How to Start a Glitter Business

Glitter is everywhere – in makeup, nail polish, tumblers, crafts and more. As the arts and crafts market has experienced a pandemic-era boom, the glitter industry has also grown, which means right now is a great time to start a glitter business. You can make glitter and sell it in bulk for others to use or make your own glitter products to sell. Either way, you can make good money by selling online, and you can run your entire operation from home.

But before your eyes start to sparkle with excitement, you need to do a bit of business homework. Fortunately, you’ll find everything you need to know in this step-by-step guide, designed to get you on the road to success.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a glitter business has pros and cons to consider before deciding if it’s right for you.

Glitter industry trends

Industry size and growth

• Industry size and past growth – The US arts and crafts market achieved sales of nearly $1.2 billion in 2021, up nearly 11% from the previous year.((https://www.statista.com/topics/3908/crafts-and-creative-activities-in-the-united-states/#dossierKeyfigures))
• Growth forecast – The global arts and crafts industry is projected to expand more than 30% by 2026.((https://www.marketwatch.com/press-release/arts-and-crafts-market-size-in-2022-is-booming-across-the-globe-by-share-size-growth-segments-and-forecast-to-2026-with-top-countries-data-2022-07-13))

Trends and challenges

Trends in the glitter industry include:

• Glittery makeup, glitter hair applications, and glitter nail polish are all hot right now. 
• An Australian startup created ShipYourEnemiesGlitter.com, which went viral sending envelopes of glitter to people you don’t like. Opportunities are out there for creative glitter entrepreneurs.
• At age 9, Sophia Rizzo started selling eco-friendly glitter products. Now at age 13 her company is doing $350,000 in annual revenue. If a pre-teen can do it, so can you. 

Challenges in the glitter industry include:

• Some concern has been raised about some types of glitter causing microplastic pollution in the oceans.
• Glitter can cause health issues to people and their pets if it’s swallowed or gets in the eyes. Edible glitter is required by the FDA to list their ingredients on the package.

How much does it cost to start a glitter business?

Startup costs for a glitter business range from $4,700 to $9,400. The bulk of the cost is for a glitter-making machine which costs $3,000 — $5,000. You can learn to make glitter by watching any of the dozens of free YouTube videos. 

You’ll need a handful of items to successfully launch your glitter business, including: 

• Glitter-making machine
• Glitter materials such as foil sheets
• Packaging and shipping materials

How much can you earn from a glitter business?

The average price for an ounce of glitter is $2.50. You should try to sell it in sets of 10 ounces for about $20. Your profit margin after the cost of materials should be about 80%. 

In your first year or two, you could work from home and sell 10 sets a day, bringing in $73,000 in annual revenue. This would mean $58,000 in profit, assuming that 80% margin. As your brand gains recognition, sales could climb to 40 sets a day. At this stage you might need to hire staff to help with packaging, reducing your profit margin to 50%. With annual revenue of $292,000, you’d make a tidy profit of $146,000.

What barriers to entry are there?

There are a few barriers to entry for a glitter business. Your biggest challenges will be:

• The cost of the glitter-making machine
• Standing out amid massive competition

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Step 2: Hone Your Idea

Now that you know what’s involved in starting a glitter business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research glitter businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing an eco-friendly but affordable glitter business or a DIY glitter tumbler kit business.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as glitter for paint or glitter for party decor.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

You need to decide if you want to make specific colors or types of glitters to sell by themselves, or if you want to make glitter products as well. You may be able to think of some unique way to package your glitter to make your products stand out.

How much should you charge for glitter?

Prices for glitter range from $1 to $5 an ounce, but usually are around $2.50. Your best bet is to sell sets of a variety of colors. Your costs will be limited to the cost of materials so you should aim for a profit margin of about 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is likely to be a younger demographic so you should market on sites like TikTok and Instagram.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Glitter Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “glitter” or “glitter products”, boosts SEO
• Name should allow for expansion, for ex: “Glitterverse” over “Glitter Makeup Studio”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview outlining the business concept, goals, and key financial projections to provide a snapshot of the glitter business.
• Business Overview: A detailed description of the glitter business, its mission, vision, and the problem it aims to solve in the market.
• Product and Services: Clearly defined offerings, specifying the types, colors, and applications of glitter products, ensuring a comprehensive understanding.
• Market Analysis: Thorough research on the glitter market, including target demographics, trends, and potential opportunities and challenges.
• Competitive Analysis: Examination of existing and potential competitors in the glitter industry, identifying strengths, weaknesses, opportunities, and threats.
• Sales and Marketing: Strategies for promoting and selling glitter products, encompassing online and offline channels, pricing, and promotional activities.
• Management Team: Introduction of key individuals involved in running the glitter business, highlighting their relevant expertise and roles.
• Operations Plan: A blueprint detailing how the glitter business will function day-to-day, covering supply chain, production, and distribution.
• Financial Plan: Comprehensive financial projections, including startup costs, revenue forecasts, and break-even analysis, to showcase the business’s financial viability.
• Appendix: Supplementary materials, such as additional data, charts, or references, providing further context and support for the glitter business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to glitter businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your glitter business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a glitter business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses/Permits

Starting a glitter business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your 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. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your glitter business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as LS Retail, Vend, or Retail Pro, to manage purchasing, inventory, and invoicing.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your glitter business, the marketing strategy should focus on showcasing the variety, quality, and uniqueness of your glitter products. Emphasize the diverse applications of your glitter, such as in crafts, cosmetics, or event decorations, and highlight any unique features like eco-friendliness, color range, or custom blends. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding: Your branding should reflect the sparkle and vibrancy of your product. This includes your logo, packaging, website design, and promotional materials.
• Direct Outreach: Connect with potential clients like craft stores, event planners, makeup artists, and educators. Offer samples to showcase the quality and variety of your glitter.

Digital Presence and Online Marketing

• Professional Website and SEO: Develop an attractive, e-commerce-enabled website that showcases your glitter products with high-quality images and detailed descriptions. Use SEO best practices to rank for searches related to craft supplies, glitter, and decorative materials.
• Social Media Engagement: Utilize visually driven platforms like Instagram and Pinterest to showcase the versatility and vibrancy of your glitter. Engage with DIY communities, makeup artists, and craft enthusiasts on these platforms.

Content Marketing and Engagement

• Creative Blog: Share blog posts with craft ideas, tutorials, and tips on using glitter in various projects. Highlight the uses of glitter in different industries like fashion, beauty, and event planning.
• Email Newsletters: Keep your customers informed about new products, special offers, and creative ideas for using glitter.
• Video Tutorials: Create engaging video content that demonstrates creative uses of glitter, application techniques, and DIY projects.

Experiential and In-Person Engagements

• Workshops and Craft Fairs: Participate in or host workshops at craft fairs, local community centers, or schools to demonstrate the use of your products and engage with potential customers.
• Collaboration with Artists and Designers: Partner with artists, designers, or influencers who can use and showcase your glitter in their work, providing exposure to diverse audiences.

Collaborations and Community

• Partnerships with Related Businesses: Collaborate with businesses in related niches, such as craft supply stores, beauty salons, or event planning companies.
• Community Projects: Engage in community art projects or sponsor local events to showcase the creative potential of your products and build brand awareness.

Customer Relationship and Loyalty Programs

• Loyalty Rewards for Repeat Customers: Implement a loyalty program offering discounts or special perks for regular buyers.
• Customization Services: Offer custom glitter mixes or color matching services for clients who require a personalized touch.

Promotions and Advertising

• Targeted Online Advertising: Use platforms like Facebook and Google Ads to target craft enthusiasts, event planners, and beauty industry professionals.
• Influencer Collaborations: Partner with influencers in the DIY, beauty, and crafts communities to showcase your glitter in their projects and reach their followers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your glitter business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your glitter business could be: 

• Eco-friendly glitter to bring positive sparkle to your life
• Powder glitter to make your makeup glow
• Affordable glitter for your Etsy crafts

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a glitter business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in glitter for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in glitter. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a glitter business include:

• Glitter Makers – make and package glitter
• General Manager – ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Glitter Business – Start Making Money!

Ready to add some sparkle to your life? Starting a glitter business is a fairly simple undertaking, and you really can make good money. Glitter is all the rage right now, particularly in the growing arts and crafts market. You can start your business from home for a relatively small investment and have some fun! You’ve gotten a good entrepreneurial education, now it’s time to fire up that glitter machine and start building a great business.