Skin Plush: A New Business Idea for Cosmetics Industry

This report discusses Skin Plush, a new business idea for the cosmetics industry. It covers the proposed future business, target customers, competitors, skill analysis, profit and loss account, suitable funding sources, plan to obtain resources, management information system, and vision for the business idea.

BM564 ENTERPRISE AND
ENTREPRENEURSHIP
CW2

Table of Contents
INTRODUCTION...........................................................................................................................3
Task .................................................................................................................................................3
Proposed future business..............................................................................................................3
Customers....................................................................................................................................4
Competitors..................................................................................................................................4
Skill analysis................................................................................................................................5
Profit and loss account ................................................................................................................5
Suitable funding source................................................................................................................6
Plan to obtain resources...............................................................................................................6
Management infromation system ................................................................................................6
Vision for business idea...............................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship is defined as converting the vision into the successful business idea.
This project will be discussion the new business idea call as Skin Plush. The company is
involved in providing the cosmetics to all its customers. This report will discuss about the
business idea adopt by the business venture. The proposed business idea will be discuss in this
project. Further, potential and target customer associated with the venture will also be a part of
discussion. Competitor of the firm will also elaborate in this project. Skill analysis will be done
to successfully launch the whole business idea in market. 2 years projected profit and loss
statement will also present in this report. Type of organisation and management information
system will also be discussed in this project. Vision of the business will be discuss as well.
Task
Proposed future business
The Skin Plush is a company that will be offering the various skin care products to its
target customer in market. The organisation will offer the variety of the product line that would
allow the organisation to support its overall need and demand of the customer in respective target
market. Company is planning to launch a cream that will create a different facial impact of all its
users. The product line of company will be associated with both the genders. The company is
further involve different variety of products that can match up with the overall need and demand
of the target customer in respective target market (Buschgens, Figueiredo and Rahman, 2020).
This cream will provide the complete skin nourishment to its users that will significantly
improve the glow of its users. The product line is well diversified as it will be involve different
features such as skin care, nourishment and such other feature that is required for a healthy skin.
Company hold a vision to provide the long term skin care effect after using the product. The
organisation want that its customer must feel confident after using the cream as look create a
massive level of impact on the confidence level people hold. This product will also support the
customer to achieve all the dreams. Innovation is also used in order to design the product. As the
cream is well efficient to protect the skin from all the damage made by the sun and pollution.
The rights of this product will be reserved by taking a license against the product design. Patent
will be taken to protect the business idea.

Customers
The Skin Plush is associating its product line with all different customer base. The B2B
and B2C both type of customers will be targeted in against of delivering the business idea. The
new cream launch by the company will target to all the women as well men customer. The
product is for all types of professionals and graduates and normal human being. The product
contain the wide range of customer base as it can use at any occasion by the customer which will
further improve the reach of this product line (Glucksman, 2017). This product will support and
help the customer to gain the confidence, good look and all other features that may improve the
self confidence along with improving the fairness for the customers. Henceforth, it can support
as a fact that the product line is capable enough to cover and target all types of customer base in
order to achieve better control. B2B category of customers will also be a part of the customer
base. As the positioning of this product like will be done in such manner that all areas of
customer profile can be covered by the organisation.
Competitors
The Skin Plush will face the competition from all different business houses operate the
operation in the skin or beauty care sector. The companies like Bloomtown, Neal's Yard
Remedies, Awake Organics, FOM London Skincare and such other. The organisation will be
facing competition form retailers as well direct seller. The competition is further be faced in
offline market as well online market as well (Kulle and Hellsten, 2017). The skin care is a huge
sector as the demand in market is massive that could further attract to immense level of market
competition. The Skin Plush will need to face the competition that would further reduce and
restrict the business growth and development possibilities in respective target market. The
competition need a proper strategy to implement by company in order to take on the competitive
edge in respective market. IN against to approach the hihg level of success in the market this
become necessary fro the company to take on the competitive advantage by adopting the
effective level of strategy in the market.
Skill analysis
Skills are the ways top deliver the all different operations adopted by the organisation. In
against to execute the business operations there are various skills like research skill,
communication skill, selling ability, problem solving ability, decision making ability and plenty
of other hard and soft skills that need to hold by the entrepreneur in order to achieve success

against launching of the new business idea. All these are the primary skill that will be needed so
that business operations can successful implement (Mao and et.al., 2020). Along with all these
there are plenty of other skills and abilities as well such as leadership ability, management skill
and such other are also require to execute all different operations attached with the new business
venture. Skills and abilities allow the entrepreneur to approach the business operations
successfully along with it support in achieving all different business objectives.
Profit and loss account
Year 1 Year 2
Sales (10/ unit) 500000 800000
Less:
Variable cost 150000 250000
Contribution 350000 550000
Less:
Fixed cost 200000 200000
Profit 150000 350000
Break even point 28571 (200000 / 7) 50909 (350000 / 6.875)
Suitable funding source
The launch of the new business idea will consider the suitable funding requirement that
will allow the venture toi support all its operations requirement. The various sources will be
appropriately by the company in against to deliver the operations of company. The funding
sources will involve bank finance, private finances, angle investors, personal contact and such
other will be explored in against to manage all the funding requirement of the Skin Plush. All
these sources are sufficient to manage all different business requirement (Rungfarsangaroon,
2018). This is important for the company to identify its financial need and on the basis of its both
short term as well long term financial requirement company need to approach all different
funding sources. The bank finance will be a right suitable method to approach the funds as this

will further allow the company to take the tax related compensation ad also the benefits in the
income tax deductions. Henceforth, it can be stated as a fact that all these are the potential
funding sources that would allow the venture for ensuring the mitigation of all different business
objectives of company. The company hold the huge growth and development opportunity that
can mitigate by the venture with the use of right sort of finances and the funding resources for
approaching the overall business operation in market.
Plan to obtain resources
The plan is to hold the ownership of all different tangible and intangible resources hold
by the company. Resources are the basic need part of delivering the business operations. The all
different resources will empower the company for approaching the entire business operations in
the best way possible. Tangible resource scan physically be experienced and touch by the
stakeholders whereas the intangible resources will not be able to look around (Singh and Mittal,
2020). The planning phase would involve the total cost of 1500000, implementation phase would
involve the cost of 2500000 and the operational cost will be 1000000. Henceforth the total
estimated cos will be 5000000.
Management infromation system
The management of the Skin Plush will be sustain with the use of proper information
technology equipment and the systems. All these will be able to utilise in the best way possible
so that bets level of control can establish by the venture (Viejo-Fernandez, Sanzo-Pérez and
Vázquez-Casielles, 2020). System will include computer, technical system and other such set up.
The role of information technology is to establish the connectivity in between management and
both internal as well external stakeholder of the organisation.
Vision for business idea
The vision of the company is to deliver the best suitable experience to the customer in
against to use the product. The vision of the organisation is to delegate the best suitable control
and the experience to the customer by utilising the Skin Plush products. Company want to
delegate the skin care in the most affordable price stricture.
CONCLUSION
The Skin Plush want to launch a new product call as a cream. This will be a beauty
cream that can be used by all types of customers. The organisation will be require to sustain a

good control in operations and other functional areas to approach the business operations in the
best way possible.
REFERENCES
Books and Journal
Buschgens, M., Figueiredo, B. and Rahman, K., 2020. How brand owners construct imagined
worlds with brand visual aesthetics. Journal of Brand Management. 27(3). pp.266-283.
Glucksman, M., 2017. The rise of social media influencer marketing on lifestyle branding: A
case study of Lucie Fink. Elon Journal of undergraduate research in
communications. 8(2). pp.77-87.
Kulle, J. and Hellsten, J., 2017. The Beauty of Brand Loyalty:–a case study of how marketers
view Millennials' brand loyalty in the beauty industry.
Mao, J. Y. and et.al., 2020. Responding in kind: How do incumbent firms swiftly deal with
disruptive business model innovation?. Journal of Engineering and Technology
Management. 57. p.101591.
Rungfarsangaroon, W., 2018. A Study of the Factors Influencing the Rejection of Men Skincare
Products Among Thai Male Millennials. Master of Science Program in Marketing
(International Program). Faculty of Commerce and Accountancy, Thammasat
University.
Singh, S. and Mittal, S., 2020. “Yes Madam”: digitized services right here and right
now. Emerald Emerging Markets Case Studies.
Viejo-Fernandez, N., Sanzo-Pérez, M. J. and Vázquez-Casielles, R., 2020. Is showrooming really
so terrible? start understanding showroomers. Journal of Retailing and Consumer
Services. 54. p.102048.