Naturelle Beauty: Comprehensive Business Proposal and Analysis

The business proposal outlines the launch of Naturelle Beauty, a new cosmetic brand based in London, offering beauty products made from natural ingredients with customizable options for customers based on their skin and hair types. The proposal details the company's structure as a partnership, highlighting the benefits of shared funding, cost savings, risk distribution, and moral support. It presents the product and service offerings, emphasizing natural ingredients and customization services. The market analysis focuses on the London market, and the proposal also outlines potential exit strategies such as selling the business or liquidation. The financial and legal requirements are also considered, making it a comprehensive plan for investors. The proposal aims to secure funding for the venture and establish Naturelle Beauty in the beauty industry. Desklib provides this assignment and many more to assist students with their studies.

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INTRODUCTION
Introduction
Business proposal can be defined as a detailed document which is presented in front of
investors for the purpose of acquiring funding from them. Main objective for its formulation is to
figure out that the new business idea will be able to get proper funding or not. This presentation
is based upon a new venture which is Naturelle Beauty. This organisation will offer all the
beauty products which are made from natural ingredients and on the other hand customers can
also customise them according to their skin, hair type or their preferences. At initial level Two
stores will be opened in London and then business will be expanded around United Kingdom.
This presentation includes different elements of proposal which includes type of new venture,
product and service offering, market place, exit strategy, financial and legal requirements.
Business proposal
Overview of business
Naturelle Beauty is a new cosmetic brand which will be launched in London at initial
level and then business will be expanded in United Kingdom according to responses of
customers. The founders have planned to use all the natural ingredients to manufacture all the
products. It has been planned by the top level executives that all the beauty items could be
customised by clients according to their hair or skin types. They can also guide the company to
ignore of add specific ingredient in their product according to their requirements. Firstly two
stores will be opened in different locations in London and then decision regarding expansion will
be made according to market demand.
Type of new venture
While planning to introduce a new business concept in the market all the firms are
required to justify their type of venture. There are various types of them which are described
below:
Sole proprietorship: A business which is operated and controlled by a single person is
known as sole proprietorship. In this type of business only the owner is responsible to face all the
losses and keep all the profits. Decision making is also performed by the individual who is
responsible to manage the business.
Partnership: When a business venture is operated by two or more individuals then it is
considered as partnership business. All the owners in this type of company are responsible to
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bring capital for effective execution of operations. Profit and losses in partnership are distributed
within the partners on a specific percentage which is being decided by them in advance. All the
decisions for betterment of business are formulated by all the partners.
Corporation: It can be defined as a group of companies which are working together to
accomplish a long term goal. A corporation is a large entity which is controlling different small
businesses. All the decisions in such businesses are taken by the board of director which is a
group of individuals.
Limited company: It is a type of private company in which all the owners are
responsible for the debts is known as limited company. All the liabilities in this type of venture
are limited and owners are only responsible to the extent of the capital which is invested by
them. Such businesses could be limited by liability or guarantee.
From all the above described different types of ventures Naturelle Beauty will be
following partnership. All the investors who will invest funds within the organisation will take
part in decision making process and they will have power to influence the decisions. All the
partners of the organisation will be sharing profits and liabilities of the company. There are
various benefits of partnership to the entity. All of them are as follows:
Higher funding: When partnership business structure is followed by an organisation
then it helps to bring higher funding within the enterprises. It if beneficial for execution of all the
operations in systemic manner because when there will be sufficient funds then it will be very
easy for the businesses to perform all the planned activities properly. As Naturelle Beauty is a
partnership firm therefore this benefit could be acquired by it which will help the management to
perform all the activities properly.
Cost saving: It is one of the main benefit which could be acquired by a partnership
business because there are various partners within the organisation who can provide expert
advice regarding proper execution of operations. It will be beneficial for Naturelle Beauty
because the company will not be required to hire experienced staff members who can provide
guidance to take effective decisions.
Equal distribution of risks: In partnership firm risk is distributed by all the partners
equally. It facilitate all the owners to bear a lower level of losses which have acquired for the
year. As Naturelle Beauty is a partnership business therefore for all the partners it will be a great
opportunity to reduce their risk as all of them can segregate it on a predetermined rate.
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Moral support: In partnership firms all the partners play essential role to provide moral
support to each other which help them to remain calm and take right decisions. All the
individuals who are owners in Naturelle Beauty will also be benefited with the help of business
venture because all of them will provide moral support to each other. It will help them to deal
with all the critical situations properly and respond to all the difficulties properly.
From the above discussion it has been analysed that partnership business venture will be
beneficial for the investors of Naturelle Beauty because all of them will be able to get higher
returns on this investments. In case of losses all the risks will be faced by all the owners equally.
Possibility of low return will be very low for them because the cost of hiring experienced
individuals will be low which will help the firm to save monetary resources to carry out
operations in systematic manner. By making investment in Naturelle Beauty investors will get
benefited as they may get higher returns on total money which will be invested by them within
the entity.
Product and service offering
Product and service offering can be defined as the facilities or items which will be
offered by an organisation to the potential clients. In order to carry out all the operations in
systematic manner it is very important for all the entities to offer such items to the customers that
they are willing to buy. On the other hand, while planning to offer new goods it is essential for
all the companies to analyse that the items which will be sold by them are able to meet
expectations of targeted audience. Naturelle Beauty is a new partnership firm which will be
operating business in beauty product industry is planning to offer such products to the customers
that are made from natural ingredients. No chemicals will be used by it to produce the items.
Such types of products are having higher demand in market because with the help of them
customers can reduce negative impact of chemicals and other harmful ingredients on their skin,
body and hair. The organisation have also planned to provide facility of customisation to the
customers in which they can customise all the items according to their choice or their skin and
body type. It will be beneficial for the organisation as well as the targeted audience because if
they are allergic to an element then they can ask the organisation to avoid it in their product.
Detailed description of all the product and service offerings is as follows:
Natural ingredients: All the beauty products that will be sold by Naturelle Beauty will
be made from natural ingredients which will help the customers to keep themselves young.
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Currently, there are various beauty brand which are offering such items but they are not only
using only natural ingredients but also chemicals. Naturelle Beauty have decided that any type of
harmful supplement will not be used in its products which may leave negative impact upon skin
on customers. This idea of the organisation will help to attract large number of customers and
satisfy their needs. At the initial level the management have decided to distribute free samples to
the customers in specific markets so that they can experience it and get aware of all its benefits.
Customisation service: Naturelle Beauty have decided to provide customisation services
to the customers so that they can customise the products according to their requirements and
choices. For example, if a client is allergic to coffee then management could be asked to avoid to
use it while manufacturing the product. With the help of it, the targeted audiences could be
satisfied. The organisation also provide facility of customising the products according to skin
body and hair type. For example, if customers are having oily or dry skin then they can ask to
make the product and use ingredients accordingly so that the item can suit to their skin.
Naturelle Beauty have decided to offer both the above described services and products to
the customers so that all their needs could be fulfilled and business could be established
successfully. By offering all these products and services the organisation will be able to
strengthen the customer base as they will be satisfied with all the facilities and items that will be
sold to them by Naturelle Beauty.
Market place
Market place is the piece of market where a business is being introduced. As Naturelle
Beauty is a new venture so it is very important for it to make sure that an appropriate market
place is being selected by it to establish the business. The selected market where its stores will be
opened is London. The management have decided that business will be expanded after analysing
market demand of its products. When it will be high then new stores will be opened in different
locations of United Kingdom.
Exit strategy
When a business is not able to sustain in the market then it will be beneficial for it to exit
from the market so that possibility of getting insolvent could be ignored. As Naturelle Beauty is
a new business which will be launched in London therefore it is essential for it to analyse best
exit strategies for it. If it get failed in establishing the business business successfully then these
strategies could be used by it to exit from the market and avoid possibility of bearing huge
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losses. Some of the main options which are available to it are selling business to another
business, liquidation etc. Description of all of them is as follows:
Selling business to another business: When a new venture is not able to attain success
in the market and willing to ignore the huge losses then thus strategy is adopted by them so that
they can avoid the situation of becoming insolvent. As Naturelle Beauty is a new business
therefore it is essential for it to determine best exit strategy for itself in future in case of getting
failed in the market. It can sale itself to another business in the same sector which will help it to
get exact value of its shares and ignore to get insolvent. There are various beauty products in the
and the organisation can sale itself to any of them so that partners can recover all their amount
which was invested by them in business as capital. In case of getting failed in the establishment
plan this option could be adopted by it.
