business plan for startup beauty supply store

Beauty Supply Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Beauty Supply Store

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

The beauty industry is such that have continued to soar high, and more and more people are delving into this line of trade. Starting a beauty supply store is one of the best paths to walk.

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Why? This is because it guarantees good returns on investment because there is hardly any household that does not use one form of beauty product. This is one of the reasons why the beauty supply store business is the best.

A Sample Beauty Supply Store Business Plan Template

1. industry overview.

Beauty supply stores sell a wide range of beauty products, from makeup to sun care. Skin care, cosmetics and hair care products are the most retailed products in this industry. Beauty, Cosmetics & Fragrance Stores Industry comprises of stores that predominantly retail cosmetics, perfumes, toiletries and personal grooming products et al.

Starting a beauty, cosmetics & fragrance store is not a difficult business to start and it is not so capital intensive especially if you choose to start on a small scale within your neighborhood. Getting the right brands that people want to buy and good stock keeping records are the secrets of running a retail business such as beauty, cosmetics & fragrance stores.

Beauty, Cosmetics & Fragrance Stores Industry is indeed a large industry and pretty much active in countries such as united states of America, United Kingdom, France, Italy, Holland, Switzerland, Japan, China, Germany, and Canada et al.

Statistics has it that in the United States of America alone, there are about 91,236 registered beauty, cosmetics and fragrance stores responsible for employing about 230,527 and the industry rakes in a whooping sum of $21 billion annually.

The industry is projected to enjoy 4.7 percent annual growth. The establishment in this industry that has a dominant market share in the United States of America are; L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon , Cosmetics & Fragrance Inc.

A closer study of the industry activities shows that skin care, which includes lotions and face creams, accounts for the largest share of revenue in the industry at an estimated 27.0 percent. Most of these items are considered less discretionary than cosmetics and fragrances, which has allowed this market segment to grow even during times of weak consumer spending, as was the case amid the recession period.

As a matter of fact, innovative skin care products specifically designed to combat aging has increased earnings for this industry. So also, over the last five years, expansive product selections and skilled staff have driven revenue for the Beauty, Cosmetics and Fragrance Stores industry.

Studies shows that an increase in youth-targeted cosmetics, the expansion of male-specific products and the reformulation of anti – aging staples have given specialty beauty stores a new array of items to offer customers. If you are contemplating starting your own beauty, cosmetics & fragrance store business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies.

If you get some key factors wrong before starting your any business, then you are likely going to struggle to stay afloat. But over and above, beauty, cosmetics & fragrance store business is a thriving and profitable business especially if you are creative and ready to take on the available market within the location where your business is located.

2. Executive Summary

Daniella Beauty Holdings, Inc. is a registered and standard beauty, cosmetics & fragrance store business that will be based in Sacramento – California, USA.

We have been able to secure a corner piece location where we intend launching our first beauty, cosmetics & fragrance store before venturing out to open chains of beauty, cosmetics & fragrance stores all across major cities in the United States of America.

Our business goal as a standard beauty, cosmetics & fragrance store business is to become the number one choice for residence in the whole of the communities where we intend positioning our stores.

We are set to retail a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries. We have been able to secure permits from all relevant departments in the State of California to run the business.

Daniella Beauty Holdings, Inc. is set to redefine how standard beauty, cosmetics & fragrance store business should be run, not just in Sacramento – California, but also in the whole of the United States of America. Which is why we have put plans in place for continuous training of all our sales girls, sales boys, store keepers and other back office staff members at regular interval.

It is a known fact that the demand for beauty, cosmetics & fragrance products is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the communities where we intend retailing our beauty, cosmetics & fragrance products.

In the nearest future, we will ensure that we create a wide range of distribution channels via franchising. With that, we know we will be able to maximize profits in our business. Our strongest selling point at Daniella Beauty Holdings, Inc. is the unique strategy of ensuring that we strategically position our stores in different locations prone to high human traffic all around key cities in the United States.

There is hardly any customer who would visit our beauty, cosmetics & fragrance store business that would not see the kind of beauty, cosmetics & fragrance products et al that they are looking for and who would want to come back and make more purchase – we take delight in welcoming repeated customers over and over again.

Daniella Beauty Holdings, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Our plan is to position Daniella Beauty Holdings, Inc. to become the leading brand in the beauty, cosmetics & fragrance line of business in the whole of Sacramento – California, and also to be amongst the top 2 beauty, cosmetics & fragrance store brand in the whole of California within the first 10 years of starting our business.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Sacramento is the right place to launch this type of business before spreading to other cities all across the United States of America.

Daniella Beauty Holdings, Inc. is a family business that is owned by Mrs. Daniella Lancashire and her immediate family members. Mrs. Daniella Lancashire has a B.Sc. in Business Administration, with well over 10 years of experience in the beauty, cosmetics & fragrance stores industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Sacramento – California, but there is a plan to open chains of beauty, cosmetics & fragrance stores all across key cities in the United States of America.

3. Our Products and Services

At Daniella Beauty Holdings, Inc. we are set to retail a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries.

Our intention of starting Daniella Beauty Holdings, Inc. is to make profits from the beauty, cosmetics & fragrance stores industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Here are the products that will be found in our beauty, cosmetics & fragrance store;

• Hair care and shower products
• Skin care products
• Nail care products
• Deodorant and shaving products
• Sun care, baby care and other products

4. Our Mission and Vision Statement

• Our vision as a community based beauty, cosmetics & fragrance store business is to become the number one choice in the whole of Sacramento – California and also to be amongst the top two leading beauty, cosmetics & fragrance stores in the State of California before our 10 th anniversary.
• Our mission is to build a highly successful, profitable business venture; a beauty, cosmetics & fragrance store business that will grow from one store to different locations all around key cities in the United States of America.
• We want to become a one stop beauty, cosmetics & fragrance shop.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our beauty, cosmetics & fragrance store business on the right business foundation.

As a matter of fact, we are set out to build a beauty, cosmetics & fragrance store business that will favorably compete with some of the leading brand such as L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon, Cosmetics & Fragrance Inc. in the United States of America and Canada.

We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied, enjoy cosmetics, perfumes, toiletries, personal grooming products et al bought from our store. In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve.

Which is why will be putting structures and standard operating processes in place that will help us meet our clients demand and run the business on autopilot. The success of our beauty, cosmetics & fragrance store business will be anchored on the team not on any individual.

With the nature of beauty, cosmetics & fragrance store business we intend running and the plan to strategically locate our stores in various locations all around key cities in the United States of America, we are only expected to employ more than it is required to run a conventional beauty, cosmetics & fragrance store business. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – 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.
• Creates, communicates, and implements 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
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• 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.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls goods distribution and supply inventory
• Supervises the workforce in the sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of cosmetics, perfumes, toiletries, personal grooming products et al on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• 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
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represent the company in strategic meetings
• Helps to 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
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the store facility at all times
• Ensures  that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Due to our drive for excellence when it comes to running a standard beauty, cosmetics & fragrance store business, we were able to engage some of the finest business consultants in Sacramento – California to look through our business concept.

Together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard beauty, cosmetics & fragrance store business that can compete favorably with leading brand such as L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon, Cosmetics & Fragrance Inc. in the United States of America

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Sacramento and also in other cities that we intend positioning our chains of stores. Here is a of what we got from the critically conducted SWOT Analysis Daniella Beauty Holdings, Inc.;

The location of our store, the vast experience and qualifications of our management team, the Business model we will be operating on, varieties of payment options, wide range of cosmetics, perfumes, toiletries, personal grooming products et al and our excellent customer service culture will definitely count as a strong strength for Daniella Beauty Holdings, Inc.

A major weakness that may count against us is the fact that we are a new beauty, cosmetics & fragrance store business and we don’t have the financial capacity to compete with multi – million dollars beauty, cosmetics & fragrance stores like L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon, Cosmetics & Fragrance Inc. and co when it comes to retailing cosmetics, perfumes, toiletries, personal grooming products et al at a rock bottom prices.

• Opportunities:

The fact that we are going to be operating our beauty, cosmetics & fragrance stores in one of the busiest streets in Sacramento – California provides us with unlimited opportunities to sell our cosmetics, perfumes, toiletries, personal grooming products et al to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our store; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new beauty, cosmetics & fragrance stores or even a Supermarket, or in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

The beauty, cosmetics & fragrance stores cum retailing business has been in existence for as long as human started trading goods, which is why you can easily find mom and pop shops scattered all around world. In most cases, those people that you find running mom and pop business in a very small scale in a street corner may not have the education that would want them to aspire to run the business on a large scale.

Innovative skin care products specifically designed to combat aging has increased earnings for this industry. So also, over the last five years, expansive product selections and skilled staff have driven revenue for the Beauty, Cosmetics and Fragrance Stores industry.

Studies shows that an increase in youth-targeted cosmetics, the expansion of male-specific products and the reformulation of anti – aging staples have given specialty beauty stores a new array of items to offer customers.

Just like in any retailing business, it is common to find beauty, cosmetics & fragrance stores locating their business in a location with the right demographic composition and a place that is visible to their target market. With that it will be easier for them to make sales and profits.

Lastly, it is a common trend to find beauty, cosmetics & fragrance stores that are determined to stay top if the game retail all sort of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries.

With that, they can be considered a one-stop beauty, cosmetics & fragrance shop and if they retail in rock bottom prices, then they are going to be stay atop for a long time.

8. Our Target Market

As a matter of fact, the beauty, cosmetics & fragrance stores industry has one of the widest range of customers; everybody on planet earth has one or more things that they would need from a beauty, cosmetics & fragrance stores be you an adult or a kid.

It is difficult to find people around who don’t make use of cosmetics, perfumes, toiletries, personal grooming products et al.

In view of that, we have positioned our beauty, cosmetics & fragrance store to service the residence of Sacramento – California and every other location where our chains of stores will be located all over the United States of America. 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 retail a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries to the following groups of people;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

A close study of the beauty, cosmetics & fragrance stores 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 stiffer competition and we are well prepared to compete favorably with other leading the beauty, cosmetics & fragrance stores in Sacramento – California. Daniella Beauty Holdings, Inc. is launching a standard beauty, cosmetics & fragrance store that will indeed become the preferred choice of residence of Sacramento – California.

Our beauty, cosmetics & fragrance stores is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Sacramento – California. We have enough parking space that can accommodate well over 20 cars per time.

One thing is certain; we will ensure that we have a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries available in our store at all times.

It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Daniella Beauty Holdings, Inc. a one-stop beauty, cosmetics & fragrance shop. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups beauty, cosmetics & fragrance stores) 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

Daniella Beauty Holdings, Inc. is in business to retail a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries to the residence of Sacramento – California.

We are in the beauty, cosmetics & fragrance stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries at affordable prices. We will retail products such as;

10. Sales Forecast

One thing is certain when it comes to beauty, cosmetics & fragrance stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Sacramento – California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the beauty, cosmetics & fragrance stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Sacramento – California.

Below are the sales projection for Daniella Beauty Holdings, Inc., it is based on the location of our business and other factors as it relates to candy stores start – ups in the United States;

• First Fiscal Year-: $100,000
• Second Fiscal Year-:  $250,000
• Third Fiscal Year-:  $650,000

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

Before choosing a location for Daniella Beauty Holdings, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Sacramento – California.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the beauty, cosmetics & fragrance stores 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 Sacramento – California.

In other to continue to be in business and grow, we must continue to sell the wide range of cosmetics, perfumes, toiletries, personal grooming products et al that are available in our store which is why we will go all out to empower or sales and marketing team to deliver.

In summary, Daniella Beauty Holdings, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our store in a grand style with a party for all.
• Introduce our beauty, cosmetics & fragrance store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Sacramento – California
• Ensure that we have a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our store
• Position our signage / flexi banners at strategic places around Sacramento – California
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our store.

11. Publicity and Advertising Strategy

Despite the fact that our beauty, cosmetics & fragrance store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our store.

Daniella Beauty Holdings, Inc. has a long term plan of opening chains of stores in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Sacramento – California before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Daniella Beauty Holdings, Inc.;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Sacramento – California
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Daniella Beauty Holdings, Inc. and the products we sell
• Advertise our business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to retail businesses like beauty, cosmetics & fragrance stores, supermarkets and grocery stores et al, it is normal for consumers to go to places (retail outlets) where they can get cosmetics, perfumes, toiletries, personal grooming products et al at cheaper price.

Which is why big player in the beauty, cosmetics & fragrance stores industry like L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon, Cosmetics & Fragrance Inc. et al will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with L Brands, Sally Beauty Holdings, Inc., Sephora and Ulta Salon, Cosmetics & Fragrance Inc. and co but we will ensure that the prices of all the cosmetics, perfumes, toiletries, personal grooming products et al that are available in our store are competitive with what is obtainable amongst beauty, cosmetics & fragrance stores within our level.

• Payment Options

The payment policy adopted by Daniella Beauty Holdings, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them 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 Daniella Beauty Holdings, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• 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 farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a beauty, cosmetics & fragrance store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up 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) – $3,300.
• Marketing promotion expenses for the grand opening of Daniella Beauty Holdings, 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 month at $1.76 per square feet in the total amount of $53,300.
• Cost for Shop remodeling (construction of racks and shelves) – $5,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries) – $25,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for store equipment (cash register, security, ventilation, signage) – $3,750
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $3,000
• Miscellaneous: $10,000

We would need an estimate of $250,000 to successfully set up our beauty supply store in Fairhope – Alabama. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Daniella Beauty Holdings, Inc.

Daniella Beauty Holdings, Inc. is a family business that is solely owned and financed by Mrs. Daniella Lancashire and her immediate family members. We do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document 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 numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Daniella Beauty Holdings, 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 wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries 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.

Daniella Beauty Holdings, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. 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 remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: 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 Marketing / 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
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries: In Progress

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How to write a business plan for your beauty supply store.

Starting a cosmetics store is a great idea as it provides a valuable service to customers and can be a profitable venture due to the high demand for beauty products.

Additionally, it is relatively easy to set up and manage, making it an attractive business opportunity.

However, prior to that, you must have a business plan.

A business plan is a critical component of starting a new business. It outlines the goals and objectives of the business, as well as the strategies for achieving them. It also provides a roadmap for the future of the business, helping to ensure that it will be a success.

In short, a good business plan will help make sure your beauty boutique is profitable .

What should you include in the business plan for a cosmetics store? What should be the main focus areas? Which key financial data points should be included? What's the best way to create a business plan quickly and effectively?

This article will provide answers to all these questions!

Moreover, bear in mind that it is up to you whether you choose to start your business plan from scratch.

You can download our customizable business plan for a cosmetics store and adapt it to suit your business needs.

Mapping out a business plan for a cosmetics store

Is it worthwhile to invest time in a business plan for your beauty boutique.

Yes, you should invest time in a business plan for your beauty boutique as it will help you to set achievable goals and create a successful strategy.

Developing a robust business plan will enable you to:

• get familiar with the beauty supply store market
• make sure you are aware of new trends and include them in your project
• find what makes a cosmetics store thriving
• understand customers' beauty product preferences and trends to offer a diverse selection of quality beauty supplies
• find a great unique value proposition for your cosmetic retail store
• monitor competitor activities and tactics
• find relevant competitive advantages for your beauty boutique
• find a business model that secures a healthy net income
• establish and execute a strategic action plan to drive sustainable growth
• identify and manage risks specific to a beauty supply store, including product quality, inventory management, and customer preferences

Our team has drafted a business plan for a cosmetics store that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a cosmetics store?

A business plan comprises a diverse set of metrics and relevant data. It must be well structured, to make easy to read and digest.

When we built and designed our business plan for a cosmetics store , we ensured it was organized correctly.

We've split it into 5 parts: Opportunity, Project, Market Research, Strategy and Finances: Opportunity, Project, Market Research, Strategy and Finances.

1. Market Opportunity

The initial section is named "Market Opportunity."

Explore this section to access valuable data and metrics related to the beauty supply store industry, providing insights for entrepreneurs.

The data here is always up to date; we update it biannually.

2. Project Presentation

The second part is dedicated to the "Project" of your beauty boutique. Here, you can describe the range of beauty products offered, including cosmetics, skincare, haircare, and tools, your brand partnerships, customer loyalty programs, in-store and online shopping experiences, and the unique value proposition that caters to beauty enthusiasts and professionals.

Also include a short description about yourself at the end of this section.

Discuss your passion for beauty products, your range of beauty supplies, and how you plan to create a comprehensive and personalized shopping experience for customers at your beauty supply store. Highlight your selection of high-quality brands, your knowledgeable staff, and your dedication to providing exceptional customer service that caters to the diverse needs and preferences of beauty enthusiasts through your beauty supply store.

