Cosmetics Retailer Business Plan and SWOT Analysis

Cosmetics Retailer Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Cosmetics Retailer Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Cosmetics Retailer business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Cosmetics retailers are almost always able to remain profitable and cash flow positive in any economic climate given that the demand for these items does not wane during times of economic recession. Many people consider cosmetics to be a necessity and they will continue to make these purchases even during difficult economic climates. The startup costs associated with a new cosmetics retailing business is generally pretty low. These businesses can be started for as little as $75,000 all the way to about $250,000 depending on whether or not an expansive retail location will be developed and maintained. Given that many retailers now use online platforms to divest a large portion of their inventories – a less visible retail location may be appropriate for retailers in certain markets where there is very limited competition. Of course, in a large metropolitan market the need for a highly visible retail location with substantial signage is usually required. The gross margins generated from the retail sale cosmetics is significant. Most of these businesses generate gross margins ranging from 65% all the way to 85% depending on the specific item being sold. Most retailers carry thousands of different plans and different items within their locations.

Banks, lenders, and private funding sources are generally willing to put up the necessary capital in order to launch a new cosmetics retailing business. The moderately low startup costs, moderate barriers to entry, and moderately high gross margins ensure that these can be profitable small business investments. As with all capital raising activities, a cosmetics retailer business plan is generally going to be required. As with all business planning documents a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be included as well. The financial model should follow industry-standard figures for a cosmetics retailer. Also within the business plan a full analysis of the local and regional market in which the company will operate should be included. This includes analysis focusing on median household income, median family income, median housing values, median household net worth, population density, population size, and the competition that the cosmetics retailer will face on an ongoing basis. Given the highly commoditized nature of retailers these days – it is imperative that the entrepreneur include an extensive analysis regarding competition. As with many companies, there are a number of major retailers that carry a extensive line of cosmetics among a number of different brands. It is important that the entrepreneur find a way to appropriately differentiate their business from that of the big-box retailers. One of the ways that this has been accomplished by others in the past is to focus specifically on lesser-known or more high-end products so that they can remain competitive with in the market.

A cosmetics retailer marketing plan should also be developed as a standalone document from the business plan. This marketing plan should focus significantly on how the retail store will maintain a large amount of foot traffic on a daily basis. Usually this is accomplished by sending out a number of different mailers and flyers to the general public. Given that big-box stores not frequently use this tactic to increase their brand-name visibility – a smaller cosmetics retailer can benefit substantially by engaging in a heavily locally driven marketing campaign. Additionally, many people are now looking to work with independently owned stores rather than big-box retailers so the owner of this business can focus significantly on the fact that they are an independently owned and operated location. As with all companies, an expansive presence on the Internet is a requirement. This includes having a proprietary website that features information regarding the entire inventory carried, hours of operation, contact information, and how to get to the location. It is important as well at this website also have e-commerce functionality that allows individuals from anywhere in the world to place orders directly with the company. It can be expected that 50% or more of sales may come from online orders. Many retailers will also maintain pages on popular third-party sales sites such as Amazon, eBay, and Etsy. Beyond a standalone e-commerce website –all retailers now maintain a presence on social media. This includes FaceBook, Twitter, Google+, and Instagram. A presence on social media is important as specialized deals and discounts can be quickly sent out to thousands of potential buyers. This, the long run, can substantially reduce the ongoing marketing expenses associated with the business once you have a significant number of followers on their social media platforms. The return on investment for developing a large social media presence can be enormous.

A cosmetics retailer SWOT analysis should be developed as well. As it relates the strengths – cosmetics retailers are almost always able to remain profitable given the demand for their items. Additionally, the gross margins are considered relatively high for a retailing business. Relating to weaknesses, smaller cosmetics retailers are going to face a significant amount of competition from much larger companies. As such, it is going to be incumbent upon the entrepreneur to find ways to effectively compete on a smaller scale. As it relates opportunities, many cosmetics retailers will seek to establish additional locations once their initial flagship store has become very profitable. Also, the continued expansion of the company’s online presence is very important as many sales are can be made through these online channels. Finally – as it relates to threats – there’s really nothing major that is going to impact the way that these companies do business outside of the fact that smaller retailers are going to need to compete online with much larger companies.