How to Start a Fragrance Business | 12 Step Guide by Our Expert


Information presented on this web page is intended for informational and educational purposes only and is not meant to be taken as legal, financial, investment or tax advice. We do not accept any responsibility for any trading or investment related losses. Please review our disclaimer on before taking action based upon anything you read or see.

Establishing a perfume business is a combination of personal artistic expression and business acumen that, if done right, can generate good profits. It starts with a sustainable business plan that includes product definition, niche definition, marketing strategy, and profit forecasting. In this guide, I will discuss how to start a fragrance business. 

Product definition means defining a range of perfume products. It would be best to decide whether you offer the fragrance in different forms, such as aftershave, body lotion, or soap, or whether you offer multiple fragrances in one product form. You don’t need an in-depth knowledge of chemistry or the natural sciences.

All you need is a willingness to experiment with different fragrance essential oils.

How to Start a Fragrance Business

How to Start a Fragrance Business

Develop a fragrance plan

This includes deciding which customers you want to target.

To do this, research consumer trends and decide which populations and how they will like the type of fragrance. For example, some older consumers may prefer simple, long-lasting fragrances based on essential oils and natural ingredients, while younger consumers may prefer celebrity fragrances.

Good business planning for perfumery includes other elements as well. It should include at least a mission statement.

The initial goals and targets for the number of products are desired in three, six, and twelve months, also, the desired number of distributors who will resell the product and the desired cash flow.

As well as financial projections, including initial expenses and budget, profit and loss account, losses and cash flow. This can be very helpful in continually updating and revising our business plan based on actual data as it becomes available.

Do Financial Projection and raise capital

A fragrance business may seem like a fun and lucrative idea, but the road to success is not always an easy one. As with any other type of business, there is a lot of start-up cost associated with it. This includes designing and producing your line, advertising and marketing costs, and hiring employees.

One of the most important aspects that you will need to consider before starting this type of business is how much money you will need to set aside for initial expenses such as:

Designing and Developing Your Line: $10,000-20,000. 

This will include creating 4-5 fragrances along with the packaging for your product. You may also want to hire a chemist to develop some speciality scents too;

Packaging: $2,000-5,000. 

For your smaller size bottles, you will need around 3 of them, so it’s best to budget for more than less;

Advertising/Promotion: $20,000-35,000. 

You will need to spread the word about your new business by advertising in trade publications, among other options. Even with all the social media outlets available today, it is still advantageous to be seen on these rags frequented by retailers and consumers alike. This is one of the most important aspects of promoting your product while it is gaining momentum, don’t wait until after sales have started before investing in the promotion. This also includes hiring a PR firm too.

Read More – How to Start a Restaurant Consulting Business.

Employees: $30,000-40,000. 

You will need to hire an outside company to manufacture your product, and you should also consider hiring a salesperson and bookkeeper. These are all things that you would be able to do yourself if you had no employees, but it is not recommended that you try and save money by doing these jobs yourself right from the get-go;

Storage and Fulfillment: $5,000-10,000

This includes renting a space for your products as well as buying office supplies to fill orders. You will also need packaging materials, shipping costs, and boxes;

Website Development/Domain Name Registration: $500-1,500. 

Having a website is almost a necessity in today’s business world. You can save some money by doing it yourself or hiring an outside company for this job.

If you were to get started with just the items listed above, the total costs would be $50,500- 106,500. These are just some of the initial expenses that you will need for your fledgling business; many more things must be considered, too, such as insurance and licenses, which usually run about $1,000 per year.

Explore and create new flavors

At this point, it’s best to purchase a few small amounts of essential fragrance oils of flavours of interest and research flavour recipes or create your blends.

Read More: How to Start Roadside Assistance Business.

Spend time learning about the flavors

  • Start mixing scents, taking notes, and experimenting to find your favorite scents.
  • Asking friends and family members worldwide to test your perfumes and give you constructive feedback is also a good idea.
  • Research what kind of consumer you want to target.
  • Determining your target market can be difficult.
  • For example, most men don’t buy perfume themselves, and if they do, it’s usually for a loved one.
  • Statistics show that 60-70% of men’s perfumes today are bought by women (mostly for themselves).
  • Perfumers are actively looking for marketing solutions to encourage men to buy collections of fragrances for different occasions (day, evening, work, rest).
  • Deciding in advance which markets to target will help you avoid unnecessary research.

Build Brand information

The message you send to customers as a brand and company is always important to reinforce your position in the market, even if your product is not the best. A picture is worth a thousand words.

