Sweet Touch Perfume: A Detailed Business Plan for Perfume Production

This document presents a comprehensive business plan for Sweet Touch Perfume, a startup focused on producing and selling perfumes and body sprays. The plan details the company's mission, vision, and objectives, emphasizing the creation of high-quality, enticing, and affordable fragrances. It includes a market analysis targeting students, workers, and businesses in Aba, Nigeria, along with a production plan outlining raw materials, the production process, and a marketing strategy focused on quality, customer service, and a pleasant environment. The plan also covers the organizational structure, financial projections, including startup costs, funding sources, cash flow analysis, profit and loss statements, balance sheets, and a breakeven analysis. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats, concluding with a projection of a profitable venture with high-quality products and excellent customer service. The plan seeks to secure N250,000 in funding to cover startup costs, including shop modifications, equipment, and operational expenses for the first year.

i
BUSINESS PLAN
FOR
PERFUME
PRODUCTION

ii
EXECUTIVE SUMMARY
A perfume is a mixture of fragrant essential oils or aroma compound, fixatives
and solvents used to give the human body and other inanimate objects a pleasant
scent. However, producing good fragrance, therefore, perfume business is a
lucrative business. It is on this basis that motivated Sweet Touch Perfume to be
initiated. However, Sweet Touch Perfumes will be a perfume company with
dynamic perfume and innovative technology/advancement. Sweet Touch
Perfumes will be located at 165 Aba Owerri Road, Aba with the following goals:
provision of enticing and good fragrance perfumes at affordable rates. The
financial flow contained in this business plan when adopted and implemented will
assist in successful establishment of this firm; it will entails staffing, inflow and
outflow of finances etc. The establishment of this business is targeted at N250,
000. The supplemental financing is required to begin work on the rented shop for
groundwork and modifications, equipment purchases, and to cover expenses in
the first year of operations
Sweet Touch Perfume will be registered with Corporate Affairs Commission
(CAC). This will shield the entrepreneur from double taxation. The financing, in
addition to the capital contributions from the owner and part from friends. Sweet
Touch Perfume will open and maintain operations through the first year.

iii
Sweet Touch Perfume will be a full time production business entity dedicated to
providing high customer satisfaction by rendering excellent products, which are
enticing and at an acceptable price.
Mission and vision:
 creating a better-quality perfume product with enticing and lasting
fragrance
Aims/Objectives of the business
 Beyond becoming a profitable business, we aim at being a trusted
destination where clients can acquire the best perfume and body sprays.
 We also intend to enlarge our coast by including other deodorants and
creams which are necessary for body maintenance.
 Organizing of training centres for young entrepreneurs who are interested
in perfume and body spray production
CRITICAL SUCCESS FACTORS
 We are determined to make quality products that will distinguish us from
others.
 We employ staffs who will be taught good management practices and
customer relationship.
 Create a serene environment for the training of the young entrepreneur who
will be employers of labour.

iv
VALUE PROPOSITION
Sweet Touch Perfume will be known by all and sundry as an eminent product
which serves the purpose for which it has been produced.
Start – up Business
Sweet Touch Perfume have some equipment that is necessary for the business
such as mixing bowls, hand gloves and containers.
MARKETING PLAN
Product description
Sweet Touch Perfume will engage in the production of perfumes and body sprays
which shall be made available at affordable prices.
Services description
Sweet Touch Perfume will be considered as an enterprise that reaches the
expectation of its customers through provision of;
 A tranquil and motivating environment for training of entrepreneurs.
 Skillful, competent and experienced staff for gainful services.
Customer service
We have it in mind to display our products as well as engage in promo for the
few weeks of the production.

v
Target market
Sweet Touch Perfume target markets are the students, workers and even business
men that is why the business is located at the heart of the town where institution
is located. We have tried to envisage a situation where all and sundry that desire
to look good to his best taste or preference be satisfied. This entails the students
and workers at the institution that is few kilometer from the location of the
enterprise, working class personnel in the town where the enterprise is located,
the travelers who stops by and as well for families living around who desire the
best for their family members. The enterprise customers are expected to grow by
15% per annum.
PRODUCTION PLAN
Description of location
The business is located is Aba due to the nearness of some markets where the raw
materials for the production can be easily procured.
RAW MATERIALS
The raw materials required for the production of the perfume include
 Methanol
 Propylene
 Water
 Fragrance (Cool river, smart and blue dream)

vi
PRODUCTION PROCESS
Let the bowel be wet with of de-ionized water, add the 2 episol fragrance, then 2
litres of methanol, a quarter litre of propylene and a quarter litre of water into the
bowel. Then stir with a wooden stick for about five (5) minutes and sieve. Pour
it inside a container and leave it in a dark room for 24 hours in order for the
materials to be concentrated.
MARKETING STRATEGY
Sweet Touch Perfume distinctive selling scheme will be our perspective of
strategizing to being experts at what we do, good customer service, and creating
a pleasant environment for our individuals who are interested to learn.
SALES PLAN
For the first few months of our production, we intend to engage in an awareness
campaign as well as engage in promo where buying two of the perfumes or body
spray will award one extra.
COMPETATIVE ANALYSIS
There are other few number of perfume and body spray producers around but are
situated in a part that is easily accessible to our clients. Most importantly, most
people in the business locality are reputable workers in institutions and
government parastals and therefore desire quality products as well as affordable.
Our business atmosphere will be a relaxing one where clients are highly attended
to.

