Growth Sustainable Business Plan for Launching Organic Cosmetic Products
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This report outlines a growth sustainable business plan for launching organic cosmetic products, including identifying customers and competitors, skills analysis, resource allocation, funding, and vision. It also includes a projected profit and loss account, cash flow forecast, and breakeven point.
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Growth sustainable business plan
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Executive summary-This report has described the major aspects that are needed to be identified in context of proposing new business idea. Furthermore, the report has highlighted the major customers, competitors, skills analysation, resource allocation, funding and vision in regards to selected business idea. Also, projected profit & loss account, proposed cash flow within including breakeven point has been explained.
TABLE OF CONTENTS Growth sustainable business plan...................................................................................................1 INTRODUCTION...........................................................................................................................4 MAIN BODY..................................................................................................................................4 Proposed future business.............................................................................................................4 Customers....................................................................................................................................4 Competitors..................................................................................................................................5 Skill analysation...........................................................................................................................5 Projected two years profit & loss account and proposing 2 years cash flow forecast including break even....................................................................................................................................6 Finding evaluating and selecting suitable sources of funding.....................................................6 Plans for obtaining resources.......................................................................................................6 Type of organization and management information system required for controlling business. .7 Vision for your business idea......................................................................................................7 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................9 APPENDIX....................................................................................................................................11
INTRODUCTION Business plan refers to the new project that has been taken in consideration in terms of earning profit and assuring satisfaction to the customers (Maravilhas, Melo and Oliveira, 2018). The current study is based on developing new business idea and making a business plan in regards to new business idea. The business idea is aligned with launching organic based skin and hair care products. The report will highlight the specific customers for the project, competitors for the business, skills analysis, projected two-years profit and loss account along with proposing 2-yearscash flowforecastingand plansfor obtainingtheresourceswill behighlighted. Furthermore, management structure of the business will be described. Lastly, the vision of business will be highlighted. MAIN BODY Proposed future business The business idea is aligned with the major concept of producingorganic personal care and cosmetic products. This business idea has been taken in consideration within analysing the extent up-to which the chemical has been included in the cosmetic products that provides drastic effect over the skin of the consumers. Therefore, launching organic cosmetic products helps in assuring skin safety to the customers. The major products that will be launched are, skin care and hair products that involves face creams, cleanser, moisturizer, sun screens, shampoo, conditioner and masks. TheBest cosmetic shopis the proposed name of the business. Customers The targeted customer for the products of organization are those customers that provides focus over health and have faced large number of issues due to using of those cosmetics that contains chemicals. The organization have a position of self as organic company that mainly uses the natural products in order to prepare the products. The customers will be B2C that is business to consumers the products will be directly sell to the customers (Jeannet and et.al., 2021). The major segmentation that has been selected for the best cosmetic shop are: Behavioural segmentation Those customers who are highly fond of healthy and organic products has been targeted underthissegmentation.Suchcustomershavethebehaviourofusingorganicproducts. Therefore, such customers have been targeted under this. Demographic segmentation
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In this segmentation the customers will be targeted on the basis of age and education level (Ascarza and et.al., 2018).Mainly women and girls among the age of 15-50 has been selected that are well aware about the use of organic cosmetics. TheUSPof the products is aligned with providing benefits to the skin and hair within assuring large range of products without harming the skin and hair as there is no use of chemical has been done in the products. Competitors The large amount of capital is required in terms of establishing new cosmetic industry. Thus, there is high level of competition in the industry. In context of threat from new entrants the threat is generally less as no one can easily start the cosmetic business it requires large number of capital and testing of the products. There is a threat from the suppliers as increase in the price of raw material directly increases the prices of final product. In case, the customers declined on a high rate then, it creates pressure over the company in terms of reducing the prices of the products. There are large number of companies that are dealing in the cosmetic products. Thus, there is a threat of substitute that directly impacts profitability of the best cosmetic shop. Thus, major competitors of the organization are those organizations that are selling hair care and skin care products such as, The Body shop. However, uniqueness of the best cosmetic shop that is providing organic products will help in facing the competition. Skill analysation The major skill that are required in order to assure success to the best cosmetic shop is aligned with the team unity (Moro and et.al., 2018).The prior focus needs to be made over this. Team unity enables organization in terms of performing the task and activities with full dedication that helps in achieving the final goal. Furthermore, it helps in creating effective coordination among team members that will provide specific support to the organization. The team of the organization must be aligned with the marketing, accounting, operations and HR department (Camilleri, 2018).Coordination among all team leads to create strong base for organization in terms of dealing with the hurdles. Furthermore, the new candidates who are highly creative will be recruited in the organization. As a result, their creativity and skills helps in developing the bunch of skills for best cosmetic shop. Management team is accountable for taking investment decision that assures financial support to the business (Mariappan and et.al., 2020).Thus, effective decision-making skill will
be required that helps in taking effective decision making. The skill gape refers to that situation in which the current workforce of organization does not acquire skill that is important in order to perform the task. Therefore, the best cosmetic shop will plan effective recruitment strategy that is concerned with selective hiring. This helps in acquiring talented people in organization. Projected two years profit & loss account and proposing 2 years cash flow forecast including break even Profit and loss account refers to that account which shows how much a company earns with its sales (Oncioiu, Calotă and Tănase, 2021). The best cosmetic shop has the budget up-to 45000. The projected two years of profit and loss account of the company that has been shown in appendix states that, company will increase its sells in the period of two-years the prior focus of the company is to reduce the loss increasing the sales and creating higher profit. The propose 2- years cash flow states that in two years the company will earn higher profit within increasing the inflow of cash. The breakeven point refers to that point where the profit are equal to the cost. Thus, breakeven point for the company will arrive after 1.5 year where the cost and profit will become equal. Finding evaluating and selecting suitable sources of funding Funding plays vital role in assuring the effective practices to the business (Mansoori and Lackeus, 2020).Thus the major source of funding that will be selected for best cosmetic shop is, debt financing and raising equity from the market. Both the sources have been selected in order to keep an effective balance among the debt and equity in the company as this helps in creating the effective fund for the organization. Thus, debentures will be approached by the company that will provide the debt and the organization will raise equity within approaching the number of shareholders. Plans for obtaining resources Resources refers to the major tangible and intangible elements that are required in order to run the activities of the business. The tangible resource refers to the physical resources while intangible resources refers to that resources that cannot be physically touch (Beerepoot, Weerd and Reijers, 2019). The tangible resources for the best cosmetic shop are concerned with the cash, officespace,lab space,spacefor launchingservice, manufacturingspace, labours, employees and raw materials. On the other hand, intangible resource for the organization is aligned with the goodwill, intellectual property and ability of forming partnership. Thus in order
to acquire the tangible resource the major focus needs to be made over acquiring cash as every resource is connected form that (Osotimehin, 2019).The cash will be acquired with the selected source of funding that helps in accessing the other tangible resources. In order to acquire described intangible resources the company needs to made effective goodwill that will be created after performing in effective manner up-to a certain extent. Type of organization and management information system required for controlling business An effective control over controlling the management of the company is needed as it provides direct impact over the profitability and performance of the business. therefore, effective management structure needs to be designed. Effective CRM and MIS will be adopted by the best cosmetic shop. CRM refers to the customer relationship management this helps in creating effective interaction with the customers (Anshari and et.al., 2019).Often, with the help of this organization will take the feedback of customers in consideration. MIS refers to management information system. This will enable organization to have potential information from market that helps in the operations of organization. Thus, this leads to assure effective support to best cosmetic shop. Vision for your business idea Vision of the best cosmetic shop is entitled with gaining leading position in the market within reducing cost of product along with ensuring higher quality to the customers. Also, within five years the firm has planned to cover greater market within increasing the products in the international market. CONCLUSION From the above report it has been concluded that effective planning for proposing the business idea helps in establishment of idea in efficient manner. The report has highlighted the business plan that is related to launching organic cosmetic products. The report has analysed the specific customers and competitors for the organization. Furthermore, the skills analysation,
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resource allocation and management structure for the new business has been identifies in the report. Also, the evaluation of the source from where fund will be acquired has been done. Thus, the final conclusion that has been arrived is entitled with performing specific planning for adding glory in new business idea.
REFERENCES Books and Journals Anshariandet.al.,2019.Customerrelationshipmanagementandbigdataenabled: Personalization & customization of services.Applied Computing and Informatics,15(2), pp.94-101. Ascarza and et.al., 2018. In pursuit of enhanced customer retention management: Review, key issues, and future directions.Customer Needs and Solutions,5(1), pp.65-81. Beerepoot, I., Weerd, I.V.D. and Reijers, H.A., 2019, September. Business process improvement activities: differences in organizational size, culture, and resources. InInternational Conference on Business Process Management(pp. 402-418). Springer, Cham. Camilleri, M.A., 2018. Market segmentation, targeting and positioning. InTravel marketing, tourism economics and the airline product(pp. 69-83). Springer, Cham. Jeannetandet.al.,2021.SourcingtheDefiningBusinessIdea.InMasterpiecesofSwiss Entrepreneurship(pp. 195-209). Springer, Cham. Mansoori, Y. and Lackeus, M., 2020. Comparing effectuation to discovery-driven planning, prescriptiveentrepreneurship,businessplanning,leanstartup,anddesign thinking.Small Business Economics,54(3), pp.791-818. Maravilhas, S., Melo, P. and Oliveira, S.R.G., 2018. Entrepreneurship and Innovation: The SearchfortheBusinessIdea.InHandbookofResearchonStrategicInnovation Management for Improved Competitive Advantage(pp. 40-54). IGI Global. Mariappan and et.al., 2020. Assessment of Soft Skills that Foster Practical Skills in Accounting Course.PSYCHOLOGY AND EDUCATION,57(8), pp.1514-1521. Moroandet.al.,2018.Bigdata-drivenstochasticbusinessplanningandcorporate valuation.MoroVisconti,R.,Montesi,G.,&Papiro,G.(2018).Bigdata-driven stochasticbusinessplanningandcorporatevaluation.CorporateOwnership& Control,15(3-1), pp.189-204. 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. Osotimehin, S., 2019. Aggregate productivity and the allocation of resources over the business cycle.Review of Economic Dynamics,32, pp.180-205.
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