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How To Start A Skincare Line With No Money

One of the biggest problems with starting a skincare business is having a limited budget to work with. Traditionally, creating and manufacturing the products needed for your skincare line meant investing lots of money. This however is no longer the case. In this article, we’ll cover everything you need to know about how to start a skincare line with no money and get you developing the right business plan for success.

Let’s Be Clear About The Basics

You will still need some money to cover the minimum costs to set up your business

To be blunt, you will still need some money to start a skincare line from scratch. Having $0 to your name will not work. There are also legal costs that you’ll have to pay such as business name registration ($39 for one year). Check out this government website for more information on the registrations your business will need.

And with a very limited amount of funding for your skincare line, you will need to do a lot of work and research yourself.

You Need To Do Your Research

Coming up with business ideas for your skincare line is done through research. This research will need to be broken down into 3 parts; product research, market research, and competitor research.

Product Research

First, you will need to take care of your planning with product research. An essential part of starting your business is finding what products have been gaining popularity in the market. It’s also worth knowing what products have been staples of the industry and maintained a steady following. Going with a product line that is innovative and trendy can be riskier.

Find out the categories that popular products fit into and what their purpose is. What do they claim about their benefits? Another final aspect is where they are made. Products manufactured here in Australia may be more appealing because people prefer to support local businesses.

Market Research

Spend time understanding what the market is like right now

The next step is doing market research. In Australia, the beauty industry is worth over $7 billion. What’s more is that $2.9 billion is spent on skincare products, with 36% of beauty products sold online last year. 

With the industry being so big, there is a good opportunity for you to find a niche within it. To take some of that market share, you’ll need to empathise with customers and understand who they are. Using tools such as Google Trends and Semrush will help you in finding the right skincare topics that people are looking for.

Competitor Research

The skincare industry is very competitive, with lots of businesses battling for customers. You will need to understand what your competitors do so that you can challenge them. The areas that you will need to make a note of from your competitors are:

  • Product Descriptions – what are the selling points they emphasise to make people buy their products? What kind of tone and language do they use?
  • Pricing and Promotions – are they selling products at a premium price? What reasons do they give for their pricing decisions? Do they have price promotions for special occasions like Christmas sales?
  • Target Audience – what are the demographics of their core customers? Is it clear who they are trying to appeal to? Why are they targeting them? 
  • Gaps in the Market – can you spot any customers that they aren’t targeting?

Product Development and Manufacturing

This is where we’ll give you the biggest answers on how to start a skincare line with no money. Product research and development is one of the biggest areas of investment needed in starting a skincare business. 

DIY Production

Making your products at home doesn’t have to be difficult

We recommend making the skin care products yourself to save on costs. Commercial machinery will cost thousands to purchase, so processing and packaging yourself will be the lowest cost option. The drawback here is the limited scale of production.

When coming up with product formulations, the most simple method is to look some up on the internet or look for tutorials on youtube. The ingredients you choose will need to be affordable and easy to process in your home. 


If your budget allows it, contact a good manufacturer to take care of the manufacturing for you. This lets you put more time into the other areas of setting up your business. Simple formulations with simple ingredients aren’t typically expensive to have produced. 

Setting Up An Online Store

Get your online store running and generate some sales!

Taking out a large business loan for a physical store will put you in unnecessary financial stress. We recommend setting up an online store. eCommerce stores have lower setup and maintenance costs, with the biggest being not having to pay rent or sales staff. 

Popular eCommerce platforms we recommend are Shopify and Wix. Setting up your online store with these platforms is easy. They have also had lots of testing, meaning your customers won’t leave your website from it not working. As part of establishing your identity, you will also need to decide on your store’s theme and aesthetic.

Marketing Strategies

The next thing you’ll need to address is how you will market your products. Word of mouth will not get you enough awareness to generate many sales. And if you’re making a product that is simple due to a low budget, the marketing of it will be the key to making it stand out

Remember, your core marketing message that you will send out to people will need to be about how it’s different to everyone else. Do this by promoting a certain lifestyle that your product and brand aligns with or by having unique ingredients.

Social Media Marketing

Social media marketing is using social media platforms to promote your brand and product/service. This is effective when you have an online store, because you can link your website directly within social media promotions and drive up traffic. Do some research and choose the social media platform that will reach your target market. If you have a younger audience, it’s a good idea to use platforms like Instagram and Tik Tok

Influencer Marketing

A great way to get traction fast is with influencer marketing

Influencer marketing is when you pay people with large followings, known as influencers, to promote your brand and products. If chosen correctly, your brand and products will get instant results with more traffic to your website and more sales towards your cosmetics line. This is a very popular strategy within the skincare industry, with many people making use of affiliate programs; people are paid commissions every time they promote you or specific products. 

Start Your Skincare Line With No Money Today!

Having a great business plan with lots of time put into research will be the key for how to start a skincare line with no money. After continuing to put your time and effort into your brand once it’s established, you will be able to invest more money and grow it with the cash flow you receive. For more tips on starting a skincare business, visit the HH Australia blog.