How to Write a Beauty Supply Business Plan

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.
Beauty Supply- Beautiful Woman
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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