Glow Business Plan

GLOW SKINCARE FACIAL
CLEANSER AND SCRUB
SUBMITTED TO: SIR FAKHR E ALAM

SIDDIQUI
GROUP MEMBERS
ALISHA KAMRAN KHAN
ABBAD AHMED
MUHAMMAD AHMED BAIG
ALIZAH FATIMA
MANAL TARIQ
CLASS: BBA-7 Section A (Evening)
GLOW SKINCARE FACIAL CLEANSER AND SCRUB
EXECUTIVE SUMMARY
This plan is to set up a Skincare shop in the name of " Glow Skincare
Facial Cleanser and Scrub”, which will be located in DHA Khadda Market,
Phase VII, Karachi. The skincare shop will be a Partnership Business. The
startup capital will be used as 50 million around which 60% will be acquired
through bank loan which will be secured from centenary bank at 10% interest
rate. The key personnel at the “Glow Skincare Facial Cleanser and Scrub” will
include Senior manager, buying inputs and overall supervisory work,
operations and production staff, sales and marketing staff, skin therapy and
hairdressing staff, record keeping and accounting, stock control and direct
selling staff. The key objective of the skincare shop will be to provide fresh
quality skincare to our clients to enable them to improve their general skin
beauty, to obtain maximum customer satisfaction through continued quality
production to obtain continuous production and supply of our products to the
customers, to create customer loyalty to our products such that they become
well pronounced in the customer minds.
To achieve our objective, the skincare shop will employ strategies such
as: Offering good quality facial cleanser and scrub with herbal essence and
ingredients that help fight the skin diseases made from fresh fruit and vegetable
which are nutritious through adequate research and proper mixture of the
lotions, oils and herbal ointments to meet the standard skin contents and
characteristics of customers in the market through advertisement by use of sign
posts, direct selling and radio stations, offering special incentive to our regular
clients, offering our skincare at relatively lower prices for market penetration,
creating a conducive environment for our clients, employing people who
understand the meaning of customer care and meaning of quality by giving
them samples for use as a way of expanding our markets especially among the
young children, youth and women. All this encompasses our strategies that
include, communication
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strategy, supplier relationship strategy, marketing strategy, competitive strategy

and human resource strategy.
The vision of the Glow Skincare Facial Cleanser and Scrub will be
‘missi’.
Our mission will be, dedicated at improving the skin health appearance
of our client. "We seek to become the recognized leader in our targeted local
and international market in Pakistan that will have a competitive edge towards
customer satisfaction and retention at attractive prices. Our forms/ ways of
distribution will include, through Retailers, distributors and wholesalers who
will buy and sell in bulk to our final customers which we cannot sell to directly
we shall also sell directly to the customers because we have a high customer
traffic at our main outlet in Khadda Market DHA Phase VII, Karachi.
Our products are costed and priced after comparison with our major
competitor’s prices and costing information acquired through market research.
We have as well carried out cash flow estimates to ensure that our business does
not run out of cash. Our startup capital has been allocated to what we intend to
start our business with that is renting building for two months, buying machines
for mixing the inputs, Machines, leasing van, buying furniture and fittings,
massage equipment, cloths and uniforms and other necessary things to start
with including the employee salaries for the first two months. This plan will be
effective on 1st January 2023.
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TABLE OF CONTENTS
SECTION 1: BUSINESS DESCRIPTION

A. General description of business ----------------------------------------------------5
B. Industry background
5-6
C. Goals & potential of the business and the milestones -------------------------6-7
D. Uniqueness of product
7
SECTION 2: MARKETING
E. Research and analysis
8-10
F. Marketing plan
11
SECTION 3: OPERATIONS
A. Identify location advantages 11
B. Scientific operational procedures ---------------------------------------------12-15
C. Personnel needs and uses ----------------------------------------------------------16
D. Proximity to suppliers 16-17
SECTION 4: MANAGEMENT
A. Management team- key personnel --------------------------------------------17-18
B. Ownership
19-21
C. Legal structure
21
D. Responsibilities, tasks, benefits and salaries --------------------------------22-23
SECTION 5: FINANCE
A. Financial forecast 23-27
SECTION 6: CRITICAL RISKS

A. Potential problem
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B. Solutions for potential problems --------------------------------------------------
28
SECTION 7: HARVEST STRATEGY

A. Liquidity event 30
B. Continuity of business strategy ---------------------------------------------------31
C. Identify successor 31
SECTION 8: MILESTONE SCHEDULE

A. Schedule
32
B. Relationship between events --------------------------------------------------32-33
BIBLIOGRAPHY -------------------------------------------- 33-34
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BUSINESS DESCRIPTION
A. GENERAL DESCRIPTION OF BUSINESS:

The proposed business name is “Glow Skincare”. It is a Facial Cleanser and
Scrub Skincare shop in DHA Khadda Market, Phase VII, Karachi. This
proposed shop will produce high quality and all-natural facial cleanser and
scrub products
for both men and women.
The proposed legal structure of the business entity is partnership among 5

partners.
For more details and queries related to this plan you can contact any of us on
the following number 01234567 and email address xyz@yahoo.com.
B. INDUSTRY BACKGROUND:
Pakistan has been named among countries with high levels of mercury (third–
most hazardous chemical) in various cosmetic products, in which skin-
whitening creams come out on top of famous brands with highest sales. The
use of skin- whitening creams for fair complexion was considered effective by
a majority of
women (59%) in one study conducted in Pakistan, and they also agreed that a
lighter skin tone was more beautiful, and the use of skin-lightening products
strongly associated with achieving a fair complexion. A Sustainable
Development Policy Institute report has revealed the presence of high
quantities
of mercury and other heavy metals in skin-whitening creams found in Karachi,
Lahore, Islamabad, Peshawar, and other big cities of Pakistan. Most Pakistani
cosmetic companies have high levels of mercury in their creams, facial lotions,
and other skin-whitening products, which may pose a serious health risk
to
innocent customers. To look superior and acceptable in society, people from all
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over the world use various types of cosmetic products to enhance or alter their
facial appearance and body texture. In recent times, an exponential surge in
personal-care products is high. However, there are many reported facts about
high loads of lead, mercury, copper, and others hazardous and cancerous
elements in local Pakistani cosmetic brands. Consumers of these brands are at
high risk of many clinical issues, including cancer. As such, it is a necessity to
make people aware of the use of natural and herbal products that can be used
to beautify their skin tone and they can get healthy, clear and fresh skin without
the use of hazardous chemicals or mercury.
C. GOALS AND POTENTIALS OF THE BUSINESS AND MILESTONES:
“To be the leading suppliers of quality, fresh and healthy skin rejuvenating
product.”
MISSION
“To be a game changer in Pakistan’s skincare industry.”
KEY OBJECTIVES:
1) To increase profit by 5% every year.
2) To become quality orientated business.
3) To be in the list of top leading skincare of Pakistan by next 20 years.
4) To become the market leader in skincare industry by next 15 years.
MILESTONE:
After achieving key objective 4 we will introduce skincare products in other
related sectors like face washes, face lotions, body scrubs and others.
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D. UNIQUENESS OF PRODUCT:
1) Core product:
Our core product is the satisfaction customers’ need of high quality and
fragrant beautifying facial cleanser according to their wants of getting clean
and
clear face.
2) Actual product:
It is our facial cleanser manufactured with different flavors and natural
ingredients according to customers’ needs.
3) Augmented product:
The augmented product of Glow Skincare is the quality assurance that we set
up at every level of our production.
MARKETING
A. RESEARCH & ANALYSIS:

1) Target market:
When it comes to selling cosmeceutical skin care products, there is indeed
a
wide range of available customers. In essence, our target market can’t be
restricted to just a group of people, but all those who resides in our target
market locations. In view of that, we have conducted our market research and
we have ideas of what our target market would be expecting from us. We are in
business to engage in wholesale distribution and to retail cosmeceutical skin
care products.
Everybody is in our target market location. We identified our target market

through qualitative forecasting and our target market is local customers and
export for all ages and all genders. Incase of direct exports, the customers are
retail chain stores, direct distributors and wholesalers.
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2) Market size & trends:

The trends of skin care industry are very important in our business plan as
they will make it more significant. The trends are changing day by day in the
skin care industries. Skincare’s growth is attributable to the unique position
it occupies
amongst a variety of trends: growing desire for health promoting and self-
care products, increasing interest in the power of regimens and routines, the
ability of social media to more rapidly empower and inform consumers and,
uniquely the ability of new technology to simplify the unusually complex
choices consumers
have when they interact with skin care brands.
3) Competition:
A huge competition of skin care industry in the market. The difference
of
cosmetic is wide, so there is an opportunity for rivals to sell different
products. The industry growth influences the development of competition. If
fixed costs are high and switching costs are low, they increase the rivalry in the
industry.
S.No. Company name

a) Core
1 competitors:
Johnson’s
Our
2 core competitors
Unilever Pakistanare all the skin care industry in our country are
following:
3 Ponds
4 Neutrogena
5 Vaseline
6 Proctor and Gamble
7 Dermacos Laboratories
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b) Substitute competitor:
The other substitute competitors include olay, loreal paris and kiehls etc.
4) Estimated market share:

By dividing our forecasted sales with the sales of market leader Unilever we
got our estimated market share to be 5% of Unilever.
B. MARKETING PLAN:
1) Marketing strategy- sales & distribution:
Placement will be personal selling (B2B). we will adopt an indirect
distribution strategy because that’s how we will cover a wide area or market in
future.
Manufacturer Retailer Distributor Customer
2) Pricing:
 Estimated production cost: Rs.150.
 Estimated price after profit @ 30%: Rs.195
3) Advertising & promotion:

Promotion will be through direct marketing and public relations. Direct
marketing modes will be mails, internet, mobile and catalogs.
OPERATIONS
A. IDENTIFY LOCATION ADVANTAGES:

The Glow Skincare facial cleanser and scrub which will be located in DHA
Khadda Market, Phase VII, Karachi . The location is very suitable since there is
a lot of hair dressers in the area hence full of women who potential customers
for
the cosmetic products because they want to look good. The place is chosen
due
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to a boom of commercial activities, an expected client base from students,

tourists, corporate women employees, and the large population is women are
compared to men. The cosmetic shop will have adequate lighting. It is ideal
location for us due to there is a high customer traffic, clean environment and
closeness to the main road. Enough packing space for the clients/individual
customers.
B. SCIENTIFIC OPERATIONAL PROCEDURES:
1) Production:
We will specialize majorly in cosmetic products and manufacturing of
locally made cosmetic products to treat the skin illness such as fungal diseases
using locally produced vegetables and fruits as ingredients in the manufacture
of these cosmetics.
We will offer consultancy services to our clients, free cold water, and warm
water for washing our hands. We will employ people who are easily accessible,
customer oriented, efficient and effective. We will provide customized services
like skin therapy and hair dressing to our most esteemed customers during the
weekends when we are not very busy so as to meet their demands and needs by
being agile.
STAGE 1:
Glow Skincare production process is divided into five critical stages. From
acceptance of raw material to delivery we assure a smooth manufacturing
process. Every stage is managed under the safest protocols and procedures. Our
CNAs and quality standards are the highest possible, ensuring each product is
both safe and effective.
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Acceptance of Raw Materials and Packaging:

 Materials order checklist.
 Raw material disinfection and temperature controlling
 Generated inspection sheet in the system; afterwards it’s passed on to the
Quality Control Team
 Internal identification via our barcode system
 Weighing system to weigh and re-weigh raw material one by one
 System alarms for suspension of work in case of discrepancies in weight.
STAGE 2:
Micro-organism Screenings and Inspection:

 Inspecting raw materials’ colors, scents and textures
 Micro-organism screenings for contamination detection
 Water content test, Viscosity test, Vibration test
STAGE 3:
Mixing and Filling:

 Once materials are measured, the barcode system will confirm the
materials
 After confirmation, the materials will be mixed and distributed in the
relevant manufacturing machines
 The manufacturing process includes dissolution, charging, cooling,
filtering
 Formulations will be filled in appropriate packaging
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STAGE 4:
Appearance testing and inspection of semi-finished and finished products:

 Inspection of semi-finished and finished products for their colors,
textures, and scents in the same way our customers would inspect them
 Shelf-life testing of finished products
STAGE 5:
Shipment:
 After having passed all tests and screenings, products are passed on to
the warehouse
 Products pass through our automated system to be shipped to our
customers worldwide.
2) Transportation:
Glow skincare facial cleanser and scrub plan to deliver stock four times per
year. We decided to rely on just-in-time delivery so we won’t have to keep a big
warehouse all the time. It is the most convenient and economic solution.
Transport methods include ship and truck which is the cheapest but also most
environmental-friendly method.
3) Inventory:
Thinking about our replenishments, we decided to have just-in-time delivery.
That means that we lower the cost by having small stocks and no need
of
warehouses. Most of the goods that we get delivered will be displayed in the
store.
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We use an EDI system in our store. By using this optimized control and
information system, we manage to receive the just-in-time deliveries (JIT) for a
well-organized and coordinated replenishment. This gives us the opportunity to
work faster, to communicate better and again to lower the costs.
4) Collection volume:
As already mentioned, Glow skincare facial cleanser and scrub has decided
to deliver the goods four times a year, which means every three months. These
delivery dates however are slightly different in the first year because we
launch
the collection already in June when we open our shop. The sales volume for
the first in between delivery period from June 2023 until August 2023 is 852
units which is the average in 2023 but not in 2024 because we are planning on
producing more in that year.
5) Machinery:
Equipment for Skincare Products required includes: R0 reverse osmosis pure
water machine, vacuum homogenizing emulsifier, aseptic storage tank, drying
and disinfecting machine, paste filling machine, conveying table, inkjet printer,
labelling machine, aluminium foil sealing machine, Shrink film machine.
6) Furniture and fixture:

SERIAL DETAILS QTY TOTAL COST
NO
1 work stations 10 50,000
2 chairs 20 40,000
3 sofa set 2 10,000
4 table 5 75,000
5 networking 1 15,000
electrifications
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7) Office equipment requirement:
S# DETAILS QTY. TOTAL COST

1 Computer core i3 5 100,000
2 Printer 2 16,000
3 Switch D-Link Wi-Fi 2 10,000
4 Air Conditioner 2 100,000
5 Telephone 5 12,500
8) Raw material:
RAW MATERIAL COST FOR 6 RATE

MONTHS
Alkaline 1,50,000 200/m
Silicons 100,000 100/m
Anti-dandruff 90,000 1/piece
Antioxidants 18,000 3/unit
D Panthenol 90,000 15/unit
label 42,000 7/unit
Packing cost 90,000 15/piece
C. PERSONNEL NEEDS AND USES:
S# JOB TITLE QTY. SALARY PER MONTH

1 Manager Finance 1 50,000
2 Accounts Officer 1 25,000
3 Marketing Manager 1 30,000
4 Store Supervisor (staff) 1 15,000
5 Computer Operator 1 15,000
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6 Peon 2 10,000
7 Guards 3 12,000
8 Driver 1 12,000
9 Product Manager 1 40,000
10 Manager Quality Control 1 40,000
11 Pro. In-charge 1 25,000
12 Pro. Supervisor 2 18,000
13 Looms Mechanic 2 15,000
14 Lines Officer 2 15,000
15 Head of Design Department 1 35,000
16 Technician and Electrician 2 15,000
17 Workers 8 10,000
18 Cleaner 3 10,000
D. PROXIMITY TO SUPPLIERS:
Pakistan is specialized in producing organic skin care products and goods,
has
a strong skin care industry and is the largest producer in the world. That’s
why, all the raw materials required to manufacture the skin care products will
be bought from the local suppliers within the country. They will be purchased
from the suppliers in Site Area and Korangi Industrial Area, Karachi as the it
would be easier to transport raw material from the local suppliers and the cost
will get reduced as compared to buying from the other cities or importing.
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MANAGEMENT
A. MANAGEMENT TEAM – KEY PERSONNEL:

The Glow Skincare Facial Cleanser and Scrub is a well-organized and well-
structured startup company whose success depends excessively on the quality of
the management team. Having a capable management team and a well
thought
through organizational structure is the key to make our business successful.
With the organizational plan, we want to organize the lines of authority and
communications, as well as assigning the right tasks and duties.
Our management team consists of people who are capable and will
contribute their knowledge and skills to our company. Due to our
organizational objectives, we choose a decentralized business structure, where
the decision-making is relying on a team environment.
Decentralization gives benefits to employees as well. The freedom and

autonomy of working in this framework, as the employees will maintain a
bigger level of control over the business, thus it provides a more enjoyable and
positive work environment. It gives them a sense of importance and makes
them feel as if they have more input in the direction of the organization. We are
able to make decisions quickly. It is because a manager can often make a
decision without having to wait from the upper hierarchy. This allows us to
react quickly to situations where fast actions are needed.
Overlook:
As we are a small and new brand in the beauty industry, our funds are still
limited; hence the costs should be kept to a minimum. There are two reasons
that support the structure of The Glow Skincare Facial Cleanser and Scrub as
shown above; reducing the expenses on the employees as far as possible in
order to invest more in the company’s supply. Therefore, we decided that each
shareholder will
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work one day during the week. Furthermore, we hire one sales assistant who
works full time. It will reduce our costs for staff in the first year. But we are
going to hire personnel for the store in the future as our company grows thus,
increasing the efficiency of the product phase.
Our management team will consist of the shareholders, the department

managers who are divided into assistant manager, quality manager, product
manager, administration and finance manager, marketing and retail manager. All
departments work full time based on their f.t.e rate and receive yearly
additional support benefits and an additional support.
B. OWNERSHIP:
The project is financed through 30% debt and 70%equity. All the
shareholders
hold 14% of The Glow Skincare Facial Cleanser and Scrub Shares. Equity of
all the shareholders is Rs.8,624,224, while each partner has a contribution of
Rs.1,724,845. It can be seen as an investment and will be rewarded with a
dividend payout once a year, as soon as the company has managed to establish
itself on the market and make off. Moreover, 10% debt is taken from ABC bank
at 14% interest rate. Based on our parent company’s annual turnover rate ABC
bank is providing us a loan of Rs. 3696096.
Payback period – 4 years based on expected turnover.
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Profit and loss statement of parent company
JUNE 30 2023 JUNE 30 2022

RUPEES IN ‘000
TURNOVER 8239986 6906526
COST OF SALES (7448166) (6166863)
GROSS PROFIT 791820 739663
DISTRIBUTION COST (198557) (170295)
ADMINISTRATIVE EXPENSES (127802) (104323)
OTHER OPERATING EXPENSES (40475) (30463)
OTHER INCOME 267579 99774
(99255) (205307)
692565 534356
FINANCE COST (92488) (88203)
PROFIT BEFORE TAXATION 600077 446153
TAXATION (83546) (16716)
NET PROFIT 516531 429437
3 years projected balance sheet
YEAR 1 YEAR 2 YEAR 3

(2023) (2024) (2025)
IN RS.
ASSETS
NON –CURRENT ASSETS
Machinery 4,183,820 4,183,820 4,183,820
Depreciation Expense (418382) (418382) (418382)
Accumulated Depreciation _ (418382) (836764)
Furniture 190,000 190,000 190,000
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Less Depreciation Expense (9500) (9500) (9500)

Less Accumulated _ (9500) (19000)
Depreciation
Equipment 238,500 240885 243294
TOTAL NON-CURRENT 4184438 3758941 3333468
ASSETS
CURRENT ASETS
Cash In Hand 1,500,000 1700000 2000000
Accounts Receivable 8637650 8447569 7912532
Inventories 7280000 7134400 6991712
Prepaid Rent 750,000 750,000 750,000
TOTAL CURRENT 18167650 18031969 17654244
ASSETS
TOTAL ASSETS 22352088 21790910 20987712
LIABILITIES AND EQUITY
LABILITIES
Tax Payable 1852942 1943654 1973860
Bank Loan 3696096 2772072 1848048
TOTAL LIABILITIES 5549038 4715726 3821908
EQUITY
Owners’ Equity 8624224 8624224 8624224
Net Income 8178826 8450960 8541580
TOTAL EQUITY 16803050 17075184 17165804
TOTAL LIABILITY AND 22352088 21790910 20987712
EQUITY
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C. LEGAL STRUCTURE:
The Glow Skincare Facial Cleanser and Scrub Will start trade under its parent
company. Therefore, we are registered as a private limited liability company
(Ltd.). The reason why we choose this is the limited liability of the company’s
officers and shareholders. Being a limited company develops the feeling of
security and comfort for the employees and to other members in the company,
for our shareholders, and also our suppliers. If a bankruptcy and receivership
occur, the only way that we are going to repay back is from the assets of the
company.
Advantages for being a limited company:

▪ Our company name and logos are protected.
▪ Limited liability.
▪ Tax advantage.
▪ Reliable business activities.
▪ Company continues despite the acknowledgement of the management and/or
members.
▪ Easy to produce new shareholders and investors.
▪ Ltd. Can be converted to a PLC. (Future considerations).
D. RESPONSIBILITIES, TASKS, BENEFITS AND SALARIES:

Responsibilities and tasks of the different job position within The Glow
Skincare Facial Cleanser and Scrub Management team are:
1) Quality Manager:
▪ Alisha Kamran Khan
▪ Responsible for the quality control of the product.
▪ Responsible for keeping a check and balance in the product line.
▪ 1F.t.e
▪ Rs. 40,000.
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2) Assistance Manager:
▪ Abbad Ahmed
▪ Responsible for producing and finishing the collection of Scrubs and other
facial products.
▪ A good coordination of the products, sales, and marketing teams to create a
right product design.
▪ 1F.t.e
▪ Rs. 35,000
3) Product Manager:
▪ Manal Tariq
▪ Responsible for the planning, coordination, and control of the production
process.
▪ Responsible for the outsourcing management of the company.
▪ 1F.t.e
▪ Rs. 40,000
4) Finance Manager:
▪ M. Ahmed Baig
▪ Responsible for the daily, monthly, yearly financial matters of Glow
Skincare.
▪ 1F.t.e
▪ Rs. 50,000
5) Marketing and Retail Manager:

▪ Aliza
▪ Responsible for marketing of Glow Skincare.
▪ Responsible for running the stores.
▪ Managing the stock levels of the scrubs and facials in the shop.
▪ 1F.t.e
▪ Rs. 30,000
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FINANCE
A. FINANCIAL FORECAST:
1) Profit and loss statement:
3 years projected income statement

(2023) (2024) (2025)
IN RS.
SALES 131,100,000 133722000 136396440
COGS (109,200,000) (111384000) (113611680)
GROSS PROFIT 21,900,000 22338000 22784760
OPERATING EXPENSE
Payroll 6948000 6948000 6948000
yearly bonus - - 289500
Distribution cost 790,272 794223 798194
Rent expense 1,500,000 1,500,000 1,500,000
Office equipment 238,500 240885 243294
expense
Depreciation expense 418382 418382 418382
(machinery @ 10%)
Depreciation expense 190,000 190,000 190,000

(furniture @ 5%)
utility expense 150,000 159750 170134
TOTAL OPERATING (10235154) (10251240) (10557504)
EXPENSE
EBIT 11664846 12086760 12227256
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Interest expense @ 14% (1633078) (1692146) (1711816)

EBT 10031768 10394614 10515440
Tax @ 25% (1852942) (1943654) (1973860)
EAT 8178826 8450960 8541580
2) Cash flow:
3 years projected cash flow statement

(2023) (2024) (2025)
CASH FROM OPERATING ACTIVITIES
Salaries paid (6,948,000) (6,948,000) (6,948,00
0)
Yearly bonus paid - - (289500)
Cash received from customers 131,100,000 133,722,000 136,396,4
40
Paid for utilities (150,000) (159,750) (170,134)
Prepaid rent (750,000) (750,000) (750,000)
Net cash used from operating activities 123252000 125864250 12823880
6
CASH FROM INVESTING ACTIVITIES
Purchase of fixed asset (4612320) - -
Capital expenditure 8624224 - -
Working capital 16314708 16088315 15680384
Net cash used from investing activities 4011904 16088315 15680384
CASH FROM FINANCING ACTIVITIES
Loan repayment - (924024) (924024)
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Interest Paid (1633078) (1692146) (1711816

)
Net cash used from financing activities (1633078) (1692146) (1711816
)
Net increase in cash 125630826 140260419 14220737
4
Cash at the beginning of year 12320320 1500000 1700000
Cash at end of period 137951146 141760419 14390737
4
3) Breakeven analysis:
CONTRIBUTION MARGIN RATIO = Total sales ÷ total variable cost

= (131,100,000 ÷ 119,435,154) × 100%
= 1.09 %
BREAK EVEN = Total fixed cost ÷ contribution margin ratio

= 4,674,760 ÷ 1.09%
= 428,887,064
From the above calculations and projected income statement we estimated

that it will take approximately 5 years to achieve breakeven by the company
provided, the opportunities remain constant.
4) Cost control:
a) Land and building:

The land and building requirement as the expansion of 58 machines can be
adjusted in the 2500sq.feet area but including the labor facility the total
required
area will be 4000sq.feet.
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▪ Recommended mode:
It is recommended that this project should be started in a rented building. As
the initial capital cost of the project will be less. An appropriate premise is
normally available in many commercial/industrial areas/ clusters.
▪ Estimated building rent:
Monthly rent: Rs. 125,000
Annual rent: Rs. 1,500,000
b) Inventory:
By adopting an just in time approach in inventory management we will be
able to cut cost in this aspect.
c) Machinery:
We estimated that by purchasing machinery once we will be able to save a
lot as repairing and maintenance don’t cost that much that renting will cost.
5) Budgeting plans:
SERIAL NO DETAILS COST

1 machinery 4,183,820
2 Office equipment 238,500
3 Furniture and fixture 190,000
4 HRM (6 months) 3,474,000
5 Rent expense 750,000
(6months)
6 Raw material 1,984,000
7 Cash in hand 1,500,000
TOTAL 12320320
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CRITICAL RISKS
A. POTENTIAL PROBLEMS:
1) Lack of experience and history:

 As a start-up company we lack a history, which nowadays is very popular
with the customers and therefore very valuable for the marketing.
 We lack experience in running a business and figures to compare and
measure our performance.
2) Mistakes:
 Mistakes made by our employees.
 Failures and mistakes during the production or accounting process.
3) Brand Failure:
 The brand fails to reach out to the target group and/or its marketing
strategies do not show the expected success.
 The products have a disappointing quality.
B. SOLUTIONS FOR POTENTIAL PROBLEMS:
1) Lack of experience and history:

 Have a catchy and fresh concept.
 Invest a big part of our profit into marketing and advertisement to make our
target group as fast as possible aware of our brand.
 Compare to competitors and orientate to their numbers, figures and
strategies.
 Especially in the first year, have frequent checkups of the books and
accounts to control our performance.
 Get help from experts from outside our company.
26 | Page
2) Mistakes:
 Provide training and seminars to our employees.
 Change organizational structure-have a centralized organization to maintain a
good overview over the happenings in the company.
 Be well insured to compensate for the financial losses caused by mistakes or
incidents.
3) Brand Failure:
 Engage a professional PR company.
 Host events and advertise in magazines and newspapers that our target
customer is interested in.
 Create actions and make offers that get the customers interested and build
up customer loyalty.
 Have product and quality checks on a regular basis and switch to another
supplier or manufacturer when the results do not meet the requirements.
C. OBSTACLES AND RISKS:

As a starting business, our company has to keep following possible risks in
mind. Furthermore, it is important to also have solution to those problems, to
that a fast reaction is ensured and therefore change can be kept small.
1) Customers:
 They do not like our concept or cannot understand it.
 The find the prices too high
 Skepticism towards our product.
27 | Page
2) Natural influences:
 Due to extreme climate in the sourcing countries or similar happenings our
suppliers might have to raise the prices for the products or won’t be able to
deliver.
3) Economical risks:
 Banks do not invest as much money anymore, because they fear that
businesses will not succeed in the current economy.
 Customers have changed their buying behavior, because they want to save
money.
 Launching a new collection not be very profitable for our company.
D. ALTERNATIVE COURSES OF ACTION:
1) Customers:
 Have a clear communication of our concept to avoid misunderstandings.
 We will be transparent in the way we make business.
 Make surveys about the customer’s satisfaction with the brand and the
products to find the core of possible problems and to find out how to
improve our business.
 Introduce promotions and actions if the products are not selling.
2) Natural Influence:
 Have a good network of suppliers in different countries that we could easily
switch to.
 Stay updated about the on-goings in the production and selling countries
and
compare prices regularly.
 Have promotion to drive the sales up.
28 | Page
 Turn the attention to internet promotions, if the product doesn’t sell,

because on internet there is a larger audience from different regions of the
world who might be interested in our products.
3) Economical Risks:
 Have an efficient and transparent business plan.
 Find alternative sources of finance (e.g., crowd funding or private investors).
 Promotions will help us reduce stock and sell the products in case that we
were too optimistic on the sales forecast.
 Sell products to another whole seller in case of not enough profit.
HARVEST STRATEGY
A. LIQUIDITY EVENT (IPO/SALE):

Through this strategy we’ve decided how we’ll transfer the ownership of
assets in case of success and failure of the organization. In case of success, the
building that is on rent will be leased, new outlets will be opened and IPO will
be offered for the general public. Whereas, in case of failure, the downsizing
strategy will be opt at the first hand, and then outsourcing of the non-core
activities. The
CFO will be the one who’ll be responsible for the liquidity events in case of
success and failure.
LIQUIDITY RATIO YEAR 1 YEAR 2 YEAR 3
Current Ratio 3.27 3.82 4.62
Quick Ratio 1.96 2.31 2.79
The current and quick ratios of Glow shows that liquidity position of the
company is good and they can easily meet the short terms liabilities.
29 | Page
B. CONTINUITY OF BUSINESS STRATEGY:

The business Strategies in case of failure or success will be in continuity.
While going towards success, the rented assets will be leased on the first
hand.
Then the expansion strategies will be followed further. Whereas, in case of
going down towards failure, we’ll not sell the whole organization at once in
auction etc. the cost cutting and downsizing strategies will be used firstly. Then
the owned assets will be sold out as in machinery and furniture.
C. IDENTIFY SUCCESSOR:
In case of transferring ownership of organization at some time in future, it
can only be transferred to the upper hierarchy of management with the
permission of
all the five partners.
30 | Page
MILESTONE SCHEDULE
June 2023, entering the
Market by launching our
Product line. Leasing of facility

Setting up an office
and construction of standard
space in an
Cosmeceutical skin care commercial area
Production plant is in progress (2024)
2024
2023 2025
Innovation in graphic designs
and printing of packaging
Marketing/ promotional materials
Brand’s awareness Official website projected to be launched
Achieved and POS machines secured
31 | Page
RELATIONSHIP BETWEEN EVENTS:

The short-term objectives and goals set for these years are somehow in relation
with each other. In the first year i.e., 2023, we will be focusing on launching
our
products online. Then increasing awareness of brand by aid and leasing of
facility and construction of standard cosmeceutical skin care. In the 3rdyear, an
official website is projected to be launched and innovations in packaging’s and
marketing materials are expected; in the 4th year, we are looking forward to
setting up an office space and also a documentary will be produced and made
as a CSR that will also help to promote the brand and help in increasing the
market share of 0.15%. Then we’ll look forward to spread our brand
geographically.
32 | Page
BIBLIOGRAPHY
⮚ https://www.profitableventure.com/skincare-production-business-plan/
⮚ https://www.academia.edu/43069002/SAMPLE_BUSINESS_PLAN_FOR_COS
METICS_BUSINESS
⮚ https://go.gale.com/ps/i.do?id=GALE
%7CA293070044&sid=googleScholar
&v=2.1&it=r&linkaccess=abs&issn=00482757&p=AONE&sw=w
⮚ https://www.scribd.com/document/92668996/As-Sing
⮚ http://docshare01.docshare.tips/files/11841/118411552.pdf
⮚ https://www.coursehero.com/file/30661630/INVENTORY-
MANAGEMENT-PPTpptx/
⮚ https://www.coursehero.com/file/p4o430e/71-Domestic-Market-Alm
ost-all- the-established-manufacturers-are-catering-solely/
⮚
https://www.sec.gov/Archives/edgar/data/94845/000119312512043484/d29
1
321d10k.htm
⮚ https://www.chegg.com/homework-help/questions-and-answers/risks-
relating-business-success-depends-ability-maintain-value-reputation-
brands- success-d-q52677755
⮚ https://www.annualreports.com/Click/27938
⮚ http://www.smeda.org.pk/
33 | Page

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GLOW SKINCARE FACIAL

CLEANSER AND SCRUB

SUBMITTED TO: SIR FAKHR E ALAM

strategy, supplier relationship strategy, marketing strategy, competitive strategy

SECTION 1: BUSINESS DESCRIPTION

SECTION 6: CRITICAL RISKS

SECTION 7: HARVEST STRATEGY

SECTION 8: MILESTONE SCHEDULE

BIBLIOGRAPHY -------------------------------------------- 33-34

A. GENERAL DESCRIPTION OF BUSINESS:

The proposed legal structure of the business entity is partnership among 5

C. GOALS AND POTENTIALS OF THE BUSINESS AND MILESTONES:

A. RESEARCH & ANALYSIS:

Everybody is in our target market location. We identified our target market

2) Market size & trends:

S.No. Company name

4) Estimated market share:

Manufacturer Retailer Distributor Customer

3) Advertising & promotion:

A. IDENTIFY LOCATION ADVANTAGES:

to a boom of commercial activities, an expected client base from students,

B. SCIENTIFIC OPERATIONAL PROCEDURES:

Acceptance of Raw Materials and Packaging:

Micro-organism Screenings and Inspection:

Mixing and Filling:

Appearance testing and inspection of semi-finished and finished products:

6) Furniture and fixture:

7) Office equipment requirement:

S# DETAILS QTY. TOTAL COST

RAW MATERIAL COST FOR 6 RATE

C. PERSONNEL NEEDS AND USES:

S# JOB TITLE QTY. SALARY PER MONTH

A. MANAGEMENT TEAM – KEY PERSONNEL:

Decentralization gives benefits to employees as well. The freedom and

Our management team will consist of the shareholders, the department

Profit and loss statement of parent company

JUNE 30 2023 JUNE 30 2022

3 years projected balance sheet

YEAR 1 YEAR 2 YEAR 3

Less Depreciation Expense (9500) (9500) (9500)

Advantages for being a limited company:

D. RESPONSIBILITIES, TASKS, BENEFITS AND SALARIES:

5) Marketing and Retail Manager:

1) Profit and loss statement:

3 years projected income statement

Depreciation expense 190,000 190,000 190,000

Interest expense @ 14% (1633078) (1692146) (1711816)

3 years projected cash flow statement

YEAR 1 YEAR 2 YEAR 3

Interest Paid (1633078) (1692146) (1711816

CONTRIBUTION MARGIN RATIO = Total sales ÷ total variable cost

BREAK EVEN = Total fixed cost ÷ contribution margin ratio

From the above calculations and projected income statement we estimated

a) Land and building:

SERIAL NO DETAILS COST

1) Lack of experience and history:

B. SOLUTIONS FOR POTENTIAL PROBLEMS:

1) Lack of experience and history:

C. OBSTACLES AND RISKS: