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.

Executive Summary

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.

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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.

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Company Summary

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.

Company Owner

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 plan for bank loan. In addition, with a business partner, consultant and help from family business owners. The business was enabled.

Beauty Supply Store Business Plan - Startup Cost
Start-up Expenses  
Legal $72,500
Consultants $0
Insurance $32,750
Rent $222,500
Research and Development $32,750
Expensed Equipment $62,750
Signs $12,250
Start-up Assets $22,000
Cash Required $485,000
Start-up Inventory $0
Other Current Assets $322,500
Long-term Assets $52,625
Total Requirements $1,317,625
Start-up Expenses to Fund $435,500
Start-up Assets to Fund $882,125
Assets $121,875
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
Liabilities $121,875
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Capital $0
Planned Investment $1,317,625
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
Loss at Start-up (Start-up Expenses) ($919,500)
TOTAL CAPITAL ($919,500)
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    Products available in the Beauty Supply Vendors store.

    1. A wide range of skincare products will be available, including vegan selections.
    2. Various and trusted brands of aromatherapy body oils from leading and well-known brands
    3. Body lotion for all skin types for both men and women (vegan selections available)
    4. Specialist foot products for the removal of hard skin.
    5. Derma wands for anti-aging skin
    6. Retinal serums
    7. False eyelashes (stick on and semi-permanent)
    8. Micro-blading equipment/products
    9. Hair products, hair dye/bleach/micro rings/micro loops/ hair extensions and wigs
    10. 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/
    11. Nail polish/nail polish remover,
    12. Qtips
    13. Eyebrow dye kits
    14. Eyelash tint kits
    15. False nails, all types for all nails.
    16. Gel nail kits
    17. Massage tables
    18. Towels
    19. Scissors
    20. Bleaching caps
    21. Hair foil
    22. Razors
    23. Hair dryers
    24. Hair straighteners
    25. Wide range of makeup for all skin types from trusted market-leading brands

    Marketing Analysis of Beauty Supply Store

    Market Trends

    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.

    Marketing Segmentation

    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.

    Beauty Supply Store Business Plan - Market Segmentation
    Market Analysis       
    Color Cosmetics20%22,33432,34443,66552,54466,43220%
    Body and Bath25%8,3229,45510,65512,86714,43325%
    Men’s Line10%4,3335,6556,8777,8779,54310%
    Women’s Line30%3,2565,6556,8777,8779,54330%

    Business Target

    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.

    Beauty Supply Store Business Plan - 3 Years Profit Forecast

    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.

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    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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    Marketing Strategy

    Julia W.

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    ∙ Julia W.

    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.

    Competitive Analysis

    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.

    Sales Strategy

    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.

    Sales Monthly

    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.

    Beauty Supply Store Business Plan - Sales Monthly

    Sales Yearly

    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.

    Beauty Supply Store Business Plan - Sales Yearly

    Sales Forecast

    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.

    Beauty Supply Store Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Skin Care5397701,002
    Color Cosmetics265322393
    Sale and export5507501,100
    TOTAL UNIT SALES2,3893,0924,257
    Unit PricesYear 1Year 2Year 3
    Dairy support services$870.00$910.00$1,200.00
    Livestock health services$650.00$750.00$850.00
    Farrier services$1,050.00$1,200.00$1,000.00
    Sale and export$1,700.00$2,100.00$3,100.00
    Skin Care$468,930 $700,700 $1,202,400
    Color Cosmetics$172,250 $241,500 $334,050
    Fragrance$1,086,750 $1,500,000 $1,762,000
    Sale and export$935,000 $1,575,000 $3,410,000
    TOTAL SALES$2,662,930 $4,017,200 $6,708,450
    Direct Unit CostsYear 1Year 2Year 3
    Skin Care$560.00$620.00$800.00
    Color Cosmetics$105.00$170.00$190.00
    Sale and export$1,000.00$1,350.00$2,000.00
    Direct Cost of Sales   
    Skin Care$301,840 $477,400 $801,600
    Color Cosmetics$27,825 $54,740 $74,670
    Fragrance$776,250 $987,500 $1,656,280
    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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      Personnel plan

      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.

       Personnel Plan   
       Year 1Year 2Year 3
      Shop-floor staff$45,000$52,000$59,000
      Forklift truckers$145,000$152,000$159,000
      Procurement manager$410,000$440,000$480,000
      Receptionist for front of the house$55,000$65,000$75,000
      Loading staff$60,000$63,300$70,000
      Delivery staff$20,000$23,300$30,000
      The store manager$10,000$12,000$15,000
      Security store guard$15,000$20,000$25,000
      Total Salaries$760,000 $827,600 $913,000

      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.

      Financial Plan

      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.

