Skin Care Business Plan Template
If you want to start a Skin Care business or expand your current Skin Care business, you need a business plan.
The following Skin Care business plan template gives you the key elements to include in a winning Skin Care business plan.
Skin Care Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is an American skincare retailer that sells organic skin care products. The Company believes that having a healthy skincare routine promotes a healthy lifestyle; that is why its products contain natural active ingredients that are clinically proven to ensure best-in-class skin health solutions.
Products Served
The Company provides the following skincare products:
- Retinol Oil- holistically infused with advanced organics to enhance skin clearing and anti-aging properties
- Sunscreen
- Facial Oil
- Moisturizers for men
- Face Wash for men and women
- Cleansers
Customer Focus
[Company Name] will primarily merchandise its product to residents living within a 5-mile radius of the retail store. The demographics of the customers are given as below:
- Female residents: 27,394
- Male residents: 16,345
- Average Income: $45,800
- Married: 82%
- Working professionals: 63%
- Median Age: 30 years
Management Team
[Company Name] is led by [Founder’s name], who has been in the skincare industry for [x] years. During her extensive experience in the skincare industry, she acquired an in-depth knowledge of the essential oils required to maintain a healthy skincare routine. Additionally, she had experience managing and running a cosmetics business before she started [Company name].
[Founder] graduated from the University of ABC where she majored in Cosmetic Science. She also has a certificate in business management from the local management institute.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for an organic skincare retailer in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
- The Company’s location is in a high-volume traffic area and will thus be highly convenient to a significant number of residents living nearby.
- The management team has a track record of success in the skincare cosmetics business.
- The skincare cosmetics business has proven to be a successful industry in the United States.
- Market trends such as changing lifestyles are bringing people closer to self-care and thus increasing user preference for various skincare products.
Financial Highlights
[Company Name] is currently seeking $370,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Initial Inventory and Supplies: $50,000
- Working capital: $70,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
The following graph outlines the pro forma financial projections for [Company Name] over the next five years:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $965,742 | $1,878,611 | $2,718,300 | $3,477,900 | $4,285,228 |
| Total Expenses | $390,241 | $630,018 | $931,935 | $1,171,906 | $1,429,992 |
| EBITDA | $575,501 | $1,248,593 | $1,786,365 | $2,305,994 | $2,855,237 |
| Depreciation | $8,720 | $8,720 | $8,720 | $8,720 | $8,720 |
| EBIT | $566,781 | $1,239,873 | $1,777,645 | $2,297,274 | $2,846,517 |
| Interest | $5,077 | $4,442 | $3,807 | $3,173 | $2,538 |
| PreTax Income | $561,705 | $1,235,431 | $1,773,838 | $2,294,101 | $2,843,978 |
| Income Tax Expense | $196,597 | $432,401 | $620,843 | $802,935 | $995,392 |
| Net Income | $365,108 | $803,030 | $1,152,995 | $1,491,166 | $1,848,586 |
| Net Profit Margin | 38% | 43% | 42% | 43% | 43% |
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here], is a new, upscale retail store focusing on providing organic skincare product range to the local community.
[Company Name] is an American skincare retailer that utilizes advanced organics in the products it offers. The Company promotes a healthy skincare routine leading to a healthy lifestyle, and the products offered by it contain natural active ingredients that are clinically proven to ensure best-in-class skin health solutions.
The Company’s skincare products are made with sustainably sourced ingredients like flower and fruit extracts instead of synthetic elements. [Company Name] has created its cleanser specifically for those with sensitive skin, making sure the formula is non-comedogenic, hypoallergenic, and fragrance-free.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for skincare who seeks to provide a pleasant and convenient skincare retail experience to shoppers by offering a wide selection of skincare products for everyone, in one cozy place. [Company Name] will become a known skincare retail store in [Location] offering the complete skincare experience.
Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the retail store.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Created the pamphlet of products
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the personal and skincare industry
[Company Name]’s Products
The Company provides the following skincare product range:
- Retinol Oil
- Sunscreen
- Facial Oil
- Moisturizers
- Face Wash
- Cleansers
[Company Name] plans to be open seven days a week, from 10 AM to 9 PM. As demand dictates, hours might be extended or reduced.
III. Industry Analysis
In recent times, organic and herbal skincare is in trend because customers are aware of the adverse effects of synthetic chemicals on the skin. The U.S. beauty and personal care products market size was $81.1 billion last year, which is expected to witness a CAGR of 4.8% over the next five years, to reach $128.7 billion.
The growing consciousness among young and old consumers regarding their physical appearance has fostered the demand for anti-aging products and devices, as an excellent physical personality has become a necessity and determines an individual’s success in different areas of life.
Skincare is something that American women pay attention to, with an overwhelming majority saying that they tend to moisturize their face regularly. Keeping the skin hydrated is another gender-independent factor, as impressive numbers of American men are reported using products such as masks, scrubs, and anti-aging creams on top of skincare staples such as moisturizers. The United States has a thriving skincare market. The two bestselling skincare products in the U.S. are facial cleansers and acne treatments, which sold 316 million and 13.85 million units respectively last year.
The increasing awareness among the overall population to hold younger-looking skin, hardline marketing campaigns, and rising interests in a healthy and beauty regimen are driving the skincare products market in the United States.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and its surrounding areas. The area residents it will serve are affluent and expected to spend more on skincare products per capita than the national average.
The precise demographics of the town in which our retail location resides is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- High-Income Group: The store will attract residents with high-income groups who are conscious about their skin and take the time and energy to maintain it.
- Different Age Group: The store will attract residents of different age groups as the [Company location] consumers are making an effort to hold younger-looking skin.
- Working Professionals: [Company name] is located along a well-traveled commute route. By offering a convenient location and exceptional service to the customer, [Company name] will draw in working men and women who need to look professional for work with young-looking skin.
V. Competitive Analysis
Direct & Indirect Competitors
Kim’s Skincare
Kim’s Skincare is a beauty and cosmetic retailer which provides a wide variety of skincare and healthcare products. Kim’s Skincare offers an ideal skincare routine and foundation that can best suit the customer’s skin according to skin type. Kim’s Skincare formulas are full of powerful ingredients proven to create flawless skin, and choose to avoid using allergens or irritants that could harm the skin.
Kim’s Skincare focuses on national and regional manufacturers that sell a wide variety of products. It generally has low and medium-priced options for each type of skincare product. They do not sell at least 75% of the high-end products that [Company Name] plans to carry.
Alta Beauty
Alta Beauty provides organic beauty products and utilizes sustainably grown plant ingredients that are clinically proven to care for customers’ skin, such as calendula, aloe vera, avocado, shea butter. The Company offers multiple products ranging from skincare, organic health care, organic body care to sun protection. It also provides skincare products for babies.
However, Alta Beauty is not seen as a place to shop for skincare product range that uses artificial preservatives. The majority of shoppers are price-conscious, who shop based on sales and discounts offered. Others dislike Competitor 2 for the long waits at checkout within the store.
Caress Skin and Beauty
Caress Skin and Beauty is targeted towards typical maternity and pregnancy-related issues such as hormonal acne, melasma, and stretch marks. Using only certified organic and sustainably sourced, plant-based ingredients, the brand creates powerful botanical formulas that are pregnancy-safe and gentle on the skin. Caress Skin and Beauty also offers body butter, oils, and scrubs.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- High-Quality Ingredients: [Company Name] uses pure ingredients and continuously strives to improve its products offerings as per customer demands. The skincare products do not contain any harmful chemicals. Instead, the company uses advanced organic and natural preservatives that cause no harm to the skin.
- Management: The Company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all local leaders, newspapers, and other influencers, including the local leaders who fought the [Competitor] opening two years ago. It will be relatively easy for the company to build branding and awareness of the store and establish several product lines.
- Sustainability: [Company Name] will be a zero-waste company with its plastic-negative packaging. It will maintain its eco-friendly status while scaling up to meet demand.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering advanced organic-based products that are made using the purest ingredients
- Offering a wide collection of products for men and women skincare
- Offering sustainable packaging to help reduce the increasing burden on the environment
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents living within a 5-mile radius of the retail store. The Company’s promotions strategy to reach the audience includes:
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter and LinkedIn will also help understand changing customer needs.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Campaign Marketing
Innovating creative briefs for branding, awareness, sales, and other marketing messages help generate a user’s interest in the brand. Well-structured marketing campaigns will be built, each of which will have one clear goal in mind. The goals of campaign marketing will vary from building brand awareness to increasing the number of members on the platform, growing social media following, or email subscriber list.
Pricing Strategy
Pricing strategy is one of the most important functions that any business can plan for attracting customers. Prices are a foundational element of a company’s revenues—if managed carefully, they can generate high profits. Alternatively, it can lead to massive losses if managed incorrectly because low pricing fails to cover costs effectively while excessively high prices dismantle sales volumes.
[Company Name] pricing will be moderate, so customers feel they receive great value while purchasing the product at the retail store. Pricing will be higher than two of its main competitors and on par with Caress Skin and Beauty.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing suppliers and managing supplier relations
- Inventory Management
- Hiring and training staff
Floor sales and customer service
- Writing and producing copy for featured manufacturer’s “stories”
- Janitor/maintenance personnel to keep the store clean
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] store |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the personal and skincare business for xx years. While [Founder] has never run a retail store herself, she was director of operations at a local cosmetic store. As such [Founder] has an in-depth knowledge of the cosmetic science business, including:
- Store operations and management
- Floor sales
- Display product range
- Retail marketing
- Hiring and training workers
[Founder] has personal relationships with salespeople at a variety of high-end skincare suppliers.
[Founder] graduated from the University of ABC where she majored in Cosmetic Science.
Hiring Plan
[Founder] will serve as the store manager. In order to launch the store, the company needs to hire the following personnel:
- Sales manager (requires retail experience in a personal and skincare related field)
- Salespeople (3 to start)
- Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)
- Warehouse/Inventory management staff (2 to start – responsible for warehouse, inventory stocking, and set-up of showroom floor as directed by store manager)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of its skincare products to customers.
The major costs for the company will be cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $370,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Initial Inventory and Supplies: $50,000
- Working capital: $70,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
