Do you want to start eyelash extension business?

Planning how to start your own eyelash business? This is a great business considering the U.S beauty industry generates more than $60 billion. Thanks to recent technology advancements, the eyelash extension business has really become popular and is among the fastest growing sectors in the beauty industry. This is due to the fact that many clients are keen on non-surgical and non-invasive beauty enhancements. With a good business plan, you can make good money from this business that demands a lot of creativity and passion.

Executive Summary

2.1 The Business

The eyelash extension business will be registered under the name Flawless Lounge Inc. and will be located in downtown Nashville, Tennessee. The business will be owned by Joan Stuggard who is a professional and experienced beauty therapist. When opening this business, it is good to have unique and attractive lash business name ideas to capture the attention of your customers.

2.2 Management Team

Before starting an eyelash business, Joan Stuggard worked as professional beauty therapist with cumulative work experience of 17 years. She has extensive technical skills and has offered her expertise in numerous establishments she has worked for in the course of her career.

2.3 Customer Focus

Joan has an in-depth understanding of how the eyelash extension industry works. Given her long experience in the industry, she knows who is really in need of these services. Her customers are primarily women and people of all ages who wish to have beautiful and professionally made eyelash extension.

2.4 Business Target

Joan Stuggard has identified the market segments she has to pay specific focus to in order to maximize revenue for her business. Her target is to sell her services to the most appropriate market segments in need of eyelash extension services.

Eyelash Business Plan - 3 Years Profit Forecast

Company Summary

3.1 Company Owners

Joan Stuggard is an experienced beauty therapist with extensive skills in various forms of beauty therapy including eyelash extension. In the course of her career, Joan had a chance to work for reputable beauty companies where she took an active role in coming up with pioneering beauty designs and concepts. After having been in the industry close to 2 decades, she decided it was time to think about her own eyelash extension business opportunity.

3.2 Aim of Staring the Business

After seeing the increasing acceptance of eyelash extension by many customers across the beauty industry, Joan realized it was the perfect time to think about starting eyelash extension business. Considering Nashville is a large city, there was definitely a good market for the business to tap into. Nowadays, customers prefer natural non-surgical beauty enhancements.

3.3 How the Business will be started

Flawless Lounge will launch operations after the successful completion of an extensive market research. In order to actualize her dreams, Joan knows she has to excel in business set-up, administration and financial management. For this reason, she has hired a team of financial experts to help her come up with a comprehensive financial roadmap.

Eyelash Business Plan - Startup Cost

Start-up Expenses 
Legal$3,000
Consultants$6,000
Insurance$22,000
Rent$9,000
Research and Development$14,000
Expensed Equipment$12,000
Signs$4,000
TOTAL START-UP EXPENSES$63,000
Start-up Assets$0
Cash Required$140,000
Start-up Inventory$50,000
Other Current Assets$24,000
Long-term Assets$7,000
TOTAL ASSETS$22,000
Total Requirements$25,000
START-UP FUNDING$0
START-UP FUNDING$100,000
Start-up Expenses to Fund$30,000
Start-up Assets to Fund$27,000
TOTAL FUNDING REQUIRED$0
Assets$18,000
Non-cash Assets from Start-up$12,000
Cash Requirements from Start-up$0
Additional Cash Raised$50,000
Cash Balance on Starting Date$25,000
TOTAL ASSETS$0
Liabilities and Capital$0
Liabilities$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
TOTAL LIABILITIES$0
Capital$0
Planned Investment$0
Investor 1$40,000
Investor 2$60,000
Other$0
Additional Investment Requirement$0
TOTAL PLANNED INVESTMENT$160,000
Loss at Start-up (Start-up Expenses)$50,000
TOTAL CAPITAL$45,000
TOTAL CAPITAL AND LIABILITIES$40,000
Total Funding$230,000

Services for Customers

Flawless Lounge Inc. intends to diversify its range of services in order to become more competitive and attract more customers. Joan knows how to start your own lash company involves maximizing your creativity and offering a unique range of services that makes you stand out from your competitors. Considering her experience and knowledge of the industry and trends, Flawless Lounge has an advantage that should help the business achieve its goals. The following products and services will be offered by Flawless Lounge.

  • Eyelash Extensions which are safe and customized
  • Tinting and Threading
  • Selling eyelash extension products

Marketing Analysis of Eyelash Extension Business

In the recent times, the number of people seeking eyelash extension services has increased. With various forms of beauty therapy becoming more common, many people are increasingly seeking to transform their appearance through simple techniques as opposed to medical procedures which are considered invasive. In this eyelash extension business plan, Flawless Lounge has identified an untapped market it can capitalize on to generate revenue. Women across the age bracket have developed a keen interest in eyelash extension services creating a good opportunity for the business. In this regard, the business has carried out an extensive market study and analysis for purposes of planning.

