Are you about starting a beard oil company? If YES, here is a complete sample beard oil production business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a beard oil production business.
We also took it further by analyzing and drafting a sample beard oil business marketing plan template backed up by actionable guerrilla marketing ideas for beard oil businesses. So let’s proceed to the business planning section.
Why Start a Beard Oil Production Business?
Just like getting a tattoo, growing a beard has become socially accepted. It has become a fashion trend synonymous with style and manliness. Growing and maintaining a beard takes more than just constant shaving. Men who keep beards even spend some bucks on it by getting products such as beard oil.
This kind of oil is created to make the beards soft, healthy and irritation-free. Beard oil is a product especially made for the beard.
It is believed the having a dry scalp can cause irritation and itchiness, the same goes with the skin underneath the beard. Just like the human scalp, the skin under the facial hair is sensitive and can have similar problems as the scalp.
This has created a huge demand for beard oil and other beard care products. Also note that some of the common shampoos in the market are made up of chemicals and can further create dryness and irritation when used for the beard.
When we wash our hair, natural moisture and oils are also being washed away. This is the reason why many people choose to use this oil to replace the dehydration that can happen on the beard.
Beard oil is made up of many different oils, but it all depends on the company or the individual producing the oil. There are some companies that would add other mixtures to the oil. The main component of beard oil, however, is the carrier oil.
This base oil is used to water down essential oils before putting on the skin. Other components of this oil are essential oils.
These essential oils are mainly to add some aroma to the oil and/or to treat the skin. There are also some brands of this oil that are mixed with conditioning and moisturizing elements such as grape seed oil, argan oil and jojoba oil. Even hair experts suggest that using these oils can be very essential for maintaining the health of the facial hair and the skin.
The growing adoption of beards in our modern society is creating a huge market for beard oil. This business is a unique business you can start even from your home as long as you can market your oil strategically. For men to successfully grow beards without the itching and dryness, experts suggest that they must use this product and that they must take care of their beard as much as they do with their hair.
A Sample Beard Oil Production Business Plan Template
1. Industry Overview
According to statistics, the global male grooming market is estimated to be worth about 29.14 billion U.S. dollars . We all can easily note that there has been a major shift in male pampering culture during the last decade. Men’s toiletries used to consist of shampoo, deodorant, shaving cream and not much else.
But all over the world now, bathroom cabinets of middle-class homes are now stocked with moisturizers, facial cleansers, eye serums, bronzers, concealers, anti-agers and even mud masks—all designed specifically for men.
In this age, men are beginning to spend more on male-specific toiletries than on shaving products. Report has it that the sell of skin care, in particular, boomed; and there is no going back now. More and more men are putting higher stock into looking good.
It is now more about self-confidence as much as anything else, and the desire to feel more attractive, more successful and increasingly, more youthful.
You have to understand that tapping into the global demand for men’s grooming products is a daunting task; especially for business owners that have spent decades establishing female consumers. A lot of major companies in this industry are fundamentally associated with women. That is why smaller companies specializing in men’s grooming products have leveraged this weakness.
According to reports, the industry should expect to witness a further segmentation of men’s grooming, especially in the developed markets where there are opportunities for stronger development. In skin care, there will be growth in products designed not only for different skin types but also for different degrees of stubble.
The number of product launches for men will still be low in comparison with products for women, of course, but the gap will narrow over time. Notwithstanding, the global Beard Oil Market is projected to expand at a CAGR of 4.0% during the forecast period 2018 to 2025.
It is believed that facial hair has evolved from shabby to trendy, and the movement has created an opening for new beauty products. Beard-related products such as oils and softeners, represent less than 1 percent of the men’s grooming market, but product introductions have quadrupled since 2014.
Beard oils could help lift the struggling fragrance category. Sales growth for prestige fragrances which tend to be pricier than those sold at drugstores has remained relatively flat over the last year, while makeup and skincare grew 5 percent and 6 percent, respectively.
2. Executive Summary
Tico Herbs is a new business in New Orleans that produces hand-made herbal products created by Cecilia Manor, the company founder. Our products at Tico Herbs include herbal beard oil, herbal hair shampoo, herbal therapy packs, soaps, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder.
All our products at Tico Herbs are made from herbs that are either garden grown or gathered in local fields or wooded areas when they are at their peak of maturity and the concentration of active ingredients is highest. Herbal products have grown in popularity with consumers over the past ten years.
With robust CAGR of 7.6%, the global market for herbal medicinal products is expected to represent an absolute opportunity of more than US$8800 Mn and incremental opportunity of more than US$140 Bn between 2017 and 2027.
There was a time when a customer would have to go to a specialty shop to get herbal products, now those same products are available at the local Supermarket. The demand has created a unique industry that supplies herbal products to companies who then market the product under their own brand name.
We at Tico Herbs plan to sell our products to herbal product companies that sell baskets with specific themes (such as beard oil, balsam salve and eye packs). Our company founder, Cecilia Manor has twelve years’ experience in the herbal product industry. She has worked as a merchandise Manager for both Knight Herbal Products and Hygienic Oil.
Cecilia Manor is also well known for the part she played in bringing Knight Herbal Products into limelight and she maintained her contacts in the industry and has already signed contracts with Concord herbs and Vistula Products to supply herbal therapy packs, salves, balsam eye pack, and beard oil.
Our preferred business location, New Orleans, has been described as the “most unique” in the united states, due to its huge cross-cultural and multilingual heritage.
It is a consolidated city-parish located along the Mississippi River in the south eastern region of the U.S. state of Louisiana. With an estimated population of 393,292 in 2017, it is also the most populous city in Louisiana. New Orleans is also considered an economic and commercial hub for the broader Gulf Coast region of the United States.
3. Our Products and Services
Our product line at Tico Herbs will include the following:
- Beard oil made from a blend of herbs, oils and essential oils selected to keep the beard shiny while delivering nutrients for a healthy beard. Essential oils and Neem Oil have been added as they have anti-microbial, anti-fungal properties that keep the beard clean.
- Soaps created with such herbs as powdered balsam and Rose petals marbleized throughout each cake and gently scented.
- Herbal bath bags of lavender, peppermint, oatmeal and herbs.
- Bath powder made from arrowroot, corn starch, rose petals and other herbs.
- Herbal Therapy Packs for back and neck pain and relief of muscle aches, filled with wheat berries and flax seed and 10 herbs. These are made of natural cotton or patterned flannel and can be heated in the microwave oven or cooled in the freezer for optimum benefit.
- Balsam eye packs in eye-pleasing patterns that help relieve sinus discomfort and eyestrain.
- Salves with Comfrey for healing cuts, Goldenseal, Balsam and other herbs for use on split skin caused by the drying effects of heat, cold or water.
- Moisturizer for face and hands with various scented oils.
4. Our Mission and Vision Statement
- Our vision at Tico Herbs is to produce unique and affordable herbal products that will be seen as a vital alternative to modern care products.
- The mission at Tico Herbs is to make herbal products that heal and sooth and cleanse our customers.
Our Business Structure
Tico Herbs is a provider of herbal products including herbal beard oil, herbal therapy packs, soaps, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. We plan to sell our product line to herbal product companies that sell baskets with specific herbal themes. Tico Herbs is owned by Cecilia Manor. She has worked as a merchandise Manager for both Knight Herbal Products and Hygienic Oil.
She’s well experienced in managing staff. Within the past two years, Cecilia has built her business from a part-time business to its current production level. Note that our current staff should be enough for the first two years of operation. We plan to hire and train more as we grow and expand. Below are the portfolios we already have at Tico Herbs;
- Chief Executive Officer (Owner)
- Company Manager
- Human Resources and Admin Manager
- Merchandize manager
- Sales and Marketing Officer
- Accountants
- Company Casual Workers
- Drivers
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Executive Officer
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives
- 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.
- Tasked with fixing prices and signing business deals
- Tasked with providing direction for the business
- 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.
- Tasked with signing checks and documents on behalf of the company
- Evaluates the success of the organization
Company Manager
- Tasked with overseeing the smooth running of the company
- Makes sure that quality is maintained at all times
- Maps out strategy that will lead to efficiency amongst workers in the company
- Tasked with training, evaluation and assessment of the workforce
- Make sure that the company meets the expected safety and health standards at all times.
Human Resources and Admin Manager
- Tasked with overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Tasked with training, evaluation and assessment of employees
- Oversees the smooth running of daily business activities.
