I. Executive Summary
This Section's Contents
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Business Overview
[Company Name], located in [insert location here], is a cosmetics manufacturing company focused on providing high-quality, all-natural makeup, beauty products, and other skincare products. The company will distribute its products nationwide to all major beauty supply stores and select department stores. The Company’s products will also be available directly to consumers via their website.
Products Served
The Company will manufacture and sell the following products:
- Cosmetics, including face powders, eye shadows, lipsticks, and mascaras
- Haircare products
- Face and body creams and lotions
- Sunscreen
- Bath salts
- Deodorant
- Nail care preparations and nail polishes
Customer Focus
[Company Name] will primarily offer its products retail locations and e-commerce buyers. The demographics of the customers are as given below:
- Individual Buyers: 32%
- Beauty Salons: 48%
- Retail Locations: 20%
Management Team
[Company Name] is led by [Founder’s name], who has been in the cosmetics manufacturing business for [x] years. While [Founder] has never run a cosmetics company himself, he has extensive experience and in-depth knowledge of managing a certified cosmetic company, including the operations side, such as running day-to-day operations as well as handling the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for cosmetic and beauty products in the U.S. In addition, the company surveyed the population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The major strength of being a cosmetics manufacturing company is the vast experience of the management team. It has people on board who understand how to grow business from scratch to become a national phenomenon.
- The Company will use high-quality and exceptional packaging materials which are environmentally friendly.
- The cosmetics business has proven to be a successful industry in the United States.
Financial Highlights
[Company Name] needs an estimate of $400,000 to set up the cosmetic production plant successfully.
Specifically, these funds will be used as follows:
- Manufacturing equipment and plant setup: $300,000
- Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
​​Top line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
