COSMETICS SHOP BUSINESS PLAN SAMPLE TEMPLATE
Do you have the mindset to start a cosmetics company but you are looking for guidance on how to go about it? In this post, I will be sharing with you everything you will need to know about cosmetic and how to start a cosmetics company that might eventually become a success if you possess the entrepreneurial skill to manage a business.
The history of cosmetics spans at least 6000 years ago and it is present in almost every society on earth. Cosmetics can be described as a preparation applied to the body especially the face to improve its appearance. Cosmetics have been in use in our societies for a very long time.
Before I take you through how to start a cosmetics company, let me inform you that cosmetic products can be grouped as follows:
There are various range of makeup products and they include;
- Concealer: This is used to hide under eye circles and cover blemishes.
- Foundation: This is used to even skin tone.
- Blush: This adds color to the cheeks.
- Mascara: This defines eye and enhances lashes.
- Lipstick: This adds color to the lips.
- Eye Shadow: This add depths to the eyes.
Others make up products include Highlighter, contour, primer, lip liner, bronzed, etc.
- Personal Care Products
These include cleansing pads, colognes, cotton swaps, cotton pads, deodorants, facial tissue, shaving cream, moisturizers, tooth paste, wet wipes etc.
- Hair Products
Hair products include hair cream, shampoo, conditioner, hair mousse, hair color and a host of other products.
- Hand and Nail Products
These products include hand protector, nail and cuticle oil, hand cream, conditioning hand wash, hand sanitizer, nail colors, nail polish, nail shiner and others.
Just like every other industry, the cosmetic industry has different departments whose aim ranges from producing to delivering cosmetic products to their consumers. To start a cosmetic industry, you will need to choose the department you will want to specialize on.
Here are the various departments:
- Production: This department performs duties which ranges from production planning and scheduling to control and supervision of the production workforce to managing product quality.
- Research and Development: This is concerned with developing new products or processes and improving existing products or processes.
- Purchasing: This department is concerned with acquiring goods and services for use by the organization.
- Marketing: This department is concerned with identifying and satisfying customer needs at the right price.
- Human Resource: This department is concerned with all aspects of employee relations and welfare.
These various departments work hand in hand to produce and deliver cosmetic products to consumers.
How to Start a Cosmetics Company
Starting a cosmetic company does not necessarily entail immediate production of the cosmetic products. One can concentrate one aspect/department of the industry, grow in it and then expand to other aspects.
With the modern trends in fashion and beauty in our world today, cosmetics have become an essential need in the lives of individuals today. People are more aware of cosmetic products and so, it is right to say that these products, most times, market themselves. The question to look good and smell good has turned the cosmetic industry into a million-dollar industry.
Marketing of a known brand of cosmetics is a good step towards earning from the cosmetic industry. There are various known and trusted brands like L’Oreal, Mary Kay etc. These products have stood the test of time and have millions of consumers. Selling these products either in whole sale or retail quantities is also very profitable and another way to start your own cosmetics company as a wholesaler or retailer.
Currently, there is a demand for indigenous organic products. This is can be associated to many reasons of which one is that most of the foreign cosmetic products are not suitable for some skin types, hair types and personal hygiene needs due to difference in climate.
Most of these products are produced in countries with climates different from others and so are not suitable for consumers in hotter regions of the world. This is one reason why you need to start a cosmetic company in your country so that your people can happily patronize your products.
Another reason to start a cosmetic company is that the high cost of products has made consumers to seek cheaper substitutes and alternatives. Apart from the high cost, some of these imported products are not readily available and can be scared.
So, whatever department of the cosmetic industry you want to venture into, you will need the following;
- A business name which must be registered with the appropriate authority.
- A well-detailed business plan
- A suitable location/office where you will be operating from.
- Capital—but, if you don’t have the needed capital, you can go seek for investors or loan from banks or any financial institutions using your business plan.
- A good marketing plan for promoting your products and converting leads to customers.
A feasibility study and research on existing cosmetic products and brands will be a good step to take towards starting a cosmetic company. The gap that exists amongst the existing cosmetic products should be explored. Depending on the interest of the entrepreneur and the available resources, a choice will have to be made between marketing of already existing brands and producing a new line of cosmetic products.
The cosmetic industry is a very profitable industry especially in Africa where a large percentage of the population are young women with the need to enhance their appearance. Make the decision today, start a cosmetic company now!
COSMETICS SHOP BUSINESS PLAN EXAMPLE
A cosmetics business is one business that meets people’s needs on a daily bases. This makes it a very profitable one. To run this business, not much is needed in terms of finances and skills. However, the skills that are needed in running a cosmetics business can be learned easily and by absolutely anyone.
With just the right amount of skill and determination, anyone can make it in the cosmetics business.
Are you interested in starting a cosmetics store business? Then you will need a business plan. This is because running a business successfully without having a business plan is near impossible. Well, this article contains a cosmetics store business plan sample business.
Here is a business plan for starting a cosmetics product retail store.
BUSINESS NAME: Perfect Appearance Cosmetics Company
- Executive Summary
- Our Products and Services
- Vision Statement
- Mission Statement
- Business Structure
- Market Analysis
- Financial Plan
- Competitive Advantage
Perfect appearance cosmetics company is a beauty store that will be based in the central business district of los-Angeles. After few weeks of searching, we at perfect appearance have located a perfect location for siting our business. From this location, we will expand to other parts of Los Angeles as well as the entire United States
Our Products and Services
We at perfection appearance cosmetics company are basically into the sales of cosmetics products, toiletries, perfumes, grooming products, etc. Our major aim of starting a cosmetics company is to take advantage of the unending demands for cosmetics products by people.
However, that is not all we are interested in. We are interested in making sure that the needed and the right cosmetics products are made available to people at the right price and at the right time.
As a cosmetics company, our vision is to become the biggest cosmetics store in the entire Los Angeles central business district.
Our mission is to establish a cosmetics company that will dominate Los Angeles and other parts of the United States. We aim to become a cosmetics store that is always stocked with the needed cosmetics by our ever increasing clients
As a new business, we know that success in the cosmetics industry is largely dependent on the venue in which the cosmetics store is located. This is why we have taken out time to situate our business in a certain part of town.
The truth remains that we are looking to build a business that will last the test of time and also stand shoulder to shoulder with the more popular and established cosmetics brands. We intend to create a team that is not just interested in making profits but also in the satisfaction of our clients
The cosmetics industry is perhaps as old as human civilization. This is one reason cosmetics are easily marketable. The high demand for cosmetics products also explains the presence of cosmetics stores scattered throughout the country.
The cosmetics industry is perhaps one of the few industries where there is the least amount of competition. This is because most people in the world make use of cosmetics. Putting this very simple fact into consideration, we have. After spending so much time on our research, we have come up with a target market to sell our products to.
The group of people that top the list of our target market are;
- People involved in sports
- Pregnant women
- Engaged ladies
- Business executives
Sales and Marketing strategy
Our sales and marketing strategy include;
- Partnering with popular salons in every neighborhood
- Selling at a reduced price
- Good customer service
We understand that starting a cosmetics company does not require much capital. However, we are not looking to start a cosmetics business on a small scale. To start a cosmetics business on a big scale, we will need $10,000. We have been able to raise 50% of this amount. The remaining 50% will be gotten from the bank.
Over time, the cosmetics industry has become very highly competitive. As a result of this, it is quite difficult for individuals that are not very creative to succeed in this business. We are not ignorant of the high level of competition that is existent in this industry.
We at Perfection Cosmetics Company are starting a cosmetics business that will compete favorably with already established firms in the cosmetics industry. We intend to achieve this by building a team of highly skilled and creative individuals.
The business plan above is a business plan sample for the cosmetics company, Perfection cosmetics company. The company will be situated in Los Angeles. Also, the funds that are needed to start and run this company will be gotten from personal savings as well as from the bank.