2005 Small Business Contest, 2nd place: Colorlab Cosmetics
 Owner: Mary Swaab
Company Founded: September 1996
Location: Rockford, Ill.
Web Site: www.colorlabcosmetics.com
Number of Employees: 40-plus
Customer Base: International
Association Memberships: National Association of Women Business Owners (NAWBO),
Cosmetic Executive Women (CEW), Independent Cosmetic Manufacturers and Distributors,
(ICMAD), Fashion Group International (FGI)
Inspiration for Business: Mary Swaab was a makeup artist and cosmetics industry
veteran when she ventured out on her own in September 1996 - retirement
pension in hand - to create the perfect cosmetics. Swaab had spent years
listening to women complain about their "drawer full of mistakes" - the
lipstick color that looked good on the woman behind the counter but just didn't
work for the buyer. Thus, the first product Swaab created and patented was
an interactive lipstick system, which allows makeup artists to create custom
blend, handcrafted lipsticks in any color, texture, and formulation at cosmetics
counters. The lipsticks were a hit and soon led to the development of a full
line of custom blend cosmetics systems.
Challenges: The business concept of having cosmetics fully customized right
in front of customers in less than 10 minutes was unlike anything ever produced.
It was a challenge to get people to believe in her custom blending, until they
tried it for themselves. This also created a funding challenge. As new products
and lines were developed, Swaab needed to acquire loans to keep the business
growing. It took invitations to bankers to a product demonstration to get them
fully committed to her and her business.
Company Now: Today, Colorlab offers a full line of custom blend systems that
allow makeup artists to create a complete array of cosmetics for their clients
at cosmetics counters. At the start, Colorlab wholesaled its private label
custom blend systems to salons, spas, and plastic surgery offices, shipping
about 300 boxes in its first year. That has since grown, and Colorlab has expanded
its wholesale private label line and added its own Colorlab branded line, shipping
more than 5,000 boxes a year. Someday in the future, Swaab hopes custom blend
cosmetics will be the norm, with her company leading the industry.
 Read the press release
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