We prepared language in our business plan. Adapt it to suit your idea precisely.

3. Market Research

The third part is the "Market Research" section.

The purpose of this section is to introduce the market segments for your beauty boutique.

It includes a competition study, outlining other beauty supply stores in the area. Your store's unique selection of beauty products and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section encompasses a complete growth plan, delineating the necessary steps and initiatives to make your beauty boutique exceptionally profitable.

Additionally, this section provides a marketing plan, a strategy to handle risks, and a fully completed Business Model Canvas.

5. Finances

Ultimately, the "Finances" section presents a comprehensive view of the financials and predictions for your project.

How to make an Executive Summary for a cosmetics store?

The Executive Summary acts as an opening to the business plan of your beauty boutique.

Don't make it longer than 2 pages, and include only the most important information.

This document is meant to make the reader curious to know more about your business plan.

In the Executive Summary of your beauty boutique, provide responses to the following: what products do you sell in your beauty supply store? who is your target market? are there other beauty supply stores nearby? what makes your store unique? what funding do you require?

How to do the market analysis for a cosmetics store?

Conducting a market study for your beauty boutique enables you to grasp external factors like customer demands for cosmetics and beauty products, competition within the beauty industry, and emerging trends in skincare and makeup.

By conducting a thorough market analysis, a cosmetics store can understand customer preferences, offer a diverse selection of beauty products, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased sales, and a prominent position in the local beauty industry.

Here is what you will find in the "Market Research" section of our business plan for a cosmetics store :

• recent data and statistics about beauty supply stores, including popular beauty products, beauty brand market share, and consumer spending habits
• a compilation of potential customer segments for a cosmetics store
• the competitor study
• the potential competitive advantages for a cosmetics store

The key points of the business plan for a cosmetics store

What's the business model of a cosmetics store, business model of a cosmetics store.

A beauty supply store's business model revolves around offering a wide range of beauty products, cosmetics, and personal care items to customers. Revenue is generated through product sales, potentially offering beauty consultations or educational workshops.

The business model focuses on sourcing popular and high-quality beauty brands, providing exceptional customer service and product knowledge, creating an inviting and well-stocked store environment, effective marketing to target beauty enthusiasts, and building strong customer relationships based on trust and beauty expertise.

Success depends on staying updated with beauty trends and innovations, fostering relationships with beauty brands or suppliers, fostering positive customer experiences and recommendations, and continuously offering new and exclusive beauty products that cater to different customer needs and preferences.

Business model vs Business plan

Avoid confusing "business plan" with "business model."

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you leverage the Business Model Canvas as a user-friendly framework to illustrate the structure of your business.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a cosmetics store .

How do you identify the market segments of a cosmetics store?

Segmenting the market for your beauty boutique involves categorizing your potential customers into different groups based on their specific beauty needs and preferences.

These categories may include factors such as skincare, haircare, makeup, or nail care.

By segmenting your market, you can curate a diverse range of products that cater to each segment's unique requirements. For instance, you might offer a variety of organic skincare products for customers seeking natural alternatives, a wide selection of haircare tools for salon professionals, or specialized makeup brands for professional makeup artists.

Market segmentation allows you to target your marketing efforts and product offerings to meet the specific demands of each customer group, enhancing customer satisfaction and increasing the likelihood of repeat business.

In the business plan for a cosmetics store , you will find a complete market segmentation that allows you to identify your potential customers effectively.

How to conduct a competitor analysis for a cosmetics store?

Without a doubt, you won't be the only beauty supply store business in your market. There are other stores offering a variety of beauty products and cosmetics.

Develop a solid business plan by conducting a comprehensive analysis of your competitors, including evaluating their strengths and weaknesses.

Take stock of their weaknesses (such as limited product range, inconsistent product availability, or poor customer service).

Why is it crucial to notice these aspects? Because these weaknesses can impact customer satisfaction when shopping at beauty supply stores.

By focusing on these areas, you can offer a diverse range of high-quality beauty products, provide knowledgeable staff assistance and beauty advice, and create an inviting and visually appealing store environment, establishing your beauty boutique as a go-to destination for all beauty needs.

It's what we call competitive advantages—work on developing them for a distinct business identity.

Here are some examples of competitive advantages for a cosmetics store: wide selection of high-quality beauty products, exclusive and niche brands, knowledgeable staff with beauty expertise, personalized beauty consultations, attractive pricing and discounts, positive customer reviews and recommendations, convenient online shopping.

How to draft a SWOT analysis for a cosmetic store?

A SWOT analysis is useful for starting a cosmetics store as it can help identify strengths, weaknesses, opportunities, and threats to the success of the business.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a cosmetics store

The strengths for a cosmetics store

When we talk about the "S" in SWOT, we're referring to Strengths, which are the project's beneficial features.

For a cosmetics store, some possible strengths include having a wide selection of products, offering competitive prices, providing excellent customer service, and having a knowledgeable staff.

The weaknesses for a cosmetics store

The letter "W" signifies Weaknesses, which are the weak points of the project that need to be addressed.

For a cosmetics store, potential weaknesses could include limited inventory, high overhead costs, lack of customer service, and limited marketing resources.

The opportunities for a cosmetics store

When we talk about the "O" in SWOT, we're referring to Opportunities, which are the external situations or conditions that can be advantageous for the project.

In the case of a cosmetics store, potential opportunities include offering online ordering, partnering with local salons and spas, providing makeup classes, and hosting beauty-related events.

The threats for a cosmetics store

T represents Threats in SWOT, referring to the external factors or circumstances that can pose risks or challenges to the project's goals.

How to elaborate a marketing strategy for a cosmetic store?

A marketing strategy plays a pivotal role in a business plan as it defines how a business will entice customers and generate sales.

A cosmetic store can attract beauty enthusiasts by developing an effective marketing approach that highlights the store's wide range of cosmetic brands, high-quality products, and knowledgeable staff offering personalized beauty advice.

Customers won't shop at your cosmetic store without effective promotion; showcasing the quality of your beauty products, range of brands, and expert beauty advice is crucial.

Are you implementing effective marketing strategies for your cosmetic store? Consider offering personalized beauty consultations or makeup demonstrations, running targeted advertising campaigns during festive seasons or special events, and utilizing social media platforms to showcase the latest beauty trends and product launches.

No need to worry if you have no clue about marketing and communication.

How to build a 3-year financial plan for a cosmetic store?

A solid business plan must include detailed financial information such as projected income, expenses, cash flow, and balance sheets.

When crafting your business plan, you should estimate the projected revenue for your beauty boutique.

The credibility of your business plan relies on revenue projections that are based on sensible and well-supported assumptions, which helps potential investors feel more confident.

Our financial plan for a cosmetics store is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Of course, you'll need to create a preliminary budget for the launch of your beauty boutique. Don't overlook any expense. By the way, we've listed them all in our financial plan!

The break-even analysis is vital for your financial plan because it tells you if you whether your beauty boutique will be profitable or not.

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Beauty Supply Store Business Plan

Used 5,012 times

This Beauty Supply Store Business Plan Template covers all the appropriate sections needed to invest in a beauty supply store. The template will help you to raise money for your business.

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Beauty Supply Store Business Plan Template

Prepared by:

​ [Owner.FirstName] ​

​ [Owner.LastName] ​

Executive Summary

​ [Owner.Company] is a soon-to-be-launched beauty supply store that aims to provide high-quality and reasonably priced beauty products to its customers. We sell product lines that meet people's beauty and skin care needs.

Products and Services:

​ [Owner.Company] aims to provide competitively priced and high-quality beauty supplies to various customers located within our area. We have haircare and skincare products on offer. Moreover, there are nail products and cosmetics available too.

​ [Owner.Company] shall also sell fragrances, body care items, and all the limited branded items that are otherwise hard to find.

Customer Focus

​ [Owner.Company] primarily will serve (men/women) of age groups (add age range) looking for beauty products to meet their body needs. These customers live or work close to our possible location.

Here is a breakout of our target customers:

% of customers: (Give percentage)

Average income: (Give income)

Median Age : (Give age)

(Other details about target customers)

Company Overview

Mission statement:.

Our store wants to serve our customers with the best skin care and beauty products. We want to sell them competitively to earn an excellent profit margin.

Company Introduction:

​ [Owner.Company] is a modern yet well-equipped store with all the basic and advanced beauty and care products. It will be run by [Owner.FirstName] [Owner.LastName] with the help of a management team. We aim to launch the store at the end of this year, giving our customers all the products they require to maintain their looks.

Industry Analysis

Industry overview:.

This store is part of the beauty industry, with various brands competing with each other. This is a fast-paced industry where new products are constantly launching. Our store aims to keep up with the pace to offer all the beauty and care products that the rest of the market has available for sale.

Industry Trends:

(Mention the key market trends such as moisturizing creams, tints, and blush ons)

Customer Analysis

Customer needs:.

The key needs of our customers are:

Reasonably priced beauty products

Quality of skincare items

Availability of the latest beauty and care products

Delivery of products on demand

(Add additional needs)

Target Customer Profile:

We will majorly target these customer segments:

Women aged (Age range): (Mention Details)

Men aged (Age range): (Mention Details)

Competitive Analysis

List of competitors:.

​ [Owner.Company] has direct and indirect competitors with their addresses and other details.

(Competitor A)

(Competitor B)

(Competitor C)

Competitive Advantage:

​ [Owner.Company] has a competitive advantage over its competitors due to the following reasons:

Well-qualified and experienced founder

A disciplined and experienced management team

Excellent location

Flexible opening and closing hours

(Add other advantages)

Marketing Plan

​ [Owner.Company] wants to build a brand that focuses on the following:

Providing competitive prices

Offer high-quality products

Generate monthly profit

(Add any additional focal points)

Promotion Plan:

​ [Owner.Company] aims to follow the following advertising strategies to promote its products.

Local Publications (Explain How)

Customer Loyalty Programs (Explain How)

Word-of-Mouth (Explain How)

(Add additional promotional strategies)

Operations Plan

We aim to rent the following site as the location of our store:

​ [Owner.StreetAddress] ​

​ [Owner.City] , [Owner.State] [Owner.PostalCode] ​

Operational Timings:

​ [Owner.Company] will conduct all its operations based on a walk-in basis. It aims to stay open all seven days of the week from 8 am to 10 pm.

To execute its business model, [Owner.Company] should have the right personnel to perform the following tasks:

Floor sales

Product sales

Hiring and training of staff

Administrative functions

Storing and sourcing of products

Management Team

​ [Owner.Company] is led by [Owner.FirstName] [Owner.LastName] who has extensive experience in running and managing a store. [Owner.FirstName] [Owner.LastName] also has excellent knowledge of beauty products and stays aware of new beauty and care items.

​ [Owner.FirstName] [Owner.LastName] wishes to hire [CustomerServiceManager.FirstName] [CustomerServiceManager.LastName] as their customer service manager. They have (number of years) years of experience in the beauty industry.

Other staff members required are:

Accountant (Part-time or full-time)

Cleaning staff (Number and working hours)

Menial staff (Number and working hours)

Revenue and Cost Drivers

​ [Owner.Company] aims to earn its revenue from the sale of its beauty products. Similarly, its major costs are rent of the store, maintenance expenses, staff salaries, and marketing expenses.

Funding Requirement:

We require funding of (Amount in dollars) in our initial year to spend on:

Working Capital

Lease Agreement

Hiring of staff

Cost of purchasing beauty and skin care products

Key Assumptions and Forecasts:

Our income statements, balance sheets, and cash flow statements for the next three years are below. All the data collected is based on estimations and predicted inflation rates.

(Share balance sheets, income statements, and cash flow statements)

​ [Owner.FirstName] [Owner.LastName] ​

​ [Recipient.FirstName] [Recipient.LastName] ​

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How to Start a Beauty Supply Store in 14 Steps (In-Depth Guide)

Updated:   March 21, 2024

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Opening a beauty supply shop can be a rewarding entrepreneurial endeavor. The global beauty market is valued at $646.20 billion in 2024. With the industry on the rise, it’s a great time for entrepreneurs to get involved.

With the right location, funding, and inventory, your beauty boutique can capture a slice of this massive and expanding market.

This guide will walk you through how to start a beauty supply store. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, forming a legal business entity, and more.

1. Conduct Beauty Supply Store Market Research

Market research is important for any new in-person or online beauty supply store. It offers insight into trends in beauty supplies, details on your target market, and other important information to develop a business plan.

So what’s driving growth in the beauty supply business market? Several interlinked trends are buoying the industry. These include:

• The rise of social media and influencer culture spurring interest in new cosmetics and style trends
• Increasing diversity and demand for products catering to different ethnicities and skin tones
• Growing consumer spending on self-care, grooming, and beauty, especially among Millennials and Gen Z
• Accelerating anti-aging market as Baby Boomers seek out specialty skin solutions

Aspiring entrepreneurs can capitalize on this growth by opening beauty boutiques offering curated selections of hot and emerging beauty products. Success lies in understanding your local demographic makeup and catering inventory to their needs and preferences.

You’ll also need to analyze potential store locations using data on area income levels, traffic patterns, and proximity to complementary businesses like hair salons, nail salons , or spas. As a rule of thumb, seek retail spaces with high foot traffic and disposable income.

With smart planning backed by thorough beauty supply industry market research, there is ample consumer demand to support new beauty boutiques. Use data, not guesswork, to map your path into this vibrant industry. Reach out for guidance in assembling the perfect statistical launchpad for your vision.

2. Analyze the Competition

Understanding the competitive landscape is crucial when launching a new online store or in-person beauty supply retail business. After identifying potential locations through market research, the next step is assessing existing stores that could compete for the same customer base.

For brick-and-mortar competition, start by mapping other beauty supply shops within a 10-15 mile radius of your prospective store. Gather intel by visiting incognito as a customer. Take notes on product assortment, pricing, promotions, and traffic flow.

Look for gaps in inventory where you could better cater to local shopper preferences. Specialty products around skin conditions (acne, eczema) or hair structure (curly, natural) also provide possible openings.

When sizing up competitors, also examine their digital footprint across review sites like Yelp . Scan their website and social media presence. This online dimension is increasingly vital, as e-commerce captures an ever-greater slice of beauty industry revenues.

Build out a feature comparison chart grading each competitor across factors like brand selection, price points, proximity to your planned location, and omnichannel capabilities. Identify their strengths which you’ll need to match or beat. More critically, highlight shortcomings you can improve upon.

You could also sell your beauty products directly to local beauty bars and salons, potentially increasing the number of customers coming your way through word-of-mouth marketing.

3. Costs to Start a Beauty Supply Store Business

Getting a new beauty boutique off the ground requires careful financial planning and budgeting. Between initial outlays for store setup through ongoing overhead, it helps to model expenses accurately based on current industry benchmarks.

Startup Costs

On the start-up side, you’ll need to factor in costs including:

• Inventory – Your opening inventory forms the core investment, with an average of $50,000-$150,000 recommended to offer an appealing variety without overstretching (hair sprays, nail polish and other nail supplies , skin creams, etc.)
• Storefront & Displays – Beauty stores rely heavily on visual merchandising to showcase products. Allow $15,000-30,000 for high-quality fixtures, testers to sample products and decorative wall treatments.
• Permits & Professional Fees – Legal and accounting guidance around business formation will cost around $2,000-5,000. You’ll need a sales tax permit, plus possible business operating and health permits ($50-$500).
• Shop Fittings & Renovation – For leased retail spaces, negotiate with landlords to contribute, but some minor works like painting or adjustments to layout could set you back $5,000 or more.
• Starting Inventory – You don’t want to run short on hot items. Lay out $30,000-$50,000 for your core product lineup, including lipsticks, hair gloss, perfumes , and more, until you gauge demand signals to inform restock quantities.
• Point-of-Sale System – A good POS enables detailed sales tracking and inventory control. Plan $1,000 for an entry-level system and up to $10,000+ for sophisticated software integrations.
• Launch Marketing – It pays to announce your arrival loudly! Invest at least $3,000-$5,000 into attention-grabbing opening promotions and ads across print, digital and local radio.

Realistically, $100,000 makes for a reasonable starting benchmark to get your beauty business off the ground. However, many successful owners bootstrap openings for under $50,000 through savvy inventory buying, negotiated leases, and cost-effective fit-outs.

Ongoing Costs

Once open, running costs like rent, inventory, staffing, and utilities become front of mind. Budget for:

• Rent & Rates – Retail leases average $25-$45 per sq. ft. annually, or around $3,500 monthly for a 1,500 sq. ft boutique. Factor in property taxes, insurance, and maintenance fees too.
• Staffing – Employees are most stores’ biggest expense. With base pay, and taxes/benefits, expect $45,000+ annually for a full-time retail manager. Casual wage budgets run over 20% of revenue.
• Inventory – Restock anywhere from 10-25% of total retail value monthly. Beauty products need continual updating to capitalize on new releases.
• Utilities – Power, telecoms, waste management, and other utilities can add $750+ monthly.
• Software Subscriptions – Your POS, payroll, accounting, and other business platforms will tally $300+ in SAAS fees each month.
• Advertising – Allot 5-10% of revenue for retention marketing and promotions to keep customer momentum going strong.

While costs seem daunting upfront, the math can work very favorably for beauty supply stores. Gross profit margins on cosmetics top 45%. Get your pricing and inventory quality right, and strong cash flow awaits. Speak to an expert to structure budgets tailored to your vision.

4. Form a Legal Business Entity

Deciding on your business structure involves weighing factors like setup costs, tax treatment, liability protection, and ease of operations. For beauty boutiques, forming a limited liability company (LLC) offers the best blend of benefits without unnecessary complexity.

Sole Proprietorship

Operating as a sole trader is the simplest and cheapest option, you continue filing personal tax returns reporting all store profits and losses. Your assets can be seized if the business accrues debts or faces lawsuits. This risk exposure grows as the company scales.

Partnership

Creating a legal partnership allows multiple owners to jointly operate and share profits from the beauty business. You still report income via personal returns and face unlimited liability though. Decision-making and disputes between partners can also prove messy without clear agreements.

Limited Liability Company (LLC)

Forming an LLC protects your assets if the business runs into financial or legal troubles. It limits liability, hence the name. You get taxation flexibility for lower overheads too, either taxed as a pass-through entity or corporation depending on what suits you.

Corporation

A standalone corporation offers liability safeguards too but involves more paperwork like issuing stock certificates and directors meetings. Reporting requirements are extensive around payroll, dividends, and double-tax filings. Administrative overheads quickly accumulate, more suitable once revenues exceed several million.

5. Register Your Business For Taxes

With your business structure formalized, the next compliance step is obtaining an Employer Identification Number (EIN) from the IRS. Much like your social security number, this unique identifier categorizes your shop for federal tax purposes around issues like payroll, banking, and licensing.

While sole proprietors can use their SSNs, having an EIN is advisable for liability protection. It also eases the administration if you take on employees down the track.

Good news – registering for an EIN takes just minutes online. Simply:

• Go to IRS EIN Assistant
• Select view additional types including View Additional Types Including Estate and Trust, Real Estate, and Others to specify your beauty boutique.
• Follow the step-by-step questionnaire, adding your business details like name and address.

Once submitted, you will receive your EIN immediately. This ID number then carries forward across state and federal tax documentation relating to your store.

With your EIN sorted, don’t forget local sales tax obligations. Requirements differ across states, but often you must register for a seller’s permit, or sales tax ID, through your State Tax Authority. This covers charging and remitting sales tax on taxable goods.

6. Setup Your Accounting

With inventories to track, sales taxes to remit, and payroll soon potentially on the books, solid accounting foundations are essential for boutique success. Getting the right systems and professional support provides clarity around profitability while avoiding stressful tax headaches or audits down the track.

Accounting Software

Cloud accounting platforms like QuickBooks seamlessly log every transaction from inventory orders to customer sales. Integrations with bank feeds and payment processors auto-sync activity for hands-free data entry. This real-time visibility lets you make smarter decisions based on cash flow and margins.

Partner With An Accountant

While software handles much grunt work, working with an accountant pays dividends. A good adviser assists with key functions like:

• Accurately setting up charts of accounts and inventory items tailored to boutique needs
• Streamlining supplier invoices and bill payments
• Reconciling bank and card statements
• Calculating and filing sales taxes quarterly
• Preparing monthly Profit & Loss statements
• Optimizing tax liability through deductions/credits
• Annual documentation for income tax returns

Expect to invest around $200 per month for ad-hoc advice, with year-end filings costing $1,000+. However, the expertise boosts compliance while uncovering plenty of savings.

Separate Business Finances

Never mix business and personal finances. Operating via a dedicated business checking account and credit card simplifies reconciliation while protecting assets if the company hits headwinds.

Applying for a business card works much like a personal application. Credit limits correspond with both your score and company revenue. Building commercial credit history also supports future growth plans like financing a second store.

7. Obtain Licenses and Permits

With your business structure and tax registrations complete, securing relevant operational permits ensures full legal compliance before opening doors. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Most regions require all commercial entities to hold a general business license. This verifies formal approval to trade. Applications list details like ownership structure, location, inventory categories, and store size. Fees are usually under $100 annually.

Local councils zone areas for an approved business activity like retail, commercial, or industrial. Opening a storefront beauty shop generally falls under retail zoning but check if conditional use permits apply. These confirm neighborhood suitability. Fines apply for non-compliant trading.

Occupancy permits ensure your boutique meets state codes around safety, accessibility, and fire preparedness. Officials check aspects like:

• Adequate ventilation
• Functioning sprinklers and smoke alarms
• Marked emergency exits
• Shelving load limits
• Accessibility like wheelchair-friendly counters

Scheduling inspections early gives time to address any issues like installing extra emergency lighting. These help avoid delayed openings.

As beauty products for skin and hair involve chemicals and contact with customers, specialized health permits may be needed depending on your state. These confirm the following hygiene and disposal protocols for opened testers and tools like makeup brushes. Check exact requirements.

Some jurisdictions require specialized seller’s permits if retailing select product categories like salon brands not intended for public resale. Your supplier can advise which certificates apply before purchasing wholesale inventory.

8. Get Business Insurance

Business insurance shields your boutique from financial peril should the unexpected strike. While not mandatory, coverage grants peace of mind against lawsuits, property damage, inventory loss, and other risks capable of crippling operations.

Consider the vulnerability without protection, a customer slips and falls, resulting in a public liability claim for medical bills and lost income potentially running to hundreds of thousands of dollars. Elsewhere, an electrical fault sparks a fire and destroys your entire stock.

Trading halts without funds to restock. Alternatively, an employee theft and selling incident leads to both inventory losses alongside potential brand reputation damage if items were improperly sourced.

The right insurance plan defends against such scenarios through a blend of public liability, property and contents, business interruption, and employee theft coverage. Public liability covers payouts to customers injured on your premises.

Property and contents replace stolen, damaged, or lost stock and fixtures. Business interruption provides funding to cover operating costs if forced to temporarily close after incidents. Employee theft protection shields against internal stealing and fraud.

Once you select preferred coverage across priorities like public liability, property, interruption, and any other priorities like employee theft, provide details during application submissions like store location, alarm systems, fire preparedness, trading history, and financing.

9. Create an Office Space

An office provides your boutique a “command central” to oversee operations, from buying inventory to marketing campaigns and managing payroll. While retail floor management occupies most days, administrative tasks like reconciling accounts, supplier negotiations, and strategy planning all benefit from a dedicated workspace.

Home Office

Running backend functions from a spare room or basement in your residence makes for convenient money saving. However, storing commercial stock is often prohibited under residential codes. Distractions can also impede focusing on growth initiatives. Expect costs of a few hundred dollars annually for a desk and computer.

Retail Back Office

If your store premises allow, partitioning product storage from a rear office area offers optimization under one roof. Payroll does bump slightly for extra space but no commute delivers convenience. Just beware retail distractions still lurking! Plan $2,500 or more for decent furnishings and fittings.

Coworking Space

Shared offices like WeWork provide stylish, professional environments conducive to tasks needing concentration. Networking with other entrepreneurs fuels inspiration. Hotdesking runs under $300 monthly, capped by private offices of around $800. The social energy also battles the isolation that remote work can bring.

10. Source Your Equipment

A well-equipped store encourages customers to browse and boost basket sizes. From shelving and POS systems to testers and decorative displays, investing in the right fixtures bolsters sales. Balance budget against visual impact when procuring your boutique’s physical foundations.

Specialist beauty store suppliers like Visions Salons , Jaanuu , and LF Beauty offer comprehensive catalogs of salon-grade fixtures from mirrors, seating, and wash basins to runto-wheeled trolleys and floating shelves. While premium, bespoke layouts impress. Expect project costs to run $30,000+.

Savvy secondhand sourcing cuts overheads substantially. Search industry forums, Craigslist , and Facebook Marketplace for dealers or stores closing down that could sell quality fixtures at 30-50%+ discounts. Cosmetic cases offer durability. Scrub carefully to sanitize before showcasing products.

Rent Equipment

Renting delivers flexibility as you test store configurations before committing to permanent purchases. Benefit from latest models like touchscreen POS without large outlays. However, subscription fees add up over longer terms. Use initially before buying favorites.

Lease Equipment

Leasing agreements allow boutique owners to spread costs interest-free over 2-5 years. The asset ownership transfers after the final payment. This avoids large initial capital drains when establishing operations. Credit criteria must be met. Check terms allow for upgrades during the lease period.

11. Establish Your Brand Assets

Crafting a consistent brand identity attracts customers who resonate with your vision and style. From logos and business cards to domain names and store signage, unifying visual and verbal touchpoints helps earn trust and loyalty.

Get A Business Phone Number

Centralize incoming and outbound calls via a dedicated business phone number. Services like RingCentral provide toll-free and local numbers with professional greetings. Route calls from your central system to any employee device. Tracking also helps gauge marketing campaign success.

Create A Logo and Brand Assets

A polished logo epitomizes your boutique’s personality. Favored beauty store logo styles include:

• Letter marks using initials in a stylized font or color palette. Clean, bold, and recognizable.
• Pictorial marks incorporate symbolic visuals like flowers, brushes, or lipstick. Visual impact and character.
• The abstract design is more conceptual around shapes and patterns. Stands out yet is still sophisticated.

Tools like Looka help create logos matched to your brand traits through AI. Expect around $50+. Then use it across business cards, packaging, and uniforms for consistency.

Make Business Cards and Store Signage

Professionally designed business cards should be in front of your wallet whenever networking, meeting suppliers, or introducing yourself to prospective hires. Services like Vistaprint print durable cards affordably. Upload your logo for continuity. Shop signage also keeps your branding prominent on the premises.

Buy A Domain Name

Purchase your brand name or closest available variation ending in “.com” from registrars like Namecheap for under $15 yearly. Avoid hyphens or obscure extensions like .info. Make it easy to remember and type directly into browsers.

Build A Website

Running a beauty supply store online requires a solid website. Either use DIY site builders like Wix to showcase online visually or hire a freelance web developer through Fiverr starting around $500. Reviews and contact forms engage customers 24/7/365. Later integrate e-commerce to sell online.

12. Join Associations and Groups

Tapping into industry networks delivers insider advice and contacts to help navigate common retail hurdles. Connecting locally and online opens up valuable support channels to share beauty tips and learn about your business model.

Join Local Associations

Groups like the Professional Beauty Association organize networking meetups, and startup workshops, and discuss trends in beauty supply products. Annual membership fees run around $50-150 depending on benefits. Check associations operating in your state or city.

Attend Local Events

Keep up to date with beauty service and product innovation by getting into hustle at regular trade fairs and conventions. Meetup also lists informal gatherings of local store owners and staff to share stories and benchmark around everything from inventory tips to marketing tactics proving most effective around grand openings.

Leverage Facebook Groups

For 24/7 community support from fellow beauty retailers across the country, groups like:

• Beauty Supply Store Believers Network
• National Black Owned Beauty Supply Stores Group (USA)

These pages offer invaluable forums to post questions, share advice, and be inspired by success stories. With thousands of active members, insights flow constantly.

13. How to Market a Beauty Supply Store Business

Spreading brand visibility drives discovery from new clientele curious to experience your curated selection and welcoming service. Both digital and real-world channels help relay what makes your boutique special.

Tap Your Network

Before investing in paid advertising, activate immediate connections by sharing news of your opening across personal social media. Ask friends and existing contacts to share posts further to expand reach. Leverage satisfied shoppers into advocates incentivized to refer others for rewards like discounts on future purchases.

Digital Tactics

• Run Google/Facebook ads focused on area demographics and interest categories like makeup tutorials or hair care to attract beauty fanatics.
• Start a YouTube channel creating tutorials using products. Integrate channel links and video content on your website and social pages.
• Blog about makeup/skincare trends and tips to boost local search visibility and inform customers.
• Post product images, store updates, and styling inspiration continuously on Instagram and Facebook.
• Send email newsletters detailing new products or sales events subscribers may have missed onsite.

Traditional Promotions

• Print flyers distributed to local households advertise your opening and unique product lines unavailable elsewhere.
• Occasional direct mail coupons encourage repeat store visits, especially for loyal regulars.
• Eye-catching storefront window displays attract curiosity from passing pedestrian traffic. Change frequently with colorful seasonal or holiday themes tying in the latest items.

Consistency compounds exposure over time. Let both immediate networks and ongoing digital visibility efforts combine to cement your specialty store as the go-to neighborhood beauty destination. The more intriguing the outreach, the faster the breakthrough comes.

14. Focus on the Customer

Delivering exceptional service ensures customers feel valued from the moment they enter your boutique. Take time to get to know regulars by name. Greet first-timers warmly. Offer sincere advice assessing skincare needs and makeup preferences.

Customer service breeds customer loyalty when executed graciously on every visit. Someone appreciated your latest organic moisturizer suggestion and shared that win with five friends.

Momentary frustrations around inventory stockouts disappear with a genuine apology and substituted product recommendation showing you care. Send off each customer happier than when they arrived.

Experiences stick with us more than transactions. Set your beauty store apart through genuine hospitality and attention to detail. Keep listening and delighting so your reputation as the helpful neighborhood boutique where everyone feels pampered keeps growing.

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Home » Beauty Care » Beauty Supply Store

How to Start a Beauty Supply Store [Business Plan]

A beauty supply store is a store that retails a wide range of beauty products. Skincare, cosmetics, hair care products, perfumes, toiletries, personal grooming products et al are the most retailed products in beauty supply stores. Sally Beauty Supply, Bath & Body Works, ULTA Beauty, Sephora, and Merle Norman Cosmetics are the most retailed brands in the beauty industry in the United States.

The global beauty industry market is valued at $511 billion. The beauty and personal care market is estimated to hit a jaw-dropping market size of $716.6 billion by 2025. The US cosmetic market is worth a staggering $62.46 billion.

Skincare is one of the most profitable product categories, as its revenue is projected to generate roughly 177 billion U.S. dollars in 2025. As of 2020, Asia Pacific was the industry leader, accounting for approximately 43 percent of the global market. In February, West Virginia was the state with the highest foot traffic per capita of beauty supply stores. On average, Friday is the busiest day of the week for beauty supply stores.

Steps on How to Start a Beauty Supply Store

Conduct market research.

The first step in the market research process for your beauty supply store is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source for information that will help you maximize your business, information that will tell you what your potential market is looking for from a beauty supply store, the product, and brands that people spend a premium on, and also help you operate your beauty store with less stress.

a. Who is the Target Market for a Beauty Supply Store?

If you are thinking of opening a beauty supply store, then you should make your target demographics all-encompassing. It should include beauty salons, beauticians, and every adult in the neighborhood where your beauty supply store will be located.

b. Is Beauty Supply Store a Profitable Business?

Yes, the beauty supply store business is profitable, and statistics show that the market size, measured by the revenue of the industry, came to $18.9 billion. According to the study, the average woman spends about $313 per month on her appearance. This adds up to $3756 per year or $225,360 throughout a lifetime.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to beauty supply stores, and here are some of them;

• Brick and mortar beauty supply stores
• Online beauty supply stores

d. Who are the Major Competitors?

• Atomy USA Health and Beauty
• Alcantara Cosmetica USA
• Sally Beauty Holdings, Inc.
• Ulta Salon Cosmetics & Fragrance Inc
• Beauty Supply USA
• Beauty Plus Salon
• USA Nail & Beauty Supply
• Oerigo Beauty (Dover, DE USA)
• Sigma Beauty Flagship Store – Mall of America
• Shen Beauty
• Hair USA Beauty Supply
• YO Beauty USA
• Beauty Empire USA
• Sami Beauty Supply
• USA Beauty Care Inc
• Cosmetheque USA Inc
• Beauty Kingdom USA Corporation

e. Are There County or State Regulations or Zoning Laws for Beauty Supply Store Business?

Yes, there are county or state regulations and zoning laws for the beauty supply business. It is important to state that in the United States, government agencies and departments routinely grant variances to rules and regulations. Often, you only have to fill out a short form. In other cases, your request may have to be publicly heard before your city council, zoning board, or other body. Please check with your zoning or planning department to find out what options are available to you.

f. Is There a Franchise for Beauty Supply Store Business?

