Beauty wholesale distributor with a small storeroom

Salons and spas, pharmacies and gift shops, market and online sellers, and mobile beauty businesses that reorder regularly.

Margin on bulk purchases, with better buying prices as your volumes grow. Regular account customers, volume discounts and exclusive or hard-to-find lines can increase sales.

• Negotiating with suppliers
• Stock control and ordering
• Sales and account management
• Managing cash flow

• Check that products meet the ACCC's mandatory cosmetics ingredient labelling standard, especially if you relabel or repack. If you import cosmetics, check whether you need to register with AICIS, which covers the chemical ingredients. Products with therapeutic claims, such as sunscreens or anti-acne products, may be regulated by the TGA and need to be on the ARTG, so check with the TGA before stocking or making claims
• If you import, check customs, biosecurity and any permit requirements through the Australian Border Force and the Department of Agriculture
• Large stock purchases tie up cash, and products can expire or go out of fashion
• Public liability and product liability insurance, plus insurance for stock and premises
• Check lease terms, council zoning for storage and distribution, and workers compensation insurance if you hire staff

Startup costs are typically around $50,000 to $200,000, depending on your range, opening stock, unit rent and insurance. These are estimates, and large stock purchases tie up cash.

Monthly revenue is typically around $6,000 to $30,000, depending on your brands, number of trade accounts and how often they reorder. Revenue is not profit, as stock and rent apply.

Check the ACCC cosmetics labelling standard, AICIS registration if you import, and TGA rules for products with therapeutic claims. Also check customs and biosecurity for imports, lease and zoning terms, and public liability and product liability insurance.