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Cosmetic Business Plan Template

Written by Dave Lavinsky

Cosmetic Business Plan

You’ve come to the right place to create your cosmetic business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their cosmetic companies.

Below is a a sample cosmetic business plan to help you create your own cosmetic company business plan.

Executive Summary

Business overview.

Guilt-Free Glow is a cosmetics shop located in Spokane, Washington. The company’s mission is to provide customers with high-quality, cruelty-free cosmetics. We want our customers to look and feel their best without feeling guilty about the harm cosmetics do to the environment and animals. Therefore, the shop will sell a wide variety of vegan and cruelty-free cosmetics for people all over the world to enjoy. Some of these products include makeup, moisturizers, and hair care products.

The company is founded by Kiera Smith, who has been a vegan beauty vlogger for five years. During that time, she has amassed 500,000 followers through her beauty vlogs. She has always been committed to finding products that are vegan and cruelty-free. Now that she has gained popularity on Youtube, she is eager to start her own cosmetics line. She will offer an online shop for her followers around the world but also start a shop in downtown Spokane for local residents.

Products Served

The following are some of the vegan, cruelty-free products sold by Guilt-Free Glow:

  • Makeup tools and brushes
  • Shampoo and conditioner
  • Moisturizers

Customer Focus

Guilt-Free Glow will target both online customers and customers located in the Spokane area that are interested in vegan and cruelty-free cosmetics. Since the founder has a large following on Youtube and social media, we expect most of our customers will come from her fanbase. When marketing to local residents, we will focus our efforts on women ages 15 to 65, as this is traditionally the largest customer segment for the cosmetics industry.

Management Team

Guilt-Free Glow is led by Kiera Smith, who has been a successful beauty vlogger for five years. She creates tutorials on makeup techniques and offers other beauty tips. She has always been passionate about using vegan and cruelty-free products in her videos and encouraged her followers to do the same. Since there aren’t many cosmetics companies that dedicate their whole line to these values, Kiera Smith was inspired to create her own line of cosmetics and beauty care products.

Kiera Smith will be the owner of the company and will conduct much of the marketing efforts through her own social media channels. She will hire other staff to help her with the other aspects of the business, including running the retail shop.

Success Factors

Guilt-Free Flow will be able to achieve success by offering the following competitive advantages:

  • The founder, Kiera Smith, is a popular beauty guru, and her brand and popularity will help sales and minimize marketing costs.
  • Guilt-Free Glow offers great pricing in the vegan cosmetics industry. Vegan and cruelty-free products are often expensive and unaffordable to the average consumer. Guilt-Free Glow will sell all its products at a moderate price so that everyone can buy cosmetics without feeling guilty.
  • Guilt-Free Glow will hire friendly, knowledgeable, and highly-qualified staff to help both our online and in-store customers.

Financial Highlights

Guilt-Free Glow is seeking $300,000 in debt financing to launch its cosmetics business. The funding will be dedicated to securing a retail space, manufacturing the products, and purchasing the necessary supplies and equipment for the store. Funding will also be dedicated toward three months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

  • Retail space build-out: $50,000
  • Equipment, supplies, and materials: $25,000
  • Three months of overhead expenses (payroll, rent, utilities): $125,000
  • Marketing costs: $50,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Guilt-Free Glow.

Company Overview

Who is Guilt-Free Glow?

Guilt-Free Glow’s History

In 2017, Kiera Smith started her Youtube channel, which focuses on beauty tutorials and product reviews. Kiera commits to promoting and working with vegan and cruelty-free brands and educates her audience on the importance of these values for the cosmetics industry. Over the years, Kiera has found that very few cosmetics brands commit to any pledge to be vegan or cruelty-free. Therefore, she decided to start her own cosmetics line that is committed to these values.

Since its incorporation, Guilt-Free Glow has achieved the following milestones:

  • Developed the company’s branding image, social media, and website.
  • Found a retail location and signed a Letter of Intent to lease it.
  • Found manufacturers to create the cosmetic products.
  • Obtained a sales and use tax permit for use in Spokane, Washington.

Guilt-Free Glow Products

The following are some of the vegan and cruelty-free products sold by Guilt-Free Glow:

Industry Analysis

According to Fortune Business Insights, the cosmetics industry is currently valued at $287.94 billion and is expected to grow to $415.29 billion over the next few years.

This growth is due to the increasing demand for high-quality cosmetics. The target market for cosmetics has expanded substantially over the past decade, with people of all ages and genders opting to pay good money for high-quality makeup, hair care, and other beauty products. This trend is expected to continue, and the cosmetics industry will only continue to grow rapidly.

Another important trend is the increasing popularity of environmentally friendly, vegan, and cruelty-free products. Guilt-Free Glow is taking advantage of this demand and selling exclusively vegan and cruelty-free cosmetics.

By capitalizing on these trends and our founder’s increasing popularity online, Guilt-Free Glow is expected to thrive in the cosmetics industry.

Customer Analysis

Demographic profile of target market.

Guilt-Free Glow will primarily target Kiera’s current fanbase on Youtube and social media. This fanbase includes 500,000 followers, with the majority being females and under the age of 40.

The company will also target residents of Spokane who may be interested in purchasing vegan cosmetics. Traditionally, the customer segment most interested in this industry is women ages 15 to 65.

The precise demographics for Spokane, Washington are:

Customer Segmentation

Guilt-Free Glow will primarily target the following customer profiles:

  • Women ages 15-65
  • Kiera’s fanbase
  • Beauty professionals and influencers
  • Spokane residents looking for vegan, cruelty-free cosmetics

Competitive Analysis

Direct and indirect competitors.

Guilt-Free Glow will face competition from other companies with similar business profiles. A description of each competitor company is below.

Ulta Beauty

Ulta Beauty is a major retailer in the cosmetics industry, being the ultimate provider of all beauty products for millions of people across the globe. The company aims to be the most loved beauty destination of its guests and has ultimately succeeded in that mission. At Ulta, you can find any beauty brand you are looking for, such as Dior, Chanel, and Lancome. Whatever item or brand you need, you are bound to find it at Ulta.

Since 1988, Sephora has been a giant in the cosmetics and beauty industries. It’s one of the top locations to shop for all your high-quality beauty and cosmetics needs and has dominated the cosmetics industry with its global presence. With 2,700 stores in 35 countries worldwide, there are very few locations around the world where you can’t find a Sephora store to visit.

At Sephora, you can find some of the hottest and most exclusive brands, such as Rare Beauty by Selena Gomez and FENTY BEAUTY by Rihanna. Furthermore, Sephora has been recognized by Forbes as one of America’s Best Employers four years in a row and scored 100% on the Human Rights Campaign’s Corporate Quality Index three years in a row. When customers are looking to buy cosmetics conveniently and ethically, they often head to Sephora first.

The Cosmetics Company Store

The Cosmetics Company Store is an online cosmetics company that sells high-quality cosmetics brands to customers all around the world. They carry thousands of products for anyone in need of beauty products, including hair care products, makeup, and moisturizers. Customers can purchase from a wide variety of brands they love and are familiar with, including Estee Lauder, Clinique, and Aveda. In addition to having a large online store, The Cosmetics Company Store has a few retail locations in select areas.

Competitive Advantage

Guilt-Free Glow will be able to offer the following advantages over the competition:

  • Guilt-Free Glow offers great pricing in the vegan cosmetics industry. Vegan and cruelty-free products are often expensive and unaffordable to the average consumer. Guilt-Free Glow will sell all its products at a moderate price.

Marketing Plan

Brand & value proposition.

Guilt-Free Glow will offer a unique value proposition to its clientele:

  • Wide selection of cosmetics.
  • A focus on vegan and cruelty-free products.
  • Competitive prices that are more affordable than the competition.

Promotions Strategy

The promotions strategy for Guilt-Free Glow is as follows:

Guilt-Free Glow will be located in a very convenient, highly-trafficked area of Spokane that is frequented by men and women of all ages and backgrounds. The store will be in the same neighborhood as stores, restaurants, and salons. The area of Spokane is frequented by shoppers who live in the area and have disposable income to be able to spend frequently on cosmetics.

Social Media

Guilt-Free Glow will have Instagram, Twitter, and Facebook business profiles where Kiera will post frequently new arrivals to the store, featured clients who are using the products, and upcoming sales and events. The posts will be appealing with professional photographs and will engage customers with discount opportunities if they tag friends in the comments in order to grow their social media following. Kiera will also use her personal social media accounts to promote the company and its products.

Website & SEO Marketing

Kiera will reach out to a website designer to develop a website for Guilt-Free Glow. The website will be easy to navigate and include an option to purchase items online and schedule a pickup time in the store, contact information, and location. The SEO will also be managed to ensure that anyone searching “cosmetics store near me” or “Spokane cosmetics” will see Guilt-Free Glow listed at the top of the Bing or Google search engine.

Partnerships With Beauty Influencers

Kiera will partner with other beauty influencers to spread the word about her company. She will offer discount codes to the influencers’ audiences to entice them to shop for her products.

The pricing of Guilt-Free Glow will be moderate so customers feel they receive value when purchasing their products.

Operations Plan

The following will be the operations plan for Guilt-Free Glow.

Operation Functions:

  • Kiera Smith will be the Owner and President of the company. She will oversee the major operations of both the retail and online stores.
  • Kiera will hire a General Manager for the store. They will be in charge of day-to-day administrative functions, product inventory, supply orders, hiring, and training.
  • Kiera will hire an Assistant Manager to assist with product inventory, supply orders, and managing the store when Kiera and the General Manager are unable to be there.
  • The store will have 6 – 8 part-time and full-time employees to assist with stocking merchandise and customer service.
  • As the store grows and business picks up, more employees will be added to the team to keep up with customer demand.
  • Kiera will hire a Marketing Specialist and Web Designer to develop the store’s branding, logo, and social media accounts. The marketing specialist will also develop the website and manage the SEO.
  • She will also hire an Administrative Assistant to help her with the other operations tasks needed to run the company.

Milestones:

Guilt-Free Glow will have the following milestones completed in the next six months.

6/1/202X – Finalize lease agreement for 10,000 square foot retail storefront location.

6/15/202X – Begin build out of leased space.

6/30/202X – Finalize agreements with cosmetics distributors to schedule their upcoming product deliveries to the store.

7/1/202X – Kiera will meet with the web designer so they can get started developing guiltfreeglow.com

8/1/202X – Final walk-through and approval of the built-out beauty retail store.

8/2/202X – Begin social media marketing campaign of Guilt-Free Glow.

8/15/202X – The first shipment of store inventory arrives.

8/16/202X – Hire employees and begin training.

8/18/202X – Stocking and display of product inventory in anticipation of the Grand Opening.

9/1/202X – Grand Opening of Guilt-Free Glow.

Financial Plan

Key revenue & costs.

The revenue drivers for Guilt-Free Glow will come from the sales of cosmetics through the retail location and online store.

The cost drivers will be the cost of the cosmetics inventory, labor expenses, marketing expenses, rent, utilities, and overhead costs.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Initial Customers Per Month: 1000
  • Average Item Cost: $20
  • Annual Lease: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, cosmetics business plan faqs, what is a cosmetics business plan.

A cosmetics business plan is a plan to start and/or grow your cosmetics business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your cosmetics business plan using our cosmetics Business Plan Template here .

What are the Main Types of Cosmetics Businesses?

There are a number of different kinds of cosmetics businesses , some examples include: Niche market cosmetics, high-end cosmetics, kids cosmetics, beauty blogger/influencer, or make-up artist.

How Do You Get Funding for Your Cosmetics Business Plan?

Cosmetics Businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

This is true for a cosmetics business, a plan for a makeup company or a personal care products business plan.

What are the Steps To Start a Cosmetics Business?

Starting a cosmetics business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Cosmetics Business Plan - The first step in starting a business is to create a detailed cosmetics business plan PDF or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cosmetics business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cosmetics business is in compliance with local laws.

3. Register Your Cosmetics Business - Once you have chosen a legal structure, the next step is to register your cosmetics business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your cosmetics business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Cosmetics Equipment & Supplies - In order to start your cosmetics business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cosmetics business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cosmetics business:

  • How to Start a Cosmetics Business

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Beauty Supply Store Business Plan Template Retail Business Plan Template

Formula Botanica

  • Diploma in Organic Skincare Formulation
  • The International Organic Skincare Entrepreneur Program
  • Diploma in Organic Haircare Formulation
  • Diploma in Beauty Brand Business Management
  • The Lab at Formula Botanica
  • Advanced Diploma in Organic Cosmetic Science
  • Certificate in Organic Anti-Ageing Skincare
  • Certificate in Natural Cosmetic Preservation
  • Certificate in Cosmetic Stability Testing
  • Free Training
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How to Write a Beauty Products Business Plan

10 steps to writing a beauty brand business plan

Updated: 22 March, 2022

As a founder of a beauty brand start-up, you’ll need a clear vision, a well-written beauty products business plan and to have put some skin in the game in terms of hard work, time and funds. But how do you go about getting started on that all-important business plan and what should it contain?

In this blog post, we summarise the 10 key steps new beauty entrepreneurs need to work through to write a business plan for a cosmetics company. This is essential reading for anyone wondering how to start a beauty business from home as it makes you aware of just what you will need to think through and start planning for.

Running a cosmetic business requires you to be very organised. You will need a strong business plan that leads you through all of the main components of your cosmetic business. The relief is that your business plan does not need to be the size of a thesis. In fact, the more concise it is the better as you will be able to tackle it and feel like referring to it in the future.

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Our step-by-step video guide below is based on the business planning exercises we provide as part of our Diploma in Beauty Brand Business Management . The Diploma is an extensive, six-module course that takes you on an intensive journey from would-be entrepreneur to empowered founder armed with a structured business plan. Pre-enrol to find out more about this diploma and our other courses.

10-Step Guide to Your Beauty Products Business Plan

Step 1: why your beauty business needs a plan.

The first step is to set yourself a challenge: ask yourself why you are writing a business plan in the first place. There is no point in going through the motions of writing a beauty product business plan. You need to buy into the very concept of business planning.

We know that the thought of writing a business plan can seem daunting. However, your business plan is a necessary and very important strategic document as it focuses your energy, time and resources on a clear end game; not only that of launching a successful beauty business, but also of ensuring it has the potential to thrive longer term.

Your business plan isn’t just to show potential investors and otherwise hide away in a filing cabinet. It is a tool to refer to every time you are faced with important decisions. Your plan guides your decision-making and makes the everyday of running your beauty business simpler and smoother.

It will take time to write your business plan as it summarises the hard work you need to do beforehand in discovering your vision, working out your ‘why’ and what your brand stands for, what you’ll be selling, where you’ll be selling, who your competitors are and what your market gap is, and how you’ll fund your business. It also entails drafting a full financial plan, based on things like sales’ forecasts.

With this mindset challenge out of the way, let’s cover the key areas of your plan in the next steps.

Step 2: Your beauty brand mission and vision

We’ve seen many start-up beauty entrepreneurs rush into designing their branding before they have even worked out why they are in business. Before branding, come your vision and mission. Often confused and easily ignored, these two statements are the guiding lights of your business.

First, let’s define them. Your vision is about your bigger dreams. It isn’t simply that you want to make organic formulations to sell to anyone. Your vision statement sets out how you want to make a difference with your beauty brand. At Formula Botanica, our vision, in brief, is to make natural formulation as commonplace as cookery.

Your brand mission statement says how you intend to achieve that vision. At Formula Botanica, our mission is to ‘teach the world to formulate’. As you can see from our example, the mission is practical and active and states how we accomplish our vision – through teaching and our online courses.

When you write your brand vision and mission statements, you’re not writing boring, bland, catch-all statements. Coming up with why your beauty brand exists and how it serves your customers is not a quick back-of-the-envelope exercise either. It may take you weeks to define your vision and mission, but this is time well spent as these statements are the heart of your beauty business. Don’t move on to the next steps until you have total clarity on them.

Step 3: Your niche and customers

It’s all well and good having your vision and mission, but if you don’t know your niche in the beauty market nor much about whom you are selling to, then you might not have a business at all. We’re sure you’ve heard this advice a hundred times, but you need to know exactly who you’re going to be selling to. You need to understand who this type of person is, how they live and how they shop.

Once you know who your target customer is, all of a sudden everything clicks into place and becomes easier in terms of selling. You know which marketing messages work best for your customer, you know what they’re looking for and you know how to sell to them. When starting your beauty products business, you need to have a niche and that niche cannot be ‘organic’ or ‘natural’. There are so many untapped niches in the beauty industry, for instance, skincare for women in their fifties, skincare for certain types of athletes (swimmers, runners, etc.), and skincare for teenage boys.

Jot down bullet points about your ideal customer; include where they live, what other brands they buy, how they holiday, what their key skincare issues are and so on. Be brief but on point. Home in on a single person – often called your brand ‘avatar’. It might sound tedious to do, but once you have that person clearly in your mind, everything in your business will work to meeting their needs. Just ensure that you really do have a niche that exists.

We reported on some trends from In-Cosmetics Global , in Paris (April 2019). We’re not suggesting you need to keep up with the latest fad in the beauty industry, but do your market research thoroughly so you can decide where to position your brand and products.

Step 4: Your beauty products

Your business plan needs to detail your initial product(s) and explain what their sales’ proposition is and how they meet your target customers’ needs. This sounds simple to do, but believe us when we say we have seen new beauty entrepreneurs incur huge expenses as they change their direction and minds on products just after launching. Bringing new products on board can often be a way of diverting yourself from the hard task of marketing and sales.

When you learn to formulate natural skincare, you create a diversity of products without much thought about how they fit together as a range or as a beauty routine for customers. When you think like a business, you need to understand very clearly what you are selling and what proposition your products offer your target customers.

It is possible to launch with a single product, and there are well-known examples of beauty brands with only a ‘hero’ product to their name. If you are creating a range, work out how the products complement each other. Also, given issues of sustainable consumption, think about how a single product can demonstrate a unique selling proposition by multi-tasking.

Your range has financial implications so you need to decide how many products to launch with and which create a minimal viable range that makes sense for your budget and for your customers’ needs. Above all, your cosmetics’ range will need to demonstrate it has a place in the market and how it improves your customers’ lives.

Step 5: Your competitors

Yes, your competitors most certainly have a place in your skincare business plan. You, as the founder, bring your individual perspectives and experiences to your brand, so in one sense you have uniqueness built into the foundations of your beauty business. That said, you need to keep a close eye on the movers and shakers in your niche and in particular at your product range’s price point. Knowing your competitors keeps you on your toes and is information any investor will ask for, up front and early on.

It can be frustrating at times to research your competitors as their websites might be PR speak and not give much away. Look for interviews with the founders and follow them on all their social media to glean more. Competitor research can help you identify areas where your brand can thrive and can show you more effective ways to grow customer loyalty – and build your business. See what they are doing so that you know what’s working for them and what isn’t. Write a list of their strengths and weaknesses to see how you can do better. You also need to know where to position yourself in comparison to your competitors.

Don’t obsess about your competitors, but check in on what they are up to every few months. Your aim is not to copy them, but to control your beauty products’ conversation. Again, if you have clarity on the earlier steps – mission, vision, niche and customer – then you are on solid ground. It is just good business sense to know what is going on in the market.

Step 6: Your manufacturing strategy

Your manufacturing strategy is a large part of your business strategy. You need to decide whether you will be producing your beauty products yourself in your own (home) lab – according to Good Manufacturing Practice (GMP) , using a contract manufacturer or opting for private label products. You need to define also which route suits you at launch and mention any plans to switch model later on.

Each model has its pros and cons depending on your mission and vision, as well as implications for important aspects of your business such as distribution, logistics, financing, and contractual obligations to retailers who stock your brand. How many units of products do you envisage creating a year? Which model suits your entrepreneurial ambitions and lifestyle? As you can see, your business model and manufacturing model go hand in hand. Having an end goal in sight is critical to shaping your overall business plan, the amount of capital you need to raise and the way you conduct your day-to-day operations.

There is no right or wrong choice here, but ensure you know the implications of whichever route your opt for. It might sound perfect making your own products at home in small artisanal batches, but we do know of beauty entrepreneurs who find their business sky rockets faster than they imagined. They then play catch up trying to find and fund outsourced manufacturing so they don’t let retail stockists down. This is a critical area of your business plan and needs you to consider your vision and ethos, as well as think about your own time, hiring staff, and your overall financial situation.

Step 7: Your retail strategy

We’ve seen many indie beauty entrepreneurs think they can sell direct to consumer from their website alone. To do this successfully, you need to invest in becoming a proficient digital marketer – or outsource the role. It can be tempting at the outset to want to sell directly from your own website because your keep all the profit yourself. However, although you receive lower profit margins by having your products stocked in stores and e-stores, retailers can help get your products sold and your brand known as they have a ready customer market; whereas you are unknown and have to build awareness of your brand from scratch.

The work you have done so far in defining your niche, customers, competitors and product range should indicate which retailers suit your brand best. Will your brand fit into the mass, so-called ‘masstige’, premium or luxury retail categories? And which retailers do you hope will stock your brand? What are their likely margins and what implications does this have for your manufacturing model and financial forecasts? Will you also work with distributors in certain markets, especially overseas, and again, how do their margins affect your bottom line?

You must address all these questions and more in your beauty business plan . It is no good working out how and where to sell once your products are all stacked in boxes in your living room or at a warehouse!

Step 8: Your funding

We might have left finances to last, but finding the money to fund your business is an issue that dominates your entire business plan. As you’ve seen, each previous step has financial implications. As we mentioned in our post on how to start a cosmetic business from home , you won’t be able to run a successful beauty brand without having a firm grip on finances. Having sound plans for raising finance at various junctures in your business is sound business practice.

Your business plan needs to cover the different types of funding options available to you now and in the future, whether ‘love money’ loaned from friends and family, bank loans or other sources such as crowdfunding. it needs to look at short-term and long-term sources of finance. You need to understand and pre-empt what your potential investors will ask you about financing and demonstrate in your business plan that you and your business are worth investing in.

Step 9: Your financial forecast

If you are reading this, it is likely you are thinking of starting an indie beauty business. As business plans are best written in the first year of your beauty business, you may well be pre-revenue when you draft it – or need it when pitching to investors. You may not have sales yet, but you can still show some key figures on the size of your market and your brand’s potential.

To introduce your financial forecast, you should include a timeline showing your milestones, such as when you started, your key achievements, any brand or packaging development, what stage you are at now, i.e. do you have a product in creation and how much have you invested or fund-raised so far? If you are already selling, then you can show how much investment has gone into the company already, what returns and sales you have and what your financial projections are.

There will be a need for you to factor in expenses you hadn’t thought of. One such ‘hidden’ expense we see many beauty entrepreneurs fail to predict is the need to cover retailers’ promotions. Stores generally expect you to contribute to their promotions of your products. Cashflow is everything in a business, even one selling successfully. You may face shortfalls of cash while waiting for retailers to pay you. That time lag means your day-to-day business can grind to a halt if your cash is tied up in stock and you have nothing to cover buying in more raw materials to keep production going or to cover promotions or seasonal campaigns.

As you can see, financial forecasting is about your day-to-day business, and this alone is one reason you need to revisit your business plan frequently. You need to keep an eye on your profit and loss sheets and map the trends monthly. Learn as much as you can yourself about financial forecasting and measuring your business’ financial health. Having an accountant or financial expert assist with this information can help you be better prepared both day to day and when talking about your finances to potential investors.

10: What to do with your plan now

Congratulate yourself. You have made it through the first draft of your business plan – or roadmap. But, now comes perhaps the hardest step of all; that of doing something useful with your business plan, as opposed to archiving it in some filing cabinet. This is a plan to revisit and adjust, and to assess your business’ health and performance against. It is not a document to present to banks and potential investors at the start of your business journey and then forget all about.

So, what exactly do you need to look at it for, and how often? Let’s take just a few examples of areas you will need to review.

First, you need to revisit your financial forecast monthly. See how your budgeting is measuring up against actual sales and expenses. Are things on track? Either way, yes or no, you will have a benchmark against which to measure your current business health. This information will guide you as you go forward.

Then, revisit your competitors and the overall market situation. How have things changed and how might this affect your product range, pricing or development? Be aware that you need time to get established in your market. Knee-jerk reactions can be costly. But use your plan to monitor things.

Examples of areas to review annually are your mission, vision and niche. Was your research when drafting the plan accurate? Have you proved the concept of your brand and product range? Access to a mastermind group of like-minded business founders, even in different sectors, or a mentor can help you work through any changes you think are necessary to your core statements. Again, think these through basing decisions on financials too.

Pre-enrol in a Formula Botanica course and learn how to start a cosmetic business

We hope our points have given you the outline of what you need in to think through in starting a beauty business. If you have a mission to create a beauty brand that’s bigger than yourself – a skincare brand, haircare line or makeup range that changes people lives – we can help you learn how to formulate your own products and all about bringing a brand to market.

Pre-enrol now in our Diploma in Beauty Brand Business Management – the ultimate online training programme in starting or growing your indie beauty brand. We like to refer to it as a Beauty Brand MBA. It is a combination of award-winning teaching materials and a web summit with 30+ influential speakers drawn from the best in the beauty and business community.

Or why not pre-enrol on one of our formulation diplomas and courses in skincare, haircare and cosmetic science to change your life through natural formulation? All our courses are fun and empowering and can be career changing.

Your start-up costs with a beauty business vary according to where you set your sights and relate very much to your personal goals and circumstances and not only to current funds and cash flow. The ballpark figure you find is around US $20,000 or similar in Euros. If you wish to outsource, initial start-up costs are high as most contract manufacturers require large minimum order quantities. Similarly, your branding and packaging also rack up costs especially if you are aiming at the more luxury end of the market. Writing a business plan to help you think through all the variables can give you a clearer idea of your beauty business start up costs and help you plan finances as your business grows. You can start on a small budget by making product at home to sell at local markets. Work out your personal goals and lifestyle needs first to have an idea of what costs you will face.

Indie beauty is flourishing and ever more skincare entrepreneurs find a niche and enter the market. But, finding a niche that resonates with customers is key to defining what type of beauty business to launch. Being clean, green, natural or even organic is not enough these days to necessarily differentiate your potential beauty business. Think carefully about how your beauty products will resolve the issues and fulfill the needs of a clear segment of consumers. Do not be all things all to people. By researching for and writing a beauty brand business plan, you will shape your ideas and define a viable product offer, customer base and route to market.

Join us at Formula Botanica, where tens of thousands of students and followers take our free and paid online courses to learn how to formulate organic skincare and haircare for themselves or to sell and also how to set up a beauty brand and business.

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Liz Ayling | Formula Botanica

Liz is Formula Botanica’s Content Coordinator and joined our team in August 2020. Liz worked as a professional blogger, journalist and site developer for many years and was also part of the Formula Botanica student community. Read more about the Formula Botanica Team .

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Cosmetic Business Plan Template & Guidebook

Are you dreaming of opening your own cosmetic business, but feel like you don't know where to begin? With the right guidebook and business plan, you can be well on your way to realizing your goals and making a success out of your venture. The #1 Cosmetic Business Plan Template & Guidebook is an essential tool for any budding entrepreneur or established business owner looking to take their cosmetics business to the next level. With specialized strategies and well-researched advice, this guidebook provides everything you need to know about setting up and growing a profitable cosmetics business.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Cosmetic Business [11 Steps]
  • 10+ Best & Profitable Cosmetic Business Ideas [2023]

How to Write a Cosmetic Business Plan in 7 Steps:

1. describe the purpose of your cosmetic business..

The first step to writing your business plan is to describe the purpose of your cosmetic business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a cosmetic business:

Our mission is to provide our customers with the highest-quality beauty products and services. We strive to surpass our customer's expectations through a commitment to quality, innovation and exceptional customer service. We will use our expertise in cosmetic science and technology to develop innovative, safe and healthy products that enhance our customer's beauty.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Cosmetic Business.

The next step is to outline your products and services for your cosmetic business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your cosmetic business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your cosmetic business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your cosmetic business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

sample business plan cosmetic line

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a cosmetic business?

  • Business license: A business license is required to legally operate a cosmetic business.
  • Product liability insurance: This form of insurance provides coverage for costs associated with product injury, illness, or death caused by a product that was manufactured, sold, or distributed by the business.
  • Business plan: A business plan is essential for any cosmetic business in order to develop a roadmap for achieving success.
  • Work space: Depending on the size and scope of the business, you may need to rent or buy a retail space.
  • Containers: You'll need containers for storing your products, such as bottles and jars.
  • Labeling supplies: You'll need labels and labeling equipment to clearly label your products with name, ingredients, and other relevant information.
  • Packaging materials: You'll need packaging materials such as boxes, bags, and wrapping paper.
  • Raw materials and supplies: Depending on the type of cosmetics being made you will need raw materials such as fragrances, dyes, preservatives, etc.

5. Management & Organization of Your Cosmetic Business.

The second part of your cosmetic business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your cosmetic business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Cosmetic Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a cosmetic business varies based on many different variables, but below are a few different types of startup costs for a cosmetic business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your cosmetic business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your cosmetic business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your cosmetic business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

sample business plan cosmetic line

Frequently Asked Questions About Cosmetic Business Plans:

Why do you need a business plan for a cosmetic business.

A business plan for a cosmetic business is essential to help you create a roadmap for your venture, set realistic goals and expectations, identify potential challenges and opportunities, and secure financing. A detailed business plan will also enable you to create an effective marketing strategy, determine pricing structures, anticipate cash flow needs, and create a detailed budget. Additionally, it will help ensure that you have the necessary resources in place to maintain and grow your cosmetic business over the long term.

Who should you ask for help with your cosmetic business plan?

It is advisable to consult with a business consultant or a financial advisor who has experience in writing business plans for the cosmetics industry. Additionally, you can find information and resources online to help guide you through the process of creating a business plan.

Can you write a cosmetic business plan yourself?

Yes, it is possible to write a cosmetic business plan yourself. You will need to research the industry, develop a business model, and outline your financial goals. Additionally, you will need to create a marketing plan, determine pricing and production methods, and consider other factors such as competition. Finally, you will need to write up the plan and make sure it is coherent and convincing.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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  • June 13, 2023
  • How to Make a Good Cosmetics Business Plan

Cosmetic products

The cosmetics business plan plans are the blueprint of any successful cosmetic business model. To create a proper business plan, you need to understand your business and its objectives. 

In this article, we’ll explain why it’s important to conduct market research and define your business concept and objectives. We’ll also explain why it’s essential to consider marketing, competitor analysis, advertising, partnerships, and even packaging when starting operations in a business.

Step 1: Conduct Market Research

The first step to starting a cosmetics business is conducting market research. To get the best from market research, you have to consider the overall market size and trends, consumer preferences, and look out for businesses that can be close competitors. Let’s explore these in more detail. 

Understand Market Size and Trends

If you want to grow in the cosmetic business and retain your customers, you have to be fully aware of some history behind cosmetic industry trends. According to Grand View Research, the cosmetic industry had a market size that is valued at 262.21 billion dollars in 2020 and is expected to extend further by 4.2% between 2023 – 2030.

Knowing the history behind the cosmetics industry will help you understand what your brand’s place is in the market, and how to develop from there. Understanding market trends can help to make informed decisions on what pattern to adopt for marketing cosmetic products.

Analyze Consumer Preferences

Let’s face it, not everyone likes the same thing. What you may like, another may find unsuitable for their needs. As a cosmetic industry, you have to accurately analyze what your target customers may want, and take their preferences into account when trying to make your product and construct a business plan for cosmetic products.

For example, some people may find several ingredients in a skincare product more helpful for their oily skin, while others may find it too harsh or irritating to their dry skin. Younger people may prefer airtight bottles with better precision, while older people may have no problems with any bottle packaging.

Investigate Competitive Landscape

No matter what industry you find yourself in, competition is stiff. However, competitive landscapes vary across industries, which is why it is important to do your research on the competition.

As a young business, you need to gather information about bigger cosmetic product companies like Nivea, Dove, Gillette, Pantene, and L’Oreal. Also, you can also keep tabs on fast-developing companies like Fenty Beauty. Including this in your cosmetics business plan will help you understand how to beat the competition and come out on top as one of your industry’s leaders.

Shopping cosmetic products

Step 2: Define Business Concepts and Objectives

A strong and sturdy business concept and cosmetics company business plan will make your objectives more achievable and will hasten your progress. Let’s see this in more detail.

Business Concept

As mentioned earlier, a cosmetics company’s business plan and business concept helps to analyze how valuable your business idea is, how well it will solve a problem, your target audience, and their interest in the problem itself. Doing this helps you understand whether that business idea is worth investing in in the first place.

Here are different business concepts needed for natural, organic, and healthy beauty.

● Natural/Organic Beauty

Natural/organic beauty products are popular among a niched target audience, and they tend to look out for some details when picking their products. Organic beauty business concepts include the production of cosmetic products using only natural or organic ingredients. 

Recently, there has been an increase in the number of natural or organic beauty product users. This is why it is important to include organic products in a cosmetic product lineup.

Organic beauty products

● Luxury/High-end Beauty

Undoubtedly, there are many luxury cosmetic products out there, and they currently dominate the cosmetic industry. Luxury or high-end beauty products need well-detailed business concepts and objectives in order to beat the competition. 

Luxury/high-end brands often focus on getting quality, highly-customizable packaging. When you come across this kind of packaging, you’re most likely going to feel a sense of exclusivity and sophistication. In your business plan for cosmetic products, you have to include the cost and pricing for this packaging.

luxury Plastic Jar

● Healthy Beauty

Cosmetics are made with ingredients that foster healthy skin. Different skin types react to cosmetics differently, but promoting a healthy beauty product will ensure that only the finest healthy ingredient is used on skin care products

Some of the healthy ingredients used in cosmetics are Aloe vera, green tea extract, shea butter, and chamomile. Aloe vera can hydrate the skin and reduce inflammation, shea butter improves the skin’s elasticity with its rich supply of vitamins A and E, and chamomile on the other hand is helpful on sensitive skin to promote better skin health.

Increasing market share and establishing a strong brand identity are key objectives for a cosmetic business’ growth.

● Increase Certain Market Share

One of the most essential objectives is obtaining a substantial portion of the market share. Not surprisingly, larger cosmetic businesses control a good amount of market share. That said, smaller, emerging cosmetic businesses’ primary objectives should be to take away some of this market share from their larger counterparts.

They can do this by improving the quality of their product and being innovative. Instead of focusing on the products of the existing larger cosmetic businesses, adequate research should be carried out to produce a more innovative formula that will yield a better result. This way, smaller businesses can garner the attention of cosmetic lovers and achieve their marketing objectives.

● Establish a Strong Brand Identity

Brand identity lets your customers know who you are, what you bring to the table, and your company’s values and personality. In order to attract your target audience, you need to include plans on how to gradually develop your brand identity into your brand’s business plan. 

Brand identity can be established in the form of a unique brand name and logo, design consistency in the brands’ visual or audiovisual materials, and catchy phrases. 

● Expand the Product Line 

A good cosmetics business plan often includes plans for expansion. If you sell a certain cosmetic product, you will most likely want to branch out and sell other types of cosmetic products. If the brand has mainly been selling skincare products, the brand’s product line can be expanded to include makeup products, hair products, and even fragrances.

For a better marketing result, you can create multiple business plans for different types of products such as a makeup business plan for makeup products, and a skincare business plan for skin care products.

primary packaging for makeup

Step 3: Identify Target Customers

Without identifying the kind of customers you want, it’ll be challenging to get sales and attract customers to your brand. Here are these types of target customers in greater detail.

● Beauty Enthusiasts

Beauty enthusiasts are often highly interested in all the best and latest cosmetic and skincare products. Additionally, they are highly interested in the latest beauty trends. These types of people use exclusive and innovative cosmetic application products like rollers. To attract these types of customers, your brand also needs to keep up with these trends.

Luckily, you can find many of these beauty enthusiasts closely following thought leaders in this industry on various social media channels and forums. For these target customers, you may need to include digital and offline marketing campaigns and create a detailed makeup business plan and skincare business plan. 

● Budget-Conscious Consumers

Budget-friendly consumers take their money into account when choosing their products. Because these consumers closely track how much they spend on products, they will only consider a particular product if it’s affordable, and fits into their budget.

To get these kinds of people, you have to make sure many of them can comfortably afford your product by leveraging on price strategies. Not surprisingly, these customers shy away from luxurious brands, choosing to purchase multi-purposed products instead.

● Minimalists

Minimalists prefer a simplified skincare and makeup routine. Unlike beauty enthusiasts, they don’t focus on getting the newest cosmetic products. Rather, they choose products with high functionality, allowing them to minimize their expenditure and the number of skincare products they buy.

Minimalists like to live their lives with less clutter, and generally choose to live simpler lifestyles. In the case of cosmetic products, they like to use as few products as possible. So, if you want to attract these types of people, make sure you develop a minimalist makeup business plan and skincare business plan that have these people’s best interests at heart.

Step 4: Conduct a Competitor Analysis 

In order to conduct an effective competitor analysis, you have to analyze their product offerings, brand position, pricing strategies, and distribution channels. Let’s see these in more detail.

Analyze Competitors’ Product Offerings

Product offerings help to present a unique value proposition to a consumer. For a business to become successful, it has to include detailed plans on how to present its product’s unique value proposition to its customers. Nivea’s unique value proposition is to protect the skin of the entire family.

Many cosmetic companies offer an array of products that make it hard for new businesses to break into the market and compete. For example, Nivea offers cosmetic products like hair care products, skincare products, and even deodorant for males and females. Analyzing these competitors and their products will make you weigh your options and determine how best to enter the market.

Analyze Competitors’ Brand Position

Brands like Nivea have taken steps to maintain a strong brand positioning. Before getting your business off the ground, make sure you understand your competitors’ position and how much influence they have on the market.

Contrary to popular belief, brand positioning isn’t just slapping catchy tag lines and fancy logos on your web and social media pages. Effective brand positioning will make your brand favorable and valuable to your consumers. 

Cosmetic Jar

Analyze Competitors’ Pricing Strategies

Strategic pricing is another way to infiltrate the market. If you want to figure out the best pricing, take a quick survey of all your competitors and their pricing. 

For example, if Nivea and other big brands’ hair care products are being sold for an average of $50, try to figure out a way to sell your products significantly or slightly lower. This way, you can attract budget-conscious customers who want more for less. 

Analyze Competitors’ Distribution Channels

Analyzing distribution channels helps you figure out the best distribution channel for your business.

In addition to traditional distribution channels like wholesaling and retailing, E-commerce has emerged as one of the biggest distribution channels in the beauty industry. If you’re a smaller cosmetic company trying to find its footing, E-commerce is a good way to get orders coming in. 

Step 5: Develop Product Line and Brand Strategy

Brand strategy and product lines can make or break your brand. Big brands like Pantene and Dove have solid brand strategies and diverse product lines for inclusivity. 

Product lines and breaks strategies involve developing core product lines and seasonal collections, brand storytelling, and collaborations with influencers. Let’s look into these points. 

Product Line Strategies

The best product line strategies are creating a core product line and a product line specific to a particular season or holiday period. 

● Core Product Line

Your brand is more likely to stand out if it has a core product line. Having this improves your brand’s ability to stand out, and makes your products accessible to more diverse audiences. Collections like the Gold series collection owned by Pantene have become so popular that it has won multiple awards in the cosmetic industry. 

● Seasonal Collections

Seasonal collections are exactly what they sound like seasonal. We have different cosmetic care needs during various seasons, so it’s essential for your brand to take that into account. Also, during periods like Christmas and Easter, it’s important to have collections in order to divert attention toward your brand and increase sales.

Brand Strategies

Telling your brand story and collaborating with thought leaders and influencers in your industry are amazing ways to drive your business’ growth and infuse some personality.

● Tell the Brand Story

Every brand has a story. Brands have missions, goals, and visions peculiar to them that drive them forward, and communicating this mission to your audience will boost your customer acquisition and retention. For example, Nivea is now a household name, as it has sold itself as a family-oriented cosmetic care company. 

● Collaborations with Influencers

 Influencers will always be able to drive customers to patronize your brand, and it’s important to include them in your cosmetics business plan. Not only do they bring customers, but they put your brand in the cosmetic industry’s limelight and make them favorable to your desired customers.

7

Step 6: Define Marketing and Sales Strategies 

Marketing and sales is another essential part of a successful skincare business plan. Now, digital marketing, retail partnerships, and advertising have proven to be the most effective ways to promote your brand. Here are the facts:

Digital Marketing

Due to the integration of technology and, specifically, the internet, into the cosmetic industry, business has booked like never before. Search engines and social media channels like Facebook, Twitter, and Instagram can create massive awareness for your brand and also enable you to create and maintain a positive relationship with your customers.

Retail Partnerships

Wholesale and retail partnerships will always remain powerful ways to get new customers fast. For increased reach, you can reach out to select retail stores within and outside your area. More often than not, these businesses are open to opportunities that will make them more money. 

Also, retail partnerships help with your brand positioning and improve customers’ trust in your brand. For instance, there is a higher chance of selling a cosmetics product if a retailer talks to the customer about the product.

Online and Offline Advertising

Advertising has become a highly extreme marketing tool, and it is now used by large and small cosmetic brands alike. 

Offline advertising involves guerilla marketing campaigns, using billboards, flyers, posters, and so on. On the other hand, online advertising involves running ads on search engines and social media. Make sure to include a good blend of both into your skincare business plan and marketing efforts.

Step 7: Outline Operational and Plans

Without plans for operations, a business plan is as good as useless. Supply chain management and quality control are important factors to consider when making plans for operation. Here are these factors in more detail. 

Supply Chain Management

Supply chain management is the management of the flow of goods, data, services, and finances related to a particular business, from the state of manufacture to the state of consumer consumption. 

If you want good customer loyalty and avocation on a cosmetic product, you have to make this process as smooth and quality as possible. Additionally, efficient supply chain management saves costs and hastens the delivery process to the final consumer. 

Quality Control

Quality control is a set of procedures that your product will be subjected to in order to ensure that it meets the criteria for quality. In order to avoid your brand putting out inconsistent quality, you will most likely face a lot of customer satisfaction issues that you have to meet. 

Quality standards have been put in place in the cosmetic industry, starting from ingredient selection which should strictly follow the INCI (International Nomenclature of Cosmetic Ingredients) list of approved ingredients. 

Also, microbiological testing is carried out on cosmetic products to ensure that they are not contaminated, and are not harmful to cosmetics users.

1 3 1

Step 8: Outline Financial Plans

Financial planning is the backbone of any business plan. Creating a cash flow forecast and a profitability analysis is key to your business’s growth and profitability. Let’s take a look at these factors. 

Create a Cash Flow Forecast

Cash flow forecasts typically predict a company’s future financial position; a company’s cash flow involves receivables and expected payments from various sources. Cash flow also involves money from future sales of assets, grants, bills, and miscellaneous expenses.

That said, a cosmetics company can create a cash flow forecast to track how much the business is estimated to spend in the future. Doing this will help to plan for times when the company’s low on cash.

Profitability Analysis

Profitability analysis is the calculation and analysis of the profits of a business. The cosmetic industry has a different net profit margin that is affected by the company size, location of the business, availability of competitors, and the business strategy used. All these are determining factors in deciding on the cost of a product, and the profit that can be gotten from the product.

Customize Your Ideal Cosmetic Bottle Packaging

One of the trends in cosmetics involves developing an ideal bottle packaging that speaks for your brand. These trends revolve around making eco-friendly packaging and maintaining thoughtful pre-sale and post-sale services. 

Eco-Friendly Cosmetic Packaging Materials

Eco-friendly cosmetic packaging is becoming increasingly common, and many customers now look out for this. Luckily, Cosmopacks have created highly customizable packaging for brands worldwide using bamboo, Post-consumer recycled plastics, glass, and bioplastics.

Our list of cosmetic packaging includes:

  • Cosmetic bottle
  • Cosmetic jars
  • Cosmetic tubes
  • Makeup packaging
  • Recycled cosmetic bottle

Thoughtful Pre-Sale and Post-Sale Service

We offer thoughtful pre-sale and post-sale services that include efficient consultation and communication, printing and sampling, production and warehousing, and inspection and shipment of all our packaging products to our customer’s desired locations.

Creating a skincare business plan can seem like a herculean task, but taking the time to add these details above can make all the difference. Effective marketing and customer service, competitor analysis, cosmetic packaging plans, operational plans, and market research are all integral to your brand’s success in the short and long term.

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How to write a business plan for a cosmetic brand?

cosmetic brand business plan

Putting together a business plan for a cosmetic brand can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing cosmetic brand, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a cosmetic brand?

What information is needed to create a business plan for a cosmetic brand.

  • How do I build a financial forecast for a cosmetic brand?

The written part of a cosmetic brand business plan

  • What tool should I use to write my cosmetic brand business plan?

Having a clear understanding of why you want to write a business plan for your cosmetic brand will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a cosmetic brand business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your cosmetic brand is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your cosmetic brand, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

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To get visibility on future cash flows

If your small cosmetic brand runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your cosmetic brand's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your cosmetic brand business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your cosmetic brand's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed cosmetic brand business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your cosmetic brand has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a cosmetic brand, let's take a look at what information is needed to create one.

Need inspiration for your business plan?

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Writing a cosmetic brand business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a cosmetic brand

As you consider writing your business plan for a cosmetic brand, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your cosmetic brand.

Your market research could reveal that your cosmetic brand may be particularly appealing to younger consumers, given the vibrant colors and modern packaging. Additionally, your research may indicate that customers may prefer to purchase products from your brand in a set, rather than individually.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your cosmetic brand.

cosmetic brand business plan: successful entrepreneur

Developing the sales and marketing plan for a cosmetic brand

Budgeting sales and marketing expenses is essential before creating a cosmetic brand business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of a cosmetic brand

Whether you are starting or expanding a cosmetic brand, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A cosmetic brand might incur staffing costs such as salaries for employees, such as a marketing team, sales team, customer service team, and product development team, as well as associated costs such as benefits. The brand might also incur costs for equipment such as computers, printers, and other technology to support their operations. Additionally, the brand might incur costs for ingredients and materials for their products, as well as packaging and labeling costs.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your cosmetic brand, it is time to start creating your financial forecast.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

What goes into your cosmetic brand's financial forecast?

The financial forecast of your cosmetic brand's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a cosmetic brand are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a cosmetic brand shows how much revenue and profit your business is expected to make in the future.

example of projected profit and loss statement in a cosmetic brand business plan

A healthy cosmetic brand's P&L statement should show:

  • Sales growing at (minimum) or above (better) inflation
  • Stable (minimum) or expanding (better) profit margins
  • A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established cosmetic brand.

The forecasted balance sheet of your cosmetic brand

The projected balance sheet of your cosmetic brand will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a cosmetic brand business plan example

Analysing your cosmetic brand projected balance sheet provides an understanding of your cosmetic brand's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your cosmetic brand's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The projected cash flow statement

A cash flow forecast for a cosmetic brand shows how much cash the business is projected to generate or consume.

example of cash flow forecast in a cosmetic brand business plan

The cash flow statement is divided into 3 main areas:

  • The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
  • The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
  • The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your cosmetic brand business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your cosmetic brand as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

cosmetic brand business plan: sources & uses example

Having this table helps show what costs are involved in setting up your cosmetic brand, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your cosmetic brand business plan, let's shift our focus to the written part of the plan.

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a cosmetic brand business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your cosmetic brand's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your cosmetic brand's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your cosmetic brand business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your cosmetic brand, you may want to emphasize its potential for growth. You could discuss the availability of resources such as a talented workforce, an educated population, and a wide range of potential customers. You may also want to highlight its potential for innovation, its access to transportation and communication networks, its proximity to other markets, and its potential for economic development. Finally, you could emphasize the potential for collaboration with other brands and businesses in the area that could help to increase visibility and recognition for your brand.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your cosmetic brand business plan should include a detailed description of what your company sells to its customers. 

For example, your cosmetic brand could offer customers a wide selection of high-quality makeup products, such as foundations, mascaras, eyeshadows, and lipsticks. You could also provide beauty and skin care services such as facials, waxing, and eyebrow and lash tinting. Finally, you could offer makeup tutorials and classes to help customers learn more about makeup application techniques, color matching, and product selection. All of these offerings would aim to help customers look and feel their best, while providing them with the most up to date cosmetic trends and knowledge.

The reader will want to understand what makes your cosmetic brand unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

cosmetic brand business plan: products and services section

4. The market analysis

When outlining your market analysis in the cosmetic brand business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your cosmetic brand, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your cosmetic brand targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include young professional females. They are likely to be educated, well-off, and busy with their careers, but still want to look their best. These women are willing to invest in products that help them look their best, and are likely to be interested in trends in fashion and makeup.

In the competition subsection, introduce your main competitors and explain what sets your cosmetic brand apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your cosmetic brand.

5. The strategy section

When writing the strategy section of a business plan for your cosmetic brand, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your cosmetic brand could face risks related to product safety and customer satisfaction. Product safety risks may arise if the ingredients in your products are not properly regulated. This could lead to customers experiencing adverse reactions after using your products, which could damage the reputation of your brand. Additionally, customer satisfaction risks may arise if your products do not perform as advertised. This could lead to customers being dissatisfied with their purchase, which could lead to a drop in sales and a negative customer experience.

6. The operations section

The operations of your cosmetic brand must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your cosmetic brand - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

A cosmetic brand could have a signature product line or unique collection of makeup as a key asset and intellectual property. These products may have a distinct look, feel, or scent that customers recognize and associate with the brand. Additionally, they might also have exclusive formulas or technologies that are unique to their own products. These formulas and technologies could be protected under intellectual property laws, giving the brand a competitive edge in the marketplace.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a cosmetic brand business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my cosmetic brand's business plan?

In this section, we will be reviewing the two main options for writing a cosmetic brand business plan efficiently:

  • Using specialized software,
  • Outsourcing the drafting to the business plan writer.

Using an online business plan software for your cosmetic brand's business plan

Using online business planning software is the most efficient and modern way to create a cosmetic brand business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your cosmetic brand's business plan

Outsourcing your cosmetic brand business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your cosmetic brand business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your cosmetic brand's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a cosmetic brand business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my cosmetic brand business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a cosmetic brand business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your cosmetic brand's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your cosmetic brand. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start a cosmetic brand? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Essentials of a Cosmetics Business Plan: How to Write One

  • Written by 440 Industries
  • Business Planning , Cosmetics , Fashion Merchandise
  • September 21, 2021

Essentials of a Cosmetics Business Plan: How to Write One

The cosmetic business umbrella has three vital areas. They include color cosmetics, aka makeup, fragrance, and skincare. Although these areas are closely related, they fall under different consumer personal cosmetic routines. In this blog, we will discuss the proper way to develop your cosmetic business plan. Irrespective of the type of cosmetic business you want to start, this foolproof guide may just increase your chances of success.

Before we get started, how big is the cosmetic industry? In 2020, the value of the trade stood at 483 Billion USD. The numbers escalated steeply in 2021, bringing the value of the cosmetic industry at approximately 511 Billion USD. Better still, the annual compound growth rate of the sector stands at 4.75%, meaning that the value of the cosmetic industry could rise to 716 Billion USD by 2025.

  • Introduction

Cosmetic Industry Consumer Trends

Is a cosmetic business plan necessary, essentials of writing a cosmetics business plan.

The consumer trends in the cosmetic industry are nothing short of heartwarming. With pop culture and good grooming being an in-thing in the current fashion landscape, those in the cosmetic business are making fortunes. Generally, today’s consumers are open to spending a little more just to get high-quality products.

Moreover, the purchasing power of emerging nations is a force to reckon. Cosmetics are today more globalized than ever before, making the landscape favorable for international cosmetic companies. Locals in various countries are receptive to buying high-quality products from these companies that are not available locally. 

As you can tell from the above statistics, cosmetic products have a favourable audience willing to spend what it takes to look their best. Hence, you may be wondering whether developing a cosmetic business plan is worth the effort. Well, it is. Even with a growing demand for cosmetics, you need a plan to expand your exposure and make the most of the serious business opportunities.

Think of your business plan as a vital strategic document that dictates where you should focus your resources, time, and energy.  Generally, the program gives you a clear view of the game and what you intend to achieve. The tool will come in handy whenever you need to make crucial decisions that may make or break your venture. For most serious entrepreneurs, a business plan helps ensure that the everyday running of their ventures is as smooth and straightforward as possible.

Running a business requires you to make strategic moves. The cosmetic venture is no exception. Setting up a detailed strategy and ensuring your cosmetic business plan covers all ground is paramount. 

Here are essential components you must include in the plan:

Business Mission and Vision

Your mission statement is the first thing to include in your cosmetic business plan. Think of it this way; the statement will be a navigation tool that gives a story about your plans for the future of your company. Moreover, the statement indicates the purpose of your work, making it simpler to identify your company goals and remain committed to achieving your vision.

Generally, the mission and vision statement is the bedrock of your business. It should play three vital roles, which include:

  • Communicate the purpose of your venture
  • Give direction to your development strategy
  • Identify measurable company objectives you can use to gauge the success of your business strategy

Identify Your Business Niche and Audience

There is a whole world of cosmetic products out there. Consequently, you need to define your unique path into the industry to know your target audience . For instance, if you opt to specialize in good grooming products, the chances are that your target consumers are young people and the business class. That said, it will be easy for you to analyze their likes and preferences. Most importantly, you can study their trends and learn how they shop. This is crucial information you can use to move your venture to the next level.

Once your cosmetic business plan focuses on a specific audience, things will suddenly begin to fall in place. You will now have a good idea about the marketing strategies that are likely to work. In the end, if you choose skincare for seniors as your business niche, you may not want to use marketing strategies that mainly work for the youth.

Choose Your Range Of Products

Again, there is a whole world of beauty products available in the market. For instance, if you focus on natural products as your niche, it makes sense to centre your cosmetic business plan on products that fit well together. Most importantly, these products must attract the attention of your target customers.

Launching one product and exclusively selling it is not all doom. However, you may want to consider a bit of product diversity, especially if you are just getting started. Cross-selling or up-selling products that fall under the same classification may just be a good idea. Remember that according to current consumer trends, people use multiple cosmetics in combination. Focusing on one product alone may have profound financial implications that a young business may not bear.

Cosmetics Business Plan; Know the Competition

The next important step of developing your cosmetic business plan is to identify your competitors. The cosmetic industry is ripping fortunes. Hence it makes sense to know the movers and shakers within your chosen product niche . The idea is to know everything about them. Yes, everything about them. This includes their product range, their prices, marketing strategies, and more. This information will help you decide what to do to remain unique and keep pace with respected names within your line of business.

Develop a Manufacturing Strategy

So, do you intend to produce your unique range of cosmetic products? If you do, you need to have a manufacturing strategy. Typically, there are two options you have. One, you could opt to manufacture the products in person from your lab. Two, you could contract a manufacturer to do the hard work on your behalf. Either way, it is crucial to have a plan that ensures a smooth stream of products into your business.

Each of the two strategies has profound pros and cons. For instance, it’s easy to manage quality assurance when producing your cosmetics from your lab. On the downside, this can be a financially challenging option. On the other hand, working with a manufacturer may be cheaper. In this case, it is essential to plan on vital aspects such as logistics, contractual obligations, and finances. Irrespective of your choice, make sure it works well for your business model and aligns with your mission and vision.

Spruce Up Your Retail Strategy

Here’s the deal, you are likely not to grow to your best potential if you opt to sell directly to your consumers and in person. Even if you are a top-notch digital marketer, expanding your profit margins may be an uphill task if you opt not to outsource. Naturally, it is easier to hit your profit goals when you distribute your stock to retailers and e-stores that match your product niche.

Again, nothing is as important as developing a retail strategy that aligns with your product niche. At this point, you know your targeted customers, your competitors, and most importantly, your chosen range of products. With this in mind, deciding where your cosmetics fit naturally should not be a hurdle.  Having a solid retail strategy is an integral part of ensuring the success of your cosmetic business plan.

Cosmetics Business Plan; Keep an Eye on Financing 

If your goal is to create a cosmetic business empire, it may not be necessary to have a million dollars in capital. However, having the funds to keep your operations running is as important as having a solid cosmetic business plan. Assuming you already have your capital, the next step is to analyze the financial implications of various essential actions, including your manufacturing and retail strategy. The idea is to have a grip on your funds, and by extension, ensure smooth operations.

There are different ways to finance a business . One, you could opt for a safer option and depend on loans from your friends or family. Two, you could turn to a financial institution such as a bank for the much-needed resources. Three, you may choose to involve investors and split the profits. The essential thing is to have a financial plan that keeps your business doors open without significantly impacting your bottom line.

Develop a Clear and Detailed Financial Prognosis

With a detailed financial prognosis, it should now be easier to get your business up and rolling. Think of it this way, your business may not be “thriving,” but you will have a draft to make your deal attractive to investors. Furthermore, even with no sales, you will have a clear plan of the steps you will take and how you will rip profits. Generally, a financial prognosis will give you a good idea of your brand’s potential.

As the name implies, a financial prognosis is a forecast or rather an opinion beforehand. Ideally, it is a systematic projection of the expected economic trends through financial statements. You need to have some past business financial, cash flow, and fund-flow records that allow you to predict what you can achieve in a future date if you follow a specific cosmetic business plan.

A detailed financial prognosis must include the following elements:

  • Pro-forma income statements
  • Pro-forma balance sheets
  • Business cash budget

A Great Online Class: Introduction to Professional Makeup Techniques by Domestika

If you are interested in learning more about professional makeup techniques for your business, we recommend taking a look at the online class “Introduction to Professional Makeup Techniques” by Domestika.

The course is currently under promotion, but you can use the discount code: T_BROWNLEES-PROMO to get an additional 10% discount on your purchase. This online class offered by Domestika, at a very inexpensive price covers all you need to know to create both bold, and understating looks by mastering makeup techniques. If you apply to the course through the link below you’ll be supporting 440 Industries, and we thank you for it!

Opinions matter

There you have it, a detailed guide highlighting the essentials of a cosmetic business plan. We hope that our tips are instrumental in helping you make or upgrade your current strategies. As we part ways, there are three crucial things to remember. First, this is not a standard guide that works for every business. If you make your business plan and fail to bear the intended fruit, all is not lost; develop a personalized plan. Second, mistakes are an essential part of growing as an entrepreneur. They help you identify areas that need improvement. Third, it’s never a bad idea to seek professional assistance from experts in the field, especially once your business starts booming.

If you’re interested in reading up more about successful strategies to market your fragrance business, we’ve got a post right on that. You’ll also find a list of the most profitable, expensive, and successful fragrances sold worldwide. Here’s the link!

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How To Write a Winning Skin Care Business Plan + Template

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Creating a business plan is essential for any business, but it can be especially helpful for skin care businesses who want to improve their strategy or raise funding.

A well-crafted business plan outlines your company’s vision and documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every skin care business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Skin Care Business Plan?

A skin care business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Skin Care Business Plan?

A skin care business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Skin Care Business Plan

The following are the key components of a successful skincare business plan:

Executive Summary

The executive summary of a skin care business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your skin care company
  • Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your skincare business. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company or been involved in an entrepreneurial venture before starting your skin care firm, mention this.

You will also include information about your chosen skin care business model and how, if applicable, it differs from other companies in your industry.

Industry Analysis

The industry or market analysis is an essential component of a skincare business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the skin care industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a skincare business’ customers may include:

  • Women aged 25-40 who are working professionals
  • Middle-aged women aged 45-60 who are stay-at-home moms

You can include information about how your customers decide to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or skin care services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will differ from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your skin care business may have:

  • Extensive knowledge of the latest skincare industry trends and how to apply them
  • Proven track record of successful product launches
  • Strong relationships with key retailers
  • Robust social media following
  • Highly qualified and experienced management team

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, pay-per-click advertising, or launch a direct mail campaign. Or, you may promote your skin care business via a combination of these marketing channels.

Operations Plan

This part of your skincare business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

You also need to include your company’s business policies in the operations plan. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, your Operations Plan will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters and then each year for the following four years. Examples of milestones for a skincare business include reaching $X in sales. Other examples include launching a new product line, hiring key personnel, and opening new locations.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your specific skin care industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities, you plan to hire for in the future.

Financial Plan

Here, you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs and the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Skin Care Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Skin Care Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup skin care business.

Sample Cash Flow Statement for a Startup Skin Care Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your skincare company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Now that you know what should be included in a skincare business plan, it’s time to start writing your own. The template below includes everything discussed in this article, so feel free to use it as a starting point.  

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Skin Care Business Plan

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People are increasingly opting for a healthier and better lifestyle these days. And for the same reason, there is an increasing demand for better skin care products as well.

Also, the rise of YouTube and the popularity gained by skincare has led to increasing demand for skin care products.

If you have innovative ideas to make skincare better, are a beauty enthusiast yourself, and can keep up with the changing beauty trends and demands then a skincare business might be your perfect match.

If you are planning to start a new skincare business, the first thing you will need is a skin care business plan . Use our skin care business plan example & start writing your business plan in no time.

Skin Care Business Plan Outline

This is the standard format of a business plan for a skincare business, and it includes all the key components that your plan should have.

Executive Summary

An executive summary part comes first in a business plan’s introduction.

Give a brief description of the skincare company, an introduction of all your skincare products, the concept, business models, goals, long-term and short-term plans, marketing strategy, & your direct competitors in the executive summary of the beauty products business plan.

The executive summary should catch the attention of your audience or investors to want to invest in your company.

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sample business plan cosmetic line

1) Problem Definition & Validation

Here are a few questions to answer for validation:

  • What issue (or group of issues) is your audience having related to your business industry?
  • Which options are most feasible and have the biggest market value?
  • Who are the people affected by these issues?

2) Solution

Now you know the problems and the audience you will serve, search for the solution you will provide for the problem.

3) Objectives

Describe the skin care business in detail. When an organization grows, its business objectives are the specific, quantifiable results that it wants to achieve. There are two types of goals: short-term (1-3 years) and long-term (3-5 or more years). Some of the goals might include: for instance

  • Hiring 50+ employees in 3 years (short-term)
  • 200+ customers in a year (short-term)
  • 1 million repetitive orders in 5 years (long-term)
  • 10 million sales in 5 years ( long-term)

4) Mission Statement

Your company’s mission statement outlines what it delivers, how it accomplishes this, and who it assists. It encapsulates the total worth of your product or service. Your company will achieve its vision if it stays true to its mission.

It’s important to keep your mission statement concise, precise, and explicit when you write it.

sample business plan cosmetic line

5) Keys To Success

Mention all of your company’s unique selling points. Check that your products are market-fit or not, look after your audience, and give them the exact solution that no one else is providing.

6) Financial Highlights

It describes a company’s historical financial situation (if available) as well as its future financial projections. This area of the plan includes supporting documents such as budgets and financial records, as well as funding requests.

Numbers are introduced in the financial section of the skin care business plan presentation.

Business Overview

A section of a business plan called the business overview gives a broad description of your skincare business. This part provides information about your business’s organization, values, mission, and products to the public. It can also show what distinguishes your business from rivals. This portion of the business plan is referred to as the “company description” or “summary”.

Products & Services

Provide information about all the products & services your skincare company will offer. Mention any plans you may have for all of the services and goods.

Your skincare business plan should also include any extra services you plan to offer. For example, “Free delivery above 50 or 100$ orders” or “Offer of 1+1 free products on certain days”.

Market Analysis

Educating yourself about the skincare sector is the first step. It helps in your understanding of the skincare industry.

The second benefit of market analysis is that it might enhance your marketing plan, especially if your analysis reveals market trends.

Your skin care business plan’s market analysis section has to address the following inquiries:

  • How much money is invested in the skin care industry?
  • The market is either growing or shrinking.
  • Who are the market’s major rivals?
  • Who are the main market suppliers?
  • What patterns are influencing the sector?
  • Relevant market size

By estimating the size of the market and then relating that number to your local population, you can gather the target audience.

SWOT Analysis

Make sure you’ve taken into account all of your company’s strengths and weaknesses, as well as the opportunities and threats it faces in the market, as SWOT analysis can help you develop a solid business plan.

For the skincare business also doing a SWOT analysis and defining its solutions is necessary. Using Upmetrics, you will be able to write and analyze every aspect of your skincare business plan.

Operational Plan

How you will carry out the objectives you outlined in the preceding areas is explained in your operations plan.

Describe the management team who is going to lead, along with their experience & expertise. How many personnel together can achieve those goals, and how many new ones you need to hire should also be mentioned here.

Mention all your goals and strategies for how to achieve them.

Financial Plan

Your 5-year financial statement should be broken out monthly or quarterly for the first year and then annually in the financial plan even with the comparison with past data (if any).

Your income statement, balance sheet, cash flow statements, and financial forecasts are all parts of your financial statements.

Use our business plan app to forecast your financials for 5 years so that you can plan your long-term goals too.

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Download a sample skin care business plan

Need help writing your business plan from scratch? Here you go;  download our free skin care business plan pdf  to start.

It’s a modern business plan template specifically designed for your skin care business. Use the example business plan as a guide for writing your own.

To impress investors or to predefine your business strategies: write a skin care business plan for your business. Using this skin care business plan template (PDF) , you will have a better understanding of the skincare market, your rivals, and your target audience.

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Using our business plan app, one can customize business plans per their requirements.

Use the top-notch business plan creator to impress investors, & achieve your dream of a successful skincare business.

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Cosmetic Business Plan Template [Updated 2024]

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Cosmetic Business Plan Template

If you want to start a Cosmetic business or expand your current Cosmetic business, you need a business plan.

The following Cosmetic business plan template gives you the key elements to include in a winning Cosmetic business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of an example Cosmetics business plan. Once you create your plan, download it to PDF to show banks and investors.

Cosmetic Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Sample Cosmetics Retail Store Business Plan

Do you need help starting a cosmetic line or retail shop? If YES, here is a sample cosmetic BUSINESS PLAN PDF SAMPLE.

Do you have the mindset to start a cosmetics company but you are looking for guidance on how to go about it?

In this post, I will be sharing with you everything you will need to know about cosmetics and how to start a cosmetics company that might eventually become a success if you possess the entrepreneurial skill to manage a business.

The history of cosmetics spans at least 6000 years ago and it is present in almost every society on earth. Cosmetics can be described as a preparation applied to the body especially the face to improve its appearance. Cosmetics have been in use in our societies for a very long time.

COSMETIC BUSINESS PLAN PDF SAMPLE

Before I take you through how to start a cosmetics company, let me inform you that cosmetic products can be grouped as follows:

There are various range of cosmetics and they include;

  • Concealer: This is used to hide under-eye circles and cover blemishes.
  • Foundation: This is used to even skin tone.
  • Blush: This adds color to the cheeks.
  • Mascara: This defines the eye and enhances lashes.
  • Lipstick : This adds color to the lips.
  • Eye Shadow: This adds depth to the eyes.

Other cosmetics include Highlighter, contour, primer, lip liner, bronzed, etc.

  • Personal Care Products

These include cleansing pads, colognes, cotton swabs, cotton pads, deodorants, facial tissue, shaving cream, moisturizers, toothpaste, wet wipes, etc.

  • Hair Products

Hair products include hair cream, shampoo, conditioner, hair mousse, hair color, and a host of other products.

  • Hand and Nail Products

These products include hand protectors, nail and cuticle oil, hand cream, conditioning hand wash, hand sanitizer, nail colors, nail polish, nail shiner, and others.

Just like every other industry, the cosmetic industry has different departments whose aim ranges from producing to delivering cosmetic products to their consumers. To start a cosmetic industry, you will need to choose the department you will want to specialize in.

Here are the various departments:

  • Production: This department performs duties that range from production planning and scheduling to control and supervision of the production workforce to managing product quality.
  • Research and Development: This is concerned with developing new products or processes and improving existing products or processes.
  • Purchasing: This department is concerned with acquiring goods and services for use by the organization.
  • Marketing: This department is concerned with identifying and satisfying customer needs at the right price.
  • Human Resource: This department is concerned with all aspects of employee relations and welfare.

These various departments work hand in hand to produce and deliver cosmetic products to consumers.

How to Start a Cosmetics Company

Starting a cosmetic company does not necessarily entail the immediate production of cosmetic products. One can concentrate on one aspect/department of the industry, grow in it, and then expand to other aspects.

With the modern trends in fashion and beauty in our world today, cosmetics have become an essential need in the lives of individuals. People are more aware of cosmetic products and so, it is right to say that these products, most times, market themselves. The question to look good and smell good has turned the cosmetic industry into a million-dollar industry.

Marketing of a known brand of cosmetics is a good step towards earning from the cosmetic industry. There are various known and trusted brands like L’Oreal, Mary Kay, etc. These products have stood the test of time and have millions of consumers.

Selling these products either in wholesale or retail quantities is also very profitable and another way to start your own cosmetics company as a wholesaler or retailer.

Currently, there is a demand for indigenous organic products. This is can be associated with many reasons for which one is that most of the foreign cosmetic products are not suitable for some skin types, hair types, and personal hygiene needs due to differences in the climate.

Most of these products are produced in countries with climates different from others and so are not suitable for consumers in hotter regions of the world. This is one reason why you need to start a cosmetic company in your country so that your people can happily patronize your products.

Another reason to start a cosmetic company is that the high cost of products has made consumers seek cheaper substitutes and alternatives. Apart from the high cost, some of these imported products are not readily available and can be scary.

So, whatever department of the cosmetic industry you want to venture into, you will need the following;

  • Your cosmetics shop business name must be registered with the appropriate authority.
  • A well-detailed
  • A suitable location/office where you will be operating from.
  • Capital—but, if you don’t have the needed capital, you can go seek investors or loan from banks or any financial institutions using your business plan.
  • A good marketing plan for promoting your products and converting leads to customers.

A feasibility study and research on existing cosmetic products and brands will be a good step to take towards starting a cosmetic company. The gap that exists amongst the existing cosmetic products should be explored. Depending on the interest of the entrepreneur and the available resources, a choice will have to be made between the marketing of already existing brands and producing a new line of cosmetic products.

The cosmetic industry is very profitable especially in Africa where a large percentage of the population are young women with the need to enhance their appearance. Make the decision today, start a cosmetic company now !

COSMETICS SHOP BUSINESS PLAN EXAMPLE

The cosmetics business is one that meets people’s needs daily. This makes it a very profitable one.

To run this business, not much is needed in terms of finances and skills. However, the skills that are needed in running a cosmetics business can be learned easily and by absolutely anyone.

With just the right amount of skill and determination, anyone can make it in the cosmetics business.

Are you interested in starting a cosmetics store business? Then you will need a business plan. This is because running a business successfully without having a business plan is near impossible.

Well, this article contains a cosmetics store business plan sample business.

BEAUTY SHOP BUSINESS PLAN

Here is a sample business plan for starting a cosmetics product retail store.

BUSINESS NAME: Perfect Appearance Cosmetics Company

Executive Summary

  • Our Products and Services
  • Vision Statement
  • Mission Statement

Business Structure

  • Market Analysis

Financial Plan

  • Competitive Advantage

The perfect appearance cosmetics company is a beauty store that will be based in the central business district of Los-Angeles. After a few weeks of searching, we at perfect appearance have located a perfect location for siting our business. From this location, we will expand to other parts of Los Angeles as well as the entire United States

We at perfection appearance cosmetics company are basically into the sales of cosmetics products, toiletries, perfumes, grooming products, etc. Our major aim of starting a cosmetics company is to take advantage of the unending demands for cosmetics products by people.

However, that is not all we are interested in. We are interested in making sure that the needed and the right cosmetics products are made available to people at the right price and at the right time.

As a cosmetics company, our vision is to become the biggest cosmetics store in the entire Los Angeles central business district.

Our mission is to establish a cosmetics company that will dominate Los Angeles and other parts of the United States. We aim to become a cosmetics store that is always stocked with the needed cosmetics by our ever-increasing clients

As a new business, we know that success in the cosmetics industry is largely dependent on the venue in which the cosmetics store is located. This is why we have taken out time to situate our business in a certain part of town.

The truth remains that we are looking to build a business that will last the test of time and also stand shoulder to shoulder with the more popular and established cosmetics brands. We intend to create a team that is not just interested in making profits but also in the satisfaction of our clients

Market Analysis Market Trend

The cosmetics industry is perhaps as old as human civilization. This is one reason cosmetics are easily marketable. The high demand for cosmetics products also explains the presence of cosmetics stores scattered throughout the country.

  • Target Market

The cosmetics industry is perhaps one of the few industries where there is the least amount of competition. This is because most people in the world make use of cosmetics. Putting this very simple fact into consideration, we have.

After spending so much time on our research, we have come up with a target market to sell our products to. The group of people that top the list of our target market are;

  • People involved in sports
  • Pregnant women
  • Engaged ladies
  • Business executives

Sales and Marketing strategy

Our sales and marketing strategy include;

  • Partnering with popular salons in every neighborhood
  • Selling at a reduced price
  • Good customer service

We understand that starting a cosmetics company does not require much capital. However, we are not looking to start a cosmetics business on a small scale. To start a cosmetics business on a big scale, we will need $10,000. We have been able to raise 50% of this amount. The remaining 50% will be gotten from the bank.

Over time, the cosmetics industry has become very highly competitive. As a result of this, it is quite difficult for individuals that are not very creative to succeed in this business. We are not ignorant of the high level of competition that is existent in this industry.

We at Perfection Cosmetics Company are starting a cosmetics business that will compete favorably with already established firms in the cosmetics industry. We intend to achieve this by building a team of highly skilled and creative individuals.

READ: Sample Beauty Supply Store Startup Plan

The business plan above is a business plan sample for the cosmetics company, a Perfection cosmetics company. The company will be situated in Los Angeles. Also, the funds that are needed to start and run this company will be gotten from personal savings as well as from the bank.

COSMETIC LINE BUSINESS PLAN EXAMPLE

Beauty Shades is a cosmetic business to be located in Cheyenne, Wyoming. We specialize in the manufacture of a variety of cosmetics.

Although we are located in Wyoming, we have a nationalistic outlook in marketing our products. These consist of high-quality nail care accessories and polishes, facials such as mascara, powders, multi-flavored lipsticks and glosses , sunscreens, and eyeshades among several others.

We also manufacture colognes and perfumes too. We have come at a time when people seek a balance between quality and affordability. By making both options available, we are paying attention to a large market segment that has often been overlooked. We are not coming into the industry to make the numbers. Instead, we have a strong growth drive to be among the best in the industry.

At Beauty Shades, we have several products which are of the best quality. These include colognes and perfumes, sunscreens, eyeshades, multi-flavored lipsticks and glosses, and powders. Our other cosmetic products include pedicure and manicure accessories including nail polishes as well as mascaras.

We also offer consultancy services as well as cosmetic application courses for interested persons.

Our cosmetic company is a new entrant into the industry but our experienced team is well equipped to guide our business to stability and growth. We seek to eventually expand our production to cater to the demand across several states.

We are a cosmetic company determined to make a difference. This is through the manufacture of high-quality products that are also affordable. Through this, we are meeting the needs of a neglected segment of the market who have always waited for this time

Adequate financing is crucial to our survival as a business. We are applying for loans from a bank to the tune of $600,000.00. This would be used to purchase equipment and production supplies. Of this amount, 20% will be kept as running costs. This loan has a monthly interest rate of 2%. The principal sum will be due for payment in 5 years.

  • SWOT Analysis

Our performance as a business depends on how we wade through our challenges and if we exploit our opportunities properly. This SWOT analysis carried out by experts on our business show the following;

Our strengths consist of our capabilities. On our team, we have seasoned professionals with combined years of experience amounting to 70. These are people who have previously worked for major cosmetic brands. Also, our cosmetic factory will be located in Cheyenne. This is one of America’s top destinations for skilled labor and lower production costs.

Our cosmetics company is small. Currently, we are not large enough to make our products significant enough to be noticed across different states. However, we are working on eventually expanding our business to cater to a large market.

  • Opportunity

We have identified an often overlooked segment of the market that is significant enough to focus on. This is a great opportunity for growth as we will satisfy this target market with quality and affordable cosmetics.

A threat to our operations will arise when there’s a global economic meltdown. This will mess with demand and supply due to a lack of credit facilities which makes commerce and manufacture possible.

  • Sales Projection

Our target market is big enough to enable us to consistently attain steady growth levels. To have an idea on the level of sales expected for 3 years, we have arrived at projections that reveal significant gains in profitability as shown below;

  • First Financial Year.          $250,000.00
  • Second Financial Year.        $570,000.00
  • Third Financial Year.             $890,000.00

While most cosmetic companies focus mainly on the high paying segment of the market, we have focused on a larger market that craves quality, yet affordable cosmetic products.

In the end, this will make us much more profitable than our peers. This advantage is glaring.

Our primary target markets are ladies who love to wear quality cosmetics. In narrowing down a bit more, we focus on those who seek both affordable and quality cosmetic products. This group constitutes a greater share of the market.

By meeting their needs, we will capture a substantial part of the market.

  • Sales and Marketing Strategy

While producing quality cosmetic products, having a ready market to distribute these is also as important.

We have set up a marketing department that will co-ordinate all marketing activities. These would include word of mouth or referral system, ads on beauty magazines, and soap operas.

We will also make use of social media to disseminate information.

Our cosmetic company business plan sample contains the most basic information about starting the business. You can use this as a template when writing yours. This is just an imaginary plan and represents no real business. It should be used as such.

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How To Write a Business Plan for Cosmetics Manufacturing Business in 9 Steps: Checklist

By henry sheykin, resources on cosmetics manufacturing.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

The cosmetics industry is booming with an estimated global market size of $532 billion in 2021. With the rise of conscious consumers who prefer non-toxic, natural and safe cosmetics, it's no surprise that the demand for quality cosmetics has surged. If you're thinking of starting a cosmetics manufacturing business, it's essential to have a solid business plan in place to succeed in this competitive industry. In this blog post, we'll guide you through the nine steps to create a comprehensive business plan for your cosmetics manufacturing business.

Step 1: Conduct market research. This step will help you understand the target demographic, market size and potential competitors. It's essential to determine the needs and wants of your target market before developing your products.

Step 2: Determine the initial investment needed. Creating quality cosmetics requires a significant investment in equipment, supplies and labor. Accurately calculating the initial investment will help you plan your budget and funding sources.

Step 3: Develop a marketing strategy. This step includes identifying your unique selling proposition, branding, and pricing. It's crucial to stand out from competitors by offering quality products that meet the needs of your target customers.

Step 4: Determine the distribution channels for your products. Will you sell your products through online platforms, retail stores, or both? It's essential to choose the most effective channels to reach your target market.

Creating a business plan for cosmetics manufacturing business may seem daunting, but following these steps will help you set your business up for success.

Conduct Market Research

Before starting a cosmetics manufacturing business , it’s crucial to conduct thorough market research to determine the feasibility and potential success of the business. This step will help you understand the market demand and trends, identify your target customer, and explore the potential competition in the industry.

Market research involves gathering data through primary and secondary research. Primary research refers to the data collected through surveys and interviews with potential customers, competitors, suppliers, and industry experts. Secondary research, on the other hand, is information gathered through existing reports, publications, and credible sources.

Some of the important things to consider during the market research phase are:

  • Size of the market
  • Target customers
  • Competitors in the industry
  • Current market trends
  • Consumer preferences and buying behavior
  • Pricing, distribution channels, and marketing strategies of competitors
  • Use online research tools and industry-specific publications to gather data.
  • Conduct focus group sessions with potential customers to get insights on their preferences and needs.
  • Visit trade shows, exhibitions, and events related to cosmetics manufacturing to learn about the latest trends and innovations.
  • Identify potential competitors and analyze their strengths and weaknesses.

The market research phase is essential to creating a successful cosmetics manufacturing business. It will provide you with a comprehensive understanding of the industry and help you make informed decisions on product development, pricing, marketing, and distribution strategies.

Determine Target Customer And Market Size

Before starting a cosmetics manufacturing business, it is important to identify the target customer and market size. The target customer could be anyone who uses or is interested in cosmetics, including makeup, skincare, hair and body care products. However, it is important to identify the specific demographics that the company will focus on.

One of the ways to determine the target customer is by conducting market research. This will help in identifying the preferences and behavior of potential customers. For instance, is the company targeting women, men or both? What age group is the company targeting? Is there a specific skin type that the company will focus on?

  • Tip: Conduct surveys and focus group discussions to determine the preferences and behaviors of potential customers.
  • Tip: Use social media platforms such as Facebook, Instagram and Twitter to gather insights from potential customers.
  • Tip: Gather data from beauty retailers and distributors to determine the preferences of their customers.

Once the target customer is determined, the market size needs to be estimated. This will help in identifying the potential revenue of the company. The market size could be determined by using the following methodology:

  • Estimate the total population of the target customer
  • Determine the percentage of the total population that uses cosmetics
  • Estimate the frequency of purchase of cosmetics by the target customer
  • Multiply the above three factors to arrive at the potential market size

It is also important to determine the market share that the company can realistically capture from the potential market size. This requires analyzing the strengths, weaknesses, opportunities and threats of the company against the competitors in the market.

  • Tip: Use the SWOT analysis framework to determine the market share that the company can capture.
  • Tip: Identify the unique selling point (USP) of the company compared to its competitors.
  • Tip: Determine the pricing strategy that the company will adopt to capture market share.

Determining the target customer and market size is a critical step in writing a business plan for a cosmetics manufacturing business. It helps in identifying the market opportunity and potential revenue of the company. It also helps in formulating the marketing strategy and pricing strategy. Therefore, it is important to allocate sufficient time and resources for this step.

Identify Potential Competitors

Before starting your cosmetics manufacturing business, it is crucial to identify your potential competitors as it gives insight into the market, helps you understand your strengths and weaknesses, and helps you develop effective strategies to deal with the competition.

You can begin by researching the leading cosmetic brands in the market, their products, how they market their products, their pricing strategy, and their target audience. It would be best to analyze the strengths and weaknesses of your competitors and find ways to differentiate your business and products to create a strong competitive advantage.

Here are some key aspects to consider to identify your potential competitors:

Product Line:

Market share:, marketing strategy:, distribution channels:.

Use this information to create a plan on how to differentiate your business and products from your competitors. This could include creating unique and high-quality products, providing exceptional customer service, implementing a creative marketing strategy, and developing a strong online presence.

Remember, identifying potential competitors can be very beneficial for your business, helping you stay ahead in the game and craft a successful business strategy.

Assess The Current Market Trends In Cosmetics Industry

In any business, keeping up with the market trends is critical for success, and the cosmetics industry is no exception. The cosmetics industry is rapidly growing, with a projected value of $758 billion by 2025. Cosmetics have become a necessity for people of all genders and ages. Therefore, it's imperative to keep up with the latest trends in the market for any cosmetics manufacturing business.

The following are the current market trends to keep in mind when planning a cosmetics manufacturing business:

  • Clean Beauty: Nowadays, consumers are more conscious of the chemicals they are putting on their skin. Therefore, the demand for clean beauty products is increasing rapidly. Clean beauty products are made free of harmful chemicals, such as parabens, sulfates, and phthalates.
  • Cruelty-Free: The demand for cruelty-free cosmetics is also increasing steadily. People are becoming more aware of the harmful effects of animal testing and are looking for brands that do not participate in such practices.
  • Online Sales: The trend for online shopping of cosmetics is on the rise. People prefer to shop online as it's convenient, and they can compare prices and products from different brands.
  • Minimalist Packaging: Minimalist packaging is also becoming increasingly popular in the cosmetics industry. The idea is to reduce waste and use eco-friendly packaging to promote sustainability.
  • Research the market extensively to keep up with the latest trends and incorporate them into your business plan.
  • Stay ahead of the competition by offering unique cosmetic products that align with the market trends.
  • Be transparent about your products and label them clearly to meet the current market demands for clean beauty and eco-friendliness.

Assessing the current market trends in the cosmetics industry is crucial for creating a successful business plan. The trends mentioned above are just a few examples of what's prevalent in the industry. Therefore, it's essential to conduct thorough market research to remain competitive and meet the current market demands.

Calculate The Initial Investment Needed

Starting a cosmetics manufacturing business requires a significant investment for purchasing equipment, supplies, raw materials, and hiring staff. Calculating the initial investment required to get the business off the ground is crucial for planning and securing funding.

1. Equipment and Supplies: The first step is to determine what equipment and supplies are needed for the manufacturing process. This includes mixing tanks, packaging machines, labeling equipment, raw materials, and packaging materials. Research the costs of each item and create a list to calculate the total investment required.

2. Labor Costs: The next step is to determine the labor costs required to run the business. Will the owner operate the business or hire employees? Consider all the roles needed such as production manager, chemist, marketing personnel, and sales representatives. Calculate the cost of salaries, benefits, and training for each role.

3. Operating Costs: Apart from the equipment and labor costs, there are also various other operating expenses that need consideration. This includes rent, utilities, insurance, legal fees, and marketing expenses. Estimate the cost of each item and add it to the list of investments required.

  • Do not forget to include the cost of licenses and permits required for starting the business.
  • Always keep some budget aside for unexpected costs, especially during the early stages of the business.
  • Consider purchasing used equipment to reduce the initial investment, but be cautious about the quality.

After calculating all the costs, add them up to determine the total initial investment needed to start the cosmetics manufacturing business. Once the investment has been calculated, the next step is to secure funding. This can be done through a bank loan, finding an investor, or through crowdfunding platforms.

Remember, a well-written business plan with detailed financial projections can help attract investors and impress lenders. So, take the time to create a comprehensive plan that shows the potential profitability of the business and how the investment will be used.

Determine The Company's Legal Structure

One of the most crucial steps in starting a cosmetics manufacturing business is to determine the legal structure of the company. This decision will impact the way your business operates, the amount of paperwork you need to file, the taxes you pay, and your personal liability in case of lawsuits or bankruptcy. Choosing the right legal structure requires careful thought and consideration of your business goals, growth plans, and risk tolerance.

Here are some of the most common legal structures for a cosmetics manufacturing business:

  • Sole Proprietorship: In this structure, the business is owned and operated by a single individual. This is the simplest and most popular form of business ownership. However, the owner is personally liable for all the debts and obligations of the business.
  • Partnership: In this structure, two or more individuals own and operate the business together. Partnerships can be general or limited, depending on the degree of control and liability each partner has. Partnerships require a written agreement and can be more complex than sole proprietorships.
  • Limited Liability Company (LLC): In this structure, the company is a separate legal entity from the owners. LLCs offer the protection of limited liability for the owners, flexibility in management, and pass-through taxation. However, the paperwork and fees required for setting up and maintaining an LLC can be higher than for other structures.
  • C-Corporation: In this structure, the company is a separate legal entity that is owned by shareholders. C-Corps offer the most protection against personal liability, can raise capital through stock sales, and can deduct certain expenses on their taxes. However, C-Corps are subject to double taxation on their profits.
  • S-Corporation: This structure is similar to C-Corporations, but with pass-through taxation. S-Corps have the protections of a separate legal entity but are taxed like a partnership or sole proprietorship. However, S-Corps have rules on ownership, the number of shareholders, and classes of stock that can restrict their flexibility.
  • Consult with a business lawyer or accountant to determine which legal structure is best for your business.
  • Evaluate your personal liability risk, tax obligations, and growth plans when selecting a legal structure.
  • Consider the paperwork, fees, and ongoing requirements for maintaining each legal structure.
  • Remember that changing your legal structure can be difficult, so choose wisely.

Once you have determined the legal structure for your cosmetics manufacturing business, you need to register your business with the appropriate federal, state, and local agencies.

Here are some of the common registration requirements:

  • Obtain an employer identification number (EIN) from the IRS.
  • Register your business with your state's secretary of state office.
  • Apply for any necessary permits and licenses for manufacturing cosmetics, such as FDA registration, local zoning permits, and health department permits.
  • Purchase liability and product liability insurance to protect your company against lawsuits and claims.
  • Comply with any labor and employment laws, such as obtaining worker's compensation insurance and following workplace safety regulations.
  • Research the registration requirements for each legal structure and jurisdiction.
  • Keep copies of all your paperwork, licenses, and permits in a safe place.
  • Comply with all applicable regulations and laws to avoid fines, penalties, and legal issues.
  • Consider consulting with a lawyer or accountant to ensure you have met all legal requirements for your business.

In conclusion, determining the legal structure for your cosmetics manufacturing business is a critical step. It requires careful consideration of your business goals, risks, and growth plans. You need to consult with a lawyer or accountant to make the best choice for your business and comply with all the registration requirements and regulations to operate legally and protect your company.

Set Up A Team And Assign Responsibilities

One of the crucial steps towards running a successful cosmetics manufacturing business is to have a dedicated team with well-defined roles. This team can comprise professionals with diverse expertise such as scientists, marketing specialists, designers, accountants, and other industry-related experts.

When setting up your team, it is essential to define each member's responsibilities clearly. Begin by identifying the most important roles required for your business operations, and then determine the specific responsibilities that come with each role. Assigning responsibilities is critical to ensure teamwork, accountability, and efficient output.

Here are some roles that you may need to fill:

  • Product Development Specialist - handles the creation and formulation of cosmetics products.
  • Marketing Specialist - responsible for marketing and promoting products on social media, traditional media outlets, and other platforms.
  • Graphic Designer - responsible for designing product packaging, logos, and other branding materials.
  • Finance and Accounting Specialist - handles the financial aspects of the business such as accounting, budgeting, and financial forecasting.
  • Manufacturing Operations Manager - responsible for managing the production processes to ensure quality output and timely delivery of products.

Tips for Assigning Responsibilities Effectively

  • Define specific tasks: Ensure that each team member has a clear understanding of their tasks, deadlines, and expected deliverables.
  • Delegate appropriately: Delegate tasks to individuals based on their expertise and experience level. Each team member should handle tasks that align with their strengths.
  • Clarify expectations: Clearly state your expectations concerning quality of work, communication, and accountability.
  • Encourage teamwork: Encourage open communication among team members and foster a team culture that is focused on achieving the business's objectives.
  • Monitor progress: Regularly monitor the team's progress towards completing tasks and meeting deadlines. Address any issues that may arise promptly.

By establishing a team with well-defined roles and responsibilities, you can ensure that your business runs smoothly and efficiently. With a dedicated and capable team, you are sure to achieve your business objectives and build a successful cosmetics manufacturing brand in the long run.

Develop A Marketing Strategy

Creating a marketing strategy for your cosmetics manufacturing business is essential for the success of your company. By determining your target audience and the best ways to reach them, you will increase the likelihood of converting potential customers into loyal clients.

Here are some steps to consider when developing a marketing strategy:

  • Identify your target audience: Determine who your ideal customer is, and design your marketing plan with them in mind. Consider their age, gender, lifestyle, and interests.
  • Develop your brand: Your brand is how your target audience perceives your business. Make sure that your brand values align with your target audience's interests and needs.
  • Create a website: Your website is an essential tool for promoting your business. Make sure it is user-friendly, visually appealing, and easy to navigate.
  • Utilize social media: Social media platforms are a great way to showcase your products and promote your brand. Determine which platforms your target audience uses the most, and create content that appeals to them.
  • Partner with influencers: Collaborating with influencers and celebrities can increase brand awareness and help you reach new audiences.
  • Attend trade shows: Attend beauty trade shows to showcase your products and network with potential clients and partners.
  • Focus on creating content that resonates with your audience.
  • Offer free samples to potential customers to test your products.
  • Include customer reviews on your website or social media pages.
  • Stay up-to-date with the latest trends in the cosmetics industry.

By developing a solid marketing strategy, you can improve brand recognition, drive sales, and build a loyal customer base.

Determine The Distribution Channels For The Products.

Once you have manufactured the products, you need to determine effective distribution channels to reach your target customers. There are various ways to distribute cosmetics products, and you should choose the right channels that will help you reach your customers easily and consistently.

One way of distributing the products is by selling them through beauty retailers and distributors. This method is effective for new businesses as it helps to build brand awareness and improves credibility. It also offers a chance to partner with established brands, which will help you gain access to their customer base.

Another way to distribute the products is through an e-commerce platform. This method is ideal for reaching customers who prefer shopping online, and it is also cost-effective. By setting up a website or utilizing a third-party platform, you can quickly sell the products online, enabling customers from all parts of the world to buy them.

  • When choosing a distribution channel, consider your target customer's preferences and behavior.
  • Collaborating with social media influencers and bloggers can help you expose your products to a broader audience.
  • Don't forget to consider the distribution costs and legal requirements associated with each distribution channel.

Additionally, you can distribute products through subscription boxes, which are becoming increasingly popular. By partnering with subscription box companies, you can send out sample products to the customers, which will help you create brand awareness and boost your sales. Furthermore, hosting pop-up shops and attending trade shows and events is another way of reaching out to your target customers.

In conclusion, determining the right distribution channels for your cosmetics manufacturing business is critical to achieving success. Remember to factor in your target customer's needs, preferences, and the distribution costs when selecting a distribution channel. By choosing the right distribution channels, your business can reach its target audience and increase revenue streams.

Writing a business plan is essential for the success of any cosmetics manufacturing business. By following these 9 steps, you can create a detailed plan that outlines your target market, competitors, legal structure, team responsibilities, marketing strategy, and distribution channels. You can also calculate the initial investment needed and assess the current market trends in the cosmetics industry. Keep in mind that market research, customer identification, and trend analysis are crucial for creating quality, non-toxic, and natural cosmetics that meet the growing demand for safe products.

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Skin Care Business Plan Template

Written by Dave Lavinsky

how to start a skincare business

Skin Care Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their skin care companies. 

If you’re unfamiliar with creating a skin care business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a skin care business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your skin care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a skin care business or grow your existing skin care company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your skin care business to improve your chances of success. Your skin care business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Skin Care Businesses

With regards to funding, the main sources of funding for a skin care business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for skin care companies.

Finish Your Business Plan Today!

How to write a business plan for a skin care business.

If you want to start a skin care business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your skin care business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of skin care business you are running and the status. For example, are you a startup, do you have a skin care business that you would like to grow, or are you operating a chain of skin care businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

  • Give a brief overv iew of the skin care industry. 
  • Discuss the type of skin care business you are operating. 
  • Detail your direct competitors. Give an overview of your target customers. 
  • Provide a snapshot of your marketing strategy. Identify the key members of your team. 
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of skin care business you are operating.

For example, you might specialize in one of the following types of skin care businesses:

  • Natural skin care : this type of skin care business sells all-natural and organic skin care beauty products that do not contain harmful chemicals or additives.
  • Luxury skin care treatment: this type of skin care business provides a spa-like atmosphere and uses and sells high priced products for facials, daily skin care, etc.
  • Retail skin care: this type of skin care business sells popular name brand skin care products commonly found on the internet or in stores.

In addition to explaining the type of skin care business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of products with positive reviews, reaching X number of customers served, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the skin care industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the skin care industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your skin care business plan:

  • How big is the skin care industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your skin care business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your skin care business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: adults between the ages of 15 to 70, families, and department stores.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of skin care business you operate. Clearly, department stores would respond to different marketing promotions than young ladies, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r skin care businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes online retailers, spas, or multi-level marketing skin care brands. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of skin care business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide products for teenagers and/or men?
  • Will you offer products that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a skin care business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f skin care company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide acne products, age spot remedies, a men’s product line, or daily skin care rituals?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products you offer and their prices.

Place : Place refers to the site of your skin care company. Document where your company is situated and mention how the site will impact your success. For example, is your skin care business located in a busy retail district, a mall, a standalone location, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your skin care marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites 
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your skin care business, including conducting inventory, ordering products, billing suppliers and/or customers, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth product, or when you hope to reach $X in revenue. It could also be when you expect to expand your skin care business to a new city.  

Management Team

To demonstrate your skin care business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing skin care businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a skin care business or successfully running a day spa.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.  

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 products per day, and/or offer package pricing ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your skin care business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a skin care business:

  • Cost of store furniture and skin care supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your retail location lease or a list of skin care products you plan to sell.  

Writing a business plan for your skin care business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the skin care industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful skin care business.  

Skin Care Business Plan FAQs

What is the easiest way to complete my skin care business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your skin care business plan.

How Do You Start a Skin Care Business?

Starting a skin care business is easy with these 14 steps:

  • Choose the Name for Your Skin Care Business
  • Create Your Skin Care Business Plan
  • Choose the Legal Structure for Your Skin Care Business
  • Secure Startup Funding for Your Skin Care Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Skin Care Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Skin Care Business
  • Buy or Lease the Right Skin Care Business Equipment
  • Develop Your Skin Care Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Skin Care Business
  • Open for Business

Don’t you wish there was a faster, easier way to finish your Skin Care business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

sample business plan cosmetic line

Small Business Trends

How to start a makeup line.

Personal brands play a big role in the cosmetics industry, especially with the rise of social media influencers and beauty gurus. These individuals often leverage their personal brand to launch their own cosmetic line, capitalizing on their loyal followers and unique aesthetic.

Personal makeup brands can bring authenticity, relatability, and a strong connection to consumers, which are invaluable assets in the highly competitive cosmetics market. Read on for a guide on how to start a business in this exciting industry.

The Cosmetics Industry Today

The cosmetics industry in the US is robust, and the beauty industry is continuously evolving. The global beauty industry is driven by factors such as consumer demand for innovative products, increasing emphasis on self-care and personal grooming, and the influence of social media on beauty trends.

With challenges like regulatory scrutiny and market saturation, the US cosmetics industry remains dynamic, with ample opportunities for new entrants to carve out their niche.

how to start a makeup line

Why Start Your Own Makeup Line?

There are several compelling reasons to start a makeup line and establish a beauty brand, including:

  • Passion for beauty and cosmetics: Many entrepreneurs who start cosmetic lines are drawn to the industry due to their love for makeup and skincare products.
  • Creative expression: Launching a makeup line in the cosmetics business allows individuals to express their creativity through product formulation, packaging design, and branding.
  • Business opportunity: The makeup industry offers significant potential for profit and growth, especially with the right combination of innovation, quality, and marketing.
  • Addressing unmet needs: Identifying gaps in the market or specific consumer pain points can inspire entrepreneurs to create unique products that fulfill those needs.

Initial Steps to Starting a Makeup Line

Developing a business plan for your makeup line.

Creating a business plan for a makeup line is one of the essential building blocks for new businesses to succeed . It involves several key components that lay the groundwork for your business’s structure, strategy, and financial planning. Here’s a detailed expansion on each of these components:

Small Business Deals

  • Look into common business structures and choose one that suits your business needs.
  • Analyze current makeup industry trends to identify potential opportunities.
  • Study consumer behavior to understand their preferences and needs.
  • Evaluate competitors to identify their strengths, weaknesses, and market positioning.
  • Identify gaps in the market that your makeup line can fill.
  • Determine the demographics and psychographics of your ideal customer, such as age, gender, lifestyle, and beauty preferences.
  • Develop a brand identity that appeals to your target audience, including your brand’s mission, values, and personality.
  • Choose a brand name, logo, and design theme that reflects your brand identity and resonates with your target market.
  • Decide on the types of makeup products you will offer (e.g., foundations, lipsticks, eyeshadows).
  • Define the formulations for your products, considering aspects like ingredients, benefits, and performance.
  • Design packaging that aligns with your brand identity and appeals to your target audience while also being functional and sustainable.
  • Develop pricing strategies that reflect the value of your products, considering factors like production costs, market positioning, and consumer willingness to pay.
  • Identify the most effective sales channels for your makeup line, such as online platforms, retail partnerships, or direct sales.
  • Develop a marketing strategy that includes a mix of digital marketing, social media, influencer collaborations, and traditional advertising to reach your target audience.
  • Plan promotional activities, such as product launches, events, and special offers, to generate interest and drive sales.
  • Source high-quality suppliers for ingredients and packaging materials, prioritizing reliability, sustainability, and ethical practices.
  • Choose manufacturing partners that can meet your quality standards, production needs, and timelines.
  • Set up distribution channels to efficiently get your products to market, whether through direct-to-consumer shipping, retail partners, or distribution centers.
  • Estimate initial startup costs, including product development, branding, legal fees, and inventory.
  • Project ongoing expenses, such as manufacturing, marketing, staffing, and operational costs.
  • Forecast sales based on market analysis, pricing strategies, and marketing efforts.
  • Plan for contingencies by setting aside a budget for unexpected expenses.

By meticulously planning each of these components, you can create a comprehensive business plan that not only guides the launch of your makeup line but also supports its growth and sustainability in the competitive beauty industry.

how to start a makeup line

Legal Considerations and Brand Protection for Makeup Lines

  • Choose a unique and memorable brand name that is legally available for use and registration.
  • Secure trademarks for your brand name, logos, and product names to protect your intellectual property.
  • Comply with regulatory requirements for cosmetics labeling, ingredient disclosure, and product safety testing.
  • Consider forming a legal entity, such as an LLC or corporation, to protect your personal assets and limit liability.
  • Draft contracts and agreements with suppliers, manufacturers, distributors, and any other business partners.

Funding Your Makeup Business Venture

  • Assess your startup costs, including product development, manufacturing, branding, marketing, and distribution expenses.
  • Explore funding options such as personal savings, loans, investments from family and friends, crowdfunding, or venture capital.
  • Consider bootstrapping or starting small to minimize initial financial risk and prove the viability of your makeup line before seeking external funding.
  • Prepare a comprehensive business plan and financial projections to present to potential investors or lenders.

how to start a makeup line

Starting a Makeup Line: Step by Step

These are foundational steps to consider when starting a makeup line, but each venture will have its unique challenges and requirements based on factors like product niche, target market, and business goals.

Building Your Makeup Line Business Model

Define your unique selling proposition (USP) and pricing strategy to differentiate your products in the market while ensuring profitability.

Identifying Your Target Market in the Cosmetics Industry

Conduct thorough market research to understand the demographics, psychographics, and purchasing behavior of your ideal customers, allowing you to tailor your products and marketing efforts accordingly.

Sourcing Ingredients and Manufacturers

Prioritize quality and consistency when sourcing ingredients and manufacturers, and consider factors like ethical sourcing, production capacity, and regulatory compliance.

how to start a makeup line

Exploring Private Label Options

Evaluate private label options carefully, considering factors like product customization, minimum order quantities, lead times, and the level of control you want over product formulation and branding.

Product Development and Testing

Invest in rigorous product development and testing processes to ensure the safety, efficacy, and quality of your makeup products, including formulation testing, stability testing, and consumer trials.

Creating Your Makeup Line Brand

Develop a cohesive brand identity that reflects your values, resonates with your target audience, and sets you apart from competitors, encompassing elements like brand name, logo, packaging design, and brand messaging.

how to start a makeup line

Marketing and Selling Your Makeup Line

Building an online presence for your cosmetics line.

Utilize an e-commerce platform or website startup guide to create a visually appealing and user-friendly website for your cosmetics line, optimizing it for search engines and incorporating features like product descriptions, images, customer reviews, and secure payment options to enhance the online shopping experience for your customers.

How Makeup Lines Can Leverage Social Media

Leverage social media platforms such as Instagram, TikTok, and YouTube to showcase your makeup products through engaging content like tutorials, product reviews, behind-the-scenes glimpses, and user-generated content, fostering a sense of community and authenticity while driving brand awareness, engagement, and sales.

Launching Your Makeup Line

Generate buzz and excitement around your makeup line launch by implementing a strategic marketing plan that includes teaser campaigns, influencer partnerships, press releases, and social media promotion. Then, create a memorable launch event or online release that captures the attention of your target audience and drives initial sales momentum.

FAQs: How to Start a Makeup Line

How much does it cost to start a makeup line.

The cost to start a makeup line can vary widely depending on factors such as product complexity, manufacturing processes, packaging design, branding, marketing efforts, and distribution channels. For example, developing a skin cream could require initial investments in formulation research, ingredient sourcing, manufacturing equipment, packaging materials, branding, regulatory compliance, and marketing. Costs for launching a single skincare product may range from a few thousand dollars to tens of thousands or more, depending on the quality and scale of the operation.

What are the challenges of entering the makeup business?

Some challenges of starting a makeup line include fierce competition in the cosmetics industry, high upfront costs for product development and manufacturing, stringent regulatory requirements for cosmetics labeling and safety testing, establishing brand credibility and consumer trust, securing retail distribution channels, and navigating market trends and shifts in consumer preferences.

Can a small makeup line compete in the cosmetic industry?

While the cosmetics industry is dominated by large established brands, small makeup lines can still compete by leveraging niche markets, focusing on product innovation and quality, building a strong brand identity and community engagement, utilizing digital marketing and social media channels to reach target audiences directly, offering personalized customer experiences, and cultivating strategic partnerships with retailers or influencers.

How can a new makeup business compete with established beauty brands?

Here’s a business startup checklist for makeup businesses that want to compete with larger brands:

  • Identify a unique niche or target market that is underserved by larger brands.
  • Emphasize product differentiation through innovative formulations, packaging, or branding.
  • Prioritize quality and customer satisfaction to build loyalty and word-of-mouth referrals.
  • Optimize digital marketing efforts to increase online visibility and engage with consumers directly.
  • Seek collaborations or partnerships with influencers, bloggers, or complementary brands to expand reach and credibility.

Can you start a makeup business solely online?

Yes, it is possible to start a makeup line solely as an online business. Launching a cosmetics brand online offers several advantages, including lower startup costs compared to establishing a physical retail presence, global reach and accessibility to a wider audience, flexibility in product offerings and marketing strategies, real-time customer feedback and analytics for informed decision-making, and the ability to scale and adapt quickly in response to market trends and consumer demand.

However, it’s essential to invest in a user-friendly e-commerce platform, effective digital marketing strategies, and exceptional customer service to succeed in the competitive online landscape.

Image: Envato Elements

sample business plan cosmetic line

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SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS.

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2020, SAMPLE BUSINESS PLAN BY AKAMPURIRA BRIAN

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’ 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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Cosmetics Manufacturing Business Plan Sample

APR.03, 2019

Cosmetics Manufacturing Business Plan Sample

Do you want to start cosmetics manufacturing business plan?

Are you interested in starting a cosmetics business? Well, if you have a mind that can think of ways to manufacture cosmetics to enhance the beauty without altering functioning and structure of human skin, and the knowledge required to implement your ideas, you have probably chosen the right job.

Professional business planning is the basis of a business, so you have to mention in your cosmetics business plan  manufacturing techniques you will be applying, the products that you will provide and a thorough marketing and financial plan. For your help, we are providing a sample business plan of a cosmetic business startup, named, ‘Elegance’.

Executive Summary

2.1 the business.

Elegance will be a licensed and insured cosmetics manufacturing company owned by Angela Jackson. The business will be based in New Jersey. The business will be providing high quality and natural makeup items, beauty products and other skin care products by using organic material and optimal techniques.

This sample cosmetics manufacturing business plan will help you in exploring the details of how the Elegance will be started. If you have decided to make just one cosmetic item in the beginning, such as if you are only looking for a lipstick business plan , you can still take help from here.

2.2 Management

Management is an important part of natural skin care business plan , it basically comprises of the scheme you will follow to run your business. To ensure that you are using natural and organic materials to help others in restoring their beauty you must have an excellent management system, in which you will be taking care of every detail. To regulate all the operations from buying the ingredients, to operate the machinery and selling the products, Angela will be hiring a team, of course, with an efficient manager to help her in supervising the operations.

This sample cosmetics business plan   contains the analysis and management on a wider scale and can be used accordingly if you are starting your business at a smaller scale.

2.3 Customers

Our major customers will be the female community, as it is mostly them who are conscious about enhancing and maintaining their beauty. But, instead of just individual buyers, we will have our potential buyers in the form of beauty salons and professional makeup artists.

2.4 Business Target

Our target is to get familiar to our target customers within a month or a two of our launch through the sales of our natural and quality products. To be the best and trusted cosmetic brand in New Jersey and to earn a profit margin of $10k per month by the end of the first month of our launch.

Our business targets to be achieved within the next three years are as follows:

3 Years Profit Forecast - cosmetics business plan

Company Summary

3.1 company owner.

Angela Jackson, the owner of the Elegance is a certified cosmetic chemist with an MS degree in Cosmetic Chemistry from the University of Cincinnati. Angela is a skillful woman; she has one-year experience of working in a cosmetics manufacturing company. The unique ideas Angela will present and implement through her company are elaborated in this cosmetics business plan.

3.2 Why the Business is being started

Cosmetics and makeup are not just a product for Angela, it is her passion. Her mother was a professional makeup artist which created a sense of makeup items in her since her childhood. She acquired her degree and experience in this domain, so now when she knows all about how to start a cosmetic manufacturing company , she has decided to opt for it.

3.3 How the Business will be started

A brief sample of the startup plan of the Elegance as written in their business plan for beauty products is given here free of cost, for anyone who needs guidance in making his/her makeup business plan .

A facility will be hired in New Jersey which previously was an area for a small pharmaceutical company. Due to the fact that it was an area to test medicines, we’ll not have much to do for converting it to our required laboratory structure. Required machinery and equipment will be bought and the employees will be hired to start the work and manufacture some products to display in the inaugural ceremony of the company.

The financial experts have forecasted following costs for expenses, assets, and investment, for the start-up.

cosmetics business plan - startup cost

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

The Elegance will be a makeup manufacturing brand, consisting of the manufacturing laboratories as well as a large store to sell its products. So, the business plan for cosmetics company , which we are providing here can be used as a guide for cosmetic store business plan  as well as to write your handmade cosmetics business plan .

Our company will manufacture and sell the following products:

  • Cleansing Products: This will include the products to remove dirt, oil, and makeup from the skin and will include cleansing oils, cleansing milk, toners, moisturizers, facial masks, shampoo, and face wash.
  • Decorative Cosmetics: This will include the decorative beauty products that are used to change the appearance by applying some color and will include lipsticks, lip gloss, foundation, face powder, blusher, eyeliner, eyeshades, mascara, eyelashes, nail polishes, and nail enamel remover.
  • Care Cosmetics: These are the products which are made to cure acne or fairness problems. We’ll manufacture sunscreens, acne wash, and acne creams by using organic compounds and vitamins.
  • Makeup Brushes: This will comprise of different makeup brushes used for applying foundation, eyeshade, bronzer, blush, and special lip brush. Although we’ll not be manufacturing brushes in the initial stages of our startup, however, Angela thought it should be included in the cosmetics business plan products shop for completeness.

All our products will be made under highly supervised conditions, we’ll ensure the best quality and natural effects by using organic compounds, minerals, and vitamins in our products. None of our product will contain any type of chemical or ingredient that may harm the skin.

Marketing Analysis of cosmetics manufacturing business

After have decided your services and enlisting them in your makeup line business plan , the next step is to do marketing analysis. Market analysis must be done accurately in ones cosmetic retail business plan , with a focus on market trends and segments.

If you are looking for a cosmetics business plan  or if you are just interested in hair product business plan , you can take help from here. You can also look for mac cosmetics business plan available on the web to get an idea about what you should write. Even if you think that you can do this work by researching on your own, you should not rely totally on your knowledge, this important task must be done by or at least get revised by an expert.

5.1 Market Trends

The cosmetic industry is one of those businesses which are not affected by economic downfalls or unpredictable incomes as every woman and some men use some type of cosmetic to maintain a healthy and fresh look. The demand for this business in the market can be seen by its annual growth rate which according to IBISWorld is 3.2%. There are currently more than 4000 cosmetic manufacturing businesses in the United States. Collectively the revenue generated by these businesses in 2018, is $52 billion. The business still has a lot be potential and can prove immensely profitable if you run it successfully.

5.2 Marketing Segmentation

Our experts have identified the following type of target audience which can become our future consumers:

Marketing Segmentation - cosmetics business plan

5.2.1 Individual Buyers: Our first target group will comprise of the individual buyers especially women, who will surely test the quality of our products. And after trying once, we are sure that they will use our products for the rest of their lives. To introduce our products to this group, we’ll use different advertisement techniques discussed later.

5.2.2 Beauty Salons: Our second target group comprises of the salons which are open, place to place in New Jersey. As beauty salons require cosmetics in bulk almost every week. So, we have decided to offer discounts to them for them to be our potential consumer.

5.2.3 Professional Makeup Artists: The third group comprises of the artists who perform makeup services in film industries and other places.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim at becoming renown and the most trusted cosmetic manufacturer in whole New Jersey. Our other business targets are:

  • To achieve the net profit margin of $10k per month by the end of the first year
  • To expand our business and supply to other cities

5.4 Product Pricing

We have priced our items in relatively lower ranges to attract our target customers and generate more sales.

There are several well established and famous cosmetic brands in the whole United States, so in order to introduce yourself to your target market, you must have an effective skin care marketing plan . In your beauty product marketing plan , you have to demonstrate why people should choose you over your competitors.

6.1 Competitive Analysis

Our biggest competitive advantage lies in the quality of our products and our expert and experienced team. We’ll be having biochemists in our laboratories to ensure that the products we are manufacturing are suitable for every type of skin. Secondly, we will be having low prices in the initial stages of our startup so that people can know about our services. Our eye-catching display and attracting store in the middle of the commercial zone will also be an advantage for us. Lastly, our effective advertisement strategy will also be helping us to promote our products.

6.2 Sales Strategy

No matter what quality you provide, the people can never know about you if your marketing plan cosmetic product is not appealing and attractive for them.

The Elegance has got this important part of marketing plan cosmetics done by a marketing expert, given here as well for your help.

  • We will ensure a strong social media presence and an effective website to display our process.
  • We will advertise our cosmetic business in relevant business magazines, newspapers, TV stations, and social media.
  • We will offer a 10% discount on our products for the first month of our launch.
  • We will gift one item from a list of displayed items as selected by our customers on the inauguration day.
  • We will be offering a 20% discount to salons when they buy our products in massive amount.

6.3 Sales Forecast

Our expected sales forecast is as follows:

Unit Sales - cosmetics business plan

6.4 Sales Monthly

Sales Monthly - cosmetics business plan

6.5 Sales Yearly

Sales Yearly - cosmetics business plan

Personnel plan

To run your business in a way you actually have decided in your cosmetics business plan , you need a team which is dedicated and committed to their work responsibilities.

That’s why it is very important to list the requirements of the staff for your company in your skin care business plan  so that you will be clear about the skills you will be looking into the people while hiring them.

7.1 Company Staff

Angela will supervise the manufacturing section by herself, sidewise she’ll hire the following staff:

  • 1 General Manager for managing overall operations of the company
  • 1 Accountant for maintaining financial records
  • 8 Production Workers for blending compounds and manufacturing cosmetics
  • 1 Biochemist for checking and testing the products
  • 2 General Workers for assisting in packaging the products
  • 2 Salesmen for operating the company’s store
  • 1 Technical Assistant for managing the company’s social sites and website
  • 3 Cleaners for cleaning the facility
  • 2 Sales Executives for marketing the company
  • 1 Driver for transporting goods

7.2 Average Salary of Employees

Financial plan.

A financial plan is a very important part of a business plan for cosmetic shop , as it covers all the expenses needed for your startup. In your beauty product business plan , you have to craft a map of the cost of equipment and machinery you will be buying for your business and the amount you will be spending on advertisement strategy. As financial plan envisage that how you will be able to balance the startup costs by profits earned thus it must be written carefully in your cosmetics business plan .

An effective business plan for hair care products and skin care products include the strategy to provide high quality at low prices in the early stages of business. Now, when you know the importance of getting introduced to people in the high competition, you will surely understand how important it is to keep prices low. So in your financial plan, you must also include the analysis of the gap between your investment and the money earned in the beginning. It is advised to get this task done by a financial expert, but a rough idea can be got by reading sample plans on the web like this one.

8.1 Important Assumptions

8.2 brake-even analysis.

Breke-even Analysis - cosmetics business plan

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - cosmetics business plan

8.3.2 Profit Yearly

Profit Yearly - cosmetics business plan

8.3.3 Gross Margin Monthly

Gross Margin Monthly - cosmetics business plan

8.3.4 Gross Margin Yearly

Gross Margin Yerly - cosmetics business plan

8.4 Projected Cash Flow

Projected Cash Flow - cosmetics business plan

8.5 Projected Balance Sheet

8.6 business ratios.

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ProfitableVenture

Cosmetics Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Beauty Supply Store

Are you about starting a cosmetic retail shop? If YES, here is a complete sample cosmetics store business plan template & feasibility report you can use for FREE .

The cosmetics business is a trade that requires little or no technical skills . It is part of the businesses whose skills you can pick – up very easily from books or from online video tutorials at no cost. As such, you can open a cosmetics store in your neighborhood.

Without a shadow of doubt, a cosmetics and beauty store business is indeed a profitable business because it is a fact that people all over the world make use of cosmetics, perfumes, toiletries and personal grooming products. The running cost for this type of business is pretty low and if you are able to secure a strategic high traffic location or a good shop in a shopping mall.

You can be rest assured to rake in good returns from your cosmetics and beauty store especially if it is well – stocked with cosmetics, perfumes, toiletries and personal grooming products from various manufacturers in the united states, France, Italy and other countries of the world.

A Sample Cosmetics Store Business Plan Template

1. industry overview.

A cosmetic, beauty and fragrance store is a retail outlet where different cosmetics, perfumes, toiletries and personal grooming products et al are sold. Businesses in this line of business include beauty supply stores, specialty cosmetics stores and fragrance stores et al

Starting a cosmetic, beauty and fragrance store is a very easy business to start and it is not so capital intensive- especially if you choose to start on a small scale in a small community. Getting the right brands that people want to buy and good stock keeping records are the secrets of running a retail business such as cosmetics, beauty and fragrance store.

In recent times, it has been observed that the Cosmetics, Beauty and Fragrance Stores industry shows a moderate level of market share concentration, with the leading brands (L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc.) accounting for over half of the available market share in the United States of America.

Industry concentration has increased in recent years due to rapidly increasing demand for specialty beauty retailers like Sephora and Ulta Salon , Cosmetics and Fragrances Inc. Going forward, the industry concentration is projected to continue increasing over the next five years as consumer-spending levels rise and people turn to well-known, trusted stores for their fragrance, beauty and cosmetics needs.

The Beauty, Cosmetics & Fragrance Stores Industry is a thriving sector of the economy of the United States, United Kingdom, France, Italy, Nigeria and Canada and in most countries of the world. Statistics has it that in the United States of America alone.

The Beauty, Cosmetics & Fragrance Stores Industry generates a whooping sum of well over $21 billion annually from more than 91,236 registered fast Beauty, Cosmetics & Fragrance Stores scattered all around the United States of America. The industry is responsible for the employment of well over 230,572 people.

Experts project the cosmetics industry to grow at a 4.7 percent annual rate. L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc. are the leaders in The Beauty, Cosmetics & Fragrance Stores Industry; they have the lion market share in the industry.

No doubt, expansive product selections and skilled employees have driven revenue for the Cosmetics, Beauty and Fragrance Stores industries.

So also with the increase in youth-targeted cosmetics, the expansion of male-specific products and of course the reformulation of anti – aging products have given specialty beauty stores a new collection of cosmetics, beauty and fragrance products to offer customers.

Going forward, per capita disposable income will continue to rise and the revenue generated from this industry will also enjoy positive growth. If you are contemplating to start your own cosmetics, beauty and fragrance store business in the United States, you should endeavor to carry out a thorough market survey and feasibility studies .

Despite the fact that this line of business is a thriving and profitable venture, if you get some key factors wrong before starting your own cosmetics, beauty and fragrance store business, then you are likely going to struggle to stay afloat.

But over and above, cosmetics, beauty and fragrance store business is a thriving and profitable business especially if you are creative and ready to take on the available market within the location where your business.

2. Executive Summary

Spotless Cosmetics, Beauty & Fragrance Stores is a standard and licensed cosmetics, beauty and fragrance store business that will be based in Carson City – Nevada, USA.

We have been able to secure a corner piece property (store facility) where we intend to launch our first cosmetics, beauty and fragrance store before venturing out to opening our store outlets cum franchise in strategic locations all around Nevada and key cities in the United State of America.

Our business goal as a standard and licensed cosmetics, beauty and fragrance store business is to become the number one choice of residence in the whole of the communities where we intend opening our stores.

We are set to retail a wide range of Hair care and shower products , cosmetics, skin care products, fragrances, nail care products, deodorant and shaving products, sun care, baby care and other related product set al from different manufacturers both from the United States of America and from other countries.

