Soft n Lip Palette - Summary Engineering PDF

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Soft n Lip Palette Executive Summary Soft n Pallete offers different shades that everyone will desire and wear every time. The business will ensure the health of the costumer when using the product. The business also provide higher standard and good quality of product for their personal care. Company Summary Soft n Pallete is located on different malls that offer beauty care. The business is will serve different shade and colors of a lipstick that will help the customer to make their lips beautiful and healthy. 2.1 Company Ownership The Soft n Lip Palette is a privately held limited liability corporation wholly owned by Gracelyn Manibo 20%, Rosebeth Adame20%, Nina Emerald Castillo20%, Carla Diane Dela Cruz 20% and Jacqueline Marasigan20%.

2. 2 Start - up Summary We are seeking an operating line of 35,000 to finance our first year growth. Together, the co-owners have invested 25,000 to meet working capital requirements. Start – up Expenses

Other

0

Additional Investment Requirement Total plan Investment

0 28,000

Loss at Start-up (Start-up Expenses)

14,000

TOTAL CAPITAL

1,200

TOTAL CAPITAL AND LIABILITIES

56,000

Total Funding

50,000

2.3 COMPANY LOCATIONS AND FACILITIES The Soft N lip Pallete will be located in Soft n Pallete is located on different malls that offer beauty care. The business is owned by a group of people Gracelyn Manibo, Rosebeth Adame, Nina Emerald Castillo, Carla Diane Dela Cruz and Jacqueline Marasigan. Soft n lip Pallete help everyone to nourish their lips and prolounge wear.The soft n Lip pallete will be feature different kinds of lipstick with approximately 60 different shades and colors. The Soft n Lip Pallete will be purchased through magazine, brochures and also with the help of social media. PRODUCT This product can also help to nourished and to heal the dryness of your lips we have brochure that you can look which kinds of lipstick are we offering you can choose anything you want that can make you more pretty.

START-UP FUNDING Start-up Funding to Fund Start-up Assets to Fund

6,500 10,180

TOTAL FUNDING REQUIRED

6,680

Assets Non-cash Assets From Start-up Cash Requirements From Start-up

15,860 5,000

Additional Cash Raised Cash Balanced on Starting Date TOTAL ASSETS

0 5,000 25,860

Liabilities and capital Liabilities Current Borrowing Long Term liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (Interest-Free) TOTAL LIABILITIES

9,080 10,600 8,750 0 28430

Capital Planned Investment Investor 1(Home Equity/Pre-Developed.Invest)

4,000

Investor 2(Pre-Development Investment)

3,900

Legal Stationery etc. Brochures

1,000 500 500

Consultants

1,500

Insurance

1,745

Debt Service

5,000

Licences/Tax/Deposits

7,000

Expensed Equipment

16,800

Employee/Payroll

9,500

Accounting

1,000

Soft Opening Expense

4,000

Grand Opening Advertising

3,000

Misc. Expenses

2,000

TOTAL START – UP EAPENSES

53,545

Start – up Assets Cash Required Start – up Inventory Other Current Assets

80,000 35,000 0

Long – term Assets

49,080

TOTAL ASSETS

164,080

Total Requirements

217,625

3.1 PRODUCT DESCRIPTION The Soft N Lip Pallete will feature a selection of a old new and popular like Matte,Nude,original,traditional lipstick In general the lipstick that we will offer are lipstick that are on trend.Different kinds of Lipstick Nudes Matte. This item will only be available in cosmetics section of the establishment. It will be also available in different cosmetics shop. 3.2 COMPETITIVE COMPARISON The Lip N Soft Pallete closest competitors are EB, AVON , KYLIE , CARELINE , ANASTASIA , BLK cosmetics , KJM liptint and Many More. There are all similarity when it comes to the product and also in priced Lipstick's Name The Soft N Lip Pallete is centrally geographically located.The location will easily see. 3.3 SALE LITERATURE A sample copy of prpduct to be featured at the Soft N Lip Pallete is attached in an appendix at the end of the document.

