Are you about starting a nail polish production business? If YES, here is a complete sample nail polish production business plan template and feasibility report you can use for FREE.
In our world today, people are very cautious about their looks and this has made the nail polish production business a million dollar industry in cosmetic products. It is a known fact that nail polish is a lacquer kind of product that is used to decorate and protect human fingernails and toenails.
We all know that demand for nail polish is rising rapidly particularly in urban areas due to factors such as greater purchasing power because of higher income, urge to look better and more attractive etc. You need to decide on what type of nail polish you are going to make, whom you will offer your product, objectives and goals of your nail polish production business.
A Sample Nail Polish Production Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
It is a known fact that the vast range of beauty and personal care goods manufactured by the Cosmetic and Beauty Products manufacturing industry protects its participants from drastic changes in disposable income. Indeed fluctuating incomes do affect cosmetics, but essential goods such as shampoo, experience steadier demand.
Revenue in the industry has increased steadily in recent years and some of the industry’s largest export partners started to enjoy post recessionary growth. It has been estimated that in the coming years, the industry’s diverse product lines and commitment to research and development will keep revenue growth steady and interesting.
Also, the industry is in the growth phase of its life cycle, though it is expected to enter the mature phase in the near future.
The Industry value added is expected to grow at an average annual rate of 0.7% in the next 10 years. According to experts, this rate is significantly slower than GDP growth, which is expected to grow at an average annual rate of 2.2% during the same period.
Since the IVA growth is slower than GDP growth, it is typically indicative of an industry in the mature or declining stage of its life cycle. The industry is still expected to keep growing as it is still experiencing high rates of industry entrants and product development.
2. Executive Summary
LaSalle is a standard company that has built a brand concept of nail polish, making use of multiple channels of distribution.
LaSalle is currently seeking for unique investors to finance the growth of the brand, and position us in the forefront of the industry and make us ready for an IPO. Our business plan is being written to explain our market, our value proposition and our market segmentation strategy.
Our detailed financial plans in this business plan provides a clear view of our sales and profit forecasts. It actually explains and shows that we at LaSalle will reach profitability in our third year of operation and generate shareholder return on equity within five years.
We at LaSalle will accomplish maximum profits and good brand awareness using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence and a consumer catalogue.
We believe that by utilizing this multi-channel approach, we at LaSalle will be able to reach our niche market for quality nail polish. We hope that it will allow us to develop our unique business as the brand for quality nail polish for our prospective customers.
LaSalle is a unique nail polish production company that will be based in Alexandria, Virginia. This unique business is 100% owned by Friday and Margaret Dawson, the founders. Together, Friday and Margaret Dawson have 40 years worth of combined experience in the cosmetics retail industry.
Both of them have held senior management positions with major companies in the industry. Our main office is located in the centre hub of Alexandria, Virginia. We believe that our leased office space will be enough for our planned staff size growth within the first few years.
3. Our Products and Services
We at LaSalle believe that our products will be developed and produced at our contract facilities in Alexandria and Denmark.
Also our Production of nail polish products will be managed through our contract manufacturers. We at LaSalle have two product lines, nail polish and skin care products. Our Skin care products will offer a vast range of products including eye makeup removers, cleansing creams, facial scrubs and masks, and body lotions.
Our Pricing Strategy at LaSalle is to kick start our products with a shelf price that is in the mid to lower quadrant of high-quality products and brands. We at LaSalle believe that by making careful market comparisons and adjusting our packaging size, we will be able to position our self strategically in the industry.
It is also our vision at LaSalle that our ability to create future product opportunities and growth will only be limited by our imagination and our ability to attract talented people who understand the concept of branding and customer retention.
4. Our Mission and Vision Statement
- Our vision at LaSalle is to become an important brand that represents quality in nail polish production and skin care products.
- Our mission at LaSalle is to make use of high quality manufacturing and research, a creative marketing and PR program, creating of a brick and mortar retail presence, and developing a wholesale distribution network to become the lead figure in the global industry.
Our Business Structure
We will at all time work under the best of business structures, so that we can attain a great business height. Our initial management team at LaSalle is very compact.
Our CEO and founder is the only current (full-time) employee, but we have made use of every significant external resource and have gotten for ourselves a committed and talented team to join LaSalle as our funding gets in place and more sophisticated. Below are the portfolios we wish to start LaSalle with;
- Chief Executive Officer
- Director of Retail Operations
- Creative Manager
- HR and administrative manager
- Product Designer
- Marketing and Sales Manager
- Security guard
5. Job Roles and Responsibilities
Chief Executive Officer
- He will be in charge of providing work direction for the business
- He is charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of all the business strategy.
- He is also responsible for fixing prices and signing business deals for the business
- He is in charge of employment
- He also pays workers salary
- He will be responsible for signing checks and documents for and on behalf of the business
- He also evaluates the success of the organization
Director of Retail Operations
- Charged with developing retail operation goals, start-up and annual budgets, and metrics for measuring success.
- Work with designers and contractors to build and install high quality designs appropriate for a contemporary cosmetic business.
- Develop and implement merchandise plan for the venture, work effectively with specialists and designers as needed.
- Work with business team to develop inventory storage and restocking plan.
- Select and implement software for managing retail operations for the business.
- Select and stock new, interesting, desirable, and high quality merchandise that reflects the collection, supports engagement efforts, and attracts visitors in its own right.
- With the management team, develop a marketing and event plan specific to the shop that supports the company’s goal to expand public access to and engagement with unique products.
- Create and prepare budgets, projections and overhead costs.
- Develop, implement, and maintain retail staff pay scale and incentives.
- Coordinate with the associate director of visitor services for the recruitment, interviewing and hiring of a retail team.
- Orient and train new employees.
- Develop an online presence for retail operations.
- Tasked with accomplishing work requirements by orienting, training, assigning, scheduling and coaching employees.
- Will have to meet work standards by following production, productivity, quality, and customer-service standards; resolving operational problems; identifying work process improvements.
- Tasked with meeting cost standards by monitoring expenses; implementing cost-saving actions.
- In charge of developing basic presentation approaches by reviewing materials and information presented by client.
- Determines production requirements by reviewing client requirements; considering scheduling factors.
- Charged with determining production schedule by conferring with heads of art, copy writing, and production departments; outlining basic presentation concepts; coordinating creative activities.
- Charged with determining project content by reviewing and approving art and copy materials developed by staff.
- Obtains client approval by presenting final layouts to client.
- Charged with improving quality results by studying, evaluating, and re-designing processes; recommending changes to art, copy writing, and production departments.
- 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.
- Charged with developing marketing strategies by examining client objectives; planning, scheduling, and completing design and production requirements for direct marketing, telemarketing, and advertising.
- Keeps clients informed by compiling, analyzing, and reporting marketing results; forwarding plan projections and updates.
- Revises marketing plan by analyzing campaign results; identifying expansion opportunities.
- Charged with monitoring marketing mix and results by coordinating tracking actions with sales and marketing representatives.
- Improves marketing quality results by studying, evaluating, and re-designing creative processes; implementing changes.
- Helps clients by answering questions and responding to requests.
- Updates job knowledge by participating in educational opportunities and in professional organizations.
- Accomplishes marketing and organization mission by completing related results as needed.
HR and Administrative manager
- In charge of overseeing the running of HR and administrative tasks for the company
- Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Stay updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Builds the company’s reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- State job positions for recruitment and managing interviewing process
- Organize staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Oversee the smooth running of daily office activities.
- meeting clients or colleagues to discuss the design brief
- working closely with engineers, model makers, sales and marketing staff and other skilled people
- understanding technology, production methods and materials involved
- working within budgets
- working to deadlines
- researching similar products and developing ideas
- making sketches of ideas by hand or computer, and developing the most effective ideas into detailed drawings using specialist computer software
- ordering samples or working models of designs
- producing reports and presenting their ideas to colleagues and clients at various stages of the design process
- modifying their ideas according to the feedback they receive at these sessions
- overseeing the testing of the chosen design
- Making presentations to potential clients in order to win new contracts.
- In charge of preparing financial reports, budgets, and financial statements for the company
- Gives management the financial analysis, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Understand cash management, general ledger accounting, and financial reporting
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensuring compliance with taxation legislation
- Take care of all financial transactions for the business
- Serves as internal auditor for the organization
Marketing and Sales Manager
- Oversees external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Creates demographic information and analyses the volumes of transactional data generated by customer purchases
- Understands, prioritizes, and reaches out to new partners, and business opportunities et al
- Understands development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create, executes and evaluates new plans for expanding increase sales
- Keep all customer contact and information
- Represents the company in strategic meetings
- Aids to increase sales and growth for the business
- In charge of cleaning the facility at all times
- Makes sure the toiletries and supplies don’t run out of stock
- Makes sure that both the interior and exterior of the facility are always clean
- Handles any other duty as assigned by the manager
- In charge of protecting the agency and its environs
- Controls traffic and organizes parking
- Gives security tips when necessary
- Patrols the building on a 24 hour basis
- Presents security reports weekly
6. SWOT Analysis
LaSalle being a unique business understands the need to be prepared and the importance of making adequate plans for one’s business. We also understand that a business plan is not complete without a SWOT Analysis, which will tell your flaws and strengths.
We employed the services of a renowned consulting firm to aid with our SWOT Analysis. Below are the results presented to us at LaSalle;
- Our Business location at LaSalle
- We have no local competition within the city
- We have an impeccable customer service tradition
- Our vendors have high reputation for high quality products and custom workmanship
- We can produce smaller jobs that some competitors will not accept
- The cosmetic industry is very competitive
- Our prototype website may not have the ability and sophistication to compete with other competitors websites
- Cash flow for publicity is impaired
- Business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)
- Our Business area is growing in population with median household income
- We should be able to capitalize on our competitive edge if sales representatives can communicate effectively to local business owners
- A sophisticated website may attract both local and out-of-area customers
- Our planned way of generating fund will surely boost us
- Prolonged economic downturn that hinders the rebound of area businesses and limits discretionary income
- Industry wide technological advances that could render existing store equipment as obsolete
- A new competitor opening in the immediate area
7. MARKET ANALYSIS
- Market Trend
Indeed managing a nail polish production business successfully needs you to not only be passionate about the business but also possess business acumen as well. It is believed that this business acumen will aid you successfully guide the nail polish business through obstacles and challenges that might be encountered during the course of the business.
We at LaSalle are very dedicated to remain knowledgeable and updated about industry trends so as to keep up with the needs of our customers. We also hope to produce different unique nail polishes to be able to cater to those that love their nails to be unique and noticeably different.
Also we plan to make sure that our nail polish is in many nail salons, spas, pedicure and manicure places, so that our end user clients can be aware of our brand and on their own purchase for themselves as well.
8. Our Target Market
We will make sure that we reach out to those who will mostly need our service. LaSalle runs a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy, and as such our target customer is broken into two distinct groups, the end user and the reseller.
We believe that our targeted end users are urban professionals with at least some college between the ages of 24 and 65. We believe that these consumers have an active lifestyle. These people are concerned about social and environmental issues.
They attach much importance to mind and body wellness. They belong to a health club; take yoga, Pilate’s or tai chi lessons. Reversing the effects of aging and the maintenance of a youthful appearance are a part of their life.
These target markets are predominantly female, who are well educated. Their buying power in the industry is estimated at $5.7 trillion. (In comparison, the junior market is estimated at $100 billion). It has been estimated that 64% of working women earned more than one half of the family income.
Also today, businesses owned by women generate over $9.4 trillion in annual sales. Of the net increase in the workforce between 2010 and 2015, 74% are projected to be women. In retail, the female consumer is the primary decision maker in 85% of households. Women buy or influence the purchase of 80% of consumer goods.
Their increasing educational attainment makes young women even more sophisticated and demanding consumers. We at LaSalle believe that Today’s female consumer is living a transactional life with multiple constituencies. Their life is on fast forward.
It is important to note that our target customers (vs. end user) for wholesale distribution will be resellers who recognize the needs of this consumer and who she identifies with. We have used the term resellers because they will not be limited to retailers but to all possible target market.
Our competitive advantage
We at LaSalle will occupy a unique market position because we believe that no other brand offers a specialty line that includes skin care and nail polish in our business location.
We at LaSalle believe that we will develop our market position by putting together a retail strategy that includes a day spa with a wholesale distribution strategy. We at LaSalle will acquire the validity afforded the spa brands and access to broad distribution.
Our skin care and nail Polish will offer therapeutic benefits to the user based upon the principles of Thalassic therapy in our water line and Botanical treatments in our earth line. All of our products will be positioned at the quality conscious consumer.
Our marketing campaign and PR positioning will reinforce the image of the company. We believe that our message will be to identify the benefits of our products and to develop an image that makes LaSalle products highly desirable. Also our pricing strategy will be to maintain retail price points in the lower quadrant of the top quality brands in the industry.
9. SALES AND MARKETING STRATEGY
- Sources of Income
We at LaSalle plan to distribute quality personal nail polish, skin care products and related accessories. This we believe would be accomplished through a combination of company-owned retail outlets and wholesale distribution. We plan to raise funds from the selling of these products.
Without much argument, we actually understood the need to sustain our business with the funds we make. We are very much focused to stay in the game and set standards for the industry. Our knowledge of the industry we believe will make us successful.
10. Sales Forecast
We at LaSalle believe that sales in retail stores are planned to grow astoundingly from 2016 to 2022. Weat LaSalle believes that this represents a phenomenal growth rate per year for the first five years. This growth is comprised of two factors.
Firstly, average comparable store sales growth over five years. Also, that this average rate is a composite of the planned rates year one through year five.
Secondly, new store-opening schedules to result in eight locations, is being opened at the end of year five. Wholesale sales are expected to rise greatly by the end of 2017. Our PR team believes this growth is achievable for the following reasons:
- We believe that a great deal of our growth will come from adding doors. We will begin 2018 with no accounts. As we add accounts we will experience both per door growth and geometric growth in the size of our wholesale client base.
- We believe that our product launch schedule will result in our range being approximately 10 times as large in product offering by the beginning of 2018.
- Our breathtaking advertising plan (media and PR) is to rise our annual media spend extensively by 2018. This will increase brand awareness by both the consumer and the retailer.
- Our wholesale sales plans do not include sales to our own outlets or from the catalogue. Our margin plans reflect these sales coming from first cost. It is our belief that this approach assures a true measure of profitability for our retail stores and a true measure of growth for our wholesale efforts.
- Marketing Strategy and Sales Strategy
We at LaSalle believe that we will utilize a brand building (pull) strategy as the basis for our marketing plan. Our management team hopes to position our print media spend in magazines that influence our target consumer and validate the brand.
Here are the publications we will utilize are: Stars, Women’s Health, Fashion Life, Cosmopolitan, Travel & Leisure, Vanity Fair, Visitors, In Style, Food & Wine, Shape, Town and Country, Facts and the New York Times Sunday edition.
We believe that these are the same publications retail buyers and trend analysts scour to find emerging brands or trends. Also In addition to paid ads in regional issues of the publications mentioned, we will retain a PR firm to develop a grass roots program for obtaining product placement and celebrity/trainer endorsements.
The unique media and PR strategy at LaSalle will bring the brand to the forefront for the consumer and set the stage for our image development in the industry. Below are the few strategies we hope to leverage;
- We plan to develop our product packaging
- We also plan to produce brochures
- We plan to create a video for our company
- We plan to select a PR firm and also create our own graphic language
- Development of our print campaign and creation of our customer seminar
- Development of bonus week programs and products
11. Publicity and Advertising Strategy
There will always be a strong need to let people know about our business. We at LaSalle understand properly the need for us to show people the services we offer and make our business well-known and highly patronized in all California, which is why our publicity strategy will cover a broad range of programs.
- Our Pricing Strategy
We at LaSalle believe that we will not have price promotions in our own facilities and we will discourage our wholesale customers from reducing prices.
But we plan to always have a quarterly bonus week where consumers will receive a free gift with any LaSalle purchase over a pre-set amount. We hope to give out gift sets that will consist of sample size LaSalle products from our most current launch in a specially designed tote or gym bag.
- Unique Consumer Mailers
We at LaSalle will have a monthly mailer for our customers. These mailers will be designed to educate the consumer about the advantage of a particular product or ingredient.
- Customer Seminars
We at LaSalle believe that our point of sale system will track consumer sales and usage by customer. Also we will invite our best customers to quarterly seminars on nail polish and skin care products.
- Promising Affiliations
We plan to create connections with spas, saloons and all businesses we believe will move our products closer to the final consumers.
- Public Relations
We at LaSalle plan to contract a top public relations firm to develop and execute a gorilla campaign for the company. The objective will be to secure product placement in key publications and endorsements by opinion leaders.
12. Our Pricing Strategy
Our pricing strategy at LaSalle will be to build a price-to-benefits ratio that positions our unique business as a superior value in the industry. We believe that at wholesale we will price our products to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts.
Also our wholesale prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer and the retailer has a 50% margin.
- Payment Options
Our experienced management understands that as our various issues differ, so do our wants and the way we prefer to do basic transactions also differs, which is why we have made adequate plans to create a platform that will suit our diverse clients at different times.
We have also partnered with a renowned banking platform to serve our clients very well and comfortably. We hope to make available the following payment options for our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment through POS
- Payment through PayPal
- Payment via check
- Payment via bank draft
- Payment with cash
13. Startup Expenditure (Budget)
Our Business at LaSalle is a unique business that took years and strength to plan. We also understand that the start-up cost of starting a business like ours is solely divided into three folds; the cost of organizing your office structure, the capital meant for inventories, and the cost of other issues like advertising and business registration.
We’ve been very careful to research and understand the basic things we need to start a business that will be the best in little or no time. The financial projection and costing of LaSalle is outlined as follows;
- Cost of incorporating the Business – $750
- Cost for basic insurance policy covers, permits and business license – $10,000
- The cost of acquiring a suitable office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $55,000
- The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12, 000
- The Cost of Launching our official Website – $600
- Our budget for paying at least three employees for 6 months plus utility bills – $36,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Our Inventory fund – $2,000,000
- Miscellaneous: $1,000
From our cost analysis above, you will understand that LaSalle is not a trial and error business but a firm with power, plan and opportunities. We believe we will need $122,850 and our $2million inventory fund to start LaSalle.
- Generating Funding/Start-up Capital for LaSalle
This unique business was established with a basic love, connection and experience by two individuals who have been together and have extended their bonds from the floor of marriage to the pinnacle of entrepreneurship. They will prefer to fund the business privately for now, but are likely to source for external funds as the business grows.
These are the areas where we intend to generate start-up capital for LaSalle
- Raise part of the start – up capital from personal savings
- Source for soft loans from family members and friends
Note: Our management have been able to raise $2 million from the two founding partners ($1 million each). They have been able to raise these amounts through their individual savings and few soft loans from their families. They believe that the have what it takes to fund their business completely, while also giving the best to their clients.
14. Sustainability and Expansion Strategy
Our retail sales strategy at LaSalle will consists of just two parts. First we plan to hire and train people who fit our image and lifestyle at LaSalle.
We at LaSalle believe that our training programs will make sure that we have the product knowledge necessary to serve the customer needs and close the sale. Also our commission and retention programs will make sure that we recognize and reward performance.
We believe that our sales people will be on a commission program that compensates for follow up sales at progressively higher rates. All this we believe will provide an incentive for consumer follow up and the creation of repeat business.
Our Management believes that our target retail and cosmetics customers are motivated by a different set of values. Sometimes they need products that draw consumers to their establishments and offer them an acceptable return. We believe that they need vendors to provide training and marketing support and they need to offer their customers a reason to come back.
We at LaSalle will address each of these needs for our retail clients and we will create LaSalle as a brand we will be pulling consumers into their doors.
We believe that our technical representatives will offer them a resource for training and developing their own staff while our shop in shop programs will offer them in-store featuring and point of sale support, and our concession program will provide them the opportunity to have a complete LaSalle operated facility in their location.
We will offer a product return and exchange privilege for qualified accounts that assures them a maintained margin of 50%. Our Management will limit wholesale distribution so retail clients will gain a market advantage over their competitors.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts with various banks in the united states: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All forms of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start–up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress