Are you about starting a skincare production business? If YES, here is a complete sample skincare production business plan template & feasibility report you can use for FREE. Starting a production / manufacturing business is not same as starting a service based business; it is always more expensive and to a larger demanding to launch a production / manufacturing company.
The fact that you want your products to compete with similar products in the market place means that you would have followed due process and product testing et al before pushing your product to the marker. If you are certain that you have a winning formula when it comes to producing effective skincare products; products that has been tested and proven to meet the requirement for such products, then you should consider launching your own skincare line.
It is a business that is still pretty much open for investors to come and compete for the available market in the country you intend launching the business. Over and above, if you have decided to start a skincare production company, then you should make sure that you carry out thorough feasibility studies and also market survey.
This will enable you properly locate the business in a community or city with the right demography; a location that can readily accept your products. Below is a sample skincare production company business plan that will help you successfully launch your own business;
A Sample Skin Care Products Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Companies that operate in the Cosmeceutical Skincare Production industry, manufacture cosmeceuticals – that is cosmetics with pharmaceutical capabilities. Some of the most common products manufactured by players in this industry include wrinkle-reducing moisturizers, facial scrubs / cleanser and creams that even skin tone et al.
In the united states of America, no governing body formally defines cosmeceuticals. The term is for marketing purposes to define beauty care products that function primarily as cosmetics but also have additional pharmaceutical properties to cure, treat or prevent mild skin disorders or diseases.
For instance, a large number of these products function mainly as a facial wash or moisturizer, but also contain additives to clear acne or protect the skin from the sun’s harmful rays. The products from the Cosmeceutical Skincare Production industry are gaining demand as consumers increasingly desire multi-functioning beauty care products.
The Cosmeceutical Skincare Production Industry is a thriving sector of the economy of the United States of America and they generate a whooping sum of well over $6 billion annually from more than 245 registered and licensed cosmeceutical skincare production companies scattered all around the United States of America. The industry is responsible for the employment of well over 7,507 people.
Experts project the industry to grow at a 10.0 percent annual rate from 2011 to 2016. Unilever, Procter & Gamble and L’Oreal USA, Inc. have the lion share of the available market in the Cosmeceutical skincare production industry in the United States of America and in some other countries of the world.
Research shows that the Cosmeceutical Skincare Production industry is in the growth phase of its life cycle, though it is likely to enter the mature phase in the near future. Industry value added, a measure of the industry’s contribution to the overall economy, is forecast to grow at an average annual rate of 10.0 percent in within the next 5 years.
This rate is significantly slower than GDP growth, which is anticipated to increase at an average annual rate of 2.2 percent during the same period. While IVA growth slower than GDP growth is typically indicative of an industry in the mature or declining stage of its life cycle, the Cosmeceutical Skincare Production industry is still growing as it is still experiencing high rates of industry entrants and product development.
The bottom line is that; the Cosmeceutical Skincare Production industry is still very much open for new entrant; the competition within the industry is not as stiff as similar industry. If your product is good, it can gain fair share of the available market in any country or region you intend launching the business / skincare product.
2. Executive Summary
Stacie Roe® Skincare Line, LLC is a licensed and standard cosmeceutical skincare production company that will be located in an industrial area in Concord – New Hampshire. We have been able to secure a long term lease 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 production business we want to run and the facility is easily accessible and we are deliberate about that because we want to facilitate easy movement of raw materials (chemicals and packaging containers) and finished products (skincare products).
Stacie Roe® Skincare Line, LLC is in the cosmeceutical skincare production industry to produce standard and effective skincare products such as anti-aging topical treatment products, Sun care products, Acne treatment products, Dry skin care products, lip care products and other skin 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 cosmeceutical skin care products the opportunity to be part of the success story of our brand.
We are aware that there are several big scale and small scale cosmeceutical skincare production companies and cosmetic and beauty care product manufacturing companies 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 can easily accept our products and brand.
We ensured that our facility is easy to locate and we have mapped out plans to develop a far reaching distribution network for wholesalers of cosmeceutical skincare products all around Concord – New Hampshire and throughout the United States of America.
Much more than producing quality, effective and safe cosmeceutical skincare 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 purchase any of our product and also to become our loyal customers and ambassadors.
Stacie Roe® Skincare 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) 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.
Stacie Roe® Skincare Line, LLC is family business that will be owned by Stacie Roe and her immediate family members. Mrs. Stacie Roe who is the Chief Executive Officer of the Company is Graduate of Cosmetology and she holds a Master’s Degree in Business Management (MBA).
