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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

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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!

cosmetics business plan sample

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.

cosmetics business plan sample

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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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.

Leave us a comment

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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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?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The Business Plan Shop's Business Plan Templates

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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  • 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.

Cosmopacks offers amazing, highly customizable bottle packaging for brands worldwide. Their objective is to find the best way to reflect your brand’s identity by creating tailored packaging options and eco-friendly packaging. 

Get in touch with us by visiting our website or reaching out to us through our various helpline channels. 

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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

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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.  

Finish Your Skin Care Business Plan in 1 Day!

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Top 10 Cosmetic Industry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Top 10 Cosmetic Industry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Samradni Pradhan

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Welcome to the glamorous universe of cosmetics, where even the brightest stars have used their business sense to shine. Celebrities like Rihanna with Fenty Beauty, Kylie Jenner's Kylie Cosmetics, and Selena Gomez's Rare Beauty have conquered the industry with their beauty empires. But what's often overlooked is that beneath the celebrity status, they, too, required a well-crafted business plan template to succeed. In this world of fierce competition, their stories testify that a well-thought-out strategy is the true beauty secret behind their flourishing cosmetic empires.

For all those out there who are aiming to join the list of top cosmetic brands, we have something inspiring coming up! 

Enter Cosmetic Industry Business Plan Template!

We're talking about a roadmap that goes beyond contouring and takes you through market trends, financial forecasts, and everything in between. Whether you dream of launching the next iconic lipstick shade or revolutionizing skincare routines, this template is your canvas. It's where your flair for cosmetics meets smart business strategy .

Get ready to learn how to create a Cosmetic Business Plan!

Table of Contents

  • Executive Summary
  • Company Overview
  • Industry Analysis
  • Customer Analysis
  • Competitor Analysis
  • SWOT Analysis
  • Porter’s Framework
  • Operational Plan
  • Financial Plan

Note: Before we delve into the details of this business plan, note that this template comprises 61 detailed business pages. Each of these business pages is customizable as per the needs of the business. Every page in this package has been systematically crafted to keep in mind your business requirements. The design elements are professional and appealing; your job is half done with just the inclusion of these slides. This blog will cover the top 10 pages within this deck in depth. You will get the 61-Page Doc, PDF, and XLS files on downloading.

1. Executive Summary

An Executive Summary is a concise yet powerful component that encapsulates your brand's essence, market potential, and strategic vision. Investors will be captivated by the brief overview of your cosmetics venture, from innovative product lines to unique selling propositions.

It ignites interest and showcases your business acumen. Elevate your business plan with a dynamic Executive Summary that leaves stakeholders eager to delve deeper into your cosmetic empire's intricacies. Open the door to a world of beauty and profitability.

In our Executive Summary section, you will get templates for:

1.1 The Quick Pitch- Concise pointers to highlight your business offerings.

1.2 The Entity- Investor-friendly information about your company profile.

Executive Summary

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Healthy Skincare Cosmetic Business Plan

2. Company Overview

Company Overview unveils the heart of your brand – its history, mission, and values. Provide the narrative of your cosmetics venture, highlighting the innovation, quality, and customer-centricity that sets you apart. From breakthrough formulations to ethical practices, showcase the tapestry of your brand's identity. Elevate your business plan by presenting a holistic view that assures stakeholders of your cosmetic brand's resonance and readiness to conquer the market.

In our Company Overview section, you will get templates for:

2.1 Vision and Mission: Craft a compelling mission and vision statement that encapsulates the essence of your cosmetic brand.

2.2 Company Goals and Objectives: Clearly define the goals and objectives you aim to achieve through this strategic plan.

2.3 Start-up Summary: Present a concise yet informative summary that provides an overview of your cosmetic business.

2.4 Market Gap and Business Statement: Identify and emphasize market gaps while establishing a compelling business statement that defines your unique position within the cosmetic industry.

2.5 Products Offered: Showcase your range of cosmetic products, detailing their features and benefits.

2.6 Key Success Factors: Outline the critical success factors that will serve as benchmarks for evaluating the effectiveness of your business plan, ensuring a strategic and comprehensive approach to your cosmetic venture.

Company Overview

3. Industry Analysis

With Industry Analysis, dive deep into the dynamic cosmetics landscape, unveiling market trends, consumer preferences, and competitive dynamics. Display your profound understanding of this ever-evolving sector, showcasing your brand's adaptability and strategic insight. From emerging clean beauty trends to digital marketing shifts, highlight how your cosmetic venture seizes opportunities. It's a roadmap for market dominance.

In our Industry Analysis section, you will get templates for:

3.1 Market Analysis: Dive deep into a comprehensive analysis of the cosmetic industry market, examining its dynamics and trends.

3.2 Market Trends: Illuminate the prevailing market trends and emerging factors shaping the industry landscape.

3.3 Major Challenges: Identify and list the key challenges from a business perspective, helping you devise effective strategies to address them.

3.4 Growth Drivers: Highlight the pivotal growth drivers that will propel your beauty business forward in this dynamic industry.

3.5 Geographical Analysis: Conduct a thorough geographical analysis to gain a well-rounded understanding of your business's regional impacts and opportunities.

Industry Analysis

4. Customer Analysis

With Customer Analysis page, showcase the consumer behavior, preferences, and trends, unlocking the secrets to capturing hearts and markets. Investors will be captivated by your nuanced understanding, revealing how your cosmetics brand aligns perfectly with diverse customer aspirations. From eco-conscious millennials to skincare aficionados, highlight how your brand meets their desires.

This isn't just demographics; it's the art of creating loyal brand advocates. Elevate your business plan with a customer-centric approach that assures stakeholders of your cosmetic brand's magnetic appeal and readiness to dominate the market.

In our Customer Analysis section, we offer comprehensive templates for:

4.1 Target Market: This section provides an insightful overview of your intended target market.

4.2 Buyer Persona: Here, we guide you through the process of crafting a detailed buyer persona that represents your ideal consumer.

4.3 Market Sizing: We assist you in estimating and conducting a thorough analysis of the size of your target market, offering valuable insights for your business strategy.

Customer Analysis

5. Competitor Analysis

Enter the competitive arena with our Competitor Analysis page, a critical element within your cosmetic industry business plan. Here, we dissect rivals, exposing their strengths, weaknesses, and market positions. Investors will be enthralled by your strategic insight, revealing how your cosmetics brand competes and excels in this dynamic landscape. From innovative product differentiators to nimble marketing tactics, showcase your brand's advantage.

In our Competitor Analysis section, we provide templates for:

5.1 Major Players – Brief overview of your immediate beauty competitors

5.2 Attributes Comparison   –  Comparing your offerings against other beauty competitors

Major Players with Attributes Comparison

6. SWOT Analysis

Meticulously scrutinize your brand's Strengths, like innovative formulations and a loyal customer base, to leverage and amplify your market presence. Identify Weaknesses such as supply chain vulnerabilities or packaging concerns, developing strategies to fortify these areas. Explore the vast Opportunities within the beauty sector, from emerging wellness trends to global expansion, to maximize your growth potential.

Lastly, confront Threats like evolving regulations or competitive pressures head-on, fortifying your market resilience. Elevate your business plan with this beauty-focused SWOT analysis, ensuring your cosmetics brand emerges as a formidable industry player.

SWOT Analysis

7. Porter's Framework

Porter’s Framework helps in dissecting the industry's competitive forces, empowering your cosmetics business to thrive. Highlight your strategic prowess in understanding supplier power, buyer influence, and the threat of new entrants, enabling you to make informed decisions.

Dive deep into the dynamics of substitute products and rivalry among existing competitors, crafting a blueprint for market domination. This isn't just analysis; it's a strategic compass altered to the unique challenges and opportunities within the beauty and cosmetic sector.

Porter's Framework

8. Marketing Plan

This section unveils the art and science of promoting beauty and skincare products. Impress the investors with your innovative marketing strategies, tailored precisely to captivate beauty-conscious consumers. From leveraging influencers for authentic endorsements to crafting captivating product launches, showcase your brand's ability to seize attention, skincare market share, and growth statistics .

It's a beauty-enhancing strategy that ensures your cosmetic brand shines amidst fierce competition.

In our Marketing Plan section, we provide templates for:

8.1 Sales Strategy: Strategically plan your sales approach tailored to your cosmetic business's unique needs and goals.

8.2 Promotional Strategy: Articulate a comprehensive outline of your promotional efforts, ensuring a well-coordinated marketing strategy.

8.3 Pricing Strategy: Present detailed pricing information and strategies for your cosmetic brand and its products.

8.4 Sales Funnel: Clearly delineate the stages of your sales funnel, providing a roadmap for targeted marketing efforts to maximize conversions and customer engagement.

Marketing Plan

9. Operational Plan

Here, we unravel the intricacies of product development, supply chain management, and quality assurance specifically tailored to meet the high standards of the beauty and cosmetic sector. Showcasing how your brand ensures premium product quality, ethical sourcing, and efficient distribution.

From selecting top-grade ingredients to implementing sustainable packaging practices, highlight how your operations align with industry trends and consumer expectations.

In our Operational Plan section, we provide templates for:

9.1 Retail Selling Plan- Outline your plan of action for selling products in the retail setting

9.2 E-commerce Selling Plan- Elaborate on your digital spending plan

9.3 Milestones- Highlight all of your operational milestones

Operational Plan

10. Financial Plan

Dive into meticulous fiscal projections driven by your passion and expertise. Present your financial strategy, showcasing profitability, sustainability, and growth potential. From budget allocation for product development to marketing spend, highlight your prudent financial management.

This isn't just numbers; it's the heartbeat of your cosmetic brand's financial future. Elevate your business plan with a compelling narrative that instills trust in stakeholders. Illuminate the path to fiscal prosperity, assuring investors of your brand's sound financial footing and its exciting journey toward cosmetic industry success.

10.1 Financial Assumptions  -   In-depth basis for financial projections in your cosmetic industry business.

10.2 Revenue Model and Sales Forecast -   An all-encompassing blueprint illustrating revenue origins and sales expectations for the growth of your cosmetic brand.

10.3 Break-Even Analysis –   Assessing and analyzing the parameters that will lead to break-even success for your cosmetic business  

10.4 Projected Profit and Loss Account -   Financial report outlining estimated revenues, expenses, and net profit and loss statement.

10.5 Projected Cash Flow Statement -  Presentation of anticipated cash movement, managing liquid finances for your cosmetic industry business.

10.6 Projected Balance Sheet -   Financial overview detailing projected assets, liabilities, and shareholders' equity.

10.7 Scenario Analysis -   To gauge the financial repercussions of business conditions and potential risks, evaluate scenarios.

10.8 DCF Valuation -   Analysis using discounted cash flows to ascertain the current value of your cosmetic business.

Financial Plan

There’s more to it!

It rarely happens that with just one download click, you can get access to multiple things. But that is the case with this business plan template. This fantastic resource is perfect for anyone who is starting a new cosmetic industry business or altering the current business plan. The entire plan is available for download in a PDF, Word Doc format for easy adaptability. So take the first step and access the business plan ppt of your dream. Download now!

FAQs on Natural Cosmetic Industry Business Plan

1) what is a cosmetic business plan.

A cosmetic business plan document outlines a company's strategies, goals, and operations. The document includes:

  • Company overview is the first section describing the business's vision, purpose, objectives, and mission.
  • The second section is Industry analysis, which analyzes trends, opportunities, market size, and industry challenges.
  • Next comes the product description, which details the cosmetic business's products and services. It will also include all the benefits, features, and competitive advantages.
  • The last section is the marketing plan outlining the cosmetic business's pricing, customer segments, target market, promotion, distribution, and branding strategies.

2) How do I write a cosmetic business plan?

To write a successful business plan for a cosmetic business,

  • The first thing is to describe the purpose of the business. 
  • Make a list of services and products that are going to be offered by the cosmetic business.
  • Make a creative marketing strategy.
  • There needs to be an operational plan. 
  • Include the description of the organization and management of the cosmetic business.
  • Determine the cost in terms of expenses and capital that will be required.
  • Work on creating a financial projection and plan.
  • Last comes the executive summary, which will introduce the business plan. In the company overview section, the type of cosmetic business is explained.

3) How can I start a Cosmetic business?

In starting a cosmetic business, the first step is to choose a cosmetic product that will be developed. After selecting the product comes market research. Market research plays an important role in knowing about the product's demand and performance. It is also important to research the local laws and federal regulations extensively. Once the initial steps have been taken care of, decide on the business name. Create a business plan in the beginning to get funding for the business. Once the funding has been taken care of, start the development of the product. The next step in starting a cosmetic business will be deciding on a niche and the location of the cosmetic business. The business should also have a logo or a sign which will make it unique.

4) How much does it cost to start a cosmetic business?

The cost of starting a cosmetic business depends on many factors because funds are required for everything, i.e., product development, initial inventory, testing, etc. The business will need a lot of money in research and development If it is looking to create unique formulas. Then, the business will need some funds for safety assessments, regulatory compliance, and legal requirements. Then comes the cost of packaging and branding. Renting a store and an e-commerce platform will add to the cost. Advertising and marketing expenses can't be ignored. Then there are the salaries, insurance, and utilities costs. So, after combining all the costs, a cosmetic business can range from a few thousand to several hundred dollars.

5) What is the profit margin in cosmetics?

The profit margin of the cosmetic business can vary significantly because of the different factors involved. The brands that have strong customer base has high profit margins like 60% to 70%. At the same time, newer cosmetic brands have lower margins because of marketing costs and higher production. Distribution channels, product pricing, and manufacturing methods also affect profit margins. Mass-market products have lower margins than luxury cosmetics, which have higher margins. While the potential for healthy profits is quite high in cosmetics, changing customer trends and competition can affect the margins considerably. To have a growing profit margin is difficult to maintain because the cosmetic market is competitive and innovative.

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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.

