Ideal Company Business Plan for Women's Beauty Products

This is a business plan for a company referred to as the Ideal Company which will be operational in Melbourne, Australia. The company deals with the production of women’s beauty products, and it operates under a B2C model. The firm is founded by two people, but it is looking to expand its operations with the help of a private equity investor.

Ideal Company Business Plan 1
Ideal Company Ltd.
Business Plan for the period May 2018 to August 2018
Ideal Company Ltd.
Australian Business Number (ABN) 99 888 999 000
258 Central Boulevard
Melbourne Australia
Telephone:
Facsimile:
Email:
Internet: www.idealcompany.com.au
Prepared May 2018

Ideal Company Business Plan 2
Executive Summary
This is a business plan for a company referred to as the Ideal Company which will be operational
in Melbourne, Australia. The company deals with the production of women’s beauty products,
and it operates under a B2C model. The firm is founded by two people, but it is looking to
expand its operations with the help of a private equity investor. Currently, the founders have
contributed $100,000 and are looking to raise the capital to $200,000 to cater for all the startup
costs that have been estimated to be $182,500. It is expected that the firm will break-even and
even become profitable within its first year of operations. The firm will remain competitive by
offering high-quality products at fair costs, high-quality customer service, and free consultations
to its potential customers. The company will mainly use social media to market its products, but
it will also use television and print media. Once the company establishes itself, it aims to expand
internally by opening new locations across the country.

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Table of Contents
Content
s
Section 1......................................................................................................................................................7
1.1 Business Idea and Goals.....................................................................................................................7
1.2 Marketing..........................................................................................................................................7
1.3 Operations.........................................................................................................................................8
1.4 Finance..............................................................................................................................................8
Section 2; Background..............................................................................................................................10
2.1 Mission Statement...........................................................................................................................10
2.2 Company History.............................................................................................................................10
2.3 Business Goals.................................................................................................................................11
Section 3; Marketing.................................................................................................................................11
Market Research...................................................................................................................................11
3.2 Marketing Analysis..........................................................................................................................12
3.3 Marketing Plans...............................................................................................................................12
3.3.1 Product/ Service and the Target Market......................................................................................13
3.3.2 Placement.....................................................................................................................................13
3.3.3 Promotions and Advertising.........................................................................................................14
3.3.4 ICT Marketing Strategy.................................................................................................................14
3.3.5 Pricing Policy.................................................................................................................................14
3.4 Evaluation of Marketing..................................................................................................................15
Section 4; Operations............................................................................................................................15
4.1 Legal and Licensing Requirements...................................................................................................15
4.2 Management Details.......................................................................................................................16
4.3 Organizational Structure and Staffing..............................................................................................16
4.4 Professional Advisers.......................................................................................................................16
4.5 Insurance and Security Issues..........................................................................................................16
4.6 Business Premises............................................................................................................................17
4.7 Equipment Required........................................................................................................................17
Section 5; Financial Projections................................................................................................................17
5.1 Basic Assumptions and Information................................................................................................17

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5.2 Analysis of Financial Forecasts.........................................................................................................17
5.2.1 Sales Mix Forecast........................................................................................................................18
5.2.2 Cash Flow Forecast.......................................................................................................................18
5.2.3 Projected Profit and Loss Statement............................................................................................20
5.2.4 Owner’s Personal Expenses..........................................................................................................21
5.2.5 Owner/s Personal Assets and Liabilities.......................................................................................21
Section 6; Implementation Timetable........................................................................................................22
Section 7....................................................................................................................................................22
References.............................................................................................................................................22

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Table of figures
Figure 1.......................................................................................................................................................6
Figure 2.....................................................................................................................................................15
Figure 3.....................................................................................................................................................17
Figure 4.....................................................................................................................................................18
Figure 5.....................................................................................................................................................18
Figure 6.....................................................................................................................................................19

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Business Entrepreneur
Section 1
1.1 Business Idea and Goals
The Ideal company deals with the production, marketing, and distribution of women’s beauty
products. Statistics show that by the year 2030 about 33% of Australia’s population will be
above the age of sixty (Department of Economic and Social Affairs, 2015). Moreover, women
have become very conscious of their bodies, and they are taking greater care of themselves in a
bid to always look and feel good (Australian Demographic Statistics, 2016). This hence
highlighted the need to create products that will aid in protecting their skin and keep them
looking beautiful without incurring massive costs. The idea came up when I realized that the
majority of women like to use beauty products but are unable to purchase the high-quality
products due to financial constraints. This, therefore, causes them to buy the products that they
can afford which are substandard and filled with chemical contents which causes their skins to
become damaged.
The ideal company sells beauty products that are created using natural ingredients and without
the use of any chemicals to protect the users from diseases caused by using products that have
high chemical content. Some beauty products have been seen to cause diseases such as cancer.
The beauty products include makeup removers, cleansers, exfoliators, moisturizers, and different
make-up products. All the makeup products contain sunscreen elements to protect the women
from skin damage by the sun. The business thus aims at providing quality beauty products at
affordable prices by making use of natural ingredients such as Aloe Vera and avocado.
1.2 Marketing

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The firm will employ different marketing techniques, but it will follow the integrated marketing
communications model. In so doing, the company will use the various marketing tools in
combination. The company’s marketing mix is composed of the beauty products which will be
sold in the company’s physical location in Melbourne. The products will be sold at fair prices to
ensure that people with low incomes can afford them. The primary method of product promotion
that the company will employ is the use of social media. This is because social media will reach
very many people in Australia and it is very cost-effective. The different social media platforms
that will be used by the company include Facebook, Twitter, Instagram, Snap chat, and linked in.
The company will also post different videos on YouTube to guide people on how they should use
the different facial products and how they should apply their makeup. The company will sell the
products individually, but it will also sell them in bundles at a discount. All the beauty products
cost the same price including an entire makeup kit.
1.3 Operations
The company will first receive its different products from its suppliers. The company will work
together with farmers who provide its products exclusively. The farmers will offer avocado and
Aloe Vera to the company. To save costs, the company will provide the farmers with seeds and
farming advice and hence purchase the products at discounted prices. The company will also buy
coconut, lemons, tea tree, apples, raw honey, sea salt, argon oil, jojoba oil, almond oil, and castor
oil. All these products will be sourced from different suppliers at fair prices to ensure that the
total production costs are minimal.
1.4 Finance

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The company already has $100,000 that was provided by the company’s two founders. The
company, however, needs another $100,000 to cater for all the startup costs. The company needs
to purchase equipment that will be used in the manufacture of the beauty products. It also
requires buying a vehicle to deliver products to customers as well as to the different wholesale
retailers that it will use to aid in product distribution. To raise the required $100,000, the
company will work with a private equity investor who will own a given percentage of equity and
also aid in company operations. The investors will own 70% of the company while the private
equity investor will own 30%. The figure 1 below shows the company’s different startup costs at
the beginning of business operations.
Capital Investments Amount ($)
Equipment 10,000
Furniture and fixtures 5,000
Computer equipment 5,000
Other equipment 2000
Vehicle 20,000
Total 42,000
Operating Expenses Amount ($0)
Legal, accounting, and
professional services
10,000
Advertising and promotions 3,000
Deposits for utilities 10,000
Licenses and permits 7,000
Prepaid insurance 8,000

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Lease payments 3,000
Salary and wages 40,000
Travel 3,000
Tools and supplies 1500
Starting inventory 30,000
Cash (working capital) 15,000
Training and development costs 6,000
Business cards 1,000
distribution costs 3000
Total 140,500
Total Startup Cash Needed 182,500
Figure 1
The company hence needs $182,500 to commence operations. Since the company will raise
$200,000, it will save $17,500 as the reserve fund.
Section 2; Background
2.1 Mission Statement
The Ideal company is a B2C producer and distributor of beauty products across the Netherlands.
The company aims to produce high-quality beauty products for women at fair prices, using
natural products to protect their skin and keep them feeling beautiful and fabulous.
2.2 Company History

