BUS302 - Business Plan: Ideal Company Ltd. Beauty Products, 2018

This business plan outlines the strategy for Ideal Company Ltd., a Melbourne-based startup focused on producing and distributing women's beauty products. The company aims to provide high-quality, affordable beauty products made with natural ingredients, targeting women aged 18-80. The plan details the company's mission, marketing strategies (emphasizing social media), operational plans (including sourcing from local farmers), and financial projections, seeking $100,000 in private equity investment to supplement the founders' initial $100,000. The report includes startup costs, cash flow forecasts, and profit and loss statements, with the goal of achieving profitability within the first year and expanding operations across Australia. The company's unique selling proposition is based on offering 100% organic, high-quality beauty products at a fair price.

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.

Ideal Company Business Plan 3

Ideal Company Business Plan 4
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

Ideal Company Business Plan 5
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

Ideal Company Business Plan 6
Table of figures
Figure 1.......................................................................................................................................................6
Figure 2.....................................................................................................................................................15
Figure 3.....................................................................................................................................................17
Figure 4.....................................................................................................................................................18
Figure 5.....................................................................................................................................................18
Figure 6.....................................................................................................................................................19

Ideal Company Business Plan 7
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

Ideal Company Business Plan 8
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

Ideal Company Business Plan 9
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

Ideal Company Business Plan 10
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

Ideal Company Business Plan 11
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

Ideal Company Business Plan 12
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