Yes, there are franchise opportunities for beauty supply stores. They include;

• Beauty Supply Outlet
• Armstrong McCall.

g. What Do You Need to Start a Beauty Supply Store Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop Facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Suppliers of Beauty and Cosmetic Products
• Startup and Working Capital

Memorable Business Name ideas for Beauty Supply Store Business

• Loveth® Beauty Supply Store, Inc.
• Tine and Tyler® Beauty Supply Store, Inc.
• Beauty Nation® Beauty Supply Store, Inc.
• Ted Capstone™ Electric Cars Dealership, Inc.
• Esther Lane® Beauty Supply Store, Inc.
• Al Baroness® Beauty Supply Store, Inc.
• Lady Annie® Online Beauty Supply Store Company
• Macron Martins® Beauty supply Store, LLC
• High End® Beauty Supply Store, Inc.
• Nelly B® Beauty Supply Store, Inc.
• Maria De La Rosa® Beauty Supply Store, Inc.
• Stacy McRib ™ Beauty Supply Store, LLC
• Bridget Decoster™ Beauty Supply Store, Inc.
• Broadway Beauty Supply Store, LLC
• Mark Fernand Beauty Supply Store, Inc.
• Jacinta Borrow® Beauty Supply Store, Inc.
• Eyes of Beholder© Beauty Supply Stores, Inc.
• Georgina Paulson™ Beauty Supply Store, LLC
• Jill Noel™ Beauty Supply Stores, Inc.
• Madonna Whyte® Beauty Supply Store, Inc.

Register Your Business

A. what type of business structure is best for beauty supply store.

Even though there are several options when it comes to the business structure of a beauty supply store, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Beauty Supply Store?

• General Business License
• Seller’s Permit
• Fire and Safety Permit (Fire certificates)
• Federal Export Licenses
• Zonal Permits
• Signage Permit
• State Occupational Licenses
• Operational State Facility Inspections (Building Permits)

d. What Type of Certification is Needed to Open a Beauty Supply Store?

You don’t need any certifications to open a beauty supply store.

e. What Documents are Needed to Open a Beauty Supply Store?

These are some of the basic legal documents you are expected to have if you want to legally run a beauty supply store in the United States of America;

• Business and liability insurance
• Federal Tax Payer’s ID
• Dealer License and Surety Bonds
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a beauty supply store, usually you may not need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a beauty supply store.

When it comes to starting a beauty supply business, the startup costs vary and it could range from $10,000 to over $500,000. This is because the startup inventory is on the high side.

b. What are the Costs Involved in Starting a Beauty Supply Store

• 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) – $3,300.
• Marketing promotion expenses for the grand opening of the beauty supply store for $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 coverage at a total premium – $2,400.
• Cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $53,300.
• Cost for Shop remodeling (construction of racks and shelves) – $5,000.
• 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) – $60,000
• The cost of start-up inventory – $25,000
• Cost for store equipment (cash register, security, ventilation, signage) – $3,750
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a website: $600
• The cost for our opening party: $3,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Beauty Supply Store?

• The size of beauty supply store
• The choice of location
• The required licenses and permits
• The type of beauty supply business (online or bricks and mortar)
• The types and brands of beauty products to be retailed in the store
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the business
• The cost for furnishing and equipping the facility
• The cost for insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the beauty supply store.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your beauty supply store, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will allow you to come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Beauty Supply Store?

• Rent and lease
• Supplies and inventory
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Executive Officer (Owner) – $40,000 Per Year
• Shop Manager – $30,000 Per Year
• Merchandise Manager – $29,630,000 Per Year
• Accountant (Cashier) – $28,500 Per Year
• Sales Boys and Sales Girls – $26,100 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Beauty Supply Store

• Raise money from personal savings and sale of personal stocks and properties
• Raise money from investors and business partners
• Sell shares to interested investors
• Apply for a loan from your bank/banks
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

Stacy McRib ™ Beauty Supply Store, LLC is a registered beauty, cosmetics & fragrance store that will be based in Los Angeles – California, USA. We have been able to secure a corner piece location where we intend to launch our store before venturing out to open chains of beauty stores all across major cities in the United States of America.

b. Products and Service

• Haircare and shower products
• Skincare products
• Nail care products
• Deodorant and shaving products
• Suncare, baby care, and other products

c. Mission Statement

Our mission is to build a highly successful business venture that will grow from one store to different locations all around key cities in the United States of America. We want to become a one-stop beauty, cosmetics & fragrance shop.

Vision Statement

Our vision as a community-based beauty, cosmetics & fragrance store is to become the number one choice in the whole of Los Angeles – California, and also to be amongst the top 2 leading beauty stores in the State of California before our 10 th anniversary.

d. Goals and Objectives

The goals and objectives of our beauty supply store are to provide retail outlets where people can buy a wide range of cosmetics, perfumes, toiletries, and personal grooming products from different manufacturers both from the United States of America and from other countries.

e. Organizational Structure

• Chief Executive Officer (Owner)
• Shop Manager
• Merchandise Manager
• Accountant (Cashier)
• Sales Boys and Girls
• Security Guard

Marketing Plan

A. swot analysis.

The location of our store, the vast experience, and qualification of our management team, the business model we will be operating on, varieties of payment options, a wide range of cosmetics, perfumes, toiletries, personal grooming products et al and our excellent customer service will count as a strong strength for Stacy McRib ™ Beauty Supply Store, LLC.

A major weakness that may count against us is the fact that we are a new beauty, cosmetics & fragrance store and we don’t have the financial capacity to compete with multi-million dollar beauty stores like L Brands, Sally Beauty Holdings, Inc., Sephora, and Ulta Salon, Cosmetics & Fragrance Inc. and co when it comes to retailing products at rock bottom prices.

Opportunities:

The fact that we are going to be operating our beauty, cosmetics & fragrance store in one of the busiest streets in Los Angeles – California provides us with unlimited opportunities to sell our products to a large number of people. We have been able to conduct thorough feasibility studies and market surveys and we know what our potential clients will be looking for when they visit our store; we are well-positioned to take on the opportunities that come our way.

Just like any other business, one of the major threats that we are likely going to face is an economic downturn. It is a fact that an economic downturn affects purchasing or spending power. Another threat that may likely confront us is the arrival of new beauty, cosmetics & fragrance stores, or even a supermarket, in the same location where ours is located.

b. How Do Beauty Supply Stores Make Money?

Beauty supply stores make money by selling a wide range of cosmetics, perfumes, toiletries, personal grooming products et al from different manufacturers both from the United States of America and from other countries of the world.

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Sales & Advertising Strategies

• Place adverts on both print (newspapers, beauty care, and cosmetics magazines) and electronic media platforms
• Sponsor relevant community-based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
• Install your Bill Boards in strategic locations all around your city or state
• Distribute your fliers and handbills in target areas
• Contact every adult in the neighborhood where your beauty supply store will be located informing them about your business and the products you retail
• List your beauty supply store in local directories / yellow pages
• Advertise your beauty supply store on your official website and employ strategies that will help you pull traffic to the site.
• Position your Flexi Banners at strategic positions where your beauty supply store is located.
• Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo.

Financial Projection

A. how much should you charge for your product/service.

Generally, the price of beauty care products depends on the type, size, and brand of the product.

b. How Much Profit Do Beauty Supply Store Owners Make a Year?

It depends, but available reports show that at a minimum, online or in-store, a beauty supply store owner should net from $35,000 to $70,000 annually. The amount you make in a physical location can be tied to where you are – in a big city location you can make from $100,000 to $300,000 annually. You can make as much as a beauty supply store with online sales.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the beauty supply store
• The types and brands of products retailed in the shop
• The location the beauty supply store is covering (online or strictly brick and mortar)
• The management style of the beauty supply store
• The business approach of the beauty supply store
• The advertising and marketing strategies adopted by the store.
• The number of years the beauty supply store is in business

d. What is the Profit Margin of a Beauty Supply Store?

The profit margin of a beauty supply store is not fixed. Typically, beauty and cosmetics stores gain a handful of profits on all products. Margins usually range from 20% to around 60-70%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.

e. What is the Sales Forecast?

Below is the sales forecast of a beauty supply store. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $240,000
• Second Fiscal Year:  $350,000
• Third Fiscal Year: $480,000

Set Up your Shop 

A. how do you choose a perfect location for beauty supply store.

• The demography of the location especially as it relates to the ratio of men to women
• The demand for beauty care products and cosmetics in the location
• The purchasing power of residents of the location
• Accessibility of the location
• The number of beauty supply stores and other outlets that retail beauty care products in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Beauty Supply Store?

• Las Vegas, Nevada
• Los Angeles, California
• Chicago, Illinois
• Boston, Massachusetts
• Silver Spring, Maryland
• Rowland Heights, California
• Portland, Oregon
• New York City, New York
• Atlanta, Georgia
• Dallas, Texas

c. What Equipment is Needed to Operate a Beauty Supply Store?

You should be prepared to purchase receipt issuing machines, POS, and related software apps. You will also need computers or laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others, and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard beauty supply store, you should make plans to hire a competent chief executive officer (owner) shop manager, merchandise manager, accountant (cashier), sales boys and girls, and security guard.

Launch the Business Proper

No beauty supply store opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that with a proper launching of the beauty supply store, you will be able to officially inform people in your city that your beauty supply store is open for business.

a. What Makes a Beauty Supply Store Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is well stocked with different brands and types of beauty care products
• Throw a grand party before officially opening the beauty supply store
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your beauty supply store business
• Leverage on all available online and offline platforms to promote your beauty supply store

b. What Happens During a Typical Day at a Beauty Supply Store?

• The shop is open for the day’s work
• The shop and products are cleaned and well-arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Beauty Supply Store?

• Customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining and bidding skill
• Work experience in a beauty supply store or any retail environment
• Experience in managing people
• Experience in business administration.

More on Beauty Supply Store

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If you’re looking to launch a business in an industry that’s poised for growth, starting a beauty supply company could be a good option. The beauty industry is currently a billion-dollar industry and is expected to grow 11.3% by 2026. Here are five steps to take when starting a beauty supply business.

[ Read more: Startup 2021: A Weekly Guide to Starting a New Business ]

Decide what type of business you’ll start

The first step is to decide on the type of business you want to run. Most people choose to either start a brick-and-mortar business or launch an e-commerce business. There are pros and cons to both options, and the right choice for you really depends on your customer base.

For instance, two-thirds of millennials prefer shopping on an e-commerce platform instead of visiting a physical store. In comparison, just 41% of baby boomers prefer to buy products online. So if you plan to cater to a younger audience, focusing on e-commerce may be the way to go.

[ Read more: How to Open a Successful Online Boutique ]

Find out what licensing and permits you’ll need

There are certain licenses and permits you’ll need before you can get started. The exact requirements will depend on the state you live in and your legal business structure. But at the very least, you’ll need to apply for the following four licenses :

• Retail seller permit: This license allows you to legally sell products for tax purposes. You can apply on your state government’s website.
• Business operation license: This license allows you to do business in your state and costs between $50-$100. You’ll have to renew this license annually.
• Certificate of occupancy: This permit is only necessary for brick-and-mortar businesses. It demonstrates that your property is fit to conduct business in.
• Federal EIN: You can apply for an employer identification number (EIN) for free on the IRS’s website.

A business plan outlines the products you plan to offer, explains how you’ll stand out from competitors, and includes a marketing plan.

Choose the type of products you’ll offer

Next, you’ll decide what kinds of products you plan to offer your customers. You can get ideas by checking out Google Trends or fashion blogs and magazines to see what types of products have a high level of interest.

In the beginning, it’s a good idea to focus on just a few different types of products. Focus on one particular niche, like cruelty-free makeup, and as you begin to build a customer base, you can expand into other areas.

Determine how you’ll distribute your products

Another important factor to consider is how you’ll distribute your products. For instance, if you don’t want to hold inventory, you may want to operate a dropshipping model.

With this business model, a customer will place an order online, and you’ll send that information directly to the supplier. From there, the supplier will ship the products directly to the customer. This is an easier way to operate your business, but you will have less control over the quality of the products and mistakes made during shipping.

You can also choose a manufacturing option, where the products are manufactured specifically for your business, and you own the legal rights to sell those products. However, it can be challenging to find the right manufacturer to partner with.

[ Read more: 5 Things You Need to Know About Dropshipping ]

Come up with a business plan

And finally, you’ll need to outline a detailed business plan. Writing a business plan can be tedious, but it’ll give you a lot of clarity about your business and will be helpful if you ever seek out investors or apply for a small business loan.

A business plan outlines the products you plan to offer, explains how you’ll stand out from competitors, and includes a marketing plan. If you’re not sure where to start, you can download a free business planning template from the SBA.

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Beauty Supply Store Business Plan Sample

Published Jan.30, 2020

Updated Apr.26, 2024

By: Brandi Marcene

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Table of Content

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.

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.

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.

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 dryers
• Hair straighteners
• 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.

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.

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

Marketing Strategy

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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.

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.

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.

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.

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.

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.

Brake-even Analysis

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

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.

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.

ProfitYearly

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.

Projected Balance Sheet

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

Business Ratios

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

Download Beauty Supply Store Business Plan in pdf

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How To Write a Beauty Supply Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for beauty supply businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every beauty supply business owner should include in their business plan.

Download the Ultimate Beauty Supply Store Business Plan Template

What is a Beauty Supply Business Plan?

A beauty supply business plan is a formal written document that describes your company’s business strategy and its 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 Beauty Supply Business Plan?

A beauty supply business plan is required for banks and investors. The document is a clear and concise guide of 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 Beauty Supply Business Plan

The following are the key components of a successful beauty supply business plan:

Executive Summary

The executive summary of a beauty supply 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 beauty supply company
• Provide a short 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.

If you are just starting your beauty supply business, you may not have a long company history. 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 before or have been involved in an entrepreneurial venture before starting your beauty supply firm, mention this.

You will also include information about your chosen beauty supply business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a beauty supply 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 beauty supply 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 the success of your company)?

You should also include sources for the information you provide, 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, the customers of a beauty supply business may include owners or managers of hair salons, spas, and other beauty establishments.

You can include information about how your customers make the decision 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 beauty supply services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different 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 differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your beauty supply business may have:

• Value-added pricing
• Excellent customer service
• A variety of specialty products
• On-trend colors and applications
• Expertise in the beauty supply industry

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly 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, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your beauty supply business via word-of-mouth or referrals.

Operations Plan

This part of your beauty supply 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 only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. 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, in your Operations Plan, you will lay out 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 beauty supply business include reaching $X in sales. Other examples include adding new products or services, expanding to new locations, and hiring additional staff.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific beauty supply 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, as well as 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 Beauty Supply Business

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the 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 Beauty Supply 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 beauty supply business.

Sample Cash Flow Statement for a Startup Beauty Supply 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 beauty supply company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

The goal of your business plan is to articulate a clear and concise message that will serve as your roadmap to success. A well-written business plan will also help you secure funding from investors, lenders, or other sources.   

Finish Your Beauty Supply Store Business Plan in 1 Day!

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How to Open a Beauty Supply Store with No Money: A Detailed Plan

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Starting a beauty supply store can be an incredibly rewarding entrepreneurial journey, but it often requires significant upfront capital that many aspiring business owners simply don't have. However, with creativity, resourcefulness, and a solid plan, it is possible to launch a successful beauty supply store even with limited funds. In this comprehensive guide, we'll explore various strategies and tactics that can help you open a thriving beauty supply business without needing a large financial investment.

Assess the Market Potential

Before diving into the nitty-gritty of starting your beauty supply store, it's crucial to thoroughly assess the market potential. Conduct in-depth research to understand your target audience, their preferences, and the current competitive landscape. Analyze industry trends, identify underserved niches, and determine how your offerings can effectively address the unmet needs of your prospective customers.

Understand Your Target Audience

Delve into the demographics, shopping habits, and pain points of your ideal customers. Are they primarily young professionals seeking high-end, innovative products, or are they older individuals in rural areas who prioritize affordability and familiarity? Tailor your product selection, pricing, and marketing strategies to cater to the specific needs and preferences of your target market.

Explore Untapped Niches

Identify areas within the beauty supply industry that are currently underserved or overlooked by your competitors. This could be a focus on organic, cruelty-free products, specialized services for men's grooming, or a unique product selection catering to diverse cultural preferences. By filling these gaps, you can position your business as a go-to destination for a specific segment of the market.

Analyze the Competition

Thoroughly investigate your competitors, both online and brick-and-mortar stores. Assess their product offerings, pricing, customer service, and marketing tactics. Identify their strengths and weaknesses and use this information to develop a strategic plan that sets your beauty supply store apart from the crowd.

