Business Plan 2022 New
Business Plan 2022 New
This plan is to set up a cosmetic shop in the name of " Bare Cosmetics Enterprise ", which will
be located in Easy View Arcade Garage street Mbarara. The cosmetic shop will be a sole
proprietorship owned by Akampurira Brian. I will use startup capital of 52,380,000 Uganda
shillings. UGX 34,380,000 will be owners’ equity and the remaining UGX 18,000,000 will be
a bank loan which will be secured from centenary bank at 10% interest rate. The key personnel
at the cosmetic Enterprise will include Senior manager, buying inputs and overall supervisory
work, operations and production staff, sales and marketing staff, skin therapy and hairdressing
staff, record keeping and accounting, stock control and direct selling staff.
The key objective of the cosmetic shop will be to provide fresh quality cosmetics to our clients
to enable them improve their general skin beauty, to obtain maximum customer satisfaction
through continued quality production, to obtain continuous production and supply of our
products to the customers, to create customer loyalty to our products such that they become
well pronounced in the customer minds.
To achieve our objective, the cosmetic shop will employ strategies such as: Offering quality,
body skin lotions, oils and herbal cosmetics that help fight the skin diseases made from fresh
fruit and vegetable which are nutritious through adequate research and proper mixture of the
lotions, oils and herbal ointments to meet the standard skin contents and characteristics of
customers in the market through advertisement by use of sign posts, direct selling and radio
stations, offering special incentive to our regular clients, offering our cosmetics at relatively
lower prices for market penetration, creating a conducive environment for our clients,
employing people who understand the meaning of customer care and meaning of quality by
giving them samples for use as a way of expanding our markets especially among the young
children, youth and women. All this encompasses our strategies that include, communication
strategy, supplier relationship strategy, marketing strategy, competitive strategy and human
resource strategy.
The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health
skin booting cosmetics product’
Our mission will be, dedicated at improving the skin health and body look and appearance of
our client. "We seek to become the recognized leader in our targeted local and international
market for carrying a diverse line of in demand cosmetics including perfumes, makeup, and
other accessories that will have a competitive edge towards customer satisfaction and retention
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at attractive prices. Our major customers will be corporate employees, students, market
vendors, tourists and retailers who will be consuming a range of our products including;
Perfumes 1st class, Lemon body lotion, Hair relaxer cream, Avocadoes body cream smoother
and Hair glow. Our forms/ ways of distribution will include, through Retailers, distributors and
wholesalers who will buy and sell in bulk to our final customers which we cannot sell to directly
we shall also sell directly to the customers because we have a high customer traffic at our main
outlet in Mbarara. We shall as well be using a van that will be leased to distribute to our
customers who order in large quantities.
In terms of our legal responsibilities, the following taxes apply to our business, sales tax,
employees’ income tax, national social security fund and Mbarara Municipal Council Tax and
other licenses like trading license, and Uganda National Bureau of Standards license. We shall
as well need to the insurance for our business and also carry out other social responsibilities
like corporate social responsibility, being environmentally friendly, and ensuring cleanliness
of Mbarara town. Our products are costed and priced after comparison with our major
competitor’s prices and costing information acquired through market research. We have as well
carried out cash flow estimates to ensure that our business does not run out of cash.
Our startup capital has been allocated to what we intend to start our business with that is renting
building for two months, buying machines for mixing the inputs, Machines, leasing van, buying
furniture and fittings, massage equipment, cloths and uniforms and other necessary things to
start with including the employee salaries for the first two months.
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Chapter 1
BUSINESS DESCRIPTION
Bare Cosmetics Enterprise will provide different kinds of cosmetic products ranging from body
lotion to hair relaxers with potentials of using local fruits, both rare and common fruits as key
primary ingredients in the production of body oils and lotions. This will be intended to improve
the general skin health as well as boosting the beauty skin of our clients especially ladies.
Among the fruits we will use to extract include grapes, Chew cumber, palm fruits, avocadoes,
lemons, oranges, among others to produce a body lotion that moisturizes and smoothens the
skin for healthy attractive look of the boy and hair.
Our business will also provide moisturizing creams, body lotions, hair lotions of various types
and varieties to our esteemed customers. Our product will be offered to the young, the youth
and the old, who will need to improve their general health and skin beauty.
We will also offer the cosmetic products to our esteemed customers while providing
consultancy advice inform of skills for mixing and using the oils for their own benefit.
We will provide free consultancy services about lotion use, making and maintenance and caring
for the skin especially mostly by the ladies and young girls who our major customers and advise
them on maintaining a healthy balanced diet which include fruits and vegetables.
Other businesses that deal in cosmetics, retail shops, supermarkets all over the country, in
foreign countries in East Africa like Kenya, Rwanda, Tanzania, and Burundi and other
customers will be buying from our company directly and from our mobile distributors and they
will be both the young children, men and mostly women.
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Distribute to our national and international distribution centers, supermarkets, retail outlets, our
agents all over the countries in East African regions and some customers will buy directly from
our company main outlet in Mbarara.
1.6. The business will satisfy the following needs of the customers
Bare cosmetics will offer reliable cosmetics, lotions, and jerry’s intended to improve the
general skin health as well as boosting the beauty skin of our clients especially ladies, skin
treatment, cure skin rashes, and ensure all time beauty of our clients.
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Chapter 2
MISSION AND VISION
The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh
and health skin booting cosmetics product’
It will be, dedicated at improving the skin health and body look and appearance of our
client. "We seek to become the recognized leader in our targeted local and international market
for carrying a diverse line of in demand cosmetics including perfumes, makeup, and other
accessories that will have a competitive edge towards customer satisfaction and retention at
attractive prices.
2.3 Goals
2.4 Objectives
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Chapter 3
Our business will also provide moisturizing creams, body lotions, hair lotions of various types
and varieties to our esteemed customers. Our product will be offered to the young, the youth
and the old, who will need to improve their general health and skin beauty.
3.2 Services
We will also offer the cosmetic products to our esteemed customers while providing
consultancy advice inform of skills for mixing and using the oils for their own benefit.
We will provide free consultancy services about lotion use, making and maintenance and caring
for the skin especially mostly by the ladies and young girls who our major customers and advise
them on maintaining a healthy balanced diet which include fruits and vegetables.
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Chapter 4
MARKET RESEARCH AND ANALYSIS
Bare Cosmetics Enterprise intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. This will be achieved
through market research on our customers, competitors, competitor suppliers, their products
and their pricing.
4.2. Competitors
Our major competitors are KK shop, Dan cosmetics and Baby Face Organic that sell the
same cosmetics. Below is the analysis of our major competitors’ strength and weaknesses.
name
Dan cosmetics ∙ Has many ∙ Limited financial resources for startup. ∙ Lack
customers who buy of own premises to capitalize the concentrate
in bulk all activities in one place.
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∙ Strategic location
∙ Creative and
innovative
management
I used the information gathered from the potential customers and came up with the
following information
MARKET RESEARCH
Customers customers
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Perfumes 1st Corporate employees they Low quality perfumes
class need unique scent that that are not unique
Is packed in luxurious
Does not always have
containers and can last long
when used. knowledge of the latest
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Chapter 5
MARKETING PLAN
Bare Cosmetics Enterprise intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. This will be achieved
through market research on our customers, competitors, competitor suppliers, their products
and their pricing.
We will offer free consultancy services to our clients, free cold water, and warm water for
washing our hands. We will employ people who are easily accessible, customer oriented,
efficient and effective. We will provide customized services like skin therapy and hair dressing
to our most esteemed customers during the weekends when we are not very busy so as to meet
their demands and needs by being agile.
5.2 PRICE
The different sizes of our products will be charged different prices and my basis of pricing
will be based on the total costs incurred, competitors’ prices and how much my customers are
willing to pay.
I have studied the prices of Baby Face Organic who are my major competitor and I think
that selling at lower prices will be one of the most important ways of competing them. A low
price is important especially for students, market vendors and retailers.
I know that customers are willing to pay for my products in different sizes and shapes. I
have studied the costs of production, distribution and marketing for each product that is for
Perfumes 1st class all sizes averagely UGX 4,500, Lemon body lotion all sizes averagely UGX
4,000, Hair relaxer cream all sizes averagely UGX 3,500, Avocadoes body cream smoother
all sizes averagely UGX 45,00 and hair glow UGX 4,000. With these prices in mind, I will fill
in the price section of the business plan.
