Business Plan: Essentielle

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1.0 Executive Summary

1.1 General Overview

            Essentielle by Joelle LLC is an outstanding online and retail business that will be established in the beauty affectionate and enthusiastic city of Los Angeles in California. The business will be a partnership where my partner will contribute more towards the marketing and public relationship aspects of the business. As a natural custom skincare line, the business will aim at capitalizing on the enthusiasm for skincare products within the local and international community. Due to the increasing popularity of natural products, Essentielle by Joelle LLC will deal in custom-made products that will contain a maximum of seven ingredients combination per product. Los Angeles represents the perfect location for my business as the city is reported to have a population of over 4 million people with the majority being in the age bracket of 18 to 65 years. This group represents the majority of beauty enthusiasts. Therefore, our primary target creates a business line that will stand out subsequently attract skincare products lovers from different parts of Los Angeles as well as the state of California.

Currently, we are going through the final stages of establishing Essentielle by Joelle LLC as a partnership with the expectation that the local authority will provide us with the required documents. We have spent a significant amount of time trying to acquire a lease agreement at an excellent location from where the business can run its operations. This location should be easily accessible considering this factor is essential for a retail business. The leased area should cover 2800 ft., as it will also be a store where potential customers can pick or return some of their products. In this business plan, we will explain our targeted market, market segmentation strategy, and value proposition. The financial plans that we will provide will paint a clear picture of our projected forecasts regarding the sales and profit margins. Finally, in these plans, we will anticipate how Essentielle by Joelle LLC will reach profitability within the two years of operations.

1.2 Business Model

Essentielle by Joelle LLC’s business model is formulated to primarily focus on capitalizing on the skincare and beauty industry’s contemporary nature. The success of the business will rely on the maximization of the economies of scale. As we stated, each product from the skincare line will compose of at most seven ingredients. Customers will start by taking a skin care questions then will have the option of choosing to either buy from recommended products or make their product with the maximum choice of 7 ingredients such as carrier oils, misc, hydrosols, waxes, exfoliants, and so on. The product categories will include the following; lip balm, body butter, face serum, moisturizer, cleanser, toner, bath salts, face masks, face, lips, and body scrubs, as well as teeth whitening solution. We are in the process of finalizing the price points per ingredients, as well as outsourcing the containers in which they will the products will be packaged in and labeled.

The business will be quite flexible regarding its operations for that reason we look forward to having Essentielle by Joelle LLC receiving revenues from two significant streams. For example sale of custom-made products through a) an online platform and b) retail store. The online sale of natural skincare products will act as the most significant revenues stream to the business. Besides, this will also represent the front to market Essentielle by Joelle LLC to potential customers through different marketing strategies such as advertising, referrals, and so on. During the first year, we project that the business will be operating at 15% as the overall margin of operation with that level improving to 30% this will be dependent on the expected increase in sales. 

1.3 Market Analysis

            Our target is that Essentielle by Joelle LLC occupies a specific position in the beauty industry. Most of the available skincare products are not natural; therefore, with our business aiming to provide custom-made product this should give an excellent competitive edge over potential close rivals. Despite demographic factors, everyone in the United States is a beneficiary and therefore can invest in different skincare routines. Medical professionals have insisted that skincare products are significant hence they are unique among cosmetic products. These products protect people from the harmful ultraviolet rays. In Los Angeles it is a common trend that even an individual who does not wear makeup in most cases tend to be in possession...