Download Cosmetics Manufacturing Business Plan Sample in pdf

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cosmetics business plan sample

Pls I need a sewing business plan

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This is the best article i have ever red

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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.

Finish Your Skin Care Business Plan in 1 Day!

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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.

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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 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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Cosmetic Business Marketing Plan Template

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In the fast-paced world of cosmetics, standing out from the competition is crucial. To make your mark in the beauty industry, you need a solid marketing plan that sets you apart and drives results. That's where ClickUp's Cosmetic Business Marketing Plan Template comes in!

With this template, you can:

  • Conduct in-depth market research to understand your target audience and their preferences
  • Set clear and measurable marketing objectives that align with your business goals
  • Choose the most effective marketing channels to reach your target customers
  • Implement advertising and promotional strategies that capture attention and drive sales
  • Analyze the results of your marketing efforts to make data-driven decisions and optimize your strategy

Take your cosmetic business to the next level with ClickUp's comprehensive Marketing Plan Template. Start creating a buzz and boosting your sales today!

Benefits of Cosmetic Business Marketing Plan Template

When using the Cosmetic Business Marketing Plan Template, you can enjoy the following benefits:

  • Streamlining your marketing efforts by having a clear roadmap and strategy in place
  • Maximizing your brand's visibility and awareness in the highly competitive beauty industry
  • Attracting and retaining your target customers by tailoring your marketing activities to their preferences and needs
  • Increasing sales and revenue by implementing effective advertising and promotional strategies
  • Monitoring and analyzing the results of your marketing efforts to make data-driven decisions and optimize your campaigns for even better results.

Main Elements of Cosmetic Business Marketing Plan Template

ClickUp's Cosmetic Business Marketing Plan template offers a comprehensive solution for managing your marketing strategies effectively. Here are the main elements of this List template:

  • Custom Statuses: Track the progress of your marketing plan with 6 different statuses, including Cancelled, Complete, In Progress, Needs Input, Planned, and To Do.
  • Custom Fields: Utilize 6 custom fields, such as Quarter, Task Type, Impact, Progress, Percent Completion, and Effort, to add specific details to each task and measure the success of your marketing efforts.
  • Custom Views: Access 5 different views, including Key Results, Timeline, Getting Started Guide, Objectives, and Progress Board, to visualize your marketing plan from different perspectives and ensure alignment with your business goals.
  • Collaboration Tools: Collaborate seamlessly with your team using ClickUp's robust features, including task assignments, comments, attachments, and real-time updates.
  • Integration: Integrate with other tools and platforms to streamline your marketing operations and enhance productivity.

How to Use Marketing Plan for Cosmetic Business

If you're starting a cosmetic business and want to create an effective marketing plan, follow these six steps using the Cosmetic Business Marketing Plan Template in ClickUp:

1. Define your target audience

Identify the specific group of people who are most likely to be interested in your cosmetics. Consider factors such as age, gender, location, and lifestyle. Understanding your target audience will help you tailor your marketing efforts to reach the right people.

Use the Custom Fields feature in ClickUp to create fields for different audience segments and track their preferences.

2. Analyze the competition

Research other cosmetic brands in the market and analyze their marketing strategies. Look at their social media presence, website, and advertising campaigns. Identify what sets your products apart and how you can position your brand to stand out from the competition.

Use the Table View in ClickUp to create a comparison chart of your competitors' marketing strategies.

3. Set marketing goals

Determine what you want to achieve with your marketing efforts. Do you want to increase brand awareness, drive online sales, or expand into new markets? Setting clear goals will help you measure the success of your marketing campaigns and stay focused on your objectives.

Use the Goals feature in ClickUp to set specific and measurable marketing goals for your cosmetic business.

4. Develop marketing strategies

Based on your target audience and competition analysis, develop marketing strategies that align with your goals. Consider using social media marketing, influencer collaborations, content creation, email marketing, and paid advertising to reach your target audience effectively.

Use the Board View in ClickUp to create cards for each marketing strategy and move them through different stages of implementation.

5. Create a content calendar

Plan and schedule your marketing activities using a content calendar. This will help you stay organized, ensure consistency in your messaging, and optimize your marketing efforts. Include social media posts, blog articles, email newsletters, and any other content you plan to create.

Use the Calendar View in ClickUp to create a visual content calendar and assign tasks to team members responsible for content creation.

6. Monitor and analyze results

Regularly track the performance of your marketing campaigns and analyze the data to see what's working and what needs improvement. Monitor metrics such as website traffic, social media engagement, email open rates, and conversion rates. Use this data to make informed decisions and optimize your marketing strategies.

Use the Dashboards feature in ClickUp to create visual reports and track key marketing metrics in real-time.

By following these six steps and utilizing the features in ClickUp, you can create a comprehensive and effective marketing plan for your cosmetic business.

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Get Started with ClickUp’s Cosmetic Business Marketing Plan Template

Cosmetic business owners or marketing teams can use the Cosmetic Business Marketing Plan Template to effectively strategize and outline their marketing approach in the competitive beauty industry.

First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful marketing plan:

  • Use the Key Results View to set specific marketing objectives and track progress towards achieving them
  • The Timeline View will help you visualize and plan out your marketing activities and campaigns over a specific time period
  • Refer to the Getting Started Guide View to get step-by-step instructions on how to effectively use the template and make the most out of its features
  • Use the Objectives View to define your marketing goals and align them with your overall business objectives
  • The Progress Board View will give you an overview of the progress of each marketing task and help you identify areas that need attention or improvement
  • Organize tasks into six different statuses: Cancelled, Complete, In Progress, Needs Input, Planned, To Do, to keep track of progress
  • Update statuses as tasks are completed or progress is made to keep team members informed
  • Monitor and analyze the results of your marketing efforts to identify what strategies are working and make data-driven decisions for future campaigns and promotions.

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Cosmetics Manufacturing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Cosmetics Line

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

Okay, so we have considered all the requirements for starting a cosmetics manufacturing company. We also took it further by analyzing and drafting a sample cosmetics manufacturing marketing plan template backed up by actionable guerrilla marketing ideas for cosmetics manufacturing companies. So let’s proceed to the business planning section .

The rule of thumb when it comes to starting a business and minimizing the time you need to wait before breaking even is to start a business whose products or services are needed in our daily life and cosmetic manufacturing business falls under this category.

Cosmetic and beauty products are used in all parts of the world and of course those that are in the business of manufacturing cosmetics and beauty products are known to generate sales year in year out if the business is well – managed.

As a matter of fact, economic downturn hardly affects the purchase of cosmetic and beauty products because it is a commodity that plays a major role in our daily living.

It is a known fact that the manufacturing of cosmetic and beauty products has continued to soar high. If you are however considering starting your own cosmetics and beauty products manufacturing business, then you must be ready to learn the ropes.

So, if you have decided to start your own cosmetics manufacturing company, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your cosmetics manufacturing business.

Below is a sample cosmetics manufacturing business plan template that can help you to successfully write your own with little or no difficulty.                                                                          

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 other toiletries.

Unpredictable incomes do not really affect cosmetics, and essential goods such as shampoo, experience steadier demand.

The revenue generated in this industry has increased steadily in recent years, as some of the industry’s largest export partners began to experience post – recessionary growth. Going forward, the industry’s diverse product lines and commitment to research and development will keep revenue growth stable.

The Cosmetics and Beauty Products Manufacturing Industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 3,361 registered and licensed cosmetics and beauty product manufacturing companies scattered all around the United States of America.

The industry is responsible for the employment of over 51,263 people. Experts project the industry to grow at a -1.8 percent annual rate from 2011 to 2016. Estee Lauder, Mary Kay and L’Oréal USA, Inc. have the lion market share in the industry in the United States of America and in some other countries.

A recent research conducted by IBISWORLD shows that the Cosmetic and Beauty Products manufacturing industry is in the growth phase of its life cycle, though it is likely to enter the mature phase in the near future. Industry value added is forecast to grow at an average annual rate of 0.7 percent in the 10 years to 2022.

This rate is significantly slower than GDP growth, which is anticipated to increase at an average annual rate of 2.2 percent during the same period. IVA growth being slower than GDP growth is indicative of an industry in the mature or declining stage of its life cycle, the Cosmetic and Beauty Products manufacturing industry is still growing as it is still experiencing high rates of industry entrants and product development.

One good thing about the cosmetics manufacturing business is that the business can be targeted at national or international markets depending on your financial capacity.

Over and above, the Cosmetic and Beauty Products Manufacturing industry is a profitable industry that it is open for any aspiring entrepreneur to come in, establish his or her business, compete for the available market and make profits.

2. Executive Summary

Jessica Browne® Cosmetics, Inc. is a licensed cosmetic and beauty care manufacturing company that will be located in an industrial area in Indianapolis – Indiana.

We have been able to secure a long – term lease for a facility in a strategic location with an option of a long – term renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible. We are deliberate about that in order to facilitate easy movement of raw materials and finished products.

We are in the cosmetic and beauty care manufacturing business to engage in the production of skin care products, perfumes and colognes, hair care products and cosmetics et al.

We are also in business to make profits and at the same to give our customers value for their money; we want to give people and businesses that patronize our cosmetic and beauty care products the opportunity to be part of our success story.

We are aware that there are several cosmetic and beauty care product manufacturing companies scattered all around the United States whose products can be found everywhere in the United States, which is why we spent time and resources to conduct our feasibility studies and market survey to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering. We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network.

Beyond manufacturing quality and safe cosmetic and beauty products, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our stores.

Jessica Browne® Cosmetics, Inc. will ensure that all our customers are given first class treatment whenever they visit our factory.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the number of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Jessica Browne® Cosmetics, Inc. is a family business that will be owned by Jessica Browne and her immediate family members. Mrs. Jessica Browne who is the Chief Executive Officer of the Company is a Graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA).

She has over 10 years of experience working in related industry as a senior manager prior to starting Jessica Browne® Cosmetics, Inc. She will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Jessica Browne® Cosmetics, Inc. is going to run a standard cosmetic and beauty care product manufacturing company whose products will not only be sold in Indianapolis – Indiana but also throughout the United States of America and Canada. We are in the cosmetic & beauty care product manufacturing industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goals and objectives. These are some of the products that we will be offering;

  • Hair care products
  • Face and body creams, beauty creams or lotions and hand cream or lotions
  • Sunscreen products
  • Cosmetics, including face powders, eye shadows, lipsticks and mascaras
  • Bath salts and talcum powders
  • Deodorants and depilatory products
  • Nail care preparations and nail polishes
  • Toilet cream and lotions

4. Our Mission and Vision Statement

  • Our vision is to establish standard cosmetics manufacturing Company whose products will be not only be sold in Indianapolis – Indiana, but also throughout the United States of America and Canada.
  • Our mission is to establish a standard cosmetics manufacturing company that will favorably compete with leaders in the cosmetics and beauty care products manufacturing industry. We want to build a business that will be listed amongst the top 20 cosmetic and beauty care brands in the United States of America.

Our Business Structure

Jessica Browne® Cosmetics, Inc. is a business that is established with the aim of competing favorably with other leading cosmetic and beauty care product brands in the industry. This is why we will ensure that we put the proper structure in place that will support the kind of growth that we envisaged while setting up the business.

We will make sure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)

Plant Manager

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

  • Machine Operators
  • Accountants/Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (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.
  • Generates, interconnects, and gears 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
  • In charge of signing checks and documents on behalf of the company
  • Evaluates the success of the organization.
  • Responsible for overseeing the smooth running of the cosmetic and beauty product manufacturing plant
  • Part of the team that determines the quantity of cosmetic and beauty care products that are to be produced
  • Maps out strategy that will lead to efficiency amongst workers in the plant
  • Responsible for training, evaluation and assessment of plant workers
  • Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
  • Ensures that the plant meets the expected safety and health standard at all times.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • 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
  • Oversee the smooth running of the daily office and factory activities.
  • Accomplishes vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Responsible for the purchase of raw materials and packaging materials
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • 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
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps 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

Client Service Executive

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels/documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned by the line manager

Production Workers/Machine Operators:

  • Responsible for preparing, blending, compounding and packaging cosmetics and beauty care products
  • Handles labeling of cosmetics and beauty care products
  • Operates machines used in the manufacturing of hair care products , face and body creams, beauty creams or lotions and hand cream or lotions, sunscreen products, and cosmetics, including face powders, eye shadows, lipsticks and mascaras etc
  • Assists in packaging and loading cosmetic and beauty care products into distribution trucks
  • Assists in loading and unloading cosmetic and beauty care products
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
  • Assists the transport and logistics manager in planning their route according to a delivery schedule.
  • Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash
  • Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
  • Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Collects and verifies delivery instructions
  • Reports defects, accidents or violations

6. SWOT Analysis

From our research, we got to know that there are several cosmetics and beauty care product manufacturing companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Jessica Browne® Cosmetics, Inc. hired the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Jessica Browne® Cosmetics, Inc.;

Our major strength as a cosmetics manufacturing company is the vast experience of our management team, we have people on board who understand how to grow business from the scratch to becoming a national phenomenon. So also the wide varieties of cosmetics and beauty care products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

One major weakness that may count against us is the fact that we are a new cosmetics manufacturing company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Estee Lauder, Mary Kay and L’Oréal USA, Inc. et al are already determining the direction of the market both in the United States and in the global market.

  • Opportunities:

The opportunities available for cosmetics and beauty care products manufacturing companies with a wide range of products are enormous. This is due to the fact that almost all Americans and people from all over the world make use of cosmetics and beauty care products regularly.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to come up with good products and position our business to take advantage of the existing market for cosmetics and beauty care products and also to create our own new market. We know that it is going to require hard work, but we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies . Another threat that may likely confront us is the arrival of a new cosmetics and beauty care product manufacturing company in the same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

If you are knowledgeable about the existing trend in the cosmetic and beauty care products manufacturing industry, you will quite agree that cosmetic and beauty care products manufacturing companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry.

One more trend in this industry is the exploration of safer raw materials for the production of cosmetic and beauty care products. The truth is that people all over the world are looking for cosmetics and beauty care products that contain less chemical hence the increase in demand for products that are produced from herbs.

Lastly, the cosmetic and beauty care products manufacturing industry has started the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling cosmetics and beauty care products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations.

In view of that, 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 engage in wholesale distribution and to retail cosmetics and beauty care products to everybody in our target market location.

Our Competitive Advantage

A close study of the cosmetic and beauty care products manufacturing 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 stiff competition and we are well prepared to compete favorably with other cosmetic and beauty care product manufacturing companies in Indianapolis – Indiana and throughout the United States.

Jessica Browne® Cosmetics, Inc. is launching a standard cosmetic and beauty care product brand that will indeed become the preferred choice of residents of Indianapolis – Indiana and every city where our cosmetic and beauty care product will be retailed.

Part of what is going to count as competitive advantage for us is the vast experience of our management team; we have people on board who understand how to grow business from the scratch to becoming a national phenomenon. So also, the wide varieties of cosmetic and beauty care products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category 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

Jessica Browne® Cosmetics, Inc. is established with the objective of maximizing profits in the cosmetic and beauty care product manufacturing industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell a wide range of cosmetic and beauty care products to a wide range of customers.

Jessica Browne® Cosmetics, Inc. will generate income by selling the following products;

  • Face and body creams, beauty creams and lotions and hand cream or lotions

10. Sales Forecast

One thing is certain when it comes to cosmetic and beauty care product manufacturing business, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Indianapolis – Indiana and every city where our cosmetics and products care will be sold and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation.

We have been able to critically examine the cosmetic and beauty care products manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Indianapolis – Indiana.

  • First Fiscal Year: $350,000
  • Second Fiscal Year: $650,000
  • Third Fiscal Year: $1.3 Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’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

Prior to choosing a location for Jessica Browne® Cosmetics, Inc. and also the kind of cosmetic and beauty care products we produce, we conduct a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target locations.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America and Canada.

We hired experts who have good understanding of the cosmetic and beauty care product manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Indianapolis – Indiana and other cities in the United States of America.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Jessica Browne® Cosmetics, Inc. will adopt the following sales and marketing approach;

  • Introduce our cosmetic and beauty care products brand by sending introductory letters to residents, merchants, retailers and other stakeholders in Indianapolis – Indiana and other cities in the United States of America
  • Open our cosmetic and beauty care products with a party so as to capture the attention of residents who are our first targets
  • Engage in roadshows in targeted communities from time to time to sell our products
  • Advertise our products in community based newspapers, local TV and radio stations
  • List our businesses and products on yellow pages ads (local directories)
  • Leverage on the internet to promote our cosmetic and beauty care product brands
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our cosmetics plant is a standard one with the capacity to produce a wide range of cosmetic and beauty care products that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brands. We are going to explore all available means to promote Jessica Browne® Cosmetics, Inc.

Jessica Browne® Cosmetics, Inc. has a long – term plan of distributing our cosmetic and beauty care products in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Indianapolis – Indiana before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Jessica Browne® Cosmetics, Inc.;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms to promote our cosmetic and beauty care product brand
  • Install our billboards in strategic locations all around major cities in the United States of America
  • Engage in roadshows from time to time in targeted communities
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners in strategic positions
  • Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded

12. Our Pricing Strategy

When it comes to pricing our products, there are two sides to the coin. We are aware of the pricing trend in the cosmetic manufacturing industry which is why we have decided to produce various sizes of cosmetics and beauty care products.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months, our products are sold a little bit below the average prices of various cosmetic and beauty care product brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our cosmetic and beauty care products.

  • Payment Options

The payment policy adopted by Jessica Browne® Cosmetics, Inc. is all inclusive because we are quite aware that different customers prefer different payment options 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 Jessica Browne® Cosmetics, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

Starting a standard cosmetic and beauty care manufacturing company is a capital-intensive business because the amount required in setting up a cosmetics and beauty care production plant is not little. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing production equipment.

These are the key areas where we will spend our startup 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) – $1,300
  • Marketing promotion expenses for the grand opening of Jessica Browne® Cosmetics, Inc. 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 Business 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 months at $1.76 per square feet in the total amount of $105,600
  • Cost for construction of a standard cosmetic and beauty care production plant – $150,000
  • Other start-up expenses including phone and utility deposits ( $2,500 )
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost for Start-up inventory (raw materials, and packaging materials et al) – $80,000
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Cost of purchase of distribution vans – $60,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000
  • The cost of launching a website – $600
  • The cost for our opening party – $10,000
  • Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our cosmetic and beauty care products production plant in Indianapolis – Indiana.

Generating Startup Capital for Jessica Browne® Cosmetics, Inc.

Jessica Browne® Cosmetics, Inc. is a family business that is owned and financed by Jessica Browne and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings and sell of stocks
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents 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 number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Jessica Browne® Cosmetics, Inc. 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 cosmetics and beauty care 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.

Jessica Browne® Cosmetics, Inc. 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 re – training of our workforce is at the top burner.

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 construction of standard cosmetic and beauty care plant: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members and friends: 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 and 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
  • Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress.

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cosmetics business plan sample

IMAGES

  1. Cosmetic Business Plan Template

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  2. Cusmotic Manufacturing Business Plan Template : Unit 2 Business Plan

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  3. Cosmetics business plan

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  4. Cosmetic Business Plan Template [Free PDF]

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  5. Beauty Business Planner: Business Plan Template, Business Guide

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  6. Cusmotic Manufacturing Business Plan Template

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VIDEO

  1. Chennai Biggest Branded Cosmetics, Daily Needs Supplier👌👌 up to 50% Less From MRP, Wholesale Price

  2. COSMETIC BUSINESS IDEAS||COSMETIC PRODUCTS THAT MOVE FASTER, BEGINNERS GUIDE

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  6. Student Part Time Business Ideas

COMMENTS

  1. Cosmetic Business Plan Template & How-To Guide [Updated 2024]

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a cosmetic business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of cosmetic company that you documented in your company overview.

  2. 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. We want our customers to look and feel their ...

  3. 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.

  4. Cosmetics Business Plan Examples

    Cosmetics Manufacturing Business Plan. Bluespa is a multi-channel concept, combining a wholesale distribution network with a retail strategy, e-commerce, and a consumer catalogue. ... 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 ...

  5. 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.

  6. 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.

  7. Cosmetics Manufacturing Business Plan Example

    Today, businesses owned by women generate over $3.6 trillion in annual sales. Of the net increase in the workforce between 1992 and 2005, 62% are projected to be women. In retail the female consumer is the primary decision maker in 85% of households. Women buy or influence the purchase of 80% of consumer goods.

  8. 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.

  9. Skin Care Business Plan: Guide & Template (2024)

    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)

  10. Essentials of a Cosmetics Business Plan: How to Write One

    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.

  11. How To Write A Winning Skin Care Business Plan + Template

    Here's how to write the perfect skin care business plan for your skincare products. This template will show you exactly what to include, step-by-step. ... Sample Balance Sheet for a Startup Skin Care Business. Year 1: Year 2: Year 3: Year 4: Year 5: ASSETS: Cash: $ 105,342: $ 188,252: $ 340,881: $ 597,431: $ 869,278: Other Current Assets ...

  12. Top 10 Cosmetic Industry Business Plan Templates with Examples and

    Ensure your cosmetic venture is a success with our strategic Cosmetic Industry Business Plan, your roadmap to thriving in the beauty market ... Top 10 Cosmetic Industry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included) The SlideTeam Blog All About PowerPoint, Presentations & Life Beauty Business .

  13. Cosmetics Manufacturing Business Plan Sample

    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'.

  14. Skin Care Business Plan Template [Updated 2024]

    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 of skin care company that you documented in your company overview.

  15. Cosmetic Business Plan Template [Updated 2024]

    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

  16. Beauty Supply Store Business Plan

    How to Write a Beauty Supply Store Business Plan. All you need is thorough knowledge about the industry, a few tips to set up your business, and a well-written Cosmetics business plan. Reading sample business plans will give you a good idea of what you're aiming for. It will also show you the different sections that different entrepreneurs ...

  17. 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.

  18. Skincare Product Business Plan [Sample Template]

    A Sample Skin Care Products Business Plan Template 1. Industry Overview. Companies that operate in the Cosmeceutical Skincare Production industry, manufacture cosmeceuticals - that is cosmetics with pharmaceutical capabilities. Some of the most common products manufactured by players in this industry include wrinkle-reducing moisturizers ...

  19. PDF Skin Care Business Plan Example

    professional business plan with automated financial forecasts. You can also do: 200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step ...

  20. SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS.

    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.

  21. Cosmetic Business Marketing Plan Template

    ClickUp's Cosmetic Business Marketing Plan template offers a comprehensive solution for managing your marketing strategies effectively. Here are the main elements of this List template: Custom Statuses: Track the progress of your marketing plan with 6 different statuses, including Cancelled, Complete, In Progress, Needs Input, Planned, and To ...

  22. 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 ...

  23. Free Cosmetics Manufacturing Business Plan Template + Example

    Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.