She has well over 12 years of experience working in related industry as a senior manager prior to starting Stacie Roe® Skincare Line, LLC. She will be working with a team of professionals to build the business and grow it to enviably height.
3. Our Products and Services
Stacie Roe® Skincare Line, LLC is going to run a standard and licensed cosmeceutical skincare production company whose products will not only be sold in Hartford – Connecticut but also throughout the United States of America and Canada.
We are in the cosmeceutical skincare production 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;
- Producing topical anti-aging cosmeceuticals
- Producing acne cosmeceuticals
- Producing sun care cosmeceuticals
- Producing dry skin cosmeceuticals
- Producing lip care cosmeceuticals
- Shaving cream, shaving preparations and aftershave products
- Face and body creams, beauty creams and lotions and hand cream or lotions
4. Our Mission and Vision Statement
- Our vision is to establish standard cosmeceutical skincare production Company whose products will be only be sold in Concord – New Hampshire, but also throughout the United States of America and Canada.
- Our mission is to establish a standard and world class cosmeceutical skin care production Company / brand 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 20 cosmeceutical skincare brands in the United States of America and Canada.
Stacie Roe® Skincare Line, LLC is a business that is established with the aim of competing favorably with other leading cosmeceutical skincare product 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 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
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.
- 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.
- Responsible for overseeing the smooth running of the cosmeceutical skincare production plant
- Part of the team that determines the quantity and quality of cosmeceutical skincare 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.
- Ensures that the plant meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- 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
- Oversees the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of raw materials 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
- 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
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluate new plans for expanding increase sales
- Documents all customer contact and information
- Represents 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
- Ensures 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
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
Production Workers / Machine Operators:
- Responsible for preparing, blending, compounding and packaging cosmeceutical skincare products
- Handles labeling of cosmeceutical skincare products
- Operates machines used in the manufacturing anti-aging topical treatment products, Sun care products, Acne treatment products, Dry skin care products, lip care products and other skin care products
- Assists in packaging and loading cosmeceutical skincare products into distribution trucks
Distribution Truck Drivers
- Assists in loading and unloading cosmeceutical skin care products
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists 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
- Complies 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 cosmeceutical skin care product manufacturing 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.
Stacie Roe® Skincare Line, LLC 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 Stacie Roe® Skincare Line, LLC;
Part of what is going to count as positives for Stacie Roe® Skincare 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 cosmeceutical skin 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 cosmeceutical skincare 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 Unilever, Procter & Gamble 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 cosmeceutical skin care 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 cosmeceutical skincare products on a daily basis.
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 cosmeceutical skin 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 cosmeceutical skincare production company or cosmetics and beauty care product manufacturing company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the existing trend in the cosmeceutical skin care production industry or even 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 Unilever, Procter & Gamble, Estee Lauder, Mary Kay and L’Oreal USA, Inc. and also competitions amongst smaller and medium scale cosmeceutical skincare product manufacturing companies. Most cosmeceutical skin care products manufacturing 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 cosmeceutical skin care products. The truth is that people all over the world are looking for cosmeceutical skin care products that contain less chemical hence the increase in demand for cosmeceutical skin care products that are produced from herbal raw materials.
Lastly, the cosmeceutical skincare production 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 cosmeceutical skin 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 wholesale distribution and to retail cosmeceutical skin care products to the following groups of people;
- Cosmetic Shops
- Corporate Executives
- Government Officials
- Business People
- Military Men and Women
- Sports Men and Women
- Everybody in our target market location
A close study of the cosmeceutical skincare production industry cum 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 stiffer competition and we are well prepared to compete favorably with other cosmeceutical skincare production companies cum cosmetic and beauty care product manufacturing companies in New Hampshire and throughout the United States and Canada.
Stacie Roe® Skincare Line, LLC is launching a standard cosmetic and beauty care product brand that will indeed become the preferred choice of residence of Hartford – Connecticut and every city where our cosmetic and beauty care product will be retailed.
Part of what is going to count as competitive advantage for Stacie Roe® Skincare 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 cosmeceutical skincare products that we produce our large and far reaching 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 cosmeceutical skincare production companies) in the cosmeceutical skincare production 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
Stacie Roe® Skincare Line, LLC is established with the aim of maximizing profits in the cosmeceutical production 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 cosmeceutical skin care products to a wide range of customers.
Stacie Roe® Skincare Line, LLC will generate income by selling the following products;
- Topical anti-aging cosmeceuticals
- Acne cosmeceuticals
- Sun care cosmeceuticals
- Dry skin cosmeceuticals
- Lip care cosmeceuticals
- Shaving cream, shaving preparations and aftershave products
- Face and body creams, beauty creams and lotions and hand cream or lotions
10. Sales Forecast
One thing is assured when it comes to cosmeceutical skin care production company, 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 Concord – New Hampshire and every city where our cosmeceutical skin care products 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 cosmeceutical skincare production industry cum 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 Concord – New Hampshire.
Below is the sales projection for Stacie Roe® Skincare Line, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale cosmeceutical skincare products and cosmetic and beauty care products manufacturing company start – ups in the United States;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $550,000
- Third Fiscal Year-: $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 Stacie Roe® Skincare Line, LLC and also the kind of cosmeceutical skin 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 cosmeceutical skincare brands in the United States of America and Canada.
We hired experts who have good understanding of the cosmeceutical skin care production cum 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 Concord – New Hampshire 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 cosmeceutical skincare 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, Stacie Roe® Skincare Line, LLC will adopt the following sales and marketing approach to sell our cosmeceutical skincare products;
- Introduce our cosmeceutical skin care products brand by sending introductory letters to residence, merchants, retailers and other stakeholders in Concord – New Hampshire and other cities both in the United States of America and Canada
- Open our cosmeceutical skin care production company with a party so as to capture the attention of residence who are our first targets
- Engage in road show 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 cosmeceutical skin care product brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
In spite of the fact that our cosmeceutical skincare production plant is a standard one with a wide range of cosmeceutical skin care products that in few years from now will favorably compete with other leading brands in the industry like Unilever, Procter & Gamble, Estee Lauder, Mary Kay and L’Oreal USA, Inc., we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Yvonne Stallone® Cosmetic Line, LLC.
Stacie Roe® Skincare Line, LLC has a long term plan of distributing our cosmeceutical skin 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 first in Concord – New Hampshire 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 Stacie Roe® Skincare 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 cosmeceutical skin care product brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in road show 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 skin care products cum cosmetics and beauty care product, there are two sides to the coin. We are aware of the pricing trend in the cosmeceutical skincare production industry cum cosmetic and beauty care products manufacturing industry which is why we have decided to produce various sizes of cosmeceutical skin care products.
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 prices of various cosmeceutical skin care product 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 cosmetic and beauty care product brands.
- Payment Options
The payment policy adopted by Stacie Roe® Skincare 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 Stacie Roe® Skincare Line, LLC 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 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)
Starting a standard cosmeceutical skincare production company is indeed a capital intensive business. This is so because the amount required in setting up a cosmeceutical skin care production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility and also in purchasing mixing, blending, compounding and packaging equipment.
Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, purchasing raw materials, paying of your employees and utility bills. 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) – $1,300.
- Marketing promotion expenses for the grand opening of Stacie Roe® Skincare 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.
- The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard cosmeceutical skin care 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 (mixing, blending, compounding and packaging equipment, 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
We would need an estimate of $500,000 to successfully set up our cosmeceutical skincare products production plant in Concord – New Hampshire. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funds / Startup Capital for Stacie Roe® Skincare Line, LLC
Stacie Roe® Skincare Line, LLC is a family business that is owned and financed by Stacie Roe 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 $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.
14. Sustainability and Expansion Strategy
The future of any 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 Stacie Roe® Skincare Line, LLC 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 cosmeceutical skin 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.
Stacie Roe® Skincare 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 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 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.
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 construction of standard cosmeceutical skin care 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 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
Frequently Asked Questions
How Can One Start Manufacturing Skin Care Products?
- Conduct your feasibility studies
- Learn everything you need to learn about skin care products
- Choose a name and register the business
- Draft a detailed Business Plan
- Secure the needed licenses and permits
- Apply for an EIN (Employer Identification Number)/Federal Tax ID Number.
- Open a corporate bank account
- Lease and equip a production facility
- Acquire the needed raw materials and packing materials
- Hire employees
- Market and promote your products
What Advice Do You Have For Someone Starting A Skincare Line?
My advice for someone who want to start a skincare line is that they must make sure they create products that solve problems. Pay attention to details when it comes to branding and of course, from day one work towards carving a niche for the business.
What Are The Requirements For Starting A Natural Skincare Business?
- Your business license and permits
- Your winning formular
- Raw materials and packing materials
- Your approved facility
- Your equipment and machines
- Your branding and marketing strategy document
How Much Does It Cost To Start A Skincare Line?
There are a lot of factors that will influence the cost of starting a skincare line and it could range from as little as $10,000 to over $500,000.
How Long Does It Take To Make A Skincare Line?
It takes no less than 12 weeks to develop a skincare product. However, most skincare lines require much longer for research, development, testing, and go-to-market. Skincare products require comprehensive testing which takes time.
Can You Start A Skincare Brand Without Any Degree?
Sure, you can start a skincare brand without any degree. What matters most is your creativity and business acumen not a degree. But obtaining a Degree will be an added advantage for you.
How Much Money Do You Need To Start A Skin Care Business?
The amount you would need to start a skin care business depends on the kind of business you have in mind. If it is at the level of Mom and Pop, you can spend as little as $2,000 to get it started, but if you want to start a standard skin care business, then you should be ready to spend over $500,000.
What Are The Medical Conditions That Affect The Skin?
There are several medical conditions that affects the skin and here are some of them;
- Seborrheic Dermatitis
- Fifth Disease
- Rashes from Bacterial or Fungal Infections
- Rashes from Allergic Reactions
What Are The Licenses Required To Manufacture Cosmetics?
- General business license
- Chemical handler’s license
- FDA premarket approval
- Zoning permit or waiver
- Manufacturing license
What Can You Do When Your Skin Gets Irritated?
- Apply a cold, wet cloth or ice pack to the skin that itches
- Take an oatmeal bath
- Moisturize your skin
- Apply topical anesthetics that contain pramoxine
- Apply cooling agents, such as menthol or calamine
Can You Start A Skincare Line With No Money?
In actual sense, you can’t start your own skincare line without money unless you want to partner with an investor that will provide the fund and you start and run the business.
Do You Have To Attend A Cosmetology Or Esthetician School Before You Can Start A Skincare Line?
No, you don’t have to attend a cosmetology or esthetician school before you can start a skincare line as long as you have the needed experience and business exposure. But on the other hand, attending a cosmetology or esthetician school can give you leverage if you start your own skincare line.
Does Face Mist Actually Do Anything For Your Skin?
Not really, but it is important to point that facial mists can add beneficial effects to your skin care regimen. The benefits can include added hydration, improved absorption of moisturizer, smoother application of makeup leading to more radiant skin.
Can People With Sensitive Skin Be In The Retinoid Club Too?
Some people with sensitive skin don’t tolerate retinoids during dry winter months, but find they can them use during more humid summer months. Those with sensitive or easily irritated skin should approach retinol use with caution. First-time retinol users have reported irritation, including redness, dryness, and peeling.
Do You Need A License To Sell Homemade Cosmetics?
No, you don’t need a license to sell homemade cosmetics. This is because FDA does not license cosmetics firms. However, state or local authorities may require licensing or have other requirements you need to know about. You will need to contact your state or local authorities directly.
What is the Process of Developing a New Product?
New product development (NPD) is a process of taking a product or service from conception to market. The process sets out a series of stages that new products typically go through, beginning with ideation and concept generation, and ending with the product’s introduction to the market.
Do Collagen Creams and Supplements Actually Do Anything?
Surprisingly enough, there is some research to suggest that oral collagen may improve skin appearance. According to at least three recent studies, taking collagen peptides orally is associated with improved skin hydration, elasticity, and wrinkling, as compared to placebos.
What Should You Know Before Starting A Skin Care Line, And How Can You Start It With Little Money Online?
- You should know the product that is in high demand
- You should know the licenses and permits needed
- You should know the needed marketing and branding tips that will help you win a fare share of the available market within your market space
- You should to know the demographic composition of people that would need your product and of course, how to reach out to them
- You should know how to source for your products
- You should know the right prices that will help you win over customers as a new entrant in the industry
What Licenses Do You Need To Start Selling Skincare Products Legally?
Generally, none, although it depends on where you live in the world. Some regulatory authorities may permit you to formulate at home but may want you to outsource manufacturing. You may also need a general business license to operate.
Is Starting A Skincare Brand A Good Idea In 2021?
Sure, starting a skincare brand is a good idea in 2021 and the reason is not farfetched. As long as there are people on the earth, skincare products will always be in demand and people would always want to try out new products.
What Are The Immediate Things You Need To Take Care Of To Set Up A Skincare Business?
- Your business licenses and permits
- Your production facility and equipment
- Your raw materials and packaging materials
- Your delivery vans
What do you call someone who makes Skincare Products?
A cosmetic chemist, also known as a cosmetic scientist or makeup chemist, develops and formulates skin care, personal care and color cosmetics for manufacturers. Cosmetic chemists need at least a bachelor’s degree but may find that a graduate degree is necessary for career advancement.
What Research Should You Do For Your Skincare Brand Beforehand?
- The required ingredients needed to come up with a winning formular
- The side effects or effectiveness of the ingredients needed to produce your products
- The market acceptance of your products
- The trends in the industry and what it will take to breakeven
What Are The Benefits Of Making Brochures For Your Business?
Brochures help capture the attention of potential customers, especially in the case of small and emerging businesses that are on a tight budget. They are both effective and pocket-friendly than product advertisements on magazines and newspapers, given the fact that prime space on print media is costly.
How Can You Get Retailers To Start Stocking Your Product?
- Master the margins
- Visit the store in person to make your pitch
- Bring samples of actual products, or at the very least, photographs
- Grasp the retailer’s competitive advantages in the marketplace
- Have a sell sheet
- Prioritize your packaging
- Show your marketing might
What Can Centella Asiatica Really Do For Red, Dry, Sensitive Skin?
A study conducted and published in the International Journal of Molecular Sciences in 2017, found that Centella asiatica was helpful at reducing inflammation in a mouse model of eczema (atopic dermatitis). That suggests that the fluid containing Centella asiatica was effective at improving skin hydration.
Centella Asiatica tones down inflammation on our skin and helps to calm them down. If you’re prone to redness and irritation, Centella Asiatica should be your go-to ingredient.
How Can You Attract And Retain Customers?
- Introduce your products and brand by sending introductory letters alongside your brochure to your target market
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business, so as to give your business an online presence
- Directly market your products
- Join local chambers of commerce and industries for business networking and industry trends and tips
- Provide discount days for your customers
- Advertise our business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word of mouth marketing (referrals)
What is the Best Prescription Cream for Psoriasis?
Calcitriol (Vectical) and Calcipotriene (Dovonex, Sorilux) containing topical ointment. These have proven to be effective for treating psoriasis, especially when combined with a topical corticosteroid cream. It’s best to use only limited amounts to avoid side effects.
What Skincare Brands Do Dermatologists Recommend?
- Aquaphor Ointment
- Colorescience Sunforgettable Brush-on Shield.
- Differin Gel
- ProactivMD Adapalene Gel 0.1%
- Skinfix Renewing Scrub
- SkinCeuticals C E Ferulic
- Cerave Moisturizing Cream
- Eltamd UV Clear Sunscreen
What Is The Best Skin Care Line For Over 50?
The best anti-aging skin care products for people in their 50s include;
- Olay Regenerist Fragrance-Free Regenerating Face Serum.
- CeraVe Vitamin C Serum with Hyaluronic Acid.
- Neutrogena Healthy Skin Radiant Booster Primer and Serum.
- COSRX Balancium Comfort Ceramide Cream.
- Tula 24-7 Moisture Hydrating Day and Night Cream
Do Skin Care Products Need FDA Approval?
Under the law, cosmetic products and ingredients do not need FDA premarket approval, with the exception of color additives.
What Are The Best Ingredients For Skin Care Products?
- Acai oil
- Alpha-lipoic acid
- Green tea extract
- Coenzyme Q10 (CoQ10)
What Ingredients Should I Avoid In Skincare?
Here are the top 10 Ingredients to Avoid in Makeup and Skincare Products;
- Artificial Fragrance/Parfum
- Sodium Lauryl Sulfate and Sodium Laureth Sulfate
- Polyethylene Glycol (PEG)
- Oxybenzone (and other chemical sunscreens)
What Natural Ingredients Are Used In Skin Care Products?
- Beta carotene
- Green tea extract
- Vitamin C
- Willow herb
- Witch hazel
Where Can I Sell My Skincare Products Online?
Is It Legal To Sell Homemade Skin Care Products?
It’s not against the law to manufacture cosmetics in your home. Keep in mind however, that it’s your responsibility to manufacture products in an environment that will not cause them to become adulterated. FDA does not have regulations specifying good manufacturing practices (GMP) for cosmetics.
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