vii
ORGANIZATIONAL STRUCTURE
Management team
Miss Amajuoyi Maryjane Ngozi is a well-known producer who has been in the
field for some years, therefore she decide to enlarge her entrepreneurial skills
acquired through GNT 411 (Practicum) by setting up this business for the
production of quality perfumes. She is an undergraduate of Chemistry and has the
managerial abilities to guide and lead the operational activities in the business
enterprise. She also intend to employ the services of some professionals such as
Miss Udeofia Rosemary Ogechukwu will be the Production Manager. She is
also an experienced chemist who has been in the production of perfumes for a
very long time.
Miss Esther Dinne will be the Sales and marketing Manager. She is an
undergraduate of Chemistry and holds a Higher National Diploma Certificate
Holder in Business Administration, She possess great abilities for figures and
calculations.
FINANCIAL STATEMENT AND PROJECTION
The equipment necessary to provide Sweet Touch Perfume customers with high-
quality products make up a large portion of the startup cost. The cost will include;

viii
i. CAPITAL PLAN
1. SOURCES OF FUND
I am seeking to raise ₦100,000.00 from bank as a bank loan. The interest rate and
loan agreement are to be further discussed during negotiation. This business plan
assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
2. USES OF FUNDS
ITEM QUANTITY AMOUNT (N) TOTAL (N)
Business Registration
(CAC, Market
Association etc)
- - 30,000
Rent (1year) 12 months 3,000 36,000
Methanol 4litres 400 1,600
Propylene 2litres 300 600
Fragrance 3 episol 400 1,200
Pure Water 6 litres 100 600
Miscellaneous - 30,000 30,000
Generator - 70,000 70,000
Wages(1year) - 80,000 80,000
TOTAL - - 250,000

ix
3. REPAYMENT OF FUNDS
CASH FLOW ANALYSIS
Cash flow analysis yearly
Year 1 2 3
Cash from operations ₦152225 ₦222217 ₦289262
Cash from receivable 0 0 0
Operation cash inform ₦152225 ₦222217 ₦289262
Other cash inflows
Equity investment 25000 0 0
Increased borrowings 125000 0 0
Sales of business asset 0 0 0
A⁄P increase 37902 43587 50125
Total other cash inflow 187902 43587 50125
Total cash inflow 340127 265804 339388
Cash outflows
Repayment of principal 8079 8837 9666
A⁄P decreases 24897 29876 35882
A⁄R increases 0 0 0
Asset purchases 112500 55554 72316
Dividends 106558 15552 202484
Total cash outflows 252034 248820 320317

x
Net cash flow 88093 15895 19071
Cash balance 88093 104078 123149
vi. FINANCIAL SUMMARY
1. PROFIT AND LOSS STATEMENT
Year 1 2 3
Sales 65529 714166 778500
Cost of goods sold 65529 71427 77855
Gross margin 90.00% 90.00% 90.00%
Operation income 589751 642839 700,695
Expenses
Payroll 243,000 250290 273712
General and
administrative
14400 14976 15575
Market expenses 13761 15000 16350
Professional fee
and licensure
25000 25750 26523
Insurance costs 7500 7875 8269
Travel and
vehicles costs
15000 16500 18150
Rents and utilities 17500 18375 19294

xi
Miscellaneous
cost
4915 5357 5839
Payroll taxes 36450 37544 41057
Total operating
costs
377526 391666 424768
Federal income
tax
70038 78862 275927
State income tax 10,612 11949 13236
Interest expenses 131707 12197 11202
Depreciation
expenses
5893 5893 5893
Net profit 112586 148165 164129
Profit margin 17.18% 20.74% 21.08%
2. BALANCE SHEET
Balance sheet yearly
Year 1 2 3
Assets
Cash 88093 104078 123149
Amortized development ⁄expansion costs 52500 58055 65287
Inventory 35000 62777 98935
Franchise fee 25000 47222 76148
Accumulated depreciation 8036 16071 24407
Total asset 192558 256061 339411
Liabilities and equity

xii
Account payable 13005 26716 40990
Long term liabilities 116921 108084 99247
Other liabilities 0 0 0
Total liabilities 129926 134800 140236
Net worth 62632 121261 199175
Total liabilities and equity 192558 256061 339411
3. BREAKEVEN ANALYSIS
Year 1 2 3
Monthly revenue 40693 42545 44462
Yearly revenue 488319 510540 533545
Raw materials
The following are some of the raw materials needed for production of perfumes:
Methanol, propylene, fragrance ,glycerine, de-inoized water.
Owners contribution: N150, 000 of the capital will be provided by the owner of
the business as well as contribution from friends and family and N100,000 will
be borrowed from friends and also duly paid back.
SWOT ANALYSIS
Strength: Emphasis is laid on quality of products and concentration on a position
market which allows a potential high mark up. We have excellent location and

xiii
new equipment, agile with employees and low running cost. The employment of
part-time workers will allow us to adjust to more enlarge services and output in
short term as required.
Weakness: A 30 – day credit services requisite on our products will be necessary
to gain clients, but cash purchase of equipments and machine means that the
business needs external finance in the early stages. This may reduce our daily
working target and also meeting up with the projected returns per annum.
Opportunities: According to our field study and statistics collected, there will be
inflow of population into the locality where the enterprise is based due to the
establishment of the tertiary institution.
Threats: there are other perfume producers within the environments, therefore
the competitive spirit is very high as well as the request for lower prices which
may affect the profitable ability of the business
CONCLUSION
The survey carried out showed that though there may be challenges encountered
but we envisaged a profitable business venture which will as well train upcoming
entrepreneur. Our service will be sought after due the high quality techniques
employed as well as good customer services. The quality will be very high in
order to outwit our competitors in the market.