Entrepreneurship and Business Plan for Nature's Bliss Organic Product Company

This report focuses on the business plan of organic products manufacturing company named Nature's Bliss. It includes the key components for the business concept, assessment of industry, market, organizational and financial feasibility, value chain and business model canvas in relationship to Nature's Bliss organic cosmetic business.

Entrepreneurship

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key components for the business concept..................................................................................3
Assessment of the industry, market, organizational and financial feasibility and their impact
on the Nature's Bliss organic product company..........................................................................4
The key components of the value chain and business model canvas in relationship to Nature's
bliss organic cosmetic business...................................................................................................8
Quantitative and qualitative models and concept explaining the potential risk that can be
managed....................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is the ability of an individual to start, develop and manage a business venture to
gain profit and growth by taking certain risk in the corporate industry. There are various concepts
such as product base, adopted strategy to marketing, target market, availability as well as the
This report focuses upon the business plan of organic products manufacturing company name
under “Nature’s Bliss”. The organizational, market assessment also aims to understand industrial
situation, market scope and parameters related to functional long term positioning. The
relationship of value chain model and the business model are studied to relate business proposal
with the real time situation. Moreover, the risk assessment study is also studied to understand the
type of strategy adopt for the establishment as well as for the expansion.
MAIN BODY
Key components for the business concept
Entrepreneurship is becoming trend worldwide and developing as well as marketing of
the organic skin care product line have found growing acceptance among individuals in the
market nowadays (Entrepreneurship., 2021). People are being aware of adverse harmful effect of
beauty products on the skin that causes the allergies, skin irritation as well as can cause cancer
type of severe issues on long term use (Bosma, Sanders and Stam, 2018). Moreover, people also
are adopting the eco-friendly sustainable products to save environment from these fully chemical
included skin care products. For the entrepreneurship of these organic beauty products, there are
various factors present that affect the start of the business of an entrepreneur are described as:
 Business proposal: The proposal behind the Nature's bliss organic beauty product is
basically includes the ideology to introduce new economical range of organic skin, hair
care and beauty product with minimum or no chemical substitutes. These organic product
will provide the benefit of make-up and the skin nourishment at the same time.
 Raw material: for the Nature's bliss organic skin care products, raw products are listed
as medicinal plants, herbs, botanical oils, kitchen ingredient such as turmeric, etc.
 Capital investment: The capital investment depends upon the technologies used in
product manufacturing, marketing cost to promote or sale of the organic products.

 Product and Services: Nature's bliss organic beauty products industries starts the
product list with basic purpose items such as cleanser, toner, moisturiser, creams, lotions
and on the big scale it can include face make-up and hair care products etc.
 Target customers: Target customers of a beauty products industries are ladies, youth,
make-up artists, person with the sensitive skin, person who have already tested the
chemical beauty products and had the adverse effect. These type of customers always
wants the organic products, that can make their skin better and flawless naturally.
 Marketing strategies : The strategies opted for the marketing of Nature's bliss organic
products can be digital marketing and the door to door marketing following the cost-
cutting fundamentals. In these cosmetic industries the main marketing being used is oral
marketing. Provide Testing samples of the product can boost the use of product sell.
 Location and involvements : This business can be operated form the home also, on the
basic scale this industry does not require the store or shops for selling in UK.
 Business Expansion scale: This industry have a huge market coverage all over the globe.
On the low scale, this business can be limit to the particular city or state, with the
increase in productivity as well as the selling and the profit margin, the expansion area
can be broadened up.
Assessment of the industry, market, organizational and financial feasibility and their impact on
the Nature's Bliss organic product company
Industrial Competition assessment:
For the assessment of other company in UK working in these industries can be understood by
using Porter's Five force. Porter's five force model is used for the external factor analysis of a
company (Bruijl, 2018). On assessing the Porter's five model on Nature's bliss company:
 Bargaining Power of buyer: In UK power of customers is always high because they can
make lower down their prices. In case of Nature's bliss the power of customer bargaining
is high. So, if the products of the Nature's bliss should be of good quality and effective
price then this can be minimised.
 Power of suppliers:

It refers to the power of suppliers i.e. with the existence of large number of suppliers the power
can be lower down. In case of Nature's bliss the power of supplier is low.
 Threat of substitute: Threat of the product substitution of Nature's bliss will be low if
the company will be having the economical organic product range with the valuing of its
products at lower price.
 Rivalry:
In case of UK market with the existence of large number of competitors the competitive rivalry
is high. As the demands of the organic beauty products are increasing along with raising of
competitors, rivalry is also increasing day by day. To sustain in the market Nature's bliss have to
make the good company image with its quality products.
 Threat of new entrants:
Threat for the new entrant are very high for the Nature's bliss as the company is new and it
requires a compliance of strict rules and regulation with respect to make entry in the market of
UK.
With Porter's fiver model it can be said that the market research as well as the external market
factors can have a huge impact on a new business.
Market assessment and its impact on the company:
Market feasibility of any business helps in identification of the Market analysis such as
competition, potential market etc (Oliveira and et. al., 2019). To assess a new business idea, this
can be done on the basis of 4P's Product, price, place and promotion.
 Product : In the organic range the products listed are as daily care, skin care, cosmetics
as well. These products will be made up of the natural as well as the organic substances.
 Price : The pricing of the organic products are chosen in the way that includes the
promotional charges in itself. These decided prices are identical with the other
competitive product prices.
 Place: This place tool defines the existing market of company. On following the ideology
the organic products are planned to sell offline as well as on the online stores. For the
online selling the marketing and the advertising will be done to attract the customer and
support the sales.

 Promotion: To attract the new customers, advertising of the organic product will be done
in the social media marketing manner so that customer will get to know all the advantage
of these newly launched organic products.
Organizational assessment and its impact on the company:
For the feasibility assessment of the organization (The Benefits of an Organizational
Assessment., 2021), there should be few terms included:
Management process and Resource sufficiency: According to this term, there must have a
complete idea about the management and resources required for the establishment of “Nature's
bliss” organic cosmetic company.
 Human resource management: For the start of Nature's Bliss, the minimum
requirement of the staff is 15, including 2 employees having knowledge of human
resource management.
 Location: In UK, Scotland have newer business opportunities in the cosmetic market, so
establishing the new unit there can be helpful in terms of services and resources.
 Equipment: All the laboratory setup such as Heat resistant bowls, measuring instruments
(PH scales, thermometers, sterilizers etc.) and necessary consumables (isopropyl alcohol,
mask etc.)requires for the setup of manufacturing unit.
 Infrastructure: For the manufacturing, a space of few rooms (one for the raw material,
one for the workforce, one for the manufacturing equipment and one the packaging of
new products) is required (Bocken and Short, 2020).
Financial feasibility and its impact on the business:
Financial Feasibility
 Profit and Loss Statement
It provides information about the company's income and expenses which results in net
profit and losses (Oncioiu, Calotă and Tănase, 2021). It provides a basis for forecasting the
future financial feasibility.

 PARTICULARS AMOUNT
SALES 1000
VARIABLE COST 370
Raw material 270
Packaging 100
CONTRIBUTION 630
FIXED COST 135
Rent 85
Salaries 50
NET PROFIT 495
From the above table it can be analysed that the companies variable cost is a little high. In order
to increase its sales company should cut down some its variable cost that will help in increasing
the contribution and thus increasing the net profit of the company.
Budget
Budget drives important business decision such as purchasing new equipment or cutting
down unwanted expenses or increasing staff. It helps in understanding how much money a
business have, how much money a business spend or will need in future (Sarvimäki, Gibbons,
and Overman, 2017).
PARTICULARS AMOUNT
RENT 85
EMPLOYEE COMPENSATION 50

ADVERTISING 60
ELECTRICITY 45
TOTAL 240
The key components of the value chain and business model canvas in relationship to Nature's
bliss organic cosmetic business
Value chain of the business and its relationship to the business:
Value chain analysis of any business do evaluate the internal assessment of the company. The
value chain is a interconnected system of the primary and supportive activities within the
business (Hasan, M. M. and et. al., 2019). They are further divided into sub activities described
as:
Primary activities: These activities are directly involved with the production of products to sales
of the actual product such as in Nature's bliss it will cover from the creation of organic cosmetic
to sales of these products to the target customers.
 Inbound logistic : In this part raw material or purchased material from the suppliers are
taken cared. As an example for the Nature's bliss company, this activity is associated with
receiving and warehousing of all the raw material like essential oils, herbs, medicinal
plants etc.
 Operations: This activity converts the raw material in the desired products. This
transformation from these raw material to the final beauty products like cosmetics, skin
care products comes under the operational process.
 Outbound logistic: After the production process, delivering these organic beauty
products to the target customers can be explained under outbound logistics. Outbound
logistic is all about collecting, storing and then distributing these products physically to
the buyers.

