Are you writing a makeup line business plan? If YES, here is a sample makeup line financial projection, sales cost, profit & loss statement. 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.
Our Startup Expenditure (Budget)
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 makeup line production company; it might differ in other countries due to the value of their money.
When it comes to starting, a makeup line production company the major areas that you 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.
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 Clarisse Brown® Makeup 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.
- 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 $105,600.
- Cost for construction of a standard makeup 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) – $40,000
- The cost for Start-up inventory (raw materials, and packaging materials et al) – $80,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- 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
TOTAL EXPENSES: $440,980
We would need an estimate of $500,000 to successfully set up our makeup products production plant in Jackson – Mississippi. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Table of Content
Generating Funds / Startup Capital for Clarisse Brown® Makeup Line, LLC
Clarisse Brown® Makeup Line, LLC is a family business that is owned and financed by Clarisse Brown and her immediate family members. We do not intend to welcome any external business partner which is why we have 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 $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 document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Sources of Income
Clarisse Brown® Makeup 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 go all the way to ensure that we do all it takes to sell a wide range of makeup products to a wide range of customers.
Clarisse Brown® Makeup Line, LLC will generate income by selling the following products;
- Face powders, face cleanser, eye shadows, lipsticks and mascaras
- Shaving cream, shaving preparations and aftershave products
- Sunscreen products
- Bath salts and talcum powders
One thing is certain when it comes to makeup product manufacturing 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 Jackson – Mississippi and every city where our makeup 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 makeup / 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 Jackson – Mississippi.
Below is the sales projection for Clarisse Brown® Makeup Line, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale makeup products manufacturing company start – ups in the United States;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $550,000
- Third Fiscal Year-: $950,000
(Makeup kits) Face powders, face cleanser, eye shadows, lipsticks and mascaras
Make up brush set (high quality) will cost $10
- Selling 5,000 sets of brush will cost $50,000
Make up brush set (luxury) will cost $4
- Selling 5,000 sets of brush will cost $20,000
Cosmetic kit high cost effective eye shadow will cost $15
- selling 5,000 packs of eye shadow will cost $75,000
Face powder will cost $3
- Selling 5,000 face powder will cost $15,000
Face cleanser will cost $1
- Selling 5,000 face cleanser will cost $5,000
Eye pencil will cost $1
- Selling 5,000 eye pencils will cost $5,000
lipstick will cost $2
- Selling 5,000 lipsticks will cost $10,000
Mascara will cost $2
- selling 5,000 mascara will cost $10,000
Face bronzer will cost $3
- Selling 5,000 face bronzer will cost $15,000
Contour palet and highlighter will cost $3
- Selling 5,000 contour palet and highlighter will cost $15,000
Shaving cream, shaving preparations and aftershave products
A shaving cream will cost $4
- Selling 5,000 shaving creams will cost $20,000
After shaving product will cost $2
- Selling 5,000 after shaving product will cost $10,000
TOTAL INCOME : $250,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $40,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $40,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $40,000
- Equipment rental, repairs and maintenance – $5,000
- Office supplies (stationaries et al) – $1,000
- Restock (raw materials, and packaging materials et al) – $20,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $3,000
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.