The beauty industry has been one of the world’s largest industries for generations. It isn’t a surprise that the popularity of this industry has continued to blossom in today’s mobile-forward world. This means, there are many new beauty tech startups seeking investment today. If you’re going to secure seed money, you’ll need a beauty app business plan that impresses investors.

The beauty app market continues to grow. Today, there are many beauty-based software categories including virtual makeover apps, makeup simulators, salon scheduling apps, on-demand spa apps and more. In this post, we’ll explain what you need to know to create a beauty app business plan that wins.

How Do Business Plans Differ for Beauty Apps?

While business plans for this industry often follow the format as other app business plans, there are a few differences.

Special considerations that should be made when writing a plan for your beauty tech startup include:

  • Partnerships – Brand, influencer and product partnerships play heavily into beauty apps. For example, a makeup simulator app may have a partnership with a large makeup brand; allowing them to digitize the brand’s products for their specific application. If you have partnerships, detail them in your business plan. If you don’t, consider whether opportunities exist for partnerships and try to secure one!
  • Cost of Acquisition vs User Value– Some types of beauty apps are able to monetize themselves quickly (such as on-demand spa apps). Other types, like makeup simulators, can be tougher to monetize and may rely on ads for revenue. It’s important to balance how much it costs to acquire a user vs. how much you can potentially earn over their customer lifetime. Proper research will ensure that you are able to put together a strong financial model.
  • Competitive Advantage– Every single day, the beauty app market becomes more and more saturated as new players make their way into the app stores. If you want to win, your business plan should show how your beauty app exceeds the abilities of other apps on the market. What makes it different? Moreso, what makes it better?

Three Tips To Writing A Better Beauty App Business Plan

Our business plan writers have helped several beauty app startups to raise early seed funding. Here are three expert tips to ensure that you write a beauty app business plan that stands out amongst the competition.

Detail Founder Experience

Breaking into the beauty tech industry is challenging. Succeeding in it is even tougher. Some beauty apps are published by leading makeup and product brands that already have millions of fans and followers.

Knowing the obstacles faced by entrepreneurs in this industry, investors will want to see a breadth of experience among the team. In your beauty app business plan, describe the backgrounds of each member – their experiences with beauty customers and products, and the obstacles they faced that led them to the creation of the app solution.

If your founding team doesn’t have experience in the beauty industry, then you will need to secure the commitment of a few advisors who do. The right advisors can help you avoid obstacles and ensure that you don’t take the wrong path as you fight your way to beauty app startup success.

Understand Consumer Brand Loyalty

In both the beauty and beauty app markets, customers are extremely loyal to their chosen brands. While this is a great thing for your beauty app business plan, as you’ll be able to showcase customer longevity; there is a downside. Customers who are already using a competitive app may be less willing to adopt a new solution. As a result, customer acquisition may become tougher and more expensive.

In your beauty app business plan, it’s important to showcase your awareness and understanding of your consumers and how they behave. Knowing that this loyalty exists is only the first layer – the critical part is being able to strategize in a way that avoids these obstacles and takes advantage of this loyalty.

Create Influencer Opportunities

It’s important to showcase a strong and widespread marketing strategy in your business plan. However, it’s even more important to understand how consumers adopt new products. In the beauty industry, influence is heavy. Just like with products, beauty consumers are loyal to influencers. Whether it be individuals, publications, or other brands, consumers often adopt products that are mentioned by their favorite influencers.

Consider this point as you develop your marketing strategy. How can you use beauty influencers to introduce your brand to the market?

Let’s Create Your Beauty App Business Plan

Ready to develop a fundable business plan for your beauty app? We’d love to help. Our business plan writers have written hundreds of plans and raised millions in seed money for app startups around the world. Contact us today and speak with one of our business plan professionals!