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The Ideal company has been founded by two people, Jane and Jack, who are highly experienced
in the beauty industry due to years of working in the sector. The company will also work with a
private equity investor who will provide financial support to aid in starting the company. He will
also help grow the company using his network with other businesses and hos vast knowledge in
company expansion. The Ideal company came about to help women with low income to gain
access to low priced quality products. Many women have been using beauty products that have
caused them to contract different skin diseases, and the founders identified the need to provide
them with products that could put an end to these cases of skin damage. The company will hence
fill the gap of lack of proper beauty products for low-income women.
2.3 Business Goals
The ideal company aims to provide high-quality beauty products at fair prices to women. Once
the company begins operations, it seeks to keep increasing its market share and become the go-to
provider of women’s beauty products. The company also intends to break-even within the first
year of operations by continually increasing its sales revenue. Additionally, it seeks to involve
itself in different philanthropic activities to improve the welfare of the community in various
Australian cities where it will set up its operations. The company’s unique selling proposition
(USP) is “fair price for our 100% organic, high-quality beauty products; feel and look great for
less.”
Section 3; Marketing
Market Research

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After research in the Australian market, it was identified that very many women are on different
social media platforms and this shows that the use of social media in marketing is a significant
step. The target market for the beauty products are women aged between 18 and 80 years. The
company will begin its operations in Melbourne, Australia. Once the market has adequately
established itself in Melbourne, it will expand its services to other cities in the country.
The products provided by the ideal company are made using natural and organic ingredients and
sell them at fair prices. The main benefits that the target customers will enjoy from using these
products are; they will get high-quality products, the products will be provided at fair prices, the
customers will also get high-quality customer services. Finally, there will be free deliveries to
customers who purchase products worth more than $1,000 through the company’s online
platforms.
3.2 Marketing Analysis
The majority of companies in the Netherlands use social media to advertise their products
(Pomering, 2017); (Hayes, Rockwood, and Montoya, 2017); (Wyllie, Carlson and Rosenberger,
2015). The main platform used is Facebook (Plume, Dwivedi and Slade, 2016). Companies also
use other social media platforms such as Twitter, Instagram, LinkedIn, and Snap chat (Valos et
al., 2017). Other platforms that are used include television and radio advertising, billboards, as
well as print media. The use of integrated marketing communication has also become prevalent
in different organizations. Integrated marketing communication refers to the use of different
marketing platforms in collaboration by providing a similar message (Usher, Woods and Casella,
2014).
3.3 Marketing Plans

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The Ideal company will employ different marketing techniques. First, it will make use of social
media in its marketing activities. The major platform that will be used for marketing is
Facebook. The company will create a Facebook page that will be used to promote the company’s
products. instead of simply informing potential customers what the company is selling, the
company will instead connect with its employees. According to Rigaud (2013), it is vital for
companies to create a connection with their employees to gain insight on what they would like
and to create loyalty with the customers. The company will also use Instagram, Twitter, Snap
chat, and LinkedIn to market its products. Additionally, the company will state its USP in all its
platforms to reinforce its message. It will also paint both its logo and USP on the company van
as a means of product promotion. Finally, it will make use of television and radio advertising as
well as print media.
3.3.1 Product/ Service and the Target Market
The target market for the Ideal company is women aged between 18 and 80 years of age. The
company will employ market segmentation strategies to identify its dominant customers who it
will concentrate its efforts on the most. Customer segmentation refers to the process in which a
firm divides its customer base into different groups of people who are similar in different ways
such as age, spending habits, and interests among others. The main methods that the company
will use to segment its customers include demographic, geographical, and behavioral to identify
which people purchase the most beauty products.
3.3.2 Placement