Secure Funding Through Alternative Means

While traditional financing options like bank loans or investors may not be feasible for those starting a beauty supply store with no money, there are several alternative funding sources to consider.

Explore Small Business Grants and Loans

Research grant programs and low-interest loan opportunities offered by local, state, or federal government agencies, as well as private organizations. These funding options can provide the initial capital you need to get your business off the ground without incurring significant debt.

Crowdfunding Campaigns

Launch a crowdfunding campaign on platforms like Kickstarter or Indiegogo to raise funds from individual investors. Offer attractive perks or rewards to incentivize backers and build a loyal customer base from the start.

Start Small and Reinvest Profits

Begin by selling beauty products online through platforms like Etsy or eBay. Reinvest the profits you generate to gradually build up your inventory and eventually open a physical store location.

Leverage Partnerships and Consignment

Reach out to established beauty product wholesalers and explore consignment or net-30 payment terms. This allows you to start selling their products without having to invest in upfront inventory costs.

Tap Into Your Personal Network

Engage with friends, family, or local community members to see if they would be willing to invest in your business or provide in-kind support, such as equipment or retail space.

Develop a Comprehensive Business Plan

A well-crafted business plan is the foundation for any successful beauty supply store, regardless of your starting capital. This document will not only guide you through the various aspects of launching and managing your business but also serve as a valuable tool to secure funding from lenders or investors.

Outline Your Unique Value Proposition

Clearly define your business's unique selling points and how your offerings will differentiate you from the competition. Highlight the specific needs you aim to address and the benefits you will provide to your customers.

Establish Financial Projections

Create detailed financial projections, including startup costs, operating expenses, and potential revenue streams. Identify potential sources of funding, such as loans, grants, or personal investments, and outline your plans for managing cash flow and achieving profitability.

Develop a Comprehensive Marketing Strategy

Craft a comprehensive marketing strategy that leverages both online and offline channels to reach your target audience. Explore social media platforms, content marketing, influencer collaborations, and local community engagement to build brand awareness and drive customer acquisition.

Outline Your Operations and Logistics

Delineate the operational aspects of your beauty supply store, including inventory management, supplier relationships, shipping and fulfillment, and customer service. Ensure that your processes are streamlined and scalable to support your business growth.

Establish an Online Presence

In today's digital landscape, having a strong online presence is crucial for the success of any beauty supply store, especially when starting with limited resources. Leverage the power of e-commerce to reach a wider audience and minimize the upfront costs associated with a physical retail space.

Choose the Right Ecommerce Platform

Select an e-commerce platform that aligns with your business needs, budget, and technical capabilities. Consider factors such as user-friendliness, scalability, payment processing, and SEO-optimization to ensure a seamless online shopping experience for your customers.

Optimize Your Website for Discoverability

Implement effective search engine optimization (SEO) strategies to improve the visibility of your beauty supply store in online searches. Conduct keyword research, optimize your website's content and structure, and leverage local SEO tactics to attract customers in your geographic area.

Leverage Social Media for Engagement

Establish a strong presence on social media platforms like Instagram, Facebook, and TikTok to connect with your target audience, showcase your product offerings, and build brand loyalty. Engage with your followers, share educational content, and collaborate with relevant influencers to expand your reach.

Provide Exceptional Customer Service

Ensure that your online customer service is responsive, personalized, and tailored to the unique needs of your beauty supply customers. Offer seamless order processing, prompt shipping, and easy returns to create a positive shopping experience that encourages repeat business and positive word-of-mouth.

Forge Strategic Supplier Relationships

Establishing reliable and mutually beneficial relationships with beauty product suppliers is crucial for the success of your beauty supply store, especially when operating with limited resources.

Identify Reputable Wholesalers

Research and vet potential beauty product wholesalers, evaluating their product quality, pricing, and customer service. Look for suppliers who offer flexible payment terms, drop-shipping capabilities, and the ability to customize or private-label products to align with your brand.

Negotiate Favorable Terms

Leverage your research and the unique value proposition of your beauty supply store to negotiate favorable wholesale pricing, minimum order quantities, and shipping arrangements with your suppliers. This can help you maximize your profit margins and maintain a competitive edge.

Prioritize Inventory Management

Implement a robust inventory management system to track your stock levels, monitor product trends, and ensure timely replenishment. This will help you avoid stockouts, minimize waste, and maintain a well-curated selection of products that cater to your customers' evolving needs.

Optimize Your Operations and Logistics

Streamlining your operational processes and logistics is crucial for the long-term success of your beauty supply store, especially when starting with limited resources.

Automate Key Processes

Leverage technology and automation to streamline your day-to-day operations, such as inventory management, order fulfillment, and customer relationship management. This can help you maximize efficiency, reduce errors, and free up time to focus on other critical aspects of your business.

Outsource Non-Core Functions

Consider outsourcing non-core functions, such as accounting, HR, or IT support, to specialized service providers. This can help you reduce overhead costs, access specialized expertise, and concentrate on your core competencies as a beauty supply store owner.

Optimize Your Supply Chain

Continuously evaluate and optimize your supply chain to ensure timely product delivery, minimize shipping costs, and maintain high levels of customer satisfaction. Explore opportunities for bulk purchasing, drop-shipping, or strategic partnerships with logistics providers.

Leverage Data-Driven Insights

Collect and analyze key performance data, such as sales trends, customer behavior, and inventory turnover, to make informed decisions about product selection, pricing, and marketing strategies. Use this data to continuously refine and improve your operations.

Build a Talented and Engaged Team

Your employees are the heartbeat of your beauty supply store, so it's essential to build a talented and engaged team, even when starting with limited resources.

Hire for Cultural Fit

Focus on hiring individuals who not only possess the necessary skills and experience but also align with your business's core values and brand identity. This can help foster a positive work culture and enhance customer service.

Provide Comprehensive Training

Invest in comprehensive training programs to equip your team with the knowledge and skills needed to excel in their roles. This can include product education, customer service best practices, and sales techniques to ensure your employees are well-equipped to deliver an exceptional customer experience.

Empower and Motivate Your Team

Implement employee recognition programs, offer competitive compensation and benefits, and create opportunities for professional development. This can help you attract and retain top talent, boost morale, and foster a sense of ownership and commitment among your team members.

Effectively Market Your Beauty Supply Store

Effective marketing is the key to driving customer awareness, attracting a loyal client base, and ultimately, achieving success in the beauty supply industry, even when starting with limited funds.

Leverage Social Media

Establish a strong presence on popular social media platforms like Instagram, Facebook, and TikTok. Engage with your target audience, share captivating content, and collaborate with influential beauty bloggers and influencers to reach a wider customer base.

Implement Content Marketing Strategies

Create informative and engaging content, such as blog posts, tutorials, and product guides, to position your beauty supply store as an authoritative and trustworthy source of information. This can help you attract organic traffic, build brand awareness, and nurture customer relationships.

Optimize for Local Search

Ensure that your beauty supply store is easily found by customers in your local area. Optimize your website for local SEO, claim and optimize your Google Business Profile, and participate in local community events to establish a strong presence in your neighborhood.

Offer Exceptional Customer Experiences

Prioritize providing exceptional customer service, from the initial point of contact to post-purchase support. Offer personalized recommendations, fast and reliable shipping, and a seamless returns process to foster customer loyalty and encourage positive word-of-mouth.

Continuously Adapt and Innovate

In the ever-evolving beauty supply industry, the ability to adapt and innovate is crucial for long-term success, even when starting with limited resources.

Stay Attuned to Industry Trends

Closely monitor industry trends, consumer preferences, and technological advancements to identify emerging opportunities and potential challenges. Continuously refine your product selection, marketing strategies, and operational processes to stay ahead of the curve.

Embrace Agile Methodologies

Adopt an agile mindset and approach to your business operations, allowing you to quickly respond to changing market conditions, customer feedback, and new competitive threats. Implement regular review cycles, experiment with new ideas, and be willing to pivot when necessary.

Cultivate a Culture of Innovation

Encourage your team to think creatively and propose innovative solutions to enhance the customer experience, improve operational efficiency, and drive business growth. Foster an environment that celebrates calculated risk-taking and celebrates small wins.

Opening a beauty supply store with no money may seem like a daunting challenge, but with the right strategies, resourcefulness, and determination, it is a goal that can be achieved. By leveraging alternative funding sources, developing a comprehensive business plan, establishing an online presence, forging strategic supplier relationships, optimizing your operations, building a talented team, and effectively marketing your business, you can turn your beauty supply store dream into a thriving reality.

Remember, the journey of a thousand miles begins with a single step. Start small, be patient, and continuously adapt to the evolving market conditions. With dedication and a commitment to excellence, you can overcome the initial hurdles and build a successful beauty supply store that caters to the needs of your customers and stands the test of time.

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Beauty Supply Store Business Plan

Beauty Supply Store Business Plan 

This beauty supply store business plan sample is focused on the growing ecommerce sector in Las Vegas, Nevada .  We hope this sample provides you with a brief foundation for starting your own beauty supply company. Our beauty supply store business plan writers crafted this sample for your review.

Executive Summary

“Plom, LLC” (herein also referred to as “Plom” or “the company”) was incorporated on February 8, 2022 in the State of Nevada by Founder and CEO, Emma Olive. Plom is an e-commerce store selling an array of beauty products directly to the melanated community and to global-majority owned retailers across the United States.

The beauty industry, and particularly the products specific to the melanated comm unity, are booming. According to McKinsey, black consumers spent $6.6 billion on beauty products in 2021, 11 percent of the total $60 billion beauty industry. Spending in this segment is robust among Black Americans, a growing group of 41 million people with increasing spending power. While this is not inclusive of the entire melanated community, this is emblematic of the growing number of new brands and entrepreneurs who want to provide products to a historically underserved community. 

Searching through the aisles of stores and browsing websites, Emma found herself unable to find a selection of products which catered to her needs as a member of the melanted commu nity. Products were typically only for caucasian women, or not optimized for her needs. Initially, to solve the problem, the focus was on a YouTube educational channel which provided individuals the ability to learn more about products in the melanated community. This included skincare products, routines, and other helpful how-to videos. As the vision evolved, something bigger emerged. Moreover, another opportunity was presented in Emma’s mind: what if there was one platform where members of the melanated community could buy ethically sourced beauty products for them; as they have faced so many challenges in the past? Plom was born, and the vision has been supported by this experience ever since to help others who face similar difficulties. 

As an operations professional, Emma’s strengths enable Plom to become a leader in the market as the company is focused on a 100% e-commerce dropshipping model. The company will use a Shopify store with various integrated ERP systems. This ensures that the cost of goods sold is kept to zero or minimal, so the remainder of the operating profit can be invested towards robust sales and marketing initiatives. Sales are primarily sourced from consumers and retailers through wholesale prices as contractually agreed-upon terms, which are custom drafted per each brand or retailer, providing value for both parties.

The melanated community continues to thrive despite the underrepresentation in the beauty industry over the years. This opportunity is where Plom can bridge the gap between the melanated community beauty needs and ethically sourced products. The company embodies inclusiveness in the marketplace and creates a space for individuals to have opportunities as the global majority.

Business Overview

Plom was founded by Emma Olive. In her quest to find quality and suitable haircare and beauty products for her personal needs, she realized the need to create a single platform that can provide various options for a multicultural world. This experience motivated her to start Plom.

Ms. Olive also discovered that there are many companies, both start-ups and established ones, which offer products of high standards but have limited reach to the right market. Although some of these companies found the support of their niche market, she believed that there is more room to improve brand awareness in the melanated community and to help these companies reach their highest potential. 

It is her desire to gather these companies together and build an ecosystem where consumers will have a heightened awareness of these products and can easily access them. This passion has given birth to Plom, an e-commerce website that will house various beauty products such as skincare, haircare, makeup and wellness products for the melanated community. This platform will showcase a variety of brands directed to provide the exact need of its multicultural consumers. The company will also partner with retailers and provide a superior level of both direct to consumer and B2B service. 

Mission Statement

Our mission is to provide our customers with the widest selection of beauty products, regardless of race, religion or personal beliefs.  

Vision Statement 

Our vision is to build a community which provides everyone a chance to feel good and accepted by all.

Core Values

Plom is guided by a set of core values that form the foundation of all business operations and decisions.

• Community as Partners to Success Plom values the community and every employee by developing and implementing best business practices. The company is committed to maintain mutually beneficial gains and support long term relationships. To do this, we will support individual growth, appreciate cultural uniqueness and celebrate milestones. This requires accepting and acknowledging everyone. 
• Empowerment fuels Creativity When one is empowered, it builds confidence to do more. Empowered employees are highly motivated and committed to achieve goals. Ultimately, this results in trust toward leadership, increase in employee satisfaction and delivery of responsibilities. 
• Efficiency and Effectiveness is basic to excellence We are responsible to our partners and value their investments. As such, we will collaborate to ensure delivery of products is at its highest standards, most competitive prices and in the fastest way possible. Excellence is a result of this commitment. It involves continuous search and discoveries of the most cost efficient way to manage the business and keep fully satisfied customers. 
• Variety makes stronger organizations A strong team involves acknowledging the uniqueness of each member and making intelligent use of it. This diversity brings different skills, experiences and capabilities to the team creating more opportunities for everyone. We want our employees to respect the differences and strengthen the foundation of the team to achieve results.
• Support to Black and Brown-owned businesses It is our commitment to go to great lengths to nurture and preserve our partner’s businesses. We believe that this is a competitive advantage to the company as we continue to strengthen consumer awareness of the existence of excellent products within our community.

Market Analysis

Plom will conduct business in the beauty products industry specifically to the melanated community through e-commerce, particularly dropshipping. Below is a market analysis of the beauty and personal care products market and dropshipping. This also details beauty products in the melanated community subsegment.

Beauty and Personal Care Products

The beauty and personal care products market was valued at USD 474.7 billion in 2021, and it is projected to register a CAGR of 4.62% during the forecast period, 2022-2027.​ Meanwhile, the North American Beauty and Personal Care Products Market is projected to grow at a CAGR of 2% during the said forecast period.

The COVID-19 pandemic dealt a massive blow to brick-and-mortar beauty and personal care stores across the world. Store closures and manufacturing halts significantly decreased sales as many companies’ operations were halted due to the lack of inventory and/or access to the market. Supermarket chains and convenience stores were also affected by this major disruption. With this, companies had to pivot and sell through online retails channels, which saw significant increase as of late.

The increasing awareness of customers about their appearance is one of the major reasons driving market expansion. Millennials are increasingly using beauty and personal care items such as skin care, color cosmetics, and hair care as part of their regular grooming routine. The emergence of cosmetics with natural, non-toxic, and organic components has also aided market expansion. Also, improving quality of life, the positive effects of beauty and personal care on self-esteem and social interaction, and the gradual consumer shift toward premium and luxury cosmetic brands are a few factors that are likely to propel the market growth during the forecast period. 

The changing and busy lifestyles of the consumers in the region have led to a rise in demand for multifunctional beauty and personal care products as the consumers are following holistic approaches to beauty and health care rather than treating each as a separate segment. Consumers are looking for products requiring minimal application time and prioritizing quality over quantity, leading to increased demand for premium beauty products. Companies have turned to production facilities locally due to a growing demand for “Made in the USA” products.

With the growing demand for organic ingredients, consumers across the world are inclined toward organic personal care products, which is expected to drive market growth. Furthermore, the rising awareness about the harmful effects of chemicals and synthetic products is another factor augmenting the growth of the market. Most of the consumers tend to buy products with natural or organic labeling, which is driving the market growth.

The region provides many brands with opportunities for innovation and expansion regarding color cosmetics. Skincare and haircare are the major growing segments in this region. Brands are building their equity by focusing on ambassador marketing and improving relations with macro and micro-influencers. Celebrities and successful individuals within the entertainment industry are banking on their large fan bases and social media followers by launching their product lines in the market.

African American Shoppers of Personal Care Products

African American women are traditionally known to rely on salon visits and professional styling products to maintain their hair and had to make some drastic adjustments during lockdown. The widespread disruption brought on was evidenced by the 41% of African American women who indicated that the COVID-19 crisis prompted changes to their hair styling and maintenance regimens.  

The swift transition from salons to consumers’ homes caused African Americans to dramatically increase purchasing for hair care products, and they’re now 2.4x more likely to buy hair treatments compared to the average beauty shopper. Similar to the Hispanic segment, low-income shoppers account for a much larger share of African American beauty buying households (43.3%) and dollars (39.1%) than middle and high-income shoppers, meaning retailers need to hone in on value-based products and execute promotions when targeting multicultural consumers. 

The sharp rise in Black-owned beauty brands has allowed African Americans to discover an entirely new world of products that are specifically geared towards them and their at-home needs, further fueling consumers’ newfound preference for natural beauty and DIY self care. Black-owned brands and brands who have spoken out about social justice causes have been heavily resonating with this segment, and 39% of African Americans expect to purchase more products from Black-owned brands while another 29% plan to purchase from brands that have spoken about the Black Lives Matter movement.

The Black Lives Matter movement caused multicultural consumers to demand more representation and options from beauty brands and retailers, says NielsenIQ. These shoppers will gravitate toward brands which align with their social values and products that are specifically tailored to their skin and hair care needs.

Health and wellness will remain a priority for most, meaning multicultural consumers will continue to seek out products with organic, natural and cruelty-free claims. As we prepare for a shift toward normalcy and more consumers feel comfortable venturing out of their homes and attending social gatherings, the demand for beauty and personal care will further accelerate. Categories that experienced steep declines will regain their relevance, but will need to consider newfound consumer preferences.

African American consumers, alongside Hispanics, have a track record of far out-spending other ethnic groups when it comes to beauty and personal care, and we can expect multicultural consumers to fuel cosmetics growth into 2022 as they look for products that enhance their natural beauty rather than mask it, concludes NielsenIQ.

The Beauty Industry for the Hispanic and Latinx Communities 

According to the U.S. Census Bureau’s 2020 data, the Hispanic community accounted for almost half of overall U.S. population growth, which was the slowest growth rate since the Great Depression. By comparison, the non-Hispanic growth rate over the last decade was 4.3%. The Hispanic share of the U.S. population grew to 18.7% of the U.S. population, up from 16.3% in 2010. Furthermore, the share of the white population fell from 63.7% in 2010 to 57.8% in 2020, the lowest on record, driven by falling birth rates among white women compared with Hispanic and Asian women. The non-Hispanic white population shrank from 196 million in 2010 to 191 million. 

“The U.S. population is much more multiracial and much more racially and ethnically diverse than what we have measured in the past,” said Nicholas Jones, director and senior advisor of Race and Ethnic Research and Outreach, The U.S. Census Bureau.

According to Mintel, Latinx women spent over $2 billion on cosmetics in 2019. Research from Nielsen shows that these consumers spend 30% more than other ethnicities on beauty products as Latinx women spend $167 annually on beauty versus $135 spent annually by general population consumers. Overall for the Latinx community, the mindset on beauty is similar across all life-stages, creating a significant opportunity for brand loyalty. However, marketers must still communicate in relevant and authentic ways across each generation. For example, brands have created Telenovelas to draw consumers into their brand, and tell the story of how natural ingredients were used to formulate the product. Beauty is a significant part of every Latina’s upbringing. Women are taught that Vanidad (translates to vanity in English) is a positive attribute. From a young age, mothers and grandmothers instill that beauty is part of their lives and pass on their secrets to them.

The Beauty Industry for the Middle Eastern Community

The Middle East is known to spend quite a bit on beauty products. Grooming and pampering are part of the culture with one of the highest spending on beauty globally. The region is playing catch up on conscious beauty, and it is changing the way Arab women look at various beauty rituals. The beauty and personal care marketing in the Middle East and Africa region is worth $33 billion as of 2021 and is expected to reach $39 billion by 2025, according to Euromonitor.

One of the key areas of growth in the Middle East will be clean or green beauty. While there is no regulated definition, industry insiders use the term for products made with natural ingredients, chemical-free and nontoxic. One of the largest luxury brands in the Middle East, the Chalhoub Group, is known for successfully launching its concepts in beauty (such as beauty chain Faces) and fashion (Level Shoes). Additionally, this company is the local partner for Sephora and many other leading international brands. 

Dr. Lamees Hamdan, an Emirati, launched Shiffa Beauty in 2004, whose brand “Shiffa” means “healing” in Arabic. She found her inspiration in Middle Eastern traditions. It is one of Sephora store’s best-selling brands across the Gulf region and retails in Nordstrom in the US. She says, “I believe that within the next decade, all doctors will be schooled in herbs as a first-line treatment for disorders.” Hamdan started the brand when she was pregnant with her first child, and her first product was a healing balm designed to help pregnant women with stretch marks. She even received a shout-out from Kim Kardashian. 

This region’s young population is more aware of the need to be more conscious about their consumerism which is why the global skincare industry is looking to fill this gap. Generation Z and millennials are demanding greater transparency as they move towards clean beauty products. There is a definite gap in the market for more homegrown beauty brands. Clean beauty will rise in the region over time. It is known that global trends continuously trickle into the Middle Eastern market with time. There is an interest, of course, as natural ingredients have long been part of beauty rituals in the Gulf.  However, conventional beauty products likely will not lose their hold on their market. Arab women have an appreciation for beauty and will add conscious or green products to their beauty regimes, but may not let go of the products they already buy. 

Beauty Products in the European Melanated Community

Within the European cosmetics market, Germany consumed the largest amount of cosmetics in 2021, valued at approximately 13.6 billion euros. The major ethnic groups within the country part of the melanated community are the German Roma and Sinti. There are 300,000 individuals within the Romani community in Germany and 10 to 12 million in all of Europe. This figure for cosmetics was followed by France and Italy, at approximately 12 billion euros and 10.6 billion euros, respectively. Type IV pigmentation is frequent among populations from the Mediterranean and Romani people. It ranges from brownish or darker olive to moderate brown, typical Mediterranean skin tones. This skin type rarely burns and tans easily. Additionally, within France alone there are 3 to 5 million people of black African descent and the UK, Spain, and Italy follow with approximately 1 million each. It is difficult to collect such data, however, as certain countries such as France prohibit the collection of racial and ethnic data. Certain estimates as a result have to be created. For melanated brands to market effectively it is important to understand the diverse makeup of each European country.

The cosmetics and personal industry has been thriving in Europe as more consumers become increasingly aware of the importance of health, wellness and personal care products. Skin care continues to be the dominant force in the cosmetics industry in Europe, having more than 27 percent of the European cosmetics market in 2019. In the following year, France had the highest number of small and medium-sized enterprises (SMEs) specialized in the manufacturing of cosmetic products in Europe. Compared to Italy’s 735 cosmetics SMEs, France had around 840.

L’Oréal, Nivea and Guerlain are currently the top three leading cosmetic brands in Europe in terms of brand value. The skin and body care brand Nivea, manufactured by Hamburg-based German company Beiersdorf had a worldwide brand value exceeding six billion U.S. dollars in 2021. With the rise of social media and its significant influence on consumer groups, particularly in the areas of body image and personal care, cosmetics brands that enjoy powerful social media presence and appeal will be those that succeed in the long-term. As of March 2022, the beauty brand with the highest number of Instagram followers is Kylie Cosmetics, garnering approximately 25 million followers.

Dropshipping Market

Because of the growing popularity of online shopping and the growing tendency of cross-border e-commerce trade, the global dropshipping market is expected to develop significantly. As a result, the surge in demand for dropshipping services is mostly affected by the e-commerce industry’s expansion. Dropshipping is the practice of selling things through online storefronts where the retailer does not maintain a stock of goods. Instead, the retailer sends the customer’s purchase and shipping information to a wholesaler or manufacturer, who then sends the goods straight to the consumer.

Smartphones have transformed online shopping by providing a plethora of mobile applications that make the process simple and comfortable for customers. Rapidly increasing penetration of smartphones, combined with rising consumer disposable income, is likely to boost the e-commerce market and, as a result, the demand for dropshipping services is anticipated to rise. The number of customers who choose to buy online has resulted in a significant rise in investments by the major companies in the e-commerce sector.

Government Regulations

The FD&C Act defines cosmetics by their intended use, as “articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body…for cleansing, beautifying, promoting attractiveness, or altering the appearance” (FD&C Act, sec. 201(i)). Among the products included in this definition are cleansers, moisturizers, perfumes, lipsticks, fingernail polishes, eye and facial makeup, cleansing shampoos, permanent waves, hair colors, and deodorants, as well as any substance intended for use as a component of a cosmetic product. It does not include soap. 

FDA’s legal authority over cosmetics is different from our authority over other products we regulate, such as drugs, biologics, and medical devices. Under the law, cosmetic products and ingredients do not need FDA premarket approval, with the exception of color additives. However, FDA can pursue enforcement action against products on the market that are not in compliance with the law, or against firms or individuals who violate the law. In general, except for color additives and those ingredients that are prohibited or restricted by regulation, a manufacturer may use any ingredient in the formulation of a cosmetic, provided that:

• the ingredient and the finished cosmetic are safe under labeled or customary conditions of use,
• the product is properly labeled, and
• the use of the ingredient does not otherwise cause the cosmetic to be adulterated or misbranded under the laws that FDA enforces.

Market Trends 

Growing Inclination towards Natural/Organic Formulations

Growing concerns regarding the side effects of chemicals in personal care products, which lead to ailments such as skin irritation, allergies, and skin dullness, have been fueling the demand for natural and organic skincare products. Prolonged use of synthetic cosmetics may cause various health issues, such as irritation, hormonal imbalance, and toxicity. However, cosmetic products made of organic ingredients, such as plant extracts and natural oils, do not leave any harmful impact on the skin. Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers, which is likely to drive demand for natural skin care products. This factor has resulted in a shift in preference from synthetic skincare products to organic products among consumers. 

To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as ‘organic’, ‘vegan’, ‘natural’, ‘chemical-free’ and ‘cruelty-free’, among others. For instance, in April 2022, Shiseido revealed a new skincare brand Ulé, which sources pesticide-free botanicals from local vertical farms. Thereby, dissemination of knowledge related to the benefits of natural skincare has led consumers to seek eco-friendly, sustainable, natural skincare/personal care products that offer greater product ingredient transparency. 

Clean Beauty Products Highlight Equity Gap

Women of color have higher levels of beauty-product related chemicals in their bodies compared to white women, according to a commentary published by a Milken Institute School of Public Health researcher. Ami Zota, a GW assistant professor of environmental and occupational health, said reproductive health professionals must be prepared to counsel patients who have questions about chemical exposure. Health professionals can also promote policies that protect women from harmful chemicals in cosmetics and personal care products.

Previous studies have documented that Black, Latina and Asian-American women spend more on beauty products than the national average, often because of marketing practices that emphasize a European standard of beauty, said Dr. Zota and co-author Bhavna Shamasunder at the Occidental College in Los Angeles. “Pressure to meet Western standards of beauty means Black, Latina and Asian American women are using more beauty products and thus are exposed to higher levels of chemicals known to be harmful to health,” Dr. Zota said. “Beauty product use is a critical but underappreciated source of reproductive harm and environmental injustice.” Women of color are more likely to buy products like skin lightening face cream, which often contain hidden ingredients such as topical steroids or the toxic metal mercury, Dr. Zota said.

Black women are known to suffer more anxiety about having bad hair and are twice as likely to experience social pressure to straighten their hair. Hair products like straighteners, or relaxers, are likely to contain estrogen and can trigger premature reproductive development in young girls and possibly uterine tumors, as the commentary reports. Studies also show beauty and personal care products contain multiple, hidden chemicals that are linked to endocrine, reproductive or developmental toxicity.

These chemicals can be particularly dangerous for women between ages 18 and 34, the authors said. Women in this age group are identified as heavy buyers and purchase more than 10 types of beauty products per year. These buyers and their children may experience heightened vulnerability to such chemicals, especially if exposure occurs during pregnancy.

Asia-Pacific Emerges as the Fastest Growing Region

In the Asia-Pacific region, countries like China, India, Japan, Indonesia, and Vietnam present considerable growth opportunities for the market players, primarily due to the growing millennial population. Amid the growing prevalence of hair thinning, loss of volume, dryness, and several other hair-related concerns among consumers, hair care products are emerging as the most affluent and cost-effective way. 

Hence, the major players are intensely embarking on product innovation and mergers and acquisitions as their prime strategy to consolidate the market studied. For instance, in 2021, Kao Corporation, through its subsidiary Kao Salon Japan, launched its prestige hair salon brand namely, Oribe in Japan. The brand consists of 23 product line-ups that were made widely available in Japan. 

Furthermore, growing awareness regarding cosmetics products, such as facial makeup, hairstyling and coloring products, is expected to drive the market’s growth in the near future. The demand for multifunctional products drives innovation, as price-conscious consumers opt for products that provide hydration and skin protection. Companies are constantly advertising cosmetics that provide medicinal benefits, especially on social networking sites, such as Facebook, Twitter, YouTube, and Instagram, where beauty bloggers are very popular. Some of the major key players in the beauty and personal care products market in Asia- Pacific are Beiersdorf AG, L’Oreal Group, Procter & Gamble, The Estée Lauder Companies Inc., and Unilever, among others.

Competitive Landscape 

The global beauty and personal care market is highly competitive, with a strong presence of regional and global players in the market, where demand is mostly driven by more adaptation toward skincare routines and consumer awareness about brand know-how. The most active companies in the market include key players, like Procter & Gamble, Unilever, L’Oréal SA, Colgate-Palmolive Company, and The Estée Lauder Inc. L’Oréal SA is one of the most active companies, with numerous brand offerings and a broad range of beauty and skincare products across the region.

The companies have spent considerably on improving quality and product innovation in terms of ingredients, functionality, and packaging. The key players are embarking on merger and acquisition and product innovation as their key strategies to achieve consolidation and optimize offerings. Moreover, these players merge with local players to gain dominance in the local markets.

Major Players

• The Estée Lauder Companies Inc.
• The Procter & Gamble Company
• L’Oreal SA
• Colgate-Palmolive Company
• Unilever PLC

Recent Developments

• In May 2022, Estée Lauder with Shoppers Stop opened an exclusive SS Beauty store in Mumbai. With this establishment, the two companies have strengthened their partnership in India. The SS beauty store will offer only Estée Lauder brands like MAC Cosmetics, Clinique, Bobbi Brown, Jo Malone, Estee Lauder, Smashboxand Tom Ford.
• In March 2022, Colgate-Palmolive Company launched a new toothpaste, which is Visible White O2, this is an innovative whitening toothpaste that works from the inside out to lighten the stains. Its advanced formula releases millions of warm oxygen bubbles into the mouth.
• In January 2022, Procter & Gamble acquired luxury skincare brand Tula, which would bolster the company’s prestige brand portfolio. Tula is a clean skincare brand powered by probiotic extracts and superfoods. As part of the acquisition agreement, P&G Beauty will support the Tula team to drive brand growth and support expansion and innovation.
• In December 2021, L’Oréal signed an agreement to acquire an American skincare company, Youth to the People. This company is a California based skincare company.

Selling customizable beauty products

The global personalized beauty devices market is expected to expand at a healthy CAGR of close to 25.3% over the next decade, and cross a valuation of US$ 80.7 Mn in 2031 as customers are increasingly seeking personalization in their daily activities shifting from “one size fits for all” products.

Further, consumers are more inclined towards the trend of using personalized beauty devices and other connected beauty devices. As a result, top manufacturers are aiming to provide artificial intelligence (AI) based personalized beauty devices in the market which is highly adopted among the end users. Growing development and technological advancement are the major drivers which have propelled the demand for such devices in the market.

Moreover, advances in human life structures and genomic science have empowered beauty solutions to be customized to a person’s attributes or genotype, making them more compelling with rise in millennial population along with the geriatric population, ascend in prevalence of skin problems are some of the major reasons which is expected to drive the sales for personalized beauty devices in the coming foreseeable future.

Partnering with influencers/influencer marketing

Influencer marketing is a hybrid between traditional and conventional marketing strategies, combining elements of celebrity endorsements, digital marketing, and viral marketing. It is set to grow to over $16 Billion in 2022 as an industry, with platforms raising more than $800 Million in funding. The industry has grown to the point that nearly 20,000 firms now offer Influencing Marketing Services. In a recent industry benchmark report, more than 75% of brand marketers intend to dedicate a budget to influencer marketing in the coming years.

These “influencers” are paid either in monetary terms, free products, or a combination of both. They post product reviews on popular social media websites such as Instagram, Facebook, TikTok and YouTube. Mainstream brands are also taking advantage of these platforms. Zara, the global clothing retail brand, has an estimated reach of over 2 Billion. This contributes to their global sales and profitability.

Melanated beauty products sub-industry (black beauty products) growth

This industry is emerging, but there are still plenty of gaps wherein companies can focus on. Black brands make up only 2.5% of revenue in the U.S. beauty industry, however black consumers are responsible for 11.1% of total beauty spending. With limited options, they tend to be dissatisfied with available suitable products in major online and physical retailers. There is, however, an upside to this as only 4-7% of brands carried by specialty beauty stores, drugstores, grocery stores and department stores are black brands. This means that there is significant demand that has not yet been met by existing retailers.