That’s why you need to define the unique message you want to convey to consumers before planning a new fragrance advertising campaign.

In addition to the message that only perfumes can attract the opposite sex, freedom, passion, youth, beauty, serenity, rebelliousness. 

Use the internet for your brand

In addition to creating a website, you can promote your new fragrance to consumers through digital influencers such as YouTube, Instagram, and Facebook. Learn how to create personalized videos and ads targeting your fragrance’s fans on major social networks. Advertise on the websites your target audience visits most often.

Create Brand logo

You need to create a logo representing your company and then include it in various promotional materials to go one step further.

Create templates for business cards, brochures, wine bottle labels, and ingredient lists that you can share with potential suppliers. Print them out or have them produced at a printer.

Create the final product

After completing all these three steps, you now have to create a product to achieve your objectives. In this step, fill bottles, sample bottles, and jars with different commercial fragrances. Attach labels to the bottles and wrap them in another outer packaging.

Make Pricing

All costs incurred in the previous steps include the difference in the price of the different essential oils used to make each perfume. Then compile a price list of the fragrances in your perfume collection. Print or order a professional price list that you can include in promotional materials and ingredient lists sent to prospective retailers.

Start Distribution

Create a list of retailers who match the image of the fragrance you are selling. In other words, if you want your fragrance to be exotic and rare, visit the most exclusive boutiques with designer clothing, shoes, and eyewear. The same goes for daywear.

Retailers such as department stores and mixed-goods stores are not covered by insurance. Call your chosen retailer in advance to arrange a visit or call without notice and ask to speak to the retailer at a specific time.

Marketing the fragrance offer

Extend the promotion of your fragrance range by attending perfume, fragrance therapy, and day spa fairs where you can showcase your collection, as this will help you reach the mass market opportunity. Design a stand, order a large amount of bespoke promotional material from a printer, advertise at trade shows and use the stand at the trade show.

A large number of samples and demonstrations of unique perfumes will be on display. Ask people to try each perfume and give out lots of samples, cards, and brochures.

Keep all your business cards and give out a few free samples over the phone one or two weeks after the fair. Fill legitimate orders immediately by calling your wholesaler, placing them, and shipping them directly to the retailer.

Use social media to boost sales

  • Make your sales campaign promotions online by encouraging your friends and family to get involved.
  • Create and share some posts about your brand and new fragrance.
  • Images attract the most attention, so include product images in your posts.
  • Tell your loved ones that you are ready to send them a message.

Frequently Asked Questions

Cost of a perfume business?

If you do it professionally, the average startup cost to set up your perfume line is between 10 000 and 25 000 USD. This price includes the production, bottling, packaging, and design of your perfume line.

Can a perfume business be profitable?

A perfume business can be profitable if it is properly planned. Moreover, it can be started from home and does not require a large investment. Everything you require is a positive and creative mind and a willingness to experiment with different essential oils.

How much does it cost to make perfume?

Creating a perfume brand is not cheap: it can cost from 100,000 yen to several million yen.

What does perfume packaging look like?

Glass perfume bottles should always be wrapped in several layers of bubble wrap.

The wrapped bottle is then placed in a cardboard box, ensuring at least 10 cm of space between the wrapped bottle and the box. Fill the space with peanuts or small pieces of newspaper and email campaigns.

Must I be licensed to sell perfumes?

To start a fragrance business, you will need at least a DBA, LLC (limited liability company), a sales license to buy perfume ingredients wholesale and sell them at retail, and a business license.

How easy is it to start a perfume business?

Starting a perfume business is not very difficult, but it can be a bit expensive. However, it can be done. There are lots of business stories you can be inspired by.

Why are perfumes so expensive?

The main reason why perfumes are so expensive is the ingredients. Some, such as tuberose and jasmine, have unusual petals or roots; rarer ingredients, such as flowers that bloom only one month of the year, are more valuable.

How can I become part of the perfume industry?

You can get a bachelor’s degree in chemistry or perfumery or work for a cosmetics or perfume company. Then start being a business owner, and enter into the fragrance market.

Whichever path you choose, becoming a master perfumer in the fragrance industry requires hard work, skill, and creativity. 

Bottom Line

The perfumery industry has evolved over a long period. Sure, it takes a lot of money to get started, but it’s not as complicated as it might seem.

The most important thing in this industry is creating a good fragrance line that stands out from the competition, guaranteeing success with high-quality services.

error: Content is protected !!