Do you want to start a lip gloss company and need to write a plan? If YES, here is a sample lip gloss line business plan template & FREE feasibility report.
It is a known fact that lip gloss, lipsticks and similar 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 if the business is well – managed. As a matter of fact, economic downturn hardly affects the usage of lipsticks, lip gloss and similar products because it is a commodity that plays a major role in the beauty world.
If you are however thinking of starting your own lip – gloss production business, then you must be ready to learn the ropes. No doubt it requires loads of research, experience and huge capital base to start off. If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan
Below is a sample lip gloss line production company business plan template that will help you launch your own business.
A Sample Lip Gloss Line Production Business Plan Template
Table of Content
Lip gloss production business involves preparing, blending, compounding and packaging both cosmetic and therapeutic lip products. The products they produce are lipstick, lip gloss, lip stains, lip liner and lip balm. Lipstick is applied to the lips as part of makeup basically to boost lip color, texture and often hydration.
Sheer lipsticks usually contain a significant amount of oil, with less wax and pigment than matte lipsticks, making them more translucent. Lipsticks with oil components must be reapplied many times so as to make the lips look shiny and glossy.
The lip gloss is used all across the world by both male and female. It is fact that there is no cultural barrier to the usage of lip gloss. As a matter of fact, doctors do recommend that some patients with dry lips should make use of lip gloss.
In the last half decade, the lip gloss 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 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 68 registered and licensed lip gloss and lipsticks manufacturing companies responsible for directly employing about 3,783 people and the industry rakes in a whooping sum of $4 billion annually.
The industry is projected to grow at a 4.7 percent annual growth within 2011 and 2016. In the United States of America, Estee Lauder is the leading brand in the lip gloss and lipstick production business. Their products can be found in every nooks and crannies of the United States and also in most countries of the world.
Lip Gloss was introduced to the public in 1930 by Max Factor Company and Clear lip balm is one of the most popular lip gloss products in the modern market. A survey conducted in 1998 amongst American women showed that 32 percent of them owned more than 20 lip gloss and lipsticks.
As a matter of fact, lip gloss and lipsticks became widely popular among female population after the rise of black and white movies in Hollywood. So also, 80 percent of American women regularly wear lipstick and over 25 percent won’t leave house without wearing it.
Despite the fact that the lip gloss production business appears to be somewhat saturated in the United States of America, there is a positive outlook for the industry especially when it comes to leveraging on the changing trends in technology and beauty cum fashion. Entrepreneurs are encouraged to go into the business because of the vast opportunities that are available in the industry.
One of the major factors that encourage aspiring entrepreneurs to venture into lip gloss production business is the fact that there are readily available markets for the products. Despite the fact that there are stiff competitions amongst lip gloss manufacturing companies, if you are able to carve a niche for yourself, it won’t be too difficult for people to accept your products.
The lip gloss line production business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale selling your products within your city or state or you can choose to start on a large scale with your products spread across your country.
Kiss Daniela® Lip Gloss Production Line, LLC is a licensed lip gloss production company that will be located in an industrial area in Lexington, Kentucky. 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 terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.
We are in the cosmetic & beauty care manufacturing industry to produce lipstick, lip gloss, lip stains, lip liner and lip balm et al. 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 products the opportunity to be part of our success story.
We are aware that there are several lip gloss lines scattered around the United States, 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.
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 Lexington – Kentucky and the United States of America.
Much more than producing quality and safe lip gloss and related 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.
Kiss Daniela® Lip Gloss Production Line, LLC 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). We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Kiss Daniela® Lip Gloss Production Line, LLC is owned by Daniella Murphy. Mrs. Daniella Murphy who is the Chief Executive Officer of the Company is a graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA) from Stanford College. She has over 12 years’ experience working in related industry as a senior manager prior to starting Kiss Daniela® Lip Gloss Production Line, LLC.
Our Product Offerings
Kiss Daniela® Lip Gloss Production Line, LLC is going to run a standard and licensed lip gloss production company whose products will not only be sold in Lexington – Kentucky 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;
- Lipstick, lip gloss, lip stains, lip liner and lip balm et al
Our Mission and Vision Statement
- Our vision is to establish standard lip gloss production company whose products will not only be sold in Lexington – Kentucky, but also throughout the United States of America and Canada.
- Our mission is to establish a standard and world class lip gloss line 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 lip gloss brands in the United States of America and Canada.
Our Business Structure
Kiss Daniela® Lip Gloss Production Line, LLC is established with the aim of competing favorably with other leading brands in the industry. This is why we will ensure that we put the right structures 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.
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 five 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
- Accountants / Cashiers
- Distribution Truck Drivers
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
- 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
- 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 lip gloss and related products that are to be produced
- Map out strategies 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.
- 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 such as (Color pigments, oils, Castor oil, waxes (beeswax, candelilla wax, or camauba, red fluorescent dye, solvent, antioxidant and emollients) 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
- 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
- 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
- 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 manager
Production Workers/Machine Operators:
- Responsible for operating equipment and machines such as blending, mixing and compounding machine, molding machine, and packaging, labeling and sealing machines
- Responsible for preparing, blending, compounding, packaging and labelling of lip gloss and related products
Distribution Truck Drivers
- Assist in loading and unloading lip gloss and related 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.
