The beauty and cosmetic industry is very challenging and
lucrative. There are many products and huge competition.
Milestone
The industry in America employs over 50,000 people with
over 3,000 licensed products. Investors should develop a quality product, good
marketing strategy and customer relations. Others are huge funding, good
location, equipment and operational license.
Executive
Summary
Sharon Cosmetic Line is incorporated as a limited
liability company. The company is located at Maryland in a
commercial/industrial area. The choice of location is based on availability of
raw material, utilities and customer base.
We engage in production of cosmetic products for the
local and international market. The huge selection of products are hair care
products, lotions, soaps, perfumes, colognes.
The chief executive office is Sharon Steel a popular
reality show participant. She teamed up with professionals in the beauty and
cosmetic industry to develop the products and business structure. We ensure
that our customers enjoy quality products at competitive prices.
The milestones are opening a corporate account, business
name availability and insurance. Others are completed business registration,
opening an online payment platform. We have obtaining tax payer’s
identification, securing point of sale machines and leasing of factory.
More include initial startup capital, writing a business
plan, conducting a feasibility study. We have completed our employee’s
handbook, drafted contact documents and recruitment of employees.
The company will established business relationship with
vendors, secure fire safety license, build website, purchase furniture and
recruit employees. Completion of print marketing material and purchase of
equipment.
• Opening a
corporate account
• Business
name availability
• Insurance
• Completed
business registration
• Opening an
online payment platform
• Obtaining
tax payer’s identification
• Securing
point of sale machines
• Leasing of
factory
• Initial
startup capital
• Writing a
business plan
• Conducting
a feasibility study
• Competition
of an employee’s handbook
• Drafting
of contact documents
• Recruitment
of employees
• Established
business relationship with vendors
• Secure
fire safety license
• Build a
website
• Purchase
furniture
• Recruit
employees
• Completion
of print marketing material
• Purchase
of equipment
Sustainability
and Expansion
The business will leverage on repeat patronage, capacity
building.
Funding
the Startup
Funds are generated by the owner Sharon Steel. The
business is incorporated as a Limited Liability Company.
The company will source extra funds through a bank loan.
The initial startup generated by the owner in personal savings is $250,000 and
bank loan of $450,000. Total estimated amount is $700,000.
Expenditure
Startup expenditure include insurance, hiring a business
consultant and stationary. Others are rent, construction of production line and
business registration.
More expenses include legal fees, marketing, operational
cost and inventory. Costs include building a website, purchase of equipment,
distribution van and store equipment.
Payment
Options
To accommodate customer needs, different payment options
will be provided. They are acceptance of bank draft, checks, mobile money
transfer. Others are bank transfer, mobile money, cash and debit card payments.
The website would have a payment system to process debit card purchases.
Our
Pricing Strategy
The products are priced according to current trends. The
price is competitive and slightly lower that prevailing prices. We will offer a
full range of cosmetic products for middle and upper class customers.
Publicity
and Advertisement
We will produce high quality beauty care products
comparable with top brands in the market. To reach customers we will use an
effective marketing strategy. Each
product line would be featured in television advertisement to intensify product
brand.
We will use print, web publicity and social media
channels. Advertisement strategy are newspaper, local magazine publications,
sponsored community programs.
Others are product branding, use of celebrities to push
brand awareness. We will print of flyers, banners, billboards.
Marketing
and Sales
The marketing and sales strategy involves targeting our
customer base. To understand customer behavior, preferences. The company will
conduct surveys and a feasibility study.
We will use experienced third party marketers to develop
a marketing strategy. We will use direct
marketing, target communities, use local newspapers. Word of mouth marketing,
yellow pages, online ads.
Sales
Forecast
Things that affect product pricing are labor, cost of raw
materials and transport. The amount of
customer purchases will define our sales.
We expect to become profitable in eight months from
startup. First year sales projection is $600,000, second year $920,000 and
third year $1,300,000.
Our
Products
The business is registered as a limited liability
company. Product choice are shaving creams, hair care products and fragrances.
Others are cosmetic products, sunscreen products and body lotions.
Our
Vision Statement
Our vision is to produce quality cosmetic products. We
hope our products will become international brands and compete with established
ones.
Competitive
Advantage
We intend building an experienced workforce and provide
regular training. The staff will enjoy good welfare package and salaries
comparable with those obtainable in the market.
We will use highly professional marketing team and
develop a huge distribution network. To achieve our objectives, goals we will
invest in customer relations, produce quality cosmetics and offer good prices.
Our
Target Market
Our cosmetic products are sold to local residents,
college students, celebrities, hotels. Others are business people, private
individuals, and corporate clients.
Market trends would rely on creativity, quality products,
good packaging. We believe in natural eco-friendly raw materials and products.
Staff
The company will hire only experienced and highly
professional staff. The staff are chief executive office, admin manager,
drivers and merchandize manager. Others are sales/marketing manager, plant
manager and cashier and accountant.
The Chief Executive Officer will communicates with staff,
implements the company’s policies. Plant Manger oversees the plant’s operations
while human resources station define job positions, evaluates staff and carry
out administrative work.
The merchandize manager selects merchandize, plan sales
strategies, pricing and networks with vendors. The accountant works on the
company budget, ledger, financial report and tax.
The client service executive manages the company’s
administrative duties, company documents, inquiries build consumer interest.
Other staff responsibilities are production manager focus on product and
packaging.
• Chief
executive office
• Admin
manager
• Drivers
• Merchandize
manager
• Sales
manager
• Marketing
manage
• Plant
manager
• Cashier
• Accountant
SWOT
Analysis
The cosmetic industry is very challenging and lucrative.
To compete favorably we will leverage on our strengths, opportunities and
partners. The SWOT analysis covers our strengths, weaknesses, opportunities and
threats.
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