5.1 Market Segment

For Flawless Lounge to achieve its revenue targets, the eyelash extension business has identified various market segments it needs to market its product and services. In this lash business plan, potential market segments have been defined with a clear marketing plan of reaching out to them.

Eyelash Business Plan - Market Segmentation

5.1.1 Individual Customers

Walk-in customers are expected to be the largest target market that Flawless Lounge must find creative ways of reaching out to. Nashville is a large city with a high number of individuals who will regularly need eyelash extension services. With increased awareness about beauty procedures, the number of people interested in eyelash extension has gone up. Any good eyelash extension business plan example should adequately specify the strategies needed to attract this clientele to the business. This is definitely a lucrative market considering the potential high number of customers the business is likely to gain. Apparently, it is also the most competitive segment so Flawless Lounge has to position itself strategically to benefit from this segment.

5.1.2 Beauty Parlors

Beauty parlors potentially present a good revenue source for the eyelash extension business. Flawless Lounge sells eyelash extension products which are required for various beauty parlors across the city to serve their customers. The advantage of this segment is most beauty parlors are likely to make regular and consistent bulk orders for products which generates a good amount of revenue for the business.

5.1.3 Cosmetic Shops

Cosmetic shops stock a wide variety of items including eyelash extensions which are sold to individual customers and other beauty related businesses. Flawless Lounge should put in place strategies to work closely with cosmetic shops because they have access to a wide market the eyelash extension business can tap into.

5.1.4 Make-up Artists

Make-up artists work extensively with different products including eyelash extensions. Flawless Lounge can creatively come up with a plan of identifying various make-up artists and their business entities with an aim of marketing both the products and services of the business.

Market Analysis
Potential CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
Individual customers35%30,00032,00034,00036,00038,00010.00%
Beauty Parlors30%25,00027,00029,00031,00033,00014.00%
Cosmetic shops20%20,00022,00024,00026,00028,00012.00%
Make-up artists15%15,00017,00019,00021,00023,0009.00%
Total100%90,00098,000              106,000114,000122,00018.00%

5.2 Business Target

Flawless Lounge intends to set-up shop in Nashville which is a highly populated city with numerous opportunities for the business to explore. In this lash extension business plan, Flawless Lounge hopes to realize an annual sales growth of between 15%-18% in the first three years of operation.

5.3 Product Pricing

The best approach of how to start a eyelash extensions business involves carrying out an extensive market study in order to come up with an accurate and profit oriented pricing strategy.

Strategy

Flawless Lounge Inc. intends to formulate a well-researched and effective marketing strategy to help the business satisfactorily cover all the intended target markets. Setting up eyelash extension business requires the implementation of good marketing strategies to help the business market its products and services to as many customers as possible.

6.1 Competitive Analysis

Flawless Lounge Inc. has done an extensive market research to come up with the best strategies to help the business achieve consistent growth, compete effectively and remain relevant in the industry.

6.2 Sales Strategy

For Flawless Lounge Inc. to effectively reach out to the market, the eyelash extension business intends to implement the following strategies to advertise its brand.

  • Advertise the eyelash extension business on local directory listings
  • Send introductory letters to business in the beauty industry to create awareness about the eyelash extension business
  • Advertise the business on social media platforms such as Facebook, Twitter and Instagram. Use Google Ads to market the business to an online audience
  • Design a simple search engine optimized website to improve online presence and rank higher in search engine results
  • Advertise the eyelash extension business on local print and broadcast channels such as radio, television and newspapers
  • Encourage word of mouth marketing especially by offering good services to have referrals for the business

6.3 Sales Forecast

How to start your own eyelash extension business and have a clear vision requires coming up with a comprehensive sales forecast.

Eyelash Business Plan - Unit Sales

Sales Forecast   
Unit SalesYear 1Year 2Year 3
Eyelash extensions300,000310,000320,000
Tinting and threading310,000320,000330,000
Selling eyelash extension products200,000220,000240,000
TOTAL UNIT SALES810,000840,000870,000
Unit PricesYear 1Year 2Year 3
Eyelash extensions$400.00$420.00$440.00
Tinting and threading$250.00$270.00$290.00
Selling eyelash extension products$200.00$220.00$240.00
Sales
Eyelash extensions$310,000$340,000$370,000
Tinting and threading$150,000$180,000$210,000
Selling eyelash extension products$100,000$140,000$180,000
TOTAL SALES
Direct Unit CostsYear 1Year 2Year 3
Eyelash extensions$5.00$4.00$3.00
Tinting and threading$3.00$2.00$1.00
Selling eyelash extension products$2.00$3.00$4.00
Direct Cost of Sales
Eyelash extensions$300,000$320,000$340,000
Tinting and threading$200,000$220,000$240,000
Selling eyelash extension products$150,000$170,000$190,000
Subtotal Direct Cost of Sales$900,000$980,000$1,060,000

Personnel Plan

If you plan to start your own eyelash business, you need to have a team of well-trained and experienced staff to help you manage the business. Joan has realized she can’t run the business alone and requires a competent team to support her. In this regard, a personnel plan has been established to identify the best team to run Flawless Lounge Inc.

7.1 Personnel Plan

To help the eyelash extension business achieve business growth and success, the following team of staff will be hired to work in the business. Joan Stuggard who is the owner of the eyelash extension business will be the Chief Executive Officer in charge of management and administration. She will be assisted by the following personnel in various departments.

  • 1 Assistant Manager
  • 3 Lash Technicians
  • 1 Accountant/Cashier
  • 2 Sales and Marketing Executives
  • 1 Customer Service Executive
  • 1 Delivery Executive

Successful applicants will undergo comprehensive training a few weeks before the business officially opens its doors to the public.

7.2 Average Salaries

Flawless Lounge Inc. intends to pay its members of staff the following salaries within the first three years of operation.

 Personnel Plan   
Year 1Year 2Year 3
1 assistant manager$24,000$26,000$28,000
3 Lash technicians$75,000$77,000$79,000
1 Accountant$22,000$24,000$26,000
2 Sales and Marketing Executive$50,000$54,000$58,000
1 Client Service Executive$20,000$20,000$20,000
1 Delivery executive$22,000$24,000$26,000
1 Cashier$20,000$22,000$24,000
Total Salaries$233,000$247,000$261,000

Financial Plan

Flawless Lounge Inc. has come up with a comprehensive financial plan which is important when starting your own eyelash extension business. It is critical to make strategic financial decisions and analyze various parameters before opening a business. In this case, Joan Stuggard intends to raise most of the business capital from her personal savings. However, has two investors who will provide a share of the initial capital to start the eyelash extension business. In addition, a bank loan shall be sought to finance the budget deficit. Starting my own eyelash extension business demands the formulation of a clear financial roadmap to guide business operations.

Below is a comprehensive financial analysis for Flawless Lounge Inc.

8.1 Important Assumptions

The financial forecast for Flawless Lounge Inc. is based on the assumptions below.

 General Assumptions   
Year 1Year 2Year 3
Plan Month123
Current Interest Rate14.00%16.00%18.00%
Long-term Interest Rate5.00%5.00%5.00%
Tax Rate12.00%15.00%19.00%
Other000

8.2 Brake-even Analysis

Flawless Lounge Inc. brake-even analysis is shown in the graph below.

Eyelash Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5000
Monthly Revenue Break-even$230
Assumptions:
Average Per-Unit Revenue$175.00
Average Per-Unit Variable Cost$2.00
Estimated Monthly Fixed Cost$243,000

8.3 Projected Profit and Loss

Profit and loss information for Flawless Lounge Inc. as calculated on a monthly and annual basis is indicated below.

 Pro Forma Profit And Loss   
Year 1Year 2Year 3
Sales$820,000$840,000$860,000
Direct Cost of Sales$100,000$120,000$140,000
Other$0$0$0
TOTAL COST OF SALES$920,000 $960,000 $1,000,000
Gross Margin$420,000$450,000$480,000
Gross Margin %65.00%70.00%75.00%
Expenses
Payroll$230,000$260,000$290,000
Sales and Marketing and Other Expenses$6,000$8,000$10,000
Depreciation$4,000$6,000$8,000
Leased Equipment$0$0$0
Utilities$6,000$8,000$10,000
Insurance$2,000$2,500$3,000
Rent$8,000$10,000$12,000
Payroll Taxes$25,000$28,000$31,000
Other$0$0$0
Total Operating Expenses$320,000$350,000$380,000
Profit Before Interest and Taxes$100,000$130,000$160,000
EBITDA$40,000$60,000$80,000
Interest Expense$0$0$0
Taxes Incurred$30,000$35,000$40,000
Net Profit$120,000$140,000$160,000
Net Profit/Sales40.00%50.00%60.00%

8.3.1 Monthly Profit

Eyelash Business Plan - Profit Monthly

8.3.2 Yearly Profit

Eyelash Business Plan - Profit Yearly

8.3.3 Monthly Gross Margin

Eyelash Business Plan - Gross Margin Monthly

8.3.4 Yearly Gross Margin

Profit and Loss Analysis for Flawless Lounge Inc. is illustrated below.

