What You Need to Know About Starting a Home-Based Cosmetic Business

It might come as a surprise to learn just how many home-based businesses eventually grew into mega-corporations. You may be familiar with some of the syndicated cooking shows that launched from a home kitchen, eventually growing into a corporation with products being sold in retailers around the country.

However, did you know that Amazon, Google, and Minecraft also started as home-based businesses? If you are a woman who has formulated some of your own cosmetics and toiletries from your kitchen with amazing results, perhaps you want to begin making and selling your creations from home as well. Here is some of what you need to know about starting a home-based cosmetic business in the United States.

FDA Regulations

FDA regulations on the home-based cosmetics industry are actually a bit looser than you might believe. The two most important aspects to be cognizant of are avoiding mislabeling products and the use of some additives such as colors.

While there are no strict regulations for products manufactured at home, labeling is critical and becomes even more so if you will eventually be selling your products at retailers or door-to-door. In cases like those, you would do well to refer to the FDA fact sheet that outlines labeling regulations.

State Regulations

Many insurance laws are regulated by the state in which you intend to do business. It is standard practice to have liability business insurance. There are several ingredients in cosmetics that could cause severe allergies in some people. If an ingredient should lead to something as severe as an anaphylactic shock with long-lasting consequences, you would want to have business liability in place to protect you against claims or lawsuits.

Note that employer liability insurance is a legal requirement if you decide to hire staff.

Environmental Regulations

You should also keep environmental regulations in mind as well. These would deal with any substances used in manufacturing cosmetics at home. Dangerous chemicals cannot be used unless under strict OSHA guidelines, which would open your home up to an inspection. When disposing of any dangerous substances, they would need to be properly packaged and labeled and taken to toxic waste disposal in your city or county.

It should also be evident that there are certain substances you absolutely cannot use as ingredients if they are graded as hazardous or toxic. Bear in mind that if a substance is dangerous for use by humans, you can’t very well flush it down the garbage disposal or toilet.

Mother Nature Knows Best

There are several reasons why so many women seek cosmetics and toiletries that are all-natural. These are the products that will often sell off the shelves in retailers almost the moment they are stocked. You would do well to keep your additives, colors, and all ingredients as natural as possible to avoid breaking any of the above regulations.

The only thing to really be aware of here is that if you label your line of cosmetics “All Natural,” you would be well advised to understand what the FDA considers natural. To do anything else would be a grave case of mislabeling and could lead to a claim after a claim against that business liability insurance you carry.