3.4 SOURCING The Soft N Lip Pallete will buy from a select group of Lipsticks supplier and distributors.The direct sales relationship will also be established with natural produce ingredients that will distribute based at the market. 3.5 TECHNOLOGY The Soft N Lip Pallete product is protected by the laws. All of our products creation necessarily have the same protections however the business of Soft N Lip Pallete is not dependent upon process technology or patentableb inventions. 3.6 FUTURE PRODUCTS While the Soft N Lip Pallete will initially focus upon the different kinds of Lipstick future expansion efforts will focus upon providing different kinds of cosmetics that will complete the cosmetics products of business these institutions often many opportunities for beauty products. Market Analysis Summary The Soft N Iip Pallete is a 100 thousand industry in the philippines with the annual increase of 10% yearly.People are buy Soft N Lip Pallete to shine thier lips and to look presentable for other people. Our purchase that through in magazine, brochures have continued to rise to easily find and more people find that we have a good product. Different shades of lipstick will 1.0 peryear in the philippines and has a gruop of 15% per year in the last decade 4.1 MARKET SEGMENTATION A Soft N Lip Pallete provides a Different shade of colors and Soft N Lip Pallete would be destination space within the neighborhood. Target market audience is the female in age of teenager above and who people who love of passion of lipstick. Market Analysis Potential Customer Area residents Visitors Workers Total This strategy will also target the many people like the female that have teenager above .And are available to promote product that located Our third strategy target the more than 400.000 people this segment provide mainly lunch business. Fourth the Soft N lip Pallete will target sales to other business particularly in law firms and for regular business.

4.2 TARGET MARKET SEGMENT STRATEGY The Soft N Lip Pallete will appeal to all professional residing in the target in town neighborhoods. The business will also meet the need for beauty products of a particular customer to have that products The market segment is largely made up of single between the ages of 16 and 40 married people, single, ladies and gay in the same age bracket. 4.2.1 MARKET NEEDS Our Customers make up and lipstick need are critical to the success of the soft N Lip Palette as a supplier of a cosmetics product. The Soft N Lip Palette must appeal to people who are interested in integrating our type of beauty products regularly in a lipstick purchase experiences. We must also appeal to those customers who regularly take advantages of KJM liptint product. Our costumer are well educated and interested in partaking of new experiences keeping the products and the entertainment offering "fresh" will remain a constant challenge to the business. They like to choose good,comfortable,affordable, and good lipstick product that offers a nice and affordable item. 4.2.2 MARKET TRENDS BLK cosmetics is experiencing a trend toward the creation of cosmetics products They are popular and gaining more recognition. The market oppurtunity for beauty products has never been better in this area of BLK cosmetics. The immediate area sorrounding the business venue is undergoing a building renaissance as mang residents choose to more into or return the inner city. 4.2.3 MARKET GROWTH KJM liptint is currently in the of population explosion with the extra time that comes from being in a vibrant growing city with an active life. As the area’s population increases and the constraction with people are for cosmetics and beauty products closer to and in BLK cosmetics. 4.3 INDUSTRY ANALYSIS The cosmetics product that make up the community of establishments in the area surrounding the beauty progress quite diverse.Thier concepts range from typical lipstick pallete to well known cosmetic product. 4.3.1 COMPETITION AND BUYING PATTERNS

A general nature of the competition is typically a 70 to 100 pieces of lipstick with cosmetics products. The prices item range from 50.00 to 150.00. All of the sorrounding products serve at a minimum most selling item as well.

5.3.1 SALES FORECAST Our sales forecast assures no change in cost of prices which is reasonable assumption for the last few years. We are expecting to increase sales from 10 thousand at the end of 2020 to 1 million by the end of 2032.The growth forecast is in the line with the cosmetics in the area and is tied to projected increase in population of the immediate area. The accompanying table list a what manager charge and the budget for each. The milestone indicates our emphases or our planning for implementation. 5.5 MARKETING STRATEGY The Most important elements of our marketing strategy is the uniques of our products and the services that we do to deliver soft n Iip pallete. And our soft n Lip pallete products must first sell thenselves through word of mouth. Through establishing good relationship with the costumer to trust them are products that us is safe if you buy our products and we will attempt to create opportunities. 5.5.1 SALES PROGRAM 1. Special event sales - Develop opportunities to sell to companies and special events. The specific responsibility is with the owner with assistance from the manager. 2. Music related special events - Develop relationship with costumer and the promoters area to rising it popularity. 4.3.3 INDUSTRY PARTICIPANTS Cosmetics products which functions are a smaller segment of the overall beauty products that are approximately five venues that combine the functions and are regularly recognized in the media outlets that are growing. 5.1 COMPETITIVE EDGE The soft N Lip pallete maintains a competitive agde in several significant areas. 5.2 VALUE PROPOSITION

We think our value proposition is quite clear and easily distinguished from most others in the market.We offer affordable and accessible cosmetics products as good as it is by the natural value at an affordable price that will encourage in regular costumer. 5.3 SALES STATEGY The first category of our sales strategy is to establish and maintain a position with primary constituents in the in town batangas residents within 3 mile radins of the soft n lip pallete location. We will depend upon keeping these people specially girls happy with the use of our lipstick product. 5.5.2 POSITIONING STATEMENT For our most important target market beauticians who wants to make thier lips more soft and beautiful.The soft n lip pallet satisfies the need for a casual , all in one pallete and affordable product. 5.5.3 PRICING STRATEGY Our product options are priced to give us an attractive margin while at the same time offering value to the consumer we want repeat business. We also want the experience to remain fresh.There in lies why the cosmetics and beauty products programming will be relatively flexible. 5.5.4 PROMOTION STRATEGY We will promote our products name and label almost more the products itself because to be successful we have to stand for brand name integrity, excellent menu offerings entertainment and fun

Financial Plan In order to launch its unique product line Soft N’ Pallete requires an initial outlay. Sales at Soft N’ Pallete retail stores are planed to grow rappidly from year 1 to year 5 .Soft N’ Pallete will become profitable in our third year of operation. Initial growth will be financed by a combination of equity investment and debt financing. Our ratios are well within prudent limits and our growth plans are challenging, but realistic. The tables in this section explain the detail behind our financing plan and our growth plans.

7.1 Important Assumptions

Our assumptions are detailed in the proceeding tables. We have planned for relatively slow but stable general economic growth and an interest rate on borrowing of 9.5%. Because our business is a combination of retail and wholesale our collection days may look somewhat optimistic. That is caused by our assumption that approximately 70% of our retail sales will be done on credit cards and debit cards. There is a three-day payment lag on these sales. We assumed that wholesale customers would pay on an average of 50 days and that in year one 60% of our business would be on terms. As we develop our customer base (at wholesale) this number is ramped up to 80% by year five. Our payments to vendors are assumed at 45 days.

7.3 Key Financial Indicators This topic compares five key indicators in regards to how much they change over time. The indicators include sales, gross margin, operating expenses, inventory turnover, and collection days. We chose these five indicators because they all have real impact on the health of a business. We focus not on gross amounts as much as changes. The chart actually shows changes on a year-to-year basis, rather than gross amounts. That would also show up the same as increasing gross margin from 20% to 40%, or increasing

collection days from 30 to 60, or increasing inventory turnover from four to eight. The chart uses indicator values that are set to compare changes with the base year showing up as 1.00 and all other years showing up as multiples from the base. 7.4 Break-even Analysis We have included all operating expenses in fixed expenses. As the business grows this number will be updated. We consider it an important factor in our business and expense planning. 7.5 Projected Profit and Loss Soft N’ Pallete is expected to reach profitability in year three. Certain expenses in the early years may appear outside the accepted ranges (i.e. marketing) as a % of sales. This is a result of our strategy to bring the brand to prominence in five years and should be considered as a start-up cost. Likewise, our initial salary numbers and staffing reflect our growth plan rather than a stable or mature business. Our margin numbers may appear high. This is the result of a combined retail and wholesale strategy. Our retail stores and catalogue will calculate margin from first cost rather than wholesale. Our wholesale effort will not receive sales credit for internal sales (this reflects a more accurate picture of retail profitability and of wholesale growth). Our margins are projected lower in years two and three to account for promotions to wholesalers intended to assist in reaching our wholesale sales targets. In years four and five, margins move up again as the number of retail stores increases and the catalogue comes online. As the retail business overtakes the wholesale business we believe maintained margins can exceed median. Wholesale commissions are calculated at a straight percent of sales....