Liquidation: It can be defined as the process of taking the business to the end and
distributing all the assets to the claimants. It is used by a business when it is not able to attain
success in the market. When this option is selected by an entity then all the assets are sold in the
market and all the payments are made to the creditors. As Naturelle Beauty is a new venture
which will be introduced in the market and in case of getting failed in the launching the entity
may select this exit strategy. By choosing this option the organisation will be able to pay all the
liabilities successfully.
Both the above described strategies could be used by Naturelle Beauty if it is willing to
exit from the market in case of getting failed in the goals of establishing itself successfully. By
using them the firm will be able to shut the business appropriately and pay all the liabilities.
Financial requirements
All the businesses require funding to carry out all the operational activities successfully.
For Naturelle Beauty it is very important to determine all its financial requirements and then
arrange funding according to it. A budget which reflects the finance related needs of the
organisation is as follows:
Particulars Amount
Market research 12000
Raw material 1500000
Recruitment of skilled staff 80000
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Salaries to employees 120000
Warehouses 50000
Plant and machinery 1000000
Rent for corporate office 45000
Rent for stores in London Market 80000
Advertisements 18000
Promotions 26000
Total 2931000
From the budget it has been determined that in order to establish the the business of
Naturelle Beauty successfully it will be very important for the management to arrange funding of
around 3000000 Pounds. With the help of appropriate funding the organisation will be able to
perform all the operational activities in systematic manner. Lack of funding may result in
inappropriate execution of planned operations and huge losses for the business. It is very
important for the staff to use funds properly so that they can reach to the targeted goals such as
establishing business successfully and capturing a large market share.
Legal requirements
All the business ventures are required to comply with different legal requirements which
are imposed by governmental bodies. For Naturelle Beauty it will be very important to make sure
that all of them that are developed by legal authority of United Kingdom are taken in to
consideration by it. With the help of it, all the operations could be carried out smoothly.
Ignorance of them may result in interference of legal authorities in business. Some of the major
legal requirements for the entity are as follows:
Formulating partnership deed: When a partnership business is established then it is
very important for all the partners to make sure that they develop a deed in which detailed
information of business is mentioned. If they are not able to formulate it then it may result in
conflicts in future because partners may have grievances regarding the ratio of distributing
profits. According to UK law it is very important for partnership firms to generate a deed so that
al the partners can decide the rate at which profits will and losses will be distributed among
them. As Naturelle Beauty is a new business which will be introduced in UK therefore it is very
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important for all its partners to make sure that they generate a deed and incorporate detailed
information of business in it to ignore conflicts and legal actions in future.
Partnership act 1890: This act was passed by parliament of United Kingdom which was
mainly formulated for all the partnership firms for the purpose of governing all the duties and
rights of people involved in a business which is executes in the form of partnership firm. For all
such types of companies it is very important to make sure that this act is focused by them while
carrying out business so that possibility of legal actions of governmental parties in future could
be ignored. For Naturelle Beauty it will be essential to take this act in to consideration so that it
can operate all the planned activities in properly and according to governmental guidelines.
Conclusion
This presentation concludes that for all the businesses which are going to be established
in the market it is very important to make sure that attractive proposal should be formulated so
that large desired investment could be acquired. There are various types of elements which are
required to be focused by owners of businesses. These are venture type, market place, exit
strategies, legal and financial requirements. By keeping detailed information regarding all of
them the organisation will be able to deal with all the negative situations which may take place in
future and affect functionality of entity. If all these elements are not focused by an entity then it
may result in failure of the new business which is going to be introduced in the market.
References
Spinelli, S., Ensign, P. C. and Adams, R. J., 2014. New venture creation. McGraw-Hill
Ryerson.Plummer, L. A., Allison, T. H. and Connelly, B. L., 2016. Better together? Signaling
interactions in new venture pursuit of initial external capital. Academy of Management Journal.
59(5). pp.1585-1604.
Cardon, M. S., Post, C. and Forster, W. R., 2017. Team entrepreneurial passion: Its emergence
and influence in new venture teams. Academy of Management Review. 42(2). pp.283-305.
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