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Products, services or range of products offered
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Reason for Relatively Low Relatively High price is Relatively
setting this high price price low price in relation to low price will
price will help will will ensure a the high quality ensure a high
us recover enable us high demand of the products demand from
the get a wide from our produced. our
costs market intermediaries
intermediaries
incurred from the
who can sale who can sale at
in low
at a profit a profit
production income
n.
earners
and
the
student s.
customers
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Credit will vendors No credit Vendors Vendors and Vendors
be given to will be and retailors retailors
retailors
the followin given
g
customers
5.3 PLACE
Our location is in Mbarara, Easy View Arcade, Garage Street. The location is very good
since they a lot of hair dressers in this arcade hence full of women who potential customers for
the cosmetic products because they want to look good and. The place is chosen due to a boom
of commercial activities, an expected client base from students, tourists, corporate
women employees, and the large population is women as compared to men. The cosmetic shop
will have adequate lighting.
Location.
we plan to rent a place in Mbarara, Easy View Arcade, Garage Street. It is located opposite
Agi Motel near bus park garage street.
It is ideal because there is a high customer traffic Enough packing space for the clients/
individual customers. Clean environment and closeness to the main road that is Mbarara-
Masaka road.
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Retailers, distributors and wholesalers, will buy and sell in bulk to our final customers which
we cannot sell to directly
Individuals, will be used because we have a high customer traffic and so we shall sell to them
directly at our main outlet in Mbarara.
Distributors, will help to deliver our products to all our customers all over the country
and even outside countries in East Africa in the right time and place.
5.4 PROMOTION
We intend to invest heavily in advertisement of our products through the use of signposts,
face book, use of radios such as; Galaxy, Vision radio, which have a wider coverage. We also
intend to use a highly skilled marketing manager to market our products; for example; in
Kampala town universities, offices and other local areas around. We intend to also visit
personally our general stores and major wholesalers of our products and use other few methods
of promotion.
⮚ Communicate to the potential customers about where our products can be found.
⮚ Create a good initial image of our products in the society and our potential customers.
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CHAPTER 6
OPERATIONS
6.1 Form of Business operation
⮚ A Sole proprietorship
Description of skills:
⮚ Motivational skills
Relevant experience
⮚ Experienced with mixing appropriate chemicals and natural fruits in making the cosmetics
and perfumes acquired from the three years working with Baby Face Organic.
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⮚ Experience in managing business that is a retail shop already owned in previous years.
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CHAPTER 7
ENTREPRENEURIAL TEAM AND ORGANIZATIONAL STRUCTURE
7.1 STAFF
I do not know much about running my own business but I plan to work hard and study to
learn all in need to know. According to my staff plan, I will be responsible for buying inputs
and assume the senior management role.
The business will be small so I will need more few employees to assist in some functions
as follows.
The operations staff will be responsible for manufacturing and mixing the inputs to produce
the cosmetics and all our products and will include three employees with the relative skills as
will be described and one of the three will assume the role of being a supervisor of production
and operations.
Sales and marketing. I will need one employee who will be responsible for marketing
the products and selling at our main out let in Mbarara to our direct customers and will be
Two more employees responsible for offering additional services to our customers that is
skin therapy and hair dressing.
Two more family members will be employed and will assume the roles of stock control,
and selling to the market vendors, retailers and distributors and record keeping role
respectively.
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Operations and Skills in mixing different Three Each
production staff inputs and making fulltime employees UGX
perfumes and cosmetic
350000
products
Sales and marketing Skills in customer care and One fulltime UGX
marketing and sales 400000
employee
distributors
There are few Entrepreneurial team which involve Strategies. This will include the
communication strategy, marketing strategy, supplier relationship strategy, promotion
strategy, Human resource management strategy and competitive strategy.
One of the most important aspects of a successful launch is a positive publicity for our
cosmetics products. We will develop awareness campaigns to promote our product through
several avenues. Our management team will fiercely have pursued positive perception through
societal endorsement promoting the benefits of our product by actively seeking local news and
media coverage to help on awareness.
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Position of the business in the heart of Mbarara and the whole of Uganda and also being near
the high market area makes the product easily accessible by our customers. An aggressive
advertising campaign will be undertaken so that we create much awareness of our product than
our competitors through our highly skilled management team and employees that will be highly
in contact with our customers.
Bare cosmetics Enterprises will start up with its experienced members in various fields that
are useful in the business to form competent team of trustworthy staff for efficiency and
effective operations and goal oriented. Provision of favorable working conditions to maintain
a high degree of personal development and satisfaction of both employees and employers and
ensuring that our employees are constantly trained where need arises.
Briox Cosmetics Enterprises will ensure a close working relationship with our suppliers
and where necessary undertake supplier development programmes that is providing
improved varieties of agricultural inputs for example grapes, Chew cumber, palm fruits,
avocadoes and lemons and tools that will ensure constant supply of our core inputs.
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Chapter 8
FINANCIAL PROJECTIONS
8.1 FINANCIAL PLANNING
We shall follow the following steps to plan and monitor the financial situation of Bare
cosmetics enterprise.
A costs and sales plan shows the sales, costs and profits my business is likely to have each
month and it is made annually.
I have forecasted my sales and costs for the first year in business and I have been helped by
my productions team to develop the forecasts.
Details Jan Feb Ma Apr Ma June July Aug Sept Oct Nov Dec
r . y
Sales 200 250 400 400 700 1000 1000 1000 1000 1500 2000 2000
0 0 0 0 0 0 0 0 0 0 0 0
Direct 100 150 200 200 300 4200 4200 4200 4200 4800 5000 5000
0 0 0 0 0
material c
osts
Direct 200 200 200 200 200 2000 2000 2000 2000 2000 2000 2000
0 0 0 0 0
labour
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costs
Indirect 2500 1500 1500 1500 150 150 150 150 150 150 1500 1500
cost 0 0 0 0 0 0
Net (350 (250 (150 (150 500 230 230 230 230 670 1150 1150
0) 0) 0) 0) 0 0 0 0 0 0 0
profit
To make sure that I do not run out of cash, when I start up by cosmetics enterprise, I make a
cash flow plan for the first 12 months and below is a sample for the first seven months.
CASH FLOW Jan Feb March April may June July Aug.
PLAN (000)
Cash at the start of 7300 23700 19700 12400 11100 7800 25000 26500
the month
Cash in from sales 2000 2500 4000 4000 7000 10000 10000 10000
Total cash in 16300 31200 23700 16400 18100 17800 35000 36500
Cash out for direct 1000 1500 2000 2000 3000 4200 4200 4200
material costs
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Cash out for direct 2000 2000 2000 2000 2000 2000 2000 2000
labour costs
Cash out for indirect 2500 1500 1500 1500 1500 1500 1500 1500
costs
Total cash out 13700 5000 5650 5650 6650 7850 7850 7850
Cash at the end of 2600 26200 18050 10750 11450 9950 27150 28650
the month
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8.4 Capital required for this startup.
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Chapter 9
CONCLUSION
Beauty and beauty products have always found a favorable audience and continue to be popular
and sought after products, thus making beauty and cosmetic products a serious business
opportunity that is witnessing a steady and consistent growth. This growth and demand for
cosmetic products is seen more so now especially in the times of social media platforms, video
blogs and Instagram, when every new cosmetic product is tried, tested, promoted and
advertised via several influencers and celebrities.
Cosmetics refers to products and solutions used for skincare, nails, haircare, complexion, which
take care of them and help enhance the skin, hair, nails, complexion, thus further resulting in
an overall enhancement of one’s appearance.
The demand for cosmetic products is increasing from different sections of the population. So,
if you are planning to start this business then it will give you a high profit and there is a huge
scope for growth if you worked in a planned way and follow the steps mentioned below.
While starting this business you don’t need any technical skills to run it. At the initial stage of
your business you are not required to invest a huge amount in it and gradually you can increase
the investment in your business.
Without keeping up with the trends you cannot sell your products to your customers. If you
want to give a good competition to your competitors then you must provide more latest
products than your competitors.
You can be up to date with the latest trends in cosmetic products by reading different fashion
articles. You can even subscribe to different well-known websites so that you can stay updated
with the latest products and can provide those products to your customers.
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APPENDIX
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BILBLIOGRAPHY
https://www.99businessideas.com/beauty-business-ideas/
https://zocket.com/blog/start/cosmetic-business-plan/
https://startupjungle.com/how-to-cosmetics-business/
https://www.zenbusiness.com/best-new-business-ideas-in-the-beauty-industry/
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