We have developed a 100% natural hand cream formula targeted at high pigmented skin types. We aim to franchise hair and beauty solans that feature our unique products.
For many decades women of color in the workplace have suffered through ridicule, embarrassment, and discrimination due to skin and hair texture. As a result, they flocked to salons for hair extensions and toxic chemicals while trying to assimilate into the workplace culture. With anti-hair discrimination legislation on the table in Washington D.C., many states have jumped ahead of the federal government and passed similar laws. The opportunity has opened the door for new products to hit the shelves. As world culture becomes more concerned with eco-friendly products that are clean and have natural ingredients, the moment is perfect for startups to gain market share by meeting the demand.
Our company aspires to meet the growing demand for clean, natural, and eco-friendly products. We aim to give women of color safe, toxic-free hair and skin care options. Research shows that women of color are more prone to toxic exposure through skin and hair care products than their peers. The need for our company is higher than ever before.
· Company summary: We aspire to achieve our vision by selling, marketing, and producing skin and hair products made of natural ingredients while we franchise beauty and healthcare salons.
· Mission statement: We celebrate bold, passionate vigor in life and glamour by offering innovative, natural cosmetic options for women and men.
· Markets and services: The company seeks working-class clients of color and those who value quality products created from natural ingredients. Primary targets will include millennials, gen Zs and alphas. Additionally, we seek franchisees who are ambitious, vigorous, and have the aptitude for business ownership while a passion for customer service. We seek franchisees who are abreast of modern trends, sciences, and techniques involving hair and skin treatment. Furthermore, we seek franchisees and employees who understand or are willing to learn the connection between psychology and wellness.
· Operational structure: The company will function under four principal departments, which are administration, research and recruiting, operations, and marketing. The responsibilities are divided into the following ways.
o Administration: The administrative team will oversee the general guidance and compliance of the organization. It will consist of the CEO and sub-positions as assigned and determined by the CEO. The administration department will ensure compliance with state and federal regulations. Additionally, the administration department will determine overall annual and monthly budgets, and financial reports, company valuations, risk management, stock value, sign and negotiate contracts, and approve prospective franchising and / or partnerships. In short, the administration will oversee accounting, quality assurance, and compliance.
o Research and Marketing: The research and marketing department will be responsible for researching products and product ingredients to determine the best toxic-free options for current and future products. The research will include competitive success and failure, consumer trends, and scientific breakthroughs. The information will be distributed to marketing agents, the recruiting department, and the administration. The goals are to increase market share and produce safe, natural, clean, and eco-friendly products. The marketing team will be responsible for using research to increase market share and educate potential customers on products, as well as life choices that enhance or damage wellness. In addition, the marketing team will engage the community, work within a preset budget and manage community relations.
o Operations: The operations department will oversee product design, manufacturing, distribution, pricing, and functionality of all franchises to ensure streamlined and consistent workflows. The operations department will manage human capital, merchandise, vendor relationships, equipment, and other assets. The operations manager will regularly report to the administration department regarding the company's overall (and sometimes specific) health while conducting periodic evaluations toward achieving the company's financial and community expectations within the context of our mission, objectives, and goals.
o Recruiting: The recruiting team will be responsible for sales and finding potential franchisees. The department will make presentations to increase the brand's awareness and accessibility to a national, and potentially international market. Additionally, the recruiting team will handle all Human Resource compliances under the direction of the administrators.
· Financial goals: The startup cost is $76,885. This will support one year of business and operating costs. Approximately $3,000, in addition, is needed to cover state and local municipal fees. The second-year operating cost will drop by 6%. Within the two years, we expect to reach our financial goals in the following ways. The average visit cost is $75, with twelve visits per week to an average of $46,800 annually for the first two years. In addition, we forecast $2,000 from special events, $1,000 from the sale of privately labeled materials, and $3,000 from the sale of manufactured products. Our estimated two-year average of total sales is $52,800. Considering the expectation to generate an additional $2,600 from virtual visits, our projected margin in the first year is $7,800, and $13,300 in year two. In 2026 if not sooner, we will franchise. The cost to franchise will be $60,000 paid by the franchisee. Each franchised operation will be responsible for purchasing brand products at whole sale prices and receive 15% profit margins on those products. Each franchise will pay an administrative fee of $5,000 per year and marketing contribution of $5,000.
- Market analysis overview: The market for our products and business is growing year over year as consumers become conscious of toxins found in cosmetics. The uptrend of legislature support for women of color is precipitous. More states in America are proposing and creating policies like the Crown Act in California. In the federal government, the House passed a bill for "Creating a Respectful and Open World for Natural Hair." The bill seeks to protect against bias based on hair texture and protective styles, including locs, cornrows, twists, braids, Bantu knots, and Afros." These policies encourage natural hairstyles and looks while uprooted subtle discrimination and stimulating demand.
Additionally, the demand for clean and natural products is propelled forward by global mindfulness and the value of eco-friendly resources. New demands have caused traditional cosmetic companies to shift strategies. However, the shift is costly, and larger companies lose market share to indie brands that have more flexibility and smaller overheads. Indie-brand products have found room in the market share for growth and success. This is primarily due to a worldwide annual growth rate of 4.75% from 2020 to 2021. Growth is expected to continue, reaching $784.6 billion by 2027. In addition, trends show that customers are willing to pay higher prices for higher quality.
- Operating plan: By creating working relationships with reliable and credible manufacturers, we will produce products that are eco-friendly and made of natural ingredients. We will distribute our products to our technicians and franchisees to use and recommend to clients. Our technicians will undergo regular training to make them skin and hair treatments experts as well as understanding the connection between wellness and life choices. They will have additional training to develop customer service training focused on retention skills.
· Order fulfillment: Many of our product orders will fill at the time of request as we intend to inventory our supplies inside the place of business. We will fill online orders using the United States Postal Service and Federal Express. We aim to complete online orders between 3 and 5 days of request. We will fill local orders, and those within ten miles of the place of business will fill through personal delivery. Within the first year of producing our products, we will make them available through our website and Amazon.
· Payment: We will accept online payments through Stripe, Venmo, PayPal, Google Pay, Apple Pay, and Zeal. Franchisees will have thirty days to make payments for orders.
· Technology: We will use essential online resources and software like QuickBooks for accounting, making appointments, and inventory management. Additionally, we will maintain a customer service history, purchase history, and preferences through Microsoft word and Excel software.
· Key customers: Our key customers are our grassroots base customers who have shown loyalty to our beauty technicians. This makes our beauty technicians the most crucial customers. The beauty technicians will draw upon their base and expand. Women of color with type three and four hair, working class, urban and rural men, and women concerned with their skin and hair health.
· Key employees and organization: We will recruit employees from accredited tech schools who are certified skin and health technicians and experts in the field. Franchisees will be passionate about promoting wellness and health and supporting our mission.
· Facilities: We will begin our business by renting salon suits in the Chicagoland and Austin, Texas, regions. We will carefully select our facilities based on safety and the level of accommodation for our clients and technicians.
- Marketing: Our marketing and sales plan will include social networks like Facebook, Instagram, YouTube, TikTok, Twitter, and Linkedin. We will also have the most current networks as they may develop with a reach of our target audience. Additionally, we will solicit influencer reviews and appear as vendors at conventions and exposés. We expect to use local radio advertisements, magazines, Pandora, Spotify, and other print media sources to promote our message by the second year. By writing blogs, creating webinars for audiobooks, and offering free virtual classes, we expect to project a professional, knowledgeable, and energetic decorum to the public. By the end of year two, we will offer informational sessions and begin to recruit associates to extend our brand as franchisees. By our fifth year, we expect to reach our goal of having five franchises in crucial cities: Chicago, Austin, Dallas, Las Vegas, and Oakland.
· Key messages: Join the Natural movement! Celebrate with bold, passionate vigor. We want to encourage our customers to celebrate life with bold, passionate vigor that comes from confidence generated from healthy skin and hair. We want the African American working woman to celebrate her natural hair and ethnic styles in swing with the growing acceptance of natural hair in corporate America. Additionally, we want to promote the growing natural hair movement by connecting it to our products. Safety, natural, clean, and eco-friendly products allow our customers to confidently leap into the natural movement.
· Marketing activities: Additional strategic planning for marketing, sales, and implementation will focus on the following during the first three years.
· Social media
· Influencers
· Blogs, vlogs, and webinars
· Google ads, Microsoft ads, Twitter, and YouTube ads
· Printed media.
· Local radio
· Conventions and Exposés
· Birch Box & Glossy Box
· Sales strategy: Our primary sales strategy is designed to generate more visitors and visits to the business. We will do this by offering loyalty points for reduced prices of goods or services. Additionally, we will implement a referral program and special events like mother & daughter discounts. Finally, we will make one-on-one solicitations to event planners and wedding planners to form partnerships and business referral relationships.
· Sales strategy two: We will solicit new recently certified entrepreneurs looking for a workplace. By renting our space, we increase revenue by maximizing the 24-hour day. Additionally, for those who rent space, we will utilize them as sales agents for our brand products, offering commissions for the sales.
· Sales strategy three: We will rely on word-of-mouth from our clients and our technicians by directly asking them to promote the business to family and friends.
· Sales strategy four: In the third year, we will commission a sales and recruiting team to work with our recruiting department to find franchisee associates.
- Product under production: Our hand cream will go by the name ètonnamment, a French word for “Amazingly.” It will ensure skin hydration, absorb quickly, and will not leave a greasy finish. In addition, the cream will add ceramides, cholesterol, and fatty acids. The cream will have a shear thinning value of 10-2.25 and a viscosity Pa*s value of 103.5. The cream will be sold in a 2 oz tube for $20 retail. Ingredients and the percentages are listed below. The template for our hand cream follows 7% emulsifier, 2% thickener,3% wax, 5% solid oil, 15% Liquid oil, 4% humectant, 63% water. Preservatives may be natural or synthetic, based on the cost.
The following calculations are based on a 1-gallon batch which would produce 64 bottles per batch and a cost of $2.74 per bottle. This number does not consider direct labor costs, packaging, or shipping. When considering these factors, the estimated cost of goods sold will be $6.30 per tube.