Black brands in the beauty industry raise a median of $13 million in venture capital, substantially less than the $20 million that non-Black brands raise. Yet today, the median revenue of those Black brands is 89 times higher than what non-Black beauty brands return over the same period. Addressing racial inequity in the beauty industry is a $2.6 billion opportunity. Better serving Black consumers and supporting Black beauty brands could lead to greater equity across the entire beauty industry—for shoppers, entrepreneurs, large beauty houses, retailers, and investors.

Increase in Black Beauty Products (Melanated skincare, haircare, fragrance)

Despite the growing power of the Black consumer, brands have yet to cater to them properly, new data shows. A report from NielsenIQ shows the growing size and momentum of the Black beauty shopper, with buying power expected to reach $1.8 trillion in 2024. It is also younger and seeing higher gains in high-income households, the report added. “This is the way that America looks,” said Anna Mayo, beauty vertical client director, NielsenIQ. “We’re seeing a lot of growth across all levels of this consumer, and they are becoming a very dynamic force and driving the conversation forward.” Although hair care and fragrance performed well, Mayo said the results in skin care and makeup show considerable room to reach Black consumers more effectively.

Key Competitors

Thirteen Lune is an e-commerce platform that provides marketing and business support to Black and Brown founders. The goal is to reframe how Black and Brown beauty brands are perceived not only from an industry perspective, but also for the consumer, giving each brand a platform to educate and engage a wider audience. They promote skincare, makeup, hair care, and body and bath products of over 150 brands, primarily of ethnic ownership. They created and own two of the brands on their platform. Their motto is to be inclusive, and one of their key marketing channels is their “Shop Talk” brand.

BLK + GRN is an all-natural e-commerce marketplace powered by Black women artisans. With a focus on beauty and personal care products that do not contain toxic ingredients, the company features over 136 Black Artisan brands since 2018. They have Black health experts who carefully choose which products to feature on the website. Their product categories are: bath and body, skincare, beauty, grocery, hair, home, menstrual care, and mom + baby. They also have their own GRN branded products. For their marketing activities, they use blogs, social media, and podcasts as their key marketing channels. 

Marjani is also an e-commerce platform that features nearly 100 carefully curated “Brown Girl Beauty” products ranging from skincare, facial products, lipsticks and tints, eye creams and makeup, hair products, body oils, salts and washes, and a limited product line for men. They curate brands that are authentic and independently-owned. For their marketing strategy, Marjani has a “Buy It, Try It” Foundation matching – a unique strategy wherein customers can buy full size foundation products with matching samples. The customers may keep it if it matches their skin tone. If it does not match, they may return the full size items as long as they are unopened. They also provide makeup sessions, free product consultations, an online skincare quiz, and a foundation finder online. 

Products and Services

Plom will feature over 500 melanated brands on the website. A dropshipping arrangement is set with the brands, which are categorized into the following:

• Skincare : facial and body care products with an average unit price of $65; includes cleansers, toners, serums, moisturizers, masks, bodycare, and men’s skincare products.
• Haircare : for washing, styling and treatment; average unit price of $55; includes shampoos, conditioners, hair styling, hair treatment, and men’s hair grooming products.
• Makeup :  foundations, nail colors, eye shadows and the like at $60; products categorized into eye makeup, lipsticks, foundations, nail products, blush and bronzers.
• Wellness : teas and supplements at $50; includes herbal teas, slimming teas, vitamins, and other supplements.

These beauty and wellness products are primarily owned by a global majority, small to medium sized businesses in the U.S., with a focus on customers with melanated skin tones.

Brand Partners: Plom’s website will feature some of the world’s most popular melanated beauty and personal care products. Below is a preliminary list of over 100 companies in the melanated products industry that will be featured:

Pricing Model

Competitive Advantages 

Wide selection of products : Plom will offer a wider range of products, and it will serve as the ideal place to shop for beauty products that will cater to the needs of those with melanin-rich skin. By identifying our niche, we will be able to solidify our market position and then target other sub-segments and other locations.

Brand engagement strategies: The company’s engagement in product selection, sampling program and early access promotions exclusive to members will benefit the brand two-fold. First, it will increase the overall quality and exclusivity of brands featured on the platform. Second, by engaging stakeholders such as business owners and customers, the company will be able to build a community which then leads to more loyal customers, referrals, and features.

Promotional events: Several promotions available in the Plom website may not be available in physical stores and in other competing platforms. Special discounts, early access to product launches, free shipping, and sampling programs are just some of the promotional strategies that will help increase brand awareness for the company.

Sustainability-driven business: Sustainability is a key part of Plom’s set of values. Aside from providing opportunities to minority-owned beauty and personal care businesses, it also has strong linkages with a wide network of small business owners. With the increasing importance of non-toxic and all-natural beauty products worldwide, focusing on sustainability will not just be a values-driven strategy, but also a good business move for the company.

Strong brand recognition : Plom is already widely recognized for quality, sustainability, convenience and support to melanated communities and business leaders. The overall brand image will also be boosted through continuous linkages with more brands and good customer service to the black and brown consumer segments.

Strong e-commerce presence : Plom has a strong e-commerce platform, having a responsive and secure website. Its content is also interlinked with social media platforms such as YouTube and Instagram, and the website will offer a live chat function to address immediate and urgent customer queries.

Building a Community : Ingrained in Plom’s core values is its support to black and brown communities across the US. The company intends to build a community of customers who have abundant choices and retailers who have access to a wide range of in-demand and high quality products. These form communities that are empowered and sustainable.

Sales and Marketing Plan

As a new, up-and-coming business, Plom will accelerate the company’s growth through high-value marketing activities. These aim to drive sales and increase the brand’s overall value. This section will serve as a roadmap to success for Ms. Olive and her future team members.

The primary sales strategy of the company will be the dropshipping model. This is an emerging supply chain strategy given that it does not entail Cost of Goods Sold, and that all operating profit can be reinvested to sales and marketing activities. Plom will sell through two primary channels: direct business-to-consumer and business-to-business.

B2C Sales : B2C Sales make up the majority of the projected revenue of the company, as reflected in the financial statements. This is a direct to consumer approach. Sales are generated through the website, Shopify, and eventually other e-commerce platforms. In order to attract B2C Sales, Plom will engage in various marketing and advertising activities, primarily on social media. The overall goal here is to build a community, through social media posts, monthly emails, events, giveaway contests, YouTube channel, and Facebook group.

B2B Sales : B2B Sales will be generated through partnerships and supply agreements with retailers, as well as venues like hotels, and one-off events such as beauty pageants and conferences. Plom will sell brand partner’s products at an agreed upon price (approximately 50% of the direct to consumer price) and the company will receive an approximate 2% fee on transactions with retailers. B2B Sales will be secured through forging institutional relationships, client meetings, and contract negotiations. Ms. Olive will take the lead in B2B Sales in the meantime, given her vast experience negotiating and overseeing supply chain management.

Seasonal Trends: The holiday season (November to December) is when sales of beauty and personal care products are projected to peak. During this time, customers purchase to prepare for Christmas and family gatherings. This is also the time for them to purchase such products to give as gifts to family members, friends, and colleagues. The holiday season generates the most revenues both on B2B and B2C channels.

This is followed by Spring (April to May), and Summer (June to July). The low season is during August to October, and this is a good time to prepare for new product launches, and conduct sales promos for “end of season” products.

Target Customers and Channels

There are two types of target customers: one for Business direct to consumers (B2C), and the other being retailers (B2B). Below is a table describing the two customer groups:

Key Channels for the B2C Market

Plom Website: The company will launch the Plom website, wherein site visitors can access information about the company and its products in various forms such as blogs and videos. It also has an e-commerce component and customers can purchase beauty and personal care products at the convenience of their homes, via their laptops or mobile devices. The product categories are: Skin, Hair, Beauty, Men, and Wellness. The website also has a Shop All function, as well as links to marketing content and an email signup box at the bottom. Ms. Olive is working with a web developer on this.

Social Media Marketing: In 2022 there will be approximately 302 million social media users in the US, across popular applications such as Facebook, Instagram, Twitter, and TikTok. These channels are used to build the brand, grow the following, establish relationships and generate sales. Plom’s Facebook and Instagram pages will also be used to respond to inquiries and establish relationships with clients. Instagram will be the focus platform of Plom. The company will also use YouTube and TikTok to post and share video content.

Video Content : Short form videos such as the ones posted on TikTok, YouTube Shorts, and Facebook and Instagram stories and reels are currently viewed as one of the most effective and engaging marketing tools. In the HubSpot Blog’s 2022 Marketing Industry Trends Survey, they found that more than half of marketers (51%) who use short-form video plan to increase their investment in 2022. Meanwhile, 38% plan to continue investing the same amount. Also, short-form video has the highest ROI of any social media marketing strategy as 30% of social media marketers plan to invest in it more than any other trend in 2022. Plom will take advantage of this trend by creating short form videos demonstrating how to apply their beauty products, as well as “behind the scenes” and “before-after” video themes.

Pay-Per-Click (PPC) Ads : A n online advertising model in which an advertiser pays a publisher every time an advertisement link is “clicked” on. Alternatively, PPC is known as the cost-per-click (CPC) model. The pay-per-click model is offered primarily by search engines (e.g., Google) and social networks (e.g., Facebook). The business will link PPC ads to Plom’s website. This includes the set up on Google, Facebook, Instagram and relevant social media sites. Sponsored ads are placed on these sites for prospects to view (as impressions) and click (as click throughs).

​​ Search Engine Optimization (SEO): The process of making a website rank high in the search engine results pages (SERPs) for a certain keyword. This allows content to be visible and accessible to those searching for the term, or something similar to it. Plom may rely on this marketing channel, optimizing keywords such as “black beauty products”, “eco friendly personal care”, “sustainable makeup US”, and the like. Pay-per-click advertising can also be integrated in the overall marketing strategy of the company.

Email Marketing: Email marketing is a highly effective channel for Plom to increase the lifetime value of customers. When customers first buy, the company will put them into an email cadence which will ensure they are contacted about future promotions, events, and other key information from Plom. This will increase the person’s affinity and identification with the brand through content. This can also be repurposed in other marketing channels. The email list will be a critical aspect of the company communication, and not only customers, but prospects will have the option to subscribe for product updates and educational content.

Brand Ambassadors: Credible brand ambassadors offer various benefits to Plom. The most important one is giving the brand a boost on social media, spreading messages of positivity and community, and influencing consumer sales. The most effective are those who can provide customer service and act as spokespeople for the brand. Ms. Olive will also serve as a brand ambassador for Plom, given her content creation background. The company will also tap other consumers and influencers to help boost the brand in communities.

In Person Conferences: Conferences are an opportunity to highlight the Plom brand and work with partners to showcase their products. The company can host and brand their own conferences, or find others who would already put these on. Plom can solidify the company’s brand positioning even further with an in-person channel. There can be in-person demonstrations, how-to’s, beauty tips and tricks, and try-ons. Customers can also receive free samples while brands as well as retailers attend.

Key Channels for the B2B Market

Institutional Partnerships and Affiliations: The team will visit and pitch the products to the top retailers and events across the US, starting with California. This will be an opportunity to reconnect and strengthen relationships with existing buyers and registered brands under Plom. Partnerships with industry experts such as makeup artists and melanated entrepreneurs will also be established, and they will help promote the brand to their clients. The company will also seek the endorsement of the Professional Association for the Beauty Industry.

Collaborations with Spas and Venues : Spas, resorts, and other venues such as hotels and conferences usually buy personal care products in bulk, and they require huge quantities with quick turnaround times. The advantage of the dropshipping business model is that Plom will be able to tap into numerous suppliers at the same time. Ms. Olive will then be able to focus on supply chain management with brand wholesalers instead of producing the actual products, which is more efficient and of higher value to the company. Some events such as beauty pageants that need products for melanated skin can also be beneficial in terms of bulk orders and with public relations and event advertising.

Collaborations with Organizations with Good Cause : Trade certifications such as Fairtrade and FSC increase the brand value of Plom’s products, and also allows it to penetrate the growing sustainable beauty market. By creating categories for certified beauty and personal care products, Plom will be able to market to customers who support good causes such as equality, sustainability, and support to small to medium enterprises. One such cause is Amara Leaders, an organization dedicated to advancing the exceptional leadership of Black Women across industries.

Key Performance Indicators

Here are several key performance indicators that will be well communicated across the company, ensuring that Plom’s overarching goals are prioritized and achieved.

SWOT Analysis

Plom formulated a SWOT Analysis to identify and analyze the organization’s strengths and weaknesses (internal factors), and opportunities and threats (external factors). This tool will help Ms. Olive and the management team in establishing business strategies, as well as prioritizing business activities.

Operational Plan

Plom was crea ted to provide a venue where the melanted community can efficiently and effectively source and purchase a diverse collection of beauty products specifically for their needs. Black women spend nearly nine times more than their caucasian women on hair and beauty. The Hispanic community is a growing source for beauty sales and more likely to spend on hair care and cosmetic products than the general market. Furthermore, Asian-Americans spend 70% more than the average share of the U.S. population on skincare products, and are more likely to spend on premium brand name products and drive beauty sales through mobile and social media usage.

The company can capitalize on this market need by starting with a lean and tech-savvy employee base to focus on developing an attractive and  user-friendly website. Plom will also need experts who can verify the compliance of partner-sellers to basic permits and licenses and the legitimacy of their products and its components to ensure its compliance to government regulatory bodies.

Operational Process

The company is primarily geared towards sourcing out and making products easily available to the melanated community. Plom will be a one-stop shop for beauty products from a wide-range of brand partners that are of high quality and appealing to its niche market. The company’s expertise is scouting small to medium-sized brands who provide products that are proven and tested to be marketable to its melanated community. The operational process for maintaining a B2C online marketplace, peer-to-peer stores, or a B2B wholesale markets involves the following:

• The e-commerce business must be built on e-commerce technology. Technology support for maintaining the website is a 24/7 activity and delivers products to customers. This will include providing the following:
• Order management systems or a shopping cart 
• Inventory Management
• Infrastructure Maintenance
• To survive the business, the company builds an attractive online store to present its products. Graphic designers and website content writers must always be on the lookout for various improvements and updates to the website on a regular basis. 
• The backroom support performs the following:
• Continually source new products to feature or promote
• Creation and update of the sign-up options, which is effective when shown side-by-side with the shopping cart 
• Maintain and update customer personal and payment information
• Maintain or create an active response to customer queries or complaints
• Verify brand partner’s inventory against website inventory
• Ensure compliance to the Data Privacy Laws
• Develop marketing campaigns such as promos and offers to help increase sales and revenues on the website and social media platforms
• Work on tie-ups for the payment options
• Management of reviews and comments on social media sites
• Logistic platforms must be established. Shipping service integrations are essential for order fulfillment at the shortest time possible. 
• Online payment transactions need to be guaranteed by providing customers with a guarantee that their payments are safe. This involves engaging with Accreditation certificates like Network Solutions, McAfee and other trusted companies to add a sense of security to customers.
• Sales are made to direct consumers and other businesses such as hotels and other B2B services.

Health & Safety

Plom is an online platform and has limited direct contacts to its customers. Most coordinations are done online using various communication technologies. Standards for health and safety will be applied for face-to-face activities with  its business partners. 

The company will ensure that its supplier-partners adhere to the Safe Cosmetics and Personal Care Products Act of 2019, a federal bill holding cosmetics companies accountable for safety of its products. At the same time, it will also keep itself compliant to FDA-regulations on the beauty industry.

Equipment & Inventory

Plom does not keep an inventory of the products sold on the website. Instead, most of its inventory will be coming from its partner-suppliers. Additionally, the investment will focus on the equipment and inventory below.

Equipment and Inventory List

• E-commerce platform
• Digital Payment System Contracts and Systems
• Business and Software License 
• ISP Connection
• Servers and Backup System Development
• Domain Registry
• Office Supplies
• Computers/Monitors

The company is located at 1111 Gold Ave Las Vegas, Nevada, United States. It is the 1st largest city of Nevada and is growing rapidly at the rate of 3% annually. Las Vegas is one of the largest planned urban communities stretching to more than 66 square miles with multiple modes of transportation. Las Vegas has a population of 526,750 and its population increases at the rate of 6.19%. Recently, American Community Survey (ACS) reported that only 1.46% of the population is Black or African American, 43.64% are Asians, 44.93% are White Americans and the rest are from Native Hawaiians or Pacific Islanders.

Risk Analysis

E-commerce is a rapidly growing industry ever since the COVID-19 pandemic. It has become an essential service and a viable alternative to most businesses. However, along with this growth, certain risks evolved as well. In addition, the beauty industry has its own challenges. Plom has developed a risk management program to identify the key risks and respective mitigation strategies.

Management Team

Founder and CEO

Ms. Emma Olive is the Founder and Chief Executive Officer (CEO) of Plom. Ms. Olive has over 15 years of professional experience across various business sectors, including manufacturing, financial planning, e-commerce, supply chain management, procurement, contractual negotiations, and global sourcing for various industries. 

With a comprehensive retail background, Ms. Olive will lead Plom as its CEO, where she will lead in setting the overall organizational strategy, recruiting key personnel, making financial decisions such as investments, and coordinating with various stakeholders including business partners, retailers, brand partners, and suppliers. She is currently the Director for Brand Management and Operations at Gliss in Orange County, California, and has worked with several other companies including Bright Skincare, TriloG, and Dove + Pearl.

Ms. Olive is passionate about providing business and market opportunities to small and medium business owners in the melanated beauty and personal care industry. She also envisions a multicultural marketplace where customers have access to a wide range of choices which will allow them to find the perfect products for their skin tone. Her motivation for starting Plom was her previous experience of having limited haircare and makeup choices suitable to her needs. 

According to Ms. Olive, there are many companies who have found the support of the consumer, but there are quite a few more who are struggling to find their place in the beauty industry, and her desire is to help them build brand awareness and accomplish their goals. Ms. Olive intends to scale up the business by achieving $1 million in revenues by the end of Year 3, as she continues to build a community of melanated customers who are empowered by having access to more suitable beauty and personal care products. 

The overall vision for Ms. Olive is a 100% online e-commerce marketing place utilizing a dropshipping model to get customers the products they want. This creates a profitable venture which has minimal cost of goods sold and inventory to contend with, if any. Additionally, most of the operating profit can be reinvested to sales and marketing. In short, Plom is positioned to be both a leader in the melanated beauty market and a profitable business that has the potential to either continue growing, or explore acquisition in Years 4 or 5. As the melanated community continues to increase its purchasing power thanks to parity in the economic system, Ms. Olive is putting Plom at the forefront.

Key Personnel

To scale up Plom, Ms. Olive will prioritize the recruitment of the following key personnel:

Sales Coordinator : The sales coordinator will be responsible for managing brand requirements and communication, as well as analyzing sales data and providing insights to the team on how to drive sales and increase profitability. The Sales Coordinator will also work on achieving and exceeding sales targets of the company through B2B and B2C sales channels.

Marketing Coordinator : The marketing coordinator will implement marketing and advertising strategies by assembling and analyzing sales forecasts, preparing marketing and advertising strategies according to consumer behavior and trends, and planning and organizing promotional activities. The marketing coordinator will work closely with the Sales Coordinator in measuring sales generated from all marketing activities.

Digital Coordinator : The digital coordinator will support the marketing and sales coordinators by leading in digital marketing activities. He/she will be responsible for tracking marketing campaign progress, developing various digital marketing materials, sourcing images and artwork, collating content, updating online assets, and performing other digital marketing activities to boost Plom’s brand awareness and sales.

Ms. Olive, as Founder and Chief Executive Officer will be responsible for hiring for these three key positions. The goal is to identify talented, skilled and passionate professionals who share the same values of building communities through products made by local artisans.

Recruitment Plan

To recruit coordinators for marketing, sales, and digital, Ms. Olive will adopt the following recruitment strategies:

Hiring from professional networks: Ms. Olive will start expanding Plom by identifying top talent from her previous and current work. Having worked with several companies, she will consider previous colleagues with whom she has familiarity working with. With the business scaling up fast, Ms. Olive will rely on her networks in finding talent, whether active or passive candidates, who will fit in the operations and culture of the company.

LinkedIn: Recent data suggests that there are approximately 190 million LinkedIn users in the US. As the top social media platform for business professionals, Ms. Olive will post the three job vacancies on the website and screen the top applicants. This is a cost effective method of recruiting talent. LinkedIn can also be used to establish business relationships with suppliers, affiliates, and endorsers.

College recruiting : Once the core positions are filled up, Plom will discover up and coming local talent by opening the company to internships and placements. The company will post on campus online job boards, as well as attend career fairs for those interested in working in the beauty products industry, whether in marketing or logistics.

Financial Plan

Pro Forma Income Statement

Pro Forma Cash Flow Statement

Pro Forma Balance Sheet

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Beauty Supply Store Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Beauty Supply Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Beauty Supply Store Plan Here

Beauty Supply Store Executive Summary

Business overview.

Tanya’s Beauty Supply Store is a newly established, independently owned beauty supply store located in Las Vegas, Nevada. Tanya’s will be the go-to supply store for anything and everything beauty supply related. The beauty supply store will be located in a popular high-trafficked area where thousands of Las Vegas residents with disposable income frequent. It is known as Fashion Square where there are trendy boutiques, salons, and businesses all within walking distance. Tanya’s customer base will consist of males and females from all walks of life that shop for hair products, makeup, skin products, and nail products. The salons in the area will also purchase their salon inventory from Tonya’s Beauty Supply Store.

Tanya’s Beauty Supply Store will feature all beauty supply products for hair, nails, skin, makeup, and accessories. Anything that is found at a full-service beauty salon can be found at Tanya’s Beauty Supply Store.

Product Offering

The following are the products to be offered by Tanya’s Beauty Supply Store:

• Hair tools and brushes
• Nail products
• Makeup and makeup accessories
• Skin care products

Customer Focus

The customer focus for Tanya’s Beauty Supply Store will target all men and women in Las Vegas ages 16 – 69 who regularly purchase beauty products for their hair, skin, or nails. This target market will have disposable income and will be able to afford to frequently purchase beauty supply products. They will also target local salons to be able to provide the products they use and sell in their salon. Tanya’s Beauty Supply Store aims to be the go-to destination for anything beauty related in Las Vegas.

Management Team

Tanya will manage the day-to-day aspects of the beauty supply store, order product inventory, design the displays, hire and train the staff, and post on the business’ social media accounts. Tanya will also manage the partnerships and contracts she will have with the local salons. She will hire an assistant store manager to assist with administrative functions, product inventory, and manage the store when Tanya is unable to be there. To start with, Tanya will hire a staff of 6 – 8 part-time and full-time employees to assist with stocking of the merchandise and offer exceptional customer service. As the business grows and it is financially able to do so, Tanya’s Beauty Supply Store will hire more supervisors and employees in order to meet growing customer demand.

Success Factors

Tanya’s Beauty Supply Store is primed for success by offering the following competitive advantages:

• Wide selection of every type of beauty supply – if you need anything beauty related, Tanya’s Beauty Supply is sure to have it!
• Cost effective pricing that beats all local competitors. Tanya’s will carry the lowest prices in town without sacrificing quality.
• Tanya’s Beauty Supply is able to sell to individuals as well as supply full salons. The large inventory list is sure to be able to service any type of salon – large or small.
• Competitive pricing model for salons who choose to purchase their salon inventory from Tanya’s. There will be larger discounts for the larger orders. The more a customer orders, the more discounts they are able to receive.

Financial Highlights

Tanya Mendez is seeking $500,000 in debt financing to open a beauty supply store in Las Vegas, Nevada. The funding will be dedicated for product inventory, leasehold improvements, working capital, advertising agency and website developer fees, and three months of payroll. The breakout of the funding is below:

• Beauty supply store design/build: $100,000
• Opening inventory: $300,000
• Working capital: $25,000
• Three months of payroll: $45,000
• Advertising agency and website developer: $30,000

The following graph below outlines the pro forma financial projections for Tanya’s Beauty Supply Store.

36 Facts About Nizhny Tagil

Written by Atalanta Jester

Modified & Updated: 25 Jun 2024

Reviewed by Sherman Smith

Nizhny Tagil, located in the Sverdlovsk Oblast region of Russia, is a city filled with rich history and fascinating facts. From its roots as a prosperous industrial center to its picturesque landscapes and cultural landmarks, Nizhny Tagil offers a unique blend of old-world charm and modern developments.

In this article, we will delve into 36 interesting facts about Nizhny Tagil that will give you a deeper understanding of this captivating city. Whether you are planning a visit or simply curious about its heritage, these facts are sure to pique your interest and showcase the distinctiveness of Nizhny Tagil.

Key Takeaways:

• Nizhny Tagil, a bustling city in Russia, is famous for its T-72 tank, vibrant culture, and stunning natural landscapes. It’s a must-visit destination for history buffs and nature lovers alike.
• With a rich industrial heritage, warm locals, and diverse cultural events, Nizhny Tagil offers a unique blend of history, community, and promising future. It’s a city that welcomes visitors with open arms.

Birthplace of the legendary T-72 tank.

Nizhny Tagil is the birthplace of the world-famous T-72 tank, which played a significant role in various conflicts around the globe.

Home to the Uralvagonzavod factory.

The city is proud to be the home of Uralvagonzavod, one of the largest tank manufacturers in the world.

Boasts a population of over 360,000 residents.

Nizhny Tagil is home to a vibrant community of more than 360,000 people, making it a bustling city in the Sverdlovsk Oblast.

Surrounded by picturesque Ural Mountains.

The city is nestled in the breathtaking Ural Mountains, offering stunning natural landscapes and outdoor recreational opportunities.

Hosts the annual “City Day” celebration.

Nizhny Tagil celebrates its rich history and culture with the lively “City Day” festival held every year in July.

Known for its metallurgical industry.

The city has a strong metallurgical industry, contributing to Russia’s overall industrial development.

Produces a significant portion of Russia’s steel.

Nizhny Tagil plays a crucial role in the production of steel, contributing to Russia’s economy and infrastructure.

Home to the Museum of Russian Classic Literature.

The city is proud to house the renowned Museum of Russian Classic Literature, showcasing the works of famous Russian writers.

Offers diverse cultural events and festivals.

Nizhny Tagil hosts a plethora of cultural events and festivals throughout the year, showcasing local talent and traditions.

Features a vibrant music and arts scene.

The city boasts a thriving music and arts scene, with numerous art galleries, theaters, and music venues.

Located at the crossing of two rivers.

Nizhny Tagil is situated at the confluence of the Tagil and Vyatka rivers, providing beautiful waterfront views.

Known for its renowned hockey team.

The city’s ice hockey team , HC Nizhny Tagil, has a strong following and competes in the Russian ice hockey league.

Rich in historical landmarks.

Nizhny Tagil is dotted with historical landmarks, including the restored neoclassical Nizhny Tagil Railway Station.

Offers a variety of outdoor recreational activities.

Surrounded by nature, the city provides ample opportunities for outdoor activities such as hiking, skiing, and fishing.

Known for its influential literary figures.

Nizhny Tagil has been the birthplace and home of several renowned Russian writers, making it a significant literary hub.

Features a unique blend of architectural styles.

The city showcases an eclectic mix of architectural styles, ranging from neo-Gothic to Soviet-era structures.

Boasts a rich mining history.

Nizhny Tagil has a storied mining history, with the extraction of various minerals contributing to its economic development.

Home to beautiful parks and gardens.

The city is adorned with well-maintained parks and gardens, offering residents and visitors serene green spaces to relax and unwind.

Famous for its local cuisine.

Nizhny Tagil is renowned for its delicious local cuisine, with hearty dishes that showcase the region’s culinary traditions.

Houses the Nizhny Tagil State Technical University.

The city is home to the prestigious Nizhny Tagil State Technical University, providing quality education and research opportunities.

A hub for the railway industry.

Nizhny Tagil is a significant hub for the railway industry , with a well-developed railway network and infrastructure.

Hosts the annual “Russian Steel” exhibition.

Every year, Nizhny Tagil hosts the highly anticipated “Russian Steel” exhibition, showcasing the latest innovations in the steel industry.

Features a vibrant nightlife scene.

The city comes alive at night, offering a variety of bars, clubs, and entertainment venues for residents and visitors to enjoy.

Home to the iconic “Taghilsky Drops.”

The picturesque “Taghilsky Drops” waterfall, located on the Tagil River, is a favorite spot for nature lovers and photographers.

Known for its strong sense of community.

Nizhny Tagil prides itself on its close-knit community, where residents support and care for one another.

Offers a wide range of educational institutions.

The city provides a comprehensive educational system, with schools, colleges, and universities catering to various academic needs.

Has a rich folklore tradition.

Nizhny Tagil has a vibrant folklore tradition, with folk songs, dances, and stories passed down through generations.

Home to the iconic “Church on the Blood.”

The stunning “Church on the Blood” is a prominent landmark in the city, known for its striking architecture and historical significance.

Has a thriving sports culture.

Nizhny Tagil residents have a strong passion for sports, with a wide range of athletic clubs and facilities available.

Connected to the Trans-Siberian Railway.

The city is conveniently connected to the Trans-Siberian Railway, allowing for easy travel to other parts of Russia .

Home to the Nizhny Tagil Iron and Steel Works Museum.

The city’s Iron and Steel Works Museum showcases the region’s industrial heritage and the evolution of steel production.

Surrounded by picturesque forests.

Nizhny Tagil is enveloped by lush forests, providing a peaceful and serene escape from the urban bustle.

Hosts the annual Shchelokovsky Fair.

The Shchelokovsky Fair is a beloved tradition in Nizhny Tagil, bringing artisans, musicians, and vendors together for a vibrant celebration.

Known for its warm and welcoming locals.

The residents of Nizhny Tagil are known for their warmth, hospitality, and friendly demeanor towards visitors.

Boasts a diverse industrial sector.

In addition to steel production, the city is home to various industries such as machinery manufacturing, chemical production, and more.

A city with a bright future.

Nizhny Tagil continues to grow and develop, with ongoing efforts to enhance the quality of life for its residents and attract investments.

These 36 facts about Nizhny Tagil provide a glimpse into the city’s rich history, cultural significance, and promising future. Nizhny Tagil is a city that captivates with its industrial prowess, natural beauty, and vibrant community, making it a must-visit destination in Russia.

Nizhny Tagil is a fascinating city with a rich history and vibrant culture. From its industrial roots to its natural beauty, there is no shortage of things to discover in this unique Russian city. Whether you’re interested in exploring its museums and monuments, experiencing its lively festivals, or simply enjoying the picturesque landscapes, Nizhny Tagil has something for everyone. So, don’t miss the opportunity to visit this hidden gem and immerse yourself in the charm and allure of Nizhny Tagil.

Q: What is the history of Nizhny Tagil?

A: Nizhny Tagil has a rich history that dates back to the 18th century. It was known as a center for iron and steel production and played a significant role in the industrialization of Russia.

Q: What are the must-visit attractions in Nizhny Tagil?

A: Some of the top attractions in Nizhny Tagil include the Demidov Museum, the Nizhny Tagil Metallurgical Plant, the Nevyansk Tower, and the Nature Reserve “Deer Streams.”

Q: What is the best time to visit Nizhny Tagil?

A: The best time to visit Nizhny Tagil is during the spring and summer months (April to September) when the weather is pleasant and ideal for outdoor activities.

Q: Can I experience the local cuisine in Nizhny Tagil?

A: Absolutely! Nizhny Tagil offers a range of delicious traditional Russian dishes, including pelmeni (dumplings), borscht (beet soup), and blini (pancakes). Don’t miss the opportunity to savor the local flavors.

Q: Are there any cultural events or festivals in Nizhny Tagil?

A: Nizhny Tagil hosts several cultural events and festivals throughout the year, including the Rock City Festival, the City Day celebration, and the Festival of Blacksmith Arts. These events offer a glimpse into the local traditions and vibrant arts scene.

Q: Is Nizhny Tagil a safe city for tourists?

A: Nizhny Tagil is generally a safe city for tourists. However, like any other destination, it is always advisable to take standard precautions and be aware of your surroundings.

Q: How can I get around Nizhny Tagil?

A: Nizhny Tagil has a well-developed public transportation system, including buses and taxis. It is also possible to explore the city on foot, as many attractions are within walking distance of each other.

Q: Are there any accommodations options in Nizhny Tagil?

A: Yes, Nizhny Tagil offers a range of accommodations, including hotels, guesthouses, and apartments, to suit different budgets and preferences.

Q: Can I visit Nizhny Tagil as a day trip from nearby cities?

A: Yes, Nizhny Tagil is easily accessible from nearby cities like Yekaterinburg and can be visited as a day trip. However, to fully explore and experience the city, it is recommended to stay for a few days.

Nizhny Tagil's fascinating history, cultural richness, and natural beauty make it a must-visit destination. Uncover more captivating facts about other Russian cities , such as Orenburg, where you can explore its unique blend of European and Asian influences. For a glimpse into the lives of those who call an industrial city home, read about Norilsk's resilient residents. Lastly, discover the majestic Ural Mountains , which serve as a stunning backdrop to Nizhny Tagil and hold countless secrets waiting to be revealed.

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