An entrepreneur interested in the beauty supply industry
need a business plan. The plan would focus on key areas of the business from
products, site location, funding, labor and marketing.
The beauty industry is highly competitive, very lucrative
with heavily funded conglomerates. It also accommodates small and medium
enterprises. To gain a hold on beauty products an investor can consider
starting a beauty supply store.
The demand is huge guaranteeing steady profit for the
investor. To start a supply store the person needs a business plan and
feasibility study. It is important hiring qualified personnel and good customer
service. Here is a sample beauty supply business plan.
Business
Overview
The company Delight Beauty Supply offers customers a huge
range of beauty products. The products include body creams, skin care lotion,
hair creams, soaps and cosmetics. Our customers include departmental store,
malls, retail outfits, and beauty stores.
We sell only branded products, stock wholesale and sell
retail. In the United States of America the industry generates over $30
billion. Cosmetics, skin cream, fragrances dominate the products market.
Our product choice is targeted at people in the age range
of 18 to 40. Our niche market are products for women.
Executive
Summary
Delight Beauty Supply is registered as a Limited
Liability Company. Its core services is the purchase and supply of beauty
products. We also invest in product development, creation and branding.
Common products we stock are perfumes, skin care lotions
and cosmetics. The business is located in Ohio United States of America. The
location conforms to zoning requirements and in a central area.
We will invest in store development, franchising and
attract wholesalers across the state. This will effectively create a cohesive
chain and guarantee a piece of the industry. Our mission is to become the
number one supplier of beauty products.
We will stock a full range of products from different
manufacturers to provide choice. The products will be sourced from major brands
both local and international. We have secured an operational license and permit
to operate in the Ohio area.
With a technologically driven supply system we are
positioned to supply the entire country. The stores would be strategically positioned
for maximum exposure. The distribution channels will increase earning and
profitability.
We will invest heavily in personnel training to
streamline efficiency and productivity. We will invest in survey, costumer
forums to find popular products and understand customer needs.
We will develop discounts for regular customers to
encourage more patronage. Our community based template will involve any area we
operate to encourage a sense of partnership. It is important we maintain the
highest standards, sell quality products and offer competitive prices.
The working environment would facilitate productivity,
sense of family. The same values will be based on to customers and partner.
Delight Beauty Supply within nine years of operation would have positioned as
one of the leading stores for beauty products in America.
We believe Ohio is an ideal place to start because of the
infrastructure and utilities available. The business is owned by Greg and
Margaret Duncan. Margaret Duncan is a seasoned cosmetologist with a degree in
dermatology.
Greg has a Master’s degree in marketing and Accounting.
Although the company’s headquarters is in Ohio our supply chain will extend
across the United States.
Our
Products and Services
Delight Beauty is a beauty product business that supply a
full range of beauty products. We will sell fragrances, cosmetics and skin care
lotions. Other products are hair care lotions, body creams, deodorants, nail
care products.
The products are sourced from major manufacturers with a
history of quality products. We will purchase wholesale directly from
manufacturers to offer competitive prices to customers.
• Fragrances
• Cosmetics
• Skin care
lotions
• Hair care
lotions
• Body
creams
• Deodorants
• Nail care
products
• Toiletries
Our
Vision Statement
Our vision is to become the number one supply store in
America. Our community based strategy will encourage local participation in our
designated areas.
Our
Mission Statement
Our mission is to build a value added highly successful
business. We want to become the top location for beauty products. Within a few
years we will steadily extend our reach across America.
Our
Business Structure
Our business structure will leverage on leading brands to
offer customer quality products. We will rely on technology, marketing,
location and distribution chain. Our foundation would include personnel
training, good customer service.
We wish to offer our partners, customer’s seamless buying
experience. Our family oriented approach would build a dedicated workforce to
meet any challenge.
We intend hiring only qualified individuals with
experience and knowledge of the business. We will invest in feasibility
studies, surveys to find best locations for our outlets.
Personnel
The personnel are the chief executive officer, human
resources and store manager. Others are marketing marketer, sales, clerks and
accountants. More staff are cleaners, product development, chemists and
cashier.
• Chief
executive officer
• Human
resources
• Store
manager
• Marketing
marketer
• Sales
• Clerks
• Accountants
• Cleaners
• Product
development
• Chemists
• Cashier
Roles
and Responsibility
The chief executive officer reports to the board, sign
checks and evaluate productivity. Others are implementation of organization
mission and vision statement. They fix prices, sign partnership deals, and
communicate with managers.
They find business leads, increase management efficiency,
coach, council and strategic planning. They instill discipline, communicate
strategies, appraise job results, incentives and directs the company.
Administrative
Manager
The administrative manager oversees the administrative
tasks of the company. They maintain personnel networking, manage interviews and
job positions. They arrange appointments, meetings and travel arrangement. They
oversee the daily administrative activity.
Merchandize
Manager
They are responsible for planning sales, write and price
orders of vendors. They make sure of quality control, develop sales channels
and manage vendors.
Store manager
The store manager organizes the store facility and works
with vendors. They organize the supply chain, inventory and supplies. The sales
team are supervised by the manager.
Sales
and Marketing Manager
The job is to develop opportunities, leads and contacts.
They evaluate sales channels, customer purchases and transactions data. They
organize strategic meetings, customer contacts and sales expansion plan.
Accountant
and Cashier
The accountant prepare the budget, financial statement
and reports. He conducts financial analysis, accounting and financial
feasibility. They forecast market trends, risk management and cash management.
They do financial reporting, general ledger accounting
and payroll administration. The cover tax legislation compliance and conduct
internal audit.
The cashier compiles sales, cash, checks and money
orders. They collect payment from suppliers, customers and distribution.
Cleaner
They clean interior and exterior areas of the Store.
SWOT
Analysis
We will use third party consultants to build our business
concept and structures. We will together develop up chain, down chain of the
company. We will determine our strength, weaknesses and leverage on
opportunities.
Market
Trends
The business is lucrative and highly competitive. There
are many big players in the industry. The industry has seen a growth rate of
4.5% every year due to the development of well researched and innovative
products.
The product range and choice have equally increased offering
customers a wide range of products. An increase in spending power of women
under 35 years has boosted the industry.
To reach customers Delight Beauty will use targeted
marketing off-line and online. Our store would be located in areas with heavy
human traffic. The choice of top brands will enhance our performance and offer
competitive prices to customers.
Our
Target Market
To reach our target audience we offer a wide range of
products we also use electronic and print advertisement to reach potential customers.
We leverage on top brands and chain stores across the
United States. Target market are college women, households, spinsters and
business people. Others are tourists, people in the entertainment industry,
corporate executives.
Our
Competitive Advantage
Our competitive advantage is our community and family
oriented approach to the business. We offer good customer service, quick
delivery and visibility. The choice of location is very strategy to the success
of the business.
The prices will remain competitive because of direct
purchase from manufacturers. Other advantages are regular training of staff and
hiring seasoned professionals. Our welfare package is second to none and wages
commensurate with market trends.
Source
of Income
Apart from the initial investment of the owners we will
seek bank loans. The loans will be sourced to cover startup requirements. The
loan would be long-termed, low interest rate of 5 to 10 years.
Sales
Forecast
The sales forecast for first year is estimated at
$150,000. The second year $280,000 and third year $600,000. This projected
sales is based on many variables like consumer behavior and marketing.
Marketing
Strategy
We will use electronic and print medium to reach
potential customers. We will print flyers, posters, banners and billboards.
We will use television advertisement, radio and online
resources. We will build a website to offer some products and drive sales
through SEO and social media advertisement. We will contact households,
colleges, corporate organizations.
Pricing
Policy and Payment Option
The pricing strategy is based on marketing trends. We
will offer competitive prices based on our bulk purchase strategy.
We would buy directly from manufacturers to offer best
prices. Payment options are bank drafts, checks, online transfers. We will
receive cash, mobile transfers and debit card.
Startup
Expenses
The expenses are legal fees, business registration,
insurance, tax. Others are marketing expenses, labor costs, product sourcing,
rent, and promotional. The major expenditure is infrastructure and purchase of
inventory. Total startup is estimated at 200,000 in Ohio.
Sustainability
and Growth
Our growth strategy is to develop supply chain and build
inventory. We will leverage on technology and experienced manpower.
Milestone
The milestone are completing a business plan, opening a
company account and business registration. Others are building a website,
accepting online payment, effective social marketing.
More are securing startup capital, getting a good
location drafting an employee handbook. We have successful recruitment of
staff, securing operational license and partnership with top beauty product
brands.
• Completing
a business plan
• Opening a
company account
• Business
registration
• Building a
website
• Accepting
online payment
• Effective
social marketing
• Securing
startup capital
• Getting a
good location
• Drafting
an employee handbook
• Recruitment
of staff
• Securing
operational license
• Securing
partnership agreements
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