Pop Colour Cosmetics

Business Plan

If you can dream it, you can do it

Pop Colour Cosmetics

 An everyday affordable make up product that is in reach of
everyone's needs to cover them morning blemishes or to just give a
pop of color to your day

Contents

Executive Summary 3

Type of Business 4

Strategic Plan 6

Operation Plan 8

Marketing Plan 9

Human Resources 13

Financial Plan 16

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Executive Summary
Pop Colour Cosmetics is a small business that has started from the
bottom to create an everyday pressed glitter eyeshadow suitable for all
ages. The plan that follows explains our market, our value proposition
and our market segmentation strategy. The detailed financial plans
provide a clear view of our sales and profit forecasts.

Description
Pop Colour Cosmetics has a small factory located in the southern
suburbs of Perth, Western Australia. The product has been recently
made available in all Priceline Pharmacies across Perths suburbs and is
looking to expand that as the business grows. Pop Colour Cosmetic was
created and is solely owned by an experienced make-up artist and
photographer, Isobel Lutter. As a passionate make-up artist Isobel was
looking to explore further avenues of make-up and that is why she
created her product pressed glitters.

Strategic Plan
At Pop Colour Cosmetics something that we value strongly is that we
want what is best for the public and what is beneficial by consumers. As
we are working our hardest to create the best quality of products at
affordable products we are constantly thinking about how we are going
to improve the business. Our long term goals is expanding our product
range and eventually selling the products internationally.

Production and Operations

Pop Colour Cosmetics will show you how all productions of the pressed
glitters are achieved and how much effort the employees go through to
produce our high quality products being delved at consumers doors and
on store shelves. Our small factory is located in the outer suburbs of
Perth where all our products are handmade and packaged.

Personnel Plan

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The employees at Pop Colour Cosmetics are nothing but the best. They
go above and beyond to creative the highest quality of products. Our
management team is small but put nothing but 120 % effort into our
business every day. All employees have an extensive knowledge of
make-up and the industry and have all been professionally trained.

Financial Plan
As a new business we have started off low but are gradually building
our way up. By showing our profit and loss statement it informs the
public how successful our business has been and how much profit we
are receiving yearly.
Type of Business

Pop Colour Cosmetics is a beauty and health industry targeted towards

women and teenagers that are after good quality affordable products.

Some industry standards are to follow

Confidentiality provisions

On the request of the manufacturer or importer of a cosmetic product,

the Minister may, by notice published in the Gazette, give permission
for an ingredient in the product to be shown in a list of the ingredients
in the product as an other ingredient (instead of by name and volume
or mass) if the Minister is satisfied:
(a) That revealing the name of the ingredient would prejudice a trade
secret; and
(b) (b) that inclusion of the ingredient in the product is unlikely to be
harmful to a consumer.

Form of ingredients list

(1) A list of ingredients must be:
(a) Prominently shown; and
(b) Clearly legible.
(2) The names of the ingredients in the list must be either their English
names or their International Nomenclature Cosmetic Ingredient names.
(3) There may also be a list of ingredients in another language.

Ownership

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Pop Colour cosmetics is owned by one individual which there for
classifies the business as a sole trader. A sole trader is the simplest
form of business structure. Most of the time it is relatively easy and
inexpensive to set up. As a sole trader the individual will be legally
responsible for all aspects of the business and is entitled to keep all
profits after tax has been paid but, liable for all losses.

History
Pop Colour cosmetics was established in Perth, Western Australia when
makeup artist and photographer Isobel Lutter became with the lack of
colours that would shoot well with her photography. Isobels aim was to
develop a make-up line that fulfilled the professional needs of her and
other make-up artists photography. Pop Colour Cosmetics was home
grown in Perth and her first products were made and developed in her
kitchen and buying the supplies she needed from local supermarkets.
Isobels first product was her pressed glitters. She first used the product
on her own clients (her models). Due to Isobels photography being
published in magazines Pop Colour Cosmetics became credited. From
word of mouth popularity grew and in 2014 Isobel launched her first line
from a single counter in a department store in Perth.

Name
The name of Isobels cosmetic brand is Pop Colour Cosmetics. Isobel
wanted a product that was colourful and vibrant. Isobels products were
very intense and gave an bang to the
overall look. After hours of
brainstorming pop colour cosmetics
came to mind as the vibrant colours
gives her make up look a pop of
colour.

Logo
If you can dream it, you can do it

Isobel Lutter created this catch phrase as most

simple quotes, theres a lot more going on. On
the surface, its pretty straight forward. The
first part, If you can dream it, to me says If
you can put the thoughts that make up a thing
together in your head. The second part, you
can do it. to me says you can make that
thought a reality. This quote is about dreaming great and beautiful

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things, and making them so powerful in your head that you simply must
make them come to life. Make up recreates a girl, their attitude, their
their confidence and creates a girl to love herself.

Location
Pop Colour Cosmetics first started off at Isobel Lutters home which then
she had her small quantities of ingredients delivered to her house hold
once a week, where she then began to make her products in her home
kitchen. From that Isobel the sold her products to her clients, friends,
family and other makeup artists. As her business grew Isobel had to her
ore frequent deliveries of her ingredients rent a small factory and
employee more crew. Her products were then distributed in privately
owned trucks to price line pharmacies across Perth. Pop Colour
Cosmetics is also available to purchase online from their website.

Strategic plan

Mission statement
Pop Colour Cosmetics uses the finest, cutting edge ingredients to create
original cruelty free colour cosmetics that women love to wear. We are
strictly vibrant, shimmery and have the full blown wow effect. Pop
Colour Cosmetics shows you how to create different looks, inspire
confidence and to encourage you own pretty. We aim to offer high
quality affordable products available for all ages. Our brand values the
use of animal free testing and abuse there for all of our products are
environmentally friendly and do not partake in the use of any animal
testing,

Short term goals

Pop Colour Cosmetics will spend the next month learning their primary
competition and brainstorming on they offer that other make up brands
dont. Pop Colour Cosmetic will take this research and design a new
advertising campaign that highlights the unique points about their
business or products.

Another short-term goal Pop Colour Cosmetics has is to redesign the

customer service research process to include new questionnaires and

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incentives, such as monthly drawings for free products or discounts on
future purchases for customers who take the time to respond. This
questionnaire will be placed in every store on a stand next to the Pop
Colour Cosmetics section of the store.

Another one of Pop Colour Cosmetics short-term goals is creating

specific and realistic goals. One of which would be to increase monthly
revenue amounts by 30 per cent in the third and fourth quarters of the
first fiscal year. This will be done by the use of more advertisement of
social media websites, Facebook, Instagram, twitter etc. They will also
monthly place Pop Colour Cosmetic flyers in peoples personal
letterboxes.

Long term goals

A long-term goal for Pop Colour Cosmetics would be receiving at least
95 per cent positive customer feedback regarding the service you
provide. Making sure all packaging would do this and quality of the
products is up to scratch when they are personally delivered or brought
in store.

Another long-term goal for Pop Colour Cosmetics would be that in three
years, our company would launch a range of new environmentally
friendly products that are elite products drugstore products. This would
happen is sales are succeeding and we have been making enough profit
to be able to afford to release a new line of make up competing against
more elite brands, for example; Nars and Macs

A long-term goal for Pop Colour Cosmetics would be regarding the web
site. Pop Colour Cosmetics aim would be to get more web visitors to the
organisations site at least 50 per cent by the end of the 2016-year. This
would be done by introducing a 10 per cent off discount code which is
redeemable when purchasing their products on our online website.

Operation Plan

Pressed glitter-
At this current moment Pop Colour Cosmetics is only selling pressed
glitters. Isobell Lutter is hoping to expand her collection when her
cosmetic line has developed and became more popular.

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Isobel will be getting the materials for her product from JPW Marine
Wholesale Distributors. These materials will be sent to her small factory
in welshpool. Pressed glitter will be then made by hand there by her
employees.

In a bowl there will be 3 parts alcohol,

2 parts glycerin and 1 part aloe. Once
mixed together mixture will then be
transferred into 26mm pans using a
syringe. The glitter of choice will be
added and combined to make a
smooth paste.
When the mixture is at a thick paste it
will be placed into the freezer to cool.
Once cooled the pressed glitters will be
packaged into custom design boxes.

Selling location
Isobel has set up website where
customers can order the pressed
glitters from that distributes across
Australia.
For deliveries Isobel uses Post
Australia: to distribute her products as it is the fastest and inexpensive
way for her at this current time. Deliveries usually take 3- 10 working
days depending on the distance of travel.

Isobel will also be distributing the Pop Colour Cosmetics pressed glitters
to Priceline pharmacies across Perth. The product will be located
towards the back of the shop as it is the most suitable position for
Isobels budget. The products will be delivered once a week to Priceline
pharmacies across Perth in a privately owned truck.

Marketing Plan

Customer profile

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Geographic Segmentation
The geographic segmentation of Pop Colour Cosmetics is the whole of
Australia. The product is available for in store purchase across all stores
in Perth and is available for online purchase Australia wide. Pop Colour
Cosmetics is not currently internationals but Isobel is looking to peruse
that in the future. This product is a generic product there for has no
restrictions on the living location

Demographic Segmentation
This product would be suited from ages 13- 30 year olds due to the
colours. The colours that Pop Colour Cosmetics products are very bright
and lively which is more popular in the innovative generation of 2016
rather than the middle aged to elderly generation which are suited
towards the natural generation. This product is available from lower
class income to middle class income people due to the low pricing of
the product. This product would be directed towards make-up artists as
the colors are of good quality and are very bright which, is becoming a
big trend in todays society.

Psychographic/ Lifestyle Segmentation

The lifestyle of Pop Color Cosmetics would be early teens just getting
into make-up, everyday teens/ early adults and make-up artists. Pop
Colour Cosmetics would be a great product for early teens when they
are going to parties, shopping, family gathering and even school as it is
not to heavy of the skin and is a very cheap product to purchase. The
life style of a young adult would use this product when going to festivals
and or clubbing as the use of bright and bold colours are becoming
very popular. This product is great for make-up artists as the
pigmentation of the product is of high quality and is able to create the
dramatic looks they wish to achieve. Pop Colour Cosmetics is suitable
for people who want to expand their make-up collection but only have a
limited budget.

Behavioral Segmentation
The pressed glitters by POP Colour Cosmetics is a great product for
events such as parties, concerts, music festivals, modeling and for
everyday use. This is due to the bold and bright colours that can create
new and different looks that are highly popular in these events. . The
great thing about this trend is that there are no rules, you can let your
creativity run wild. The pressed glitters are great for heavy users of
make up or just beginners and once off occasions.

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The Four 4S

Product
Make up is about self- expression, its not about covering your flaws but
showing the world who you are. Pop Colour Cosmetics goal its to bring
out the beauty in everyone, and by purchasing and wearing our
products you will feel your beauty more then ever.

Pop Colour Cosmetics has an extremely wide selection of pressed

glitters made to suit everyone. The packaging is very small which
creates it easy and convenient to pack. Pop Colour Cosmetics pressed
glitters are also cheaper and more convenient than normal eye glitter
as you need no glitter glue to apply the gorgeous eye shadows.
Although our range is small at this current time we have yet to have
stopped experimenting.

Alcohol, glitter, glycerine and aloe

26mm tin pan

Price
The Pop Color Cosmetics pressed glitters have been priced at $5.99
each. They have been placed at this price as LOral the competitor
company has theirs placed at $9.99. Due to Pop Color Cosmetics being
new into the market the product can no be placed to expensive as
consumers will not be willing to purchase the product and will most
likely stick to the product they are most confident in. by having the
product placed at $5.99 it is cheap enough for consumer to buy and it is
making enough money to pay for expense and eventually make a profit.

Place

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 The materials will be brought from JPW Marine Wholesale Distributors in
Perth. The materials will be environmentally free/ animal abuse free.
Material will be delivered to the factory in Welshpool which is then
where the products are manufactured hand made. Products will then be
checked at Lott to make sure no packaging has been ruined. From there
products will then be sent off in a privately owned truck and distributed
Priceline stores all around Perth. Products will then be placed on
shelves by the store crew, then they are within reach and purchase of
customer. For online orders products will be packaged and sent to Post
Australia. From there the products will be distributed to buyers homes.

JPW Marine Priceline

Wholesale Welshpool
Pharmacies
Distributors Factory

Deliveries

Promotion
Pop Colour Cosmetics is promoting the use of expressing yourself
through make up and adding a pop of colour and life to your day. Due
to Isobel Lutter doing photography for magazines the product will be
greatly be promoted by models in magazines. The use of social media
will be another technique of promoting the new product. If the product
gets popular on social media websites such as Instagram and Facebook,
then there is a more likely chance of the brand to become known there
for creating the demand high for the product leading to an increase of
sales and profit. Pop Colour Cosmetics was first created as original
make up was not up to Isobels standard for her photography. If this
message becomes a part of the product it will create the product to
become an elite brand.

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SWOT analysis

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Human recourses

Functional model

Employees are grouped together in departments according to the

functions of the business and each employees skills and specialisation.
Business Owner

Manufacture
supervisor

Cleaning
supervisor

Manufacture Cleaners Truck drivers

Chain of Command
Manufacturing mangers have authority over the frontline manufacturing
crew. Manufacturing managers get their instructions from the business
owner. The business owner also has authority over the truck drivers and
the cleaning supervisors. The cleaning supervisors have authority over
the frontline cleaners.

Span of Control
The business owner has authority over 14 employees. There is one
manufacturing manager that has a span of control over 7 frontline
manufacturing crew. One managing cleaner with a span of control over
2 frontline cleaning crew.

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Business owner ( X1
Manufacturers ( X 8)
Cleaners (X 3)
Accountant ( X 1)
Truck drivers ( X 2)
Isobel has previous business
experience as she has her own
make up artistry business already.
To be the business owner previous
business experience is needed and
make up knowledge.
The manufacturing of the pressed
glitters is a simple manufacturing
job. There are no qualifications
needed but manufacturing
experience and make up
knowledge is required.
There are no qualifications for this
position but previous experience is
required.
University degree in accounting
required and previous accounting
experience.
Truck licence required and previous
truck driving experience.
completion of a driving skills and
safety course

Levels of Management
There are three levels of management. Business owner, supervisors and
frontline crew. Due to Pop Colour Cosmetics being a small business
there is no need for a large management structure.

Consultants

Management Team.
Business Owner (Isobel Lutter)
Owner of the whole business. All decisions must be approved by Isobel.
Takes care of the recruitment process and the firing process.
Qualifications business experience and make up knowledge.

Manufacturing Manager

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This role supervisors the frontline manufacturing crew. They give inform
crew of necessary tasks they must complete and communicate between
crew and the business owner on what products they are required to
make. Qualifications - Certificate II in management is required,
previous experience is required and make up knowledge is required.

Cleaning Manager
This role supervisor the frontline cleaning crew. Qualification
certificate II in management, and previous cleaning experience.

Accountant
Does all the book keeping and preparation auditing and analysis of
accounts. Prepare annual reports and financial statements for planning
and decision making and advise on tax laws and investments.
Qualifications University degree in accounting and finance and
previous accounting experience.

Truck driver
Transports stock across Perth. Communicates with the business owner
as to the routes and stores they will be delivering to. Qualifications
truck licence and completion of a driving skills and safety course.

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 Financial Plan

Profit and Loss Statement

Printing and $ 500 000

Total revenue $ 500 100%
less Cost ofstationary
goods $ 160 000 31.2 %
sold
Gross profit $ 340 000 68.0%

Less Expenses
Accounting and $ 2 000
legal fees
Electricity $ 6 000
Postage $ 1 000

insurance $7 500

Rent for factory $45 000

Rent for $ 30 000
Priceline
Repairs and $ 5 000
maintenance
Wages $180 000
Workers $20 000
compensation
All other $ 6 000
expenses

Less Total Expenses $ 303 000 30.3 %

Equal Net Profit $ 40 000 4.0 %

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Balance Sheet

ASSETS
Current assets
Cash $ 10 000
Accounts receivable $ 6 000
Inventory $ 7 000
Total Current assets $ 23 000

Non-Current Assets
Plant and equipment $ 3 000
Business premises $ 12 000
Vehicles $ 40 000
Total Non-Current $ 55 000
assets

TOTAL ASSETS $ 45 000

Current liabilities
Accounts payable $12 000

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 Bank overdraft $ 3 000
Credit card debt $ 4 000
Tax liability $ 2 000
Total current $ 21 000
Liabilities

Noncurrent
Liabilities
Long term business $ 120 000
loan 1
Long term business $ 8 000
loan 2
Total noncurrent $ 128 000
liabilities

TOTAL LIABILITIES $ 66 000

NET ASSETS $ 153 000
OWNERS EQUITY $ 153 000

Capital Required
Pop Colour Cosmetics will need a total of 35 000 dollars to start up the
business. Advertising is a big thing at this stage of the business as it is
only new and unknown in the current market. This requires an
excessive amount of advertisement including radio, magazine and
television commercials to boost the consumers knowledge of the
product. Transport is another major expense due to the truck doing
deliveries every day across Perth. Wages must also be included in the
budget. The 350 000 dollars will also need to include computers, desks
and equipment to create the eye shadows. During the first few months
if the business expenses will be high as everything will be new. As the
business settles expenses will decrease as many of the equipment
purchased at the beginning is once off purchases.

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