Business Plan for The Organic Shop: Selling Natural-based Products in the Cosmetic Industry

Read the business plan for The Organic Shop, an Australian company selling natural-based products in the cosmetic industry. Learn about their unique selling point, target market, operations, key people, and more.

[Insert your business logo]
[Enter your business
name]
Business plan
Date: Select a date
[Use the italicised guidance throughout this template for help completing your business plan.
You may wish to remove this text before you finalise your plan.]
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Key details
Registration details
[Find out about business registrations and choosing a business structure.]
Business name
Registered or proposed
name.
Date registered 7/06/2022
State registered in Western Australia
Business structure Sole trader
Australian business number
(ABN)
-
Australian company
number (ACN)
If a company.
-
Licences and permits
Australian, state and local.
For accessing the materials from farmers for using natural
ingredients
Contact details
Name The organic Shop
Phone [phone]
Mobile [phone]
Email [e-mail]
Address 416 Elm wins Rd, Bridgetown WA6255, Australia
Online and social media details
Address/details
Website https://www.organicproducts.com.au/
Select type
Select type
Select type
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Contents
Key details.............................................................................................................................................2
Registration details............................................................................................................................2
Contact details...................................................................................................................................2
Online and social media details.........................................................................................................2
The business..........................................................................................................................................4
Plan summary....................................................................................................................................4
Our why.............................................................................................................................................4
Our vision..........................................................................................................................................5
Our mission........................................................................................................................................5
Operations.........................................................................................................................................5
Key people.......................................................................................................................................10
The market..........................................................................................................................................12
The problem....................................................................................................................................12
Our solution.....................................................................................................................................12
Our target market............................................................................................................................12
Advertising and promotion..............................................................................................................13
The competition..............................................................................................................................14
Pricing strategy................................................................................................................................15
SWOT analysis.................................................................................................................................15
Risk management................................................................................................................................17
Risk assessment...............................................................................................................................17
Insurance.........................................................................................................................................17
Succession plan................................................................................................................................18
Laws we’ll need to comply with.......................................................................................................18
Goals and actions................................................................................................................................19
Goals for next year..........................................................................................................................19
Goals for the next 3 years................................................................................................................20
The finances........................................................................................................................................21
Finance needed...............................................................................................................................21
Sources of funding...........................................................................................................................21
Current finances..............................................................................................................................21
Balance forecast..............................................................................................................................21
Profit and loss forecast....................................................................................................................22
Cash flow forecast...........................................................................................................................23
Supporting document checklist...........................................................................................................24
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The business
Plan summary
[Complete this section last so you can summarise information from the rest of your plan.]
What our business does
The products or
services we sell.
It is one of the significant successful firm that is operating in the
cosmetic sector which is selling goods such as hair shampoo, face mask,
etc. so that problem of customers prevailing in the market can be
resolved effectively to meet the demand of buyers.
Our target market The target audience is the customers who are having the objective of
using then natural based products for their hair and skin in turn
accomplishing their objectives of overcoming the issue of usage
regrading chemical aspects. It will focus on having those who have the
behaviour and psychology of achieving the higher profitability and
sustainability can be derived.
Our unique selling
point
The one of the unique selling price that is basically focused by the firm
in order to have the effective processing is that it focuses on offering
the higher quality with lower cost. It is related with achieving the higher
trustworthiness in the market he in turn greater performance can be
derived.
Our business goals To incline the profitability by 10% at the end of the year
To increase the marketing efforts by 12% at the end of the year so that
good market share can be covered
To decline the cost by 5% within 6 to incline profit and efficiency of
organizational action.
Our history
Industry experience,
major achievements.
The firm is operating in the cosmetic industry with no past records in
turn good start up can be done to have higher outcomes can be
attained.
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Our why
[Consider why you started this business. Why are you personally invested in this business idea?]
The inspiration behind the business.
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The main reason behind the starting the business is that there is effective awareness regarding
the healthy products and chemical utilization negative impact which is increasing the demands of
the such products. There is significant growth in the particular sector which has motivated toss
elect this business idea.
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Our vision
[Consider what you want your business to accomplish in the long term. What are your ultimate
goals? Be passionate, powerful and inspiring.]
Our hopes, dreams and where we aim to go.
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To have the leading position in the cosmetic industry in Australia by possessing diverse network
channel and higher quality to meet customers demand
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Our mission
[Consider the purpose of your business and define what it does for your customers. What do you do,
how do you do it and why do you do it?]
Who we are and why we exist.
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To have the significant position in the market by possessing higher competitive benefits by
offering quality based products so that effective higher level of the customer satisfaction can be
derived.
Operations
Products and services
The company is paying attention on offering the organic products in the cosmetic industry in turn
accomplishing the goal of the higher profitability and sustainability can be attained. The firm is
focusing on offering the goods such as hair mask. Shampoo, face wash, etc. with using different
ingredients by avoiding utilization of chemical products to meet distinct needs of customers.,
Product/service Description Unit price (incl. GST)
shampoo It possesses all the natural ingredients such
as oils, aloe , organic honey, etc.
$ 34.95
Face wash It is one of the most demanding product
which is basically concerned with having
lemon, cucumber coconut oil, rose water,
milk, etc. which is eliminating the utilization of
chemical.
$ 40.35
Soap It is basically concerned with h having distilled
water, essential oils, colorants, etc.
$40.50
face mask It is related with overcoming the acnes, dark
spots, etc. for offering the instant glow in turn
attaining the higher requirements of the
customers can become possible. It involves the
various ingredients which is eliminating
chemical utilization.
$30.50
Hair mask This comprises the components such as
avocado oils, aloe Vera, etc. in turn higher
strong, lengthy, etc. benefits can be offered.
$40.00
Production
How we produce our products or services and where we get our main supplies from.
In order to offer the products which are mentioned the supplies are taken directly from the
agriculture part via connecting with farmers so that cheap cost through maintaining higher quality.
There is focus will be provided on having the effective suppliers who are having wholesales so that
achieving the higher profitability & sustainability can be attained.
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Sales and distribution channels
The channels we’ll use to distribute our product or service to customers.
Channel Used for Details
Shopfront The main reason behind
using this form of the
distribution channel is to
offer the hair mask and
shampoo highly s
customer prefer to buy
from it (McKeever, 2018).
20% of the overall sale is achieved with
help of this channel.
Website This is basically taken
into the consideration for
spreading the awareness
regarding the products
and services availed in
turn good brand
positioning can be done
thorough having
customer conversion
rate.
15% of the sale is derived via using this
channel of distribution.
Market stall It is one of the significant
channel that I used to
connect with local people
for gathering information
regarding their
suggestions in turn
customized products can
be provided.
20% of total revenue is generated with help
of this channel.
Other This involves all the
digital platforms such as
social media, business
based online store, etc. is
taken into process so that
effective sales can be
made (Marketing
Promotion Strategies,
2022).
Rest of the sale is made with help of the
platform
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Digital technology
[Learn about selling online and digital options to improve your business efficiency and profitability.]
Technology we plan to use for our business.
There is different form of the technologies which is used by the particular organization that
involves accounting software, cloud computing, social media marketing, artificial intelligence for
connecting with people in turn higher effective service offering can become possible. This all are
basically taken into the consideration for collecting data in turn strategic decision can be
formulated.
Information management
[How do you collect, store and use customer and stock information? Do you back up this
information? How do you do this and how often? Make sure you comply with industry standards and
legislation.]
How we collect, store and use customer and stock information.
In order to have the precise form of the data storing and securing regarding the customers and
stock information cloud computing is taken into the practice. In addition to this, there is effective
utilization stock insights via taking the strategic information so that over or understock can be
obtained. On the basis of this, it can be mentioned that it is helpful in gaining relevant storing,
collecting, etc. information so that good information management can be achieved.
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Assets
Premises
[Describe your business premises, the location, facilities and whether you own or lease them.
Visit our Business premises page for more information.]
The firm is possessing the premise for manufacturing and shop ion market in turn effective ability
to deal with customers can become possible.
Stock and inventory
There is execution of inventory managements system with help of the cloud computing in turn good
stock insights regarding inputs such as ingredients, WIP components and outputs can be effectively
managed effectively to market forces. It possesses the material for the products manufacturing in
turn demand of the goods for the particular year can be met so that higher effective 10000 goods in
each category.
Equipment
Equipment Date bought or leased Cost ($)
computers 10/05/2022 $20000
Machinery 11/05/2022 $25000
Vehicle 12/05/2022 $30000
Furniture 12/05/2022 $35000
Intellectual property
[List any intellectual property that you have registered or need to protect. For more information,
check our intellectual property guide.]
In order to have the effective processing by possessing the organization logo so that significant
brand positioning in the market can be attained..
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Key people
Our staff
[List your existing staff and any staff required for your business. Include yourself and list any major
achievements and relevant business experience.]
Role Name
If role is filled.
Skills and experience
Operation
manager
- It requires the higher information regarding the
various technical efficiency, data processing,
product development, risk identification, etc.
with one year of practical exposure.
Quality manager - Possessing the good communication,
interpersonal, analytical, problem solving,
facilitating change, etc. in turn good outcomes
can be provided with possessing 3 years of
experience.
Marketing
manager
- Significant leadership, technical, , organization,
communication, creative skills, etc. in turn
accomplishing the insights about the customers’
requirements can become possible with
possessing 2 years of experience (Lim, 2021).
Financial
manager
- Significant experience of 3 years in
identification of resource regarding finance,
allocating and managing finance, etc. there
should be knowledge regarding tax filing in turn
gaining higher precise can be attained.
Data analyst - This should have the effective understanding
about the data collection, analysing, etc. with
use of varied software, etc. in turn achieving
appropriate information to make strategic
decision can become possible.
Sales executives - Precise knowledge regarding the customer
demands meeting, effective problem resolving,
etc. can traits to meet the targets can be
attained.
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Sources of advice and support
[Sources of advice and support for your business could include a business mentor, your accountant, a
valued supplier or even an industry association.
External people or organisations that provide support to our business.
Support type Name Skills and experience
Accountant - Possessing effective information regarding
the recording and summarizing the
information in turn attaining the goal of
having significant accounts to make
judgements regarding firms financial
position with 1 year of experience.
Marketing executive - This should possess good team work,
adaptability, strong attention to detail, good
organization and commercial awareness,
etc. with 2 years of experience
Suppliers - Good communication skills and effective
decision making, significant problem solving
in turn higher effective outcomes can be
attained with 1 year of practical exposure.
Skill and staff retention strategies
[Read about developing and maintaining staff skills.]
How we keep our staff working for us and maintain their skills.
There is different form of the actions which is basically exerted by the firm for purpose of having
significant planning and developing with staff for having effective results. It is done by offering
clarity of goals, effective team meetings, significant feedback mechanism, etc. so that higher
insights about the prevailing problems can be identified to have ability to implement the suitable
course of actions for the purpose of significant implementation of modification.
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The market
The problem
[What issues do your potential customers face in the market? Is there a lack of your service type in a
particular suburb? Is the product supplied by other businesses expensive?]
The market problem/s that we aim to solve for customers.
From the evaluation of the market research conducted it can be interpreted that there is significant
problem as higher utilization of the chemical is prevailing in the market which is hampering the
purchasing decision of customers (Gasmi and et.al., 2020). The business idea is basically
concerned with utilization of organic materials via ensuring the elimination of chemical utilization
that is related with possessing significant ability to solve the problem of negative impact on their
hair and skin in turn higher profitability & sustainability can be attained. The offered products by
the company is affordable in turn higher market share can be covered.
