Table of Content

    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 Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
    Individual customers 35% 30,000 32,000 34,000 36,000 38,000 10.00%
    Beauty Parlors 30% 25,000 27,000 29,000 31,000 33,000 14.00%
    Cosmetic shops 20% 20,000 22,000 24,000 26,000 28,000 12.00%
    Make-up artists 15% 15,000 17,000 19,000 21,000 23,000 9.00%
    Total 100% 90,000 98,000              106,000 114,000 122,000 18.00%

    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 business 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 Sales Year 1 Year 2 Year 3
    Eyelash extensions 300,000 310,000 320,000
    Tinting and threading 310,000 320,000 330,000
    Selling eyelash extension products 200,000 220,000 240,000
    TOTAL UNIT SALES 810,000 840,000 870,000
    Unit Prices Year 1 Year 2 Year 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 Costs Year 1 Year 2 Year 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 1 Year 2 Year 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 for business plan 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 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 14.00% 16.00% 18.00%
    Long-term Interest Rate 5.00% 5.00% 5.00%
    Tax Rate 12.00% 15.00% 19.00%
    Other 0 0 0

    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-even 5000
    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 1 Year 2 Year 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/Sales 40.00% 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 Received Year 1 Year 2 Year 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
    Expenditures Year 1 Year 2 Year 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      
    Assets Year 1 Year 2 Year 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 Capital Year 1 Year 2 Year 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 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 12.00% 40.00% 60.00% 6.00%
    Percent of Total Assets
    Accounts Receivable 7.00% 4.00% 3.00% 11.00%
    Inventory 5.00% 3.00% 2.00% 10.00%
    Other Current Assets 4.00% 3.50% 2.20% 28.00%
    Total Current Assets 100.00% 120.00% 130.00% 56.00%
    Long-term Assets -6.00% -18.00% -20.00% 43.50%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 7.00% 5.00% 3.00% 20.50%
    Long-term Liabilities 0.00% 0.00% 0.00% 18.20%
    Total Liabilities 6.00% 3.00% 1.60% 37.50%
    NET WORTH 95.00% 82.00% 105.00% 35.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 74.00% 78.00% 82.00% 0.00%
    Selling, General & Administrative Expenses 65.00% 80.00% 65.00% 55.00%
    Advertising Expenses 4.00% 3.00% 2.50% 4.20%
    Profit Before Interest and Taxes 25.00% 28.00% 31.00% 2.50%
    Main Ratios
    Current 13 16 19 1.8
    Quick 26 29 32 2.5
    Total Debt to Total Assets 5.05% 3.00% 1.80% 65.00%
    Pre-tax Return on Net Worth 70.00% 80.00% 90.00% 3.00%
    Pre-tax Return on Assets 65.00% 60.00% 70.00% 10.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 18.00% 22.00% 24.00% N.A.
    Return on Equity 55.00% 60.00% 65.00% N.A.
    Activity Ratios
    Accounts Receivable Turnover 6 8 10 N.A.
    Collection Days 95 105 110 N.A.
    Inventory Turnover 17 21 25 N.A.
    Accounts Payable Turnover 12 15.2 18 N.A.
    Payment Days 25 25 25 N.A.
    Total Asset Turnover 2.8 2.6 2.4 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.07 -0.04 N.A.
    Current Liab. to Liab. 0 0 0 N.A.
    Liquidity Ratios
    Net Working Capital $300,000 $330,000 $360,000 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 1.45 1.48 0.35 N.A.
    Current Debt/Total Assets 8% 5% 3% N.A.
    Acid Test 26 29 33 N.A.
    Sales/Net Worth 3.4 2.2 1.2 N.A.
    Dividend Payout 0 0 0 N.A.

    Download Eyelash Extension Business Plan Sample in pdf

    Professional OGS capital writers specialized also in themes such as business plan for a nail salon, nail polish business plan, business plan for a salon, tanning bed business plan, tattoo shop business plan, business plan for beauty supply store and many others.