Do you want to start a hair oil production company? If YES, here is a detailed sample hair oil production business plan template & FREE feasibility report.
It is a known fact that hair oil and similar hair care products are used in all parts of the world and of course those that are in the business of producing these products, are known to generate sales year in year out if the business is well – managed.
As a matter of fact, economic downturn hardly affects the usage of hail oils and similar hair care products simply because it is a commodity that plays a major role in the beauty world and of course in ensuring that our hair is well – lubricated ad shinning. This is no wonder the production of hair oil has continued to soar high.
A Sample Hair Oil Production Business Plan Template
1. Industry Overview
Hair oil is oil applied to the hair as a cosmetic, conditioner, styling aid, restorative or tonic. Mineral and vegetable oils are used to make a variety of commercial and traditional hair oils. Coconut oil is a common ingredient and brands which used this include Macassar oil and Parachute. Other vegetable oils used on the hair include almond, argan, babassu and burdock.
The hair oil production business is a business whose products are used all across the world by both male and female. It is fact that there is no cultural barrier to the usage of hair oil. As a matter of fact, doctors do recommend that some patients with dry scalps make use of hair oil o regular basis.
In the last half, a decade, hair oil production business has experienced elevated demand, most especially from premium level goods, in line with increased consumer spending and the overall growth of the economy. Purchaser preferences and new product introductions have also contributed to boosted revenue and profit.
Operators flooded the industry over the period, as purchaser demand for brand – name and value-added products increased. An increasingly health-conscious customer base is becoming progressively more aware and sensitive to product ingredients.
Consumers are increasingly concerned with using products that are chemical-based or have traces of metals or animal by-products, pushing companies to invest in research and development to offer new natural and safe products.
Statistics has it that in the united states of America alone, there are about 4,062 registered and licensed cosmetics and beauty care manufacturing companies scattered all across the United States responsible for directly employing about 51,004 people and the industry rakes in a whopping sum of $49 billion annually.
The industry was projected to grow at 0.2 percent annual growth within 2014 and 2019. In the United States of America, L’Oreal USA Inc., The Procter & Gamble Company and Estee Lauder Companies Inc. has the lion market share of the available market in this industry. Their products can be found in every nooks and crannies of the United States and also in most countries of the world.
A recent report published by IBISWorld estimates that industry revenue will grow at an average annual rate of 2.3 percent over the five years to 2011.
The industry’s independently moving segments protect it from experiencing drastic changes in revenue during any given year; while cosmetics are more susceptible to changes in disposable income, essential items like toothpaste and shampoo are relatively stable segments.
Nevertheless, the industry suffered when the recession hit and consumers quickly tightened their purse strings. This was exacerbated when demand from export markets declined. However, as the economy recovers, slowly rebounding personal disposable income will lead to higher consumer sentiment levels and stronger spending on the industry’s products.
The report also shows that profits have remained stable due to the essential nature of many of the industry’s products. For example, major player Procter and Gamble offers many everyday essentials, which are in demand even as prices for consumer products increase. The company has enjoyed relatively steady growth throughout the past five years as a result.
Over and above, one of the major factors that encourage aspiring entrepreneurs to venture into hair oil production business is the fact that there are readily available markets for hair oil and similar hair care products. Despite the fact that there are stiffer competitions amongst hair oil manufacturing companies / brand, if you are able to carve a niche for yourself, it won’t be too difficult for people to accept your products.
2. Executive Summary
Sheila Pearson® Hair Oil Production, Inc. is a licensed and standard hair oil production company that will be located in an industrial area in Van Wert, Ohio. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on an agreed terms and conditions that is favorable to us.
The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials (essential oil and packaging containers) and finished products.
We are in the cosmetic & beauty care manufacturing industry to engage in the production of hair oil and similar hair care products. We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our hair oil and similar hair care products the opportunity to be part of the success story.
We are aware that there are several big scale and small scale hair oil production companies and even cosmetic and beauty care product manufacturing companies that manufactures hair oil products scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada.
Which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Van Wert – Ohio and the United States of America. Much more than producing quality and safe hair oil and similar hair care products, our customer care is going to be second to none.
We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our product and also to become our loyal customers and ambassadors. Sheila Pearson® Hair Oil Production, Inc. will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory.
We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Sheila Pearson® Hair Oil Production, Inc. is family business that will be owned by Sheila Pearson and her immediate family members. Mrs. Sheila Pearson who is the Chief Executive Officer of the Company is Graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA) from Stanford College.
She has well over 12 years of experience working in related industry as a senior manager prior to starting Sheila Pearson® Hair Oil Production, Inc. She will be working with a team of professionals to build the business and grow it to enviably heights.
3. Our Products and Services
Sheila Pearson® Hair Oil Production, Inc. is going to run a standard and licensed hair oil production company whose products will not only be sold in Van Wert – Ohio but also throughout the United States of America and Canada.
We are in the cosmetic & beauty care product manufacturing industry to make profits and also to give our customers value for their money. We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;
- Hair oil products
- Related hair care products
4. Our Mission and Vision Statement
- Our vision is to establish standard hair oil production company whose products will not only be sold in Van Wert – Ohio, but also throughout the United States of America and Canada.
- Our mission is to establish a standard and world class hair oil production company that in our own capacity will favorably compete with leaders in the industry.
- We want to build a business that will be listed amongst the top 10 hair oil brands in the United States of America and Canada
Our Business Structure
Sheila Pearson® Hair Oil Production, Inc. is a business that is established with the aim of competing favorably with other leading hair oil – brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of twelve years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Machine Operators
- Distribution Truck Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (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.
- Creating, communicating, and implementing 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
- Creating, communicating, and implementing 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.
- Responsible for overseeing the smooth running of the production plant
- Part of the team that determines the quantity of hair oil and similar hair care products that are to be produced
- Map out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Serve as quality control and compliance officer
- Ensures that the plant meets the expected safety and health standard at all times.
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.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of raw materials and labeling and packaging materials.
- 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
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- 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
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- 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 clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels/documents for the company
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
Production Workers/Machine Operators:
- Responsible for operating equipment and machines such as extracting, blending, mixing and), and packaging, labeling and sealing machines used in the production of hair oil and similar hair care products
- Handle labeling of hair oil and similar hair care products
- Assist in packaging and loading hair oil and similar hair care products into distribution trucks
Distribution Truck Drivers
- Assist in loading and unloading hair oil and similar hair care 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 transport and logistics manager in planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- 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
6. SWOT Analysis
We are quite aware that there are several hair oil production companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Sheila Pearson® Hair Oil Production, Inc. employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Sheila Pearson® Hair Oil Production, Inc.;
Part of what is going to count as positives for Sheila Pearson® Hair Oil Production, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of hair oil and similar hair care products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new hair oil production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like L’Oréal USA Inc., The Procter & Gamble Company and Estee Lauder Companies Inc. et al are already determining the direction of the market both in the United States and in the global market.
The opportunities available for hair oil products manufacturing companies with a wide range of products are enormous. This is due to the fact that almost all Americans and people from all over the world make use of cosmetics and beauty care products regularly.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for cosmetics and beauty care products and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power.
Another threat that may likely confront us is the arrival of a new hair oil production company or cosmetics and beauty care product manufacturing company that also manufacture hair oil and similar hair care products in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the existing trend in the cosmetic & beauty care products manufacturing industry, you will quite agree that despite the fact that there are competitions in different stages of the industry.
That is competitions amongst bigger corporations such as L’Oreal USA Inc., The Procter & Gamble Company and Estee Lauder Companies Inc. and also competitions amongst smaller and medium scale makeup / cosmetic and beauty care product manufacturing companies.
Most hair oil production company are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. Another trend in this industry is the exploration of safer raw materials for the production of hair oil and similar hair care products.
The truth is that people all over the world are looking for hair oil and similar hair care products that contain healthy essential oil hence the increase in demand for hair oil and similar hair care products that are produced from herbal raw materials.
Lastly, the cosmetic and beauty care products manufacturing industry is the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling hair oil and similar hair care products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.
In view of that, 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 engage in manufacturing and wholesale distribution of hair oil and similar hair care products to the following groups of people;
- Cosmetic and beauty care retailers
- Beauty salons and spas
- Barbing salons
- All the female and male in and around our target market location
Our Competitive Advantage
A close study of the cosmetic and beauty care products manufacturing industry cum hair oil production business 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 hair oil / cosmetic and beauty care product manufacturing companies in Van Wert – Ohio and throughout the United States and Canada.
Sheila Pearson® Hair Oil Production, Inc. is launching a standard hair oil product brand that will indeed become the preferred choice of residence of Van Wert – Ohio and every city where our hair oil and similar hair care products will be retailed.
Part of what is going to count as competitive advantage for Sheila Pearson® Hair Oil Production, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of hair oil and similar hair care products that we produce our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups hair oil/cosmetic and beauty care products manufacturing companies) 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
Sheila Pearson® Hair Oil Production, Inc. is established with the aim of maximizing profits in the cosmetic and beauty care product manufacturing industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of hair oil and similar hair care products to a wide range of customers.
Sheila Pearson® Hair Oil Production, Inc. will generate income by selling the following products;
- Hair oil products
- Hair care products
10. Sales Forecast
One thing is certain when it comes to hair oil production business, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, 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 Van Wert – Ohio and every city where our hair oil and similar hair care products care will be sold 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 cosmetic and beauty care products manufacturing 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 projections are based on information gathered on the field and some assumptions that are peculiar to startups in Van Wert – Ohio.
Below is the sales projection for Sheila Pearson® Hair Oil Production, Inc., it is based on the location of our business and other factors as it relates to small scale and medium scale hair oil production company start – ups in the United States;
- First Fiscal Year (FY1): $290,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $950,000
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 Sheila Pearson® Hair Oil Production, Inc. and also the kind of hair oil and similar hair care products we produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.
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 and also for our products to favorable compete with other leading brands in the United States of America and Canada.
We hired experts who have good understanding of the cosmetic and beauty care product manufacturing 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 Van Wert – Ohio and other cities in the United States of America and Canada.
In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Sheila Pearson® Hair Oil Production, Inc. will adopt the following sales and marketing approach to sell our hair oil and similar hair care products;
- Introduce our hair oil and similar hair care products brand by sending introductory letters to residence, merchants, retailers, barber shops, beauty salons and spas and other stakeholders in Van Wert – Ohio and other cities both in the United States of America and Canada
- Open our hair oil production company with a party so as to capture the attention of residence who are our first targets
- Engage in roadshow in targeted communities from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our hair oil and similar hair care products brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our hair oil production plant is a standard one with a wide range of hair oil and similar hair care products that can favorably compete with other leading brands in the cosmetics and beauty care production industry, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Sheila Pearson® Hair Oil Production, Inc.
Sheila Pearson® Hair Oil Production, Inc. has a long – term plan of distributing our hair oil and similar hair care products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Van Wert – Ohio before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sheila Pearson® Hair Oil Production, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our hair oil and similar hair care products brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in roadshow from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
When it comes to pricing for products such as hair oil and similar hair care products and cosmetics and beauty care products generally, there are two sides to the coin. We are aware of the pricing trend in the cosmetic and beauty care products manufacturing industry which is why we have decided to produce various sizes of hair oil and similar hair care products et al.
In view of that, our prices will conform to what is obtainable in the cosmetics and beauty care production industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various hair oil and similar hair care products brands in the United States of America.
We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our hair oil and similar hair care product brands.
- Payment Options
The payment policy adopted by Sheila Pearson® Hair Oil Production, 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 Sheila Pearson® Hair Oil Production, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- 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 the purchase of our hair oil and similar hair care products 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)
When it comes to starting, a hair oil production company the major areas that you look towards spending the bulk of your cash is in the purchase of standard oil extraction and mixing machines, distribution trucks and of course renting or leasing a well-located facility large enough fit into the design you have in mind.
Aside from that, you are not expected to spend much except for paying of your employees, purchase of raw materials, maintaining your trucks and fueling. These are 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) – $1,300.
- Marketing promotion expenses for the grand opening of Sheila Pearson® Hair Oil Production, 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.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard hair oil production plant – $100,000.
- 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) – $100,000
- The cost for Start-up inventory (raw material (essential oil) and labeling and packaging materials. et al) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $60,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully set up our hair oil production plant in Van Wert – Ohio. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funds / Startup Capital for Sheila Pearson® Hair Oil Production, Inc.
Sheila Pearson® Hair Oil Production, Inc. is a family business that is owned and financed by Sheila Pearson and her immediate family members. They 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 and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) 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 Sheila Pearson® Hair Oil Production, 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 hair oil and similar hair care products 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.
Sheila Pearson® Hair Oil Production, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are 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 three 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.
- 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 construction of standard hair oil production plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: 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 equipment and machines such as oil extractor, blending, mixing and packaging, labeling and sealing machines, 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
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress