Professional Documents
Culture Documents
CNaturals, Inc.
12 Reinman Road
Warren, NJ 07059-5122
888-99-CNATURALS
908-822-8678 (Fax)
www.cnaturals.com
Prepared By
Sahana S. Barade
Executive Summary 3
Business Description 4
Market Analysis 4
Vision Statement 7
Vision Trigger 7
Mission Statement 7
Business Objectives 7
Business Operations 8
Marketing 8
Competitive Analysis 9
Legal Structure 10
Management Expertise 10
Support Personnel 11
Financial Information 11
Summary 14
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EXECUTIVE SUMMARY
The purpose of this business plan is to furnish information to persons of business interest
to the firm. The business is owned by Sahana S. Barade and is located in owned space at 12
The business produces pure natural, organic cosmetics including. vegan lip & eye
products, mineral make-up powders, skin creams, body lotions, masks, aroma therapy, natural
Based on the financial and competitive analysis presented in this plan, CNaturals, Inc. will be
successful.
It is anticipated that CNaturals, Inc. will become the leader in market share of its business
level (small to mid size) market within six years. CNaturals, Inc.’s vision trigger, “Nature
The President, Sahana S. Barade, has had extensive generational experience in the herbal
cosmetic and skin care field following the long tradition of her family. She also holds a Masters
in Telecommunication Engineering from the New York Institute of Technology, one of the
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THE BUSINESS DESCRIPTION
CNaturals, Inc. was incorporated (S Corporation) in the year 2005 in the state of New
Jersey with its Corporate office located at 12 Reinman Road, Warren, New Jersey 07059.
Mrs. Sahana S. Barade is its President and Chief Executive Officer. Mrs. Barade comes
education, having done her Masters in Telecommunication Engineering in the United States and
having worked in large Communication firm as a Network Engineer, she has always been a
Ayurvedic practitioner at heart and decided to choose the line of the family. Her interest in using
her family’s knowledge learnt over several generations compounded with an increased global
awareness of health concerns due to prolonged use of chemicals in skin care products as well as
generational change in outlook towards sustainable practices propelled her to start CNaturals,
Inc.
CNaturals, Inc. produces/sells pure natural, organic skin care and hair care products that
are vegan (non-animal tested). These products include lip products, eye products, mineral make-
up powders, skin creams, body lotions, masks, aroma therapy and natural soaps.
CNaturals, Inc. will be successful based upon the impressive response received from the
users of the test product for its effectiveness, natural ingredients, exponential growth of the target
MARKET ANALYSIS
Target Market:
CNaturals, Inc.’s customers in general are the U.S. and global markets. The target
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• “Beauty Buyers”
segment. LOHAS is a recognized market segment in the USA, Western Europe and South East
Asia. Progressive Asian countries, including Japan, Singapore and Taiwan have similarly aligned
interests. This market of late has been spearheaded by many a popular Hollywood celebrities.
According to Worldwatch Institute and Natural Marketing Institute (NMI), “LOHAS”, was
Beauty Buyers are people who value the quality and are sensitive the manufacture
process, ingredients of the products that they use and are conscious of the long term effects of the
products and value these items over sheer price of the products.
Natural Trade show attendees are very attractive population segments who are a much
targeted market for the products. These customers are very focused on what sort of products they
are looking for and so choose the Natural trade shows which occur throughout the year at various
locations throughout the world with the largest ones being in Anaheim, California; Boston,
Massachusetts; Hong Kong, China; London, United Kingdom; Dubai, UAE; Tokyo, Japan.
Finally, retailers & wholesalers (such as Spas, other resellers) who either access the
impressive website of CNaturals, Inc. or through contacts generated directly by the marketing
end of CNaturals based upon leads received through various channels, who are generally very
knowledgeable about the market/price structures and are very attractive for a firm such as
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CNaturals, Inc. which had a competitive advantage over several other similar market firms in
Market Size:
The US market was over $7 billion last year (per various organizations), small but fast
growing part (17% more than in 2006) of $56 billion health & beauty care industry. Global
market grew by 5% in 2006 to reach $25.1 billion, with 28% increase forecasted by 2011.
Amount, U.S. Dollars $0.5 Million $1.0 Million $2.0 Million $3.0 Million $4.5 Million
Marketing Plan:
The firm intends to market the products to their target market through trade shows, trade
community networks, company internet website, traditional methods such as trade magazine
advertisements, networking, contacts developed through experience and good old fashioned
word of mouth.
Competitive Positioning:
The firm expects to be in top tier of business level (small to medium size) in 6 yrs.
Active participation in many networking groups, deep relationship and links to major
websites is central to our partnership strategy. Many allied trade organization memberships gives
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VISION STATEMENT
In six years, CNaturals, Inc. will become the premier skin and hair care product
VISION TRIGGER
The main vision trigger will be the slogan: “Nature Tested, Nature
natural, healthy and effective qualities of the products sold to the target customers.
MISSION STATEMENT
We, the employees and management of CNaturals, Inc., make this pledge to you,
We pledge that we will provide the skin and hair care products of the highest
BUSINESS OBJECTIVES
CNaturals, Inc. will have these business objectives during its first three years of
operation:
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BUSINESS OPERATIONS
The operations of CNaturals, Inc. will be described using the main functions of the
MARKETING
CNaturals, Inc.’s target market will be the LOHAS demographics, Beauty Buyers,
Natural Trade show attendees and Retailers & wholesalers at both national (U.S.) and global
level.
Product
Lip products including Lipsticks, Lip Glazes, Lip Liners; Eye products such as eye liners,
mascara, eye shadows, Mineral Make-Up Powders that include Blushes, Foundations, Eye
Shadows. Additionally, CNaturals sells Skin Creams, Body Lotions, Masks, Aroma Therapy,
Price
Prices for CNaturals, Inc.’s products will vary according to the type, size and delivery
mode of product required by the customer, and whether the product is sent as general sales
Place
As CNaturals sells product over the internet for the most part and has no retail presence, location
of the facility from sales perspective is not critical for the current projected sales volume.
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CNaturals, Inc. will be located in an industrial/commercial zone area of a relatively
wealthy town located in central New Jersey within proximity of major highways, airports (New
York tri-airports), seaports (New York bi-Seaports), and in the shadow of two major cities (New
York and Philadelphia) in the Northeast U.S. The headquarters is housed in an approximately
2500 square foot building that can be expanded. The building is owned by the founder.
Promotion
Colorful pamphlets with the various product descriptions will be emailed to various target
customers. CNaturals, Inc. does not intend to use mass mailing due to environmental reasons
CNaturals, Inc. will also use their web site to reach direct customers, both at national and
CNaturals, Inc. will advertise in trade magazines, through presence in Trade shows.
CNaturals, Inc. also promotes through trade community networks, blogs, networking
through contacts developed over the years and through word of mouth.
COMPETITIVE ANALYSIS
CNaturals, Inc. faces competition both at national and global level. As advancements are
made in e-commerce, more and more businesses will become competitors. However, the new
technology also works in the favor of CNaturals, Inc. as it will allow the company to distribute
its products internationally as opposed to just nationally in an increasingly global market where
some of the prominent players are emerging markets, notably Brazil, Russia, India and China,
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LEGAL STRUCTURE
Sahana S. Barade.
MANAGEMENT EXPERTISE
The President and CEO, Mrs. Sahana S. Barade, has extensive experience with
herbal products and has been involved in the nascent but highly evolving natural cosmetic
product business.
nurtured and applied her family herbal experience into the skin and hair care area and looking at
the impressive business model, she left her successful and fast rising career in the technology
Scientist and Professor of Molecular Biology at a prominent University in New York, whose
research interest is in Neurodegenerative diseases. Dr. Karthikeyan also has keen interest in the
use of herbal medicines and brings her vast knowledge in both the ancient and modern sciences
to the firm.
CNaturals, Inc. is also served with Technical and Marketing Counsel by Mr. Sai S.
Barade, who is the President of a successful Engineering Design Firm in New York City.
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SUPPORT PERSONNEL
The business will operate with a total of four full time equivalent (FTE) employees: a
manager (full-time) and one administrator (part time) and two manufacturing employees (part-
time).
The owner intends to train the workers so she can focus her efforts on the financial and
marketing aspects of the business. The part-time workers will be paid at a rate of $10.00/hr
initially with a structured plan for pay increases. A policy of promotion from within will be
adopted. Within five years, the owner plans to add ten full-time employees who will assist in the
FINANCIAL INFORMATION
Financial Objectives
The following objectives are for the first five years of CNaturals, Inc.:
The items in the Exhibit 4, One-Year Cash Flow Projection, have been arranged in a
specific way: sources of cash (cash receipts), cash needed to purchase assets (equipment), cash
needed to pay expenses (rent), cash need to pay liabilities (payroll taxes), and owner’s draw.
Sources of Cash
1. Personal Funds. The owner has invested $80,000 into the business.
2. Loan Proceeds. The owner has been using $50,000 Business Credit Line for Wachovia
Bank.
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3. Cash Receipts from Business. Cash receipts based upon projections indicated in Market
Uses of Cash
2. Marketing – This expenditure includes Web Site operation and upgrades, advertisements,
4. Fixtures. Fixture costs will total $5,000 based on an estimate from City Manufacturer
Fixtures Supply, Inc. These costs will include purchasing work tables, chairs, and removable
service items.
5. Cost of Goods Sold. Cost of goods sold is based on the sales projection of $372,000 and is
calculated using average sales of 30 units priced at $1,200 each per month (information
6. Telephone and Utilities. Local companies estimate telephone and other utilities at
7. Repair and Maintenance. It will cost an estimated $10,000 to maintain and repair machines
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10. Insurance Premiums. Valley Insurance Agency estimated annual premiums at $2,000.
These premiums will cover business liability, property damage, workman’s compensation,
11. Office Expense. This item includes all office-related expenses including copying, paper
supplies and business cards. The owner and manager will perform office duties. Total is
12. Legal And Accounting. Pandya Kapadia Associates CPA’s firm will provide basic
bookkeeping, accounting services. The firm provides low cost bookkeeping services and will
be providing tax preparation and other professional services. The total estimated annual cost
is $4000.
13. Advertising and Promotion. 2% of total revenue will be allocated to advertising and
promotion.
15. Miscellaneous Expenses. $10,000 is estimated for miscellaneous expenses based on past
experience.
16. Payroll Taxes and Benefits. These are estimated to be $13,800, 20% of wages..
17. Payroll. Wages total $70,000. This total includes three part-time workers, each working 25
hours a week at a rate of $10/hour, for a total of 52 weeks. Payroll includes the manager’s
annual salary, employer taxes such as FICA, unemployment insurance, and worker’s
18. Loan Payments (Principal and Interest). All of the $130,000 loan allocation will be used
during the fifth and sixth year of operations. Assuming this amount was available at the
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In addition, according to the loan agreements, a principal payment of 25,000 is required.
One semi-annual payment $12,500 will be made during the fiscal year while the second
payment will be made at the beginning of the second fiscal year. The total payments for this
19. Owner’s Draw. This information was obtained from Exhibit, Monthly personal Living
SUMMARY
CNaturals, Inc. will be successful. This business plan has documented that the
establishment of CNaturals, Inc. is feasible. All of the critical factors such as industry trends,
marketing analysis, competitive analysis, management expertise, and financial analysis support
this conclusion.
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