example of a business plan for a beauty supply store

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

You’ve come to the right place to create your beauty supply store business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their beauty supply store businesses.

Below are links to each section of your beauty supply store business plan template:

Next Section: Executive Summary >

Beauty Supply Store Business Plan FAQs

What is a beauty supply store business plan.

A beauty supply store business plan is a plan to start and/or grow your beauty supply store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your beauty supply store business plan using our Beauty Supply Store Business Plan Template here .

What Are the Main Types of Beauty Supply Stores?

There are many types of beauty supply stores. Some beauty supply stores focus on name brand products and tend to be on the higher side of the retail spectrum while other beauty supply stores provide lesser known brands at discount prices. Other beauty supply companies focus on specific consumers and have a smaller, yet specific target market and other beauty supply stores are in the middle of the high end store and discount store options.

What Are the Main Sources of Revenue and Expenses for a Beauty Supply Store Business?

The primary source of revenue for beauty supply stores are the products sold at the store.

The key expenses for a beauty supply store business are the cost of purchasing the product inventory. Other expenses are the overhead costs for employees, rent, utilities, and any marketing for the store.

Read more about how to get funding: Seeking Funding from Angel Investors vs Venture Capitalists .

How Do You Get Funding for Your Beauty Supply Business Plan?

Beauty supply store businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a beauty supply store is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options.

What are the Steps To Open a Beauty Supply Store?

Opening a beauty supply store business can be an exciting endeavor. Having a clear roadmap of the steps to open a business will help you stay focused on your goals and get started faster.

1. Develop A Beauty Supply Store Business Plan - The first step in opening a business is to create a detailed business plan for beauty supply store that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your beauty supply store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your beauty supply store business is in compliance with local laws.

3. Register Your Beauty Supply Store Business - Once you have chosen a legal structure, the next step is to register your beauty supply store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to open your beauty supply store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Beauty Supply Store Equipment & Supplies - In order to start your beauty supply store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to open promoting and marketing your beauty supply store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to open a successful beauty supply store business and help with your beauty supply retail store business plan: 

• How to Start a Beauty Supply Store Business

Where Can I Get a Beauty Supply Store Business Plan PDF?

You can download our beauty supply store business plan PDF template here . This is a business plan template you can use in PDF format.

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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.

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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• 5 Licenses & Permits You Need to Open a Beauty Supply Store

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Here's how you open a profitable beauty supply shop.

Launching a beauty supply store is an exciting venture for those with a love for cosmetics, skincare, and helping others feel their best.

Whether you're a seasoned beauty industry professional aiming to establish your own retail space or an enthusiast ready to transform your passion into a thriving business, setting up a beauty supply store requires strategic planning and commitment.

In this blog post, we'll walk you through the crucial steps of opening a beauty supply store, from the initial idea to the ribbon-cutting ceremony.

How you should prepare to open a beauty supply shop

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a beauty supply store because it will determine the range of products you offer, the store's aesthetic, and the clientele you attract.

This decision will influence your location choice, store layout, inventory selection, pricing, and marketing approach. A well-defined concept can help your beauty supply store stand out and draw in the right customers.

Essentially, selecting a concept is like deciding on the theme of your store before you start stocking the shelves and promoting your brand.

To assist you in making an informed choice, we have summarized the most popular concepts for a beauty supply store in the table below.

Pick an audience

When opening a beauty supply store, it's crucial to tailor your offerings to the specific needs and preferences of your target audience.

For instance, if you're aiming to attract a clientele of beauty enthusiasts and makeup artists, you'll want to stock a wide range of high-quality, professional makeup products. Your store might be situated in an urban area with high foot traffic from individuals interested in the latest beauty trends.

Conversely, if your target market is individuals looking for natural and organic beauty solutions, your product selection would focus on eco-friendly and cruelty-free brands. The store's design might incorporate natural elements and be located in a neighborhood known for its environmental consciousness.

Understanding your audience is essential because it shapes every aspect of your beauty supply store, from the inventory you carry to the store's design and location. It's similar to choosing a present; you consider the recipient's preferences before deciding what to get. This ensures they'll appreciate the gift.

Additionally, knowing your target customers allows you to communicate with them more effectively. If you're aware of who you're trying to reach, you can determine the best methods to advertise your store. For example, if you're focusing on young adults, social media advertising might be the most effective strategy.

In our business plan for a beauty supply store , we outline various customer segments that could be pertinent to your venture.

To help you envision the potential audiences for your beauty supply store, we've compiled a summary of typical customer segments below.

Get familiar with the industry trends

As you can imagine, staying informed about the emerging trends in the beauty industry is crucial when opening a beauty supply store. These trends can guide you in selecting the right products and services to offer, ensuring that your store remains relevant and competitive.

Trends are a window into the consumer's current interests and preferences. By aligning your product offerings with these trends, you can attract a clientele that's eager to explore the latest in beauty and personal care. Moreover, featuring trending items can differentiate your store from competitors who may be slower to adapt to market changes.

Actually, we update our business plan for a beauty supply store twice a year to include the latest emerging trends. We believe this will assist you in creating a more successful and trend-forward beauty business.

For instance, there's a growing demand for clean beauty products, which are formulated without harmful chemicals and are often organic and cruelty-free. Stores that offer a wide range of clean beauty options are likely to appeal to health- and environmentally-conscious consumers.

Additionally, we've observed that consumers are increasingly looking for personalized beauty solutions, such as custom skincare regimens or makeup colors that match their specific skin tone perfectly.

Moreover, sustainable and eco-friendly practices are becoming more significant to customers. This includes products with biodegradable packaging, refillable containers, and brands that have a clear commitment to reducing their environmental impact.

In the era of influencers and social media, products that are visually appealing or endorsed by beauty gurus can see a significant increase in demand due to their shareability and the trust consumers place in influencer recommendations.

We have listed more trends in the table below.

However, there are also some declining trends.

As consumers become more ingredient-savvy, there's a noticeable decline in the popularity of beauty products with synthetic fragrances, parabens, and other controversial ingredients.

Also, with the rise of the 'skinimalism' movement, overly complicated beauty routines with numerous steps are becoming less appealing compared to simpler, more efficient regimens.

Finally, with a growing environmental consciousness, products with non-recyclable or excessive packaging are increasingly being rejected by eco-aware customers.

Choosing the right location

Selecting the right location for your beauty supply store is essential for its success, and it requires careful consideration of several key factors.

Begin by analyzing the local demographics. Understanding the age, gender, and spending habits of the community can help you stock products that cater to their specific beauty needs. An area with a high concentration of millennials might suggest a demand for trendy and eco-friendly beauty products, while a neighborhood with an older demographic may require a focus on anti-aging and wellness items.

Visibility and accessibility are crucial. A storefront that's easily noticeable and reachable by various modes of transportation can significantly increase customer footfall. Look for spaces in high-traffic shopping areas, near popular beauty salons, or close to fashion retailers.

Convenient parking or proximity to public transportation can greatly enhance the shopping experience for your customers, making it easier for them to visit your store regularly.

Competition can be beneficial if it indicates a thriving market for beauty products, but too much can limit your store's growth. Consider the presence of other beauty supply stores and large retailers with beauty sections. Finding a location with few direct competitors can provide a unique opportunity to capture the market.

Rent costs are a significant factor. Prime locations with heavy foot traffic often come with higher rents, so it's vital to weigh the potential for increased sales against the leasing expenses. A balance must be struck to ensure the rent is manageable based on your projected revenue. Sometimes, a less prominent location with substantially lower rent can be more profitable in the long run.

Negotiating favorable lease terms, such as a long-term lease with renewal options, caps on rent increases, or a rent-free period for store setup, can have a positive impact on your beauty supply store's financial well-being.

Assess the growth potential of the neighborhood. Is the area developing, with new residential or commercial projects that could bring in more clientele? Having the option to expand your store in the same location can be a significant advantage as your business grows.

Market research and demographic analysis tools can offer valuable insights into the best locations for your beauty supply store. These resources can help pinpoint areas with the ideal customer base for your product range.

The choice between a bustling city center and a suburban shopping area depends on your target audience and business model. Urban centers provide high visibility and foot traffic but often come with steep rents and intense competition. Suburban locations might offer a loyal customer base and more affordable rent, but they may require additional marketing efforts to establish your store as a go-to destination.

Being situated near beauty hotspots, such as hair and nail salons, spas, or fashion boutiques, can create a steady stream of customers who are already interested in beauty products and services.

It's also important to understand local zoning laws, health regulations, and other legal requirements to ensure that your chosen location is suitable for a beauty supply store. Compliance with these regulations from the outset can prevent costly adjustments and legal issues down the line.

Lastly, consider the long-term prospects of the location. Look into future developments in the area that could impact your business, whether by attracting more customers or by increasing competition or rental costs.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a beauty supply store can vary significantly, ranging from $20,000 to $100,000 for a modest startup to $150,000 to $300,000 for a more upscale location with a comprehensive inventory .

If you want to know the precise budget you will need for your own beauty supply store and also get a full detailed list of expenses, you can use the financial plan we have created, specifically for beauty supply stores . This excel file is designed to be very user-friendly and will provide you with an instant and detailed analysis of your future project.

The budget can fluctuate greatly depending on the store's location. High-end shopping districts with substantial foot traffic will command higher rental fees, which can significantly impact startup costs.

The size of the store is another important factor in determining the initial investment. A larger storefront will not only increase rent but also necessitate a larger inventory, more staff, and higher operational costs.

The quality and range of products you choose to stock can also affect your budget. Offering high-end, professional beauty products can be costly, but they can also attract a more affluent clientele and justify higher price points. On the other hand, starting with a more limited selection of affordable items can help keep initial costs down.

If your available capital is limited, opening a beauty supply store is still achievable with careful planning and smart budgeting. The bare minimum budget might be around $20,000 to $40,000 if you opt for a less expensive location, keep the store size small, source lower-cost or wholesale products, and handle much of the work yourself. This approach requires a strategic focus on a niche market to minimize expenses and complexity.

To maximize a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a beauty supply store include inventory purchases, licensing and permits, insurance, marketing and advertising, technology and software, staff training, store design and renovation, and a reserve for unexpected expenses.

Initial inventory for a beauty supply store includes a wide range of beauty products such as hair care, skincare, cosmetics, and beauty tools. The cost for inventory will vary greatly depending on the brands and quantity of products you decide to carry. On average, you might spend between $20,000 to $150,000. Exclusive or high-end brands will be at the upper end of this range, while more affordable or generic brands can help reduce costs.

Licenses and permits are essential for legal operation. Costs vary by location but typically range from a few hundred to a few thousand dollars. This includes business operation licenses, resale permits, and possibly cosmetology licenses if you plan to offer beauty services.

Insurance is critical to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $2,500 to $10,000 or more, depending on your coverage levels and store size.

Allocating funds for marketing and advertising is crucial for building a customer base. Initially, you might spend between $2,000 to $10,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for point-of-sale systems, inventory management, and accounting software is important. Costs can range from $1,500 to $15,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff to ensure they are knowledgeable about the products and can provide excellent customer service. Setting aside $1,000 to $5,000 for initial training and ongoing professional development can help maintain a high level of service. This also includes any costs for obtaining or maintaining professional certifications.

Store design and renovation are important to create an appealing shopping environment. This can include shelving, lighting, signage, and decor. Initial setup can cost between $10,000 to $50,000, depending on the size of your store and the complexity of the design.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, inventory losses, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for beauty supply stores .

Business plan and financing

Make a solid business plan.

You have probably heard it already but, yes writing a business plan when opening a beauty supply store is crucial.

Why? Because a business plan serves as a roadmap for your venture, detailing your objectives, strategies to achieve them, and the potential hurdles you might encounter. A well-thought-out business plan is not only a tool for staying organized and on track but also critical if you're looking to attract financing from investors or banks, as it shows the feasibility and future profitability of your enterprise.

The key elements of a beauty supply store business plan include market analysis, financial planning, and operational strategy, among others. Market analysis is vital to understand your target demographic, their buying habits, and the competitive environment. It involves examining trends in the beauty industry, pinpointing your primary competitors, and discovering a niche or unique value proposition that distinguishes your store from others.

Financial planning is another essential component. This section should detail your anticipated sales, cost of goods sold (including inventory like skincare, haircare, and makeup products), staffing expenses, and other operational costs. It should also feature forecasts for profit and loss, cash flow, and a break-even analysis. Financial planning offers you and potential backers a transparent view of your store's fiscal health and expansion prospects. You will find all of this in our financial plan for a beauty supply store .

While the structure of a beauty supply store business plan shares commonalities with other business plans, the focus on certain areas may vary.

For instance, a beauty supply store will emphasize product assortment (offering a wide range of high-demand beauty products), supplier relationships (securing reliable and high-quality brands), and location analysis (choosing a site with significant visibility and accessibility). Additionally, ensuring compliance with health and safety standards specific to cosmetic retail is crucial.

To succeed and create an effective beauty supply store business plan, you should conduct in-depth research and maintain realistic financial projections and expectations. Engage with potential clients to grasp their needs, preferences, and spending power for beauty products. Also, consider how scalable your business model is and how you might broaden or adapt your product lines in the future.

In the case of a beauty supply store, special attention should be given to establishing a strong brand identity and marketing strategy that connects with your intended audience. Emphasizing the diversity of your product range, the exclusivity of certain brands, or the personalized customer experience you provide can set your store apart in a competitive industry.

Success depends not only on the variety and quality of your beauty supplies but also on meticulous planning, understanding your market, managing finances prudently, and executing your operational plan effectively.

Remember, a business plan is not a static document but a dynamic one that should be revisited and revised as your beauty supply store grows and adapts to market changes.

Get financed

Don't have the capital to launch your beauty supply store on your own? Don't fret, there are numerous financing avenues available.

Financing for your beauty supply store can come from various sources, including raising capital from investors, securing loans from banks or financial institutions, and obtaining grants or subsidies.

Each financing method comes with its own set of benefits and things to consider.

Raising capital means acquiring funds from investors who will expect equity in your store in return. This is advantageous as it doesn't necessitate repayment like a traditional loan does.

However, it also means parting with a share of your business and possibly some degree of control over decision-making.

For a beauty supply store, this could be a strategic move if you're looking to scale quickly or require substantial initial investment for inventory or a sought-after retail space. To attract investors, you'll need a robust business plan that shows potential for growth, profitability, and a deep understanding of the beauty industry.

Securing a business loan is another common financing strategy.

This option involves repayment with interest but allows you to maintain complete ownership of your store. Loans can be utilized for a variety of purposes, such as stocking up on inventory, covering initial operating costs, or financing store fit-outs.

Banks usually ask for a down payment or collateral; this can vary but often falls between 15% to 25% of the loan's value. It's crucial to consider the proportion of your overall budget that comes from loans to avoid overburdening your business with debt. Ideally, your beauty supply store's projected cash flow should easily cover loan repayments while still allowing for operational costs and growth.

Grants or subsidies are less common but can be a valuable resource.

These funds are typically provided by government bodies or non-profit organizations to support small businesses, particularly in underrepresented communities or industries. Grants do not require repayment but are often tied to specific requirements and are highly competitive.

For a beauty supply store, grants may not be the most reliable primary source of funding but can complement other financing methods for particular projects or needs.

To effectively secure financing from lenders or investors for your beauty supply store, you must prove the viability and profitability of your business concept.

This involves creating a comprehensive business plan that includes market analysis, a clear identification of your target market, detailed financial forecasts, and an effective marketing strategy. Your business plan should emphasize what makes your beauty supply store unique, such as exclusive product lines, a strong brand presence, or an excellent location.

Lenders and investors will judge your business on various factors, including your creditworthiness, industry experience, available collateral, and the strength of your business plan.

They'll examine the financial projections of your beauty supply store to determine if you can generate sufficient revenue to cover operating costs, repay debts, and turn a profit. Demonstrating a comprehensive understanding of the beauty market, including trends, consumer preferences, and competitive landscape, will also bolster your case.

Below is a summary table of the various financing options mentioned for opening a beauty supply store, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a beauty supply store involves meticulous planning and compliance with various regulations and requirements to ensure the safety of your customers and the integrity of your business.

The specific permits, licenses, health department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need will differ based on your location, but there are common standards that are applicable in many areas.

Firstly, you'll need to secure the necessary business permits and licenses.

This generally includes obtaining a business license from your city or county, and a sales tax permit if your state imposes sales tax. If you plan to offer services such as hair styling or makeup application within your store, you may need additional licenses, such as a cosmetology establishment license.

It's imperative to consult with your local government to understand the specific requirements for your region.

Regarding health department regulations, beauty supply stores must adhere to sanitation standards, particularly if you provide any beauty services. This involves proper sanitation of equipment, maintaining a clean environment, and regular training for employees on hygiene practices. Health department inspections may be conducted to ensure compliance with these standards. The frequency of inspections can vary, but they are often annual or may occur more frequently if there are complaints or past issues. Some localities may also require a pre-operational inspection before the beauty supply store can open.

Failure to comply with health department regulations can lead to penalties ranging from fines to the temporary shutdown of the business until issues are resolved.

In extreme cases, non-compliance can result in permanent closure or legal action. It is crucial to take these regulations seriously and ensure your beauty supply store meets all health and safety requirements.

Insurance is another essential element in safeguarding your beauty supply business. At the very least, you'll need general liability insurance to cover accidents or injuries that might occur on your premises.

Property insurance is also vital to protect your store's inventory and equipment from damage or theft. If you employ staff, workers' compensation insurance will likely be mandatory by law to cover any work-related injuries or illnesses.

Furthermore, considering product liability insurance is advisable, as it can protect your business in the event that products you sell cause harm to customers.

Business Structure

The three common structures for opening a beauty supply store are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your beauty supply store.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your beauty supply store.

We’ll make it easier for you, here is a summary table.

Getting started to open a beauty supply shop

Offer development, design and lay out.

Designing and laying out your beauty supply store for operational efficiency and an enhanced customer experience requires careful planning and strategic thinking.

Let's dive into how you can achieve this, focusing on customer flow, balancing product assortment with budget, and ensuring health and safety.

Firstly, envisioning customer flow is paramount.

Your beauty supply store's design should guide customers naturally from the entrance to the different product zones, such as makeup, hair care, skin care, and tools and accessories. This flow should be intuitive, reducing bottlenecks and ensuring a smooth transition from one section to the next. Place your most attractive and popular items in strategic locations to immediately catch customers' attention.

This setup not only showcases your best products but also encourages customers to explore and potentially add more items to their baskets as they follow the designated path.

Regarding the design to facilitate this flow, consider the layout's openness and accessibility.

Wide aisles, clear signage, and a logical arrangement of the space encourage easy movement and comfort. The checkout area should be clearly marked and separate from the browsing areas to avoid confusion and congestion. If your store includes a space for beauty consultations or demonstrations, ensure it's comfortably distanced from the main flow to maintain a relaxed atmosphere for those engaging in these services.

Balancing the need for a diverse product assortment with budget constraints is a challenge many face.

Start by prioritizing essential products that directly impact the customer's choice, such as exclusive or high-demand beauty items. These are worth investing in because they can be the main draw for your store's clientele. For other items, consider partnering with suppliers who offer competitive pricing or volume discounts to save money without significantly compromising variety.

Additionally, plan for shelving and display units that offer versatility and efficient use of space, like modular units or adjustable shelving, to get the most value for your investment.

Health and safety in the beauty supply store layout are non-negotiable. Your design must incorporate zones designated for different product types to prevent any potential contamination or damage. For example, separate areas for hair products, which might be flammable, from electrical tools and devices. Install hand sanitizing stations at key points, especially near the product testing areas, to encourage regular hand hygiene among staff and customers.

Specific protocols for product handling, storage, and display are crucial for safety and compliance. Implement a system that ensures all products are stored at the correct conditions, with delicate items like perfumes or certain skin care products kept away from direct sunlight or heat sources.

Train your staff thoroughly in product knowledge and safety practices, emphasizing the importance of cleanliness, proper handling, and avoiding contamination between testers and new products.

Regularly review and update these protocols to comply with local health regulations and best practices.

Craft your offer

Your product selection and the services you offer will be the cornerstone of your beauty supply store's success (or the reason for its struggles).

To begin, it's crucial to understand the preferences and needs of your target market. Engage with potential customers through direct methods like surveys and social media interactions, as well as indirect methods such as monitoring trends in the beauty industry and analyzing what successful competitors are offering.

Once you have a solid grasp of your target market's desires, you can start to curate a product line that not only caters to their beauty needs but also distinguishes your store from others.

Partnering with local beauty brands and offering exclusive, locally-made products can significantly enhance your store's appeal and commitment to the community. This strategy supports local businesses, potentially reduces shipping emissions, and ensures that your offerings are unique and often of higher quality. Establish relationships with local suppliers to understand which products you can source throughout the year. This knowledge allows you to offer exclusive items that can draw in customers seeking new and unique beauty solutions. A rotating selection of products can also build excitement among your clientele, as they anticipate the arrival of new and seasonal items.

To differentiate your beauty supply store in a competitive market, focus on exclusivity and superior quality.

This can be achieved by stocking niche items that are not readily available elsewhere, such as organic skincare lines, cruelty-free makeup, or products tailored to specific beauty concerns. Sharing the story behind your products, like the ethical sourcing of ingredients or the vision of local artisans, can further enhance their appeal.

Ensuring consistency and excellence in your product offerings involves setting high standards and maintaining strict quality control.

This can include careful selection of brands with proven track records, staff training to provide knowledgeable recommendations, and regular product performance checks. Consistency is vital for building trust with your customers, as they will come to expect the same level of quality and service with each visit to your store. Invest in reputable brands and reliable suppliers, and be willing to adjust your inventory based on product performance and customer satisfaction.

Additionally, leveraging customer feedback is crucial for ongoing improvement and refinement of your product selection and services. Establish channels for feedback, such as in-store suggestion boxes, online reviews, and social media interactions, to gauge what your customers appreciate and identify areas for enhancement.

Be receptive to constructive criticism and ready to evolve your offerings based on customer insights. This not only aids in optimizing your product range but also demonstrates to your customers that their opinions are valued, fostering loyalty and encouraging repeat patronage.

Determinate the right pricing

When opening a beauty supply store, it's crucial to establish a pricing strategy that balances profitability with customer satisfaction. Here's a step-by-step guide to setting your prices effectively.

Firstly, you must understand your costs thoroughly. This includes the cost of purchasing products from suppliers, labor costs for staff, overhead expenses such as rent and utilities, and any other costs associated with running your store.

Ensuring your prices cover these costs is vital for your business's sustainability and profitability.

Next, analyze your competition and the general market to gauge the going rates for beauty products similar to those you offer. While you don't need to mirror these prices exactly, this research provides a valuable reference point.

Understanding the price sensitivity and preferences of your target market is also essential. Gather insights through customer interactions, surveys, or by experimenting with different price points and observing the effect on sales. This will help you find the sweet spot where customers feel they're getting good value without being overcharged.

Psychological pricing strategies can be particularly effective in a beauty supply context.

Charm pricing, such as $19.99 instead of $20, can make a product seem more affordable. This tactic might be suitable for everyday items like shampoos or makeup essentials.

However, you should apply this strategy carefully to maintain the perceived value of your products.

Perceived value is crucial in the beauty industry.

Enhancing this perception can be achieved through high-quality products, excellent customer service, and an appealing store layout. These factors can justify higher prices because customers believe they are receiving better value for their money.

Consider implementing seasonal or promotional pricing strategies to increase sales during slower periods or to highlight new arrivals. For example, offering discounts on sun care products during the summer or promoting a new line of skincare products with a special introductory price can attract customers.

When introducing new products, consider using introductory pricing, such as limited-time discounts or bundle offers, to encourage customers to try them. Once these products gain popularity, you can adjust the prices based on demand and cost factors.

For online sales, take into account the different costs and customer expectations. Online prices may need to include shipping costs, which could be incorporated into the product price or charged separately. Exclusive online deals or bundles can also incentivize customers to shop through your digital platform.

Finally, be cautious with discounting strategies. While they can drive sales and attract bargain hunters, excessive discounting can harm your brand's image and lead to a perception of lower quality. Use discounts strategically, perhaps to move excess inventory or to celebrate a special event, without making them a frequent expectation for your customers.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly hinder your beauty supply store's success

Conversely, nurturing strong partnerships with suppliers ensures a consistent supply of high-quality beauty products.

Engage in regular communication, make payments on time, and show appreciation for their products and services to build loyalty and dependability. Be clear about your expectations and requirements, and try to visit their facilities when possible. This will give you insight into their production and logistical challenges, which can lead to more effective collaboration.

Consider negotiating long-term contracts for essential products to secure more favorable pricing and ensure availability. However, it's also wise to have a network of alternative suppliers to protect against potential shortages.

For managing inventory, especially for products with expiration dates, inventory management techniques such as First-In, First-Out (FIFO) are crucial. This method ensures that the oldest stock is sold first, reducing the risk of having to dispose of expired products. Keep a close eye on inventory levels to tailor your orders to current demand, preventing overstocking and reducing the chance of unsellable goods. A just-in-time (JIT) inventory system might also be beneficial, where products are ordered and received as needed, though this requires accurate demand forecasting.

Technology can greatly enhance inventory management and minimize overstock in a beauty supply store.

Implementing an inventory management system that syncs with your point-of-sale (POS) system allows for real-time monitoring of stock levels and sales data. This tech can help you more precisely predict demand, optimize ordering processes, and spot trends that can guide product development and marketing initiatives.

Furthermore, digital tools can improve communication with suppliers, leading to more effective order adjustments and cooperation.

As you scale your beauty supply store, you'll face challenges such as ensuring product consistency, managing rising costs, and maintaining quality control. Tackle these issues by standardizing product offerings and procedures, providing comprehensive training for your team, and investing in technology that boosts efficiency without sacrificing the quality of your products.

Scaling up also means purchasing more products, so work on negotiating prices with suppliers for bulk orders without compromising on product quality. As your inventory grows, quality control becomes increasingly important, necessitating strict adherence to standards and more frequent checks.

Effective cost control measures require a thorough examination of every aspect of sourcing and utilizing beauty products and supplies. Regularly reassess and negotiate with suppliers to ensure you're receiving the best value without sacrificing quality.

Also, explore alternative products that may offer cost savings or take advantage of seasonal pricing. Employ technology to track and analyze expenses, waste, and inventory levels to pinpoint opportunities for improvement. Reducing waste not only lowers costs but also supports sustainable practices, which can attract eco-conscious customers.

Hire the right people

When opening a beauty supply store, you should consider the staffing needs carefully. You may not need to hire a full team immediately, especially if you're working with a limited budget.

At the core, your beauty supply store will require a team that can handle sales, inventory management, and customer service.

For sales, knowledgeable sales associates are essential. They should be familiar with the various beauty products you carry and be able to provide recommendations and advice to customers. A store manager is also crucial to oversee operations, manage staff, and handle administrative duties, including inventory management, ordering supplies, and ensuring a high level of customer service.

Roles such as beauty consultants or makeup artists for in-store demonstrations, marketing specialists, and additional administrative staff might not be necessary at the start. These positions can be filled as your business grows and the demand increases. Outsourcing can be a strategic approach for roles like accounting, marketing, and even delivery services, allowing you to focus on your core competencies while leveraging external expertise.

When hiring for key positions, prioritize candidates with a mix of product knowledge, experience, and a passion for beauty and customer service.

For sales associates, look for individuals with experience in retail, particularly in beauty or health and wellness stores. Customer service skills are paramount, along with the ability to work efficiently under pressure. For managerial roles, seek candidates with experience in retail management, a strong understanding of business operations, and leadership qualities.

To assess the fit of potential hires for your beauty supply store's unique culture and demands, consider incorporating practical assessments into your hiring process, such as role-playing customer service scenarios or product knowledge quizzes.

Look for candidates who demonstrate a genuine passion for beauty products and customer service, as well as the ability to adapt to the fast-paced nature of the retail industry.

Finding candidates with the right background and passion for beauty products and customer service can be challenging.

Utilize beauty schools, cosmetology forums, and social media platforms to reach potential candidates. Networking within local beauty communities and attending job fairs can also be effective strategies. Consider offering internships or apprenticeships to tap into emerging talent from beauty programs.

Here is a summary table of the different job positions for your beauty supply store, and the average gross salary in USD.

Running the operations of your cosmetics shop

Daily operations.

Running a beauty supply store efficiently is key to maintaining a loyal customer base and ensuring your business thrives. By implementing the right strategies, you can make your daily operations smooth and successful.

Firstly, a Point of Sale (POS) system tailored for beauty supply stores can be a game-changer. Look for a POS that combines sales, inventory management, and customer relationship management. This will enable you to monitor sales as they happen, manage your stock levels effectively, and maintain a record of your customers' buying habits and preferences.

Modern POS systems often include features for online sales, which can broaden your customer reach and accommodate those who prefer shopping from the comfort of their homes.

Effective inventory management is crucial in a beauty supply store. You'll want software that can track your products in real-time. The best systems send alerts when stock is low and provide analytics on inventory patterns, helping you make smart restocking choices. This minimizes overstocking and understocking, ensuring you have the right products available when your customers need them.

Some systems also offer batch tracking, which is particularly useful for managing expiration dates on beauty products and handling any potential recalls efficiently.

Building strong relationships with your suppliers is just as important in the beauty industry. Establish clear lines of communication and set expectations for delivery times, product quality, and payment terms from the outset. A solid relationship can lead to better terms and consistent supply. It's also prudent to have alternative suppliers as a contingency to guarantee you can always meet your customers' demands.

Creating a positive workplace culture is essential for keeping your team motivated and productive. Provide regular training, communicate goals and expectations clearly, and offer constructive feedback. Recognizing and rewarding employees' efforts can boost morale. Ensure that work schedules are fair and respect your employees' need for work-life balance.

Customer satisfaction begins with the store's atmosphere, the quality of your products, and the service your team provides. Train your staff to be knowledgeable, friendly, and efficient. Encourage them to remember repeat customers' names and preferences, adding a personal touch to their shopping experience.

Maintaining a clean, well-organized store with clear signage and an intuitive layout also contributes to a positive customer experience.

Good customer service policies for a beauty supply store might include a satisfaction guarantee, transparent return and refund policies, and a system for collecting and responding to customer feedback.

Make it simple for customers to give feedback, whether in-store, on your website, or through social media. Address feedback swiftly and positively, showing customers that you value their opinions and are dedicated to enhancing their shopping experience.

When dealing with customer complaints, listen fully before responding. Apologize if necessary and offer a resolution, such as a refund, exchange, or discount on a future purchase.

View negative feedback as a chance to improve your store's operations, products, or customer service. Often, turning a negative experience into a positive one can earn you a customer's loyalty.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a beauty supply store is crucial for its success.

We have a comprehensive article on the profitability of beauty supply stores that delves into the details. Below, we'll provide a summary.

One key metric for a beauty supply store is the average basket size, which is the average amount a customer spends per visit.

The average basket size can vary greatly depending on the store's focus and customer base. For high-end beauty stores with premium products, the basket size might be larger, potentially between $60 and $120 .

Chain beauty supply stores, with their wide range of products and competitive pricing, might see a larger number of transactions but with a smaller average basket size, perhaps $45 to $80 .

Niche beauty stores, which cater to specific segments like organic or cruelty-free beauty products, might also have higher basket sizes due to the specialized nature of their offerings, with an average between $50 and $90 .

Revenue for beauty supply stores also varies. Urban beauty supply stores can have monthly revenues ranging from $10,000 to over $150,000 , leading to annual revenues between $120,000 and $1.8 million .

Rural stores may see more modest revenue due to a smaller customer base, with annual revenue typically between $80,000 and $600,000 .

Newly opened stores may experience lower revenues initially as they work to establish a customer base and brand presence, often not exceeding $15,000 per month in the beginning.

Well-established stores, on the other hand, can leverage repeat business and referrals to achieve higher and more consistent revenues.

High-end beauty supply stores may have revenue limitations due to the niche market they serve, with many not exceeding $700,000 in annual revenue .

Chain stores often have higher revenues due to brand recognition and marketing, with some generating $250,000 to $1 million in annual revenue .

Revenue for niche beauty supply stores can vary greatly depending on the demand for their specialized products.

Beauty supply stores have multiple avenues for generating income beyond direct product sales.

If you're looking for inspiration, here's a table that outlines various revenue streams for a beauty supply store.

Understand your margins

As with any retail business, understanding the difference between revenue and profit is crucial for a beauty supply store. Before we can determine the actual earnings, we need to consider the store's expenses and margins.

Let's delve into the gross and net margins, which are key indicators of a store's profitability.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for a beauty supply store .

The typical range of gross margins for beauty supply stores can vary, often ranging from 30% to 60%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the direct costs associated with acquiring the products sold by the store, from the revenue generated from sales. This figure is then divided by the revenue and multiplied by 100 to get a percentage.

Net margins consider not only COGS but also all other expenses a beauty supply store incurs, such as rent, utilities, marketing, administrative expenses, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a beauty supply store's profitability and are typically lower than gross margins, with industry averages often ranging from 10% to 20%, reflecting the tighter profitability after all costs are considered.

Different types of beauty supply stores—boutique, chain, and online—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Here is a table to illustrate this.

Margins in a beauty supply store are influenced by factors such as product selection, pricing strategy, and scale of operations.

A wide product selection can attract a diverse customer base but may also increase inventory and management costs.

Pricing strategy is critical; prices must be competitive yet sufficient to cover costs and yield a profit. Scale of operations can lead to cost efficiencies, with larger stores often enjoying lower per-unit costs due to bulk purchasing.

Ongoing expenses that affect margins include product acquisition costs, labor, rent, and marketing. Product costs can fluctuate with market trends, impacting gross margins. Labor is a significant expense, especially for stores offering personalized services. Rent varies by location, and marketing is essential for attracting and retaining customers.

Stores focusing on niche markets, such as organic or cruelty-free beauty products, may experience different margin dynamics compared to those with a broader product range.

While niche stores can command higher prices, they also face higher acquisition costs and potentially limited market size, which can affect overall margins.

External factors such as economic conditions, seasonal trends, and consumer preferences also play a significant role in the margins of a beauty supply store. Economic downturns can lead to reduced spending on non-essential items, while seasonal changes can influence product demand. Staying current with consumer trends and adjusting product offerings accordingly can help manage these fluctuations.

Overcoming the challenge of maintaining healthy margins amidst rising product and labor costs is crucial. Beauty supply stores can address these challenges through effective cost management, strategic pricing, optimizing operations, and investing in technology for inventory and sales management.

Regular monitoring and analysis of financial performance, including gross and net margins (which can be done with our financial model specifically for a beauty supply store ), are essential for ensuring the financial health and sustainability of the business.

Implement a strong marketing strategy

Marketing doesn't need to be as complex as some experts make it seem. We understand you'll be busy managing your beauty supply store and might not have ample time for extensive promotions. That's why we'll keep our advice straightforward and impactful, similar to the marketing strategy we've detailed in our business plan for a beauty supply store .

Creating a brand for your beauty supply store is not just important; it's essential.

Your brand is the way customers recognize and remember your store. It's more than just your logo or the color scheme of your storefront; it's the emotions and experiences you offer. Your brand should reflect the quality of your beauty products, the ambiance of your store, and the values you uphold, such as inclusivity or eco-friendliness. This helps your store to stand out in a competitive market and cultivates a dedicated customer base.

For your marketing plan, begin by identifying your target audience. Who are your perfect customers? What do they care about? Are they seeking affordability, high-end luxury items, organic and cruelty-free products, or perhaps professional-grade supplies? Knowing your audience will shape your branding and promotional efforts.

When it comes to promotion, social media and digital marketing are invaluable for beauty supply stores. Platforms like Instagram, Pinterest, and YouTube are ideal for displaying your products through stunning visuals and engaging content.

Share tutorials on how to use certain products, which adds an educational element and demonstrates the versatility of your inventory.

Customer reviews and testimonials can foster trust and motivate others to visit your store. Beauty tips or skincare routines can also captivate your audience, providing them with useful information and positioning your store as a knowledgeable source in the beauty industry.

Content strategies that are effective for beauty supply stores include highlighting the diversity and exclusivity of your product lines, new arrivals or limited-edition collections, and emphasizing any unique ingredients or ethical sourcing practices. Collaborating with local beauty professionals or influencers can also enhance your visibility.

However, not all strategies may be suitable for your store. For instance, if your target audience is primarily local, investing in national advertising might not yield the best return on investment. Similarly, if your store focuses on natural beauty products, content centered around synthetic makeup might not resonate with your brand.

Even with a modest budget, there are several tactics you can employ to attract new customers.

First, consider participating in local beauty events or pop-up shops where you can showcase your products directly to consumers. This not only boosts sales but also increases your store's profile.

You can also offer samples in-store or at these events to get people excited about your beauty supplies.

Partnering with local salons or spas that might need to purchase supplies regularly can extend your reach.

Creating a loyalty program can incentivize repeat business. Simple point systems or digital rewards programs can be quite effective.

Also, never underestimate the power of word-of-mouth marketing. Encourage your satisfied customers to share their experiences by offering them perks for referrals.

Grow and expand

We want you to thrive with your beauty supply store. The insights provided here are designed to help you along that path.

Imagine you're already running a successful beauty supply store with solid profit margins and a strong cash flow. Now is the time to consider strategies for scaling and expanding your business.

There's always potential for greater success, and we're here to show you the path to reach it.

Also, please note that there is a 3-year development plan tailored for a beauty supply store in our business plan template .

Successful beauty supply store owners often exhibit traits such as resilience, adaptability, a keen understanding of beauty trends, and the ability to connect with and understand their clientele. These qualities are essential as you navigate the complexities of business growth.

Before expanding your product line, assess the market demand, how new products complement your existing inventory, and the impact of these additions on your operations.

Market research is critical in this phase. By examining customer preferences, beauty industry trends, and the performance of similar products in the market, you can make informed decisions that are in line with your store's capabilities and customer expectations.

To evaluate the success of your current operations, look at sales trends, customer feedback, and operational efficiency. If your store consistently hits or surpasses sales goals, receives positive reviews, and operates smoothly, it might be time to think about expansion.

Opening additional locations should be grounded in concrete evidence of demand, a deep understanding of the target market, and the financial robustness of your existing operation.

Franchising can be a way to grow with less capital risk, tapping into the entrepreneurial drive of franchisees. However, it demands a strong brand, established operational systems, and the capacity to support franchisees. Opening company-owned stores gives you more control but requires more capital and hands-on management. Each approach has its pros and cons, and the choice should align with your business objectives, resources, and preferred growth strategy.

Digital channels, including e-commerce and social media platforms, can significantly extend a beauty supply store's reach and sales. An online presence allows you to serve customers beyond your immediate area, meeting the growing need for convenience.

This approach necessitates a grasp of digital marketing, logistics for shipping, and ensuring product quality upon delivery.

Branding is vital as it sets your store apart in a competitive industry. A robust, consistent brand identity across all outlets and platforms can foster customer loyalty and attract new patrons. Enhance your brand by ensuring every customer interaction reflects your store's values, style, and quality.

Ensuring consistency across multiple locations is a challenge but is critical for success. This can be managed through comprehensive operational manuals, training programs, and quality control measures.

Regular visits and audits, coupled with cultivating a strong, unified culture, help guarantee that each location maintains the standards that made your original store successful.

Financial indicators and benchmarks that suggest readiness for expansion include sustained profitability, robust cash flow, and consistently meeting or exceeding sales forecasts over a significant period.

Having a scalable business model and the operational capacity to support growth are also essential.

Partnerships with salons, spas, and local events can introduce your beauty supply store to new customers and markets. These collaborations offer opportunities for creative marketing, community involvement, and increased brand visibility, all contributing to your store's growth.

Scaling up to meet growing demand involves logistical considerations such as inventory management, possibly upgrading your space or systems, and ensuring that your supply chain can sustain the increased volume without compromising quality.

Ultimately, it's crucial that your expansion efforts remain aligned with your beauty supply store's core values and long-term objectives. Growth should not come at the cost of the unique qualities that made your store a success.

Regularly revisiting your business plan and values can help ensure that your expansion strategies stay true to your vision and mission, preserving the essence of your beauty supply store as it evolves.

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Growthink's Ultimate Business Plan Template

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Beauty Supply Store Business Plan Template

The world’s #1 beauty supply store business plan template — it’s the quickest and easiest way to create a winning beauty supply store business plan, period.

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It Took Us 17 Years to Create the Ultimate Beauty Supply Store Business Plan Template for You

Hi, I’m Dave Lavinsky, the co-founder and President of Growthink.

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Seventeen years ago we started writing business plans for entrepreneurs, executives and business owners like you.

During this time, we’ve helped over 100,000 entrepreneurs and businesses achieve great success.

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Simply Fill in the Blanks

We’ve created simple, fill-in-the-blank exercises that guide you through all the key questions your Beauty Supply Store business plan must answer.

And we give you samples for every section of your plan.

Just type your answers directly into our template and you’re done!

Automatic Financials

Simply type in some numbers, like your salary and expected growth, and our template automatically calculates your complete 5-year financial projections.

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Turn Your Ideas to Reality

If you don’t have an action plan for executing on your ideas, they’ll never materialize.

That’s why Growthink’s Ultimate Beauty Supply Store Business Plan Template includes an Operations Plan section.

This section takes you through our proven and proprietary process for creating an Operations Plan that will transform your ideas into reality.

Improve Your Strategy

Growthink’s Ultimate Beauty Supply Store Business Plan Template helps you build a strategically sound business.

It guides you through key questions about your company, marketing and operations strategies, and gives you tons of ideas for improvement.

For example, in the Marketing Plan section, you’ll see several of the best marketing tactics to get new customers.

Expert Answers

Our Ultimate Beauty Supply Store Business Plan Template “Members Area” gives answers to all your questions, plus access to our amazing customer support team.

Raise Money Faster

The content and format of our Ultimate Beauty Supply Store Business Plan Template is tailored to the wants and needs of investors and lenders, so you raise more funding faster.

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Once you purchase Growthink’s Ultimate Beauty Supply Store Business Plan Template, you have lifetime access to use it for any Beauty Supply Store business in which you’re involved, now or in the future.

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Frequently Asked Questions

Below are answers to your most frequently asked questions:.

Immediately upon purchasing Growthink’s Ultimate Beauty Supply Store Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

If for any reason you are not delighted with our product, simply contact our friendly support desk and you’ll be issued a full refund. You have an entire year to request a refund if desired.

Unlike other software that charges you a fee month after month after month, you only pay once for Growthink’s Ultimate Beauty Supply Store Business Plan Template and you own it.

You can create an unlimited number of business plans with Growthink’s Ultimate Beauty Supply Store Business Plan Template. Once you purchase it, you have lifetime access to use it for any business in which you’re involved, now or in the future.

Yes, Growthink’s Ultimate Beauty Supply Store Business Plan Template works flawlessly on both PCs and Macs.

Growthink’s Ultimate Beauty Supply Store Business Plan Template is designed for both established Beauty Supply Stores and startups.

Yes , you can! Anyone can easily follow our basic instructions and create a great business plan quickly and easily. Plus, my expert team is available to help you if you have any questions.

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How to Write a Beauty Products Business Plan

Updated: 22 March, 2022

As a founder of a beauty brand start-up, you’ll need a clear vision, a well-written beauty products business plan and to have put some skin in the game in terms of hard work, time and funds. But how do you go about getting started on that all-important business plan and what should it contain?

In this blog post, we summarise the 10 key steps new beauty entrepreneurs need to work through to write a business plan for a cosmetics company. This is essential reading for anyone wondering how to start a beauty business from home as it makes you aware of just what you will need to think through and start planning for.

Running a cosmetic business requires you to be very organised. You will need a strong business plan that leads you through all of the main components of your cosmetic business. The relief is that your business plan does not need to be the size of a thesis. In fact, the more concise it is the better as you will be able to tackle it and feel like referring to it in the future.

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Our step-by-step video guide below is based on the business planning exercises we provide as part of our Diploma in Beauty Brand Business Management . The Diploma is an extensive, six-module course that takes you on an intensive journey from would-be entrepreneur to empowered founder armed with a structured business plan. Pre-enrol to find out more about this diploma and our other courses.

10-Step Guide to Your Beauty Products Business Plan

Step 1: why your beauty business needs a plan.

The first step is to set yourself a challenge: ask yourself why you are writing a business plan in the first place. There is no point in going through the motions of writing a beauty product business plan. You need to buy into the very concept of business planning.

We know that the thought of writing a business plan can seem daunting. However, your business plan is a necessary and very important strategic document as it focuses your energy, time and resources on a clear end game; not only that of launching a successful beauty business, but also of ensuring it has the potential to thrive longer term.

Your business plan isn’t just to show potential investors and otherwise hide away in a filing cabinet. It is a tool to refer to every time you are faced with important decisions. Your plan guides your decision-making and makes the everyday of running your beauty business simpler and smoother.

It will take time to write your business plan as it summarises the hard work you need to do beforehand in discovering your vision, working out your ‘why’ and what your brand stands for, what you’ll be selling, where you’ll be selling, who your competitors are and what your market gap is, and how you’ll fund your business. It also entails drafting a full financial plan, based on things like sales’ forecasts.

With this mindset challenge out of the way, let’s cover the key areas of your plan in the next steps.

Step 2: Your beauty brand mission and vision

We’ve seen many start-up beauty entrepreneurs rush into designing their branding before they have even worked out why they are in business. Before branding, come your vision and mission. Often confused and easily ignored, these two statements are the guiding lights of your business.

First, let’s define them. Your vision is about your bigger dreams. It isn’t simply that you want to make organic formulations to sell to anyone. Your vision statement sets out how you want to make a difference with your beauty brand. At Formula Botanica, our vision, in brief, is to make natural formulation as commonplace as cookery.

Your brand mission statement says how you intend to achieve that vision. At Formula Botanica, our mission is to ‘teach the world to formulate’. As you can see from our example, the mission is practical and active and states how we accomplish our vision – through teaching and our online courses.

When you write your brand vision and mission statements, you’re not writing boring, bland, catch-all statements. Coming up with why your beauty brand exists and how it serves your customers is not a quick back-of-the-envelope exercise either. It may take you weeks to define your vision and mission, but this is time well spent as these statements are the heart of your beauty business. Don’t move on to the next steps until you have total clarity on them.

Step 3: Your niche and customers

It’s all well and good having your vision and mission, but if you don’t know your niche in the beauty market nor much about whom you are selling to, then you might not have a business at all. We’re sure you’ve heard this advice a hundred times, but you need to know exactly who you’re going to be selling to. You need to understand who this type of person is, how they live and how they shop.

Once you know who your target customer is, all of a sudden everything clicks into place and becomes easier in terms of selling. You know which marketing messages work best for your customer, you know what they’re looking for and you know how to sell to them. When starting your beauty products business, you need to have a niche and that niche cannot be ‘organic’ or ‘natural’. There are so many untapped niches in the beauty industry, for instance, skincare for women in their fifties, skincare for certain types of athletes (swimmers, runners, etc.), and skincare for teenage boys.

Jot down bullet points about your ideal customer; include where they live, what other brands they buy, how they holiday, what their key skincare issues are and so on. Be brief but on point. Home in on a single person – often called your brand ‘avatar’. It might sound tedious to do, but once you have that person clearly in your mind, everything in your business will work to meeting their needs. Just ensure that you really do have a niche that exists.

We reported on some trends from In-Cosmetics Global , in Paris (April 2019). We’re not suggesting you need to keep up with the latest fad in the beauty industry, but do your market research thoroughly so you can decide where to position your brand and products.

Step 4: Your beauty products

Your business plan needs to detail your initial product(s) and explain what their sales’ proposition is and how they meet your target customers’ needs. This sounds simple to do, but believe us when we say we have seen new beauty entrepreneurs incur huge expenses as they change their direction and minds on products just after launching. Bringing new products on board can often be a way of diverting yourself from the hard task of marketing and sales.

When you learn to formulate natural skincare, you create a diversity of products without much thought about how they fit together as a range or as a beauty routine for customers. When you think like a business, you need to understand very clearly what you are selling and what proposition your products offer your target customers.

It is possible to launch with a single product, and there are well-known examples of beauty brands with only a ‘hero’ product to their name. If you are creating a range, work out how the products complement each other. Also, given issues of sustainable consumption, think about how a single product can demonstrate a unique selling proposition by multi-tasking.

Your range has financial implications so you need to decide how many products to launch with and which create a minimal viable range that makes sense for your budget and for your customers’ needs. Above all, your cosmetics’ range will need to demonstrate it has a place in the market and how it improves your customers’ lives.

Step 5: Your competitors

Yes, your competitors most certainly have a place in your skincare business plan. You, as the founder, bring your individual perspectives and experiences to your brand, so in one sense you have uniqueness built into the foundations of your beauty business. That said, you need to keep a close eye on the movers and shakers in your niche and in particular at your product range’s price point. Knowing your competitors keeps you on your toes and is information any investor will ask for, up front and early on.

It can be frustrating at times to research your competitors as their websites might be PR speak and not give much away. Look for interviews with the founders and follow them on all their social media to glean more. Competitor research can help you identify areas where your brand can thrive and can show you more effective ways to grow customer loyalty – and build your business. See what they are doing so that you know what’s working for them and what isn’t. Write a list of their strengths and weaknesses to see how you can do better. You also need to know where to position yourself in comparison to your competitors.

Don’t obsess about your competitors, but check in on what they are up to every few months. Your aim is not to copy them, but to control your beauty products’ conversation. Again, if you have clarity on the earlier steps – mission, vision, niche and customer – then you are on solid ground. It is just good business sense to know what is going on in the market.

Step 6: Your manufacturing strategy

Your manufacturing strategy is a large part of your business strategy. You need to decide whether you will be producing your beauty products yourself in your own (home) lab – according to Good Manufacturing Practice (GMP) , using a contract manufacturer or opting for private label products. You need to define also which route suits you at launch and mention any plans to switch model later on.

Each model has its pros and cons depending on your mission and vision, as well as implications for important aspects of your business such as distribution, logistics, financing, and contractual obligations to retailers who stock your brand. How many units of products do you envisage creating a year? Which model suits your entrepreneurial ambitions and lifestyle? As you can see, your business model and manufacturing model go hand in hand. Having an end goal in sight is critical to shaping your overall business plan, the amount of capital you need to raise and the way you conduct your day-to-day operations.

There is no right or wrong choice here, but ensure you know the implications of whichever route your opt for. It might sound perfect making your own products at home in small artisanal batches, but we do know of beauty entrepreneurs who find their business sky rockets faster than they imagined. They then play catch up trying to find and fund outsourced manufacturing so they don’t let retail stockists down. This is a critical area of your business plan and needs you to consider your vision and ethos, as well as think about your own time, hiring staff, and your overall financial situation.

Step 7: Your retail strategy

We’ve seen many indie beauty entrepreneurs think they can sell direct to consumer from their website alone. To do this successfully, you need to invest in becoming a proficient digital marketer – or outsource the role. It can be tempting at the outset to want to sell directly from your own website because your keep all the profit yourself. However, although you receive lower profit margins by having your products stocked in stores and e-stores, retailers can help get your products sold and your brand known as they have a ready customer market; whereas you are unknown and have to build awareness of your brand from scratch.

The work you have done so far in defining your niche, customers, competitors and product range should indicate which retailers suit your brand best. Will your brand fit into the mass, so-called ‘masstige’, premium or luxury retail categories? And which retailers do you hope will stock your brand? What are their likely margins and what implications does this have for your manufacturing model and financial forecasts? Will you also work with distributors in certain markets, especially overseas, and again, how do their margins affect your bottom line?

You must address all these questions and more in your beauty business plan . It is no good working out how and where to sell once your products are all stacked in boxes in your living room or at a warehouse!

Step 8: Your funding

We might have left finances to last, but finding the money to fund your business is an issue that dominates your entire business plan. As you’ve seen, each previous step has financial implications. As we mentioned in our post on how to start a cosmetic business from home , you won’t be able to run a successful beauty brand without having a firm grip on finances. Having sound plans for raising finance at various junctures in your business is sound business practice.

Your business plan needs to cover the different types of funding options available to you now and in the future, whether ‘love money’ loaned from friends and family, bank loans or other sources such as crowdfunding. it needs to look at short-term and long-term sources of finance. You need to understand and pre-empt what your potential investors will ask you about financing and demonstrate in your business plan that you and your business are worth investing in.

Step 9: Your financial forecast

If you are reading this, it is likely you are thinking of starting an indie beauty business. As business plans are best written in the first year of your beauty business, you may well be pre-revenue when you draft it – or need it when pitching to investors. You may not have sales yet, but you can still show some key figures on the size of your market and your brand’s potential.

To introduce your financial forecast, you should include a timeline showing your milestones, such as when you started, your key achievements, any brand or packaging development, what stage you are at now, i.e. do you have a product in creation and how much have you invested or fund-raised so far? If you are already selling, then you can show how much investment has gone into the company already, what returns and sales you have and what your financial projections are.

There will be a need for you to factor in expenses you hadn’t thought of. One such ‘hidden’ expense we see many beauty entrepreneurs fail to predict is the need to cover retailers’ promotions. Stores generally expect you to contribute to their promotions of your products. Cashflow is everything in a business, even one selling successfully. You may face shortfalls of cash while waiting for retailers to pay you. That time lag means your day-to-day business can grind to a halt if your cash is tied up in stock and you have nothing to cover buying in more raw materials to keep production going or to cover promotions or seasonal campaigns.

As you can see, financial forecasting is about your day-to-day business, and this alone is one reason you need to revisit your business plan frequently. You need to keep an eye on your profit and loss sheets and map the trends monthly. Learn as much as you can yourself about financial forecasting and measuring your business’ financial health. Having an accountant or financial expert assist with this information can help you be better prepared both day to day and when talking about your finances to potential investors.

10: What to do with your plan now

Congratulate yourself. You have made it through the first draft of your business plan – or roadmap. But, now comes perhaps the hardest step of all; that of doing something useful with your business plan, as opposed to archiving it in some filing cabinet. This is a plan to revisit and adjust, and to assess your business’ health and performance against. It is not a document to present to banks and potential investors at the start of your business journey and then forget all about.

So, what exactly do you need to look at it for, and how often? Let’s take just a few examples of areas you will need to review.

First, you need to revisit your financial forecast monthly. See how your budgeting is measuring up against actual sales and expenses. Are things on track? Either way, yes or no, you will have a benchmark against which to measure your current business health. This information will guide you as you go forward.

Then, revisit your competitors and the overall market situation. How have things changed and how might this affect your product range, pricing or development? Be aware that you need time to get established in your market. Knee-jerk reactions can be costly. But use your plan to monitor things.

Examples of areas to review annually are your mission, vision and niche. Was your research when drafting the plan accurate? Have you proved the concept of your brand and product range? Access to a mastermind group of like-minded business founders, even in different sectors, or a mentor can help you work through any changes you think are necessary to your core statements. Again, think these through basing decisions on financials too.

Pre-enrol in a Formula Botanica course and learn how to start a cosmetic business

We hope our points have given you the outline of what you need in to think through in starting a beauty business. If you have a mission to create a beauty brand that’s bigger than yourself – a skincare brand, haircare line or makeup range that changes people lives – we can help you learn how to formulate your own products and all about bringing a brand to market.

Pre-enrol now in our Diploma in Beauty Brand Business Management – the ultimate online training programme in starting or growing your indie beauty brand. We like to refer to it as a Beauty Brand MBA. It is a combination of award-winning teaching materials and a web summit with 30+ influential speakers drawn from the best in the beauty and business community.

Or why not pre-enrol on one of our formulation diplomas and courses in skincare, haircare and cosmetic science to change your life through natural formulation? All our courses are fun and empowering and can be career changing.

Your start-up costs with a beauty business vary according to where you set your sights and relate very much to your personal goals and circumstances and not only to current funds and cash flow. The ballpark figure you find is around US $20,000 or similar in Euros. If you wish to outsource, initial start-up costs are high as most contract manufacturers require large minimum order quantities. Similarly, your branding and packaging also rack up costs especially if you are aiming at the more luxury end of the market. Writing a business plan to help you think through all the variables can give you a clearer idea of your beauty business start up costs and help you plan finances as your business grows. You can start on a small budget by making product at home to sell at local markets. Work out your personal goals and lifestyle needs first to have an idea of what costs you will face.

Indie beauty is flourishing and ever more skincare entrepreneurs find a niche and enter the market. But, finding a niche that resonates with customers is key to defining what type of beauty business to launch. Being clean, green, natural or even organic is not enough these days to necessarily differentiate your potential beauty business. Think carefully about how your beauty products will resolve the issues and fulfill the needs of a clear segment of consumers. Do not be all things all to people. By researching for and writing a beauty brand business plan, you will shape your ideas and define a viable product offer, customer base and route to market.

Join us at Formula Botanica, where tens of thousands of students and followers take our free and paid online courses to learn how to formulate organic skincare and haircare for themselves or to sell and also how to set up a beauty brand and business.

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Liz is Formula Botanica’s Content Coordinator and joined our team in August 2020. Liz worked as a professional blogger, journalist and site developer for many years and was also part of the Formula Botanica student community. Read more about the Formula Botanica Team .

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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

OGS capital professional writers specialized also in themes such as Herbalife business plan , hair extension business plan , business plan for a hair salon , nail salon business plan , nail polish business plan , salon spa business plan and many other business plan.

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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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How to Start a Beauty Supply Store

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How To Start a Beauty Supply Store

How to open a beauty supply store faqs, helpful videos & images, additional resources in the beauty supply industry.

Starting a beauty supply store can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn how to open a beauty supply store successfully.

Importantly, a critical step in starting a beauty supply store is to complete your business plan. To help you out, you should download Growthink’s Ultimate Beauty Supply Store Business Plan Template here .

Download our Ultimate Beauty Supply Store Business Plan Template here

15 Steps To Start a Beauty Supply Store

• Choose the Name for Your Beauty Supply Store
• Develop Your Beauty Supply Store Business Plan
• Choose the Legal Structure for Your Beauty Supply Store
• Secure Startup Funding for Your Beauty Supply Store (If Needed)
• Secure a Location for Your Business
• Register Your Beauty Supply Store With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Beauty Supply Store
• Buy Beauty Supply Store Equipment & Inventory
• Develop Your Beauty Supply Store Marketing Materials
• Purchase and Setup the Software Needed to Run Your Beauty Supply Store
• Open for Business

1. Choose the Name for Your Beauty Supply Store

The first step to starting your own beauty supply store is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your beauty supply store:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your beauty supply store.

2. Develop Your Beauty Supply Store Business Plan

One of the most important steps in starting a beauty supply store is to develop a beauty supply store business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample beauty supply store business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your beauty supply store.
• Company Overview – this section tells the reader about the history of your beauty supply store and what type of beauty supply store you operate. For example, does your beauty supply store cater to professionals or the general public? Will you offer online sales with an eCommerce store or only sell goods at a physical store?
• Industry Analysis – here you will document key information about the beauty supply industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, what is their profession? Are they in a certain income bracket? What do they look for when buying beauty products?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your beauty supply store? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your beauty supply store make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your beauty supply store.

Next you need to choose a legal structure for your beauty supply store and register it and your business name with the Secretary of State in each state where you operate your beauty supply store.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the beauty supply store and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a beauty supply store together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a beauty supply store include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a beauty supply store is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your beauty supply store, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Beauty Supply Store (If Needed)

In developing your beauty supply store plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a beauty supply store to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a beauty supply store that they believe has high potential for growth.

5. Secure a Location for Your Business

Location is key for a new business. You’ll want to find a spot that is visible and accessible, especially if you’re starting out with a small budget. A good location will also have a lot of foot traffic, so consider your target market when choosing a spot.

To find the right space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Beauty Supply Store With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your beauty supply store’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your beauty supply store to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – You will need to obtain a general business license in order to operate your beauty supply store. This license will allow you to conduct business in your state or locality.
• Seller’s Permit – You will need a seller’s permit in order to sell products in your store. This permit allows you to purchase products wholesale and resell them retail.
• Zoning Permit – A zoning permit is required in order to operate a business in a specific location. This permit ensures that your business complies with local zoning regulations.

Depending on where you launch your beauty supply store, you will have to obtain the necessary state, county and/or city licenses.

10. Get Business Insurance for Your Beauty Supply Store

Business insurance policies that you should consider for your beauty supply store include:

• General Liability Insurance – This type of insurance protects your business from third-party claims of bodily injury, property damage, and personal injury.
• Product Liability Insurance – Product liability insurance protects your business from claims that a product you sold caused someone bodily injury or property damage.
• Business Property Insurance – This insurance protects your business premises and contents in the event of damage or theft.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy Beauty Supply Store Equipment & Inventory

The next step to opening a beauty supply store is to purchase the necessary equipment and inventory. This includes items such as shelving, displays, cash registers, and product.

You will also need to stock your shelves with a variety of beauty products, ranging from makeup and hair care products to skincare and fragrance. While you can buy some of these items online, it is often best to purchase them from a beauty supply wholesaler. This will ensure that you get high-quality products at a fraction of the retail price.

12. Develop Your Beauty Supply Store Marketing Materials

Marketing materials will be required to attract and retain customers to your beauty supply store.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your beauty supply store. Your logo might be displayed on your storefront, printed on your receipts and shopping bags, and used across your online promotions. The right logo can increase customer trust and awareness of your brand.
• Website – Likewise, a professional beauty supply store website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you. You will also need to set up your beauty supply store online if you plan to sell your products over the internet in addition to a physical location.
• Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your beauty supply store. You might also consider partnering with beauty brands for cross-promotion on social media.

13. Purchase and Setup the Software Needed to Run Your Beauty Supply Store

A beauty supply store needs inventory software to keep track of what products they have in stock and how much of each product they have. They also need a point-of-sale system to process transactions.

Some popular point-of-sale systems for beauty supply stores include Square and Shopify. For inventory management, you might consider options such as Brightpearl and Vend.

Research the software that best suits your needs, purchase it, and set it up.

14. Hire Staff

When it comes to finding and hiring staff, it’s important to do your research. You’ll want to make sure you hire people who are knowledgeable about the beauty industry and who have a passion for helping others look and feel their best.

When interviewing potential employees, ask them questions about their experience in the beauty industry, as well as their goals for the future. It’s also important to get a sense of their personality and whether they would be a good fit for your team.

Once you’ve hired your staff, it’s important to provide them with training so that they are familiar with the products and services you offer. This will help ensure that your customers receive the best possible service.

15. Open for Business

You are now ready to open your beauty supply store. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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What Is a Beauty Supply Store?

A beauty supply store is a retail business that sells cosmetics, skincare, and other products used by hairstylists as well as general consumers. It can be in the form of an online or offline business. The goal of these stores is to provide customers with all their needs for makeup, hair care, nail care, skincare, and more. They also offer how-to advice on how to use their products correctly so they will get the most out of them. 

These stores typically stock items such as shampoos, cosmetics, hair extensions, and tools such as curling irons and flat irons. The products they carry can vary significantly depending on the size of their inventory and the area where they are located. They may only sell one type of shampoo or a wide variety of product lines depending on what customers in their locality prefer to buy.

Beauty supply stores often have staff members who are knowledgeable about each product's ingredients and how it works best for different people with various skin tones and hair types, etc.

Is It Hard To Start a Beauty Supply Store?

No, not at all. In fact, opening your own beauty supply store is a relatively easy process that can be completed in just a few steps. Finding a location for your store and securing the funding to hire staff, buy inventory, and pay for other startup costs will likely be your biggest challenges. Following the steps outlined above will help you get started.

How Can I Start a Beauty Supply Store With No Experience?

If you're interested in starting a business in the beauty industry, but don't have any experience, opening a beauty supply store could be a great option. Beauty supply stores are relatively easy to set up and run, and can be very profitable. Here's what you need to know to get started. Researching the industry is a great place to start. You might also consider making connections with experienced individuals in the beauty supply industry who can mentor you.

What Type of Beauty Supply Store Is Most Profitable?

There are many different types of beauty supply stores. Some are very small, only carrying a few select items. Others are large and carry a wide variety of products. 

So, which type of store is most profitable? The answer may surprise you. It turns out that the size of the store doesn't necessarily matter. What matters most is the location of the store. The most successful beauty supply stores are located in high-traffic areas. This could be a busy street, a mall, or even a grocery store. The key is to have a lot of people walking by your store. This way, you're sure to get a lot of foot traffic and potential customers.

How Much Does It Cost To Start a Beauty Supply Store?

If you plan to start a beauty supply store, how much it costs to start this type of business will depend on what you want to offer customers. Start-up costs can range from hundreds of dollars up to millions for full-service stores, but the following is a general breakdown:

• Business Licenses / Permits -  In most cases, these are annual or biennial expenses that must be acquired before starting your beauty supply store. These include federal tax ID numbers and local business licenses. Depending on how much detail your city requires in your application for a business license they could cost anywhere from $25 – $500 dollars. You will also have initial fees for permits or zoning requirements. These can be anywhere from $25 to several hundred dollars.
• Inventory, Store Fixtures, and Display Cases -  Depending on how much you want to offer customers, how many display cases are necessary, how much inventory you need to order, how much cosmetic products are available to the public will determine how much it costs to start a beauty supply store.  The average startup cost for inventory can range anywhere from $15,000 – $100,000 if you have the capital to invest in the products upfront. Also, keep in mind that you’ll need professional-grade fixtures and counters for your displays as well as cases that allow customers privacy while browsing through your merchandise. These could run anywhere between $2,500 – $15,000 depending on how much detail you want. 
• Advertising, Marketing, and Promotional Supplies - Anyone who has run a business knows how crucial advertising is in bringing in customers through the door of your beauty supply store. With so many new businesses starting up all over the country every day, how can they expect anyone to know about them?  
• Grand Opening Supplies - You’ll also have to allocate funds for your grand opening marketing campaign which could cost anywhere from $1,000 to $10,000 depending on how big you go. The more word-of-mouth promotion you receive at first, the better chance your store will survive early on; however, how can you get people talking about your business if they don’t know it exists? This is why every small business owner must invest in a reliable marketing and promotional campaign, and how much to spend will depend on how much you want to invest. This can start as low as $100 for signage if you make it yourself, or up to thousands of dollars for banner stands, print advertising, billboards, etc.
• Personal Costs - You’ll also have personal costs associated with starting your beauty supply store such as your time. You might work 10 hours each day in the beginning until things are organized properly at your business. This can be free labor but if you’re hiring employees this will mean additional payroll expenses every month on top of what you’re already putting into startup costs.

Learning how to start a beauty supply store doesn’t need to be intimidating when there are guides like this one that can walk you through how to create a business plan, how much it might cost to start your beauty supply store, how many hours you’ll need to put into it until things are running smoothly, and how much money you can expect to bring in each month. This will set realistic expectations so there are no surprises along the way.

No matter how big or how small your budget is for startup costs if you have a passion for this type of industry then starting a beauty supply store is not only an excellent business venture but also one of the most rewarding.

What Are The Ongoing Expenses for a Beauty Supply Store?

There are a few key ongoing expenses that are important to keep in mind when budgeting for your beauty supply store. These include beauty supply products, rent or mortgage, utilities, and insurance.

Inventory will be your biggest ongoing expense, as you'll need to constantly restock your shelves with the latest products. Keep a detailed beauty supply store inventory list to ensure you are keeping great selling products in stock and not reordering products that don't sell. You'll also need to factor in the cost of shipping and handling when ordering from suppliers.

Rent or mortgage payments will be another significant ongoing expense. If you're leasing space for your store, be sure to factor in the cost of any necessary renovations or build-outs. Utilities, such as electricity, gas, and water, will also need to be factored into your budget.

Finally, you'll need to purchase insurance for your business. This will protect you in the event of a natural disaster, theft, or another unforeseen incident.

How Does a Beauty Supply Store Make Money?

A beauty supply store makes money by selling products that are used in the beauty industry. These products can include hair care products, makeup, and skincare items. The store may also offer services such as manicures and pedicures as part of its business model. The average markup for a product in a beauty supply store is 50%. This means that for every $1.00 that a product costs, the store will charge $1.50.

Is Owning a Beauty Supply Store Profitable?

Yes, owning a beauty supply store can be very profitable. H ow much do beauty supply stores make varies. To improve the profitability of your own beauty supply store, you should reduce unnecessary expenses to improve net profit. For example, you can use social media advertising to attract large groups of new customers to your store. Another way is to promote specific products that are likely to generate high sales, such as beauty supplies or accessories related to popular culture. You could also introduce discounts and offers so you can compete with other stores in the city.

It is important to keep track of your profits and losses so that you can see how profitable your business is becoming. Being able to anticipate trends can also lead you to sell more products and drive up profits for your store.

Why Do Beauty Supply Stores Fail?

Beauty supply stores often fail when sales cannot meet expenses. Rent is one of the highest monthly expenses for a business. If you're not in a high-traffic area, your beauty supply store might not generate enough foot traffic to sustain itself. 

Additionally, inventory can be expensive, and if you don't have enough customers, you might not be able to sell all of your products before they go bad.

How Big Is the Beauty Supply Industry?

The beauty supply industry is estimated to be about an 18.9 billion U.S. dollars industry as the latest report and continues to grow at a healthy rate, increasing by 2.8% each year. This growth can be attributed to how diverse the beauty supply business is and the ample opportunities that exist for ownership.

What Are the Key Segments of the Beauty Supply Industry?

The beauty supply industry is diverse, meaning there are many different opportunities for how to run a beauty store. This diversity can be how big your store is, how expensive your products are, and how far you expect customers to drive to your store. 

The key segments of the beauty industry include:

• Haircare products
• Skincare products
• Cosmetic products
• Other products

What External Factors Affect the Beauty Supply Industry?

There are many external factors that affect how the beauty supply industry is done, including how much people are using social media, how strong the dollar is compared to other countries’ currency, how much people are willing to spend on beauty products, and how many influencers are promoting these products.

Technology has also transformed the beauty industry by allowing consumers to interact with their products virtually before buying. Check out the infographic below for more information.

Who Are the Key Competitors in the Beauty Supply Industry?

ULTA Beauty and Sally Beauty Supply are two of the most popular beauty supply brands nationwide. There may be other beauty stores in your local area, so be sure to research your area and find out where your target market tends to shop for these products.

The beauty supply is a booming industry with plenty of room for new business owners. There are many different ways to open a beauty store, but they each have their own pros and cons. One of the most popular types is the convenience store. 

Convenience stores sell beauty products alongside everyday items like groceries, snacks, gifts, and more. This type of store allows people to conveniently pick up essentials for themselves or their family members.

With the growing trend of consumers purchasing products online, you may consider creating an online beauty supply store instead of having a brick-and-mortar location.

What Are the Key Customer Segments in the Beauty Supply Industry?

There are four different customer segments that you should consider when launching a professional beauty store. These segments are the following:

• Salon professionals
• Beauty schools and students
• Estheticians and beauty salon technicians
• Home hair care enthusiasts

Each customer segment has its own needs, so you’ll need to identify how your business satisfies the different segment needs depending on your primary target market. 

For example, salon professionals need product lines that will meet the demands of their particular clientele. A beauty school, on the other hand, would want to teach how to use certain products and how they work on different skin types. This helps prepare them for what they’ll experience in an actual salon environment.

What Are Some Successful Marketing Strategies for a Beauty Store?

• Run a Contest - Offering a contest can be a great way to get people excited and engaged with your business. There are various ways how you could set up the contest and how you could pick the winner. For example, you could have a photo contest where people submit their favorite hairstyles or have a video contest where people have to create a how-to video on how to do an updo. You could also add in some prizes such as coupons to use in your store for the person who wins the contest.
• Get Social - Ignoring social media platforms such as Facebook and Twitter is no longer an option when running a business today. It is essential that you have a presence on these sites, build brand awareness, and know how to engage your customers with fun contests or even how people can share their experiences with your products.
• Build Strong Relationships - Even if there are other beauty stores located in the same area as yours, it doesn't mean that they won't work together to find ways how they can benefit from each other's success. There are many ways how competing beauty supply businesses could partner up to help one another out such as offering each others' products at both locations, cross-advertising on social media networks, etc.

How Do You Maintain Quality and Customer Service in Your Own Store?

If you want to open a beauty supply store, it's crucial to maintain quality and customer service in order to attract and retain your customers. 

To maintain quality in your own store, you should:

• Make sure that all of the products you sell are clean and in pristine condition so that they don't become contaminated and unsafe for your retail store.
• Offer a variety of hair care services such as hair styling, relaxers, weaves, or even extensions at competitive prices. 
• Keep up with trends by stocking new products when necessary such as different hair colors or styles.
• Take out expired products from inventory so that they don't become stale and less effective.

To maintain customer service in your own beauty supply store, you should:

• Greet clients soon as they walk through the door 
• Ask how you can help them 
• Encourage customers to browse around the store 
• Offer suggestions on how they could achieve their desired look
• Anticipate and address your customers' needs. 
• Thank each customer after a purchase.
• Ensure that all of your employees are knowledgeable about how to use different hair products and services on different types of hair.

What Are the Different Products to Sell in Your Beauty Supply Store?

A beauty supply store can sell many different types of cosmetic products, not just hair care products. For example, the store could sell makeup, nail polish, and other beauty products. They can also offer other services such as haircuts. Customers can also learn how to do their own hair at home through training courses.

Offer value-added services such as free consultations with stylists or even free samples of new items before they go on sale so that people have the chance to try them out first before committing to purchasing one.

Some beauty stores choose to only offer haircuts. They may specialize in certain types of haircuts such as African American haircuts, men's haircuts, and even weave installation services. These types of stores typically focus more on male or female clientele who visit the store every month to get their haircut. This strategy will then generate more income for the business because clients must come back frequently for haircuts compared to other types of beauty supplies that customers might buy once and never need again unless they run out.

Beauty stores are typically located in a shopping center or mall along with other beauty-related businesses including beauty salons, nail salons, tanning salons, and barbershops. Since beauty stores stock a large amount of inventory, they should be located in busy areas such as around schools or other places that draw in foot traffic.

Beauty products are typically displayed on shelves for customers to find what they need quickly without needing to ask anyone working there. However, larger items such as hair weaves may not physically fit onto the shelves so these larger items can be kept out of sight and stored where customers will be able to see them when an employee retrieves them from storage.

Most beauty supply stores provide a wide range of beauty products for women and men to look better so that they will buy more in order to further improve how they look. Buying these types of beauty supplies can be expensive, so some men or women may not be able to afford to spend much money on such items on a regular basis to maintain their appearance.

What Are Some Tips For Hiring Staff for Your Beauty Supply Store?

• Hire a general manager to handle the finances, marketing, and inventory management. 
• Hire a receptionist or sales associate who can help customers find what they need and give them information about the products being sold. 
• Hire employees to work in the back of the store stocking shelves with items or assisting customers who want their hair braided, cut, or styled. Make sure that employees have a good work ethic and a positive attitude.
• You should also hire a few people to work at the front of the store who are friendly and talk to customers while they shop. These people will then have direct contact with how much revenue you make from the sales you do each day.

Where Can I Download a Beauty Supply Store Business Plan PDF?

You can download our beauty supply store business plan PDF template here. This is a business plan template you can use in PDF format.

How To Start a Beauty Supply Business Online 2022 [Complete Guide] | #BeautySupply

Technology Is Transforming the Beauty Industry – Learn How

• Black Owned Beauty Supply Association: www.bobsa.org
• Jinny Beauty Supply Vendor www.jinny.com

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Coordinates of elektrostal in degrees and decimal minutes, utm coordinates of elektrostal, geographic coordinate systems.

WGS 84 coordinate reference system is the latest revision of the World Geodetic System, which is used in mapping and navigation, including GPS satellite navigation system (the Global Positioning System).

Geographic coordinates (latitude and longitude) define a position on the Earth’s surface. Coordinates are angular units. The canonical form of latitude and longitude representation uses degrees (°), minutes (′), and seconds (″). GPS systems widely use coordinates in degrees and decimal minutes, or in decimal degrees.

Latitude varies from −90° to 90°. The latitude of the Equator is 0°; the latitude of the South Pole is −90°; the latitude of the North Pole is 90°. Positive latitude values correspond to the geographic locations north of the Equator (abbrev. N). Negative latitude values correspond to the geographic locations south of the Equator (abbrev. S).

Longitude is counted from the prime meridian ( IERS Reference Meridian for WGS 84) and varies from −180° to 180°. Positive longitude values correspond to the geographic locations east of the prime meridian (abbrev. E). Negative longitude values correspond to the geographic locations west of the prime meridian (abbrev. W).

UTM or Universal Transverse Mercator coordinate system divides the Earth’s surface into 60 longitudinal zones. The coordinates of a location within each zone are defined as a planar coordinate pair related to the intersection of the equator and the zone’s central meridian, and measured in meters.

Elevation above sea level is a measure of a geographic location’s height. We are using the global digital elevation model GTOPO30 .

Elektrostal , Moscow Oblast, Russia

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Advice backed by three decades of research into thousands of team conflicts around the world.

Managers spend 20% of their time on average managing team conflict. Over the past three decades, the authors have studied thousands of team conflicts around the world and have identified four common patterns of team conflict. The first occurs when conflict revolves around a single member of a team (20-25% of team conflicts). The second is when two members of a team disagree (the most common team conflict at 35%). The third is when two subgroups in a team are at odds (20-25%). The fourth is when all members of a team are disagreeing in a whole-team conflict (less than 15%). The authors suggest strategies to tailor a conflict resolution approach for each type, so that managers can address conflict as close to its origin as possible.

If you have ever managed a team or worked on one, you know that conflict within a team is as inevitable as it is distracting. Many managers avoid dealing with conflict in their team where possible, hoping reasonable people can work it out. Despite this, research shows that managers spend upwards of 20% of their time on average managing conflict.

• Randall S. Peterson is the academic director of the Leadership Institute and a professor of organizational behavior at London Business School. He teaches leadership on the School’s Senior Executive and Accelerated Development Program.
• PS Priti Pradhan Shah is a professor in the Department of Work and Organization at the Carlson School of Management at the University of Minnesota. She teaches negotiation in the School’s Executive Education and MBA Programs.
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