Beauty Supply Store Let’s be Beautiful. Be Colorful. and Be You. BUSINESS PLAN [YEAR] John Doe 10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153 info@upmetrics.co https://upmetrics.co Table of Contents Executive summary 4 Problem Definition & Validation 4 Solution 4 Objectives 5 Short Term (1 -3 Years) 5 Long Term (3-5 years) 5 Mission statement 5 Keys to success 6 Financial Highlights 6 Units Sold v/s Revenue Chart 7 Chart 7 Business overview 8 Company Ownership/Legal Entity 8 Location 8 Interior Operating Facilities 9 Hours of Operation 9 Startup summary 9 Products & Services 10 Range of Products 10 Suppliers 10 Market Analysis 12 Market segmentation 12 Market Trends 12 Target market 13 Target Market Persona 13 Chart 13 Competitive Advantage 14 SWOT analysis 15 Strategy & implementation 16 Distribution Strategy 16 Marketing and Promotion Programs 16 Direct Sales 16 Trade Publications 16 Trade shows and Lifestyle Exhibitions 17 1 / 32 Website 17 Targeted Online Advertising 17 Positioning Statement 18 Sales strategy 18 Online Marketing Channels 18 Offline Marketing Channels 19 Pricing strategy 20 Operational Plan 21 Organization chart 21 Chart 21 Thomas Green 21 Amanda Doe 21 Jane Doe 21 John Doe 21 Management Team 21 Personnel Plan 22 Hiring plan 22 JANE DOE 22 AMANDA DOE 22 JOHN DOE 23 Milestones 24 CLEARA 24 Financial plan 25 Important Assumptions 25 Brake-even Analysis 25 Projected Profit and Loss 25 Profit Yearly 27 Chart 27 Gross Margin Yearly 27 Chart 27 Projected Cash Flow 28 Projected Balance Sheet 29 Business Ratios 30 2 / 32 Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. You will need a collaborative tool that guides you on every step of your planning. Upmetrics can help. With Upmetrics, you can easily bring your team to write a professional business plan with automated financial forecasts. You can also do: 200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step Guide You'll receive step-by-step instruction as soon as you select any business plan template. We made business planning easy with prompt help and examples on every step of your business plan writing. See How It Works Conduct accurate financial projections Do not worry about not having accounting skills. With Upmetrics, Simply enter your sales and costs figures, and we'll prepare all of your monthly/quarterly and yearly financial projections. See How It Works [YEAR ] Bus ines s Plan | Beauty Supply Stor e 3 / 32 Executive summary Start Writing here... Cleara brings to the US allure of healthy, smooth, and youthful skin that radiates vitality through its professional range of skincare products. Leveraging Japan’s uncompromising commitment towards research and development of advanced skincare formulations, the company seeks to deliver its users high- quality and effective essential skincare through a wide range of cleansers, Problem Definition & Validation Start Writing here... The cosmetic and personal care industry thrives on exploiting modern women’s insecurities and the cultural perception of beauty to flood the market with products that contain toxins and cheap fillers which are known to have harmful side effects. These products become even more harmful when used in underregulated skin procedures by practitioners for various beauty treatments. Solution Start Writing here... Cleara will source its products from the world’s second-largest cosmetic market, Japan. In a country known for its concepts of balance; all the products will be made from naturally occurring ingredients that are perfectly balanced with the latest in skincare technology resulting in products that are of the highest quality. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 4 / 32 Objectives Short Term (1 -3 Years) Start writing here... To begin commercial operations in LA by Q1 2021 To build a market reputation for quality hygienic products and services during the forecast period. To achieve a turnover of over $100,000 in Year 1 Long Term (3-5 years) Start writing here... To expand by opening additional store locations across the country during the forecast period To reduce operating expenses and aim to grow profitability to more than 35% by Year 5 Mission statement Start Writing here... To build a global brand that is committed to enhancing the natural beauty of women and men by always providing the best products and services worldwide. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 5 / 32 Keys to success Natural Production Cleara will source its products from the world’s second largest cosmetic market, Japan. A country known for its concepts of balance; all the products will be made from naturally occurring ingredients which are perfectly balanced with the latest in skin care technology resulting in products that are of the highest quality. Value Added Services Cleara will dedicate itself to the wellbeing of its customers. To this end, a professional beauty advisor will ensure all of the customer’s queries regarding the composition, application and suitability of the products are met professionally and promptly. Supply Network Cleara enjoys retains control over the quality of products by thoroughly vetting the suppliers and closely monitoring the manufacturing process. Price The company enjoys sole distributorship of the products in Hong Kong which allows it to control prices. Cleara will thus be able to secure and distribute products at market beating price points. Distribution Channels Cleara will distribute its products through both B2B as well as B2C channels. This will allow it to hold a niche in a market where professional skin care products are not freely available in the retail market. Effective Marketing Cleara will dedicate time and effort towards networking and gaining valuable insight into the prevailing market trends in the US which will allow the company to optimise its marketing strategies and effectively penetrate the market on launch. Financial Highlights Start Writing here... The company envisions raising an equity investment of $50,000 through long- term borrowings, which will be used for the setup and launch of the salon in the US. The company expects to steadily grow its revenues through active efforts in marketing, networking, excellent customer service, and quality products. Meanwhile, the company will establish a healthy net profit ratio that boasts To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 6 / 32 Units Sold v/s Revenue Chart Financial Year Sales Gross Margin Net Profit 2021-22 360723 114289 13038 2022-23 538041 216784 44360 2023-24 665012 269869 65638 Sales Gross Margin Net Profit 2021-22 2022-23 2023-24 0 250.00k 500.00k 750.00k [YEAR ] Bus ines s Plan | Beauty Supply Stor e 7 / 32 Business overview Start Writing here... Established in 2011 by a team of professional engineers, Cleara provides high- quality aesthetics equipment, as well as professional consultation and after- sales service to beauticians and aesthetics professionals. Through a network of top-tier, vetted and closely monitored suppliers from Hong Kong and Japan, the company also enjoys sole distributorship of a range of skincare products Company Ownership/Legal Entity Start Writing here... The company will be registered as a limited liability entity with the Department of State. Further, since the company envisions setting up operations in LA, it will also register with the local county. The business will be wholly owned and Managed by Founder Mr. Thomas Green, who will also be the principal investor of the business. Location Start Writing here... Los Angeles can be a tough city for entrepreneurs to establish and make a mark. Predominantly due to the thriving business landscape which has given rise to a competitive environment. However, there is so much room to have a rewarding career in the beauty industry in Los Angeles. For starters, it’s the gateway to Hollywood, film, the TV industry, and more – it’s a haven for a To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 8 / 32 Interior Operating Facilities Start Writing here... The company will begin operations from a rented retail space at the heart of LA’s commercial hub. Initial investments in setting up the interior facilities, consumables, inventory, and client entertainment space will be set up. Additions to space will be made as the company expands operations. Hours of Operation Start Writing here... Cleara will cater to walk-in as well as online customers, as such it will be required to stay open during business hours. The company envisions opening a showroom at 10 am and remain open till 7 pm to entertain walk-in prospects as well as fulfill online orders. Startup summary Start Writing here... The founding team will infuse a capital sum of £50,000 through long-term borrowings to meet the company’s start-up requirements. The start-up expenses are estimated at £18,500, primarily consisting of interior renovation, rent, and advertisement expenses. A further sum of £15,000 will be used to purchase initial stocks, furniture, computer, and other salon equipment. Sales To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 9 / 32 Products & Services Start Writing here... Skincare is essential to graceful aging. Over time harsh elements in the environment wear on the skin, making it dry and tough. As such, a good skincare routine is imperative to eliminate the effects of the environment on the skin and revert the damaging impact. Good products power every skincare routine. The choice of product is just as important as taking care of the skin. Range of Products Hair Colour Made from natural ingredients, the hair colour from Cleara is long lasting and vibrant Lipstick Cruelty free and free from parabens, the lipstick is of natural dye and skin friendly Foundation Ideal for covering up uneven skin tone, the foundation is water based and made for all skin types Blush Cruelty free and free from parabens, the blush is of natural dye and skin friendly Hair curler/Iron Reinforced plastic handle with rust free ironing gives your hair the desired curls in no time Gels Clears offers a range of hair and face gels to keep oil at bay Repair Lotions Made for problem skin, these repair lotions work towards clearing skin and giving it a healthy glow Scrubs Cleara offers a range of scrubs for all skin types from tea tree to papaya Suppliers Japan is well known for its “balanced state of mind”. The culture is deep-rooted in balancing tradition with the advancements in technology. Japan is home to the second-largest cosmetic industry in the world owing to the quality of products manufactured within its boundaries. Manufacturers in Japan value ancestral rituals and use holistic formulations powered by natural ingredients. To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 10 / 32 Start Writing here... [YEAR ] Bus ines s Plan | Beauty Supply Stor e 11 / 32 Market Analysis Start Writing here... Skincare, haircare, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market. Since the early twentieth century, the production of cosmetics and beauty products has been controlled by a handful of multi-national corporations– L'Oréal, Unilever, Procter & Gamble Co., The Estee Lauder Companies, Shiseido Company, to Market segmentation Start Writing here... United States cosmetics market is segmented based on type, gender, distribution channel, and region. Based on type, the market is categorized into skincare, haircare, bath & shower products, makeup & color cosmetics, and fragrances & deodorants. The makeup and color cosmetics segment is witnessing high demand in the United States market. In 2019, roughly USD985 Market Trends Start Writing here... Within the cosmetics category in the U.S., eye cosmetics was the most profitable segment. In 2020, about 1.96 billion U.S. dollars were generated from sales of eye cosmetics in the U.S. Facial cosmetics was the second most profitable segment, with sales revenue of 1.9 billion U.S. dollars. Of the eye cosmetic industry, mascara was the leading product in the U.S. The segment To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 12 / 32 Target market Start Writing here... The company will target B2B and B2C segments. Cleara expects to incorporate its company in the US by Q3 2021 and begin commercial operation by Q4 2021. The three-month period in between is sought to understand its potential market to serve its customers best fully. During this period, the company will seek out and meet with professional salons and aim at building a Target Market Persona Market Segment Salons 0.5 Women 0.3 Men 0.2 Salons Women Men To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 13 / 32 Competitive Advantage Natural Production Cleara will source its products from the world’s second largest cosmetic market, Japan. A country known for its concepts of balance; all the products will be made from naturally occurring ingredients which are perfectly balanced with the latest in skin care technology resulting in products that are of the highest quality. Value Added Services Cleara will dedicate itself to the wellbeing of its customers. To this end, a professional beauty advisor will ensure all of the customer’s queries regarding the composition, application and suitability of the products are met professionally and promptly. Supply Network Cleara enjoys superior supply connections and has complete control over the quality of products by thoroughly vetting the suppliers and closely monitoring the manufacturing process. Price The company enjoys sole distributorship of the products in the US which allows it to control prices. Cleara will thus be able to secure and distribute products at market beating price points. Distribution Channels Cleara will distribute its products through both B2B as well as B2C channels. This will allow it to hold a niche in a market where professional skin care products are not freely available in the retail market. Effective Marketing Cleara will dedicate time and effort towards networking and gaining valuable insight into the prevailing market trends in the US which will allow the company to optimise its marketing strategies and effectively penetrate the market on launch. [YEAR ] Bus ines s Plan | Beauty Supply Stor e 14 / 32 SWOT analysis Start Writing here... A SWOT (Strength, Weakness, Opportunity, and Threat) analysis is a useful tool for businesses to evaluate their position in the market against the potential internal and external factors that could assist or jeopardize their operations and existence. A SWOT has been conducted for Cleara and is presented below. Strengths Natural Products of Japan origin Thriving industry Lucrative business location Scalable pricing strategy and business model S Weaknesses Highly competitive market Limited market understanding W Opportunities Collaboration with leading salons Increased beauty consciousness High growth potential market in the US Export capabilities O Threats Competitors eroding the market Low barriers to entry Competitors poaching B2B clients T To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 15 / 32 Strategy & implementation Start Writing here... The objectives for the company’s early sales and marketing initiatives will be to generate awareness of Cleara as a new player in the market and to educate potential customers about its portfolio of products. Over time, as Cleara becomes more established and develops a strong reputation, the marketing emphasis will shift to include more of a focus on the company’s record of Distribution Strategy Start Writing here... The company will reach its customer through both online and offline channels. Cleara’s comprehensive website will accept orders online and deliver them to the customer’s doorstep. Customers will also have an option to physically visit the company’s showroom to browse and place orders for their custom prints. Marketing and Promotion Programs Direct Sales Start writing here... Cleara will approach potential commercial clients directly, either through cold- calling or email, to arrange pitch meetings. The company’s sales representatives will use these opportunities to display the product catalog directly. Trade Publications The Company will advertise in specific trade publications that are targeted towards the appropriate target markets. In the US there are a number of highly specialized publications (e.g. Skin Health Magazine, Glamour) that will be ideal for reaching these target markets. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 16 / 32 Start writing here... Trade shows and Lifestyle Exhibitions Start writing here... Cleara will establish a presence at various trade shows that are relevant to the target market. For example, LA Fashion week (US’s leading fashion trade show), HJ Live LA (Provides a platform to source the latest products and equipment from the brands exhibiting at the show). Website Start writing here... The Company will operate a professional and compelling website, with a dedicated section for commercial clients, to promote its commercial product lines and provide easy ability to contact sales staff. Targeted Online Advertising Start writing here... The focus will be on Google Ads, which are more likely to drive commercial leads than other online advertising platforms (such as Facebook). The advertising will target specific keywords relevant to Cleara’s offering (e.g., “professional makeup,” “aesthetic products,” “cosmetics,” etc.). To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 17 / 32 Positioning Statement Start Writing here... Cleara brings high-quality and effective essential cosmetic products to the US through a wide range of cleansers, toners, moisturizers, scrubs, and more. Creating a balance between luxurious and cosmetically elegant tactile comfort range with targeted fast-acting natural ingredients, all the company’s products are organic and cruelty-free. Sales strategy Start Writing here... Professional service providers form the company’s primary target market. However, the company’s marketing efforts will also include end-users, clients of the professional service providers. While push marketing efforts will be deployed to reach service providers, pull marketing efforts will drive engagement for the company’s product. These efforts will have an interlinked Online Marketing Channels To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | Beauty Supply Stor e 18 / 32 Electronic Direct Mail Marketing Salons looking for organic and natural skin care products to use for providing their services stand out prominently as viable marketing targets for this channel. Cleara will mail professionally designed materials with its value proposition to these companies and provide quotes for promotion merchandise printing services. Social Media Millennials and consumers in general spend a considerable time browsing social media platforms. Reaching to them through this channel will be and effective way to capture attention and position its services. Google Ad Campaigns 1. The advertising will target specific keywords relevant to Cleara's offering (e.g. “professional makeup”, “aesthetic products”, “cosmetics” etc.). Offline Marketing Channels Networking Participate in leading consumers exhibitions and beauty events. Display a range of samples and distribute flyers at these events. The company will also keep a record of visitors to their stalls as leads for its email marketing campaigns. Pop-Up Store The company will also hold pop-up stalls at consumer exhibitions. Walk-in The showroom will be designed with attractive display of sample of products. Visually attractive hoardings and a high street presence will further attract prospects to walk-in and buy high quality cosmetic products. [YEAR ] Bus ines s Plan | Beauty Supply Stor e 19 / 32