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Cosmetics Business Plan in Nigeria 2024 Feasibility

Cosmetics Business Plan in Nigeria

Cosmetics Business Plan in Nigeria 2024 PDF Feasibility Studies

Cosmetic business is one business that has interestingly grown in Nigeria. Given that almost every Nigerian woman wants to look good.

This gives room for cosmetic ventures to thrive and also become profitable. Here is a well written cosmetics shop Business Plan and Feasibility study for you to successfully run a business in the cosmetic industry. Be rest assured that this feasibility study undergoes regular updates in respect to current economic condition of the country. For starters without start up fund, you can use the cosmetic business plan in Nigeria PDF file to seek for bank loans, enter into different competition as well as apply for grants at any issuing agency.

When people hear cosmetics, what comes to mind is female interest… NO! Cosmetics talks about cream applied on our body, deodorants, bathing soaps, tooth pest, perfume etc. The thing is we all need cosmetics in our daily, in fact there is one of these item that you must use on the daily basis, this means the chances of getting customers to your cosmetic shop is there.

Hurry NOW and BUY The Cosmetics Business Plan in Nigeria PDF Feasibility Studies. Simply order yours by paying N10,000 to

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Account Name – Okite Joseph ikenna

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Once payment is made for the Cosmetics Business Plan in Nigeria PDF Feasibility Studies, send the following (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.

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With the cosmetic retail business plan pdf file, you will be getting into a business with loads of opportunities. The business is a lucrative one, because you will always have someone that will need even if it is bathing soap and given that there are numerous cosmetic products available for both men and women, there will be constant patronage.

Irrespective of how competitive the environment is and has been, a lot of people will always demand for cosmetic products. Now, in a country of over 180 million people, a handle of cosmetic store will not be able to serve the high demands of these cosmetic products, in essence, the market for cosmetic products can never be over saturated.

One of the advantages of starting a cosmetic shop or business is that you can actually start small and then watch your business grow into a mega cosmetic outfit. I remember One Mallam Sule who was into the sale of deodorant, he used to sell from the very small kiosk in front of my compound in WUSE Zone 6, within the space of 7 months, the business expanded and then he started selling bathing soap, makeup as well as other cosmetic products, so many factors worked for him, these factors I’ll be discussing on this post

Factors To Consider In Cosmetics Business Plan in Nigeria Start Up

There are various factors that helped Mallam Sule to grow his business, below are the factors that helped him excelled;

  • Location of the business – Location of a business is one factor that has been underrated by many entrepreneurs when setting up their business, this is because they do not see it as important, now every business has a particular location that best fits it. And for Mallam Sule, Locating his small cosmetic shop at end of Sudan street at the beginning of his business wasn’t the ideal thing to do, but as time went on, almost everyone at the end of Sudan street patronized him, most didn’t see any need for walking down the street to get deodorant, in fact people from the other side of the street started coming to his own end to buy from him because he seemed to have every cosmetic product you needed. The only reason why he moved was because his business grew and then he had to move to a bigger space. In relation to Mallam Sule, you can start up from your street, with much dedication; your Cosmetics Business Plan in Nigeria will be a success.
  • Dedication – As a small business, you need to dedicate you all your time in making the business to grow, by dedication this implies paying attention to information in your sales, profits, expenditure etc. Having a full account of the business finance will inform you ho how far the business has grown. At that early stage, do not hand over the business to a sales personnel, except if you started in a very big way, safe for that, there is no reason whatsoever why you should hand your small business to someone else, reports has shown that nobody will take care of your business better than you will do.
  • Write A Business Plan – Every business requires a plan to execute it, and Cosmetics Business is one of such business that requires you get a professional writer to write a business plan for you (which in most cases is very costly) or you can choose the easy way out of buying a Cosmetics Business Plan in Nigeria PDF Feasibility Studies as advertised above, these business plans where written by professionals and every economic indices where put into consideration.
  • Market Research – It is true that the market for cosmetic products is large, however, there are products people do not buy anymore, there are bathing soap that some customers won’t even take if you give it to them for dash (for free). These types of cosmetic products are no longer being sold by many cosmetic shops in the market, a little market research will inform you of the trending deodorant, bathing soap, make up kits that people request for regularly. Market research tell you of what the customers will want from your business.
  • Competition – Competition is one market factor that keeps the market lively and interactive, however, as a new business entrepreneur in that section of business, you need to know the market forces in terms of competition that you are dealing with, know what your competitors are doing and seek for a way to improve on those things while adding your own service delivery spices.

Reasons Why You Should Consider Cosmetics Business

It is no secret that this business is a lucrative one, however, I know a lot of people will need a little bit of convincing before they can device if they should go into the Cosmetics Business Plan in Nigeria venture, here are a few reason that may change your mind about this business;

  • Customer Base – Without a doubt the capital base for cosmetic business is very big and it accommodates both men and women as there are products that specifically apply to men and women respectively, also there are products that applies for people of different skin texture and complexion. All that is requires is to always have what the customer needs.
  • Start Fund – Unlike many other type of business where you are expected to have large sum to start up your business, with cosmetic retail business plan pdf you can set up and begin with fund as low as N50,000. This simply implies that you can start with such an amount and still make profit, and that is starting in a small scale, imagine investing up to N1,000,000 or more, there are chances you can get an estimated returns of up to 70%. With a little more of that fund, you can start up as a wholesaler deal and the return on investment can be as high as 70%.

Types Of Cosmetic Products To Invest in;

  • Personal care products
  • bathing soap
  • Face powder
  • Various facial make ups etc.

Uses Of Cosmetics Business Plan in Nigeria PDF Feasibility Studies

You can use your cosmetic/ beauty shop  business plan feasibility study for the following purposes;

  • Grant Applications
  • Application for Bank Loans
  • Proposal writing
  • Business Concept Note etc.

Cosmetics Business Plan is without a doubt a lucrative business and as a business that will be funded, you need to have a strategic Plan to start up and execute your entire business template.

Do you want to get a Cosmetics Business Plan in Nigeria Feasibility Sample? Simply follow the instruction below…

Hurry now and GET YOUR Cosmetics Business Plan in Nigeria PDF Feasibility Studies. Simply order yours by paying N10,000 to

Once payment is made for your Cosmetics Business Plan in Nigeria PDF Feasibility Studies, send the following info (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.

NOTE – It is important to note that Cosmetics Business Plan in Nigeria PDF Feasibility Studies will immediately be sent to the email address you’ve provided after your payment has been confirmed.(Soft copy only).

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Business Plan

Cosmetics Business Plan in Nigeria

by BusinessPlan 1 Comment

Our Sample Cosmetics retail shop business plan and feasibility study is up to date and can be used for grants, access bank loans and proposal writing. Furthermore,this article will be answer the following questions for you:

Also Read: Supermarket Business Plan in Nigeria

  • The cosmetics industry in Nigeria
  • How to start a cosmetic business in Nigeria

To get your sample Cosmetics Business Plan in Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (cosmetic retail business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Just in case you have not been informed, cosmetics business is one of the biggest industries in Nigeria and indeed the world at large. If you are not sure about this then I should ask you a question, did you use soap to take your bath this morning? Or after taking your bath did you use some cream on your body and some hair cream on your hair? Cosmetics as most people see it is all about makeup, that is a far cry from what cosmetics is in reality. The term cosmetics is far wider than just makeup, in fact makeup is just a branch of cosmetics, cosmetics covers everything we use to keep the skin healthy and in good condition. We will take a look at some of the different classes of cosmetics that you can invest in later in this article to give you a wider perspective of what constitutes the term cosmetics.

There is a saying which goes thus, “looking good is good business.” If you have heard that before and thought it was a lie, you better think again because looking good is really good business, else the cosmetic business will not be one of the biggest and fastest growing sectors worldwide. Firstly, you should have noticed that more and more beauty products are being produced on a daily basis, from body lotions to hair growth creams and serums to skin lightening products and even bathing soaps, deodorants and perfumes. It is natural that most of these products are more in demand by women than men and if you were to study the present demographic statistics you will discover that for every man you see, there are two women.

The profitability of the cosmetic business in Africa

Before we get to the crux of this article, it is important that we check out how well the business is doing in Africa, this should be a motivation for you to get involved before it is too late. Several entrepreneurs in Africa who recognized this opportunity and decided to invest in it early enough are already millionaires and they are still smiling to the bank as the business is still booming. One big name is Africology, who started by making $400 every week, is reported by CNN to have grown to over $1 million average sales on a monthly basis. Her business has also spread beyond the shores of Africa to Asia and Europe, reaching countries like France, Belgium, the United States, Germany, etc.

If you are in Nigeria you probably would have heard of House of Tara, presently the biggest makeup brand in Nigeria. The company started from just doing freebies less than 20 years ago but today boasts of branches in almost every state in Nigeria, and has crossed into Ghana and Kenya. These growth stories are just a few out of the many successful cosmetic businesses on the continent and you will definitely have some in your neighborhood that practically started from nothing and are making mega income today.

The reasons for the boom in the cosmetics industry in Africa

Africa is the major focus and not Nigeria because this business has the capacity to take you beyond the shores of Nigeria if you can simply get your act right. As stated earlier the business very lucrative and has experienced a major boom from the early 2000’s till now, which is likely not to decline for a very long time. Euromonitor International, a market research firm, gave some staggering statistics in 2011 which stated that the cosmetic industry of both Africa and the Middle East was worth a little over $20.4 million in that fiscal year. Of all the countries that are in this region Nigeria ranks second largest, this means we are the second largest cosmetics market in both Africa and the Middle East combined.

Below we will take a brief look at the reasons for the rapid growth of this sector:

  • Cosmetics are no longer a thing of luxury of show off, they are a daily need . Once upon a time, the use of cosmetics was restricted to the affluent, now they are used by all and sundry and that on a daily basis. Cosmetics help us keep the skin in health and in state of cleanliness which is necessary for good hygiene. We could add cosmetics to the basic needs of man which are food, clothes and shelter because it is now a daily need which most people depend on for daily survival. The African population which just above a billion people is projected to rise to about 2.5 billion by the year 2050, this means there will be more than a hundred percent rise in the demand for cosmetics.
  • 60% of Africa’s population is young and focused on looking good . About 60% of Africa’s population is less than the age of 25 years, this set of people are known to be keen on looking good and trying to impress others with their looks. For this reason alone there is a high demand of cosmetic products and studies show that they could spend an average of $15 a week on looking good.
  • African women have more money to spend . The women who are the major purchasers of cosmetic products now fall into the working class category more than the last thirty years. This means they have more money at their disposal to spend, hence the increase in their demand for cosmetic products. It is only normal that when you have more cash at hand to spend, you will spend on what attracts you the most.

The bottom line is that as long as the population of the African continent increases, there will be an increase in the demand for cosmetics and thus there will be more profit to be made for the entrepreneurs.

Different cosmetic products you can invest in

Earlier it was stated that there are different classes of cosmetics that you can invest in and since we have looked at how big the industry is and what is causing the continual expansion of the industry, it is wise to look at what products you can focus on.

  • Hair care . This accounts for between twenty and twenty five percent of all the cosmetics sold in Nigeria. As you know, there is a new craze about Brazilian, Peruvian and other kinds of hair as well as products that can make the hair longer and thicker. Asides these you have products like relaxers, shampoos, conditioners, dyes, and styling products which are needed daily. Men are not left out as the new trend of keeping beards has caused beard oils and serums to very high in demand.
  • Skin care . This is regarded as the largest branch of the cosmetics industry as there are so many products to choose from. There are different kinds of skin and each of these skin types has products that are peculiar to them, a major reason for the size of this branch of the industry. Products in this category include body lotions and creams, skin lightening formulas, anti-acne, anti-aging, anti-wrinkle creams, toners, cleansers, etc.
  • Makeup products . This is the part you have been waiting for. Makeup is known as decorative cosmetics and it is mostly used by women to beautify their faces, lips, eyes and nails. Some of the major products in this branch include eyeliners, mascara, lipsticks, nail polish, foundation, etc. The number of product brands in this category keeps growing by the day.
  • Toiletries . This category is also widely used by every class of the society as they are necessary for maintaining personal hygiene. They are very in demand and thus they are also referred to as Fast Moving Consumer Goods. Some products in this category include bathing soaps, toothpaste, toilet paper, shaving creams, deodorants and antiperspirants, hair removal formulas and sunscreens.
  • Fragrances . This category is actually the least in demand but somehow comes up with a huge profit because the products are usually expensive. The products that fall into this category are simply a mixture of oils and spirits which help to give the body a great and attractive scent. By this we mean perfumes and other forms of body fragrances.

Steps to take in starting your cosmetic business

Having considered all of the above, we can now discuss the steps you need to take in starting your own cosmetic business in Nigeria.

  • Study the business and make a workable plan . Before delving into any business it is advisable to take some time out to study the business, the sector terrain and the prospective customers. This will help the entrepreneur know what steps to take with the business and how best to invest the capital. When the feasibility study is done, the business owner should come up with a business plan which give him or her a vivid picture of how the business will run and a projection of how much capital is needed and how much profit will be made.
  • Raise your capital . From your feasibility study and business plan you should be able to decipher how much capital is required to start the business. The truth about this business is you do not need so much money to start, you can start very small and grow the business to become a huge empire. There are several ways you can raise capital, from personal savings, from loans from friends, family and the bank and seeking investors.
  • Find a good location . Where your business is located has so much influence on how much patronage you will have and ultimately how much profit will be made. It is advisable to rent a shop in a high brow area, where people who have the capacity to purchase your products will find you. The internet has made life easy and business has become more versatile. You can decide to have an online store using Facebook, Instagram or even open a merchant website, any of this will suffice for your customers to make frequent orders and fetch you your desired profit.
  • Get a reliable and affordable supplier . If you are going to make good profit then you must be buying from a supplier who will not sell to you at exorbitant prices. Consider that there are other cosmetics merchants like yourself and if your products are too costly you will lose your customers to them. This means that you need to find someone who will sell cheaply to you such that when you add your prices, it will still be reasonable enough for your customers.
  • Aggressive publicity . The cosmetic business is one that is attracting quite a lot of attention right now, especially from investors and entrepreneurs. It is who can shout out the most that wins the market. It is your responsibility to make noise about your business, tell over the hilltop and shout it in the valleys. There are several methods of publicizing the business, the internet is your best bet and then you can focus on physical ads like handbills and billboards. Anyhow you want to do it, get as much attention for your business as you can, this will grow your patronage levels geometrically.

In conclusion, the cosmetic industry is one with a lot of profit potential, the onus now lies on you to make the necessary research and put in your investment to share in the spoils of the industry.

Get your sample Cosmetics Business Plan in Nigeria today. To order the business plan, pay N10, 000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

After payment, send your full name, email address and topic (i.e. cosmetic retail business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Cosmetics Business Plan in Nigeria © www.businessplan.com.ng

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cosmetics business plan in nigeria pdf

How to Start a Cosmetic Business in Nigeria: Step-by-Step Guide

cosmetics business plan in nigeria pdf

Starting a cosmetic business in Nigeria can be a rewarding venture given the country’s growing beauty and personal care market.

Here’s a step-by-step guide to help you get started:

1. **Market Research and Planning**: – Research the cosmetic industry in Nigeria, including market trends, consumer preferences, competition, and regulatory requirements. – Identify your target market segment(s) based on demographics, preferences, and purchasing behavior. – Develop a business plan outlining your business concept, products, target market, marketing strategies, operational plan, and financial projections.

2. **Legal Requirements and Registration**: – Register your business with the Corporate Affairs Commission (CAC) as a sole proprietorship, partnership, or limited liability company (LLC). – Obtain necessary permits and licenses from regulatory authorities such as the National Agency for Food and Drug Administration and Control (NAFDAC) for cosmetics and the Standards Organization of Nigeria (SON) for quality certification.

3. **Product Development and Sourcing**: – Develop a product range based on market demand, trends, and consumer preferences. This may include skincare products, makeup, haircare products, fragrances, and more. – Source high-quality cosmetic ingredients, packaging materials, and equipment from reputable suppliers or manufacturers. Consider factors such as product safety, efficacy, and compliance with regulatory standards.

4. **Branding and Packaging**: – Create a unique brand identity, including a brand name, logo, and packaging design that resonates with your target market. – Design attractive and informative product packaging that complies with labeling requirements and communicates key product benefits and ingredients.

5. **Distribution and Sales Channels**: – Determine your distribution strategy, whether you’ll sell directly to consumers through physical retail stores, online platforms, or both. – Establish partnerships with wholesalers, retailers, beauty salons, spas, and other distribution channels to reach a wider customer base. – Set up an e-commerce website or utilize online marketplaces to sell your products to customers nationwide and potentially globally.

6. **Marketing and Promotion**: – Develop a marketing strategy to raise awareness of your cosmetic brand and products. This may include digital marketing, social media marketing, influencer partnerships, and traditional advertising. – Utilize platforms such as Instagram, Facebook, Twitter, and YouTube to showcase your products, engage with customers, and drive sales. – Offer promotions, discounts, and loyalty programs to attract and retain customers.

7. **Quality Control and Compliance**: – Implement strict quality control measures to ensure the safety, efficacy, and consistency of your cosmetic products. – Adhere to regulatory requirements and standards set by NAFDAC, SON, and other relevant authorities regarding product formulation, labeling, packaging, and advertising.

8. **Customer Service and Feedback**: – Provide excellent customer service to build trust and loyalty among your customers. Offer responsive support, address customer inquiries and concerns promptly, and solicit feedback to continuously improve your products and services. – Encourage customer reviews and testimonials to showcase the quality and effectiveness of your cosmetic products.

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9. **Financial Management**: – Keep accurate financial records of your cosmetic business, including expenses, sales, inventory, and profits. – Monitor your cash flow closely to ensure sufficient funds for operations, inventory replenishment, marketing, and growth initiatives. – Invest in financial management tools and systems to streamline accounting processes and facilitate decision-making.

10. **Continuous Learning and Adaptation**: – Stay updated on industry trends, consumer preferences, and regulatory changes in the cosmetic sector. – Continuously innovate and adapt your product offerings, marketing strategies, and business operations to stay competitive and meet the evolving needs of your target market.

Starting a cosmetic business in Nigeria requires careful planning, market research, compliance with regulatory requirements, and a strong focus on product quality, branding, and customer satisfaction. With dedication, creativity, and perseverance, you can build a successful cosmetic brand that resonates with Nigerian consumers and beyond.

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Cosmetic Business Plan Template

Written by Dave Lavinsky

How to Start a Cosmetic Business

Cosmetic Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cosmetic companies.

If you’re unfamiliar with creating a cosmetic business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cosmetic business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cosmetic Business Plan?

A business plan provides a snapshot of your cosmetic business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cosmetic Company

If you’re looking to start a cosmetic business or grow your existing cosmetic company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cosmetic business to improve your chances of success. Your cosmetic business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cosmetic Businesses

With regards to funding, the main sources of funding for a cosmetic business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cosmetic companies.

Finish Your Business Plan Today!

How to write a business plan for a cosmetic business.

If you want to start a cosmetic business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your cosmetic business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cosmetic business you are running and the status. For example, are you a startup, do you have a cosmetic business that you would like to grow, or are you operating a chain of cosmetic businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the cosmetic industry.
  • Discuss the type of cosmetic business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cosmetic business you are operating.

For example, you might specialize in one of the following types of cosmetic businesses:

  • Niche market cosmetics: This type of cosmetic business specializes in one particular segment of cosmetics. For instance, a niche cosmetic business could sell only fragrance-free products, all vegan products, or gluten free products.
  • High-end cosmetics: This type of cosmetic business develops and sells premium make-up and skin care products.
  • Kids cosmetics: This type of cosmetic business specializes in producing inexpensive play-makeup products for children.
  • Beauty blogger/influencer: This type of cosmetic business involves trying out products from different types of cosmetic brands and providing tutorials, reviews, and other helpful information for people who may be interested in the products. Usually, beauty companies will pay the blogger/influencer to sample or endorse their products.
  • Make-up Artist: This type of cosmetic business involves providing make-up services for special occasions like weddings or graduation ceremonies.

In addition to explaining the type of cosmetic business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of products sold, and reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cosmetic industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cosmetic industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cosmetic business plan:

  • How big is the cosmetic industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your cosmetic business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cosmetic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cosmetic business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cosmetic businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes mass market cosmetic brands and retailers, as well as secondhand cosmetic retailers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of cosmetic business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for customers to acquire your products?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cosmetic business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cosmetic company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide premium make-up, skin care products, or esthetician services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cosmetic company. Document where your company is situated and mention how the site will impact your success. For example, is your cosmetic business located in a busy retail district, a business district, a standalone store, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cosmetic marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cosmetic business, including answering calls, stocking shelves, greeting customers, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your cosmetic business to a new city.  

Management Team

To demonstrate your cosmetic business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cosmetic businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cosmetic business or successfully running a small salon.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you expect to serve 20-30 customers per day, and will each customer purchase 1-5 items on average? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cosmetic business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cosmetic business:

  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or photos of happy customers using your products.  

Writing a business plan for your cosmetic business is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning beauty product business plan, makeup business plan or a business plan for a cosmetic company. You will understand the cosmetic industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful cosmetic business.

Don’t you wish there was a faster, easier way to finish your Cosmetic business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

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Cosmetics Business Plan

Cosmetics Business Plan

In Nigeria and even the world at large cosmetic products is one of the most essential commodities that every person cannot do without. It is estimated that about 8 out of 10 persons apply Cosmetics/ beauty products on the body daily and with Africa population estimated to comprise of 60% of people less than the age of 25years and women accounting for 39% of this youthful population.

Most persons might mistake cosmetic to be makeup, rather it is the other way around as makeup is just a small brand of the cosmetic industry.

Cosmetic business boom can be said to be due to the introduction of different body lotions from hair growth creams and serums to skin lightening products and even bathing soaps, deodorants and perfumes which are always in high demand among women and men alike. The women who are the major purchasers of cosmetic products now fall into the working-class category. This means they have more money at their disposal to spend.

In recent times, it has been observed that the Cosmetics, Beauty and Fragrance Stores industry shows a moderate level of market share concentration, with the leading brands (Zenon, Zan, SNL, Doyin Group, Beneks, VIP, Divat et Viva, Enumez) accounting for over half of the available market share in Nigeria.

Starting a cosmetic, beauty and fragrance business is a very profitable and has a lot of benefits if done properly; it can be also capital intensive depending on the scale of operation. Getting the right products that people want to buy, good production process, and pricing are the secrets of running a cosmetic business.

Industry concentration has increased in recent years due to rapidly increasing demand for specialty beauty products. Going forward, the industry concentration is projected to continue increasing over the next five years as consumer-spending levels rise and people turn to well-known, trusted stores for their fragrance, beauty and cosmetics needs.

No doubt, expansive product selections and skilled employees have driven revenue for the Cosmetics, Beauty and Fragrance Stores and industries. So also, with the increase in youth-targeted cosmetics, the expansion of male-specific products and of course the reformulation of anti – aging products have given specialty beauty stores a new collection of cosmetics, beauty and fragrance products to offer customers. Going forward, per capita disposable income will continue to rise and the revenue generated from this industry will also enjoy positive growth.

Knowing these facts about cosmetic business in Nigeria has brought about a form of motivation for Utibe Cosmetics Inc. to tap into the industry as several entrepreneurs who have recognized the profitability of the business venture have invested massively into the sector and are surly reaping millions in profit.

Table of Contents

I.    Introduction3

1.0 Executive Summary4

1.1 Company Benefits5

1.2 Business Objectives6

1.3 Vision6

1.4 Mission6

1.5 Keys to Success6

2.0 Company Summary7

2.1 Company Ownership7

2.2 Location and facilities8

2.3 Start-Up Summary8

Table: Start-up Funding9

3.0 Company Product Description9

3.1 Product Description10

3.2 Product Uniqueness10

3.3 Future Products10

4.0 Market Analysis10

4.0.1 Market Summary10

4.0.2 Market Trend11

4.0.3 Marketing Plan11

4.1 Target Market12

4.2 Industry Analysis12

4.3 Challenges Facing the Cosmetic Industry13

4.4 SWOT Analysis15

4.4.1 Strengths15

4.4.2 Weakness16

4.4.3 Opportunities16

4.4.4 Threats16

4.5 External Environmental Analysis16

4.6 Marketing Strategy17

4.7 Publicity and Advertising Strategy17

4.8 Sales Forecast18

4.9 Sustainability and Expansion Strategy20

5.0 Strategy and Implementation Summary20

5.1 Competitive Edge21

6.0 Management Summary22

6.1 Management Team22

6.2 Personnel Plan23

Table: Payroll Year 124

Table: Payroll Year 1-324

7.0 Financial Plan24

7.1 Breakeven Analysis25

7.2 Projected Profit and Loss25

7.3 Projected Cash Flow27

7.4 Projected Balance Sheet28

Resources, A. (2024). Cosmetics Business Plan. Afribary . Retrieved from https://afribary.com/templates/cosmetics-business-plan

Resources, Africana "Cosmetics Business Plan" Afribary . Afribary, 26 Mar. 2024, https://afribary.com/templates/cosmetics-business-plan. Accessed 16 Jul. 2024.

Resources, Africana . "Cosmetics Business Plan". Afribary , Afribary, 26 Mar. 2024. Web. 16 Jul. 2024. .

Resources, Africana . "Cosmetics Business Plan" Afribary (2024). Accessed July 16, 2024. https://afribary.com/templates/cosmetics-business-plan

Document Details

Related works, cassava farming and processing business plan, piggery farming business plan, catering business plan, fuel station business plan, hotel business plan, sheep farming business plan, fashion (clothing) business plan, transport business plan, salon and spa business plan, travel agency business plan.

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IMAGES

  1. Cosmetics Business Plan In Nigeria by ogumka Innocent

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  2. 2018 Cosmetics Business Plan In Nigeria PDF/ Feasibility Study Template

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  3. Cosmetics Business Plan in Nigeria 2024 Feasibility • NG Business

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  4. (PDF) Download Cosmetology Business Plan in Nigeria

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  5. Makeup Studio Business Plan In Nigeria

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  6. (PDF) SAMPLE BUSINESS PLAN FOR COSMETICS BUSINESS.

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COMMENTS

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    For starters without start up fund, you can use the cosmetic business plan in Nigeria PDF file to seek for bank loans, enter into different competition as well as apply for grants at any issuing agency.

  2. Cosmetics Business Plan in Nigeria - Business Plan

    Cosmetics Business Plan in Nigeria Our Sample Cosmetics retail shop business plan and feasibility study is up to date and can be used for grants, access bank loans and proposal writing.

  3. How To Start A Cosmetic Business In Nigeria: Step-by-Step ...

    Starting a cosmetic business in Nigeria requires careful planning, market research, compliance with regulatory requirements, and a strong focus on product quality, branding, and customer satisfaction.

  4. Cosmetics Shop Business Plan | PDF | Cosmetics | Customer

    The document provides an executive summary for a proposed cosmetics business called Jenny's Cosmetics Enterprise. The business will be a sole proprietorship located in Abuja, Nigeria.

  5. Cosmetic Business Plan Template & How-To Guide [Updated 2024]

    Get Growthink's cosmetic business plan template & step-by-step instructions to quickly & easily create your cosmetic business plan.

  6. Cosmetics Business Plan | Afribary

    Cosmetics Business Plan. Overview. Reviews. Cite Work. In Nigeria and even the world at large cosmetic products is one of the most essential commodities that every person cannot do without.