Merchandize Manager
- Manages vendor relations, market / garden visits, and the ongoing education and development of the organizations’ buying teams
- Ensures consistent quality and quantity of all herbs and inventories
- Tasked with the purchase of herbs and measuring materials (bottles, and plastics et al)
- Tasked with planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyses the volumes of transactional data generated by customer purchases
- Identifies, prioritize, and reach out to new partners, and business opportunities et al
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Company Casual Workers
- Tasked with operating synthetic production equipment
- Tasked with measuring and filling products into various containers
- Tasked with carrying out all casual or unskilled jobs in the company
- Assists in loading and unloading of herbs and processed products
- Handles any other duty as assigned by the company manager
Accountant
- Tasked with preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Tasked with financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Tasked with developing and managing financial systems and policies
- Tasked with administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Drivers
- Assist in loading and unloading finished products
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the company manager in planning their route according to a delivery schedule.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
Client Service Executive
- Make sure that all contacts with customer (e-mail, walk-In centre, 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 company manager in an effective and timely manner
- Consistently stays abreast of any new information on herbal products, promotional campaigns etc. to Make sure accurate and helpful information is supplied to customers when they make enquiries
6. SWOT Analysis
Our objective at Tico Herbs is to achieve sales goal of $240,000 during first year of operation. Within our first year we also want to establish a regular customer base of 15 companies and increase our sales by 15% during the second year of operation. All these are not mere words as we are determined to render impeccable services and satisfy the needs of our clients while also making profits.
We also went further by contracting Lincoln and partners consult, a well-known business consulting firm in New Orleans, to look through our business concept. Together with Lincoln and Partners Consult, we were able to go through the prospect of the business to ensure we can compete favourably.
We were able to understand our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in our immediate business environment. Highlighted below is the result of our SWOT analysis presented by Lincoln and Partners Consult.
- Strength
According to our SWOT Analysis, our strength at Tico Herbs is the expertise and experience of our founder and CEO. Cecilia Manor has worked as a merchandise Manager for both Knight Herbal Products and Hygienic Oil. She’s experienced in managing staff. Within the past two years, Cecilia has built her business from a part-time business to its current production level. She knows the industry in and out and has built contacts in the industry.
- Weakness
The SWOT Analysis conducted also noted that our weakness at Tico Herbs will be the intense competition awaiting us in this industry. There are other herbal companies in New Orleans that may offer the same product with us. But we at Tico Herbs differ from them because we do not target the general public. Our aim at Tico Herbs is to target those companies that sell to the general public and supply to them our uniquely manufactured herbal products.
- Opportunities
Herbal products in recent years have grown in popularity. With an interesting CAGR of 7.6%, the global market for herbal medicinal products is expected to represent an opportunity of more than US$ 8800 Mn and incremental opportunity of more than US$ 140 Bn between 2017 and 2027.
There was a time when a customer would have to go to a specialty shop to get herbal products, but now those same products are available at the local supermarket. The demand has created a unique industry that supplies herbal products to companies who then market the product under their own brand name.
- Threat
According to our SWOT Analysis, the only threat we will be facing in this business will be ourselves. We need to plan and implement a successful marketing strategy to be able to declare our intentions in the industry. We have to follow our business plan and grow our business judiciously and also stay current with world herbal trends. Another threat we might face will be the scarcity of herbs and oils or the destruction of our herbs by pests and other things.
7. MARKET ANALYSIS
- Market Trends
In this industry, businesses always strive to locate their production companies close to communities where they can easily have access to fresh and cheap herbs and oils. Once a company makes the mistake of choosing a location where they have to travel a long distance to find herbs in commercial quantities, they will always have issues making profits and maintaining overhead and logistics.
Successful companies in this industry tend to expand their services beyond their business location, they expand to other regions in the country and even to other countries. They also work hard to ensure they own their own farm and herbs. With that, it is easier for them to maximize profits and grow the business.
Herbal health products dominate sales but herbal beauty products have been growing in popularity each year. According to reports, there are 25,000 herbal health product companies in the United States competing for market share among consumers.
Most of these companies are regionally focused but 15% of them distribute their products nationally. This is compared to only 2,000 herbal beauty product companies. Statistics has it that most of these companies also only compete regionally though there are handfuls (4%) that dominate the national market. As sales grow in herbal beauty product, more new companies will enter the marketplace.
8. Our Target Market
We at Tico Herbs plan to focus on small companies serving New Orleans and the United States. We believe that some of these smaller companies aggressively seek out new products that they can add to their product line. They understand the huge overhead that comes with manufacturing all these items themselves so they contract third party vendors to supply them products. We at Tico Herbs plan to focus on two target companies:
- Herbal Heath Products
New Orleans in all its glory is home to a number of small-to-medium herbal heath product companies such as The Herb Import Company, Maypop community herbs and Crescent City Acupuncture & Herbal Medicine, LLC at Canal Street. It also boasts of GNC, Mushroom New Orleans and Dr Mark Chemical Research Company.
All these companies buy raw or finished products from third-party vendors. These companies generated sales in excess of $65 million last year. Their products are sold in health and natural food stores in New Orleans.
- Herbal Beauty Products
New Orleans is also home to a number of small-to-medium herbal beauty product companies such Warbac at Metairie, Rosalie Apothecary in Mid-City New Orleans and Bodhisattva Tea Spa at Arnoult Rd. All of these companies buy raw or finished products from third-party vendors. These companies generated sales in excess of $35 million last year. Most of their products are sold in health and natural food stores only all over New Orleans.
Our competitive advantage
We at Tico Herbs plan to focus first on establishing a client base with herbal health product companies. Our CEO, Cecilia Manor and our marketing manager will be responsible for marketing the company’s services to potential customers.
We have already acquired supply contracts with Concord herbs and Vistula Products. Our competitive advantage at Tico Herbs is the consistent quality of the herbs that are at the core of each product. Our products have been tested locally for years, sustaining and establishing the customer satisfaction level demanded by Tico Herbs.
9. SALES AND MARKETING STRATEGY
- Marketing and Sales strategy
We at Tico Herbs will market our company’s product line at regional craft fairs. Our CEO and Marketing manager will be tasked with coordinating and participating in presentation meetings with herbal company representatives. In addition, they will regularly send free samples to our potential clients so that they can experience the quality of Tico Herbal products first hand. The key to our marketing will be face-to-face sales. We also plan to create a website.
This site will be designed to promote Tico Herbs products, list a calendar of our craft fair appearances, and initially, offer a selection of our most popular products for direct web-sales. We have contracted XYZ technologies, and E-commerce Consultancy Company for the design, hosting, and search engine placement of the website.
Sources of Income
We at Tico Herbs plan to generate funds by producing herbal products and supplying to companies who then sell to the general public. The herbal products we plan to produce and generate steady income from include;
- Beard oil made from a blend of herbs, oils and essential oils selected to keep beard shiny while delivering nutrients for a healthy beard. Essential oils and Neem Oil have been added as they have anti-microbial, anti-fungal properties that keep the beard clean.
- Soaps created with such herbs as powdered balsam and rose petals marbleized throughout each cake, gently scented.
- Herbal bath bags of lavender, peppermint, oatmeal and herbs.
- Bath powder made from arrowroot, corn starch, Rose petals and other herbs.
- Herbal Therapy Packs for back and neck pain and relief of muscle aches, filled with wheat berries and flax seed and 10 herbs. These are made of natural cotton or patterned flannel and can be heated in the microwave oven or cooled in the freezer for optimum benefit.
- Balsam eye packs in eye-pleasing patterns that help relieve sinus discomfort and eyestrain.
- Salves with Comfrey for healing cuts, Goldenseal, Balsam and other herbs for use on split skin caused by the drying effects of heat, cold or water.
- Moisturizer for face and hands with various scented oils.
10. Sales Forecast
Our company founder, Cecilia Manor has twelve years’ experience in the herbal product industry. She has worked as a merchandise Manager for both Knight Herbal Products and Hygienic Oil. She has maintained her contacts in the industry and has already signed contracts with two companies to supply herbal products.
She will build on these successes and market our product line to herbal product companies through face-to-face selling. We at Tico Herbs expect that sales will start quickly. The first billing will be sent out in mid-May 2019. Outlined below our sales projections…
- First Year: $240,000
- Second Year: $800,000
- Third Year: $1,705,000
Note: Note that this forecast was done based on what is obtainable in the industry and with the belief that none of the threats we mentioned above will be a hindrance or may likely appear.
11. Publicity and Advertising Strategy
We at Tico Herbs plan to provide our clients with the products and services they want for the right price. We plan to maintain an extensive marketing campaign that will ensure maximum visibility for the business in our targeted market. Below is an overview of the publicity and advertising strategies for Tico Herbs;
- We plan to establish relationships with herbal products companies within our target market.
- We will place adverts on both print (community based newspapers and magazines) and electronic media platforms. We will also advertise our services on industry magazines, healthcare magazines and other relevant healthcare programs on radio and TV
- We plan to also sponsor relevant community based events
- We also plan to engage in roadshows from time to time
- We also plan to distribute our fliers and handbills in target areas all around New Orleans
- We plan to make sure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo
- We will also leverage various online platforms to promote our business. That will make it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- We also plan to mount our billboards in strategic locations all around New Orleans.
12. Our Pricing Strategy
Our goal at Tico Herbs is to provide our customers with unique services and product knowledge, to build our marketing plan to reach our target market, while also maximizing profits.
That is why to get the right pricing for our products we need to make sure that we choose a good location for our business, choose our suppliers wisely, reduce our overhead costs to the smallest minimum and make sure we attract clients to our business, as against taking our products to the market to source for buyers; with this, we would have successfully removed the cost of transporting the goods to the market.
- Payment Options
With our unique customer approach to business, we plan to offer our customers different payment options as it suits them. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we at Tico Herbs plan making available to our customers;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via POS
13. Startup Expenditure (Budget)
Tico Herbs is a provider of herbal products including herbal Beard oil, herbal therapy packs, soaps, balsam eye packs, salves, moisturizers, herbal bath bags, and bath powder. We plan to sell our product line to herbal product companies that sell baskets with specific herbal themes.
Tico Herbs is located in a 2,000 square foot manufacturing space in New Orleans. The start-up expense for Tico Herbs is focused primarily on production and extraction equipment. Below is a detailed analysis of how we intend to spend our startup capital:
- The price for incorporating our business in United States of America – $750.
- Our budget for key insurance policies, permits and business license – $4,000
- The cost of acquiring/leasing our facility and land – $55,000
- The budget for preparing our company– $25,000
- The price for acquiring the required working tools and equipment – $1,000,000
- The price of Launching an official Website – $600
- The budget for paying our workers for 1 year – $500,000
- Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
- Miscellaneous – $5,000
From our detailed cost analysis above, we will need $1,592,350 to start Tico Herbs and make our herbal production company ready to serve the needs of our customers.
- Generating Start-up Capital for Tico Herbs
Tico Herbs is owned by Cecilia Manor. She has worked as a merchandise Manager for both Knight Herbal Products and Hygienic Oil. Within the past two years, Cecilia has built her business from a part-time business to its current production level. We at Tico Herbs plan to generate funding from the following ways;
- Raising part of the startup capital from personal savings
- Raising part of the startup capital from family members and friends (soft loans and gifts et al)
- Raising a larger chunk of the start-up capital from the sale of shares and equity.
14. Sustainability and Expansion Strategy
Note that as the herbal market has evolved into a multi-billion dollar industry, so has the opportunity for small firms and farms to supply product to larger herbal companies that then repackage and market the product under their own brand.
Report has shown that the size of these suppliers can range from a one-person operation to a small farm that can have 20 or more employees. We at Tico Herbs are aware that as larger and second tier companies face off to win greater market share, they are always on the look out for additional product items that will improve their advantage in the marketplace.
Routinely, a product like herbal beard oil is an exciting cost efficient addition to a product line. We at Tico Herbs have analysed our industry and how good we can play in it. We are ready and prepared to show the industry what we can do while also satisfying the innovative needs of our clients.
We at Tico Herbs also understand that quality and timeliness are the essential factors in being successful as a supplier to herbal product companies. We understand how the supply chain works and know how quality and speed is needed especially when the product is re-packaged as part of a gift basket. A delay in delivery will impact the company’s ability to meet delivery deadlines.
Also quality is very necessary because word of mouth is one of the best marketing tools with herbal products. The popularity and customer satisfaction of our products were an important selling point when Concord Herbs first approached us for supplies.
Checklist/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank 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
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress