Ma Joanna Rieza Chua
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Business Plan
IN SUPPORT OF BUSINESS INNOVATION AND
INVESTMENT (PROVISIONAL) VISA
(--------)
Confidentiality Agreement
The reader acknowledges that the information provided by ------ in this business plan is
confidential; therefore, the reader agrees not to disclose it without the expressed written
permission of the director.
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Contents
Executive Summary.................................................................................................... 5
Chart: Financial Highlights .................................................................................... 6
Business Description ................................................................................................... 6
Company Summary ................................................................................................. 6
Management .......................................................................................................... 6
Need to be in Australia toConduct Business Activities ................................................... 7
Mission .................................................................................................................. 7
Objectives .............................................................................................................. 7
Products and Services .............................................................................................. 8
Future Product Development .................................................................................. 10
Locations and Potential Space ................................................................................. 11
Evaluating Choosing New South Wales ..................................................................... 13
Economic Benefit .................................................................................................. 14
Key Buying Industries ............................................................................................ 15
Regulation and Policy............................................................................................. 15
OH&S Policy ......................................................................................................... 15
Personnel Plan ......................................................................................................... 17
Table: Personnel ................................................................................................ 18
Chart: Organisational Structure ........................................................................... 19
Training Plan ........................................................................................................ 19
Market Analysis .................................................................................................... 20
Demand Determinants ........................................................................................... 21
Key External Drivers .............................................................................................. 21
Major Markets Segmentation .................................................................................. 22
Chart: Major Market Segmentation ....................................................................... 22
Competition .......................................................................................................... 23
Competitors ......................................................................................................... 23
Competitor Locations ............................................................................................. 24
Map: Competitor Locations .................................................................................. 24
Business Strategy .................................................................................................... 25
Strategy and Implementation Summary ................................................................... 25
Customer Service .................................................................................................. 25
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Infrastructure Equipment ....................................................................................... 26
Products and Services Segmentation ....................................................................... 27
Chart: Products and Services Segmentation .......................................................... 27
Clients ................................................................................................................. 28
Suppliers.............................................................................................................. 28
Keys to Success .................................................................................................... 31
Competitive Edge .................................................................................................. 31
Growth Strategy ................................................................................................... 31
Sales Strategy ...................................................................................................... 31
Marketing Strategy ................................................................................................ 32
Swot Analysis ....................................................................................................... 34
Milestones ............................................................................................................ 34
Financial Projections ................................................................................................. 36
Initial Expenses Summary ...................................................................................... 36
Table: Initial Expenses ........................................................................................ 36
Cash and Asset Expenditure ................................................................................... 36
Table: Funding................................................................................................... 37
Chart: Funding .................................................................................................. 37
Sales Forecast ...................................................................................................... 38
Table: Sales Forecast ......................................................................................... 38
Chart: Sales by Year........................................................................................... 38
Break-Even Analyses ............................................................................................. 39
Table: Break-even Analysis ................................................................................. 39
Chart: Break-even Analysis ................................................................................. 39
Projected Cash Flow .............................................................................................. 40
Table: Cash Flow ................................................................................................ 40
Projected Profit and Loss ........................................................................................ 41
Table: Profit and Loss ......................................................................................... 41
Chart: Profit Yearly ............................................................................................. 42
Projected Balance Sheet ........................................................................................ 43
Table: Balance Sheet .......................................................................................... 43
Appendix – Passport .............................................................................................. 44
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Executive Summary
The thriving industry of cosmetics, toiletries, hygiene, and personal care in Australia is
resilient and progressive. The industry is continuing to evolve in line with changes in the
global beauty industry. The industry’s activities include the manufacturing, wholesaling, and
retailing of products for the consumers.
According to IBISWorld, the ongoing product development designed to stimulate customer
interest and expand the sector's customer base, including a focus on millennial consumers,
has stimulated change across the beauty supply chain.
This success is also defined by the strength of the proposition, ability to fulfill orders during
quarantine and connection and direct relationship with the consumer; the rapid acceleration
in the ongoing shift to digital; and the accelerated consciousness of health, wellness, and
sustainability.
I have determined to invest in the hygiene, personal care, and specialty products industry in
Australia because of the growth the sector has made especially during the COVID-19
pandemic. I, ------, will establish ------ as a beauty and personal care business that
wholesales and imports quality health supplements, beauty products, toiletries, hygiene, and
other products from Europe to local suppliers in Sydney, Australia.
I will be the owner of this business with the full hope and intent to live and manage it in
Sydney. With the investment of $507,190, I intend to source local and international suppliers
and operate my business into a success. To fully execute a successful operation, I will be
hiring two full-time employees and later on, expand my staffing with casual/part-time help in
three years.
I have managed and operated a similar business of beauty and personal care products in my
hometown, Iran. Nojan is a successful distribution company providing goods and services to
different stores and pharmacies. As I extend the range of my services to best cater to my
clients in Iran, I have determined to invest in Australia as an opportunity to create a new
business of distributing only the best products globally.
To ensure my business is competitive yet flexible in the market, ------ will be dynamic and
adapt quickly to make investments in e‐commerce technology, digital customer acquisition,
online ordering, and delivery/logistics infrastructure. The internet has expanded consumer
opportunities to shop globally. This has provided consumers with the opportunity to avail
themselves of the latest products and innovations we will offer.
------ will uphold the commitment to innovation, quality, sustainability, and customer service
as I lead the business towards success.
IBISWorld’s data shows that the industry that my business is involved in is expected to grow
at an annualised 3.2%, reflecting favourable underlying social, economic, and demographic
trends. The industry is estimated to generate revenue of $8.3 billion in the current year,
having increased by 5.6% from the previous year. A sizeable increase in sales of personal
hygiene and home cleaning products in the wake of the outbreak of the global COVID-19
pandemic is expected to drive industry growth over the year.
5
Because of technological advances and digital communications, the industry is projected to
continue to drive the growth of an annualised 1.8% over the five years through 2024-25, to
$9.1 billion.
The following chart shows the business’s sales, gross margin, and net profit for the next three
years:
Chart: Financial Highlights
Business Description
The following are the various business aspects of Health and Beyond:
Company Summary
------- will be a retailer, distributor, and wholesaler of high-quality nutritional supplements,
cosmetics, toiletries, hygiene, and personal care products in Sydney. My business will partner
with local and international manufacturers throughout New South Wales and Europe.
I will be investing $507,190 as I intend to source local and international suppliers and operate
my business into a success. To fully execute my operation, I will be hiring two full-time
employees and later on, expand my staffing with casual/part-time help in three years.
Management
The increasing consciousness of health, wellness, and sustainability of consumers will benefit
the anticipated success of -----. With my practice and knowledge of the business, my business
will be achieving growth and profit potentials, exemplary staff performance, robust sales, and
innovative business strategies. As the managing director, I will develop and implement
straightforward and reliable business strategies to achieve my company’s goal.
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Need to be in Australia toConduct Business Activities
To fully obtain optimum efficiency in my business’s activities, I am determined to be actively
involved in my business’s initial establishment in Australia. I will be responsible for overseeing
the operation as this will identify success and minimise risks upon its formation. Likewise, I
will personally select my employees to secure a stable and dependable workforce.
Mission
------- will import and distribute quality nutritional supplements, cosmetics, toiletries,
hygiene, and personal products to Australian consumers. Our corroboration with international
and local brands who are passionate about safeguarding the consumer's health and well-being
will leverage the business towards success.
Objectives
-------‘s products and services aim to safeguard our consumer's health, personal well-being
and enhance their quality of life. The following are our objectives as a company:
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Establish an import, wholesale/retail business in the city of Sydney, New South Wales
Achieve the largest market share in the city for imported products
Maintain robust relationship with suppliers, manufacturers, and the state
Increase average length of customer relationships and decrease customer turnover
Promote a clean and healthy environment in their homes and surroundings
Provide personal freedom, self-expression, and, individuality by choosing the best
products suited for them
Provide quality products and customer service at a reasonable price Create jobs by
employing local professionals
Fulfill economic responsibility to the state by providing employment
Products and Services
My company is to import, supply, distribute nutritional supplements, cosmetics, toiletries,
hygiene, and personal products to different pharmacies, shops, and other commercial
establishments. However, for my operations to scale up, I will ensure that -------will be active
as well in our e-commerce activities.
The following are the different products that we aim to provide to different pharmacies,
commercial and retail establishments, and online marketplaces:
Household cleaning agents and disinfectants
We will distribute a variety of household
care items such as soaps and
detergents,
polishes
and
other
household cleaning agents.
Fragrances, perfumes, and cosmetics products
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We will source various cosmetics
products ranging from matural and
organic-based, chemical-free, parabenfree, phthalate-frees, sulphates-free
and other products free from artificial
fragrances.
Fragrances and perfumes will range
from
mass-market
and
premium
products.
Toiletries and personal care products
We will distribute and import toiletries
and personal care products along with
bath, body and soap products, talcum
powders,
deodorants
and
antiperspirants, lotions, sunscreens and
body oils.
Oral hygiene, hair-care, and skincare products
We will distribute products such as
toothpastes, dental floss, dental waxes
and dentifrices, skin care products such
as serums and oils, hair colors and
more.
We will supply a variety of feminine
products such as, femine wash, pads,
tampons, and menstrual cups and more.
Feminine hygiene products
Nutritional supplements
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We will supply a variety health
suppliements such as over the counter
and non-prescription essential vitamins,
minerals and other important nutrients
necessary for optimal health.
Future Product Development
The shopping behavior of consumers has changed since the COVID-19 pandemic took place.
There has been an increase in online activities and sales as people are required to stay
indoors. Consumers are more aware of personal hygiene and safety and the web is a safer
place to purchase goods and services. A contributing factor is the improvement of technology
that makes applications and websites user-friendly for the now-health-conscious community.
The future of -------will be to work with Australian and European companies who are
passionate about producing quality products for the well-being of consumers, the
environment, and the community; who have the robust technology to adapt to the changing
market; and who are committed in sustainable and humane production of goods and services.
We will later expand our products and services to different outlets of the markets. We will not
only focus on our brick-and-mortar business but will also reinvent towards e-commerce,
where sales are currently doubled. Our importation and distribution of safe, sustainable, and
effective products to the Australian market will benefit the community and the economy as
well.
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Locations and Potential Space
------- will be located in Sydney. To obtain the capacity to serve clients as a distributor and
a wholesaler, a small showroom-type facility is required. Then to serve household consumers
directly a storefront for retail purposes is required. I also envisage having a mobile suite to
market at fairs, fetes, and markets.
Following are potential ‘types’ of locations that offer a reasonable mix of space, aesthetics
and location:
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Evaluating Choosing New South Wales
The retail industry includes traditional sales outlets for consumers and business as well as
online retailers and commission-based selling. Australia has achieved international recognition
for its beauty and grooming industry and some 200 Australian companies currently export
their products overseas.
According to the Australian Government website, https://www.austrade.gov.au/, and
IBISWorld, there has been international recognition for fashion and cosmetics and it is one of
Australia’s stimulating dynamic areas.
Below is a snippet from the website about the industry that my company, -------is involved
in:
According to the Fair Trading website of the New South Wales Government,
https://www.fairtrading.nsw.gov.au/, the beauty and cosmetic industry provides services and
products designed to help the consumers look and feel good. Australian Consumer Law and
health legislation provide a legal framework for the operation of the industry, so consumers
are safe, and their rights protected.
Importing goods helps my business meet our goals and provide goods to customers that may
not be available locally. To ensure our importing is successful, we need to be aware of
government regulations, including any clearances by the Australian Government and
additional taxes.
Australian export and import laws
Australia has strong trade ties with the rest of the world. Its location has also allowed Australia
to become a major supplier to markets in the Asia-Pacific region. -------ensures to be aware
of government regulations, duty taxes, permits, and quarantine and treatments that apply to
imported goods.
The regulatory framework for the hygiene, cosmetic and speciality product sectors has been
reasonably effective in achieving public health, workplace safety, environmental protection,
and national security goals.
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A general tariff rate of 5% applies to toiletries that are imported into Australia. However,
imports from developing countries or Canada are not taxed. Overall, toiletry and cosmetics
wholesalers receive little assistance at either the federal or state level of government.
Economic Benefit
The cosmetics and personal care products industry is one of the most dynamic and innovative
industries in Australia. Communities across the country rely on the industry’s economic and
social contributions to support jobs and spur economic growth.
The establishment of my business will benefit the economy as it supplements and enables
trade, powers other businesses, connects workers to their jobs, creates opportunities for
struggling communities, and protects the nation from an increasingly unpredictable economic
environment. Following are several proposed ways in which I may assist the economy with
this business.
Economic Growth
The industry is estimated to generate revenue of $8.3 billion in the current year as there is a
sizeable increase in sales of personal hygiene and home cleaning products in the wake of the
outbreak of the global COVID-19 pandemic.
Due to high disposable income, Australian consumers spend highly on beauty and personal
care (color cosmetics and skincare in particular). Companies are mainly targeting the
millennials, as they tend to follow trends in the industry closely and make frequent purchases
based on new product claims and application methods.
Local Employment
Cosmetic and toiletry retailing is the largest employer in the hygiene, personal care and
specialty products industry and it accounted for 27.0% of total employment. My business will
provide an opportunity for regional diversification and growth in employment for rural
Australia. In doing so, the local economy is improved, as the industry provides a wide selection
of employment choices. Through this, local employment will grow.
Local Tax Incom
There will be a benefit to supply businesses and then the local commercial and retail
businesses will benefit from the expertise and recommendations of products by my experience
and my business will add value to theirs.
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Key Buying Industries
The key buying industries that my business is involved in are as follows:
Pharmacies in Australia
Convenience stores in Australia
Department stores in Australia
Supermarkets and grocery stores in Australia
Consumers in Australia
Regulation and Policy
Regulatory compliance requirements for both the manufacture and importation of cosmetics
and toiletries are covered by several regulatory bodies, including the Therapeutic Goods
Administration, the Australian Competition and Consumer Commission and the National
Industrial Chemical Notification and Assessment Scheme (NICNAS).
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OH&S Policy
My business ensures that the operations are in line with federal regulation, and abide by the
state laws I am required to recognise.
Complying with the Australian Consumer Law
There are several things -------can do to help ensure that our products supplied are safe and
comply with the ACL and this includes:
Implementing our in-house compliance program making use of suitable expertise and
facilities
Regularly revising compliance program to ensure relevance
Only sourcing products from reputable manufacturers/suppliers that can demonstrate
they have quality systems in place and that their products comply with relevant
standards
Visually inspecting the products we supply to ensure the ingredients list is prominently
displayed in English and can be read without strain or difficulty
Asking for documentary evidence to demonstrate that the ingredients listed on the
product are the same as those in the formulation
Conducting third-party testing of batches prior to shipping the product to Australia and
regularly visiting facilities
Not offering any cosmetic product for sale unless we are confident that it is safe and
compliant with relevant laws
-------will have worker health and safety committees in the various areas we operate which
monitor employees' health and safety at work. Each workplace has its system to prioritise the
safety of employees and other workers, employing a policy and targets:
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Preventive action for occupational accidents
Identification of potential hazards
Risk assessment
Mitigation of the highest risks
Inherent safety and safeguards
The following are Health and Beyond’s roles and responsibilities for determining and assessing
risks at the workplace:
Ensure the health and safety of workers in every aspect related to work
Have an assessment of the risks to health and safety at work, including those facing
groups of workers exposed to particular risks
Take appropriate measures so that workers and/or their representatives receive all the
necessary information following national laws and/or practices
Consult workers and/or their representatives and allow them to take part in discussions
on all questions relating to health and safety at work
Decide on the protective measures to be taken and, if necessary, the protective
equipment to be used
Take the measures necessary for the health and safety protection of workers
Ensure that each worker receives adequate health and safety training, in particular in
the form of information and instructions specific to their workplace or job
Take appropriate measures so that employers of workers from any outside
establishments engaged in work in their establishment receive adequate information
under national laws and/or practices, and have received appropriate instructions
regarding health and safety risks during their activities in their establishment
Document, monitor, and review the risk assessment and the measures taken
All employees of my business have strict obligations and responsibilities under this policy to
put safety first, to work safely and to report unsafe work practices or situations to their
manager or supervisor.
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Take care, as far as possible, of their health and safety and that of other persons
affected by their acts or commissions at work following their training and the
instructions given
In accordance with their training and the instructions given:
o Make correct use of machinery, apparatus, tools, dangerous substances,
transport equipment and other means of production
o Make correct use of the personal protective equipment supplied to them and,
after use, return it to its proper place
o Refrain from disconnecting, changing, or removing arbitrarily safety devices
fitted, e.g. to machinery, apparatus, tools, plant and buildings, and use such
safety devices correctly
o Immediately inform the employer and/or the workers with specific
responsibility for the health and safety of workers of any work situation they
have reasonable grounds for considering to be a serious and immediate danger
to health and safety and of any shortcomings in the protection arrangements
o Cooperate, per national practice, for as long as may be necessary to enable the
employer to ensure that the working environment and working conditions are
safe and pose no risk to health and safety within their field of activity
Personnel Plan
For my personnel, I will include a permanent Sales/Purchasing Manager and a Retail Store
Manager, and a casual/part-time Store Assistant to help me with the initial operation of the
business. As my business progresses, I will be adding additional help from casual/ part-time
Store Assistants.
Following are position briefs of each employee, the personnel table showing the anticipated
investments for the staffing within the specific period, and a chart indicating the proposed
organisational structure of the business:
Retail store manager
The Retail Store Manager is in charge of overseeing personnel and operations at a retail store.
Typically, such stores will specialise in some product offerings. Our Retail Store Manager
typically ensures and schedules staff and associates. He/she will train or supervise new hires,
interview potential workers, and extend job offers. The Manager also ensures that all sales
are reconciled daily, with transactions closed and deposits arranged.
Tasks:
Implementing purchasing and marketing policies, and setting prices
Promoting and advertising the establishment's goods and services
Selling goods and services to customers and advising them on product use
Maintaining records of stock levels and financial transactions
Undertaking budgeting for the establishment
Controlling selection, training and supervision of staff
Ensuring compliance with occupational health and safety regulations
Sales/purchasing manager
My Sales/Purchase Manager is responsible for the implementation of the company’s sales
programs and sales activities, to meet or exceed established sales goals. He/she is also
involved in the development of finding cost savings to corporate strategy production. The
manager will also review proposals and marketing strategies.
Tasks:
Determining, implementing and monitoring purchasing, storage and distribution
strategies, policies and plans
Preparing and implementing plans to maintain required stock levels at minimum cost
Negotiating contracts with suppliers to meet quality, cost and delivery requirements
Monitoring and reviewing storage and inventory systems to meet supply requirements
and control stock levels
Operating recording systems to track all movements of supplies and finished goods,
and ensuring re-ordering and re-stocking at optimal times
Liaising with other departments and customers concerning requirements for outward
goods and associated forwarding transportation
Overseeing the recording of purchase, storage and distribution transactions
Directing staff activities and monitoring their performance
Provision of products and services to meet customer or client requirements
Store assistant
He or she provides customer service. The Assistant will greet customers when they enter the
store and will ask the customers what kind of assistance can be provided. The Assistant may
be able to offer recommendations based on the customer’s needs.
17
Tasks:
Assist the director in day-to-day store operations
Assist customers and escalate customer requests or complaints to the manager as
necessary
Monitor closing, opening, and cash reconciliation, and complete reports
Schedule the appropriate number of employees while taking into consideration backups, sick days, and peak hours
Table: P ersonnel
Personnel Plan
Purchasing Manager
Retail Store Manager
Store Assistant 1
Store Assistant 2
Store Assistant 3
Total People
Total Payroll
18
Year 1
$
$
$
$
$
3
Year 2
$
$
$
$
$
3
Year 3
$
$
$
$
$
5
Chart: Organisational Structure
Purchasing
Manager
------Managing Director
-------Pty Ltd
Retail Store
Manager
Store Assistant
1
Store Assistant
2
Store Assistant
3
Training Plan
Training for us will be to assist create and motivate our skilled staff along the journey towards
an effective workforce that. I will then organise a comprehensive training program to develop
and enhance my employees’ skills individually and as a team. Following are several attributes
I intend to implement in this.
Internal training
I intend to provide internal training that covers customer service, technical aspects, time
management and company rules and policies. The topics covered in the internal training are
as follows:
Staff induction
Detailed job descriptions and responsibilities
Customer service training
Refresher training will be conducted quarterly
Weekly and monthly team meetings to encourage communication
Reward and recognition program to encourage high achievers
On-the-job-training for professional development
Ongoing observational evaluations structured reporting (manager feedback)
External training
I have also recognised the importance of external complementary training to further improve
our staff’s skills and capabilities. The external training includes external courses, off-the-job
components, customer service workshops, and discussions about Australia’s geography,
culture, economy and environment. Such topics may be:
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Improved productivity and quality
Ability to generate more revenue
Skills sharing
Improved job satisfaction
Career progression
Safe handling of products
Market Analysis
The cosmetics and toiletry wholesaling industry is projected to grow its revenue modestly
over the five years through 2024-25. An ageing population, ongoing development of new
multi-functional products and an ever-increasing array of new independent and digital brands
are likely to stimulate change in the industry's operations over the period. Distribution
channels are projected to continue diversifying as upstream manufacturers increasingly rely
on an omnichannel presence to achieve a cross-sectional consumer based.
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Demand Determinants
The demand for cosmetics, perfumes, toiletries and personal grooming products is determined
by a wide array of discretionary variables.
