Funding Options for Your Skincare Startup

Funding Options for Your Skincare Startup

You’re ready. You’ve researched ingredients, packaging, and formulated an amazing “star product” that’s sure to be a hit. You’re ready to start your natural skincare line! You feel excited…but at the same time are wondering… “how the heck am I going to fund my skincare line?” Before you let that overwhelmed little voice in your head hold you back from moving forward with your skincare line, take a breath–because the truth is, there are several possible funding options for your skincare startup. So if you’re ready to take the plunge into the world of skincare entrepreneurship, read on for helpful tips on how to finance your business.

When starting a skincare business, funding is an important piece of the puzzle. There are many expenses involved with getting your business off the ground, from research and development to manufacturing, to marketing, and paying people to help you. Before seeking funding for your skincare startup, it’s important to have a clear plan in place for how you will use the funds. You should also make sure that you have a solid business plan, a good credit score, and the necessary paperwork in order to qualify for funding.

Skincare business owner sitting at desk

Self-Funding vs. External Funding

When deciding on the best funding option for your skincare startup, it’s important to consider all of your options and how they will fit into your overall business plan. It is also essential to understand the funding landscape and what types of funding are available in order to make an informed decision. Generally speaking, funding options can be divided into two main categories: self-funding and external funding.

Self-funding involves using either personal or business funds to finance a project or venture, while external funding means borrowing money from investors, banks, government programs, etc. When considering funding sources, it is important to weigh the pros and cons associated with each option in order to determine which one makes the most sense for you. Additionally, it is important to make sure that you are fully informed of the potential risks associated with each funding option.

Skincare startup owner packaging products

Let’s Take A Look at The Most Common Funding Options for Your Skincare Startup

Small Business Loans

Small Business Administration (SBA) loans are one of the most accessible funding sources for startups in the United States. The SBA offers several different loan programs such as 7(a), microloans, disaster assistance loans, or even equity financing. The requirements for SBA loans vary, but typically include having a solid business plan (which they have excellent resources to help you with) and credit score, as well as collateral or a cosigner.


Crowdfunding is another funding option for startups looking to raise capital. Platforms like Kickstarter and GoFundMe allow entrepreneurs to easily create campaigns and gather support from friends, family, customers, and strangers alike.

While crowdfunding can be an effective way to get funding quickly, it often requires careful strategizing in order to reach your funding goals. To get started with crowdfunding, create a compelling campaign that outlines why people should invest in your business, and what perks or rewards they will receive for doing so.

Angel Investors

Angel Investors are private investors with deep pockets who offer funding to early-stage startups in exchange for equity, convertible debt, or other incentives. Generally, angel investors specialize in funding specific industries, so it’s important to do your research and find investors who are interested in funding skincare businesses. They usually have experience investing in small businesses, so they look for certain criteria when deciding whether or not to invest. Angel investors tend to be less risk-averse than traditional venture capital firms (who prefer more established businesses), but the funding opportunities can be more limited.

While angel investors offer a great funding option, they can be difficult to find and the process of convincing them to invest can be daunting. If you’re able to get an angel investor on board, however, it could provide your business with a much-needed boost. To find an angel investor, you can search online on sites like LinkedIn, participate in industry-specific investor panels or discussions on platforms like Clubhouse, and attend industry events to network and pitch your skincare startup. Before approaching an angel investor, make sure you have a polished pitch deck and proof of concept ready to present.

Friends/Family Investors

One of the simplest funding options for your skincare startup is tapping into your network of friends and family members. This type of funding usually takes place when someone close to you is willing to invest in your business either financially or with time and resources. It’s important to ensure that expectations are managed from the outset, the terms of the investment and any repayment obligations are spelled out in a contract, and that everyone involved understands their roles and responsibilities moving forward.

Be sure to treat potential friends/family investors with the same level of professionalism and respect you would an angel investor or loan officer at a bank. Though some family members and friends will be willing to come on board as investors because they just want to support you, you’ll likely get even more support if they have confidence in your business plan.

It’s also important to be honest with your friends and family members about the risks of investing in a startup, as well as the potential return on investment. While this funding option can often seem like the most appealing one since funding typically comes without interest payments or equity considerations, it is important to honor your agreements in order to preserve your personal relationships.

Bootstrapping/Self-Funding Your Skincare Startup

Self-funding your business is a great option if you have the resources to do so. It can be faster and less risky than funding through external sources, and you don’t have to worry about sharing equity with others. However, it also means that you as the business owner are taking on all of the risk yourself.

You will need to make sure that you’re prepared for any potential pitfalls or challenges that may arise during the startup phase. You must also be aware that more money will be necessary to foster growth and expansion throughout the course of running your business; so at some point, another funding method might be necessary.

Woman researching startup funding options on tablet

How Do You Figure Out What the Best Funding Option Is for Your Skincare Startup?

No matter which funding option you choose, make sure you research all available options before diving in. There are certain steps entrepreneurs should take before seeking funding or an investor. These include creating a detailed business plan, developing a financial model, understanding cash flow requirements, networking within the industry, and having months of financial statements ready to present.

Overall, funding options for skincare startups vary depending on the individual needs of each business. It’s important to do your research and choose funding sources carefully in order to ensure success down the road. With solid preparation, determination, and proper funding sources, any skincare startup can become a successful venture. Good luck!

skincare entrepreneur demoing product on webcam

What’s Your Biggest Takeaway about Funding Options for Your Skincare Startup?

Please share your insights and whatever questions you still have about funding options in the comments below!

*Note: This content is written as an educational resource only and should not be taken as legal or financial advice. Please consult with a qualified professional for any funding-related decisions.


4 thoughts on “Funding Options for Your Skincare Startup”

  1. Your article on Funding Options for a Startup Skin Care business was informative and I enjoyed reading the different options. My preference would be to finance my business on my own.

    Thank you for the article.

    1. Rachael Pontillo

      That can definitely be a great choice! Thanks for reading and commenting, and good luck with your skincare business!

  2. there are other options as well for buying supplies and such as affirm, sizzle and after pay. and then there’s PayPal credit of course.

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