How to Start a Beauty Business, According to a Financial Planner

Table of Contents Andrea’s Financial StatsDecide How You’ll Finance Your BusinessDetermine How Much Capital You…

Entrepreneurship is rooted in sacrifice and requires an immeasurable amount of commitment, but the financial benefits are worth it. According to Federal Reserve Board data, in 2019, the median net worth of a family was $122,000; for self-employed families, it was $380,000. This difference was top of mind for Andrea M. Robinson, a 35-year-old Pittsburgh resident, when she decided to create Forever Drea Marie, a luxury, botanical skincare line. Robinson plans to launch her beauty brand in the second quarter of 2022, but wants to ensure she’s making smart financial decisions. Here, Brittney Castro, certified financial planner for Mint, an online budgeting tool, shares the financial strategy that will catapult Robinson’s business to short- and long-term success.

Andrea’s Financial Stats

Estimated Annual Pretax Income: $25,000.
Monthly Expenses:
 $900, including product and marketing expenses, plus office space.
Estimated Total Net Worth: $25,000.
Debt: $20,000, including creation of website, inventory, and photos.
Savings: $20,000.
Financial goals for business: Double income in the first year, with hopes to generate enough capital to expand to the makeup category.

Decide How You’ll Finance Your Business