A beard oil business makes and sells oil that is specifically made for the beard. They may also make other beard grooming products like balms, cleansers, and waxes. The growing adoption of beards in this age has created a huge market for beard oil, and these oils are made to help beards look and feel as good as possible.

They also aid in styling and can improve the condition of the skin underneath. This is a unique business you can start even from your home as long as you can market your oil strategically.

According to reports, the US Beard Oil Market reached USD 130.76 million in 2022 and is expected to grow at a CAGR of 10.33% to attain USD 229.55 million by 2027.  Indeed, there is a massive demand for beard oil and other beard care products, and you can genuinely start a business that sells beard oil directly to consumers and/or offer products through third-party resellers.

Steps on How to Start a Beard Oil Business 

  1. Conduct Market Research

When looking to start a beard oil business, you must conduct your market research upfront to note who your ideal customers should be. A good number of beard oil businesses that fail within the first few years make the mistake of not identifying who they intend to sell to. Also, find out major beard product brands.

Take your time to examine their products, price points, and customer reviews, as well as what sells best. Note that what you are looking for is a market gap to fill. Also note that you might consider targeting a niche market by specializing in a certain aspect of your industry, such as products for dry-skinned men.

a. Who is the Target Market?

At first glance, you would agree that your ideal target market is men with beards. However, note that there are subsets in this massive market with varying priorities. Would you target rural or urban areas, Blue-collar or white-collar, Ease of growing beards or difficulty?

Nevertheless, note that your ideal target market will mainly consist of men aged 18-60. You can also choose to target businesses, such as retailers and distributors, who can buy your products in bulk.

b. Is Beard Oil Business a Profitable Business? 

Yes. According to experts, the growth potential of the general beard product market is quite significant. Beard products, especially beard oil, have been growing in popularity in recent times – as has the market for men’s grooming in general. For the most part, beard oil businesses can be relatively profitable if managed very well. However, note that the profitability of your beard oil business will depend on numerous factors like;

  • The current landscape of the beard oil competition
  • Direct expenses for the business
  • Overhead
  • Advertising and marketing expenses
  • The current state of the economy
  • Then demand your beard oil business
c. Are There Existing Niches in the Industry? 
  • Fully organic and eco-friendly beard oil
  • Beard oil for dry-skinned men
  • Beard growing oil
d. Who are the Major Competitors? 
  • Captain Fawcett
  • Bulldog
  • Gillette
  • Lab Series
  • Elemis
  • L’Oreal
  • Seven Potions
  • Nutrix
  • Beard and Blade Supply Co.
  • Bossman Brands Inc.
  • Brothers Artisan Oil
  • Edgewell Personal Care
  • Hawkins & Brimble
  • Ranger Grooming Co.
  • Mountaineer Brand
  • Prophet and Tools
  • Klapp Cosmetics
e. Are There County or State Regulations or Zoning Laws for Beard Oil Business? 

Yes. Owing to that, it is always important you research the regulations in your location to know if you need business permits or licenses to start and run your beard oil business. A good number of states in the United States require businesses that offer certain services like beard oil, to be licensed.

Indeed, the requirements for a beard oil license will vary by state and county; therefore ensure you check with your local licensing authority. Signage permits, public improvement fees, impact fees, and sewer connection fees are other important things to consider before jumping to the next step.

f. Is There a Franchise for Beard Oil Business? 

No. There are no franchises that make or sell beard oil in the United States. Anyone looking to start a beard oil business will have to start this business from the scratch.

g. What Do You Need to Start a Beard Oil Business? 
  • Adequate Research
  • DBA
  • Essential Oils
  • Necessary Licenses and Permits
  • Ecommerce Marketplace or Platforms
  • Customer Acquisition Plan
  • EIN (Employer Identification Number)/Federal Tax ID Number

2. Choose a Memorable Business Name 

When it comes to Choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.

