I. Executive Summary
This Section's Contents
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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% |
