SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS. PDF

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TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................. 4 CHAPTER ONE ..........................................................................................................................

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TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................. 4 CHAPTER ONE ............................................................................................................................................... 6 1.0. BUSINESS IDEA.................................................................................................................................. 6 1.1. Name of the business ........................................................................................................................ 6 1.2. Produce the following products ...................................................................................................... 6 1.3. Provide the following services .......................................................................................................... 6 1.4. The customers will be ...................................................................................................................... 6 1.5. The business will sell in the following way ..................................................................................... 7 1.6. The business will satisfy the following needs of the customers .................................................... 7 1.10. SWOT ANALYSIS .............................................................................................................................. 7 1.11. Strengths of the cosmetic enterprise ............................................................................................. 7 1.12. Weaknesses ..................................................................................................................................... 8 1.13. Opportunities. ................................................................................................................................ 8 1.14. Threats ............................................................................................................................................ 8 1.10. VISION, MISSION, GOALS, AND OBJECTIVES .................................................................................. 9 1.11. Vision statement ............................................................................................................................ 9 1.12. Mission statement.......................................................................................................................... 9 1.13. Goals ............................................................................................................................................... 9 1.14. Objectives ....................................................................................................................................... 9 1.10. BUSINESS STRATEGY .................................................................................................................... 10 1.11. Communication strategy .............................................................................................................. 10 1.12. Competitive strategy .................................................................................................................... 10 1.13. Marketing strategy ....................................................................................................................... 10 1.14. Human resource management strategy. ..................................................................................... 10 1.15. Supplier relationship strategy...................................................................................................... 11 CHAPTER TWO ............................................................................................................................................ 12 THE MARKETING PLAN ........................................................................................................................... 12 2.11 Market research ............................................................................................................................. 12 2.12. competitors ................................................................................................................................... 12 2.13 Assessment of competitor’s strengths and weaknesses .............................................................. 12

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PRODUCT PLAN ...................................................................................................................................... 14 2.10. PRODUCT PLAN FORM .................................................................................................................. 15 2.20. PRICE .............................................................................................................................................. 16 2.21. PRODUCT PRICE FORM.................................................................................................................. 16 2.30. PLACE ............................................................................................................................................. 18 2.31. The marketing plan (place) form .................................................................................................. 18 2.30. PROMOTION .................................................................................................................................. 19 2.40. promotion section of this business plan (form) ........................................................................... 19 CHAPTER THREE .......................................................................................................................................... 21 3.10. FORM OF BUSINESS....................................................................................................................... 21 3.11. The form for business ................................................................................................................... 21 CHAPTER FOUR ........................................................................................................................................... 22 4.10. STAFF ............................................................................................................................................. 22 4.11. Staff form....................................................................................................................................... 22 CHAPTER FIVE ............................................................................................................................................. 24 5.10. LEGAL RESPONSIBILITIES AND INSURANCE. ................................................................................. 24 5.11. Legal responsibilities and insurance form .................................................................................... 24 CHAPTER SIX................................................................................................................................................ 26 6.10. PRODUCT COSTING ....................................................................................................................... 26 6.11. Calculate direct material ............................................................................................................... 26 6.11. Calculate indirect costs. ................................................................................................................ 29 CHAPTER SEVEN .......................................................................................................................................... 31 7.10. FINANCIAL PLANNING ................................................................................................................... 31 7.11. A SALES AND COSTS PLAN. ........................................................................................................... 31 7.11. CASH FLOW PLAN .......................................................................................................................... 32 CHAPTER EIGHT........................................................................................................................................... 33 8.10. REQUIRED STARTUP CAPITAL ....................................................................................................... 33 8.11. What capital investment do i need? ............................................................................................. 33 8.11. Decide on which equipment I need .............................................................................................. 34 8.12. What working capital do i need.................................................................................................... 34 8.13 Startup capital form ....................................................................................................................... 35 CHAPTER NINE ............................................................................................................................................ 36 2

9.10 TYPES AND SOURCES OF STARTUP CAPITAL ................................................................................. 36 9.10. Source of capital form ................................................................................................................... 36

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EXECUTIVE SUMMARY This plan is to set up a cosmetic shop in the name of " Briox Cosmetics Enterprise ", which will be located in Easy View Arcade Garage street Mbarara. The cosmetic shop will be a sole proprietorship owned by Akampurira Brian. I will use startup capital of 52,380,000 Uganda shillings. UGX 34,380,000 will be owners’ equity and the remaining UGX 18,000,000 will be a bank loan which will be secured from centenary bank at 10% interest rate. The key personnel at the cosmetic Enterprise will include Senior manager, buying inputs and overall supervisory work, operations and production staff, sales and marketing staff, skin therapy and hairdressing staff, record keeping and accounting, stock control and direct selling staff The key objective of the cosmetic shop will be to provide fresh quality cosmetics to our clients to enable them improve their general skin beauty, to obtain maximum customer satisfaction through continued quality production, to obtain continuous production and supply of our products to the customers, to create customer loyalty to our products such that they become well pronounced in the customer minds. To achieve our objective, the cosmetic shop will employ strategies such as: Offering quality, body skin lotions, oils and herbal cosmetics that help fight the skin diseases made from fresh fruit and vegetable which are nutritious through adequate research and proper mixture of the lotions, oils and herbal ointments to meet the standard skin contents and characteristics of customers in the market through advertisement by use of sign posts, direct selling and radio stations, offering special incentive to our regular clients, offering our cosmetics at relatively lower prices for market penetration, creating a conducive environment for our clients, employing people who understand the meaning of customer care and meaning of quality by giving them samples for use as a way of expanding our markets especially among the young children, youth and women. All this encompasses our strategies that include, communication strategy, supplier relationship strategy, marketing strategy, competitive strategy and human resource strategy. The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health skin booting cosmetics product’

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Our mission will be, dedicated at improving the skin health and body look and appearance of our client. "We seek to become the recognized leader in our targeted local and international market for carrying a diverse line of in demand cosmetics including perfumes, makeup, and other accessories that will have a competitive edge towards customer satisfaction and retention at attractive prices. Our major customers will be corporate employees, students, market vendors, tourists and retailers who will be consuming a range of our products including; Perfumes 1st class, Lemon body lotion, Hair relaxer cream, Avocadoes body cream smoother and Hair glow. Our forms/ ways of distribution will include, through Retailers, distributors and wholesalers who will buy and sell in bulk to our final customers which we cannot sell to directly we shall also sell directly to the customers because we have a high customer traffic at our main outlet in Mbarara. We shall as well be using a van that will be leased to distribute to our customers who order in large quantities. In terms of our legal responsibilities, the following taxes apply to our business, sales tax, employees’ income tax, national social security fund and Mbarara Municipal Council Tax and other licenses like trading license, and Uganda National Bureau of Standards license. We shall as well need to the insurance for our business and also carry out other social responsibilities like corporate social responsibility, being environmentally friendly, and ensuring cleanliness of Mbarara town. Our products are costed and priced after comparison with our major competitor’s prices and costing information acquired through market research. We have as well carried out cash flow estimates to ensure that our business does not run out of cash. Our startup capital has been allocated to what we intend to start our business with that is renting building for two months, buying machines for mixing the inputs, Machines, leasing van, buying furniture and fittings, massage equipment, cloths and uniforms and other necessary things to start with including the employee salaries for the first two months. This plan will be effective on 1st January 2018 and that is when my business will begin in Mbarara Easy View Arcade.

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CHAPTER ONE 1.0. BUSINESS IDEA 1.1. Name of the business Briox Cosmetics Enterprise

1.2. Produce the following products Briox Cosmetics Enterprise will provide different kinds of cosmetic products ranging from body lotion to hair relaxers with potentials of using local fruits, both rare and common fruits as key primary ingredients in the production of body oils and lotions. This will be intended to improve the general skin health as well as boosting the beauty skin of our clients especially ladies. Among the fruits we will use to extract include grapes, Chew cumber, palm fruits, avocadoes, lemons, oranges, among others to produce body lotions that moisturizes and smoothens the skin for healthy attractive look of the boy and hair. Our business will also provide moisturizing creams, body lotions, hair lotions of various types and varieties to our esteemed customers. Our product will be offered to the young, the youth and the old, who will need to improve their general health and skin beauty.

1.3. Provide the following services We will also offer the cosmetic products to our esteemed customers while providing consultancy advise inform of skills for mixing and using the oils for their own benefit We will provide free consultancy services about lotion use, making and maintenance and caring for the skin especially mostly by the ladies and young girls who our major customers and advise them on maintaining a healthy balanced diet which include fruits and vegetables.

1.4. The customers will be Other businesses that deal in cosmetics, retail shops, supermarkets all over the country, in foreign countries in East Africa like Kenya, Rwanda, Tanzania, and Burundi and other customers will be buying from our company directly and from our mobile distributors and they will be both the young children, men and mostly women.

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1.5. The business will sell in the following way Distribute to our national and international distribution centers, supermarkets, retail outlets, our agents all over the countries in East African regions and some customers will buy directly from our company main outlet in Mbarara.

1.6. The business will satisfy the following needs of the customers Briox cosmetics will offer reliable cosmetics, lotions, and jerrys intended to improve the general skin health as well as boosting the beauty skin of our clients especially ladies, skin treatment, cure skin rashes, and ensure all time beauty of our clients.

1.10. SWOT ANALYSIS The Cosmetics industry is one of the growing industry in the country with a number of industries Unisex beauty cosmetics with many branches, and other small businesses which have joined the industry. Despite the increase in the Cosmetics industries, customer’s demands are not fully met due to the increasingly growing population and poor delivery of the cosmetics to the customers, Briox cosmetics Enterprise is therefore aiming at filling this gap. The industry has shown a great interest for investment. The industry has earned great reputation due to the increased differences in customer requirements like skin colors, hair styles by different hair cosmetics and customer general beauty.

1.11. Strengths of the cosmetic enterprise  Availability of startup capital,  Ability to make cosmetic products from local available fruits  Strategic location in the Easy View Complex which has a high enough space.  High level of customer care that we shall portray  We shall operate on a daily basis 24 hours to meet our customer needs which will ensure constant supply.  We shall do skin therapy to our special customers based on appointments at an affordable price which will gain fame amongst corporate women.  High quality and exceptional packaging material which are environmental friendly that we shall offer.  Operating from the cleanest environment  Offering free training and consultancy services to our customers. 7

1.12. Weaknesses  Limited nature inputs like fruits and vegetables to our business.  Low supply of skilled labour that will assist in mixing the right quantities for the inputs  Low levels of knowledge about the cosmetic business  Low capital inputs to start up with in establishing the plant and expanding the business operations to other regions.  Do not have enough record keeping mechanism.  Inadequate experience in the market due to few months of operation than our competitors  Few workers in company which delays production

1.13. Opportunities.  Briox Cosmetics Enterprises is growing and new cosmetics dealers are setting up which will increase the market base. 

The competitors of Briox Cosmetics Enterprises do not know about the new emerging ideas in the global markets like new product development techniques to suit customer demand.

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The competitors of Briox Cosmetics Enterprises do not know how to efficiently manage their supply chain and distribution channels like Unisex group of companies.

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Financial boost from banks for service expansion and facility improvement.

1.14. Threats  The customers are used to buying from already established cosmetic industries like Movit and Samona who can easily adopt to rapidly changing techniques of production and global competition which is hard to adopt to for us  Constant changes in customer demands which impact on our level of satisfaction to our customers and changing economic environment. Evaluate my business idea

Number of strength………………………………………………09 Number of weaknesses………………………………………….07 Are there more strengths than weaknesses?

Yes

Number of opportunities………………………………………….03 8

No

Number of threats………………………………………………...02 Are there more opportunities than threats?

Yes

No

I therefore decide to continue with my business idea since there are more strength and opportunities than the weaknesses and threats.

1.10. VISION, MISSION, GOALS, AND OBJECTIVES 1.11. Vision statement The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health skin booting cosmetics product’

1.12. Mission statement It will be, dedicated at improvin...