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 design 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 10th 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 auto pilot. 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
- 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 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.
- 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.
Sales and Marketing Manager
- 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.
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 design 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
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;
- Hair care and shower products
- Skin care products
- Nail care products
- Deodorant and shaving products
- Sun care, baby care and other products
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 candy 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 re – training 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
Frequently Asked Questions
What Is Needed To Open A Beauty Supply Store?
Beauty supply businesses stock different types of hair, skin, and cosmetic products. If you are interested in beauty supply products, learning how to start a beauty supply business can be a potentially lucrative idea. Below are things you need to start this business;
- Storefront and/or factory locations
- Lighting for your establishment
- Makeup accessories
- Display cases
- POS and business management system/software
- Logo and trademark design
- Advertising and marketing material
What Licenses Do You Need For A Beauty Supply Store?
- Retail Seller Permit.
- Business Operation License.
- Doing Business as (DBA) License.
- Federal Employer Identification Number (EIN)
- Certificate of Occupancy.
How Much Does It Cost To Start Your Own Beauty Supply Store?
It costs anywhere between $5,000 and $500,000 depending on what you intend to include because you can include even a luxury spa with your store.
How Do You Open A Professional Beauty Supply Store In Your Home Town?
- Choose Your Niche
- Licensing and Permits
- Choosing a Location
- Create a Business Plan
- Set Up Your Website
- Hire Knowledgeable Staff
- Develop an Attractive Presentation
- Locate and Buy Inventory
Starting your own pageant can be a challenging and rewarding journey to embark on. While there is a lot that goes on behind the scenes to make sure a pageant runs smoothly, hard work, determination, and research can make the process a bit easier. To start a beauty pageant business, here are steps to take;
- Give it a name
- Think of titles
- Choose your age divisions
- Sort out expenses
- Balance your budget
- Set a location
- Find sponsors
- Put together an award package
- Start recruiting
- Write up your contestant contracts
- Set your royalty expectations
What Is The Starting Salary At Sally Beauty Supply?
Hourly pay at Sally Beauty Supply Company ranges from an average of $8.85 to $15.00 an hour. Retail Store Managers make the most with an average hourly rate of $14.15, while Sales Associates make the least with an average hourly rate of $10.30.
How Can You Get Wholesale Beauty Supply Distributors?
Here are a few portals that might help you to get wholesale beauty supply distributors:
How Much Money Can You Make In The Beauty Supply Store Business?
Beauty products are typically sold by the unit and vary in price. Low-end stores have products starting at $5, while high-end items sell for upwards of $150. However, Profit margins for this industry average 40 percent, with some running as high as 80 percent. An average small beauty store can realize a profit of $35,000 to $70,000 annually, while larger stores are reporting profits in the multi-millions.
How Can You Raise The Money To Open Your Own Beauty Supply Store?
- From personal savings and sale of personal stocks and properties
- From investors and business partners
- Sell of shares to interested investors
- Applying for loan from your bank
- Source for soft loans from your family members and your friends
Where Do You Buy Things Like Shelves For Inside Your Beauty Supply Store?
- Online Stores
- Carpentry shops
Where Do Hair Stylists Buy Your Products?
Most hair salons buy their hair products from distributors, the middleman between brand manufacturers and salon owners. Another option to consider is private label manufacturing. This allows salons to create their own unique formula and product label.
How Much Do Beauty Supply Stores Pay?
Average Beauty Supply Store hourly pay ranges from approximately $9.19 per hour for Retail Sales Associate to $13.86 per hour for Store Manager. The average Beauty Supply Store salary ranges from approximately $20,000 per year for Customer Service Representative to $37,171 per year for Store Manager.
How Do You Start A Beauty Supply Store In Houston?
- Choose Your Niche.
- Licensing and Permits.
- Choosing a Location.
- Create a Business Plan.
- Set Up Your Website.
- Hire Knowledgeable Staff.
- Develop an Attractive Presentation.
- Locate and Buy Inventory.
Is Owning A Beauty Supply Store Profitable?
Yes, the beauty supply and cosmetics industry is quite huge and you can definitely make money with a storefront. Experts project the global cosmetic market to reach $863 billion dollars by 2024, making it a very viable, cash positive marketplace.
A cosmetology license is quite necessary for any qualified makeup artist who wishes to open a makeup business. If you want to provide additional skin care services, it may be helpful to obtain an aesthetician’s license.
What Is The Profit Margin On Beauty Products?
Profit margins for this industry average 40 percent, with some running as high as 80 percent. Most retailers expect 40 percent to 60 percent margins.
How Do You Get Start-up Money For Your Beauty Supply Store?
- Personal Resources
- Trade Lines
- SBA Microloans
- 7(a) Loans
How Much Money Do You Need To Open A Fashion Jewellery Business?
A small fashion jewellery store can be started for as little as $20,000. However, depending on your location, it might cost up to $100,000 to get started. A typical breakdown of expenses might look like this:
- Rent: $0 (if you start your business from your home); $1,000 per month for a small storefront; up to $10,000 per month for a larger storefront, depending on location.
- Overhead and raw materials: $500 for basic raw materials to make low-end jewellery; $10,000+ for precious metals and gemstones.
- Insurance: $500 – $1,000 per year.
- Basic tools: $200 – $300
How Do You Find Distributors For A Makeup Business?
- Understand Distribution Channels.
- Try the Manufacturer First.
- Have a Productive First Contact.
- Get Specific in Online Searches.
- Look for Wholesale Lots on eBay.
- Check Major B2B Marketplaces.
- Join Professional Networks.
- Subscribe to Trade Publications.
- Attend a Trade Show
- Don’t Be Afraid to Make a Mistake
How Do You Start An Online Beauty Supply Business?
- Develop your online beauty supply store theme.
- Design and build your platform.
- Choose the right domain name for your new website.
- Stock your ecommerce store with your products (or services)
- Reach out and connect with your customers.
- Start making sales with your online beauty store.
How Do You Write A Business Plan For A Beauty Supply Store?
To write an effective business plan for a Beauty Supply Store, here are things to consider;
- Provide a company description
- Include information from target market and industry analysis.
- Explain your products.
- Address operational needs.
- Create an organizational structure.
- Assess marketing.
- Provide a financial plan.
How Do You Start A Beauty Supply Store With No Money?
- Understand the Market
- Write Down Your Business Plan
- Decide Your Slot
- Register Business with Procure Licenses & Permits
- Choose the Location
- Select the Suppliers
- Decorate Beauty Supply Store
How Do You Start A Black Owned Beauty Supply Store?
Aside from the race of the owners, the steps are the same.
- Research the Industry.
- Create a Business Plan.
- Learn About the Industry.
- Find a Good Location.
- Market Your Business.
When Is The Best Season To Have The Grand Opening For A Beauty Supply Store?
Typically the fall! This is when parents are doing school shopping for their children and a few months later are the Holiday Season.
Where Can You Buy Makeup Cosmetics In Bulk In India For Your Beauty Supply Store?
- B2B TradeHolding
How Do Koreans Open Up Beauty Supply Stores?
By opening large stores and buying out smaller Black-owned ones, using Black models on their products and employing a Black staff, Korean entrepreneurs have created what some call a monopoly on the Black beauty market. Aside from the race of the owners, the steps are the same.
- Research the Industry.
- Create a Business Plan.
- Learn About the Industry.
- Find a Good Location.
- Market Your Business.
How Do You Start Your Own Hair Business?
To start a hair business, there are several things you should consider, and they include;
- Research Your Products.
- Pick a Venue.
- Set Up Wholesale Accounts.
- Provide Customer Incentives.
- Sell Accessory Supplies
- Offer Discounts to Repeat Customers
- Promote Your Business.
What Discount Do Sally Beauty Employees Get?
30 percent off all items in store.
Is The Cosmetology Industry Growing?
Yes, the global cosmetic market grew an estimated 5.5 percent in comparison to the previous year. Skincare, hair care, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market. Today, the global beauty industry is a $532 billion business.
Do You Publish the Contact Information of Stores you’ve opened?
How Much Does A Beauty Store Owner Make?
A Store Owner makes $75,000 per year on average. Reported Store Owner salary ranges from $14,500 to $385,000 per year but most owners fall into the $70,000 to $175,000 annual salary range.
Do You Need A License To Sell Hair Extension?
No, you won’t need a license to sell hair extension, however, if you think this is going to be a full time business you should consider forming an LLC or incorporating.
How Many Bundles Do You Need To Start A Hair Business?
With each style and length, you’ll want to have at least four bundles. Four bundles are enough to offer your customers a full look without breaking the bank. Also having 4 of each style will give you the necessary variety to be successful.
Where Can You Find Distributors And Vendors For Products?
The simplest way to find wholesale vendors in the US is by Googling the company of the product you want to sell, going on their website, and finding out who their wholesale distributors are. Smaller companies most likely won’t have distributors and will sell to you directly.
What Is The Start-up Cost On The Average Store?
The average costs for starting a store – around $100,000 – may or may not apply to you, but the more time and effort you spend planning ahead, the better.
What Type Of Degree Is Needed To Own A Beauty Supply Store?
While a degree is not typically required for this profession, candidates can prepare for this career by enrolling in courses or degree programs in sales, marketing, or a related area. Programs in these fields teach sales techniques and communication skills and may include courses in consumer behaviour, business sales, and account management.
Can You Buy Professional Hair Colour Without A License?
No, Beauty supply stores are NOT open to the public. You may only buy their products if you have an active cosmetology license.
How Can You Make It Easier Or Faster For Customers To Purchase Your Products?
- Know the difference between a benefit and a feature.
- Use vivid but plain language.
- Avoid biz-blab and jargon.
- Keep the list of benefits short.
- Emphasize what’s unique to you or your firm.
- Make your benefits concrete.
Can You Start An Online Hair And Beauty Supply Business With No Inventory?
It is possible if you want to dropship.
What Are The Costs Involved In Opening A Business?
- Incorporation fees
- Office space
- Office furniture and supplies
- Professional consultants
A wig store business’ profits depend on the price point of the wigs the business sells and its volume. On the high end, businesses selling custom medical wigs can bring in over $10,000 per month in revenue. Businesses selling $40 fashion wigs likely won’t have enough sales to make this much each month, but they can have a steady revenue—and they often see a significant bump in sales around Halloween.
Where Can You Buy Black Hair Products Wholesale?
- GMBS Hair.
- MI Distribution.
- Dropship Extensions.
- Queen Weave.
- Black Show Hair.
Can You Shop At Cosmoprof Without A License?
Cosmoprof is a distributor, not a retail store. Only Licensed cosmetologists, barbers, massage therapists, students of beauty and business owners in these fields may shop there, as well as business owners in these fields.
Is It Illegal To Sell Professional Hair Colour?
In at least three states, there are no rules or regulations prohibiting licensed cosmetologists from selling professional colour for at-home use. Texas, Ohio and California state boards agreed that creating colour kits for clients to apply at home would not violate any current regulations.
How Much Does It Cost To Start An Online Business?
Starting an online business can be relatively simple and affordable, but some expenses are necessary. Depending on the type of business you want to start and how and where you would like to set it all up, your start-up costs can vary significantly.
- A business license can cost anywhere from $50 to a few hundred dollars, plus account renewal fees.
- You’ll need a top web hosting service and a domain name (your business website’s URL). You’ll typically pay an initial fee of $50 to $100 for the domain name and then an annual fee of about $20.
- The cost of e-commerce software can range from $30 to $299 a month, depending on the features and tools you require.
- A payment processor makes sure you get paid for your online sales. The amount you’ll pay to accept credit and debit cards varies depending on the type of card, the amount of the sale, whether the card is present and which processor you hire.
- Inventory. The costs to store it, maintain it and replenish it make up your inventory expenses.
- Marketing is one of the most important things you can spend money on, because it has a direct payoff if you do it well. You’ll need to budget for things such as search engine optimization (SEO), pay-per-click (PPC) ads, social media and content creation.
- Many online brands and businesses also choose to employ PPC marketing. This is a great way to get customers, and it’s not too pricey – expect to pay around $100 a month for PPC marketing.
How Much Would It Cost To Get All The Permits You Need?
The cost of your business license or permit depends on several factors, like license type, your location, processing fees and recurring fees. The average business license costs somewhere between $50 and a few hundred dollars plus renewal fees.
Does Sally Beauty Pay Weekly?
Bi weekly, however, pay varies from store to store and position
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