- Transport finished goods and raw materials 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
We are quite aware that there are several lip gloss production companies in the United States of America 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 equipped to confront our threats.
Kiss Daniela® Lip Gloss Production Line, LLC employed the services of an expert HR and Business Analyst with bias in startup businesses 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 Kiss Daniela® Lip Gloss Production Line, LLC;
Part of what is going to count as positives for Kiss Daniela® Lip Gloss Production Line, LLC 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 lip gloss and related 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 lip gloss 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 Estee Lauder, Mary Kay and L’Oreal USA, Inc. et al are already determining the direction of the market both in the United States and in the global market.
The opportunities available to lip gloss manufacturing companies are enormous. This is due to the fact that 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 and also to create our own new market. We know that it is going to require 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 lip gloss production company or a cosmetics and beauty care manufacturing company that also manufacture lip gloss in same location where ours is located.
- Market Trends
If you are conversant with the existing trend in the cosmetic & beauty care industry, you will quite agree that despite the fact that there are competitions in different stages of the industry. Most lip gloss production companies 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 lip gloss and related products. The truth is that people all over the world are looking for lip gloss and related products that contain less chemical hence the increase in demand for herbal beauty care products.
- Our Target Market
When it comes to selling lip gloss and related 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 reside 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 lip gloss and related products to the following groups of people;
- Cosmetic and beauty care retailers
- Beauty salons and spas
- Makeup artists
- All the female and male in and around our target market location
A close study of the cosmetic and beauty care products manufacturing 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 stiff competition and we are prepared to compete favorably in the industry.
Part of what is going to count as competitive advantage for Kiss Daniela® Lip Gloss Production Line, LLC is the vast experience of our management team. So also, the wide varieties of lip gloss and related 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 us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY
- Sources of Income
Kiss Daniela® Lip Gloss Production Line, LLC 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 ensure that we do all it takes to sell our products to a wide range of customers. Kiss Daniela® Lip Gloss Production Line, LLC will generate income by selling the following products;
- Lipstick, lip gloss, lip stains, lip liner and lip balm et al
One thing is certain when it comes to lip gloss line 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.
We are well positioned to take on the available market in Lexington – Kentucky and every city where our lip gloss and related 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 months of operation.
We have been able to examine the cosmetic and beauty care products manufacturing industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Kiss Daniela® Lip Gloss Production Line, LLC, it is based on the location of our business and other factors as it relates to startups 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 was 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 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 Kiss Daniela® Lip Gloss Production Line, LLC and also the kind of lip gloss and related products we produce, we conduct a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target location. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.
We hired experts who have good understanding of the 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 Lexington – Kentucky. In summary, Kiss Daniela® Lip Gloss Production Line, LLC will adopt the following sales and marketing approach to sell our products;
- Introduce our lip gloss and related products brand by sending introductory letters to merchants, retailers, makeup artists, beauty salons and spas and other stakeholders in Lexington – Kentucky and other cities both in the United States of America.
- 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 lip gloss and related product brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
Publicity and Advertising Strategy
Despite the fact that our lip gloss production plant is a standard one, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Kiss Daniela® Lip Gloss Production Line, LLC.
Kiss Daniela® Lip Gloss Production Line, LLC has a long – term plan of distributing our products in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Lexington – Kentucky before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Kiss Daniela® Lip Gloss Production Line, LLC;
- 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 lip gloss and related product brand
- Install our Billboards in strategic locations all around major cities in the United States of America
- 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.
Our Pricing Strategy
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 lipstick, lip gloss, lip stains, lip liner and lip balm et al.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the market. 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 lip gloss brand.
- Payment Options
The payment policy adopted by Kiss Daniela® Lip Gloss Production Line, LLC 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 Kiss Daniela® Lip Gloss Production Line, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our lip gloss and related products without any stress on their part.
Startup Expenditure (Budget)
When it comes to starting a makeup production company, the major areas that you should look towards spending the bulk of your cash is in the purchase of standard chemical mixing machines, distribution trucks and of course renting or leasing a well-located facility large enough fit into the design you have in mind.
You are also expected to pay your employees, purchase of raw materials, maintain your trucks etc. These are the key areas where we will spend our startup 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 Kiss Daniela® Lip Gloss Production Line, LLC 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 lip gloss line 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 (Color pigments, oils, Castor oil, waxes (beeswax, candelilla wax, or camauba, red fluorescent dye, solvent, antioxidant and emollients) 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 $500,000 to successfully set up our lip gloss line products production plant in Lexington – Kentucky.
Generating Funds/Startup Capital for Kiss Daniela® Lip Gloss Production Line, LLC
Kiss Daniela® Lip Gloss Production Line, LLC is owned and financed by Daniella Murphy. She has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Kiss Daniela® Lip Gloss Production Line, LLC is to build a business that will survive off its own cash flow without 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 lip gloss and related products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Kiss Daniela® Lip Gloss Production Line, LLC 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 lip gloss line 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
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed equipment and machines such as blending, mixing and compounding machine, molding machine (tubes), 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
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress