Launching a skincare brand can be an exhilarating journey, but it’s also fraught with challenges. Here are the top ten mistakes that entrepreneurs often make, along with insights on how to avoid them using principles from the lean startup methodology.

1. Buying Too Much Product Upfront

One of the most common pitfalls is overcommitting to inventory without a clear understanding of market demand. Entrepreneurs often invest heavily in product development but neglect to allocate sufficient funds for marketing. This can lead to a situation where you have plenty of product, but no budget left to promote it. 

5 Squirrels have a range of Bespoke Branding Solutions available in low minimum order quantities starting from just 10 units at low cost to support you in the early days to garner market traction without sacrificing your cash flow or overinvesting in stock.

Tip: Start with a minimum viable product (MVP) approach. Focus on a smaller batch that can be tested in the market. This way, you can gather feedback and adjust your offerings without the financial strain of excess inventory.

2. Not Identifying a Route to Market

Many new brands fail to define their distribution channels before launching. Without a clear route to market, even the best products may struggle to reach potential customers.

5 Squirrels have a wealth of experience to support you whether your route to market is direct to existing customers, retail through 3^rd parties, online, distributor networks or a combination of multiple channels.

Tip: Conduct thorough market research to identify where your target audience shops. This could include online platforms, local boutiques, or even pop-up events. Establishing these channels early on can help streamline your efforts and maximize visibility.

3. Not Differentiating the Brand

In a saturated market, failing to differentiate your skincare brand can be detrimental. Many entrepreneurs assume their product's quality will speak for itself, but without a unique value proposition, it can get lost among competitors.

5 squirrels can support you identifying the pain points of your intended audience so we can tailor your brand language and benefits to let your customers know you understand their problem and you can fix it, which will help them feel the brand understands their issues.

 Tip: Identify what makes your brand special. Whether it’s unique ingredients, sustainable packaging, or a specific focus on skin concerns, highlight these aspects in your branding and marketing strategies. 

4. Focusing on Design Over Target Audience Needs

 While aesthetics are important, prioritizing design over understanding your target audience’s needs can lead to disappointment. Beautiful packaging might attract attention, but if the product doesn’t meet customer expectations, they won’t return.

5 Squirrels high quality bespoke design offering, and high quality clinical evidenced products addresses both issues by attracting customers and delivering results, Afterall many people will buy once on a promise but will only buy again based on results. 

Tip: Engage in live market research. Use surveys, focus groups, and social media polls to gather insights into what your audience values most. Iterate on your product design based on this feedback to ensure it resonates with your target demographic.

5. Spending Too Much on PR and Advertising Before Distribution is Set Up 

Many brands allocate substantial budgets toward PR and advertising before they have solid distribution channels in place. This can waste resources and create a disconnect between marketing efforts and product availability.

5 Squirrels can advise you on the best ways to build solid distribution channels whether it is online partners, direct from your own eshop or through other service providers so that any demand created by your brand awareness activities can be met and customers are not disappointed. 

Tip: Build your distribution strategy first. Once you have reliable channels in place, then invest in PR and marketing campaigns that direct traffic to those points of sale.

6. Overspending

 Entrepreneurs often overlook the importance of budgeting, leading to overspending on unnecessary features or services. This can quickly deplete funds that are better allocated elsewhere.

5 squirrels can help you develop a robust business plan to bring your product to market and keep it trading without running out of cash too soon, so that you have the best chance of building a sustainable profitable business.

Tip: Create a detailed budget that outlines all expected expenses. Track your spending diligently and be prepared to pivot if certain areas are not yielding a return on investment.

7. Spending Too Much Time on the Website

While a professional website is crucial, many brands spend excessive time perfecting their online presence at the expense of product development and marketing. A website can always be improved, but a great product is essential.

5 squirrels can support you with digital photography for your brand and we have affiliates who can help with low cost, high end website creation.

 Tip: Launch with a functional, user-friendly website that highlights your brand and products. Use customer feedback to continuously enhance the site over time without sacrificing other critical areas of your business.

8. Ignoring Customer Feedback

In the early stages, feedback from customers can provide invaluable insights. Neglecting to listen to this feedback can lead to continued mistakes and missed opportunities for improvement.

5 squirrels can support you to iterate on your brand based on the feedback, whether that be design or formulation elements to continually meet your customers expectations.

Tip: Incorporate a feedback loop into your business model. Encourage customers to share their thoughts on your products and use this information to iterate and enhance your offerings.

9. Scaling Too Quickly

Many brands experience initial success and feel pressured to scale rapidly. However, scaling without solidifying your foundation can lead to operational headaches and quality control issues.

5 Squirrels have a range of services to help you to scale in a responsible way through forecasting and drawdowns without overstocking or running out of funds. 

Tip: Adopt a lean approach by testing your product in smaller markets before scaling. Make sure you have the processes and infrastructure in place to handle larger volumes without compromising quality.

10. Forgetting to Build a community

 Finally, neglecting to foster a community around your brand can limit engagement and loyalty. Skincare is often a personal journey, and customers appreciate being part of a supportive community.

5 Squirrels can support you with digital marketing tools such as posts and direct mail marketing to help keep your customers engaged and part of the gang!

Tip: Utilize social media and online forums to create a space for customers to share their experiences. Build relationships and encourage discussions that align with your brand values, fostering a sense of belonging. 

Conclusion

Launching a skincare brand requires careful planning, market understanding, and adaptability. By avoiding these common mistakes and implementing the principles of lean startup methodology, entrepreneurs can create a resilient brand that resonates with their target audience and thrives in a competitive landscape. Remember, the path to success is iterative—learn, adapt, and grow!

Gary Conroy