If you are considering starting your own beard oil production company, here are some catchy names that you can choose from;

Beard Oil Business Name ideas
  • Bright Beards
  • Fresh and Shiny Beards
  • King’s Beard Oil
  • Alpha Male
  • Light Beards
  • Perfect Touch
  • Ample Goatee
  • Beard Essentials
  • Beard Nutrition
  • Food for Beards
  • No Stress Beard
  • Insured Beard
  • Beard Scent
  • Cockscomb
  • Scented Beard Oil
  • Zero Tangles
  • Smooth Moustache
  • Brown Core
  • Luxuriant
  • The Bristling

3. Register your Business 

a. What Type of Business Structure is Best for Beard Oil Business? 

When it comes to starting a beard oil business, note that the legal entity you choose will determine how you manage the business. Nonetheless, the LLC remains the ideal option to consider as it combines the characteristics of corporations with those of sole proprietorships or partnerships.

Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

b. Steps to Form an LLC 
  • Select a Name for Your LLC.
  • File Articles of Organization.
  • Designate a registered agent.
  • Decide on member vs. manager management.
  • Put together an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
c. What Type of License is Needed to Open a Beard Oil Business?

Have it in mind that the regulations, licenses, and permits associated with starting your beard oil business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

Also, note that you may be expected to obtain state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, therefore check the websites of your state, city, and county governments or contact the appropriate person to learn more.

d. What Type of Certification is Needed to Open a Beard Oil Business?

Note that there are no specific certifications needed to start a beard oil business. However, you should consider taking a course in a cosmetology school or becoming a certified aromatherapist as part of your training. Other certifications to consider include:

  • Certified Essential Oil Practitioner
  • Independent Essential Oil Certification
  • Certified Sales Professional (CSP)
e. What Documents are Needed to Open a Beard Oil Business?
  • Business License
  • Tax Identification Number
  • Health Inspection Certificate
  • Business Plan
  • Operating Agreement (for LLCs)
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
f. Do You Need a Trademark, Copyright, or Patent? 

You may need to file for patent protection if you are making beard oil from unique products or using a formula that would ensure your product stands out in the market. Have it in mind that patent protection is essential for the development or commercialization of industrial biotechnology processes and products.

In addition, you may also want to safeguard your company’s logo and other documents or software that is unique to you or even jingles and media production concepts. However, ensure you speak with an expert or consider consulting with the USPTO for additional information and directions.

4. Do your Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Beard Oil Business? 

Note that the cost of starting a beard oil business will surely vary as not all new business owners have the same business plan and needs. You can also choose to experiment with making your own beard oils and setting up at an online shop for under $100. You can also choose to construct your own manufacturing facility to make a range of products. Nonetheless, the cost of starting a new beard oil business ranges between $300 and $20,000.

b. What are the Costs Involved? 
  • Office/Retail space costs for beard oil business: $100 – $500 per
  • Equipment and supplies: $0 – $100,000+
  • Communications: Approximately $100 – $300/month
  • Utility costs for business: $2.10 per square foot
  • Licenses and permits: $300 –
  • Insurance for beard oil businesses: $0 – $300/month
  • Lawyer and accountant: $50 – $500 per hour
  • Inventory: Varies greatly
  • Advertising and marketing: $0 – $1,000+/month
  • Making a website: $30.00 – $1,000+
c. What Factors Determine the Cost of Opening a Beard Oil Business? 
  • Business license and permits
  • Business structure and registration
  • Insurance
  • Business size
  • Inventory
  • Advertising and marketing plan
  • Miscellaneous
d. Do You Need to Build a Facility?

The choice you make here will most often depend on your financial capabilities. Note that this business can be started from your home, but if you intend to open a store or a manufacturing facility, then you should start off with a short-term rent/lease while test running the business in the location. If things work out as planned, you can invest in a long-term lease or straight up purchase the property.

e. What are the Ongoing Expenses for Running a Beard Oil Business?

Truth be told, your ongoing expenses will depend on the size of your business. Just as it was noted above, you can choose to experiment with product creation and small-batch sales for $100-$200 a month. However, if you are starting a business with numerous staff and manufacturing costs, then expect your ongoing cost to reach $100,000 a month – which is why you need financing if you are starting a brick-and-mortar business.

f. What is the Average Salary of your Staff?
  • Chief Executive Officer: $58,311
  • Quality Assurance Manager: $48,820
  • Human Resources and Admin Manager: $46,700
  • Sales and Marketing Team: $44,570
  • Accountant: $41,870
  • Purchasing Manager: $38,914
  • Store Manager: $36,560
  • Delivery Driver: $28, 450
  • Customer Service Executives: $26,980
  • Security Guard: $23,611
g. How Do You Get Funding to Start a Beard Oil Business?
  • Raising money from friends and family
  • Bootstrapping by tapping into your own savings account
  • Sourcing investment from outside investors

5. Write a Business Plan 

a. Executive Summary

Alpha Male is a new men’s grooming Product Company in Las Vegas, Nevada that will produce, market, and sell fresh, strong, and bold grooming products for men. At Alpha Male, we believe that masculinity is a lifestyle and we intend to cater to the grooming needs of the modern man.

All our products at Alpha Male will exude an attitude of coolness, strength, confidence, and testosterone while maintaining the sleek integrity of a high-quality product. They will also be 100% formulated in the U.S.A. with a scent, tingle, and boldness that demand to be noticed.

b. Products and Service 
  • 100% USDA Organic Beard Oil
  • Mint Beard Oil
  • Extreme YAWP Body Wash
  • Original Hair & Body wash
  • Shampoo With Caffeine, Ginseng & Sugarcane
  • Conditioner With Caffeine, Ginseng &Leopard’s Bane
  • Pre-Shave Oil With Sandalwood, Guarana & Vitamin C &E
  • Shave Cream With Sandalwood, Black Pepper, Green Tea, And Vitamin B
  • Aftershave With Sandalwood, Guarana, And Vitamin A, C &E
  • Body Lotion With Eucalyptus, Cypress, Comfrey, Green Tea,
c. Mission Statement 

At Alpha Male, our mission is to start a standard world-class men’s grooming Product Company that will favorably compete in the market and also cater to the varying needs of the modern man.

Vision Statement 

At Alpha Male, our vision is to build solid men’s grooming product company whose products will not only be sold in Las Vegas but also throughout the United States of America and in neighboring countries.

d. Goals and Objectives
  • Produce Premium Goods/Services
  • Produce Goods Favored By The Market
  • Become Known And Well Known
  • Gain Access To Niche Markets
  • Maximize Ecommerce
  • Utilize Various Online Platforms
  • Make Use Of Natural Ingredients In Our Product Line
e. Organizational Structure 
  • Chief Executive Officer
  • Quality Assurance Manager
  • Human Resources and Admin Manager
  • Sales and Marketing Team
  • Accountant
  • Purchasing Manager
  • Store Manager
  • Delivery Driver
  • Customer Service Executives
  • Security Guard

Marketing Plan

a. SWOT Analysis
Strengths 
  • Reliable Suppliers
  • Strong Captured Marketing & Promotional Advertisement
  • Strong Brand Equity
  • Highly Skilled Employees
  • Strong Distribution Network
  • Investment In Technology & Innovation
Weaknesses 
  • Low Net Performance And Earnings
  • Need Of High Technology
  • Operational Difficulties
  • New Business
Opportunities 
  • Lower Inflation Rate
  • New Trends In Consumer Behaviors
  • New Preferences In The Men’s Grooming Product Market
Threats 
  • High Cost
  • Lack Of Long Term Contracts With Suppliers
  • Regulation Pressures
  • Direct And Indirect Competition
b. How Do Beard Oil Businesses Make Money? 

Businesses in this line make money by selling beard oil and products to consumers and/or retailers. Note that some prefer to focus on direct-to-consumer sales, while others choose to focus on selling products through retailers like drug stores, supermarkets, and so on.

c. Payment Options 
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Sales & Advertising Strategies
  • Reach out to local newspapers about your launch
  • Identify social media influencers your customers follow
  • Host a business launch event at your office, storefront
  • Run a business launch sale to attract first-time customers
  • Run a few ads online to attract customers
  • Get your friends and family to share your products on social media
  • Partner up with other local businesses in the area to share your business

Financial Projection 

a. How Much Should You Charge for your product? 

