How to Write a Beauty Supplies and Cosmetics Business Plan
The beauty supplies and cosmetics industry has been growing at a substantial pace across the US and around the world in the last few years based on research from our business plan writer. Further, the increased number of beauty supplies and cosmetics online and retail organizations opening has also sparked the need for effective business plans.
There are several reasons for the seemingly exponential growth in the beauty supplies and cosmetics industry. First, customers are always looking for innovative products for personal care. Innovative products may focus on skincare, haircare, makeups, and other personal care products. The need for innovative products drives industry competitors to research and develop new beauty care and cosmetics items for customers’ use. Next, technological advances have allowed beauty care and cosmetic manufacturers to develop state-of-the-art, effective products more efficiently. This has led to an influx of new products into the market. Finally, women are not the only target market anymore. Men also need and seek out personal care products. This has opened up a whole new revenue channel for beauty supplies and cosmetic retailers and manufacturers.
As demand for beauty supplies and cosmetics continues to grow, more and more retail beauty supplies and cosmetics, as well as manufacturers, will need a solid business plan for startup and operational growth. From this, our business plan writer has developed some best practices in writing a beauty supplies and cosmetics business plan.
Executive Summary for a Beauty Supplies and Cosmetics Business Plan.
In the executive summary section for a beauty supplies and cosmetics business plan, the business owner should succinctly discuss various aspects of the organization's internal and external environments. Specifically, for a beauty supplies and cosmetics business, in this section, business owners should also include a brief history of the organization. For some reason, customers of beauty supply and cosmetic businesses love backstories—the more engaging the back story, the better. Of course, this should be in addition to discussing the product line, the executive team, funding needs, and financial projections—all on one page, a tall task.
Company Information and Location for a Beauty Supplies and Cosmetics Business.
The company information section for a beauty supplies and cosmetics business plan should offer significant details about the organization's location. There are several reasons to discuss the location in s beauty supplies and cosmetic business plan. From a manufacturer's perspective, receiving raw materials and shipping finished products must be seamless and convenient. From this, make sure to highlight in your business plan why your location exceeds these criteria. As for a retailer, foot traffic and convenience are two common characteristics that business owners relish for their retail store. As a result, locations for these entities often include malls and strip malls. If your organization does not fall into this pigeonhole, then make sure to explain why you have chosen a different location from a strategic perspective.
Product Description and Competitive Advantages for a Beauty Supplies and Cosmetics Business
The product description section for a beauty supplies and cosmetics business plan should have specific components and avoid common mistakes. The specific components should include top-selling beauty care and cosmetics items. In describing these items, make sure to discuss how the product works, raw material used in the products, and benefits for the customers. To avoid in the section would be listing too many products. All too often, beauty supply business owners tend to go overboard with listing all their products, inherent benefits, and even prices. Too much information in this section may stymie the writer's ability to create an overreaching product theme.
Target Market for a Beauty Supplies and Cosmetics Business Plan
For most beauty supplies and cosmetics businesses, their target market will be women in a specific age demographic. Age demographics for women may break down into 18 to 25, 25 to 45, or 45 and older. However, a growing trend is to also include men as a target market as well. If this is the case for your company, then do a little bit of research into the specific characteristics that your target market for men will include. Once identified, then align a specific market segmentation with your findings.
Industry Research for a Beauty Supplies and Cosmetics Business Plan
The industry research for a beauty supplies and cosmetics business plans should start at a national level. Take a look at industry trends and how customers' tastes have changed over the last several years in relation to your specific products that will be offered. Once this research is done, then do some research on national and global competitors. When conducting this research, seek out how the various competitors have been responding to changes in the industry and customers' tastes. Once a solid understanding of these intricacies is obtained, summarize your findings in a succinct, approximately 1 to 2 page, summary section for industry research.
Owner and Management Section of a Beauty Supplies and Cosmetics Business Plan
The owner and management section of a beauty supplies and cosmetics business should first start with a back story about how the organization was founded, how products were invented, and or innovative uses for the different products. Once the back story is complete, then introduce the founder(s) of the company and discuss their passions related to beauty supplies and cosmetics. Finally, round out the section with a brief breakdown related to different jobs that will be included in your business. In following the structure, it almost tells a story about your organization and ends with a summarized operational picture.
Funding Request for a Beauty Supplies and Cosmetics Business Plan
The funding request section for a beauty supplies and cosmetics business plan may vary depending on if the organization is a retailer or manufacturer. As a retailer, funding needs may include buildout for a retail store, purchasing inventory, display cases, and extensive product training. From a beauty supplies and cosmetics manufacture perspective, funding needs may include purchasing or building a warehouse, leasing equipment, research and development, and extensive advertising budgets. No matter the funding needs, always use categories to break down the different funding needs and include a grand total at the bottom of your categorized list. In following this structure, readers of the document will have a basic understanding of where funding will be spent and how much money will be needed.
Financials for a Beauty Supplies and Cosmetics Business Plan.
Creating a working financial projection for a beauty supplies and cosmetics business should start with day one sales. As a manufacturer, sales items should be broken into cases of products sold. As for the retailer, individual items sold on the first day should be noted. Once the average daily sales are created, then determine how many working days will be included in the first month. Manufacturers often work five days, whereas retailers are seven days a week. With this information, monthly sales should be generated and then aligned with monthly costs. Finally, financial statements should include the capability for introducing substantial growth opportunities when new products are introduced to the marketplace.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author