Regional cosmetics distributor with a small warehouse

Salon and spa groups, beauty supply stores, boutiques, pharmacies and online sellers who want one supplier for many brands.

Margin between bulk buying prices and your wholesale prices, with better margins as you negotiate larger orders. Revenue grows by adding brands and accounts, but stock and rent need steady cash flow.

• Sales and account management
• Inventory and stock control
• Negotiating with suppliers
• Managing cash flow

• Check your state's sales tax registration and resale certificate rules, and your city or county business license requirements
• Cosmetics must meet FDA labeling and safety rules, so check what applies to the products you import or resell
• Ask your landlord and local zoning office whether your use of the unit is allowed
• Stock can expire, get damaged by heat or go out of fashion, so avoid over-buying early on
• Customers may pay on 30-day terms, so check credit before extending it and keep cash in reserve
• Get general liability, product liability and property insurance, and workers' compensation once you hire

Startup costs are typically around $15,000 to $60,000, depending on your rented unit, how many brands you stock and the size of your opening inventory. These are estimates, so avoid over-buying stock early on.

Monthly revenue is typically around $5,000 to $25,000, depending on how many salons, stores and online sellers you supply, your brand range and order sizes. This is an estimate of revenue, not profit, and costs will vary.

Check your state's sales tax registration and resale certificate rules, plus city or county business licenses. Check FDA labeling and safety rules for products you resell, whether zoning allows your unit, credit terms for customers, and insurance.