Fragrance Store Business Plan

Fragrance Store Business Plan Business Name: FRAGRANCES Company Summary Fragrances is a new natural and herbal cosmetics company proposing to set up a signature herbal cosmetics store in Central London. The store will deal in herbal cosmetics including perfumes. The company has been setup by a team of three members who have years of experience in understanding and managing cosmetics business, channel marketing and high-level sales. The promoters will initially fund the business themselves as they believe strongly in their product idea. Market research among over 1000 women in various age groups shows that there is a demand for such products. Sales projections for Fragrances are estimated be over  £1 million for the first year, with a decent net profit. The promoters feel that, by creating awareness of their products, many women will prefer to purchase their products for their own use, as will friends and family members. Objectives Create a niche market in herbal cosmetics industry Generate retail sales of over  £1,000,000 in year one. Maintain a gross margin of over 65%. Mission To give an unlimited opportunity to women of all ages to become beautiful naturally Keys to Success Fragrances will: Offer a unique line of herbal cosmetics that will take into account the differences in requirements of diverse age groups. Herbal cosmetic products are currently in demand today and are also available but there are no differences in cosmetics available for different age groups. Satisfy the demand of women who do not want to use cosmetics containing harmful chemicals Execute a targeted marketing campaign to generate awareness of the their products Fragrances will be a UK-based herbal cosmetics company offering its customers a series of unique herbal cosmetics including skincare products, hair care products and perfumes. There will a wide variety in these cosmetics and will take the differences in requirements of diverse age groups. The store will have two product experts who will help the customers choose the right products according to their ages and requirements. The company will reach out to customers through their own signature store as well as its website. In the future, the company will also explore the possibility of expanding to the entire UK by setting up a chain of such stores. Company Ownership Cosmetics industry in the UK is a growth industry dominated by a few key players. Fragrances needs to pool funding to be able to make its presence felt in the industry. It will be set up as a private limited company as the three promoters will pool in their funds and will form the core management team. As a private company it will be able to achieve its initial standing which would not have been possible as a sole proprietorship or partnership firm. Start-up Summary Start-up costs for Fragrances include legal costs, computer supplies, new product marketing, website design and regulatory costs for cosmetics[1]. Start-up assets are mostly dedicated to start-up stock. Start-up Expenses  £ Legal 1,000 Computer Supplies 1,250 Marketing 15,000 Web design 2,500 Regulatory 4,000 General Administration (including rent and salaries) 137,000 Total Start-up Expenses  £160,750 Start-up Assets Cash  £10,000 Start-up stock  £60,000 Other current assets 0 Fixed assets (Including fixtures)  £20000 Total assets  £90,000 Total Requirements for Expenses and assets 250,750 To start with, Fragrances will introduce its herbal range in skincare products perfumes. Skincare products These will include day creams, night creams, exfoliating creams, anti-wrinkle or anti-ageing creams. Within these there will be creams for specific age-groups and skin types. Perfumes Fragrances will start-off with a limited range of perfumes for the working women. In stage two, more variety will be introduced. Source: National Statistics, accessed from http://www.statistics.gov.uk/cci/nugget.asp?id=6 Market Segmentation The three main segments of the market who would buy herbal cosmetics are working executives, college and university students and ageing women. There will also be those who would shop for women, perhaps a husband, friend or a family member. Though the store will be in Central London it will cater to the needs of entire UK. Women living outside London will buy the cosmetics online through the company website. The absence of a store in small towns will not impact the sale as the product will be extremely effective and safe. The confidence will be based on additional expenditure on creating awareness about the products. As per the mid census estimates, the total women population in all age groups in UK is 30,730,300 (Source: NSO Statistics). In addition, statistics indicate that on an average 93% of total women in all age groups buy cosmetics. The potential market may be set at 28,579,179 (93% of total women). Based on the primary and secondary segments, the projected sales forecast is conservatively set at less then 1% of the total potential market (285,790), as highlighted in the following table and chart. Potential Customers Growth 2008 2009 2010 CAGR Working women 0% 142,895 142,895 142,895 0% Young girls 0% 107,171 107,171 107,171 0% Ageing women 0% 26,793 26,793 26,793 0% Others 0% 8,931 8,931 8,931 0% Total 0% 285,790 285,790 285,790 0% Product Elasticity: The product is a necessity and is not highly price elastic. Consumers are ready to pay a higher product if they become aware of the unique benefits from the product. Industry Analysis The UK cosmetics industry accounts for  £5 billion sales. (Source: Euromonitor – Consumer Europe 2002/3 – 18th Edition Pub. Euromonitor International Plc)) 93% of British women use cosmetics in some shape or form making us one of the highest users in Europe. (Source: Key Note Report – Cosmetics Fragrances A Market Sector Overview 10th Edition, Ed. By Eleanor Hughes) Convenience and benefits continue to be a key trend for British cosmetics consumers. Easy application and usage, as well as effectiveness, are the main requirements. Some of these products have a higher price positioning, but consumers appear willing to pay higher unit prices if products can offer genuine benefits in terms of saving time. Fragrances will be a small segment of the cosmetics industry. The market is dominated by major players. Significant shifts in overall value share in this sector have primarily been achieved through major mergers and acquisitions such as L’Orà ©al’s purchase of The Body Shop. Competition Analysis Natural and herbal cosmetic products is a growing sector with the presence of a few big players such as L’Orà ©al’, Bodyshop, Boots and Johnson and Johnson. It is becoming stronger in the UK and UK is now competing with other European countries for product launches. There has been a 170 per cent increase on launches from the comparable period in 2006. According to a recent Mintel report, the UK has seen the largest increase in herbal beauty products of any European country even in the first quarter of 2007. The country accounted for a mere five per cent of the 1600 organic cosmetics launched worldwide in 2006, which has now risen to 19 per cent of the 1053 products that have already been launched globally in 2007. In recent years there has been an explosion of activity as consumers have become more aware of the health benefits of using natural ingredients. Supermarkets have now begun to pick up on this trend, with leading chains such as Asda, Tesco and Waitrose all developing own brands to capitalise on the growing consumer demand for organic and ethical products. Our marketing strategy is to create product awareness among women using cosmetics by strategically placing Internet ads, using direct mailers and generating PR. Competitive Edge The present herbal cosmetic retailers carry a mainstream line of cosmetics that are appealing to the masses. Due to their mass distribution model, it would not be prudent for them to carry small amounts of specialty items for specific age groups. By positioning in the market as a specialty store, Fragrances is confident that word of mouth will help to create product awareness across UK. Fragrances unique selling proposition is that its products will be exclusive and customised for women in accordance with their age groups, skin types etc. Currently, no major cosmetic retailer and online stores offer such customised herbal cosmetics. The primary weakness of Fragrance will be to generate awareness about the cosmetics and highlight how these are different from the other products available in the market. To generate sales, there is a need to first create awareness about the existence of the product and make it easy for potential customers to locate the speciality store. However, it will not be difficult to establish its presence in the cosmetics industry. Marketing Strategy Fragrances marketing strategy is crucial to its success. The company will need to create awareness of its products through: Strategically-placed ads in women’s magazines and women related websites Direct mail and e-mail advertising to working women New product PR in publications for women Sales Strategy Sales are dependent upon creating awareness and generating excitement about the herbal cosmetics. The company will strategically place pop-up and banner ads on web-sites relevant to both women, use direct mail and e-mail lists and seek public relations coverage in relevant media sources. Fragrances will fulfil orders through its speciality store. It will also offer returning customers an option to place their orders on the company’s official website, or fax in orders to the company. E-orders: Customer can purchase online 24-hours a day, seven days a week. Fax orders: Customers can fax in an order 24-hours a day, seven days a week. Sales Forecast The sales forecast for First Year 2008 takes into account slower sales at the beginning as the company creates awareness of its product and website. Initially the company will be selling limited range of skincare products and perfumes. As the company grows, it will explore the demand for other types of customised products. The following table illustrates unit sales of 109,500 units for the first year. This would require the company to sell to less than 1% of its target market. FY 2008 FY 2009 FY 2010 Unit Sales Units Sold 109,500 115,000 121,000 Average unit price  £ 10  £10  £10 Sales Revenue  £ 1,095,000  £1,150,000  £1,210,000 Direct Unit Costs  £3  £3  £3 Direct Cost of Sales  £ 328500  £345000 363000 Initially the company will be managed by its promoters. They will oversee product development, the online store, speciality store and marketing efforts. Outsourcing will be used on some initial tasks, specifically the website design and maintenance. Personnel Plan As the company’s launch date approaches, two product experts will be hired to help with the speciality store sales. As the company grows, more personnel will be added as needed. Personnel Plan FY 2008 (in  £) FY 2009 (in  £) FY 2010 (in  £) Management team for 3 Members  £45,000  £45,000  £45,000 2 Employees  £20,000  £21,000  £22,050 Total People 5 5 5 Total Payroll  £65,000  £66,000  £67,050 Fragrances project the gross margin to be healthy percent (70%). Sales projections for 2008 are at over  £1 million. Refer appendix for a projected profit loss account, projected cash-flow statement and projected balance sheet for the period 2008-2010. Start-up Funding The promoters of the company will use personal funds to finance the start of this business. The primary start-up costs are as follows: Start-up Expenses  £ Start up Funding Start up Expenses to fund 160,750 Start up Assets to fund 90,000 Total Funding Required 250,750 Assets Non-cash assets from start-up 80,000 Cash 10,000 Additional cash Raised 0 Cash Balance on Starting Date 10,000 Total Assets 90,000 Liabilities and Capital Liabilities Current Borrowing 0 Fixed liabilities 0 Accounts payable 0 Other current liabilities 0 Total Liabilities 0 Capital Planned Investment Shareholders equity 250,750 Investor 0 Additional Investment Requirement 0 Total Planned Investment 250,750 Loss at Start-up (160,750) Total Capital 90,000 Total Liabilities and Capital 90,000 Break-even Analysis The following Break-even Analysis shows what is needed in monthly sales to break even. Break-even Analysis (Year 2008) Monthly units break-even 1,914 Monthly Revenue Break-even  £19,140 Assumptions: Average per-unit revenue  £10 Average per-unit variable cost  £3 Estimated monthly fixed cost  £13396 This Confidentiality Agreement (the â€Å"Agreement†) is by and between (hereinafter â€Å"Disclosing Party†) and the undersigned recipient of information. (hereinafter â€Å"Recipient†) Recipient and its Representatives shall not disclose any of the Confidential information in any manner whatsoever, except as provided under Permitted Disclosures. Recipient hereby agrees to indemnify Disclosing Party against any and all losses, damages, claims, expenses and legal fees incurred or suffered by Disclosing Party as a result of breach of this Agreement by Recipient or its Representatives Appendix A Projected Profit Loss 2008 ( £) 2009 ( £) 2010 ( £) Sales 1,095,000 1,150,000 1,210,000 Direct cost of goods 328,500 345,000 363,000 Other costs Cost of goods sold 328,500 345,000 363,000 Gross Margin 766,500 805,000 847,000 Gross Margin % 70% 70% 70% Total Operating Expenses 396,025 375,667 352,917 Profit Before Interest and Taxes 370,475 429,333 494,083 EBITDA 370,475 429,333 494,083 Interest Expense Taxes 148,190 171,733 197,633 Net Profit 222,285 257,600 296,450 Projected Cash Flow 2008 ( £) 2009 ( £) 2010 ( £) Cash Received Cash from Operations Cash sales 1,095,000 1,150,000 1,210,000 Subtotal cash from operations 1,095,000 1,150,000 1,210,000 Additional cash received VAT received 0 0 0 New current borrowing 0 0 0 New other liabilities 0 0 0 Sale of other current assets 0 0 0 Sale of fixed assets 0 0 0 New Investment received 0 0 0 Subtotal cash received 1,095,000 1,150,000 1,210,000 Expenditure Cash spending 58,000 86,000 95,000 Bills payment 652,232 691,342 727,276 Total spent on operations 710,232 777,342 822,276 VAT paid 0 0 0 Repayment of current borrowing 0 0 0 Purchase of other current assets 0 0 0 Purchase of fixed assets 0 0 0 Dividends 0 0 0 Subtotal Cash Spent 710,232 777,342 822,276 Net Cash Flow 384,768 372,658 387,724 Cash Balance 394,768 767,426 1,155,150 Projected Balance Sheet 2008 2009 2010 Assets Current assets Cash 394,768 767,426 1,155,150 Stock 60,000 60,000 60,000 Other Current Assets 0 0 0 Total Current Assets 454,768 827,426 1,215,150 Fixed Assets Fixed assets Accumulated 20,000 20,000 20,000 Depreciation 0 0 0 Total Assets 474,768 847,426 1,235,150 2008 2009 2010 Liabilities and Capital Current Liabilities Accounts payable 53,900 57,085 60,020 Current borrowing 0 0 0 Other current liabilities 108,583 220,456 308,795 Long term liabilities 0 Total liabilities 162,483 277,541 368,815 Capital including profits 312,285 569,885 866,335 Total liabilities and Capital 474,768 847,426 1,235,150 Bibliography Barrow Colin, Barrow Paul, Brown Robert, The Business Plan Workbook, (2001) Kogan Page Ltd Blackwell Edward, How to Prepare a Business Plan, (2004) Kogan Page Ltd Branson, Richard, The Best-Laid Business Plans: How to Write Them, How to Pitch Them (Virgin Business Guides), (2005) Virgin Books; New Ed edition Covello Joseph, Hazelgren Brian, The Complete Book of Business Plans (Jan 1993), Sourcebooks Eleanor Hughes, Key Note Report – Cosmetics Fragrances A Market Sector Overview 10th Edition Euromonitor – Consumer Europe 2002/3 – 18th Edition Pub. Euromonitor International Plc Finch Brian, How to Write a Business Plan, (2006), Kogan Page Ltd McKeever Mike P., How to Write a Business Plan,(1992) Nolo Press UK Population data accessed from http://www.statistics.gov.uk/glance/#population Footnotes [1] The UK cosmetics industry is regulated under the the Department of Trade and Industrys 1996 Cosmetic Products (Safety) Regulations.

“Birthday Party” by Katherine Brush Essay

In the â€Å"Birthday Party,† Katherine Brush portrays what at first glance seems to be an innocent dinner between a happily married couple; however, when viewed closer is obviously a dinner gone wrong. Her use of metaphor, along with other literary devices, help show how things aren’t always as they seem. The story starts off in a happy, light-hearted manner, describing a charming married couple. The detail of the â€Å"round, self-satisfied face† of the man and the â€Å"fadingly pretty† woman help describe their attitudes and mannerisms. The â€Å"self-satisfied face† of the man gives off an impression of arrogance, which makes the reader dislike him. The woman on the other hand, pulls the reader in. Her â€Å"big hat† a metaphor for her big heart. The first paragraph is also where Brush introduces the growing contrast between big and little, which is carried on throughout the story. The â€Å"little narrow restaurant† in which the â€Å"unmistakably married† couple dined at conveys just how simple the date was suppose to be by emphasizing how little it was. Brush refers to the intimate atmosphere when she describes that the couple sat â€Å"opposite [of] us,† which makes the reader feel as if he/she were also in the narrow restaurant about to watch the scene unfold. The word â€Å"little† is repeated again when Brush depicts the â€Å"little surprise† the wife had set up for her husband to again touch upon how small the gesture was. The cake is portrayed to be â€Å"small but glossy,† which adds to the littleness of the surprise and how low key is was meant to be. Just a little reminder of her feelings towards her husband. When the orchestra played â€Å"happy birthday to you,† â€Å"the wife beamed with shy pride over her little surprise.† The wife beaming over her â€Å"little† surprise is paralleled with the â€Å"one pink candle burning† on the cake, representing the wife’s loneliness even though she is in a relationship. It is obvious that the wife’s â€Å"little surprise† was taken out of hand when the author explains that â€Å"help was needed† in order to calm the husband down. This conveys how mad he was, and how he didn’t appreciate his wife’s kind, little gesture for him. The author brings the intimate elements back around when she adds that â€Å"you looked at him, and you saw this and you thought.† The repetition of â€Å"you† emphasizes the intimate atmosphere, making the reader feel as if she/he were experiencing this with the onlooker. Everyone around them sensed the tension and the anger felt by the husband towards his wife. Brush uses cacophony when describing the  Ã¢â‚¬Å"quick and kurt and unkind† comment the husband made to his wife in order to show how bitter and angry the husband was. We see just how upset the wife is because, even after the bystander â€Å"waited for quite a long time† before looking, she was still crying. She cries â€Å"all to herself,† showing the loneliness â€Å"under the gay big brim of her best hat,† which is happily hiding her from the terrible remarks of her selfish, rude husband. The intimate mood of the restaurant is cut through with the harsh diction of Brush’s word choice and the nasty remarks made by the husband. The couple that seemed so perfect in the beginning is now torn apart and weeping. The simple surprise that the wife made is ruined leaving her feel lonely even though she is in a relationship.

Parents and their Children’s Educational Attainment

Never before in the United States have parents been so disgruntled about their children†s education. The main reason behind this massive disruption is that public schools are not living up to parent†s standards. Therefore, parents are taking their children†s educations and futures into their own hands, and doing so quite efficiently. Many parents are turning to [â€Å"an alternative†] means of educating known as home schooling. Home schooling is simply [â€Å"education of school- aged children at home rather than at school. ] Parents are choosing home schooling over public because public schools are not meeting their children†s academic, individual, and handicap needs. First, parents are choosing home schooling over public schooling because public schools are not meeting student†s academic needs. [Parents expect their children will learn to read, write, and acquire basic math skills by the time they graduate. ] However, public schools throughout the United States are failing to teach these basic achedemic skills. Recent studies show that [† Of the 2. million who graduate, as many as 25% cannot read or write at the eighth grade level or â€Å"functionally literate,† level, according to some estimates. â€Å"] This is a tragic statistic for a nation claiming to be so developed. There are more opportunities to education in the United States than any other country in the world, yet evidence shows that the United States ranks [† at the bottom of 19 industrial nations in reading, writing, and arithmetic. â€Å"] In addition, students are ranking lower than ever on Academic Achievement Tests (ACT). Children who attend public schools rank in the [† 50th percentile. ] whereas, home schooled children [† typically score at the 65th to 80th percentile†¦. â€Å"] To add to these statistics, [† in December 1989, the education press reported the amazing news that children schooled at home seemed to be five or even ten years ahead of their formally trained peers in their ability to think. â€Å"] These statistics prove that home schooled children are doing better in math, science, reading and writing, compared to children attending public schools. Secondly, parents are choosing home schooling over public schooling because public schools ar e no longer taking student†s individual needs into consideration. Since students are taught lessons based on an academic calendar year, they are expected to be able to complete specific tasks by the end of that year. When students fail to meet these expectations they are required to repeat the same grade the following school year. For example, at the end of a school year if a student is having difficulties reading but doing well in other subjects he or she will be required to repeat the same grade. If students were properly tutored in the areas they are having difficulties in they would not have to repeat the same grades. Unfortunately public schools do not give special tutoring to students like they once did. Teachers in the public school systems are teaching students as though they are on an assembly line. They no longer work [â€Å"one-to-one†¦. â€Å"] with them. Unlike public schooling, home schooling allows parents to teach in a style that best fits their children†s needs. For example if a child is not prepared to move on to a higher level, the parent can continue with similar lessons until the child understands. Also, children are not held back in the same grade if they are lagging behind in particular subjects. Their parents can move them to the next grade and tutor them in the subjects they are having trouble in. Children who are home schooled also get individual attention from their parents. They do not have to worry about waiting for their teacher to find time to help them. In sum, parents are finding that home schooling meets the individual needs of their children better than public schooling. Finally, parents of children with physical and mental disabilities are finding that home schooling meets their children†s handicap needs better than public schooling. A major downfall of public schooling is that handicapped students are graded in the same style as the rest of the students. In public schools, children with handicaps are still expected to complete all of their assignments in the same given time as other students. Teachers are not taking these children†s handicaps into consideration. For example, children with ADD (Attention Deficit Disorder) have trouble staying focused and are easily distracted. As a result of constantly being distracted, they are not able to complete their assignments. This type of grading style has become a great concern for parents of handicapped children. Because of situations like this one, parents are making decisions to teach their handicapped children at home. By teaching their children at home they are in an environment that is equipped to aid in their development. For instance, children with ADD [â€Å"are in an environment where they cannot be influenced by the action of other children†¦. â€Å"] and cannot be easily distracted. In addition, they have special time to complete their assignments. They can also have all of [† their assignments tailored to fit their abilities and needs. â€Å"] By home schooling children with learning disabilities are given equal chances of succeeding in their education which they otherwise would not get in public schooling. Public schools may have been the center for learning years ago. However, today they are not meeting children†s academic, individual, and handicapped needs. As a result, parents are choosing to educate their children through home schooling. Statistics show that home schooled children are ahead of children who attend public schools by a noticable degree. In addition, Handicapped children are having their needs met better at home more so than in public schools. They are being given an equal chance at succeeding in their education that they otherwise would not have when attending public schools. In summary, parents are choosing home schooling because it currently offers the best solution to their problems facing the public school systems.

I Am A White, Heterosexual, Christian Female - 1661 Words

I am a white, heterosexual, Christian female. In today’s society, there can be three issues with my cultural identity. As a white person today, there are many stigmas that are faced, along with many cultural biases. As a Christian, there are also major social biases that are brought forth regularly. In today’s world, many people choose to talk about white privilege; however, there are also many other forms of privilege that are considered too taboo to speak about in public. While I will not deny that there are â€Å"white privileges†, there is a legitimate case that there is also â€Å"black privilege†, â€Å"non-Christian privilege†, and even â€Å"Asian privilege†. With each of these cases, I have my own personal experience. Asian Privilege Of the forms†¦show more content†¦I spoke to my teacher about it and an investigation was started. Not long after, my leaf pages were discovered in the booklet of a student in the class that was of Asian descent. This student proceeded to protest the findings because he was â€Å"an Asian.She is white...Asians are too smart to steal things from regular, white students just to get a good grade.† These were his exact words. My teacher then decided that he must be right and continued her search for my papers. After her search turned up nothing, I returned to the Asian student and asked to borrow the papers in question. When I matched them up with the papers in my booklet, they were an exact match. Had my teacher not listened to the student and his â€Å"I am an Asian and too smart for that† speech, the hunt would have been over many days earlier that it was. While this is in no way the only form of â€Å"Asian privilege†, it is my personal experience with t he subject. I strongly feel that this is a subject that needs to be discussed along with the â€Å"black/white privilege† issues. 2. Non-Christian Privilege Another issue facing today’s Americans is the idea of â€Å"Christian privilege†. I do not deny that there are some privileges to being a Christian, but I also feel strongly about showing both sides of the proverbial coin. There are also notable â€Å"non-Christian privileges†. By non-Christian, I am encompassing Muslim, atheist, and most other religions, as this is my