Cosmetics maker supplying salons, spas and shops

Hair and beauty salons, spas, independent retailers, and small brands that want products made under their own label.

You sell cases or bulk orders at wholesale prices and earn repeat revenue from regular reorders. Private-label runs add a minimum order fee on top.

• Formulation or access to a qualified formulator
• Production planning and quality control
• Selling to businesses and managing accounts

• Health Canada notification and labelling rules apply to every product, including bilingual labels, so check them for each item
• Keep batch records and good manufacturing practices so you can trace a problem and handle a recall
• Zoning, fire code and a municipal business licence for a production space, so check with your municipality
• Product liability and commercial general liability insurance, and WCB/WSIB coverage once you hire (rules vary by province)
• Tying up cash in ingredients, packaging and unsold stock
• Salons may be slow to switch suppliers, so expect a long sales cycle

Estimates suggest startup costs typically around $15,000 to $60,000, depending on your unit, equipment, ingredients, packaging and how much stock you hold. Cash can be tied up in ingredients, packaging and unsold stock, so plan for that.

Check Health Canada notification and labelling rules for every product, including bilingual labels. Also check zoning, fire code and a municipal business licence for your production space, and keep batch records and good manufacturing practices so you can trace problems.

Monthly revenue estimates typically run around $4,000 to $20,000, depending on your product line and customers. Salons may be slow to switch suppliers, so expect a long sales cycle, and remember revenue is not profit once ingredients and rent are paid.