Business Plan on Cosmetology Executive Summary in Nigeria

Introduction

Having a business plan is as important as having a road map or GPS when you are on a road trip. Without a plan, you cannot be sure where you are going, how to get there or when you’ve arrived. The process on how to write a cosmetology business plan is similar to the process to write a plan for other businesses. You have to consider the same concepts for any business plan, but, as with any industry, there are things to consider that are specific to the cosmetology industry.

Overview

NCS Cosmetology is a start-up company located at Ogudu, Lagos. NCS expects to catch the interest of a regular loyal customer base with its broad manufacturing and retailing of variety of cosmetic products like liquid soap, air freshener, Vaseline, jik, izal, hair cream treatment, detergent, body oil, perfume, shampoo, car wash, etc. The company plans to build a strong market position in the town due to the partners’ industry experience and mild competition in the area. NCS Cosmetology aim to offer its products and services at a competitive price to meet the demand of the middle-to higher-income local market area residents.

The Company

NCS Cosmetology will be established as a limited liability company owned by Oyebade Adejumobi and Akinyemi Femi. The company will be managed and overseen by Oyebade Adejumobi, a first class cosmetologist of over twenty years working for some of the leading brands in Nigeria. The company’s main office is located at Ogudu, Lagos State. The leased office space should be sufficient for planned staff size growth within the first few years.

Related Business Plan:

VISION

Our vision as a standard cosmetic manufacturing company is to become the number one choice in the whole of Ogudu and also to be among the top two (2) leading cosmetology manufacturing company in Lagos State before our 10th anniversary.

MISSION

To establish NCS Cosmetology as an important brand that represents quality in cosmetic products. We will accomplish this using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence, and a consumer catalogue.

By utilizing this multi-channel approach, we will be able to reach the niche market for quality personal care products rapidly and efficiently. It will allow us to develop NCS Cosmetology as the brand for quality skin and body care products within our target market.

OBJECTIVES

To launch our retailing outlet and training classes by the second quarter of year 1.
To satisfy the needs of our target market and support our company goals within six months.
To generate a return on equity by the end of year 2020.
Position NCS Cosmetology for a successful IPO (Intellectual property office) in 2022.
Achieve an above median maintained margin rate by the end of year 4.
To achieve net profit in year one, increasing in year two, by containing costs and meeting sales goals.
To provide quality sales service and products at fair and best possible prices.

KEYS TO SUCCESS

Quality product.
Product logistics and quality control.

Products and Services

NCS Cosmetology cosmetology is into the manufacturing and retailing of Cosmetology products such as liquid soap, air freshener, Vaseline, jik, izal, hair cream treatment, detergent, body oil, perfume, shampoo, bathing soap, car wash, etc. These products are produced to meet the ever growing demand for low cost high quality products that are compatible with what the average Nigerian can afford and still guarantee its suitability to their different skin type. We have a training arm where we train people on how to run a successful Cosmetology business. It comprises of 5 weeks of lectures, practical and hands-on training. We also offer consultancy service on any of our products. The benefits our products and services are high quality, varieties of products, prompt delivery services, excellent customer care service, online ordering for both training and products and loyal network distributors.

Executive Summary of Cosmetology Business Plan in Nigeria.

The Market

The Cosmetology industry in Lagos has recently experienced rapid growth and NCS Cosmetology will position itself to cater for this fastidious market. The local customers are looking for high quality product in a relaxing atmosphere, where they can meet friends and refer family to.

NCS Cosmetology wants to establish a large regular customer base, and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, customer traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Without a shadow of doubt, a Cosmetology business is indeed a profitable business because it is a fact that people all over the world make use of Cosmetology, perfumes, toiletries and personal grooming products. The running cost for this type of business is pretty low and if you are able to secure a strategic high traffic location or a good shop in a shopping mall, you can be rest assured to take in good returns from your business. The industry is a thriving sector of the economy of Nigeria and most countries of the world and is responsible for the employment of well over 230, 572 people.

Competition

In the true sense of the word, so many other competitors are in the same town, a couple of other Cosmetology manufacturing companies also exist in the neighboring towns. Despite the similar business in the area, NCS Cosmetology will contain a few beneficial strengths to make it more desirable than its competitors. The central location of our NCS will be an additional value aspect of the company.

NCS Cosmetology is launching a standard Cosmetology manufacturing company that will indeed become the preferred choice of Ogudu residents. Our company is located in a corner piece property on a busy road and we have enough parking space that can accommodate well over 20 cars per time. Our competitive edge also lies in the fact that we manufacture and retail a wide range of products that will be readily available at all times. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.

Executive Summary of Cosmetology Business Plan in Nigeria.

Management Team

Oyebade Adejumobi

Oyebade is bringing in 20 years’ experience in Cosmetology and skin care business. He holds a B.Sc in Industrial Chemistry from Obafemi Awolowo University Ile-Ife. He will be in-charge of day to day activities of the business.

Akinyemi Femi Richard – is highly knowledgeable in the Cosmetology business. He has over 7 years’ experience in the industry. Moreover he is a graduate of Yaba College of Technology, Lagos. He is a Project Management Professional and certified Business Consultant. He will be in-charge of sales, management and distribution.

Mr Jude Okon– (B. Agric., MBA, and PMP): He has over 15 years’ experience in business management, business start-up dynamics, financial management of business and overall business growth and development. He is an alumnus of Enterprise Development Center (EDC) of the Lagos Business School (LBS), Pan African University (PAU). He is our business development strategist and a strategic partner.

We brought to the business:

Educational skill and practical experience in Cosmetology manufacturing business.
Capacity to produce on a large scale.
Valuable processing skills that make us own the value chain to a good extent.
Our experience in the industry brings competence and credibility.
Our staffs bring operational, marketing and promotional skills to the business.

Financial Considerations

NCS Cosmetology seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business will be provided primarily by equity from the partners and investors.

Our market survey and research shows that NCS Cosmetology holds the promise of reaching positive cash flow in its 12th month of operation. The advantage of this is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.

Revenue is expected to amount to N12, 984,326 and profit N3, 592,736 in our first year of operation.