For example, fashion trends, combined with the influence of continued product developments
and innovations, and heavy industry marketing play a strong (even if not quantifiable) role in
influencing demand. Over recent years, segments of the male population have become
increasingly image conscious, aided in part by increased media exposure including malespecific lifestyle magazines. The celebrity idolisation phenomenon has also affected demand,
particularly in the mass-market fragrance segment, where there are a growing number of
products developed in conjunction with pop stars, models, actors and fashion labels.
At the same time, upstream manufacturers are spending ever-increasing sums on developing
and marketing new fusion products in an attempt to increase demand and product scope in
an otherwise mature and saturated marketplace. In most instances, consumers are not
necessarily increasing the volume of personal care purchases made. Thus, marketing is being
used to convince consumers to trade up by promising better quality, multi-functionality and
convenience.
Society's general perceptions regarding the importance of personal grooming play a role in
determining demand. Consumer attitudes towards animal testing, environmental concerns or
the use of synthetic chemicals may also influence demand. A growing number of consumers
are now considering the ethical, social and environmental consequences of their purchasing
patterns, which have been altered in favour of organic, local, eco-friendly or fair trade and
Ecocert products. Economic variables, including discretionary income and expenditure
patterns also play a role in determining demand. For example, items regarded as essential or
which closely associate with personal care, such as shampoos and conditioners, are relatively
impervious to economic slowdowns. However, purchases of items of a discretionary nature,
such as perfumes, can be curtailed during times of adverse economic conditions.
Key External Drivers
The following are the key external drivers of the industry my business is involved in:
Demand from supermarkets and grocery stores
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Demand from department stores
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Demand from cosmetic and toiletry retailing
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Demand from pharmacies
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Real household discretionary income
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Health consciousness
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Major Markets Segmentation
Upstream beauty and personal care manufacturers use a range of distribution channels for
their products, most of which are targeted at consumers of different ages, and economic and
social statuses.
However, over the past five years, upstream manufacturers have been widening their
distribution channels to reach a larger customer base, with some manufacturers now moving
into high-volume distribution channels, and new channels such as travel retail or online. These
shifts, particularly online retailing, allow manufacturers to bypass wholesalers, which affects
cosmetics and toiletry wholesaling industry players. Wholesalers distribute products to a
variety of downstream retail outlets including supermarkets and grocery stores, department
stores, specialty retail stores and retail pharmacies. The following chart depicts the major
market segmentation, then following is a brief of each:
Chart: Major Market Segmentation
Supermarkets and grocery stores
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Specialty retail stores
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Pharmacies
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Competition
The cosmetics and toiletry wholesaling industry that my business is involved in is highly
fragmented in nature. Many small players are operating in the industry, most of which
command less than 2% market share.
Moreover, it is resilient to changes in economic conditions. This is due to both diversity in the
subsectors comprising the client base of the industry. The industry as a whole is able to
survive the sector-specific downturn. The diversity in the client base allows the industry to
capitalise on good economic conditions and survive the different business operating
environments.
This is a big advantage for my business operating in the industry, as it can be flexible as time
changes with different market demands. This is a strong suit for my business as we import,
wholesale, and retail quality personal care products to the market. Furthermore, we ensure
to be aware of every beauty and wellness trends and comply with state requirements to be
able to compete in the industry.
Competitors
I’ve been interested to review the competitors in Sydney and pleased to report that their
market is far from saturated. The following four snapshots and descriptions offer some insight
into the businesses of whom I would consider a fair competitor:
Cosmetic Capital
----Cosmetic Capital is an online importer, distributor, and wholesaler of cosmetics, beauty
products, skincare products, and accessories located in Sydney, Australia.
Beautopia Hair & Beauty
----Beautopia Hair & Beauty is a wholesaler of imported and local brands of hair and beauty
supplies.
AMR Hair & Beauty
----AMR Hair & Beauty supplies salon essentials, products, equipment, furniture and accessories,
beauty and hair products.
-
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Competitor Locations
The following is map displays the location of these businesses:
Map: Competitor Locations
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Business Strategy
-------is to provide quality products to the Australian retail market by importing and
wholesaling. Our company is willing to utilise the necessary resources to ensure the success
of our import and wholesale venture. -------is also committed to providing in-depth service to
this market in terms of assistance in distribution, advertising, and promotion.
My business strategy outlines the actions and decisions my company plans to take to reach
business goals and objectives:
Grow sales from new products
Together with our manufacturers, we will also invest in research and development in order to
constantly innovate, even with your most successful products.
Improve customer service
We will build a strong reputation for having exceptional customer service as we focus our
objectives on something like online support or a more effective call center.
Technological advantage
Obtaining a technological advantage can often achieve better sales, improved productivity or
even market domination for my business. This can mean investing in research and
development or even acquiring employees with unique skills that will give my company a
technological advantage.
Improve customer retention
It's generally far easier to retain a customer than spend money to attract a new one, which
is why this is a great strategy as we see opportunities for improvement in customer retention.
This strategy requires us to identify key tactics and projects to retain our customers.
Sustainability
This business strategy is aimed at increasing the sustainability of our business. For example,
the objective could be to reduce energy costs or decrease the company's footprint.
Strategy and Implementation Summary
-------is to supply retails stores, pharmacies, and other commercial or online establishments
with imported health supplements, beauty products, toiletries, hygiene, and other products
from Europe, and to sell to walk-in customers out of our retail store.
This section of the business plan identifies the path my business intends on using to establish
and grow the business. It includes strategies identifying how the business will maintain a
competitive edge, market the company, grow sales, develop a network of contacts and
customers, and so on. Milestones are established that includes the budget for implementation
of each step. The implementation of effective strategies is key to my company’s success and
a way to mitigate risks.
Customer Service
My business ensures that the services I offer and develop comply with health, safety,
environment and quality regulations. By continually improving my business’s performance, I
will be able to achieve customer satisfaction and loyalty.
Similarly, my business will contribute to the communities where I operate, by engaging with
stakeholders and supporting a range of community and social initiatives.
25
Customers are the number one priority in my business. I will tailor-fit my company’s products
and services to suit the needs of each customer. I will give my best in providing quality
products and services to achieve a stable clientele base and maintain a successful and
sustainable business. In order to provide exceptional customer service, I must ensure to
maintain the following:
Accurate product presentation
Clear sales policies
Professionalism
Timeliness
Efficiency
Appreciation
Follow-through
Infrastructure Equipment
Health and Beauty will be wholesaling and retailing our quality products to different businesses
in Australia. Aside from our bulk goods coming from our international and suppliers, we will
also display the items in our retail store for visual merchandising purposes and get sales at
the same time. The following are the equipment that I will be purchasing to offer the
opportunity for me to buy and sell products in bulk within the operations of my business:
Store and product shelving
Packaging equipment
26
Platform trucks for bulk goods
Delivery vans and trucks
Products and Services Segmentation
Cosmetics and toiletry wholesaling industry firms distribute a variety of toiletries, cosmetics,
household soaps and detergents. Key products include hair care products, skincare, bath and
body products, oral hygiene products (e.g. toothpaste), cosmetics, perfumes and fragrances
(both natural and synthetic), deodorants (including antiperspirants) and household care
products. New or re-packaged and reformulated products have been constantly entering the
market, aiming to retain consumer interest in an otherwise mature and saturated market.
The product segmentation provided is based on downstream household expenditure patterns
as measured by the ABS.
Chart: Products and Services S egmentation
Cosmetics, perfumes and fragrances
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Household care products
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Personal care products
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Hair care products
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Oral hygiene products
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27
Other products
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Clients
My business is involved in the import, wholesale, and retail of various cosmetics and personal
care products across Sydney and New South Wales. I have determined that health
consciousness during the pandemic has boosted the industry my business is involved in.
General consumers from families, companies, or corporations will purchase my products and
services. For my e-commerce presence, I believe that the Gen-Z, Millennials, or any other
tech-savvy demographics tend to be online more.
By wholesaling my products, the following generally will be my clients:
Supermarket and grocery
Department stores
Pharmacies
Speciality cosmetics and toiletries store
Suppliers
I have determined that to fully compete in the industry, I need to source my business’s
products from two sources: local and international. The following are the identified suppliers
of my business:
European suppliers and manufacturers:
Pôle Cosmétique
https://pole-cosmetique.fr/
Full-service cosmetic laboratory in France.
Equipe MedCon GmbH
https://www.equipe.international/de.html
Manufacturer of disinfectants for personal hygiene products in Vienna Austria.
Naturaequa
https://www.naturaequa.com/
Develops ethical, natural, simple and essential cosmetic products using aluminium and glass
and recycled cardboard packaging.
DutyBox
https://mydutybox.com/
It is a modern system of concentrate capsules for home care from Russia.
Jüstrich Cosmetics AG
https://www.juestrich-cosmetics.ch/de/
It is a wholesaler of cosmetic products in Switzerland.
Vencil Pharmaceuticals Ltd
https://vencil.gr/
28
It is a Greek pharmaceutical company involved in the production, sales, and distribution of
high-quality pharmaceutical cosmetics, skin care products, food supplements, sunscreens,
and sanitizers.
Household and Toiletries Manufacturing CO
https://sukhtian.com/en
Mirtec International Co
https://www.mirtec-int.com/
Is a manufacturer in the field of health care, personal care, and home care products.
Evivita
https://evivita.com/
It is a full-service production of health products and cosmetics in the Netherlands.
Australian suppliers:
Outback Organics
https://www.outbackorganics.co.uk/
Offers a range of ethical botanical skincare solutions whose ingredients come from innovative
natural extracts from the coastline, forests, and bushlands of Australia.
Nature’s Care
http://www.naturescare.com.au/
Their products are encapsulated and blended in Sydney Australia from local and imported
ingredients for supplements, skincare, and overall health.
Miessence
https://miessence.com/
Manufactures organic products for skincare, body and hair care, cosmetics, and more that
support vibrant health, and total well-being in Australia.
Organic Formulations
https://www.organicformulations.com.au/
Manufactures certified organic personal care such as hair care, body care, and hand care.
29
30
Keys to Success
IBISWorld identifies 250 key success factors for a business. The most important for this
industry are:
Having links with suppliers
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Access to niche markets
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Having a clear market position
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Access to the latest available and most efficient technology and techniques
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Competitive Edge
My business ensures to nurture a culture of confidentiality and authenticity, which will lead to
a strong partnership with clients built around trust. I have determined to be collaborating with
and developing local and international networks with other suppliers. This will establish a
critical mass to service wholesalers and retailers. This will improve the product quality of
products in Australia as my network grows.
Growth Strategy
I am an industrious businessman, and I believe that identifying and developing my team’s
strengths will harness their potential and lead towards a productive work culture. Aside from
strategically building partnerships and acquisitions, my approach to grow my company is to
prioritise and cultivate my team, as they are the heart of the operations. This will enable my
team to connect well with the clients and approach tasks with confidence in their abilities.
With the combination of experience and expertise, my business and its partners could form a
reputable operation in the market.
Sales Strategy
The customer's expectations must be exceeded, always. The only way my company can
succeed is if I ensure all of the customer's needs are being met and the customer leaves the
transaction with the feeling that they were truly appreciated. It is important to become
familiar with each customer, gauge their specific needs and then deliver the appropriate
advice and service.
31
Encourage orders
We will provide enough information about our products by giving sales brochures, product
information and specs, step-by-step guides on how to display our goods for maximum effect,
videos on how to use our products, plus anything else that might be useful.
Reduce or eliminate the order minimum
For their first order of our clients, a great encourager is to offer to reduce or eliminate the
order minimum barrier. Making an order up to a certain amount can feel like an imposed
limitation, and it is useful later on, but the very first order isn’t the time to be strict about
enforcing it.
A smaller minimum order amount or no order minimum amount at all removes that barrier in
their mind so they can focus on buying exactly what they want
Leverage seasonal campaigns
A seasonal campaign can bring unique product promotion activities. We can tie in one of our
product lines with the holiday theme as this is a great way to capture the attention of people
at a time of heightened sales. Consequently, we will leave enough time to deliver the goods
to our wholesale customers before the date and adjust our promotion dates accordingly.
Lower pricing based on quantity ordered
One strategy for an ongoing incentive is to utilise quantity-based discounts. The way it works
is by providing a discount on a sliding scale depending on how much they add to the cart. The
chart below is an example:
Wholesale
Wholesale
Wholesale
Wholesale
Role
Customer
Customer
Customer
Staring Qty
5
10
20
Ending Qty
9
19
Wholesale Price
$15
$10
$5
The wholesale price per unit is lower based on the quantity range they add to the cart. This
is a great incentive for boosting our order size as well since customers will often stretch
themselves just a little farther to get to the next quantity bracket.
Limited time offers
Setting a time limit incentive on our offers is essential when we want them to take action
right now. Knowing that there is only a short window to take advantage of a special price can
encourage our wholesale customers to order now rather than later.
As the order size of a typical wholesale order is much larger than a retail order we want to
ensure we still leave enough time for them to count up their stock and find out what they
require.
Marketing Strategy
Forming an import and wholesale marketing strategy is very important if I want to succeed
in growing Health and Beyond. I will focus on three areas in my marketing strategy:
32
Attracting new wholesale customers
Getting more orders from your existing wholesale customers
Increasing the sales revenue (order size) from our wholesalers
Sending samples
As a wholesale distributor, we can use a similar technique of sending samples out quite
effectively. Sending samples should include information about our company, details about the
sample itself, a list of other products that we offer and an invitation for them to register as a
wholesale customer. It might also help to include an incentive for them to register. After
which, we will schedule a phone call a few days later to check they received the sample and
to ask if they would like to place an order.
Discounts
Most consumers respond positively to discounts, my business will fit their pattern and factor
discounts into their spending decisions. The power of a great discount is its ability to convince
buyers that are receiving special treatment, and our value discounts need to be attractive
when stacked against the competition.
For better results, we will consider rotating the products we discount to incentivise customers
to monitor our marketing channels.
Attend relevant tradeshows and meetups
Tradeshows are great for spreading awareness of our company and products. Being proactive
in attracting people into our booth by using games, free samples and inviting them to try our
products will give us an advantage. We will also make sure we collect contact information for
as many attendees as we can and follow up on every single lead. Finally, the other indirect
benefit of attending tradeshows is that we can also get to meet other business owners and
form business relationships in the future.
33
Swot Analysis
S
Low volatility
W
None
and
steady level
of assistance
Low imports
High
competition
High profit
vs.
sector
average
Low revenue
per
employee
O
Hight
opportunity
growth
-/-)
T
Health
consciousness
Very
low
revenue
growth
-)
Demand from
supermarkets
and grocery
stores
Low
perfromance
drivers
Loe customer
class
concentration
Low product/
service
concentration
Low capital
requirements
Milestones
The following are the milestones for the development of Health and Beyond:
Establish the business
I will comply with all the requirements such as legal documents, GST registration, business
plan, business documentation, and other requirements mandated by the local and national
government bodies in Australia to establish my business. I will also obtain approval
registrations from relevant organisations, departments, and trades in New South Wales
necessary for my business.
Location and set-up of the business
The location where my business will be established is one of the key factors in our success.
The business location is based on accessibility for consumers, good exposure to business and
occupancy cost within budget. After finding the right location, I will set up and build the
equipment needed for the treatment facility.
Recruitment of employees
I have determined that it is essential for my business to have a strong workforce that will lead
our operations. Therefore, the qualification of the potential candidate shall be determined
first. This ensures that every employee possesses the characteristics and skills deemed
important for the person’s respective position and corresponding duties and that these
employees will deliver the best products and services.
34
Training and induction of personnel
Competent candidates are chosen carefully, and quality training will be executed by me as
the director to prepare them for their work-related tasks necessary in my business. Employees
and staff are subsequently appointed to portray their specific roles based on their capability
and level of expertise.
Formal start of operations
An important milestone of the business would be to formally accomplish the beginning of the
business’s operations in New South Wales, Australia.
35
Financial Projections
The following sections outline the financial projections for --------:
Initial Expenses Summary
I am seeking to invest an initial investment of $ for the establishment of Health and Beyond.
The following is the breakdown of the initial expenses for the business:
Table: Initial Expenses
Initial Expenses
Advertising and Promotions
Contractors
Insurance
Legal
Professional Fee's - Accountant, Bookkeeper,
Consultants
Rent
Utilities
Vehicle Maintenance and Fuel
Web and App Design
Total Initial Expenses
Initial Assets
GST Paid
Cash Required
Other Current Assets
Fixed Assets
Total Assets
Total Requirements
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Cash and Asset Expenditure
The following is a breakdown of the cash and asset expenditure in the initial assets section:
Cash required
The cash required section includes 6 months’ worth of salaries of $-.
Other current assets
This will cover the expenses for the inventory to be sold at the store $-.
Fixed assets
The fixed assets section will cover the following expenses:
Shop and storage fit out
$ Point of sale technology
$ Inventory and logistic control management
$ Purchase of vehicles
$ Office furniture and IT
$-
36
The following initial funding table indicates that I will not loan any amount for the
establishment of -------and will be investing in personal capital:
Table: Funding
Initial Funding
Initial Expenses to Fund
Initial Assets to Fund
Total Funding Required
$
$
$
Assets
Non-cash Assets from Initial
Cash Requirements from Initial
Additional Cash Raised
Cash Balance on Starting Date
Total Assets
$
$
$
$
$
Liabilities
Current Borrowing
Fixed Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
Capital Planned Investment
Owner
Additional Investment Requirement
Total Planned Investment
$
$
$
Loss at Initial (Initial Expenses)
Total Capital
Total Capital and Liabilities
Total Funding
$
$
$
$
Chart: Funding
37
$0
$0
$0
$0
$0
Sales Forecast
The projected sales forecast for -------indicates sales of up to $ for the first year and
increasing to over $1 million by the third year of operations. These sales are derived from
my experience but also are projections that I must make to create a profitable business and
hence, our goal.
Table: Sales Forecast
Sales Forecast
Feminine Hygiene Products
Fragrances, Perfumes, and Cosmetics
Products
Household Cleaning Agents and
Disinfectants
Nutritional Supplements
Oral Hygiene, Hair-Care, and Skincare
Products
Toiletries and Personal Care Products
Total Sales
Direct Cost of Sales
Cost of Goods Sold/Purchases
Subtotal Direct Cost of Sales
Year 1
$
$
Year 2
$
$
Year 3
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Year 1
$
$
Year 2
$
$
Year 3
$
$
Chart: Sales by Y ear
Feminine Hygiene Products
Fragrances, Perfumes, and Cosmetics Products
Household Cleaning Agents and Disinfectants
Nutritional Supplements
Oral Hygiene, Hair-Care, and Skincare Products
Toiletries and Personal Care Products
38
Break-Even Analyses
The break-even analysis chart shows the estimated break-even point between sales and
profits.
The horizontal axis shows monthly sales, and the vertical axis shows monthly profits. The
slanting line shows the projected profit or loss at various sales levels. Where the line crosses,
the horizontal axis is the break-even point. What this means is that the company needs this
many sales to cover costs in a standard month.
The chart below will serve as a guide to check on what it takes in sales to make a profit. The
projected monthly revenue break-even is $:
Table: Break- even Anal ysis
Break-even Analysis
Monthly Revenue Break-even
Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost
Chart: Break-even Analysis
39
$
40%
$
Projected Cash Flow
The projected cash flow indicates a cash balance of $168,399 for the first year and increasing
to $665,608 by the third year of operations. This greatly signifies the steady growth of the
business in the local market. The following is the projected cash flow for Health and Beyond:
Table: Cash Flo w
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations
Additional Cash Received
New Current Borrowing
New Other Liabilities (interest-free)
New Fixed Liabilities
Sales of Other Current Assets
Sales of Fixed Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Principal Repayment of Current
Borrowing
Other Liabilities Principal Repayment
Fixed Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Fixed Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
40
Year 1
Year 2
Year 3
$
$
$
$
$
$
$
$
$
$0
$0
$0
$0
$0
$0
$
$0
$0
$0
$0
$0
$0
$
$0
$0
$0
$0
$0
$0
$
Year 1
Year 2
Year 3
$
$
$
$
$
$
$
$
$
$0
$0
$0
$0
$0
$0
$0
$0
$
$
$
$0
$0
$0
$0
$0
$
$
$
$0
$0
$0
$0
$0
$
$
$
Projected Profit and Loss
The projected profit and loss for -------shows a net profit of $ for the first year and $ for the
third year of operations.
Please know that the first year’s profit is significantly affected by returning the initial
investment and expenses. Then also please note that the cost from legal down to advertising
and promotions shown in year one have already been accounted for in the table of initial
costs.
Table: Pro fit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales
Gross Margin
Gross Margin %
Expenses
Payroll
Payroll Taxes (National Insurance, etc.)
Advertising and Promotions
Contractors
Insurance
Legal
Professional Fee's - Accountant,
Bookkeeper, Consultants
Rent
Utilities
Vehicle Maintenance and Fuel
Web and App Design
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
41
Year 1
$
$
$
$
Year 2
$
$
$
$
Year 3
$
$
$
$
$
60.00%
$
60.00%
$
60.00%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Chart: Profit Yearly
42
Projected Balance Sheet
The projected balance sheet shows a net worth of $ for the first year and increasing to $for
the third year of operation indicating a significant growth. The following is the balance sheet
of ------:
Table: Balance Sheet
Pro Forma Balance Sheet
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
Accounts Receivable
Other Current Assets
Total Current Assets
$
$
$
$
$
$
$
$
$
$
$
$
Fixed Assets
Fixed Assets
Total Fixed Assets
Total Assets
$
$
$
$
$
$
$
$
$
Year 1
Year 2
Year 3
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Fixed Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth
End Of Report
43
Appendix
44