Our solution
How our business solves the problem – our unique selling point. This is how we’ll succeed in the
market.
The problem of customer of having adverse impact on their skin & hair the focus on using natural
ingredients which are specialized in obtaining sustainable growth & development in turn positive
influence in long term can be derived. Unique selling point for the current investigation is that it is
concerned with having the higher quality with varied form of the ingredients in turn accomplishing
the objective of customers with affordable price.
Our target market
From the evaluation it can be mentioned that STP is one of the significant technique which is related
with possessing significant assessing of the segmenting customers. For the current business the focus
will be provided on having the effective targeting customers on basis of behavioural and psycho
graphic basis in turn attention of all buyers who want to have organic based products for their health
can be obtained. In addition to this, it will position on the basis of higher quality & affordable pricing
strategy.
The group of customers that we aim to sell our products or services to.
The products will be offered to the age group of the 15-55 by covering both the genders male and
female. This is related with possessing the effective focus on targeting people who are looking for
low cots possessing and having higher quality goods in turn accomplishing goal of higher
profitability can become possible.
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Advertising and promotion
[Choose channels that suit your target market. For example, social media use varies across different
age groups. Learn about choosing the best channels to communicate with your customers.]
The channels we’ll use to communicate with our target customers.
Channel Used for Details
Email It is basically used by
organization for the
purpose of sharing the
details to customers their
personalized based
requirements can be
attained.
It will send the information regarding the
customized services available by the firm
to offer the higher ability to overcome their
issue of negative impact on hair and skin.
Social media (unpaid) It is concerned with
possessing the ability to
connect with customers
in turn higher ability to
attain the information
regarding the prevailing
offers in turn higher
productivity and
sustainability can be
derived.
This will provide assistance in gathering
feedback regarding the products used and
in turn m higher reach can be obtained to
cover the greater market share.
Paid advertising For gaining to ranking
on SEO so that good
revenue generating
ability can be achieved.
It is related with possessing the significant
information about the firm’s ability to cover
good market share in turn higher
productiveness situation to get greater
profitability can become possible.
Other This involves spreading
templates about the
varied form of the
products in turn good
awareness regarding
products can services can
be offered.
It is concerned with having the effective
ability to share information regarding
offers, discount, special offer, etc. in turn
higher profitability can be attained.
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The competition
The top 3 businesses we’re competing against, what they do well and not so well. What we’ll do
differently to succeed in the market.
Competitor name Body shop Natural product firm Boots
Strengths Varied products
range
Good supply chain Higher quality service
Weaknesses Higher pricing
approach
Ineffective brand
positioning in market
Inappropriate
feedback mechanism
What we’ll do
differently
It is concerned with
having the significant
market share as
operate in international
market.
Good pricing
approach in turn higher
customer market share.
Higher marketing and
promotional technique
for covering good
market share.
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Pricing strategy
[Explain your pricing strategy and why you chose it.]
How we set prices for our products/services.
For the purpose of having effective ability to cover good market share the focus will be provided
on using cost plus pricing strategy in turn good profitability can be atatined.
SWOT analysis
[Learn how to complete a SWOT analysis for your business.]
Our business strengths, weaknesses, opportunities and threats.
Strengths
What’s good
about our
business.
There is different form of the strengths which are basically obtained by the
organization that involves good financial position, effective supply chain and
effective marketing & promotional supply chain. This is basically related with
obtaining the significant position in turn good form of the capability to
coordinate with the changing circumstances can become possible.
Weaknesses
What’s not so
good about our
business.
There are few lacking areas which is concerned with ineffective ability to
cope up with the higher profitability. This involves in availability of skilled
employees, lack of compliance with legal requirements of the organization
and technological requirement of organization which is has impact on the
overall processing of organization.
Opportunities
External factors
we could take
advantage of.
There is different form of opportunities which is basically related with having
the proper emergence on digital platform. It is related with possessing the
significant approach of partnership and merger with the reputed
organization.
Threats
External factors
that could cause
problems for us.
There are various threats which has the impacted the functioning of the firm
which is related with higher legal compliance with industry. It is concerned
with possessing the significant coordination with health & safety regulations,
etc. there is higher level of competition is prevailing in the market which is
affected the firm.
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How we’ll address each weakness and threat
The firm will give emphasis on having the consultant with the legal advisor so that effective
outcome by gaining the corrective form of the strategy for accomplishing the adherence with rules
and regulation prevailing in market. For the purpose of having effective technological adoption the
focus will be provided on conducting market research in turn higher profitability can be derived.
Marketing & promotional activities in the good form of brand image in market can be done to
overcome competition.
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Risk management
Risk assessment
[Learn about types of risk that could affect your business and how to assess and manage risks to your
business.]
Risks that could impact our business and what we’ll do to protect it.
Risk/impact description Likelihood What we’ll do to reduce this risk
Financial risk due to greater
cost
Highly likely The cost leadership strategy that is helpful
in cost declining to have good profit
margin.
Reputation risk due to higher
competition and quality
management issue
Likely Good marketing & promotional technique
which is helpful in increasing awareness
about the products.
Strategic risk due to
ineffective availability of
human resource
Likely It can be done by making strategic
management application so that corrective
strategy can be formulated
Operational risk due to
availability of required level of
ingredient
Likely Significant total quality management
procedure for having higher standards
products.
Compliance risk due to the
higher legal compliance
Highly likely Training 7 development to enhance
effectiveness in respect to coordinate with
legal requirements.
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Insurance
[If you’re not sure what you need, visit our Business insurance page for more information.]
The insurance we have or need.
Insurance type Details
Workers compensation For security of the employees so that effective results can be
obtained.
Professional indemnity It will protect again the legal action or threats
Product liability It is related with having the liable for the placing pa defective products
into the hands of a consumer
Assets (fire & property) It is helpful in meeting the ability to overcoming the threats associated
with theft or fire of assets.
Other It is related with compliance with the commercial property insurance
in respect to have security.
Succession plan
[What will you do if you decide to step down from your business? Do you have a plan in place in case
something happens to you? Who would you want to take over your business? Consider formally
documenting a succession plan for your business.]
In this case the succession plan is to adopt the good existing strategy in turn good form of
profitability and sustainability can be derived (Inkon, 2019).
Laws we’ll need to comply with
[List the laws that impact on your business including laws specific to your industry.]
consumer laws, employment laws, state licences, health & safety, optimum utilization of resources,
effective adherence to industrial rules and regulations, etc., are required to be taken into the
consideration by firm.
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Goals and actions
[Learn how to set goals that will help your business grow.]
Goals for next year
Increasing marketing
activities
Reducing cost Having effective level
of customer share
Actions to achieve
goal
 Emphasis on
digital marketing
activities
 Focus on
having
involvement of
celebrity for
increasing
awareness
 Higher focus on
feedback
mechanism to
eliminate
irrelevant
aspects
 Using cots
leadership
approach (Barrow,
Barrow and
Brown, 2018).
 Setting standards
via using KPIS
 Identifying
irrelevant aspects
to eliminate the
same for inclining
profitability
 Good marketing
& promotional
action
 Corrective
targeting
 Effective problem
solving
Due date 10/08/2022 11/08/2022 12/08/2022
Who’s responsible Marketing manger Financial manager Marketing manager &
exclusivities
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Goals for the next 3 years
Profitability inclining
by 10%
Declining cost by 10% Increasing market
share via 15%
Actions to achieve
goal
 Corrective
pricing strategy
 Coordinating
with market
trends
 Effective
promotional
practice
 Using KPI to find
deviation
 Paying attention
on eliminating non
crucial activities
 Maximizing profit
margins
 Effectual
marketing practice
 Feedback
mechanism
 Inclining quality of
products to have
higher attention of
customers
Due date 11/06/2025 12/06/2025 13/06/2025
Who’s responsible Financial manager Financial manager Marketing manager
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The finances
[You may find the Australian Taxation Office’s small business benchmarks useful to compare your
performance when completing this section.]
Finance needed
[Delete this section if you aren’t seeking finance.]
How much money we need and what it’s for.
Firm need money of $20000 for buying assets which is highly required for the purpose of having
significant ability to get profitability.
Sources of funding
[Describe sources and amounts of funding that your business has received. Include your own
investment in your business.]
There is owner capital of $30000 and firm is taking $20000 from the bank loan in turn
accomplishing goal of having sufficient funding.
Current finances
[Summarise your business performance over the last financial year in terms of cash flow, profit/loss
and balance.]
How our business performed financially over the last financial year?
The firm is operating newly in market so there is no previous cash flows and in current there is
inflows of $35000
Balance forecast
[You can use our balance sheet template, your own accounting tools or ask your accountant for help]
A summary of our forecast balance for the next 3 years.
[Year 1] [Year 2] [Year 3]
Total assets $50000 $55000 $60000
Total liabilities $20000 $20000 $20000
Net assets $30000 $15000 $20000
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Profit and loss forecast
[You can use our profit and loss template, your own accounting tools or ask your accountant for
help.]
Our forecast profit/loss for the next 3 years.
[Year 1] [Year 2] [Year 3]
Gross profit/net sales $100000 $120000 $140000
Total expenses $40000 $45000 $55000
Net profit/loss $60000 $75000 $85000
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Cash flow forecast
[You can use our cash flow statement template, your own accounting tools or ask your accountant for help.]
Our forecast cash flow for the next year.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly
cash
balance
$12000 $12000 $12000 $12000 $12000 $12000 $12000 $12000 $12000 $12000 $12000 $12000
Closing
balance
$8500 $8500 $8500 $8500 $8500 $8500 $8500 $8500 $8500 $8500 $8500 $8500
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Supporting document checklist
Attached documents (where relevant):
☒ Balance sheet forecast (including assumptions)
☐ Balance sheet for last financial year
☐ Cash flow statement forecast (including any assumptions)
☐ Cash flow statement for last financial year
☐ Market research
☐ Profit and loss forecast sheets (including any assumptions)
☐ Profit and loss for last financial year
☐ Staff resume/s
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References
Books and journals
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-By-Step Guide to
Creating and Developing a Successful Business. Kogan Page Publishers.
Gasmi, A. and et.al., 2020. Individual risk management strategy and potential therapeutic options
for the COVID-19 pandemic. Clinical Immunology. 215. p.108409.
Inkon, K., 2019. A cross-sectional study on the relationship between business plan, entrepreneur
type, development stage and profitability of US SMEs. Academy of Entrepreneurship
Journal. 25(1). pp.1-21.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Online
Marketing Promotion Strategies. 2022. [Online]. Available through:
<https://www.creatopy.com/blog/marketing-promotion-strategies/#f>
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Appendix
Profit and loss account
Year 1 Year 1 Year 1
Particular
s
$ $ $ $ $ $
Sales unit 1000 1200 1400
Selling
price
100 100 100
Sales Revenue 10000
0
12000
0
14000
0
Cost
Sales and
Marketin
g
market research
Utilities 10000 15000 20000
Insurance 15000 15000 20000
Rent 12000 12000 12000
Payroll
tax
3000 3000 3000
Total cost 40000 45000 55000
Profit 60000 75000 85000
Balance sheet
Particular
s Details [Year 1] Details [Year 2] Details [Year 3]
Assets
Long term
assets 40000 40000 40000
Current
Assets: 10000 15000 20000
total
assets 50000 55000 60000
liabilities
bank loan 20000 20000 20000
Share
cpaital 30000 30000 30000
liabilities 50000 55000 60000
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