Eyelash Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Below is a summary of Flawless Lounge Inc. Pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.

Eyelash Business Plan - Projected Cash Flow

 Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$100,000$120,000$140,000
Cash from Receivables$10,000$14,000$18,000
SUBTOTAL CASH FROM OPERATIONS$110,000 $134,000 $158,000
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$80,000 $85,000 $90,000
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$15,000$20,000$25,000
Bill Payments$18,000$21,000$24,000
SUBTOTAL SPENT ON OPERATIONS$33,000 $41,000 $49,000
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
Dividends$0$0$0
SUBTOTAL CASH SPENT$33,000 $41,000 $490,000
Net Cash Flow$15,000$18,000$21,000
Cash Balance$20,000$24,000$30,000

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Flawless Lounge Inc. that shows assets, liabilities, capital, long term assets and current liabilities.

 Pro Forma Balance Sheet   
AssetsYear 1Year 2Year 3
Current Assets
Cash$280,000$320,000$360,000
Accounts Receivable$12,000$16,000$20,000
Inventory$5,000$7,000$6,000
Other Current Assets$5,000$5,000$5,000
TOTAL CURRENT ASSETS$302,000 $348,000 $391,000
Long-term Assets
Long-term Assets$12,000$15,000$18,000
Accumulated Depreciation$14,000$16,000$18,000
TOTAL LONG-TERM ASSETS$4,000 $3,000 $2,000
TOTAL ASSETS$332,000 $382,000 $429,000
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$20,000$24,000$28,000
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
SUBTOTAL CURRENT LIABILITIES$20,000 $24,000 $28,000
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$22,000 $26,000 $30,000
Paid-in Capital$27,000$27,000$27,000
Retained Earnings$20,000$30,000$40,000
Earnings$80,000$100,000$120,000
TOTAL CAPITAL$220,000 $240,000 $260,000
TOTAL LIABILITIES AND CAPITAL$210,000 $230,000 $270,000
Net Worth$400,000$420,000$440,000

8.6 Business Ratios

The following is the Ratio Analysis, Business Ratios and Business Net Worth for Flawless Lounge Inc.

 Ratio Analysis    
Year 1Year 2Year 3INDUSTRY PROFILE
Sales Growth12.00%40.00%60.00%6.00%
Percent of Total Assets
Accounts Receivable7.00%4.00%3.00%11.00%
Inventory5.00%3.00%2.00%10.00%
Other Current Assets4.00%3.50%2.20%28.00%
Total Current Assets100.00%120.00%130.00%56.00%
Long-term Assets-6.00%-18.00%-20.00%43.50%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities7.00%5.00%3.00%20.50%
Long-term Liabilities0.00%0.00%0.00%18.20%
Total Liabilities6.00%3.00%1.60%37.50%
NET WORTH95.00%82.00%105.00%35.00%
Percent of Sales
Sales100.00%100.00%100.00%100.00%
Gross Margin74.00%78.00%82.00%0.00%
Selling, General & Administrative Expenses65.00%80.00%65.00%55.00%
Advertising Expenses4.00%3.00%2.50%4.20%
Profit Before Interest and Taxes25.00%28.00%31.00%2.50%
Main Ratios
Current1316191.8
Quick2629322.5
Total Debt to Total Assets5.05%3.00%1.80%65.00%
Pre-tax Return on Net Worth70.00%80.00%90.00%3.00%
Pre-tax Return on Assets65.00%60.00%70.00%10.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin18.00%22.00%24.00%N.A.
Return on Equity55.00%60.00%65.00%N.A.
Activity Ratios
Accounts Receivable Turnover6810N.A.
Collection Days95105110N.A.
Inventory Turnover172125N.A.
Accounts Payable Turnover1215.218N.A.
Payment Days252525N.A.
Total Asset Turnover2.82.62.4N.A.
Debt Ratios
Debt to Net Worth0-0.07-0.04N.A.
Current Liab. to Liab.000N.A.
Liquidity Ratios
Net Working Capital$300,000$330,000$360,000N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales1.451.480.35N.A.
Current Debt/Total Assets8%5%3%N.A.
Acid Test262933N.A.
Sales/Net Worth3.42.21.2N.A.
Dividend Payout000N.A.