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The company will sell its products through its website, different social media platforms, and
through its physical locations and by the use of its direct sales agents. After conducting
geographical segmentation, the company will be able to identify which regions are most likely to
deliver the highest sales revenues.
3.3.3 Promotions and Advertising
The main method of advertising used will be the use of social media. The company will also use
other means such as television and radio advertising, billboards, and print media. The company
will, therefore, diversify its marketing procedures to increase the number of potential customers.
3.3.4 ICT Marketing Strategy
The different ICT marketing strategies that Ideal company will use include Facebook, Twitter,
Instagram, and Snap Chat. The company will also advertise its products using its website. The
Ideal company will use search engine optimization and google analytics to optimize its
marketing operations. Search engine optimization refers to the process in which a company’s
website maximizes traffic to its site by ensuring that it appears high of the list of results that are
provided by any given search engine (Yalcin and Köse, 2010); (Hubspot, 2018). Conversely,
google analytics refers to the web analytics service that enables a firm to track its social media
sites, videos, and applications and consequently report back the traffic to the firm (Christopher,
2011); (Path, 2014); (Chande, 2015). These two tools will be crucial for the Ideal company, and
they will ensure that it optimizes how it uses its resources in marketing.
3.3.5 Pricing Policy

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The beauty products from the Ideal company will be sold for $20 each, and all the products will
be sold at the same price. The products include; makeup removers, cleansers, exfoliators,
moisturizers, and different make-up products. The major competitors of the ideal company in
Australia are UltraCeuticals, Iluka, Kora Organics, Bloom, Napoleon Perdis, Mecca Cosmetica,
Simple as That, and Inika (Direct selling association of Australia, 2018). Majority of these
companies also provide beauty products using natural ingredients (Burke and Carroll, 2017).
However, the element that will provide the Ideal company with a competitive edge is that it will
provide high-quality products at very fair prices as compared to the competition. Additionally, it
will provide its customers with high-quality customer service and connect with them. Finally, the
Ideal company will provide a free consultation to it potential customers in a bid to determine the
most favorable products that they should use.
3.4 Evaluation of Marketing
It is clear that the Ideal company needs to employ different marketing strategies to reach as many
potential customers as possible. Additionally, the company should use integrated marketing
communication to create trust in its existing and potential customers. Finally, the company will
connect with its customers through its social media platforms by communicating with them and
addressing their concerns.
Section 4; Operations
4.1 Legal and Licensing Requirements
The Ideal company will follow different legal and licensing requirements. All businesses in
Australia have to register before starting any business activities (Department of Education,

Ideal Company Business Plan 16
Employment, and Workplace relations, 2012); (Queensland Government, 2018). Different things
that businesses need to register for when commencing operations include pay as you go tax, a tax
file number, the goods, and services tax, as well as an Australian business number (CPA
Australia, 2018). The company will also need to patent its products to protect them from
counterfeiting (BMJ, 2009). The company hence needs to follow Australian business standards,
its code of practice, and it should also comply with the competition and consumer act.
4.2 Management Details
The company’s founders will manage the Ideal company with help from the private equity
investor. Once the company expands, they will hire managers for the different stores.
4.3 Organizational Structure and Staffing
The company will follow a hierarchical management system where the junior employees will
answer to the managers. Employees will, however, have the freedom to bring their ideas to the
management. The company will commence employees with three hired employees, and more
employees will be hired as it expands.
4.4 Professional Advisers
The Ideal company will use the services of different professional advisers such as accountants
and lawyers to help them make the right decisions in different technical areas.
4.5 Insurance and Security Issues

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The Ideal company will take up different insurance policies to make sure that the company can
be reinstated back to its financial standing in case any of the risks occur. The company will
hence take up personal insurance, goods in transit, all-risks building and other contents, and
equipment insurance.
4.6 Business Premises
The firm will sell its products from its Melbourne location in Australia and through its website as
well as other social media platforms. Once the company expands, it will open more location
across the country.
4.7 Equipment Required
The major equipment that the ideal company will need is the manufacturing equipment which
will be used in the manufacture of the beauty products. The company will also use computers.
Section 5; Financial Projections
5.1 Basic Assumptions and Information
It is assumed that the women in Australia will purchase the beauty products of the Ideal company
because they are priced reasonably, and they are of high quality. Additionally, it is assumed that
Ideal company will increase its market share quickly.
5.2 Analysis of Financial Forecasts
The company with the highest market share in beauty products in Australia is L’Oréal with a
share value of 10%. Statistics show that the beauty industry is expected to grow at a CAGR of

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1% annually (Burke and Carroll, 2017). The primary driver of the sector is facial care products
which the Ideal company targets to provide.
5.2.1 Sales Mix Forecast
One principal method that the Ideal company will use to sell its products is direct selling.
Statistics show that in Australia, the direct sales of beauty products have reached $1.4 annually
(Direct selling association of Australia, 2018). The average sales per individual have been
determined to be $2200 every year. The majority of salespeople are women who account for
81% of all salespeople. Direct sales have accounted for 20% of the Australian market’s skincare
market (Direct selling association of Australia, 2018).
The Ideal company targets to sell 2500 units of beauty products every month. This will bring in a
revenue of $50,000 per month.
5.2.2 Cash Flow Forecast
Cash Flow Statement for the Ideal company
Cash Inflow
Capital from founders 100,000
Capital from the private equity investor 100,000
Sales revenue 600,000
Total cash inflow 800,000
Cash Outflow
Equipment 10,000
Furniture and fixtures 5,000

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Computer equipment 5,000
Other equipment 2000
Vehicle 20,000
Total 42,000
Operating Expenses Amount ($)
Legal, accounting, and professional
services
10,000
Advertising and promotions 3,000
Deposits for utilities 10,000
Licenses and permits 7,000
Prepaid insurance 8,000
Lease payments 3,000
Salary and wages 40,000
Travel 3,000
Tools and supplies 1500
Starting inventory 30,000
Cash (working capital) 15,000
Training and development costs 6,000
Business cards 1,000
distribution costs 3000
Total cash outflow 224,500
net cash inflow 575,500
Figure 2

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5.2.3 Projected Profit and Loss Statement
Sales $600,000.00
Opening inventory $ 30,000.00
Closing inventory $10,000
Gross profit (or
income)
$560,000.00
Expenses
Legal, accounting, and
professional services
$ 10,000.00
Advertising and
promotions
$ 3,000.00
Deposits for utilities $ 10,000.00
Depreciation $ 4,000.00
Licenses and permits $ 7,000.00
Prepaid insurance $ 8,000.00
Lease payments $ 3,000.00
Salary and wages $ 40,000.00
Travel $ 3,000.00
Tools and supplies $ 1,500.00
Cash (working capital) $ 15,000.00
Training and
development costs
$ 6,000.00
Business cards $ 1,000.00

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distribution costs $ 3,000.00
Total expenses $114,500.00
profit before tax $ 445,500.00
net profit $ 134,229.15
Figure 3
5.2.4 Owner’s Personal Expenses
Expense Cost per
Month
Travel $200
Rent $3,000
Food and
Supplies
$1,500
Figure 4
5.2.5 Owner/s Personal Assets and Liabilities
Cars $10,000
House $30,000
Bank
Loan
$15,000
Net
Assets
$25,000
Figure 5

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Section 6; Implementation Timetable
Activity Responsible person Timeline
Looking for a private equity
investor
Both founders One month
Marketing activities Jane Two months
Sales and logistics team Jack Two months
Purchase of the distribution
vehicle
Jane One and a half months
Figure 6
Section 7
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