College of Science, Technology & Applied Arts of Trinidad and Tobago

SCHOOL OF BUSINESS AND INFORMATION TECHNOLOGY

Assignment : Business Plan

Course Code: ENTP 215

CRN: 21560 Semester: 2 - 2021/2022

Course Title: Business Modelling

Lecturer’s Name: Mr. Sajjad Hamid

GROUP MEMBERS STUDENT ID

Asiyah Ali 00072937

Rebecca Hypolite 00072304

Aliyah Ali 00073060

Date of Submission: 9th June 2022

SUMMARY

For entrepreneurs, a business plan is a very critical and strategically important tool. A solid

business plan not only assists entrepreneurs in focusing on the exact procedures required to make

their business idea successful, but it also assists them in achieving their short-and long-term

goals. As part of the requirement of this course, our group was assigned to create a business plan

for our Entrepreneurial Business, BareBeauty Skin Care Cosmetics. The Cosmetic company

provides organic skin care products for all skin types, in which it greatly takes the environment

into great consideration. The team has decided to launch a new, innovative product, a skincare

day cream with an organic concealer. Thus, the team formulated a business plan for the

Company.

This Business Plan provides a brief overview of the company, that includes the overall financial

and non-financial goals that the company hopes to achieve. A team profile was also included in

this business plan, which clearly outlines all of the persons involved in the creation of

BareBeauty Skin Care Cosmetics Products. A SWOT analysis was also conducted to assess the

overall shape of the business, taking into account the launch of this new product. Furthermore, a

clear and thorough Business model was outlined in this business plan, that highlights the

customer segmentation, value proposition, channels of distribution, customer relationship

management, key partnerships, revenue streams, key resources, key activities, and cost structure.

Lastly, an in-depth financial analysis was conducted for BareBeauty Skin Care Cosmetics, in

which it displays various financial statements for the business’ start-up costs, income and

expenditure, and a summary of the company’s profit/loss.

INTRODUCTION

BareBeauty Skin Care Cosmetics has created this business plan to attain a $50,000 loan from the

National Entrepreneurship Development Company Ltd (NEDCO). BareBeauty Skin Care

Cosmetics is a partnership company in the cosmetic industry, operating under a group of

entrepreneurs. BareBeauty company was founded/started based on creating a positive change

through making a very beneficial contribution to society, by offering products that are of rich

quality, cruelty-free, organic, and effective. BareBeauty Skin Care Cosmetics is a natural,

organic, and herbal skincare brand that aims to increase value for its target customers (young

adults of both genders), by creating products with quality ingredients that will result in healthier,

acne and age spot-free skin. BareBeauty offers an innovative product, a skincare day cream with

an organic concealer. This affordable product is made with organic ingredients such as aloes, and

sea salt, and these ingredients will help tone any skin type, eliminate impurities and rebalance the

skin to perfection; in addition to being packaged in recyclable and biodegradable materials

(giving a competitive edge). Customers will find interest in purchasing our brand because it will

help combat their acne and aging spots, sunspots, etc as well as concealing these spots until they

are gone. BareBeauty’s mission is as follows:

“We are committed to making a positive difference for all ethnic groups and
gender by providing top quality, herbal and organic skin care products that
are made with Nature’s best ingredients.”

BareBeauty aims at achieving the following objectives:

● To attain a sales target of $120,000 by 2023

● To accomplish a net profit of $ 10,000 one year after the beginning of operation

● To increase the level of brand awareness by 2024

TEAM PROFILE

Bare Beauty Skin Care Cosmetics offers a top-quality, luxurious product with local blends of

herbal and organic ingredients. To make Bare Beauty a successful company, through the

production and sale of our unique product, we have established a team that will be able to

execute our mission. The people involved in our team are:

● Frank (owner) - General manager - He has excellent knowledge of management and

key managerial skills. His responsibility is to oversee daily business operations and

control the team to ensure maximum performance and productivity. Frank will contribute

to this venture’s success as he will ensure that the team is efficient and effective so that

BareBeauty can achieve its objectives.

● Aliyah (owner) - Cosmetic chemist - She has excellent knowledge of organic and

inorganic chemistry and skills in formula development, formation, and testing. Her

responsibility is to develop and formulate skin care cosmetics for Bare Beauty. She will

contribute to this venture’s success as she will develop, formulate and test the skincare

product of Bare Beauty ensuring that the products are safe for humans and

environmentally sustainable; which will result in high quality and effective products. She

will also provide useful insights into what substances can be mixed or not; conveying if a

new product idea/innovation is worth making.

● Asiyah (owner) - Brand specialist - She has developed excellent knowledge in

marketing, cosmetic packaging design, developing effective brand strategies as well as

organizational promotion. She has a problem–solving and creativity skills. Her

responsibility is to bring Bare Beauty’s products to the market. She will contribute to this
 venture’s success as she will be able to help Bare beauty to bring its product to the

market in an effective way and gain sales.

● Rebecca (owner) – Herbalist - She has detailed knowledge of herbs and skills for herb

preparation. Her responsibility is to prepare plant-based remedies for Bare Beauty’s

product formulation. She will contribute to the venture’s success as she will work

alongside the organic chemist in product formulation, ensuring the right herbal

ingredients for each particular product are used so that the claimed benefits of the product

can be achieved.

● Noel (owner) – Dermatologist – He has excellent knowledge of diseases of the skin and

how to treat such; in addition to having expertise in cosmetic dermatology and esthetics.

Noel has skills in the diagnosis and treatment of various skin diseases. His responsibility

is to provide consultative information about skin diseases and conditions. He will

contribute to the venture’s success as he will be able to give insights into what are the

main causes of acne and age spots, therefore, the cosmetic chemist will have a better

understanding of what ingredients to mix, which will aid in the formulation of our

products, resulting in effective products.

● Carol (owner) – Cosmetic Industry veteran/mentor - He has 25+ years' experience,

working in the cosmetic industry in various careers such as product creation, etc. His

responsibility is to advise on Bare Beauty’s major decisions. He will contribute to the

venture’s success as he will know how the industry operates and the customers within the

industry as well, therefore, advised to know what is the best decision to make concerning,

new product innovation, marketing, etc.

● Blair (owner) – Financial analysts – She has excellent knowledge and skills in

accountancy and financial management. Her responsibility is to track Bare Beauty’s

financial performance against the plan. She will contribute to the venture’s success as she

will be able to give financial advice as well as prepare and maintain financial reports for

Bare beauty to make proper decisions and use resources efficiently.

● Andy (employee) - Salesperson – Andy specializes in cosmetic sales and has skills in

negotiation. He is responsible for selling Bare Beauty’s products. He will contribute to

the venture's success as he will be able to get customers to buy our products while

meeting/exceeding sales goals. He will aid in revenue generation for Bare Beauty.
SWOT ANALYSIS

❖ Strengths

Pricing- As stated multiple times, Bare Beauty Skin Care Cosmetics products are all at

an affordable price range to cater to as many customers as possible. Our price range is

all within less than $130 at most. Our affordable products are one of the main reasons

why we attract many customers. For a brand that provides eco-friendly products, our

prices are very affordable compared to others on the market.

Innovative Products- We have created a wide range of products, again ranging from

makeup to skincare. But, included in our product range there is a certain product

which is a skincare day cream with an organic concealer that also contains SPF to help

UV protection that our team has come up with to be able to provide different products

but also something that the public and target market will be interested in. This is one

of our best selling products and also makes customers feel more attracted to

purchasing our products.

Packaging- In our ever-growing world, where climate change has become one of the

most important and talked about topics in society. We have decided to help the

environment, save the earth and do our part to provide all eco-friendly packing. They

are all biodegradable and also recyclable. By doing this we hope to make a change and

encourage customers and other brands to also play their part.

Research- One of the main things Bare Beauty ensured in the production of our

products, was to ensure enough research was done, to release working products that

make a difference for our customers. We have also worked with professional and

trained dermatologists when creating our products.

❖ Weaknesses
 Accessibility- Bare Beauty is based in Trinidad and Tobago, while we provide our

products in a variety of physical locations such as Pennywise, SuperPharm, and

various pharmacies. We have also established a website wherein customers can go and

purchase research products, or even get information on different things. There are as

many purchases through the website as there are through physical stores. The

downside of this is that there are times when there is some sort of delay and products

are not delivered as quickly as the customers would have wanted.

High Cost- Because all our products are organically made and all our packing is eco-

friendly, recyclable, and biodegradable. Bare Beauty usually has to put out extra

money on such issues. These ingredients and materials are usually more expensive

compared to normal ones. Hence we have to put out more money to attain these

materials and ingredients.

Capital: Most start-up companies don't usually have enough capital that is needed to

properly start their business and get it running smoothly. Hence, if the company

doesn't have enough capital, the business wouldn't have an easy start and will

eventually have to put in more capital as they generate profits.

❖ Opportunities

Expansion- Just as stated before the cosmetic industry is a fast-growing industry.

Hence in the future, Bare Beauty might have to be able to expand our locations,

products, etc. to keep up with the industry and customers' needs and wants. This will

be a benefit for the company as it will also allow us to be able to even reach and target

a wider audience.

Trends- In an economy where social media is the main platform for communication

and staying in the know. There are times when trends occur, this can be a certain brand
 that is trending or a certain product, such as rare beauty, Fenty skin, the ordinary,

Paula's choice, hyaluronic acid, niacinamide serum, etc. In a situation like this, it will

allow companies at that time to release products that are similar to the one ‘trending’

to attain new customers or as a marketing strategy. In instances like this Bare Beauty

can be able to grow our brand and create new customers.

❖ Threats

Changes- In a fast-changing beauty industry where products trends, brands trends, or

even customer preferences. Cosmetic brands have to be able to keep up with the ever-

growing market and provide what the customers are looking for and when they are

interested in such products.

Competitors- In an ever-growing and changing market such as cosmetics. It is known

that there will always be competition. There are many skincare and cosmetics

companies such as Cera Ve, Cetaphil, Neutrogena, simple, The Ordinary, and the

Inkey list to name a few in the industry, all creating similar products. Hence, Bare

Beauty will always be faced with some sort of competition which is why we need to

be innovative and create something different from these companies to make sure that

we attract customers.

We here at Bare Beauty have created such a S.W.O.T Analysis to help with our strategy

development. These analyses mentioned above will help us when making decisions to know

whether they will positively or negatively impact us. We will use it to foresee directions Bare

Beauty can go in and be able to keep track of goals or any possible problems we will have as

a brand.

BUSINESS MODEL
This section of the Business Plan focuses on the Business Model Canvas of BareBeauty Skin

Care Products. The business model canvas enables a business/organization in establishing a

precise assessment of their business concepts. An acceptable business model canvas for

BareBeauty Skin Care Products will identify elements such as the business idea, the problems

the business is solving for whom, how the business will yield customer value, how products will

reach customers, how the business will stay competitive and all costs and revenue the business

can presume. BareBeauty Skin Care Cosmetics has developed a new herbal and cruelty-free

natural skin care day cream that includes a skin-finished concealer.

Customer Segments

BareBeauty Skin Care Cosmetics created this product that is suitable for a diverse range of

consumers. The company will occupy a unique market position and target customers who

struggle with severe acne. Concerning the demographics, BareBeauty Skin Care Cosmetics will

focus on the age groups, gender, and income. This product will aim for both males and females

between the ages of 18-30 since acne scars seem to be more prominent throughout this age

period. The product will also be a budget-friendly product, as most consumers who are looking

for cheap and affordable products will be encouraged in purchasing. BareBeauty Skin Care

Cosmetics will create value for customers that have disposable income to pay extra for the skin

care products. This product will also be suitable for persons who demand an effective product

that rapidly eradicates acne scars.

Value Proposition

The use of this product is to give customers satisfaction and the intention of solving acne-related

skin conditions whilst giving the skin a flawless finish. Our product gives customers the

security, comfort, and confidence needed to face life challenges as there are over 10 different

shades to choose from suiting light, medium and dark complexions. The formula of this product
is ideal for customers who are interested in organic ingredients that are suitable for dry, oily,

combination, and sensitive skin. BareBeauty aims to create a luxurious product that will hold a

unique position in the marketplace. Additionally, the product’s packaging material contains

Polypropylene Plastic which is an eco-friendly and BPA-free material, that will generally create

an environmentally friendly perspective of the product. The contents of the product are 100%

herbal and organic ingredients and are firmly against animal testing.

Channels

BareBeauty Skin Care Cosmetics will directly merchandise their products through their retail

stores, and also distribute them to local pharmacies, and cosmetics stores across the country, in

such a way that customers from various locations can access the product. Having these indirect

channels will benefit the company to sell larger volumes of the product and to a wider range of

customers. The company will promote its products on online Social Media Platforms such as

FaceBook, Instagram, and Twitter. Another innovative way of reaching our customers is through

trade fairs, where customers can sample the company’s products, and directly speak to brand

marketers. Additionally, the company will provide consultancy service to its customers, so that

customers can directly speak to our specialized team to seek additional information.

Customer relationships

BareBeauty Skin Care Cosmetics will establish a clientele that highly promotes the welfare of

the environment, and with the use of natural and organic products. BareBeauty Skin Care

Cosmetics will encourage men and women to boost their self-esteem with the use of this product.

We will also engage our customers in customer feedback surveys to obtain their honest opinions

about the use of our products, and ways we can improve the quality of service and production.

BareBeauty will also provide a customer loyal reward card program to all of its customers, which

can be used in further purchases with the company. BareBeauty Skin Care Cosmetics will also
utilize technology efficiently to contact customers via emails to inform them of promotional

giveaways, other newsletters, and discounts on BareBeauty products which will enhance

customer engagement.

Key partners

BareBeauty Skin Care Cosmetics will require key partners to ensure that there is a smooth

production of its products. These will include graphic designers, real estate agents for warehouse

space for storage, cosmetic chemist, and beauty consultants and suppliers for packaging and

labelling.

Revenue streams

The company will gain revenue streams through the sales of the product, advertising of the

product through social media platforms, and consultancy fees from customers. And delivery fees

to indirect retailers.

Key resources

BareBeauty Skin Care Cosmetics will require four types of resources which include physical,

human, financial, and emotional resources. The physical resources that BareBeauty Skin Care

Cosmetics would entail an environmentally and socially working environment for both

employees and employers. The creation of the product will also require certain natural raw

materials such as avocado, grape seeds, coconut, aloes, etc, packaging materials, and warehouse

space. The company will also require financial resources such as branding and marketing,

employee salary, and other essential equipment for the production of the product. BareBeauty

Skin Care Cosmetics will need a highly-skilled workforce that is knowledgeable about the

cosmetic industry, as well as marketing, distribution, and customer service. Lastly, emotional

resources are a minor but key element to the business, as this can come from both internal and

external people of the company. This is to ensure the sanity of owners, employees, and
employers, and to guarantee maximum productivity within the production and marketing of

BareBeauty Skin Care Cosmetics.

Key activities

This section of the business model canvas will outline the key activities involved in BareBeauty

Skin Care Cosmetics. Some of these activities include marketing, customer services, franchising,

and distribution to other cosmetics stores and pharmacies. Additionally, our company will

conduct consultations with clients who have special needs about the products and communicate

with customers, listening to any desires and concerns. Another key activity for the company is

inventory tracking. Inventory management is an important part of the company to ensure that

there is a sufficient supply of the product that will satisfy the demand in the marketplace.

Cost structure

BareBeauty Skin Care Cosmetics' cost structure will include rental of special equipment,

employee salary, the printing of labels, purchasing raw materials for the product, rental of office

space and furniture, maintenance of production equipment, and marketing expenses, and

distribution costs.

FINANCIAL PLAN
BareBeauty is expecting to incur income as well as expenses (working and fixed) upon the

launch of the business. For the first year of operation, Bare Beauty will be solely online,

therefore all our sales will happen through e-commerce. Bare beauty has created a financial plan

that describes Bare Beauty’s near future financial status using a start-up cost financial statement

and an income and expenditure financial statement.

Note the following for the financial statements:

1. No rent will be incurred for the first year of operation as BareBeauty will be using an old

building owned by Noel, one of the owners. However, a few interior replenishing will

have to be done for operation. This building will be used for manufacturing our product,

including storage as well as office operations.

2. All owners of BareBeauty have decided to not demand payment or any monetary

benefits for the first year of operation. Therefore, only BareBeauty’s employee has to

receive a wage.

Bare Beauty’s Start-up Cost Financial Statement

Bare Beauty’s start-up costs are as follows:

Item - “W” for working capital Cost ($TTD) Comments

and “F” for fixed capital.

Utilities (W) $2,000 First-month payment of electricity

(T&Tec), water (WASA), and

internet (FLOW package).

Old building $5,000 Paint for interior walls and doors

replenishment (interior)

(F)

Office Equipment and $9,000 Desk, chair, computer, printer

tools (F) Microsoft office one-time purchase

license

Raw Materials (W) $3,000 Ingredients – herbal and organic

(aloe vera, shea butter, sea salt,

argan oil, grape seed oil, rose water,

sandalwood).

Skin care production $ 5,000 Thermometer, digital scale, electric

equipment (F) stick, electric hand whisk, mixing

table

Advertising (F) $1000 Social media ads fees

Website (F) $2,500 Website creation and domain name

Wages (W) $4,200 Sales person

Labels and package (W) - $ 1,500 Bottles, print labels (self-adhesive)

$15 x 100

Office and production $2,000 Stationary, measuring beakers/jugs,

supplies (W) PH strips, spatulas, gloves, and test

tube.

Total $35,200
Bare Beauty’s Income and Expenditure Financial Statement

Bare beauty’s expected income, expenditure and net profit in $TTD, for one (1) year is as follows:

Months 1 2 3 4 5 6

Sales – (selling price x $126x100= $126x110= $126x120= $126x130= $126x140= $126x150= $18,900

units) $12,600 $13,860 $15,120 $16,380 $17,640

Less Expenses:

Utilities(electricity, water and $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

internet)

Raw materials $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

Label and packages $1,500 $1,650 $1,800 $1,950 $2,100 $2,250

Wages $4,200 $4,200 $4,200 $4,200 $4,200 $4,200

Office and production $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

supplies

Net Profit/loss $ -100 $10 $120 $230 $340 $450

 Months 7 8 9 10 11 12

Sales – (selling price x unit) $126x160= $126x170= $126x180= $126x190= $126x200= $25,200 $126x210= $26,460

$20,160 $21,420 $22,680 $23,940

Less Expenses:

Utilities (electricity, water and $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

internet)

Raw materials $9,000 $10,000 $11,000 $12,000 $13,000 $14,000

Label and packages $2,400 $2,550 $2,700 $2,850 $3,000 $3,150

Wages $4,200 $4,200 $4,200 $4,200 $4,200 $4,200

Office and production $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

supplies

Net Profit/loss $560 $670 $780 $890 $1,000 $1,110

 (1Year) Total $TTD (1 year)

Sales $234,360

Less Expenses $228,200

Net profit/loss $6,160

This shows that Bare Beauty, in one (1) year of operation, will expect a net profit position of

TTD 6,160.

CONCLUSION
In conclusion, this business plan was created for the launch of Bare Beauty Skin Care

Cosmetics' new product, a skincare day cream with organic concealer. Catering for all skin

types at an affordable price. This business plan outlines the detailed process in Bare Beauty

underwent for the making of this product. Including decisions, SWOT analysis, and financial

plans.