Beauty supply store business plan for starting your own shop
Are you considering starting your own beauty supply business? If your answer is yes, there is no better time than right now. Why the potential is endless. You only have to look at Instagram to see that the beauty industry plays a very important role in this digital age.
Every generation is seeking perfection, whether it be for that all-important selfies for social media or the next big family wedding. The beauty has exploded over the last decade. Influencers have played an integral role in their beauty tutorials on YouTube, Instagram, Facebook, and Twitter. This is not just a trend this is here to stay.
There is plenty of room for everyone in the beauty world, moreover in the beauty supply business. The beauty industry breaks through generational barriers because everyone, young, and old wants to look and feel good. The market itself is huge, almost infinite. This is because beauty is not just for the rich but also for all financial pockets high and low.
There is plenty of room for everyone in the beauty world, moreover in the beauty supply business. The beauty industry breaks through generational barriers because everyone, young and old want to look and feel good. The market itself is huge, almost infinite. This is because beauty is not just for the rich but for all financial pockets high and low.
How to start a business?
Starting your own business always begins with a great concept of how to open a beauty supply store. Once the seed is sown move on to market research for your chosen business idea. You can also look for sample business plan for beauty supply store. Knowing your market is key to success. Once you have established your core market, you will need to ascertain your opening budget and stick with it. Where will your funds for your new venture come from? Locating the right outlet/property is also key to the success of your venture. The wrong location can be the death of any business.
What are the costs involved in opening a business?
The costs of running your own business differ greatly. This will all depend on location, rent/lease of property/outlet and the cost of initial stock. Then you need to consider staffing costs, delivery import and export costs.
How to implement business management?
This key area is vitally important for the success of any business. The right management can make a company and the wrong management can break it. Share your vision with your managers/staff and make them feel a part of something great. Show them that they are valued and you will receive their loyalty. Make them feel important. A great manager will attain the loyalty of their staff thus lowering the staff turnover rate per annum. The business will be more productive and the financial rewards will be higher.
What the target of this business?
The Beauty Supply Business’s key target is to supply beauty products to stores big and small nationally and internationally at a competitive rate offering discounts on regular bulk-buy orders. We wish to stand out from the crowd and offer a wide range of products that exceed our competitors, thus making our business a very attractive option.
Planning your business
When starting a beauty supply store, the business/startup, Beauty Supply Store has engaged a consultant to help effect a business plan initially. Beauty Supply Store’s cost budget/funds for a startup will be coming from –inheritance and a business loan.
Define your brand
Beauty Supply Store’s measuring stick will be its unique approach how to start a beauty supply store to customer satisfaction and individual personalization based on customer’s needs. No one customer is the same and they will not be treated generically. We are not just another beauty company, we care about our clients, and they can choose tailor-made order strategies personal to their business. ‘Above and beyond’ is our companies’ motto
How to promote & Market a business
The promotion and marketing of the Beauty Supply Store will highly engage in social media marketing. Digital marketing is the heart of any successful business today. Instagram, Twitter, Facebook, and LinkedIn will be key targeted areas. A full-time digital marketing professional will be hired to run this side of the business to maintain its presence online.
Establish a web presence
A brand new website is currently under construction to engage a highly effective web presence. This will engage customers and garner new ones. Customers will be able to order online as well as walking into the store. Thus, attracting a larger customer base. Keeping up to date with Google analytics will also be key to maintain a high search position.
The owner of the beauty supply store is a young woman who studied the industry at University. She comes from a family who has been in the beauty industry for two generations and dreamed of one day owning her own beauty business. Her knowledge of the beauty industry is vast, and will compliment her venture greatly.
Why he/she started the business
Coming from a long line of family business owners, she always knew that she wanted to make her own mark on life, be her own boss, and create her own brand new company from scratch. With this in mind, the university was her starting point. They need to gain as much knowledge in addition to what she already had to ensure the success of her business.
How the business started
A fortuitous inheritance enables the birth of Beauty Supply Store along with a small business loan. In addition, with a business partner, consultant and help from family business owners. The business was enabled.
|Research and Development||$32,750|
|TOTAL START-UP EXPENSES||$435,500|
|Other Current Assets||$322,500|
|Start-up Expenses to Fund||$435,500|
|Start-up Assets to Fund||$882,125|
|TOTAL FUNDING REQUIRED||$1,317,625|
|Non-cash Assets from Start-up||$195,000|
|Cash Requirements from Start-up||$0|
|Additional Cash Raised||$203,125|
|Cash Balance on Starting Date||$118,750|
|Liabilities and Capital||$118,750|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,317,625|
|Loss at Start-up (Start-up Expenses)||($919,500)|
|TOTAL CAPITAL AND LIABILITIES||$638,750|
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Products available in the Beauty Supply Vendors store.
- A wide range of skincare products will be available, including vegan selections.
- Various and trusted brands of aromatherapy body oils from leading and well-known brands
- Body lotion for all skin types for both men and women (vegan selections available)
- Specialist foot products for the removal of hard skin.
- Derma wands for anti-aging skin
- Retinal serums
- False eyelashes (stick on and semi-permanent)
- Micro-blading equipment/products
- Hair products, hair dye/bleach/micro rings/micro loops/ hair extensions and wigs
- Beauty tools, makeup brushes/hairbrushes/tweezers/hair masks/dye mixing bowls/whisks/microbeads/loops/extension hair tape/wig tape/nail drying gadgets/foot spas/nail polish remover/hair clips/hairbands/trays/trolleys/makeup boxes/ nail boxes/
- Nail polish/nail polish remover,
- Eyebrow dye kits
- Eyelash tint kits
- False nails, all types for all nails.
- Gel nail kits
- Massage tables
- Bleaching caps
- Hair foil
- Hair dryers
- Hair straighteners
- Wide range of makeup for all skin types from trusted market-leading brands
Marketing Analysis of Beauty Supply Store
The observation of market trends is key to the Beauty Supply Shop. Using search engines such as Google and Google insights. Twitter trends will also play a key role. Monitoring online trends in the beauty world will be important to the business. What is trending in 2020? What is trending amongst influencers on social media such as Instagram and YouTube?
Market trends are continually changing and evolving and the monitoring of these trends to ensure we stay ahead of the rest will be paramount.
Grouping customers into regular, occasional, and potential divides will help Beauty Supply Store to keep on top of analytics that is core to current and future business. Thus, enabling the business to effect a change of direction when needed. It is important to keep up with consumer demands as this affects the products we stock over time.
|Skin Care||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
|Body and Bath||25%||8,322||9,455||10,655||12,867||14,433||25%|
Beauty Supply Store business’s main targets are beauty salons, hairdressers, spas, hotels, and the general public. The aim is to provide everything that a hair/beauty salon needs to run their business and offering all the brands required. The choice for our clients will be a key factor. Limited stock will not be an option if we are to set our business apart from the rest.
What is the key Target Market?
Beauty Supply Stores key target market is as follows: Beauty salons/beauty spas/Hotels and the key Demographic 16/55 although the general demographic will be much wider. Beauty is ageless and everyone wants to look beautiful.
Business Plan for Investors
How to keep customers coming back
Repeat customers will be at the heart of the Beauty Supply Store. The most important thing for the success of any business is customer service. To ensure customers keep returning they will be awarded a bonus card. The more they spend the more points they receive. These points can be converted to free products and extra discounts off bulk-buys when the points build up. There will be a range of personal delivery options (an area that often fails many customers). Friendly staff and advisors will be on hand for our clients online and instore.
What will be the average receipt of the business?
The average customer receipt will be between $100 and $1000, of course, this depends on the size of the business ordering the goods. Bulk-buy goods would expect an average receipt of $1000
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With our online presence in the form of a professional website that is compatible with mobile phones will increase our marketing online. We will drive traffic through our site by using/offering an affiliate program to customers. Producing regular beauty-focused content with keywords that are guaranteed to rank high on search engines will be important. Offering incentives on our Social media platforms such as our Facebook page to engage our followers and get them buying and clicking through to our website. Using Facebook and Instagram ads for businesses to promote our products will be an area that we shall implement at the offset.
While pereparing the beauty supply retail store business plan, the competitive analysis is an essential part to consider.We are in the market when there are numerous other beauty supply organizations inside a mile span. There is an uncertainty that the business will confront the hardened challenge from built-up industry players.
In any case, the business has recognized the key factors that are long accepted to profit the intensity of different beauty product organizations. Putting resources into key areas, with praiseworthy client assistance, latest management technology, and superb cordial staff will bring us into the challenge.
The accompanying techniques will be produced for our store to get more client base:
- Showcase our products to corporate customers that are associated with numerous downtown foundations.
- Extraordinary offers, especially, convincing, and adjustable bundles that give great motivating forces to draw in clients.
- Thorough showcasing efforts and utilization of both nearby media just as advanced channels to spread business.
- Offer periodic offers and limits to faithful clients to keep utilizing our products.
- Ensure that every client gets singular regard for their needs and to get the help they need.
The business of store might not be able to pick up the profitability baseline in the first month, but our plan is made in such a way so that we can easily mitigate that possibility. Although, when it comes to sales, we expect an exponential increment in the first four weeks of the store.
As already mentioned, the business of the store might not be able to pick up the profitability baseline in the first month, but it will become fully profitable by the first quarter of the first year. We expect that we will reach our full potential of sales under given capacity in the first year.
During the first 12 months: We expect to make an honest marginal profit as setup costs will affect the profit margin greatly as with any business plan in its infancy. However, our sales forecast for the first month is expected to be $40,000 due to clients we have attained initially with potential orders already exceeding our expectations. Our target sales for the first 12 months is expected to be a conservative $250,000.
|Unit Sales||Year 1||Year 2||Year 3|
|Sale and export||550||750||1,100|
|TOTAL UNIT SALES||2,389||3,092||4,257|
|Unit Prices||Year 1||Year 2||Year 3|
|Dairy support services||$870.00||$910.00||$1,200.00|
|Livestock health services||$650.00||$750.00||$850.00|
|Sale and export||$1,700.00||$2,100.00||$3,100.00|
|Sale and export||$935,000||$1,575,000||$3,410,000|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Sale and export||$1,000.00||$1,350.00||$2,000.00|
|Direct Cost of Sales|
|Sale and export||$550,000||$1,012,500||$2,200,000|
|Subtotal Direct Cost of Sales||$1,655,915||$2,532,140||$4,732,550|
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What Staff Needs to Open a Company?
- For the Beauty Supply Store, we will employ –
- 2 shop-floor staff
- 2 forklift truckers
- 1 receptionist for front of the house.
- 2 Loading staff, 2 delivery staff.
- 1 The store manager and
- 1 Security store guard.
Average Salary of Staff
To start a beauty supply store, the following table describes the average annual salary of each employee and total payroll for the next 3 years.
|Year 1||Year 2||Year 3|
|Receptionist for front of the house||$55,000||$65,000||$75,000|
|The store manager||$10,000||$12,000||$15,000|
|Security store guard||$15,000||$20,000||$25,000|
Charges for Opening Store
The charges for opening the Beauty Supply Store will include the following: Lease/rent costs, staffing costs, stock cost, electricity, water, business rates, telephone, and WiFi.
We have built up a thorough financial arrangement that will completely bolster our business while preparing the business plan template for a beauty supply store. Our business will give monetary help with a variety of different speculators. Accessible subsidizing will be accessed and enhanced by an advance that the business means to debit inside the initial three years of opening.
In the event that you are thinking about how to begin a beauty supply store, do not stress as we can assist you with setting up a point by point budgetary plan.
We assume that our client base will grow linearly and the economy will remain strong. Our services might be disrupted due to natural factors but we will take the top care to make sure that the services remain stable under human conditions.
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
We expect that the beauty supply store will break even within the first quarter of the first year of opening.
|Monthly Units Break-even||5530|
|Monthly Revenue Break-even||$159,740|
|Average Per-Unit Revenue||$260.87|
|Average Per-Unit Variable Cost||$0.89|
|Estimated Monthly Fixed Cost||$196,410|
Projected Profit And Loss
We might run into a loss for the first month of operations but we expect to touch the profit baseline within 3 months of operations.
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$1,655,915||$2,532,140||$4,732,550|
|TOTAL COST OF SALES||$1,655,915||$2,532,140||$4,732,550|
|Gross Margin %||37.82%||36.97%||29.45%|
|Sales and Marketing and Other Expenses||$1,850||$2,000||$2,150|
|Total Operating Expenses||$810,730||$885,446||$977,962|
|Profit Before Interest and Taxes||$196,285||$599,614||$997,938|
The monthly profit we will reach will be able to sustain all our operations and will us enough dividends to invest for future grown of the business.
As already mentioned, we might run into a loss for the first month of operations but we expect to touch the profit baseline within 3 months of operations and therefore our yearly profits will be able to pay back all the credit.
Gross Margin Monthly
In the first few months, the margins will remain negative, but when the profitability picks up we expect a thick margin baseline.
Gross Margin Yearly
Yearly margins will be great and will make us able to expand our business and reach out to a larger customer base.
Projected Cash Flow
In the initial months, we will be running on credit, but soon we will become cash-flow positive.
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$7,023||$8,610||$9,297|
|SUBTOTAL CASH FROM OPERATIONS||$47,147||$53,656||$59,365|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$47,143||$53,651||$55,359|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$35,186||$39,589||$197,582|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$35,296||$35,489||$43,882|
|Net Cash Flow||$11,551||$13,167||$15,683|
Projected Balance Sheet
Balance sheets will be outsourced but monitored. Management will make sure it will stay positive.
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$201,259||$237,468||$273,677|
|TOTAL LONG-TERM ASSETS||$980||$610||$240|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$9,482||$10,792||$12,102|
|TOTAL LIABILITIES AND CAPITAL||$198,839||$232,978||$267,117|
The business rations have been calibrated to be perfect in the long term.
|Year 1||Year 2||Year 3||INDUSTRY|
|Percent of Total Assets|
|Other Current Assets||1.75%||2.02%||2.29%||27.40%|
|Total Current Assets||138.53%||150.99%||163.45%||54.60%|
|Percent of Sales|
|Selling, General & Administrative Expenses||74.29%||71.83%||69.37%||65.20%|
|Profit Before Interest and Taxes||26.47%||29.30%||32.13%||2.86%|
|Total Debt to Total Assets||2.68%||1.04%||0.76%||67.10%|
|Pre-tax Return on Net Worth||66.83%||71.26%||75.69%||4.40%|
|Pre-tax Return on Assets||64.88%||69.75%||74.62%||9.00%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||19.20%||21.16%||23.12%||N.A.|
|Return on Equity||47.79%||50.53%||53.27%||N.A.|
|Accounts Receivable Turnover||4.56||4.56||4.56||N.A.|
|Accounts Payable Turnover||14.17||14.67||15.17||N.A.|
|Total Asset Turnover||1.84||1.55||1.26||N.A.|
|Debt to Net Worth||0||-0.02||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$120,943||$140,664||$160,385||N.A.|
|Assets to Sales||0.45||0.48||0.51||N.A.|
|Current Debt/Total Assets||4%||3%||2%||N.A.|
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