KNOW THE
BUSINESS.

Key Takeaways

• ◆Buyers think in margin, not product quality. Know your keystone math cold.
• ◆A line sheet is not a menu. It's a business case. Format accordingly.
• ◆Target, Ulta, and Sephora each have fundamentally different buyer criteria.
• ◆Your first retailer meeting is a qualification call, not a close.

Key Takeaways

• ◆Revenue-based financing lets you repay from sales, not equity.
• ◆CDFIs exist specifically to fund Black-owned businesses that banks won't.
• ◆Beauty-specific grants from brands and foundations are underutilized.
• ◆Strategic partnerships (retailer funding, manufacturer advances) are equity-free.

Key Takeaways

• ◆Cosmetics vs. drugs: if your product makes a physiological claim, it's a drug.
• ◆"Stimulates collagen production" is a drug claim. "Makes skin look firmer" is not.
• ◆GMP compliance is not optional once you're in retail.
• ◆Color additives require specific FDA approval: substitution is not legal.

Key Takeaways

• ◆A 600–1,200 sq ft indie beauty store typically needs $80K–$200K to open properly.
• ◆Your location thesis is more important than your brand selection: nail it first.
• ◆Never sign a standard retail lease. Push for free rent during build-out, a personal guarantee cap, and a 3-year base term.
• ◆15–30 brands at launch is the right number: enough to feel full, not so many you lose editorial identity.

Key Takeaways

• ◆When an investor writes you a check, an exit is built into the structure -- it's how they get their money back
• ◆Most VC and PE funds have a 7-10 year fund life: which means your brand's timeline is dictated by their fund clock, not your vision
• ◆Preferred equity, liquidation preferences, and anti-dilution provisions can make an exit feel like a choice when it's actually a contractual obligation
• ◆Understanding the capital stack before you sign lets you negotiate terms that protect what you built -- or choose capital that doesn't require an exit at all