Startup Costs of a Beauty Direct-Sales Business: A Complete Worksheet
"Low startup cost" is often true for the sign-up fee, but it's rarely the whole picture. Here's every cost category to budget for, so you can compare opportunities on real numbers from each company.
Upfront costs
- Sign-up or starter kit fee. Some companies charge a fee; some offer free sign-up with optional kits. Check the current offer.
- Demo products and testers. Customers want to try before they buy.
- Samples. Small sizes to hand out.
- Brochures or catalogs. Sometimes sold to reps rather than given free.
- Basic supplies. Bags, order forms, business cards, a card reader.
Ongoing costs
- Minimum order or activity requirements (if any)
- Shipping and delivery
- Website or online-store fees
- Ads, boosted posts, event or market booth fees
- Payment processing fees
- Mileage and parking
- Customer gifts, discounts and free shipping you offer
- Unsold, expired or returned products
Taxes
As an independent contractor you'll generally owe income tax and self-employment tax on profit, and you may need to collect sales tax depending on your state and the company's setup. Keep receipts; many business expenses are deductible. A tax professional can tell you what applies to you.
Your worksheet
Fill in the figures from the company you're considering.
| Cost | Upfront | Monthly |
|---|---|---|
| Starter kit / sign-up | $______ | n/a |
| Demo products & samples | $______ | $______ |
| Brochures / catalogs | $______ | $______ |
| Shipping | n/a | $______ |
| Website / app fees | $______ | $______ |
| Marketing & events | $______ | $______ |
| Supplies & payment fees | $______ | $______ |
| Mileage | n/a | $______ |
| Total | $______ | $______ |
Want this as a printable, plus sales and expense trackers? See the starter planner.
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