According to industry reports, high-quality beard oil can sell for anywhere between $15-$40 or more. For instance, Beardbrand is known to sell beard oil for $29, while Husky Beard sells beard oil for $20. Both are considered relatively high-end products.

b. How Much Profit Do Beard Oil Business Owners Make a Year? 

Just as it was noted above, high-quality beard oil can sell for anywhere between $15-$40 or more, and they are often sold in sets. If you sell sets of 6 at $120 and sell 10 sets per day, you will make $438,000 in annual revenue. However, when you are just starting out, you are likely to make far less. But if you can put together a winning strategy, then you can expect to earn something similar.

c. What Factors Determine the Amount of Profit to Be Made? 
  • Niche
  • Supplies
  • Product Quality
  • Marketing and Customer Retention Strategies
  • Investment
  • Business Agreements
d. What is the Profit Margin of a Beard Oil Business? 

The average per-unit price of beard oil products is about $9, with the average profit margin in the industry at about 60%. Your revenue will of course depend on your capacity to generate sales.

e. What is the Sales Forecast? 
  • First Fiscal Year (FY1): $46,000
  • Second Fiscal Year (FY2): $127,000
  • Third Fiscal Year (FY3): $390,000

6. Set Up your Shop 

a. How Do You Choose a Perfect Location for Beard Oil Business

Truth be told, a beard oil business doesn’t need to seek or have a physical location. Have it in mind that you can decide to sell your beard oil online, in a local store, or just to friends and family.

However, if you feel a location is important or you see a need to be close to suppliers and manufacturers, then ensure you consider your options extensively before settling for any location. Make sure the location’s monthly rent is in alignment with your financial business plan and you’re not overspending.

b. What State and City are Best to Open a Beard Oil Business? 
  • Las Vegas, Nevada
  • New York City, New York
  • Los Angeles, California
  • Santa Barbara, California
  • Honolulu, Hawaii
  • San Diego, California
  • Anchorage, Alaska
  • Orlando, Florida
  • Chicago, Illinois
c. What Equipment is Needed to Operate? 

Note that the equipment you require to start this business will depend on how much capital you have available. If you’re starting with little to no money, you need to make sure you’re only acquiring the necessary equipment to get the business off the ground. Be sure you’re not wasting money on “flashy” equipment or software that’s not needed. The basic equipment you will need include;

  • Bottles, labels, and packaging supplies.
  • Business cards.
  • Essential oils, carrier oils, and fillers
  • Distiller and propane source

7. Hire Employees 

Have it in mind that you can only do so much on your own. Although you can start off making some oils and selling them online, but if you want to grow your business you will need help. The staff you will need may include:

  • Sales Staff: make sales, customer service
  • General Manager: handle operations
  • QA Manager: guarantee quality of all products
  • Marketing Lead: SEO strategies, social media

Some very easy ways to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option like advertising on Indeed, Glassdoor, or ZipRecruiter. 

8. Launch the Business Proper

To ensure your clients know that you exist and also know the products you sell, you might have to consider hosting a launch party. However, before you do that, you must prepare by reviewing and improving some critical elements of your business. Things to consider include;

  • A reliable supplier
  • Essential software and tools
  • Marketing
  • Accounting
  • Equipment
a. What Makes a Beard Oil Business Successful? 

To ensure that the beard oil business becomes successful, it is very important you reduce costs, increase sales, or both. Have it in mind that cost reduction tends to come from increasing the scale of your operation. When you are making products in your home, they may cost you $3 or more a bottle, but when you own a manufacturing facility, it offers you the platform to drive that down to a few dollars.

Note that increasing sales is the most realistic way to be more profitable in this line of business, and this will most often come down to good branding. To set your product apart in the market, work hard on finding your brand identity and getting your name out there.

b. What Happens During a Typical Day at a Beard Oil Business? 

According to experts, a typical day in this line of business might revolve around product designing, product sales, team management, finances, or a combination of all these.

c. What Skills and Experience Do You Need to Build a Beard Oil Business?

To ensure you successfully start and run this business, you will need to have cosmetic design experience, product design experience, and also sales skills to market your products. You will have to handle multiple roles, especially when you are just starting out. These roles may include creating beard products that are unique in the market, coupled with the necessary skill and ability to convince potential clients to buy your products.