      Important Assumptions

      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.

      General Assumptions   
       Year 1Year 2Year 3
      Plan Month123
      Current Interest Rate10.00%11.00%12.00%
      Long-term Interest Rate10.00%10.00%10.00%
      Tax Rate26.42%27.76%28.12%

      Brake-even Analysis

      We expect that the beauty supply store will break even within the first quarter of the first year of opening.

      Beauty Supply Store Business Plan - Brake-even Analysis
       Brake-Even Analysis 
      Monthly Units Break-even5530
      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 1Year 2Year 3
      Sales$2,662,930 $4,017,200 $6,708,450
      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 Profit$1,007,015 $1,485,060 $1,975,900
      Gross Margin %37.82%36.97%29.45%
      Sales and Marketing and Other Expenses$1,850$2,000$2,150
      Leased Equipment$0$0$0
      Payroll Taxes$34,510$40,726$46,942
      Total Operating Expenses$810,730 $885,446 $977,962
      Profit Before Interest and Taxes$196,285$599,614$997,938
      Interest Expense$0$0$0
      Taxes Incurred$39,257$119,923$199,588
      Net Profit$157,028$479,691$798,350
      Net Profit/Sales5.90%11.94%11.90%

      Profit Monthly

      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.

      Beauty Supply Store Business Plan - Profit Monthly


      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.

      Beauty Supply Store Business Plan - Profit Yearly

      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.

      Beauty Supply Store Business Plan - Gross Margin Monthly

      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.

      Beauty Supply Store Business Plan - Gross Margin Yearly

      Projected Cash Flow

      In the initial months, we will be running on credit, but soon we will become cash-flow positive.

      Beauty Supply Store Business Plan - Projected Cash Flow
       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$40,124$45,046$50,068
      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
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$21,647$24,204$26,951
      Bill Payments$13,539$15,385$170,631
      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
      Cash Balance$21,823$22,381$28,239

      Projected Balance Sheet

      Balance sheets will be outsourced but monitored. Management will make sure it will stay positive.

       Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$12,613$14,493$16,373
      Other Current Assets$1,000$1,000$1,000
      TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
      Long-term Assets   
      Long-term Assets$10,000$10,000$10,000
      Accumulated Depreciation$12,420$14,490$16,560
      TOTAL LONG-TERM ASSETS$980 $610 $240
      TOTAL ASSETS$198,839 $232,978 $267,117
      Liabilities and CapitalYear 1Year 2Year 3
      Current Liabilities   
      Accounts Payable$9,482$10,792$12,102
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$9,482 $10,792 $12,102
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$9,482 $10,792 $12,102
      Paid-in Capital$30,000$30,000$30,000
      Retained Earnings$48,651$72,636$96,621
      TOTAL CAPITAL$189,360 $222,190 $255,020
      TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
      Net Worth$182,060$226,240$270,420

      Business Ratios

      The business rations have been calibrated to be perfect in the long term.

       Ratio Analysis    
       Year 1Year 2Year 3INDUSTRY
      Sales Growth4.35%30.82%63.29%4.00%
      Percent of Total Assets    
      Accounts Receivable5.61%4.71%3.81%9.70%
      Other Current Assets1.75%2.02%2.29%27.40%
      Total Current Assets138.53%150.99%163.45%54.60%
      Long-term Assets-9.47%-21.01%-32.55%58.40%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.68%3.04%2.76%27.30%
      Long-term Liabilities0.00%0.00%0.00%25.80%
      Total Liabilities4.68%3.04%2.76%54.10%
      NET WORTH99.32%101.04%102.76%44.90%
      Percent of Sales    
      Gross Margin94.18%93.85%93.52%0.00%
      Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
      Advertising Expenses2.06%1.11%0.28%1.40%
      Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
      Main Ratios    
      Total Debt to Total Assets2.68%1.04%0.76%67.10%
      Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
      Pre-tax Return on Assets64.88%69.75%74.62%9.00%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin19.20%21.16%23.12%N.A.
      Return on Equity47.79%50.53%53.27%N.A.
      Activity Ratios    
      Accounts Receivable Turnover4.564.564.56N.A.
      Collection Days9299106N.A.
      Inventory Turnover19.722.5525.4N.A.
      Accounts Payable Turnover14.1714.6715.17N.A.
      Payment Days272727N.A.
      Total Asset Turnover1.841.551.26N.A.
      Debt Ratios    
      Debt to Net Worth0-0.02-0.04N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$120,943$140,664$160,385N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.450.480.51N.A.
      Current Debt/Total Assets4%3%2%N.A.
      Acid Test23.6627.0130.36N.A.
      Sales/Net Worth1.681.290.9N.A.
      Dividend Payout000N.A.

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