of mouth

Social Media Advertising