We have been able to secure permits from all relevant departments in the State of Nevada to run the business. Spotless Cosmetics, Beauty & Fragrance Stores is set to redefine how neighborhood based cosmetics, beauty and fragrance store business should be run, not just in Carson City – Nevada, but also in the whole of the United States of America.

This is why we have put plans in place for continuous training of all our store keepers and other back office staff members at regular interval. No doubt the demand for hair care and shower products, cosmetics, skin care products, fragrances, nail care products, deodorant and shaving products, sun care, baby care and other related products is not going to plummet any time soon.

Which is why we have put plans in place to continue to explore all available market around the communities where we intend opening our chains of stores. In the nearest future, we will ensure that we create a wide range of distribution channels via franchising. 

3. Our Products and Services

At Spotless Cosmetics, Beauty & Fragrance Stores we will be involved in retailing cosmetics, retailing perfumes, retailing toiletries, and retailing personal grooming products et al from different manufacturers both from the United States of America and from other countries.

Our intention to start Spotless Cosmetics, Beauty & Fragrance Stores is to maximize profit from the cosmetics, beauty and fragrance stores retailing industry and we will do all that is permitted by the law in the US to achieve our corporate aim and ambition. Here are the products that will be found in our stores;

  • Hair care and shower products
  • Skin care products
  • Nail care products
  • Deodorant and shaving products
  • Sun care, baby care and other products

4. Our Mission and Vision Statement

  • Our vision as a standard cosmetic, beauty and fragrance store business is to become the number one choice in the whole of Carson City and also to be amongst the top 2leading cosmetics, beauty and fragrance stores in the State of Nevada before our 5 th anniversary.
  • Our mission is to build a highly successful, profitable all round business; a cosmetic, beauty and fragrance store business that will grow from one store to chains of stores in different locations all around Nevada and other key cities in the United States of America.
  • We want to become a one stop cosmetics, beauty and fragrance shop.

Our Business Structure

We are aware that the success of any business depends on the foundation on which the business is built on, which is why we have decided to build our cosmetics, beauty and fragrance store business on the right business foundation.

As a matter of fact, we are set out to build a cosmetics, beauty and fragrance store business that will favorably compete with some of the leading brand in the industry such as L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc. in the United States of America and Canada.

We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied. In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve.

Which is why will be putting structures and standard operating processes in place that will help us meet our clients demand and run the business on autopilot. The success of our cosmetics, beauty and fragrance store business will be anchored on the team not on any individual.

With the nature of cosmetics, beauty and fragrance store business we intend running and the plan to open chains of stores in various locations all around Nevada and key cities in the US, we are only expected to employ more than it is required to run a conventional cosmetics, beauty and fragrance store business. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

  • Accountants / Cashiers
  • Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – Owner:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Store Manager:

  • Responsible for managing the daily activities in the store
  • Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
  • Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with third – party suppliers (vendors)
  • Controls goods distribution and supply inventory
  • Supervises the workforce in the cosmetics, beauty and fragrance store sales floor.
  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of cosmetics, beauty and fragrance products on our rack
  • Responsible for the purchase of goods and products for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.
  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Sales Girls and Sales Boys

  • Sells our cosmetics, beauty and fragrance products to our customers
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
  • Responsible for cleaning the store facility at all times
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the store facility
  • Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard cosmetics, beauty and fragrance store business, we were able to engage some of the finest business consultants in Carson City – Nevada to look through our business concept.

Together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard cosmetics, beauty and fragrance store business that can compete favorably with leading brand such as L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc. in the United States of America and Canada.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Carson City – Nevada and also in other cities that we intend opening our chains of stores. Here is a of what we got from the critically conducted SWOT Analysis Spotless Cosmetics, Beauty & Fragrance Stores;

Our location, the Business model we will be operating on (selling franchise and opening chains of stores in various locations), varieties of payment options, wide range of hair care and shower products, cosmetics, skin care products, fragrances, nail care products, deodorant and shaving products, sun care, baby care and other related products et al from different manufacturers both from the United States of America and from other countries.

Our excellent customer service culture will definitely count as a strong strength for Spotless Cosmetics, Beauty & Fragrance Stores.

A major weakness that may count against us is the fact that we are a new cosmetics, beauty and fragrance store outlet and we don’t have the financial capacity to compete with multi – million dollars cosmetics, beauty and fragrance stores like L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc. when it comes to retailing cosmetics products at a rock bottom prices.

  • Opportunities:

The fact that we are going to operate our cosmetics, beauty and fragrance store in one of the busiest streets in Carson City – Nevada provides us with unlimited opportunities to sell our cosmetic products to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our cosmetics, beauty and fragrance store; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cosmetics, beauty and fragrance store or even a supermarket that retails cosmetics in same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

Cosmetics, beauty and fragrance store cum retailing business has been in existence for as long as human started trading goods, which is why you can easily find mom and pop shops scattered all around world. In most cases, those people that you find running mom and pop business in a very small scale in a street corner may not have the education that would want them to aspire to run the business on a large scale.

Just like in any retailing business, it is common to find cosmetics, beauty and fragrance stores locating their business in a location with the right demographic composition and a place that is visible to their target market.

Lastly, it is a common trend to find cosmetics, beauty and fragrance stores that are determined to stay top if the game retail a wide range of hair care and shower products, cosmetics, skin care products, fragrances, nail care products, deodorant and shaving products, sun care, baby care and other related products et al from different manufacturers both from the United States of America and from other countries.

With that, they can be considered a one stop cosmetics, beauty and fragrance shop and if they retail in rock bottom prices, then they are going to stay atop for a long time.

8. Our Target Market

As a matter of fact, the cosmetics, beauty and fragrance stores industry has one of the widest ranges of customers; everybody on planet earth has one or more things that they would need from cosmetics, beauty and fragrance store- be it an adult or a kid.

It is difficult to find people around who don’t patronize cosmetics, beauty and fragrance stores. In view of that, we have positioned our cosmetics, beauty and fragrance store to service the residence of Carson City – Nevada and every other locations where we intend opening our chains of cosmetics, beauty and fragrance stores.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of cosmetics, beauty and fragrance products to the following groups of people;

  • Bachelors and Spinsters
  • Corporate Executives
  • Business People
  • About to wed couples
  • Expectant Mothers
  • Sports Men and Women

Our Competitive Advantage

A close study of the cosmetics, beauty and fragrance stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading cosmetics, beauty and fragrance stores in Carson City – Nevada and throughout the United States.

Spotless Cosmetics, Beauty & Fragrance Stores is launching a standard cosmetics, beauty and fragrance store that will indeed become the preferred choice of residence of Carson City – Nevada.

Our cosmetics, beauty and fragrance store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Carson City – Nevada. We have enough parking space that can accommodate well over 20 cars per time.

One thing is certain, we will ensure that we have a wide range of cosmetics, beauty and fragrance products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for.

One of our business goals is to make Spotless Cosmetics, Beauty & Fragrance Stores a one stop cosmetics, beauty and fragrance shop. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups cosmetics, beauty and fragrance stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Spotless Cosmetics, Beauty & Fragrance Stores is in business to retail a wide range of cosmetics, beauty and fragrance products to the residence of Carson City – Nevada. We are in the cosmetics, beauty and fragrance stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of cosmetics, beauty and fragrance products at affordable prices. We will retail products such as;

10. Sales Forecast

One thing is certain when it comes to cosmetics, beauty and fragrance stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Carson City – Nevada and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the cosmetics, beauty and fragrance stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Carson City – Nevada.

Below are the sales projection for Spotless Cosmetics, Beauty & Fragrance Stores, it is based on the location of our business and other factors as it relates to candy stores start – ups in the United States;

  • First Fiscal Year-: $240,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there wouldn’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Spotless Cosmetics, Beauty & Fragrance Stores, we undertook a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Carson City – Nevada.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time. We hired experts who have good understanding of the cosmetics, beauty and fragrance stores industry to help us develop

In other to continue to be in business and grow, we must continue to sell the cosmetics, beauty and fragrance products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Spotless Cosmetics, Beauty & Fragrance Stores will adopt the following sales and marketing approach to win customers over;

  • Open our cosmetics, beauty and fragrance store in a grand style with a party for all.
  • Introduce our store by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Carson City – Nevada
  • Ensure that we have a wide range of cosmetics, beauty and fragrance from different brands at all times.
  • Make use of attractive handbills to create awareness and also to give direction to our cosmetics, beauty and fragrance store
  • Position our signage / flexi banners at strategic places around Carson City – Nevada
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our cosmetics, beauty and fragrance store.

11. Publicity and Advertising Strategy

Despite the fact that our cosmetics, beauty and fragrance store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our business.

Spotless Cosmetics, Beauty & Fragrance Stores has a long term plan of opening chains of stores in various locations all around Nevada and key cities in the United States which is why we will deliberately build our brand to be well accepted in Carson City before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mama Jay Candy Stores;

  • Place adverts on community based newspapers, radio stations and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Carson City – Nevada
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Spotless Cosmetics, Beauty & Fragrance Stores and the products we sell
  • Advertise our cosmetics, beauty and fragrance store business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to retail business like cosmetics, beauty and fragrance stores, it is normal for consumers to go to places (retail outlets) where they can get cosmetics, beauty and fragrance products at cheaper price.

Which is why big player in the cosmetics, beauty and fragrance stores industry like L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc et al will attract loads of consumers. Products in their stores are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with L Brands, Sephora, Sally Beauty Holdings Inc. and Ulta Salon, Cosmetics and Fragrances Inc. but we will ensure that the prices of all the cosmetics, beauty and fragrance products that are available in our store are competitive with what is obtainable amongst cosmetics, beauty and fragrance stores within our level.

  • Payment Options

The payment policy adopted by Spotless Cosmetics, Beauty & Fragrance Stores is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Spotless Cosmetics, Beauty & Fragrance Stores will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via POS
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of products from our stores.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a cosmetics, beauty and fragrance store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Spotless Cosmetics, Beauty & Fragrance Stores in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $53,300.
  • Cost for Shop remodeling (construction of racks and shelves) – $5,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (a wide range of hair care and shower products, cosmetics, skin care products, fragrances, nail care products, deodorant and shaving products, sun care, baby care and other related products et al from different manufacturers both from the United States of America and from other countries.) – $75,000
  • Storage hardware (bins, rack, shelves, food case) – $3,720
  • Cost for store equipment (cash register, security, ventilation, signage) – $3,750
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $600
  • The cost for our opening party: $3,000
  • Miscellaneous: $10,000

We would need an estimate of $350,000 to successfully set up our cosmetics, beauty and fragrance store in Carson City – Nevada. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Spotless Cosmetics, Beauty & Fragrance Stores

Spotless Cosmetics, Beauty & Fragrance Stores is a family business that is solely owned and financed by Mrs. Peace Osteen and her immediate family members. We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Spotless Cosmetics, Beauty & Fragrance Stores is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Spotless Cosmetics, Beauty & Fragrance Stores will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check : Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the shop: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products that will be available in our store: Completed
  • Establishing business relationship with vendors – suppliers of cosmetics, beauty and fragrance products: In Progress

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COMMENTS

  1. Cosmetic Business Plan Template (2024)

    Below is a a sample cosmetic business plan to help you create your own cosmetic company business plan. Executive Summary Business Overview Guilt-Free Glow is a cosmetics shop located in Spokane, Washington. The company's mission is to provide customers with high-quality, cruelty-free cosmetics.

  2. Cosmetic Business Plan Template & How-To Guide [Updated 2024]

    Executive Summary Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cosmetic business you are running and the status.

  3. How to Write a Beauty Products Business Plan

    Step 1: Why your beauty business needs a plan Why you need a business plan - Step 1: How to write a Beauty Products Business Plan Watch on The first step is to set yourself a challenge: ask yourself why you are writing a business plan in the first place. There is no point in going through the motions of writing a beauty product business plan.

  4. Cosmetics Manufacturing Business Plan Example

    Solution Bluespa is a multi-channel concept, combining a wholesale distribution network with a retail strategy, e-commerce, and a consumer catalogue. The face of retailing is changing. Market Bluespa will occupy a unique market position. No other brand offers a specialty line that includes skin care, cosmetics, fitness apparel and accessories.

  5. Cosmetic Line Business Plan [Sample Template]

    A Sample Cosmetic Line Business Plan Template 1. Industry Overview Cosmetic and beauty products manufacturers basically prepare, blend, compound and package beauty products and cosmetics for their clients. Cosmetic and beauty products included in this industry are perfumes, makeup items, hair preparations, face creams, lotions and other toiletries.

  6. The #1 Cosmetic Business Plan Template & Guidebook

    1. Describe the Purpose of Your Cosmetic Business. The first step to writing your business plan is to describe the purpose of your cosmetic business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.

  7. How to Make a Good Cosmetics Business Plan

    Step 1: Conduct Market Research The first step to starting a cosmetics business is conducting market research. To get the best from market research, you have to consider the overall market size and trends, consumer preferences, and look out for businesses that can be close competitors. Let's explore these in more detail.

  8. How to write a business plan for a cosmetic brand?

    Recognize and address the potential risks you may encounter along the way. The profit and loss (P&L) statement, The projected balance sheet, The cash flow forecast, And the sources and uses table. Sales growing at (minimum) or above (better) inflation. Stable (minimum) or expanding (better) profit margins.

  9. Cosmetics Business Plans

    Check out our selection of sample business plans if you want to explore launching your own cosmetics business. If you're looking to develop a more modern business plan, we recommend you try LivePlan. It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

  10. Essentials of a Cosmetics Business Plan: How to Write One

    Cosmetics Business Plan; Know the Competition. The next important step of developing your cosmetic business plan is to identify your competitors. The cosmetic industry is ripping fortunes. Hence it makes sense to know the movers and shakers within your chosen product niche. The idea is to know everything about them. Yes, everything about them.

  11. How To Write A Winning Skin Care Business Plan + Template

    The executive summary of a skin care business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your skin care company. Provide a summary of the key points in each section of your business ...

  12. Skin Care Business Plan: Guide & Template (2024)

    Beauty Salon & Fitness Skin Care Business Plan Are you thinking of starting a skincare business We have prepared a solid Skincare business plan sample that guides you on every stage of your business plan writing Download Template Create a Business Plan People are increasingly opting for a healthier and better lifestyle these days.

  13. Cosmetic Business Plan Template [Updated 2024]

    The following Cosmetic business plan template gives you the key elements to include in a winning Cosmetic business plan. You can download our business plan template (including a full, customizable financial model) to your computer here. Below are links to each of the key sections of an example Cosmetics business plan.

  14. Sample Cosmetics Retail Store Business Plan

    The business plan above is a business plan sample for the cosmetics company, a Perfection cosmetics company. The company will be situated in Los Angeles. Also, the funds that are needed to start and run this company will be gotten from personal savings as well as from the bank. COSMETIC LINE BUSINESS PLAN EXAMPLE. Executive Summary

  15. Crafting a Winning Cosmetics Business Plan: 9 Essential Steps!

    If you're thinking of starting a cosmetics manufacturing business, it's essential to have a solid business plan in place to succeed in this competitive industry. In this blog post, we'll guide you through the nine steps to create a comprehensive business plan for your cosmetics manufacturing business. Step 1: Conduct market research.

  16. Skin Care Business Plan Template [Updated 2024]

    Give a brief overview of the skin care industry. Discuss the type of skin care business you are operating. Detail your direct competitors. Give an overview of your target customers.

  17. Skincare Product Business Plan [Sample Template]

    The cost for insurance ( general liability, workers' compensation and property casualty) coverage at a total premium - $2,400. The cost for payment of rent for 12months at $1.76 per square feet in the total amount of $105,600. The cost for construction of a standard cosmeceutical skin care production plant - $100,000.

  18. How to Start a Makeup Line

    Initial Steps to Starting a Makeup Line Developing a Business Plan for Your Makeup Line. Creating a business plan for a makeup line is one of the essential building blocks for new businesses to succeed. It involves several key components that lay the groundwork for your business's structure, strategy, and financial planning.

  19. SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS.

    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.

  20. Makeup Line Business Plan [Sample Template]

    Below is a sample makeup line production company business plan that will help you successfully launch your own business; A Sample Makeup Line Business Plan Template 1. Industry Overview Cosmetic and beauty products manufacturers basically prepare, blend, compound and package beauty products and cosmetics for their clients.

  21. Cosmetics Manufacturing Business Plan Sample

    2.1 The Business. Elegance will be a licensed and insured cosmetics manufacturing company owned by Angela Jackson. The business will be based in New Jersey. The business will be providing high quality and natural makeup items, beauty products and other skin care products by using organic material and optimal techniques.

  22. Free Cosmetics Manufacturing Business Plan Template + Example

    Download a free cosmetics manufacturing business plan template with SBA-approved format. Includes pre-filled examples and step-by-step guides for a successful start.

  23. Cosmetics Manufacturing Business Plan [Sample Template]

    A Sample Cosmetics Manufacturing Business Plan Template. 1. Industry Overview. Cosmetic and beauty products manufacturers basically prepare, blend, compound and package beauty products and cosmetics for their clients. Cosmetic and beauty products included in this industry are perfumes, makeup items, hair preparations, face creams, lotions and ...

  24. Cosmetics Store Business Plan [Sample Template]

    A Sample Cosmetics Store Business Plan Template. 1. Industry Overview. A cosmetic, beauty and fragrance store is a retail outlet where different cosmetics, perfumes, toiletries and personal grooming products et al are sold. Businesses in this line of business include beauty supply stores, specialty cosmetics stores and fragrance stores et al.