 Marketing & sales: Advertising and promotion of the products depends upon marketing
medium selected for the product sales.
Support activities: These activities are in coordination with the primary activities and supports
them for the best functioning
 Infrastructure of the firm: This contains activities like accounting and finance(related
to the finance about products pricing or the overall costing of the process, required
furniture, building), legal affairs ( license to sell the products)etc.
 Human resource management: Activities like recruitment of the skilled staff having
idea of the organic products and process, training and determining the skill into quality
production are counted in this management (Agyabeng-Mensah, and et. al., 2020).
Nature's bliss will have skin specialist, dermatologist, skilled people with the knowledge
of organic substitutes and product manufacturing as the main resources in the company.
 Technology development: Using labour, machinery and laboratory technology
development are comes under this attribute. For the Nature's bliss organic products, on
the basic scale skilled labours and resources will create the desired quality products.
 Procurement: In the nature's bliss company, function of purchasing the raw materials
such as essential oils, herbs, organic plants and medicinal plant from the sender as well as
the assets for the production of organic product such as basic machinery used for the
ingredient mixing in desired proportion are comes under the procurement attribute..
Business model canvas and its relationship to the Nature’s bliss organic product business
 Key partners: The partners who can help or contribute towards the business such as
team members, input suppliers etc. All of they are the ones in the favour of business.
 Key activity: Key activities for the business 'Nature's bliss' are hiring and train the staff
for organic cosmetic manufacturing, promotion of products and to have a complete
knowledge of throughout procedure.
 Key resources: The key resources for the organic beauty product company are the staff
for the production and storage process, sales and marketing, Human resource and
customers.

 Value proposition: It is one of the most important factor of any business model as it
indicates the value of business in the market. The importance of business in terms of the
value for customers are the main component of business such as to make the sustainable
substitute (with no or less chemicals) of the chemical cosmetic products, the organic
beauty products are coming into the life. This is the value preposition of Nature's bliss.
 Customer relationships: Nature's bliss will maintain the transactional as well as the
community based relationship with the customer, However the community will be age
bounded as youth and the one who is having skin issues mostly.
 Channels: the medium that helps to meet the customer such as for the start-up medium
can be social media as well as the people in the neighbourhood or in locality or socially
connected people. The channel way can be orally or via social media publicity.
 Customer segments: The targeted people who are going to purchase the organic skin
care products such as youth, people with the sensitive skin type, beauty industry
employees, for now the people with the middle class families, people with the sensitive
skin and social class people will be the first target for sales of the Nature's bliss.
 Cost structure: It is a combination of the operating expenses like day to day costing of
the employees and the capital expenditure are such as the row material for stocking
shelves, manufacturing space rent cost, electricity charges etc.
 Revenue Streams: The money company will make in terms of growth can be counted as
the revenue (Ojasalo and Ojasalo, 2018). Total worth of the Nature's bliss in terms of
growth, profit and services results in the revenue of the company.

Business model canvas of Nature's Bliss company
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
 Team
members
 Input material
Suppliers
 Marketing
peoples
 Hiring of new
staff
 Training of
employee
 Organic
product
manufacturing
 Marketing of
products
 Sustainable
product
 Chemical free
 Organic
substitutes
 Economical
 Advertising
 Facebook,
Twitter, social
media platforms
 Community
based
relationship
 Youth
 People
with
sensitive
skin
 Beauty
industry
employees
 Budget
oriented
people
Key Resources Channels
 Platform
 Technology
 Employees
 Brands
 Internet
 Social media
 Door to door
publicity to the
locality or
socially
connected
people
Cost Structure Revenue
Streams

 Operating expenses- day to day costing of employee
 Capital expenditure- raw material, manufacturing,
space rent cost, electricity charges


dvertis
ements
Quantitative and qualitative models and concept explaining the potential risk that can be
managed
Quantitative risk assessment model and the solution to manage the potential risk:
Quantitative risk is a risk factor associated with numerical value either in material used or
the product sales factor related to the target specific customer (Protection, 2017).
Risk involved: For the ease of understanding an example can be included in the organic beauty
product company. According to the idea “Aloevera” as a raw material can substitute the Vitamin
E chemical compositions in formation to heal as well as to moisturise skin at a same time. But, if
amount of aloevera used is not researched and different extraction methods are used for plant
then it can be less effective or hazardous at the same time. As the sensitive skin can show
irritation or allergies earlier, this can be a big risk factor in organic beauty production.
Solution to manage the potential risk: this model can illustrate the steps to involve for the risk
management are described as;
 Identification of the extraction method of the plant plays a very important role in the
production of the organic products. As extraction methods affects result of product. If in
the product powdered aloevera is being used at the place of freshly plucked one then
effect of product will be surely different because the powdered aloevera have weak
composition in terms of botanical extract.
 On following the safety margin for daily doses, risk of overdosing botanical compound
can be reduced. This will result into the risk management.

 By doing post market surveillance, analysis of related safety data can be done at the time
of product production (Wu and et. al., 2021).
By following these steps, the potential quantitative risk chances can be eliminated.
Qualitative risk assessment model and the solution to manage the potential risk:
Qualitative risk factors can not be assigned in the numerical values. This assessment
method is based on the personal judgement and expertise as well. In this model, risks are divided
in the levels such as the lowest level has a lowest risk impact and risk can be calculated by the
severity of risk and probability of its happening.
 Risk involvement: In the organic skin care and cosmetic production there are various
risk factors can be listed such as safety margin, microbiological component risk
assessment, increased product cost compared to the chemical cosmetics. It can be
segregated in the risk matrix levels.
 Solution to manage the potential risk: By the indexing levels, the focus on the risk can
be divided such as high risk as the first priority. By digital marketing as well as with the
complete study of all the microbiological factors, the potential risk of the organic product
selling can be reduced (Dent and et. al., 2018). However, for the efficient costing of the
product, market research as well as the other sustainable substitution can be used in the
product.
CONCLUSION
From the above business report, complete business plan of the organic cosmetic product
manufacturer company named under 'Nature's bliss' have been discussed. Moreover, as an
entrepreneur the business plan is defined in the term of services, target market and other
attributes as well. The way assessment of the market, industry and finance have been done gives
business plan and ideas about the competition and costing as well. Business model canvas gives
the big picture of the all attributes being used in the business strategy. At the end the risk
assessment evolution has been done to understand the risk attached with the organic products as
well as the solution to eliminate all these risk within a business.

REFERENCES
Books and Journals
Agyabeng-Mensah, Y., and et. al., 2020., Examining the influence of internal green supply
chain practices, green human resource management and supply chain
environmental cooperation on firm performance. Supply Chain Management: An
International Journal.
Bocken, N. M. and Short, S. W., 2020., Transforming business models: towards a sufficiency-
based circular economy. In Handbook of the Circular Economy. Edward Elgar
Publishing.
Bosma, N., Sanders, M. and Stam, E., 2018., Institutions, entrepreneurship, and economic
growth in Europe. Small Business Economics. 51(2). pp.483-499.
Bruijl, G. H. T., 2018., The relevance of Porter's five forces in today's innovative and changing
business environment. Available at SSRN 3192207.
Hasan, M. M. and et. al., 2019., Green business value chain: A systematic review. Sustainable
Production and Consumption. 20. pp.326-339.
Ojasalo, J. and Ojasalo, K., 2018., Service logic business model canvas. Journal of research in
marketing and entrepreneurship.
Oliveira, L.T. and et. al., 2019., PRODUCT VARIETY MANAGEMENT: A PROPOSAL OF
METRICS AND INDICATORS FOR THE COSMETIC INDUSTRY| GESTÃO
DE VARIEDADES DE PRODUTOS: UMA PROPOSTA DE MÉTRICAS E
INDICADORES PARA A INDÚSTRIA DE COSMÉTICA. Revista Brasileira de
Gestão e Inovação (Brazilian Journal of Management & Innovation). 7(2). pp.1-
28.
Oncioiu, I. V., Calotă, T. O. and Tănase, A. E., 2021., An Overview of Diversities in the Use of
the Profit and Loss Statement. Encyclopedia of Organizational Knowledge,
Administration, and Technology. pp.124-134.
Protection, D. B. S., 2017., A risk management approach. Bristol, UK: Institute of Physics
Publishing. pp.317-318.
Sarvimäki, M, Gibbons, S. and Overman, H., 2017., The Local Economic Impacts of
Regeneration Projects: Evidence from UK's Single Regeneration Budget.
Dent, M. and et. al., 2018. Principles underpinning the use of new methodologies in the risk
assessment of cosmetic ingredients. Computational Toxicology, 7, pp.20-26.
Wu, Z. and et. al., 2021., April. Cosmetic safety risk assessment model and system
implementation based on six-dimensional classification. In 2021 International
Conference on Internet, Education and Information Technology (IEIT) . pp. 31-34.
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The Benefits of an Organizational Assessment., 2021. [Online]. Available through
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assessment>
Enterpreneurship., 2021. [Online]. Available
through<https://openstax.org/details/books/entrepreneurship>