Developing a New Start-up Venture Based on Skincare Products

This report outlines the new business concept of a start-up venture based on vegan skincare products by fulfilling the demands of customers. It includes a value chain analysis, business model canvas, and risk management strategies.

Report

ABSTRACT
Entrepreneurship refers to an activity of setting up business where entrepreneur take risk
in the hope of profit. It represent as a creation of value. This report is based on develop a new
start-up venture based on skincare products by fulfilling the demands of customers (Gabrielsson
and et. al., 2020). It is very useful for an individual person to understood the business concept
that involves product description, location, values etc. so that new venture is set up properly and
effectively. In this value chain analysis and business model canvas is also involved to develop
more profitable results. In this entrepreneur find potential risk that is associated with business
and offer risk mitigation strategies to cope up with risk and enhance profitability.

Table of Contents
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Explain new business idea..........................................................................................................1
Key components .........................................................................................................................2
Assessment of industry, market, organisation and financial feasibility......................................3
Value chain analysis and Business canvas model.......................................................................8
Risk management model...........................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Entrepreneurship refers to an act of becoming an entrepreneur with needs and skills to
create a successful business venture by taking risk linked with start-up venture (Bauman and
Lucy, 2019). As this report outlines the new business concept with inclusion of description of
product, target market, special attributes, values, scale of business etc. A new start-up venture is
based on vegan skincare products “Everyday Toned”. It is a kind of shop that manufactures
organic skin care products with use of herbs and plant leaves. This report involves description of
product service, special attributes, location, scale of business, who are involved. It also explains
assessment of industry, organisational, market and financial feasibility are also included within
this report. IN addition to this business canvas model and value chain analysis is also developed
on new start-up venture “Everyday Toned”. Further it involved potential risk that were faced by
entrepreneur and its mitigation strategies using risk management model under this report.
Explain new business idea
An entrepreneur create new idea and start a new venture to satisfy the needs of
customers. The new start-up venture is “Everyday toned” that is considered as medium size
company offers variety of vegan skincare products as per individual needs that are very effective
to fulfil individual needs. The main aim of operating a new venture based on skincare products is
to keep customer skin healthy and toned (Bird, 2019). Now a days people are more emphasis on
using customised products that solve their skin issues promptly. Therefore to fulfil demands of
customers, entrepreneur take an initiate to launch new venture where they sell skincare products
that are organic and vegan which does not harm the customer skin because they customised
products as per own needs. This new start-up is medium sized that work under the several areas
of London, UK using online website. After COVID 19, people prefer to shop online so according
to this entrepreneur operate their store using online website, e-commerce sites such as Amazon
etc. where customer easily get the skincare products that fulfil their daily basis demands to make
skin Toned and flawless (Chen, Wang and Lu, 2021). By operate the business “Everyday Toned”
variety of issues are faced by organisation such as managing team, arranging monetary sources
and attract customers. Hence, to satisfy demands and requirements of customers related to skin
this store is very useful and it offer classic and toned skincare products within market of London,
UK.
3

Key components
Products and services
The products that are offered by Everyday toned start-up venture is organic and
customised skincare range that are highly effective for customers who have sensitive skin and
eagerly emphasis on improving the skin health (Arnaert and et. al., 2018). However, they offer
skincare range including make-up products, skin related medicine that are developed with
sustainable and organic material so that it offer natural glow on the people skin who use
Everyday Toned products.
Location
The organic skincare products are primary sold by the business firm official website and
and e-commerce sites (Hjalager and Kwiatkowski, 2018). The start-up venture also sell their
products on their exclusive stores that are opened at the lucrative areas of London, UK so that
large base of customers are attracted towards it.
Target market
The start-up venture mainly target the middle and high level income people who mainly
are environmental conscious consumers.
Special attributes
The special attributes to operate skincare products venture are mainly sustainable
packaging and organic material to pack or manufacture skincare products for users (Liguori and
et. al., 2019). In addition to this another special attribute is that they offer their organic
customised products to customers on affordable price so that large base of customers are
attracted towards it.
Scale of new proposed venture
The scale of new proposed business is medium size where entrepreneur does not invest
high cost on capital and hire human resources. They mainly invest their amount on developing
sustainable and vegan products (Staniewski and Awruk, 2018). Therefore investment done on
maximising the scale of company enhance financial risk due to this losses may occur highly.
Values
This start-up venture values customer needs and requirements by offering customised
range of products (Purnomo, 2019). They also value to offer quality products to customers on
reasonable price so that brand image at marketplace is developed.
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Who will be involved
The main parties who involved in the start-up venture i.e. Everyday Toned are
Employees, investors, suppliers, consumers and shareholders.
Assessment of industry, market, organisation and financial feasibility
Industry feasibility
The organic skincare sector in UK is forecasted to reach US$24.37B by 2024 along with
improving CAGR of 5.2% in forecasted period (2019-2024). Therefore it is done so because of
the shift and change in customer preferences towards the use of organic vegan skincare products,
this sector face impressive growth (UNITED KINGDOM SKINCARE MARKET - GROWTH,
TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 – 2026), 2021). To examine this
entrepreneur invest their creativity and money to operate a organic skincare product venture.
This continuous growth within the vegan products is one of the main reason of operating
Everyday Toned store. Beside this, COVID 19 situation is also enhanced the usage of skincare
products that naturally glow their skin by regularly use their products. Now a days a trend is
develops of minimalist make-up look on the basis of this Everyday toned developed their
profitability within organic skincare products (UK facial care surges-'Skin health is the big
driver', says Mintel, 2020). Therefore 55% enhancement in usage of face cleanser,31% face
toner and 29% mi-cellar water were used by people of UK. In terms of Everyday tones
consumers are highly attracted because of their affordable cost and sustainable range of products.
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Pestle analysis
 Political factor- It is concerned with political condition of country. In UK, Brexit was
occur that mainly affects start-up ventures within UK.
◦ Positive Impact- Due to Brexit, prizes will be reduced that support Skincare
company in constructing exclusive stores at low prize and generate more profitable
results (Darmanto and Yuliari, 2018).
◦ Negative Impact- Due to Brexit, reduction in EU labourers were increased that
impact Skincare firm to pay high amount to labour.
 Economical factor- COVID 19 affect trade restriction that impact negatively on growth
of start-up ventures (Bizri and et. al., 2019).
◦ Positive Impact- Due to COVID 19 trade restriction will occur that develops trends
of online shopping. Hence it helps skincare start-up venture to enhance online sale.
◦ Negative Impact- COVID 19 impact negatively the UK economy that create
hindrances in growth of skincare company.
 Social factor- This involve taste, preference of customers. Maximising in adopting the
skincare routines by customers and their focus on clear skin is major aspect that impact
organic skincare products (Passoni and Glavam, 2018).
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◦ Positive Impact- In this Everyday Toned is able to attract buyers by offering quality
organic and customised products according to individual health and skin
requirements. This helps to generate more profitable results.
◦ Negative Impact- Due to rise in customer focus and their changing perception create
challenge for company to fulfil demands (Duchek, 2018). And because of high
competition present in domestic market firm faces loss.
 Technological Impact- UK is a country that is highly advanced and it also affects
business as because of this company reduce the dependence on labour.
◦ Political Impact- In this Everyday Toned adopts the use of technology in
manufacturing products and services such as using AI, VR that enhance quality of
products and help to earn more profitable results (Overall, Gedeon and Valliere,
2018).
◦ Negative Impact- Therefore using advanced technology also occur threat for
organisation in terms of occurring cyber attacks on business enterprise.
 Legal factor- It include protecting intellectual property because it mainly impact start-up
sustainability.
◦ Positive Impact- The Everyday Toned adopts the use of patent to protect the range
of products which they offer to customer (Goryushkina and et. al., 2019). Due to this
no other company copy their products and attracts customers.
◦ Negative impact- Due to lack of enforcement of intellectual property laws enhance
issue of counterfeit products.
 Environmental factor- In current time increase in environmental concern of consumer
affects the vegan and organic skincare companies.
◦ Positive impact- Due to high emphasis of Everyday Toned on environmental
practices they attract large base of customers where they offer vegan and quality
skincare products to people and encourage their future buying (Indriastuti, 2019).
◦ Negative Impact- The negative impact of increasing the environmental practices is
that it includes high cost that affects their operating cost due to which company
cannot effectively invest in manufactured products to maintain sustainability.
Market feasibility
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 Segmentation- This aspect help company in tailor the approach to fulfil each group
needs in cost effective manner. In terms of new start-up i.e. on vegan skincare products,
Everyday Toned segment their market using demographic segmentation on the basis of
gender, income level etc. as these consumers support in developing sustainable brand at
market that also maximise profitability of business enterprise (Duran-Sanchez and et. al,
2019).
 Targeting- It is very essential to target customer base because of this company can
develop and improve range of products to maintain sustainability (Shashlo, Petruk and
Korostelev,2018). In context of Everyday Toned, new start-up targets demographic
aspects on the basis of gender. This mainly target women and who belong to middle and
high class income. This start-up venture have significantly offer those products which are
vegan or sustainable in nature and provide natural glow to the customer skin. This helps
to generate more profitable results within marketplace.
 Positioning- It demonstrate how business firm will position their brand in marketplace.
The positioning of Everyday Toned start-up company is basically based on developing
sustainable brand image in organic skincare sector in UK. For this start-up venture
includes promotional campaign so that they create awareness in customer eyes related to
usage of products and services so that firm will enjoy long term growth in skincare
marketplace.
Marketing mix for Everyday Toned skincare products:
 Product- Everyday Toned offer organic and customised skincare products where
customer prepare products as they their individual skin type (Nguyen and et. al., 2019). In
addition to this medication is also provided to customers to improve organic make-up
products so that firm generate sustainable position at marketplace.
 Price- In this Everyday tones adopts competitive pricing strategy where they set price
according to their rivals. This helps in attracting customers and also develop sustainable
outcomes to company.
 Place- Start-up skincare venture sold their products to customers using online and offline
medium (Hermann and Bossle, 2020). As it helps to reach the large base of customers at
low cost so that high sustainable results are enjoyed.
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 Promotion- Everyday Toned adopts social media marketing where they advertise their
products to attract large base of customers at low cost.
Organisational feasibility
The Vision of Everyday Toned is to enhance market share in global organic skincare
market.
The Mission of Everyday Toned is based on fulfil their vision by attract large base of
customers to sell offerings on affordable price that are highly consumed by every person.
Competitor analysis (Porter's fivce forces model)
 Intensity of competition- This element includes level of competition intensity within
industry (Teixeira and Piechota, 2019). Hence in organic skincare sector competition is
high as there are number of competitors present in market such as Evolve Beauty, Credo
beauty etc. so it create high competition for Everyday Toned company in earn more
profit by selling products to customers.
 Bargaining power of suppliers- It is low in context of skincare industry. As there are
large number of suppliers who sell same quality organic material to company to produce
products or packaging. Hence, it reduced power of suppliers and beneficial for Everyday
Toned to but raw organic at low cost and attract customers on affordable prize.
 Bargaining power of consumers- In Skincare industry bargaining power of consumers
is moderate because there are lots of alternatives that competitors offers to customers.
Therefore, high prices of most ventures within same industry make sustainable skincare
offerings for elite class but not for every customers. In this Everyday Toned sell products
on affordable prize that attract middle and elite class customers and it helps to develops
sustainable skincare products at low cost.
 Threat of new entrant- This threat in skincare industry is low because there is a need of
high amount investment and it is quite tough for new entrant to arrange funds and make
sustainable skincare products. In terms of Everyday Toned, due to low threat of new
entrant company enjoy long term sustainability and attracts large base of customers.
 Threat of substitute products- The threat of substitute products in organic skincare
brand is low (Ye and et. al., 2020). It is so because home remedies is the only option as
sustainable skincare products. Thus this is not much effective because it is not suitable
for every skin and also it does not give positive outcomes.
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Financial feasibility
Budget
Cash flow
10

Value chain analysis and Business canvas model
Value chain analysis
Primary Activities
 Inbound logistics- This element include managing and sourcing of raw material that are
buy from suppliers. In terms of Everyday Toned, inbound logistics involves collection of
raw material at low cost from suppliers (Bramming and et. al., 2020). However company
easily source raw material because there are number of suppliers present in market who
offer similar quality products to firm in UK.
 Operations- It involves activity that considers conversion of inputs into outputs. In terms
of Everyday Toned, automated manufacturing plants constructed to develop sustainable
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range of skincare products. These plants build to reduce energy consumption. In this solar
energy will be used to maximise sustainability of business venture.
 Outbound logistics- This involve delivering of outputs to buyers. In terms of Everyday
Toned who offer skincare products to customers involve order processing, shipping and
packaging of products (Campbell, Gutierrez and Lancelott, 2017). In this firm
accumulated with logistic departments who are responsible for outsource warehousing
and outbound transportation needs. It is highly justified as an important department
where they ensure that products could be deliver on time. Marketing and sales- It involves market advertising campaign that is essential to pmote
the brand in front of consumers. To promote brand social media aspects are adopted as it
help to reach the large base of customer and this also enhance company sales and
profitability.
Support Activities
 Human resource management- It involves recruitment, training, rewarding skilled
workforce (Kolte, Khandelwal and Jain, 2021). In Everyday Toned, this department is
worked for attracting top talent and retain skilled one so that firm sustainability is
increased. It is effective for skincare firm because it ensures growth of an enterprise.
 Technological development- It is crucial support activity that is used by Everyday
Toned because it maintain excellence of business and gain competitive advantage within
marketplace. In this R&D department emphasis on upgrading technology according to
demand of skincare industry and enhance quality of skincare medication. This also
develop customer experience so that they would retain longer time duration.
Business canvas model
 Consumer segments- It define main segment of customers of firm. In context of
Everyday Toned, they segmented their market on the basis of demographic nature in
which they mainly emphasis on gender and income level. Therefore buyers from middle
income segments emphasis on price sensitive options and in this company firm focused
on this the most to develop customer base.
 Value proposition- Everyday Toned deliver organic and customised range of skincare
products at affordable cost. It solved the issues of those customers who are not buy the
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skincare products due to high price. This purpose generate more profitable results and
attract more customers within Skincare start-up.
 Revenue stream- Sources of company is termed as revenue stream. For Everyday Toned
main revenue stream is direct sale of products in physical outlets and through official
website.
 Channels- Everyday Toned emphasis on using e-commerce channels, official website
and and physical stores to distribute their organic and customised skincare products to
customers (Ferreras-Garcia, Hernández-Lara and Serradell-López, 2020). Hence it is used
to retain customers for longer time period.
 Consumer relationship- In this Everyday Toned emphasis on maintain customer
relationship by regularly interact with them and understand their views regarding
skincare products so that modification would be done accordingly. This also build
company relation with customers that directly impact firm sustainability in positive
manner.
 Key activities- Daily activities or primary activities are included in this aspect. The
primary activity is that firm produce medication and organic skincare products for
develop brand image and sustainability. Secondary they relay on logistic department to
deliver products to customers on time frame.
 Key resources- Workforce, technology, transportation, financial are necessary resources
which are needed to operate a venture smoothly.
 Cost structure- The cost of Everyday Toned will indulge in hiring human resource and
use advanced technology to attain targets. Besides this cost of accumulating logistics
parties are necessary cost for business organization.
Risk management model
RISK SEVERITY RESPONSIBILITY MITGATION ACTION SCORE
(out of 10)
Risk based on
financial
resources
High Top authority By properly evaluate
operations of business and by
maintaining adequate source
of emergency funds.
9.5
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Development
risk
High Directors By hiring skilled and talented
workforce who are highly
passionate about attaining
targets. And timely offer
training to workforce to
attain targets on time
(Saxena, 2021).
7
Group work
risk
Moderate Human resource
manager
By regular follow-ups risk
related to team work is
eliminated.
5
Protection of
Intellectual
property
rights
Low Legal department To protect intellectual
property rights company
emphasis on register their
products and firm using
under patent, trademark so
that rivals does not copied
their products and it enhance
firm sustainability (Flanagan
and et. al., 2018).
3
CONCLUSION
By preceding report it is concluded that entrepreneurship is crucial concept in developing
business entity as because of this new ideas are converted into reality that is useful to attract
more customers. Business development needs completion of several activities and this report
emphasis on build industry assessment to construct an enterprise so that entrepreneur clearly
select target market for business venture. In addition to this, this report also elucidates key
components of new business venture such as products and services, location, values, parties
involves, scale of business after that it demonstrate organisation, market feasibility to effectively
understand industry variables. In this use of pestle, porter's five forces model, stp are included
that are useful to promote brand in marketplace to set the future profitability at marketplace. In
this value chain and business canvas model are also involved that helps to understand company
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key resources, primary activities, secondary activities etc. at last this acknowledge potential risk
using risk management model where mitigation strategies are also framed so that high success
would be ensure of start-up company in marketplace.
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Online
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sees-surge-in-facial-care-during-COVID-19-says-Mintel>
UNITED KINGDOM SKINCARE MARKET - GROWTH, TRENDS, COVID-19 IMPACT,
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<https://www.mordorintelligence.com/industry-reports/uk-professional-skincare-
product-market>
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