Amilie Clean Cosmetics GCC Business Plan May 4th PDF

Business Plan
Amilie Clean Cosmetics

Rachel Brockhage & Sharon Seiter
Grove City Entrepreneurship

Business Plan Competition
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NON-DISCLOSURE AGREEMENT
This Non-Disclosure Agreement (the Agreement) is entered into by and between Amilie Clean Cosmetics (ACC)
with its principal offices at 332 Rockaway Valley Road, Boonton Twp., NJ 07005 (Disclosing Party) and
____________________ , located at _______________________________________________________________ ,
(Receiving Party) for the purpose of preventing the unauthorized disclosure of Confidential Information. The parties
agree to enter into a confidential relationship with respect to the disclosure of certain proprietary and confidential
information (Confidential Information).
1. Definition of Confidential Information. For purposes of this Agreement, Confidential Information shall include all information or material
that has or could have commercial value or other utility in the business in which Disclosing Party is engaged. If Confidential Information is in
written form, the Disclosing Party shall label or stamp the materials with the word Confidential or some similar warning. If Confidential
Information is transmitted orally, the Disclosing Party shall promptly provide a writing indicating that such oral communication constituted
Confidential Information.
2. Exclusions from Confidential Information. Receiving Partys obligations under this Agreement do not extend to information that is: (a) publicly
known at the time of disclosure or subsequently becomes publicly known through no fault of the Receiving Party; (b) discovered or created by the
Receiving Party before disclosure by Disclosing Party; (c) learned by the Receiving Party through legitimate means other than from the Disclosing
Party or Disclosing Partys representatives; or (d) is disclosed by Receiving Party with Disclosing Partys prior written approval.
3. Obligations of Receiving Party. Receiving Party shall hold and maintain the Confidential Information in strictest confidence for the sole and
exclusive benefit of the Disclosing Party. Receiving Party shall carefully restrict access to Confidential Information to employees, contractors and
third parties as is reasonably required and shall require those persons to sign nondisclosure restrictions at least as protective as those in this
Agreement. Receiving Party shall not, without prior written approval of Disclosing Party, use for Receiving Partys own benefit, publish, copy, or
otherwise disclose to others, or permit the use by others for their benefit or to the detriment of Disclosing Party, any Confidential Information.
Receiving Party shall return to Disclosing Party any and all records, notes, and other written, printed, or tangible materials in its possession pertaining
to Confidential Information immediately if Disclosing Party requests it in writing.
4. Time Periods. The nondisclosure provisions of this Agreement shall survive the termination of this Agreement and Receiving Partys duty to hold
Confidential Information in confidence shall remain in effect until the Confidential Information no longer qualifies as a trade secret or until
Disclosing Party sends Receiving Party written notice releasing Receiving Party from this Agreement, whichever occurs first.
5. Relationships. Nothing contained in this Agreement shall be deemed to constitute either party a partner, party to a joint venture or employee of
the other party for any purpose.
6. Severability. If a court finds any provision of this Agreement invalid or unenforceable, the remainder of this Agreement shall be interpreted so as
best to effect the intent of the parties.
7. Integration. This Agreement expresses the complete understanding of the parties with respect to the subject matter and supersedes all prior
proposals, agreements, representations and understandings. This Agreement may not be amended except in a writing signed by both parties.
8. Waiver. The failure to exercise any right provided in this Agreement shall not be a waiver of prior or subsequent rights.
This Agreement and each partys obligations shall be binding on the representatives, assigns and successors of such party.
Each party has signed this Agreement through its authorized representative.
______________________________ ____________ ______________________________ ____________
Signature Date Signature Date
______________________________ ______________________________
Printed Name Printed Name
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The reader acknowledges that the information contained in this business plan is
confidential. Therefore, the reader agrees not to disclose it without the express
written permission of Sharon Seiter and Rachel Brockhage.
Upon request, this document is to be immediately returned to Sharon Seiter or

Rachel Brockhage.
This is a business plan. It does not imply an offering of securities.
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Table of Contents
1. Executive Summary ............................................................................................................................ 7

2. Industry ................................................................................................................................................ 9
2.1 Cosmetics Industry ..................................................................................................................... 9
2.2 Gluten-free Products................................................................................................................... 9
2.3 Gluten-free Cosmetics............................................................................................................... 10
3. Amilie Clean Cosmetics .................................................................................................................... 14
3.1 Background ............................................................................................................................... 14
3.2 Value Proposition ...................................................................................................................... 15
3.3 Barriers to Entry ....................................................................................................................... 15
3.4 Keys to Success .......................................................................................................................... 15
4. Market Analysis ................................................................................................................................ 17
4.1 Customers .................................................................................................................................. 17
4.2 Market Research ....................................................................................................................... 18
4.3 Market Size and Trends ........................................................................................................... 19
4.4 Estimated Market Share .......................................................................................................... 19
4.6 Competitors ............................................................................................................................... 20
4.7 Differentiation ........................................................................................................................... 21
5. Marketing Plan .................................................................................................................................. 22
5.1 Positioning ................................................................................................................................. 22
5.2 Pricing Strategy ......................................................................................................................... 22
5.3 Sales & Distribution .................................................................................................................. 23
5.4 Promotions Mix ......................................................................................................................... 25
6. Operations.......................................................................................................................................... 26
6.1 Operations Model...................................................................................................................... 26
6.2 Facilities and Equipment .......................................................................................................... 27
6.3 Development Status .................................................................................................................. 28
6.4 Intellectual Property ................................................................................................................. 30
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7. Management Team and Company Structure ................................................................................. 31

7.1 Key Management Personnel .................................................................................................... 31
7.2 Management Compensation and Ownership ......................................................................... 31
7.3 Board of Advisers ...................................................................................................................... 32
7.4 Operations Expansion Plan ...................................................................................................... 32
8. Critical Risks, Problems, and Assumptions .................................................................................... 33
9. Financial Plan .................................................................................................................................... 34
9.1 Startup Cash .............................................................................................................................. 34
9.2 Source of Funds ......................................................................................................................... 34
9.3 Financial Assumptions Sheet ................................................................................................... 35
9.4 Pro-Forma Income Statement.................................................................................................. 36
9.5 Pro-Forma Balance Sheet ......................................................................................................... 40
9.6 Pro-Forma Cash Flow Statement ............................................................................................ 41
9.7 Breakeven Analysis ................................................................................................................... 42
11. Appendix ........................................................................................................................................ 43
11.1 Partnership Agreement ............................................................................................................ 43
11.2 Founder Resumes ...................................................................................................................... 45
11.3 March 7th Beta-Test Presentation ............................................................................................ 47
11.4 Five Month Implementation Schedule .................................................................................... 49
11.5 Sample Web Content ................................................................................................................ 50
11.6 Interviews of Gluten-free Individuals ..................................................................................... 51
11.7 Monthly Balance Sheets............................................................................................................ 53
11.8 Monthly Cash Flow Statements ............................................................................................... 56
11.9 Monthly Operating Schedules.................................................................................................. 59
11.10 Monthly Budgets ................................................................................................................... 64
11.11 Seasonality ............................................................................................................................. 69
11.12 Pricing Assumptions ............................................................................................................. 72
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1. Executive Summary
Amilie Clean Cosmetics solves the growing need for gluten-free cosmetics by manufacturing and
distributing gluten-free, organic makeup and personal care products.
Gluten is a protein in wheat, barley, and rye which causes severe health problems for individuals
with Celiac Disease. Celiac disease is linked to long term problems such as osteoporosis,
infertility and cancer. Individuals who are gluten-intolerant can improve their quality of life by
eliminating all traces of gluten from their diet. Today, over 10% of the American population is
eating gluten free, and the rate of diagnosis for Celiac Disease is rising rapidly.1
In the past three years, demand for gluten-free food has risen 33%.2 However, gluten is also a
hidden threat lurking in the ingredients of name-brand cosmetics products.3 Because the FDA
does not mandate disclosure of ingredients on makeup labels, the presence of gluten can slip by
undetected, with consequences ranging from breakouts to debilitating digestive flare-ups.4
Amilie products offer peace of mind. We give our customers freedom to enjoy the luxuries of
quality makeup worry-free. Unlike competitors, we focus on the gluten-free claim. Our
products are certified gluten-free by a third party and backed with scientific consumer education
which competitors do not offer.
Our primary customers are natural and organic grocery stores and distributors, reached through
trade shows and sales programs. Our end users are women ages 16-60 who suffer from food
allergies, especially gluten-intolerance. We will reach them through web marketing, consumer
events, grocery stores where they shop.
Today, our nourishing Lip Balm is fully prototyped, and receiving positive reviews from family
and friends. Prototypes of our Mineral Foundation and Eye Shadow will be completed in a
matter of weeks.
We believe that Amilie Clean Cosmetics will meet the real and growing need for gluten-free
makeup and personal care products. We will break even in our first year of operations, and grow
in profitability as Amilie becomes a household name in the brand-loyal gluten-free community.
Amilie will require $50,000 of startup capital.
Thank you for taking the time to read this plan. We welcome as much advice as you can give us.
We will launch Amilie after graduation, and want to make it the best it can possibly be.
Sincerely,
Sharon Seiter, CEO

1
Data taken from a webinar entitled The Gluten Free Movement Within Specialty Foods. Full powerpoint
available upon request.
2
http://www.nytimes.com/2011/11/27/magazine/Should-We-All-Go-Gluten-Free.html?pagewanted=all
3
http://news.consumerreports.org/health/2011/11/gluten-in-cosmetics-may-pose-risk-for-celiac-patients.html
4
http://www.sciencedaily.com/releases/2011/10/111031114941.htm
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Rachel Brockhage, COO
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2. Industry
Amilie Clean Cosmetics is part of a young niche industry providing cosmetic products to
individuals who struggle with gluten intolerance and wheat allergies. This niche is currently
underserved and growing, providing serendipitous opportunities for Amilie.
2.1 Cosmetics Industry

Amilie Clean Cosmetics participates in the growing gluten-free cosmetics industry.5 The value of
cosmetics manufactured in the US annually is over $55 Billion.6 According to Forbes.com, the
global cosmetics industry generates over $203 Billion in annual sales.7
The Industry is segmented as follows, with over $19 Billion in Other Cosmetics and Toilet
Preparations. This segment includes traditional makeup.
Cosmetics Industry Segments

Other cosmetics and toilet
6% preparations
2%
5%
Creams, lotions and oils,
excluding shaving, hair, and
9% 35% deodorant
Hair preparations (including
shampoos)
Hair tonics, including hair

10% and scalp conditioners
Perfumes, toilet waters, and

colognes
12% Dentifrices, mouthwashes,

gargles, and rinses
21%
8
The cosmetics industry struggled during the recession, but has rebounded, with healthy 5%
growth in 2011.9 The industry shows especially strong growth in the high-tech and organic
sectors.
2.2 Gluten-free Products
While the cosmetics industry is mature and stable, the gluten-free products industry is relatively
new and volatile. Since 2009, public awareness of gluten-intolerance has grown significantly.
Gluten is a protein found in wheat, barley, and rye which frequently triggers adverse reactions
5
Our NAICS industry code is 325620 - Toilet preparation manufacturing. Our SIC code is 2844 Toilet preparations.
6
http://www.ibisworld.com/industry/default.aspx?indid=499
7
http://www.forbes.com/2006/02/08/best-selling-cosmetics_cx_me_0209feat_ls.html
8
http://www.census.gov/econ/industry/products/p325620.htm
9
http://www.skininc.com/spabusiness/trends/126516783.html
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ranging from headaches and nausea to debilitating fatigue. Gluten exposure

in women with Celiac disease has been linked to long term problems like
osteoporosis, infertility and cancer. Individuals who are gluten-intolerant
can substantially improve their quality of life by eliminating all traces of
gluten from their diet.
Today, 10% of the US population eats gluten-free.10 (Thats
more than the entire population of Texas)
In response to burgeoning consumer demand, the natural and specialty food
industry has created an impressive array of gluten-free food products.
SPINs, a market research service for the natural food industry, says that
gluten-free food is a $6.3 Billion industry, up 33% since 2009.11
The NASFT, a specialty food organization, says the gluten-free industry will grow to $8-10
Billion in 2013.12
2.3 Gluten-free Cosmetics
Amid rising demand for gluten-free foods, there is a notable lack of attention to gluten in
cosmetics13. Gluten intolerant individuals spend hours of time and thousands of dollars ensuring
that their diets are completely gluten-free, yet fail to realize that gluten is hiding in their makeup
bags, causing breakouts or even more serious symptoms.
A popular gluten-free blog lists over 20 common personal care product ingredients which
contain gluten and an additional 10 which may be cross-contaminated.14 One of the most
ubiquitous of these ingredients is Vitamin E oil, which may be derived from wheat, soy, or rice.
If Vitamin E oil is derived from wheat, gluten contamination is inevitable.
Cynthia Kupper of the Gluten Intolerance Group of North America says that gluten-free labeling
on body care products has grown 43% over last year.15
Within the profitable gluten-free products industry, cosmetics are largely ignored. Only four
companies offering full gluten-free certification of their cosmetics and a handful of others make
a gluten-free claim.16 Unlike food and pharmaceuticals, cosmetics do not require pre-approval
from the Food and Drug Administration (FDA) before going on store shelves. The FDA does not
require companies to list ingredients on the product label, and this can cause big problems for
consumers with gluten sensitivity.
10
Data taken from a webinar entitled The Gluten Free Movement Within Specialty Foods. Full powerpoint
available upon request.
11
12
NASFT webinar.
13
http://news.consumerreports.org/health/2011/11/gluten-in-cosmetics-may-pose-risk-for-celiac-patients.html
14
http://www.naturallydahling.com/ingredients.html
15
http://supermarketnews.com/nonfood/more-nonfoods-labeled-gluten-free
16
According to the makeup list downloaded from the Gluten Free Makeup Gal blog -
http://www.glutenfreemakeupgal.com/
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The gluten-free cosmetics industry is disproportionately small relative to the gluten-free food
industry, with potential for rapid growth. 17 Our own estimates lead us to believe that the gluten-
free cosmetics industry had approximately $83 Million in sales in 2011.18 Because the market is
fragmented and untapped, we project 20% annual growth in the next two years.
Gluten is not known to be directly absorbed through the skin. While it is not a major risk in
mineral-based makeup, it is a problem for products that may be ingested, such as lipstick, lip
gloss and lip balm. The presence of gluten in cosmetics is an issue increasingly covered by the
medical community, warning Celiac cosmetic users of the dangers of long term gluten ingestion
directly linked to diarrhea, fatigue and weight loss19.
During the American College of Gastroenterology's (ACG) 76th Annual Scientific meeting in
2011, Dr. Marie Borum, MD presented a case called "Body Lotion Causing A Celiac
Exacerbation and Dermatitis Herpetiformis: Natural is Not Always Healthy." In the case, a 28
year old woman experienced exacerbation of Celiac symptoms and a recurring skin rash after
applying a body lotion advertised as natural. These symptoms ended after the woman stopped
applying the lotion. Dr. Borum presented the case as an illustration of the huge challenge Celiac
patients face in trying to determine whether cosmetic ingredients contain gluten. 20
Another study unveiled during the meeting examined the products offered by the top ten
cosmetic companies in the United States. The objective was to evaluate the availability of
information about cosmetic ingredients and the accessibility of gluten-free products. The study
found that products used on the lips and face resulted in unexpected exposure to gluten. Only
two of the ten companies in the study offered detailed ingredient information and of the two
companies, neither identified gluten sources, indicating a lack of readily available information on
the presence of gluten in cosmetics. Topical application of cosmetics that contain wheat
ingredients may also trigger an allergic reaction in people with allergies to wheat. The body
mistakenly identifies wheat as a harmful agent and mounts an attack against it, causing a medical
condition known as contact urticaria. The symptoms of contact urticaria commonly appear as
redness, swelling, itching and hives.
17
In 2007, Food Manufacturing was a $590 Billion industry.
(http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk) In comparison, Cosmetics
Manufacturing was $43 Billion. Assuming the gluten free cosmetics and food industries follow the proportionality of their
mainstream counterparts, the gluten free cosmetics industry should be around $460 Million. However, this young industry is
underdeveloped and highly fragmented. We estimate that gluten free cosmetics is at most an $80 Million dollar industry
today, with potential for rapid growth in the next 3-5 years.
18
We estimated this number in two ways. First, we estimated that the gluten-free cosmetics industry was 1.4% as large as the
gluten-free food industry estimated by SPINs (see above). This was based on the relative popularity of Google keyword
searches on gluten free (3,350,000), gluten-free food (201,000, and gluten-free makeup (2,900). Second, we reviewed
the list of 16 companies claiming to offer gluten free cosmetics (from Gluten Free Makeup Gal). We estimated that the average
revenue for that group of companies is $5 Million x 16 = $80 Million.
19
http://celiacdisease.about.com/od/Coping_with_Celiac_Disease/tp/Make-The-Rest-Of-Your-Home-Gluten-
Free.htm
20
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Cosmetics users who are allergic to wheat can best limit the risk of an adverse reaction by
insuring their products are free of wheat proteins. The topical application of wheat-containing
cosmetics may trigger even more severe reactions like anaphylaxis. Because of these
consequences, people with wheat allergy must take extra precaution to ensure that their food and
personal care products are free of wheat.
Consumers can best avoid the risk of experiencing an allergic reaction by reading the list of
ingredients on all their cosmetic products and keeping track of the products that cause a problem.
The Mayo Clinic recommends that buyers keep it simple when looking for new products. 21
Amilies products are made from simple formulas, allergen-free ingredients and we fully
disclose the ingredients on the package. Our Lip Balm contains only three simple ingredients.
Our products will not cause an allergic reaction because they are free from trace amounts of
wheat and other allergens.
21
http://www.mayoclinic.com/health/wheat-allergy/DS01002/DSECTION=lifestyle-and-home-remedies
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3. Amilie Clean Cosmetics

Amilie Clean Cosmetics (ACC) manufactures and distributes organic, gluten-free, top-8 allergen
free makeup and personal care products. Our high-quality products are distributed online and
through natural and specialty grocery stores carrying gluten-free products.
Awareness of the benefits of organic products has grown dramatically in recent years, and is
more than just a trend. In addition, many individuals are diagnosed with food allergies each
year, and the rate of diagnosis for gluten intolerance is rising. Research in the gluten-free and
food-allergy communities reveals that these individuals are confused and dissatisfied with
current cosmetic offerings.
In addition, our target market is growing. We identify our primary market as females ages 16-60
who suffer from a food allergy, especially gluten-intolerance. These customers have high
purchasing power and are accustomed to spending more than average on allergen-free foods.
Amilie Clean Cosmetics can create barriers to entry through strong branding, proprietary
formulas, and a superior distribution network.
We offer consumers full peace of mind through gluten-free and organic certifications.
3.1 Background
Amilie Clean Cosmetics is a new startup, which we are serious about launching in June 2012.
As the founders of Amilie Clean Cosmetics, we believe that our skills and passions are relevant
to Amilies mission. Sharon, the Chief Executive Officer, has nearly two years of experience
working for a snack food company with critical knowledge and contacts in the gluten-free,
natural products industry. Rachel, the Chief Operations Officer, has extensive experience in
biology which will enable her to understand the formulation and scientific basis for our products.
Rachel and Sharon are interested in working together to launch Amilie Clean Cosmetics after
graduation as a side venture to their work and graduate school pursuits.
To date, we have completed this business plan, prototyped products, built a website, and
conducted beta testing and interviews with our target market. 22
22
Please reference Appendices 1 and 2 for complete details and a Five-Month Implementation Schedule.
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3.2 Value Proposition

Amilie products offer consumers Peace of Mind. Amilies value proposition encompasses the
following key elements:
1. Peace of Mind assuring consumers that Amilie products are safe
2. Quality creating products that are effective and luxurious
3. Consumer Education providing materials to inform consumers of the harmful
ingredients in mainstream cosmetics
4. Honesty fully disclosing the ingredients in our products
5. Purity sourcing high-quality, organic ingredients for a pure end product
3.3 Barriers to Entry

The gluten-free cosmetics industry is made up of a fragmented group of small companies.
Barriers to entry exist, but can be overcome by smart and determined entrepreneurs.
The greatest barrier to entry for Amilie is developing and retaining strong wholesale accounts in
natural & specialty grocery.
The costs of sourcing raw materials from certified organic and gluten-free suppliers are
substantial, relative to generic ingredients. This forms a second barrier to entry in the gluten-free
cosmetics market.
The costs of equipment and manufacturing space are substantial, but may be lowered by working
with a third-party manufacturer. However, such an arrangement risks contamination from
gluten-containing ingredients.
Consumer brand loyalty is a key barrier to entry. The gluten-free community is highly brand-
loyal, and many consumers have found makeup products which work well for them. Amilie
faces the major challenge of overcoming that loyalty and persuading them to try a new brand.
Finally, Amilies extensive certifications from the GFCO, FDA, and others form barriers against
competitors. These certifications are costly and require rigorous tests and periodic renewals.
3.4 Keys to Success

Based on our extensive reading and networking in the gluten-free industry, we believe successful
gluten-free cosmetics companies must:
Educate consumers about the need for gluten-
free cosmetics
Provide 100% gluten-free products Consumer
Create high quality, enjoyable products Education
Offer a reasonable price-point
Engage consumers through social media and
consumer events
100%
Grocery
Distribution Gluten
Free 15 of 72
Gain distribution in gluten-free and natural grocery stores

Innovate frequently with new products
While Amilie will work to achieve all seven of these keys to success, we especially emphasize
excellence in these three areas:
100% Gluten-Free Our first focus is on creating a line that is completely free of
gluten, to give our consumers full peace of mind.
Consumer Education Amilie will become a thought leader on gluten-free cosmetics.
Grocery Distribution we will pursue distribution in gluten-free and natural grocery
stores where consumers shop for gluten-free food products.
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4. Market Analysis
4.1 Customers
We identify our primary market as females ages 16-60 who suffer from a food allergy, especially
gluten-intolerance. These customers have high purchasing power and are accustomed to
spending more than average on allergen-free foods.
There are three key influences that drive these women to purchase cosmetics:
1. Women have an intense need to feel beautiful. In our high-pressure culture of

supermodels and TV stars, most women struggle with deep-seated feelings of
inadequacy.
2. Young women lead busy, active lives and seek out personal care products that will
contribute to their long-term health and the good of the planet. They have grown up
believing in the benefits of natural products and are attracted to organic foods and goods
free of toxins and contamination.
3. Middle-aged women desire to turn back the effects of time and look young again.
They spend billions of dollars each year in this pursuit. The demand for anti-aging
products will continue to grow as the Baby Boomers age.
Like all other women, our customers wear makeup to feel beautiful, young, and healthy.
However, they have an additional need for products that will not exacerbate their severe
gluten intolerance. Gluten often lurks in unlabeled cosmetics. Amilie offers the peace of mind
of certified gluten-free, allergen-free cosmetics.
Our target market is segmented into two subgroups:
Primary Target Market Secondary Target Market
Age 16-30 30-60
Gender23 Female Female
Family Single Married with 2-3 children
Living Situation High School/College/Young Professional Works part time or stays home
Affluence Upper-middle class Upper-middle class
23
Women are diagnosed with Celiac Disease at a much higher rate than men.
(http://www.glutenfreepages.com.au/CMS/index.php?page=celiac-age-sex-profile)
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Frequency of 3-6 months 3-6 months

Makeup
Purchase24
Purchase Buy makeup for beauty Buy makeup for anti-aging

Behavior
Computer Use Heavily involved in social media, use Use some social media and
internet very frequently. Access through internet during free time.
mobile devices. Access through home
computer.
Other Media _ TV and print

Use
Leisure Social events, health-related pursuits. Family-oriented, health

Activities conscious.
4.2 Market Research

On March 7th, we gave a brief presentation on Amilie Clean Cosmetics to a group of faculty and
students. We asked participants to describe Amilie. They responded with words like clean,
simple, honest, natural, fresh, and wholesome. One participant said Amilie is a name that
immediately captures me. Design-specific words included girlie, bright, pink and green. One
evaluator wrote your website was comfortable and agreeable to me.
Participants also included terms pertaining to Amilies viability such as start-up, market share,
opportunity for sound investment and growth. The idea of healthy, clean cosmetics resonated
with many participants, as seen from words like healthy, pure, no allergens, organic, gluten free,
all natural, cosmetics for a health conscious generation.
(See Appendix for more detail regarding the March 7th presentation)
To ascertain the appeal of our products to the target market, we interviewed25 three young
women with gluten intolerance. Emily Topp is a key contact, a junior at GCC with a severe form
24
Based on my personal buying behavior and internet articles, I estimate that most women purchase makeup
every 3-6 months. (http://community.sephora.com/t5/Beauty-Confessions/How-often-do-you-replace-YOUR-
makeup/td-p/132417)
25
For greater detail, see Appendix.
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of Celiac disease. Emily is forming a new Celiac support group and we plan to attend the
meetings. Elisa Angione is a junior with an undiagnosed case of Celiac disease and provided our
team with scientific research reports on the genetics of gluten intolerance. Abby Pherson is a
junior with Celiac disease and Crohns disease, a condition related to Celiac. These friends were
all very curious about and supportive of our idea, and expressed an interest in our products. Our
team also attended the Celiac Awareness Tour event in Monroeville on January 28.
4.3 Market Size and Trends

The gluten-free industry is growing. Over 18 million Americans have some form of gluten
sensitivity and a study by the Mayo Clinic found a dramatic increase in the number of Celiac
cases over the last ten years.26 Young people are five times more likely to have Celiac disease
than youth in the 1950s.27 With greater awareness of Celiac disease and related gastrointestinal
disorders, the demand for gluten-free cosmetics has increased. The natural personal care market
accounts for over $6 billion in sales, climbing at an annual rate of 9%.28 Of this market, gluten-
free cosmetics form an $83 Million niche.
Over 96% of gluten-free customers are brand loyal. 29 Once Amilie wins the support of Celiac
cosmetic users, it will enjoy long-lasting support from this core customer base.
Consumer awareness of the need for gluten-free cosmetics is rising rapidly and will lead to
significant growth in this sector during the next 3-5 years.
The gluten-free cosmetics industry is made up of a large number of small companies. Amilie
Clean Cosmetics has an opportunity to dominate this fragmented market with superior cosmetics
and a focused message.
4.4 Estimated Market Share

Amilie Cosmetics will gain share primarily from mainstream products that are crossing over into
the gluten free category. Currently, these products are not labeled or easily identified as gluten-
free, forcing consumers to contact the company directly and engage in dangerous guesswork.
Amilie will also gain market share by utilizing an unusual go-to-market strategy which targets
distribution through grocery and drugstore channels, rather than traditional beauty stores.
Additionally, many existing gluten-free companies cannot offer the peace of mind of a gluten-
free certification. With superior convenience, lower price points, and gluten-free certification,
Amilie Clean Cosmetics will successfully gain market share.
2012 2013 2014

Gluten-Free $83 Million $99.6 Million $119.52 Million
Cosmetics
26
27
28
http://www.forbes.com/2007/10/31/clorox-burts-bees-markets-equity-cx_af_1031markets15.html
29
http://www.gluten.net/gfrap/list-your-restaurant.aspx
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(20% annual growth)

Amilie $91,294 $191,583 $343,500
Market Share 0.1% 0.2% 0.3%
4.5 Competitors
There are several small and medium sized players in this market. Of the 16 companies which
produce gluten-free cosmetics, only 4 are formally tested and certified gluten-free30. The
remainder of the market is commanded by mainstream products which happen to be gluten-free.
Our key competitors are Arbonne, Gabriel Cosmetics Inc., Himalaya Herbal, and Red Apple Lipstick,
profiled in the graph below. Each of these companies has their products tested for gluten by a
professional lab.
Price
31
Prominence of Gluten-free claim
30
Information from Gluten Free Makeup Gal product guide: http://www.glutenfreemakeupgal.com/
31
https://www.arbonne.com/shop_online/showitem.asp?ProductId=7877&menuId=257&withLinks=1
http://www.himalayausa.com/Botanique/skincare/lip-care.htm
http://www.gabrielcosmeticsinc.com/index.cfm?fuseaction=product.display&product_ID=8&ParentCat=8
http://www.redapplelipstick.com/red-lipstick/red-lipstick-by-red-apple.html
Amilie will pursue a mid-range price point with extremely strong emphasis on the gluten-free status of all our
products.
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Arbonne offers a wide range of products which are gluten free. However, the gluten-
free claim is not prominently displayed on their website and packaging.
Himalaya Herbal low-cost products with gluten-free label. However, their selection
focuses more on personal hygiene items and lacks quality makeup.
Gabriel Cosmetics offer a limited number of gluten-free products. High prices.
Red Apple Lipstick offer high-quality lipstick with a clear gluten free claim. It does
not offer any other items.
Based on this competitive analysis, we believe Amilie Clean Cosmetics can command market
share in the gluten free niche by offering high quality makeup products for a medium price point
with a clear gluten free label.
4.6 Differentiation
Amilie is differentiated from competitors on the basis of:
1. Gluten-free certification by the GFCO
2. Full disclosure of ingredients
3. Lower prices than many competitors
4. Scientific consumer education
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5. Marketing Plan
5.1 Positioning
Amilie sells peace of mind to the consumer through gluten free products. Our cosmetics are
positioned based on their high-quality, pure ingredients, and our honesty about what is in them.
Our brand personality is simple, friendly, and relaxed. To explore the look and feel
characteristics of Amilie, visit our website www.amiliecosmetics.com
5.2 Pricing Strategy

Amilie products will command a mid-to-high price point relative to competitors, as shown here:
Product MSRP
Lip Balm $2.99
Foundation $29.99
Eye Shadow $11.99
Lip Balm 0.15 oz.

Cost per Unit $0.51 Gross PM
i
Wholesale Price (case of 36) $1.65 69%
Retail Price $2.99 83%
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This price places us between mainstream and high end lip care products, level with well-known
natural brands, such as Burts Bees.
Mineral Foundation 0.3 oz.
Wholesale Priceii (case of 6) $16.55 73%
Eye Shadow 0.1 oz.

Wholesale Priceiii (case of 12) $6.75 40%
Because prototyping of our Eye Shadow is not yet complete, these numbers are tentative.
(See Appendix for the assumptions underlying our pricing structure.)
We project the follow unit sales for each product line in Years One through Three. The resulting
dollar revenue amounts are calculated on the basis of our wholesale case price.
Product Year One Year Two Year Three

Lip Balm Cases 599 1257 2250
$ 35,580 $74,666 $133,650
Eye Shadow Units 230 483 865
$ 18,630 $39,123 $70,065
Foundation Units 409 858 1535
$ 40,613 $85,200 $152,425
Online & Direct to consumer sales will make up about 8% of the dollar volume of total sales.
These sales will be at the retail price, and command a higher average Net Profit Margin of 80%,
compared to our wholesale average Net Profit Margin of 63%.
Composite Net Profit Margin = 64%

Composite COGS32 = 36% of Sales
5.3 Sales & Distribution
Because Amilie will sell products through two primary distribution channels, we have two
different selling cycles, which are outlined here:
32
Industry leaders, such as Revlon have COGS equal to 35% of Sales
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Sales Cycle Direct to Consumer via Stores & Distributors

www.amiliecosmetics.com
1. Prospect for Search Engine Optimization to generate Gather leads through trade
leads leads, promotion of products through shows and industry
giveaways and consumer events. networks.
2. Make contact Consumer clicks on website, enters contest, Make contact through trade
or tries a free sample. shows or introductions
3. Qualify the Consumer desires gluten-free cosmetic Buyer understands the
lead products. gluten-free market and need
for cosmetics.
4. Presentation Materials on website inform consumer about Formal sales presentation
the benefits of Amilie. with powerpoint, or less
formal phone call.
5. Meet Customer service will answer emails and Take questions following the
Objections & phone calls with questions or concerns. presentation/call.
Concerns
6. Close the Sale Customer purchases a product through the Customer agrees to purchase
online store. a quantity of product upon
negotiated terms.
7. Follow Up Email customers to ascertain the quality of Call back regularly to check
their experience. on the status of products and
any concerns.
We will receive payment for consumer orders via credit card. Wholesale orders may be paid by
credit card or check, depending on size and consumer preference.
a. Trade Shows
In our first year, we will attend the Natural Products Expo East.33 Expo East provides the
opportunity to reach to the largest buying audience for natural, organic and healthy products on
the East Coast. At the event, we have the potential to reach 25,000 industry members. Because of
the high cost of this event and the age of our company, we will not attend other industry trade
shows in 2012.
b. Distribution
We will also call directly on gluten-free independent grocery stores to promote our products.
Some consumers will discover our products on the shelves of their local store.
After startup, our communication with consumers and customers will remain essentially the
same: internet marketing, consumer events, trade shows, and distribution. The primary difference
33
(http://www.expoeast.com/expoeast2012/public/enter.aspx) Booth costs $3,600, plus fees, travel, plus booth
design, free products samples. Total cost approximately $7000.
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will be the quantity of these activities. During the first five years of operations, we will steadily
increase our marketing budget and will attend more consumer events and trade shows to drive
revenue growth.
5.4 Promotions Mix

a. Internet Marketing
We will pursue an integrated strategy of internet marketing to drive customers to our website.
These efforts will be segmented by age group:
16-30 Group: These young consumers use social media and search heavily, and are
likely to use a smartphone or other mobile device. 34 We will reach the younger
portion of our target market through a campaign to create internet buzz. This will
include Facebook ads, Google adWords, excellent SEO, and free giveaway contests.
35
30-50 Group: Middle-aged women are the largest group of social media users.
This this age group has become remarkably interested in blogging and related
outlets, such as Pinterest. Our social media and SEO efforts will effectively reach
this group. We will also employ tactics involving reviews and giveaways by
influential bloggers.36
b. Consumer Events
The Celiac community is robust and growing, with a network of support groups and events.
Amilie will reach consumers on the grassroots level by participating in and sampling at
consumer events.
37
Provide Celiac support groups with free samples and product information.
38
Distribute information and samples at consumer events:
39
Celiac Awareness Tour
40
The Great Gluten-free Expo
41
Gluten Free for Life Expo
34
http://pewresearch.org/pubs/1484/social-media-mobile-internet-use-teens-millennials-fewer-blog
35
http://blog.nielsen.com/nielsenwire/online_mobile/for-social-networking-women-use-mobile-more-than-men/
36
Internet Marketing Costs: Facebook ads $150/month, giveaways $100/month, free samples for bloggers
$100/month = $4,200 in the first year.
37
Celiac support groups are present in all areas of the country. This list is outdated, but provides an idea of the
prevalence of these communities: (http://www.enabling.org/ia/celiac/groups/groupsus.html) In the first year, we
will send $100 worth of product to 12 influential support groups. Our budget for this activity is $1,200
38
The events listed here are a few of many. More complete listing available here:
(http://www.celiaccentral.org/community/Upcoming-Events/78/)
(http://www.healthandfitnessexpos.com/gluten_free_expos.html)
39
Hosts recurring events in several locations in the northeast. Estimate cost (based on personal experience) $2,000
with samples and travel. (https://www.facebook.com/celiacawarenesstour)
40
(http://www.bhamkidsandfamily.com/home/2011/10/gluten-free-expo/) Approximate cost unavailable.
Estimate $2,000.
41
(http://glutenfreeforlifeexpo.blogspot.com/) Approximate cost: $350 for booth, plus travel and samples =
$2,000
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6. Operations
Amilie will manufacture, market, and distribute high-quality, gluten-free cosmetic products. Our
operating model and procedures are explained in the following sections.
6.1 Operations Model

Below is a diagram highlighting the workflow of tasks at Amilie. The tasks outlined in purple
will be the primary responsibilities of Rachel. Sharon will be responsible for tasks outlined in
green.
Source
Ingredients &
Packaging
Manufacture
Products
Direct Sales Web Marketing Consumer Events
Answer customer
Fill Wholesale
Ship Web Orders concerns &
Orders
complaints
Follow Up Follow Up
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6.2 Facilities and Equipment

Because of the importance of the gluten-free claim to Amilies value proposition, we feel that it
is important to keep manufacturing in-house in a dedicated gluten-free facility. This will
eliminate the possibility of cross-contamination and enable us to offer our customers greater
peace of mind.
Our products will be produced and packaged in a dedicated facility by trained part-time
employees. Based on a quick survey of available properties in Cincinnati, Ohio the cost of such
a space should be $2.50 - $5.00 per square foot.
All of Amilies products can be produced manually for test marketing and early sales. Later,
quality machinery will be required. Cosmetics machinery can be expensive, but full-scale
machinery is not necessary for niche startups. There are two types of machines which apply to
the manufacturing of our cosmetics products:
1. Lip Balm Filling Machine quoted cost with shipping, $30,000
2. Powder Compacting Machine quoted cost with shipping, $71,500
At startup, Amilie will purchase a Lip Balm Filling Machine. The equipment will be depreciated
over four years.
The lip balm machine is fairly compact and will not take up much space. Thus, the majority of
our facility will be devoted to the storage of ingredients and finished products on large industrial
shelves.
Based on our budget for Year One, we will carry up to $5,000 of raw materials during the first
year.
During the first year, our maximum total inventory on hand will be $4,000 during the first year.
15 square feet will be devoted to storing this inventory, based on the following assumptions:
Product Case Size Cases in $ Value Shelves

Inventory Required
Lip Balm 4 x 6 x 3 83 $1344.6 1/3
Eye Shadow 4 x 6 x 3 30 1436.4 1/3
Mineral Foundation 4 x 3 x 3 57 1347.48 1/3
We will use industrial shelving42 to store inventory, estimating that each shelving unit will
require 15 square feet of space. Our raw materials and packaging inventory will require an
additional three industrial shelves, for a total around 50 square feet of storage space. In addition,
the facility will contain 30 square feet of flat work-space containing a sink with hot and cold
42
http://www.homedepot.com/h_d1/N-5yc1v/R-100661857/h_d2/ProductDisplay?catalogId=10053&langId=-
1&keyword=industrial+shelves&storeId=10051
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water. Each of the necessary machines has a footprint of approximately 50 square feet. Thus the
total space consumed by shelving, work-surfaces, and machinery is 130 square feet. Based on
this, we estimate that space required during the first year of operations will be 500 square
feet.
For the first three years, we will house manufacturing in extra space in Rachels home in
Cincinnati, OH. Space requirements will grow with sales, incurring the following costs:
Year One Two Three Four Five

Space Needed 500 sq feet 500 500 1000 1000
Cost ($4 / sq ft) $- $- $- $4000 $4000
6.3 Development Status

We have selected products for initial development based on three criteria:
1. High Profit 2. Simple 3. Widespread

Margins Manufacturing Use
a. Lip Balm
Our Lip Balm is a soft and nourishing compound of
organic oils, waxes, and flavors. Lip Balm is spread
generously over the lips to alleviate chapping and add
attractive shine.
Status: Prototyping & Testing

Complete
Our Lip Balm is currently formulated in a fresh and
pleasant Orange Cream flavor. It is made from a simple
formula of beeswax, olive oil and orange extract. The
simplicity of its formulation provides a high quality
flavor and texture that soothes chapped lips and leaves a
long-lasting fresh, fragrant flavor. We will develop two
additional fruit-inspired flavors, for a total of three SKUs in our Lip Balm line.
Lip balm is packaged in 0.07oz. slim-line lip balm tubes. These tubes are longer and
thinner than standard lip balm tubes, creating a uniquely upscale look and feel. Each
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tube is affixed with a colorful label in compliance with FDA cosmetics labeling
guidelines.43
Our Lip Balm tubes will be available individually or by the case of 36. (See Section 5.3
Pricing Strategy for more details) Because our Lip Balm is made from natural
ingredients, we recommend that the product is used within 12 months after opening.
b. Mineral Foundation
Mineral Foundation is a soft, loose powder
containing a variety of minerals, natural pigments,
and oils. It is available in a variety of skin-tones.
The semi-opaque powder is brushed over the facial
area to give the skin a smooth, even appearance
before the application of additional makeup, much
like primer is applied to walls before painting.
Status: Research & Development

Our Mineral Foundation will be formulated in six shades to match a variety of skin
tones and packaged in 30 gram sifter jars for easy dispensing onto makeup brushes.
Foundation jars will be sold individually, or by cases of 6. Our Mineral Foundation has
a shelf-life of three years.
c. Eye Shadow
Eye Shadow is a soft compound of minerals, pigments,
and oils which are pressed firmly into a small container or
palate. Eye Shadow is available in almost every color
imaginable, and is blended on the eyelid with a small
brush or sponge to add color and draw attention to the
eyes.
Status: Research & Development

Our Eye Shadow will be formulated in three popular
shades: Soft Pink, Lavender, and Blue. The Shadows will
be packaged in 10 gram jars for convenient use with small
brushes and sponges. Eye Shadows will be sold
individually and by the case of 12. Our Eye Shadow has a shelf-life of three years.
d. Product Improvement and New Products

Amilie New products will be developed in response to trends and consumer requests
and comments received through surveys, emails, and social media. They may include
expansion of existing product lines or addition of new cosmetic products.
43
http://www.fda.gov/Cosmetics/CosmeticLabelingLabelClaims/default.htm
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Publicly traded industry leaders spend about 2-4% of revenue on Research &
Development.
Therefore, ACCs budgeted R&D costs are as follows:
Year One Year Two Year Three Year Four Year Five
Revenue $91,294 $191,583 $343,500 $551,622 $775,914
R&D (3%) $2,738 $5,747 $10,305 $16,548 $23,277
6.4 Intellectual Property

Our intellectual property will consist of trade secrets surrounding the formulation of our products
and trademarks protecting our brand identity.
Trade secrets will be protected through careful employee training and division of labor within the
manufacturing process.
Our name and logo trademarks will be registered through an attorney at startup.
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7. Management Team and Company Structure

7.1 Key Management Personnel
Sharon Seiter and Rachel Brockhage are founding managers at Amilie.
Sharon has experience in the gluten-free industry through her work with the Mediterranean
Snack Food Company and a broad set of business skills gained through her Entrepreneurship
degree.
Rachel has research experience in clinical chemistry, nanotechnology and a background in

biology. The skill profile of each of the founders is outlined here. See the organizational chart in
section 6.1 Operations Model for a breakdown of primary responsibilities. See the Appendix
for detailed resumes of both founders.
Manufacturing & Shipping

Executive Leadership
Marketing & Sales
Web Management
Customer Service
Accounting
Finance
R&D
HR
Rachel X X X X
Sharon X X X X X X
7.2 Management Compensation and Ownership

Sharon and Rachel are equal joint owners of Amilie Clean Cosmetics (See Appendix for full
Partnership Agreement).
Their monetary investment in the company is as follows:
Invested Committed Total

Sharon Seiter $130 $4870 $5,000
Rachel Brockhage $75 $4925 $5,000
During Year One and Year Two, founders will each be compensated with 12.5% of total
revenue. In Year Three, they will each receive salaries of $40,000, growing to $50,000 and
$60,000 in Years Four and Five respectively.
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7.3 Board of Advisers

We are currently in the process of selecting a board of knowledgeable individuals to offer advice
and guidance to Amilie Clean Cosmetics. Our board will include:
Mike Ellison, Owner of Ellison Group, company dedicated to manufacturing world-class

surface technologies
Professor George Howley business planning expert.
Mike Ellison successful entrepreneur and CEO.
Mary Kate Breese accounting student.
Emily Topp student with Celiac disease and numerous food allergies.
Steve Myers VP of Sales at Mediterranean Snacks with over 25 years of sales
experience in natural foods.
7.4 Operations Expansion Plan

During the first six to twelve months of operations, Sharon and Rachel will operate Amilie as a
part-time venture. Once the venture breaks even and begins to grow, they will develop the
venture full time.
As Amilie grows, certain gaps in the founders experience may be filled by mentoring from the
Board of Advisers. They will seek out advisers with skills in sales, R&D and operations, and
manufacturing during the early months of launching Amilie. These areas are critical to success,
and Amilie will benefit from the expertise of qualified consultants in the cosmetics industry.
While we have a strong management team, maximizing growth will require more personnel with
a diverse range of skills. After the first year of operations, Amilie will pursue the following team
expansions, with an emphasis on acquiring experienced individuals in the natural products
industry.
The cost of hiring employees to assist in the production, packing, and shipping of products is
included in Cost of Goods Sold (See Appendix).
As students, we believe in the benefits of internships, and would like summer interns to figure
prominently in the startup of Amilie. We will select interns with strong marketing skills to drive
consumer interest and sales growth.
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8. Critical Risks, Problems, and Assumptions

This business plan contains several key assumptions, which could pose a risk to Amilie if they
are not realized.
We assume that the gluten-free cosmetics industry will experience rapid and sustained growth,
enabling Amilie to grow 110% in Year Two, 80% in Year Three, 60% in Year Four, and 40% in
Year Five. (See Appendix for full Financial Assumptions). Based on industry growth
projections, we believe these growth figures are attainable.
It is assumed that our materials will be available on time and in sufficient quantities. Difficulty
sourcing organic materials and packaging could cause production to grind to a halt. Diversified
supplier relationships will be critical to mitigating this risk, and we will order each ingredient
from a minimum of two different suppliers.
Another assumption is that Amilie will be able to reach a sufficient number of consumers and
stores to meet sales projection. Without these key distributions channels, sales may be
unsustainably low. In light of this risk we have added Steve Myers to our advisory board to
mentor us in the natural food sales process.
Some legal risk is inherent in the production of consumer products, such as makeup. To protect
against legal issues, damage claims, and lawsuits, Amilie will carry general liability insurance.
It is assumed that Amilie will be able to meet the standards required for FDA, GFCO, and other
certifications. Based on the simplicity of our manufacturing process and careful sourcing of
organic ingredients, we will be able to fulfill this assumption.
The greatest risk for Amilie is relatively low barriers to entry for competitors. It is possible that
major cosmetics companies could re-label their products as gluten-free, however this is unlikely
because of the small size of the gluten-free niche relative to the whole market.
Small, entrepreneurial competitors may respond with similar products. Amilies barriers against
such future competitors will be strong wholesale account relationships, sourcing relationships,
the expense of manufacturing equipment, strong brand loyalty within the gluten-free community,
and extensive certification processes.
The brand loyalty working in Amilies favor could also be a problem during startup. Because
the gluten-free community is strongly brand loyal, many consumers are hesitant to try new
brands. Overcoming this problem will be possible with strong, intentional marketing efforts, as
outlined earlier.
Finally, Amilie Clean Cosmetics will face the cash flow problems common to young businesses.
There is a risk that the venture will be undercapitalized. Therefore, investments at startup must
be sufficient. Startup Capital of $50,000 will help alleviate cash flow difficulties while the
company grows to maturity. In addition, Amilie will carry a $10,000 line of credit for cash flow
emergencies.
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9. Financial Plan
Pro Forma financials for Amilie are displayed below, with additional detailed financials in the
Appendix. Startup capital of $50,000 will fuel inventory buildup and cash flow, while sales
grow to sustainable levels.
For information on the seasonality of the cosmetics industry, please see the Appendices.
9.1 Startup Cash

Amilie Clean Cosmetics will begin operations with a cash balance of $16,950, $550 in inventory,
and $32,500 in Equipment. Startup capital required is $50,000 and will be used as follows:
Startup Capital
Capital Investments Amount
Computer Equipment $2,000
Manufacturing Equipment $30,000
Other Equipment $500
Operating Expenses Amount
Legal Services $3,000
Licenses and permits $1650
Prepaid insurance $500
Starting inventory $550
Cash (working capital) $11,700
Line of Credit Annual Renewal Fee $100
Total Startup Cash Needed = $50,000
9.2 Source of Funds

Sources of Funds
The chart at right illustrates our
plan for raising necessary startup $10,000
cash. Founders
We are currently seeking $28,000

Business Plan
of additional outside funding. $2,000
Competition
Prizes
$28,000 Family and
Friends
$10,000 Funds Needed
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9.3 Financial Assumptions Sheet

Below is an alphabetized list of the assumptions underlying each item in our financials.
Accounting Costs - Accounting Costs are calculated based on fees of $0.50 per transaction (with an average
transaction size of of $72) plus $100 for financials.
Capital Expenditures We will purchase $32,500 of equipment at startup, to be depreciated over four
years.
Computers for Rachel and Sharon will cost approximately $5,000 each, as reflected in starting capital
expenditures.
Cost of Good Sold = 36% of Revenue, based on our Pricing Assumptions (11.3) and the P&L
statements of industry leaders, such as Revlon.
Credit Sales = 80% of wholesale sales
Ending Inventory = 50% of the following months projected COGS.
Insurance we will carry $1,000,000 of general liability insurance.
Legal Costs - Legal Costs are based on fees of $200 - $250 per hour. We estimate requiring 20 hours of legal
service in the first year.
Legal Services at startup will cost approximately $3,000. This spend is in addition to the ongoing item
listed in our budget.
Licenses the state of NJ requires a Wholesale Food/Cosmetics License. For companies with under
$100,000 in sales, the fee is $150. For companies with over $500,000 in sales, the fee is $500. We also
include annual costs of $1,500 for maintaining our gluten free certification with the GFCO.
Line of Credit - According to conversations with our banker, we will be able to secure a $10,000 line of credit
with cosigners for an annual fee of $100, and can expect an interest rate of around 6.25%
Marketing - Internet Marketing Costs: Facebook ads $150/month, giveaways $100/month, free samples for
bloggers $100/month = $4,200 in the first year. Marketing to Consumer events and support groups = $8,000 (see
marketing plan).
Online Sales = 7.5% of total sales
Purchases 50% of purchases will be paid in the month of purchase.
Research & Development based on the budgets of Revlon, Estee Lauder, and others, we project R&D
as 3% of revenue.
Rent See Section 6.2
Salaries Rachel and Sharon each receive a salary equal to 25% of sales. Additional salaries are
explained in Section 7.4.
Sales - Revenue numbers are forecast based on our ability to receive about 20 online orders of $5 each and 18
wholesale orders of about $200 each during the first month and grow sustainably thereafter according to industry
trends (see Section 1)
Seasonality Amilies seasonality will include: slow, gradual sales during the summer, sustained growth
starting in September and lasting through early January, steady decline during the spring. (see 11.8)
Shipping The shipping costs listed cover shipping of wholesale orders to customers. (Online orders
will have shipping covered as an additional charge) The average order Wholesale order will be $72 with
$7 cost of shipping.
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9.4 Pro-Forma Income Statement

Pro Forma Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $91,294 $191,583 $343,500 $551,622 $775,914

Cost of Goods Sold 32,866 68,970 123,660 198,584 279,329
Gross Profit 58,428 122,613 219,840 353,038 496,585
Operating Expenses
Salaries 22,824 47,896 80,000 100,000 120,000
Payroll Taxes 2,739 6,287 10,845 19,189 25,917
Office Supplies 600 1,354 2,429 3,900 5,486
Shipping 8,876 18,626 33,396 53,630 75,436
Rent - 0 0 4,000 4,000
Marketing &
13,694 28,737 51,525 82,743 116,387
Promotions
Legal & Accounting
7,992 5,000 7,500 10,000 10,000
Services
Licenses & Permits 1650 2000 2000 2000 2000
Line of Credit 100 100 100 100 100
Insurance 2,000 2,000 2,000 2,000 2,000
Research &
2,738 5,747 10,305 16,548 23,277
Development
Miscellaneous 1,999 4,196 7,523 12,081 16,993
Total Operating Expenses 65,212 121,942 207,623 306,191 401,596
Net Income: ($6,784) $671 $12,217 $46,847 $94,989
Net Profit Margin -7% 0% 4% 8% 12%
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Pro Forma Income Statement Year One
June July August September October November December January February March April May
Revenue $1,007 $4,168 $5,158 $5,764 $6,578 $7,869 $9,133 $10,316 $11,164 $10,777 $9,873 $9,486
Cost of Goods Sold 363 1,501 1,857 2,075 2,368 2,833 3,288 3,714 4,019 3,880 3,554 3,415
Gross Profit $644 $2,667 $3,301 $3,689 $4,210 $5,036 $5,845 $6,602 $7,145 $6,897 $6,319 $6,071
Operating Expenses
Salaries
252 1,042 1,290 1,441 1,645 1,967 2,283 2,579 2,791 2,694 2,468 2,372
Payroll Taxes 30 125 155 173 197 236 274 309 335 323 296 285
Office Supplies 50 50 50 50 50 50 50 50 50 50 50 50
Shipping 98 405 501 560 640 765 888 1,003 1,085 1,048 960 922
Rent
Marketing & Promotions 151 625 774 865 987 1,180 1,370 1,547 1,675 1,617 1,481 1,423
Legal & Accounting Services 3,416 416 416 416 416 416 416 416 416 416 416 416
Licenses & Permits 1650 - - - - - - - - - - -
Line of Credit 100
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Research & Development 228 228 228 228 228 228 228 228 228 228 228 228
Miscellaneous 166 166 166 166 166 166 166 166 166 166 166 166
Total Operating Expenses 6,307 3,223 3,746 4,065 4,495 5,174 5,841 6,464 6,912 6,708 6,231 6,028
Net Income: ($5,663) ($556) ($445) ($376) ($285) ($138) $4 $138 $233 $189 $88 $44
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Pro Forma Income Statement - Year Two
Revenue $9,418 $11,720 $11,720 $12,228 $14,181 $16,642 $20,041 $21,994 $22,424 $19,025 $17,072 $15,119
Cost of Goods Sold 3,391 4,219 4,219 4,402 5,105 5,991 7,215 7,918 8,073 6,849 6,146 5,443
Gross Profit $6,027 $7,501 $7,501 $7,826 $9,076 $10,651 $12,826 $14,076 $14,351 $12,176 $10,926 $9,676
Operating Expenses
Salaries 2,355 2,930 2,930 3,057 3,545 4,161 5,010 5,499 5,606 4,756 4,268 3,780
Payroll Taxes 463 532 532 367 425 499 601 660 673 571 512 454
Office Supplies 113 113 113 113 113 113 113 113 113 113 113 113
Shipping 916 1,139 1,139 1,189 1,379 1,618 1,948 2,138 2,180 1,850 1,660 1,470
Rent
Marketing & Promotions 1,413 1,758 1,758 1,834 2,127 2,496 3,006 3,299 3,364 2,854 2,561 2,268
Legal & Accounting Services 416 416 416 416 416 416 416 416 416 416 416 416
Line of Credit 100
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Miscellaneous 349 349 349 349 349 349 349 349 349 349 349 349
Net Income: ($2,743) ($381) ($381) ($144) $77 $355 $738 $958 $1,005 $622 $402 $181
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Pro Forma Income Statement - Year Three
Revenue $15,603 $21,096 $21,096 $22,010 $25,526 $29,956 $36,074 $39,589 $40,363 $34,245 $30,729 $27,213
Cost of Goods Sold 5,617 7,594 7,594 7,924 9,189 10,784 12,986 14,252 14,531 12,328 11,063 9,797
Gross Profit $9,986 $13,502 $13,502 $14,086 $16,337 $19,172 $23,088 $25,337 $25,832 $21,917 $19,666 $17,416
Operating Expenses
Salaries 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666
Payroll Taxes 648 813 813 660 766 899 1,082 1,188 1,211 1,027 922 816
Office Supplies 202 202 202 202 202 202 202 202 202 202 202 202
Shipping 1,517 2,051 2,051 2,140 2,482 2,912 3,507 3,849 3,924 3,329 2,988 2,646
Rent
Line of Credit 100
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Miscellaneous 627 627 627 627 627 627 627 627 627 627 627 627
Net Income: ($5,763) ($1,670) ($1,670) ($1,159) $116 $1,724 $3,944 $5,218 $5,499 $3,280 $2,003 $728
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9.5 Pro-Forma Balance Sheet

Balance Sheet
Starting Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets:
Cash & Cash Equivalents 16,950 12,190 16,851 28,943 73,103 156,152
Accounts receivable 6,371 10,118 18,213 29,140 40,796
Inventory 550 2,110 3,797 6,076 8,506 11,908
Total Current Assets 17,500 20,671 30,766 53,232 110,749 208,856
Long-term Investments:
Property, plant, and equipment 32,500 32,500 32,500 32,500 32,500 32,500
Accumulated depreciation 8,125 16,250 24,375 32,500 32,500
Net: 32,500 24,375 16,250 8,125 0 0
Total Long-term Investments: 32,500 24,375 16,250 8,125 0 0
Total Assets: 50,000 45,046 47,016 61,357 110,749 208,856
LIABILITIES & EQUITY

Current Liabilities:
Accounts payable 1,830 3,129 5,253 7,797 10,915
Line of Credit
Total Current Liabilities 0 1830 3129 5253 7797 10915
Long-term Liabilities:
Long-term debt
Total Long-term Liabilities:
Total Liabilities: 0 1830 3129 5253 7797 10915
Equity:
Paid-in Capital 50,000 50,000 50,000 50,000 50,000 50,000
Retained Earnings -6,784 -6,113 6,104 52,952 147,941
Total Equity: 50,000 43,216 43,887 56,104 102,952 197,941
Total liabilities & Equity 50,000 45,046 47,016 61,357 110,749 208,856
Monthly balance sheets for the first three years of operations are included in the Appendix.
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9.6 Pro-Forma Cash Flow Statement

Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Operating Activities
Net Income ($6,784) $671 $12,217 $46,847 $94,989
Add:
Decreases in Non-cash Current Assets
Accounts Receivable -6,371 -3,747 -8,095 -10,927 -11,656
Inventory -1,560 -1,687 -2,279 -2,430 -3,402
Increases in Current Liabilities
Accounts Payable 1,830 1,299 2,124 2,544 3,118
Depreciation 8,125 8,125 8,125 8,125 0
Cash Generated by Operations: ($4,760) $4,661 $12,092 $44,159 $83,049
Investing Activities
Purchase of Long-term investments 0 0 0 0 0
Cash Generated by Investing 0 0 0 0 0
Financing Activities
Line of Credit
Cash Generated by Financing 0 0 0 0 0
Net Increase in Cash ($4,760) $4,661 $12,092 $44,159 $83,049

Cash & Cash Equivalents at Beginning of
16,950 12,190 16,851 28,943 73,103
Year
Cash & Cash Equivalents at End of Year $12,190 $16,851 $28,943 $73,103 $156,152
Free Cash Flow ($4,760) $4,661 $12,092 $44,159 $83,049
Monthly cash flow statements provided in the Appendix.
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9.7 Breakeven Analysis

Below is a Breakeven Analysis for Amilie Clean Cosmetics based on our monthly pro-forma
income statements for the first two years of operations. Breakeven will occur in November
2012. During the seasonal lull of Summer 2013, income will become negative again for a short
period of time, before turning strongly positive in Fall 2013.
Amilie Cosmetics - Breakeven Analysis

$2,000.00
$1,000.00
$-
$(1,000.00)
$(2,000.00)
$(3,000.00)
$(4,000.00)
$(5,000.00)
$(6,000.00)
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11.Appendix
11.1 Partnership Agreement
PARTNERSHIP AGREEMENT
Date: March 17, 2012 This partnership agreement is made on this

Commences March 17, 2012 seventeenth day of March, 2012, between
Location: Grove City, PA the individuals listed below:
Sharon Seiter
Rachel Brockhage
The partners listed above hereby agree that they shall be considered partners in business upon
the commencement date of this PARTNERNSHIP AGREEMENT for the following purpose:
The terms and conditions of this partnership are as follows:
1) The NAME of the partnership shall be: Amilie Clean Cosmetics
The PRINICPAL PLACE OF BUSINESS of the partnership shall be: 7726 Laurel Avenue
Madeira, Ohio 45243
2) The CAPITAL CONTRIBUTION of each partner to the partnership shall consist of the
following property, services or cash to which each partner agrees to contribute:
Name of partner Capital contribution Agreed-upon cash value Percent share (%)
50% $55,000 50
Sharon Seiter
50% $55,000 50
Rachel Brockhage
Furthermore, the PROFITS AND LOSSES of the partnership shall be divided by the partners
according to a mutually agreeable schedule and at the end of each calendar year according to the
proportions listed above.
3) Each partner shall have equal rights to MANAGE AND CONTROL the partnership and its
business. Should there be differences between the partners concerning ordinary business
matters, a decision shall be made by unanimous vote. It is understood that the partners may
elect one of the partners to conduct day-to-day business of the partnership; however, no
partner shall be able to bind the partnership by act or contract to any liability exceeding
$1,000 without the prior written consent of each partner.
4) In the event a partner WITHDRAWS from the partnership for any reasons, including
death, the remaining partners may contribute to operate the partnership using the same
name. The withdrawing partners shall be obliged to sell his or her interest in the
partnership. No partner shall TRANSFER interest in the partnership to any another party
without the written consent of each partner.
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5) Should the partnership be TERMINATED by unanimous vote, the assets and cash of the
partnership shall be used to pay all creditors with the remaining amounts to be distributed
to the partners according to their proportionate share.
6) Any DISPUTES arising between the partners as a result of this agreement shall be settled
by voluntary mediation. Should mediation fail to resolve the dispute, it shall be settled by
binding arbitration.
In witness thereof, this PARTNERSHIP AGREEMENT has been signed by the partners on
the day and year listed above.
Partner___________________________________________________________
Partner___________________________________________________________
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11.2 Founder Resumes

Sharon K. Seiter
Home: 332 Rockaway Valley Road Boonton, NJ 07005
College: Box #2720 200 Campus Dr. Grove City, PA 16127
Email: seitersk1@gcc.edu Cell Phone: 973-461-3802
OBJECTIVE
Locate a challenging position in an organization seeking an optimistic, tenacious, and innovative
individual with strong team-building skills.
EDUCATION
Grove City College Grove City, PA
BS in Entrepreneurship May 2012
GPA 3.88/4.00 Deans List
EXPERIENCE
Mediterranean Snacks Intern Marketing Brand Coordinator Boonton, NJ
Summer 2010-Present
Supported growth of Facebook fans from 300 to 7,500 in three months.
Gained Content Marketing skills by managing the company website and blog.
Designed and generated highly detailed sales reports in Excel.
Traveled to trade shows to sell products and learn from food industry personnel.
Cared for customers, bloggers, and members of the press.
Built collaboration skills by working with individuals from many functional areas.
Sharie Kaye Founder & Owner Boonton, NJ
2009 Present
Designed and sold a line of fitness attire for the unique needs of Irish Step Dancers.
Concept was awarded second place in the 2011 Grove City College Business Plan Competition.
Andrew Schlafly Paralegal Far Hills, NJ
2008 2010
Developed professionalism and knowledge of the legal field.
Honed excellent writing and proofreading skills.
Gained knowledge of the LEXIS research system.
ACTIVITIES AND HONORS

Recipient of the Joseph C. Cicero, Jr. Entrepreneurship Scholarship
Recipient of the Grove City College Presidential Merit Scholarship
Entrepreneurship Club President
Business Plan Competition Second-place winner in For-Profit Category in 2011
Elevator Pitch Competition Winner in For-Profit Category in 2009
500 Fives Organized an on-campus fundraiser to benefit gypsies in Chennai, India
Law Society Member
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Rachel M. Brockhage
Home: 5207 Minuteman Court Mason, Ohio 45040
College: Box #2508 100 Campus Dr. Grove City, PA 16127
Email: brockhagerm1@gcc.edu Cell Phone: 513-204-9082
OBJECTIVE
PROVEN ACHIEVER with consistent track record in balancing academics and leadership
activities. Independent, self-motivated student with extensive experience in working on a team.
Committed to long-term career in scientific inquiry and medical research.
EDUCATION
Grove City College Grove City, PA
BS in Biology, minor in Communication Studies May 2012
GPA 3.66/4.00 Deans List
EXPERIENCE
Cornell Nanoscale Facility Student Intern Ithaca, NY
Summer 2011
Successfully completed Technology and Characterization at the Nanoscale course
offered to users of Cornell Nanoscale Facility
Received certification in CNF microscopy methods
Maintained database of National Nanotechnology Infrastructure Network users from
pharmaceutical companies, hospitals and biotech startups
Genomic Research Institute Research assistant Cincinnati, Ohio
Summer 2010
Investigated size differences in native High Density Lipoprotein Complexes with and
without Apolipoprotein A-II
Gained experience in FPLC, high density ultracentrifugation and covalent
chromatography
Improved skills in running gel electrophoresis and Lowry assays
Findings published and used for further size heterogeneity studies of ApoA-II and HDL
Presented findings at UCs SURF research symposium and the Sigma Xi Research
Showcase
International Medical Missions Student assistant Guatemala
2010
Partnered with Caring Partners International to serve rural and urban communities in
Guatemala
Cooperated with patients and certified physicians on the trip in running several full-day
clinics
Gained experience in taking blood pressure readings, monitoring blood glucose levels
and diagnosing rare diseases
ACTIVITIES AND HONORS

Omicron Delta Kappa national leadership honorary member
Beta Beta Beta national biology honorary society member
Teaching assistant for Cellular and Molecular Biology (2010)
Web Editor for the campus newspaper The Collegian
Webmaster for the radio station WSAJ The One and co-host of Amoebas and Social
Loafing
Grove City College Presidential Scholar
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11.3 March 7th Beta-Test Presentation
On March 7th, we gave a brief presentation on Amilie Clean Cosmetics to a group of faculty and students.
The beta test was very successful, and gave us much food for thought. Below is our evaluation of the
feedback we received.
Summary - We asked participants to give us words to describe Amilie. They responded with words like
clean, simple, honest, natural, fresh, and wholesome. One participant said Amilie is a name that
immediately captures me. Design-specific words included girlie, bright, pink and green. One evaluator
wrote your website was comfortable and agreeable to me.
Participants also included terms pertaining to Amilies viability such as start-up, market share,
opportunity for sound investment and growth. The idea of healthy, clean cosmetics resonated with
many participants, as seen from words like healthy, pure, no allergens, organic, gluten free, all natural,
cosmetics for a health conscious generation.
Positive Feedback
Participants liked the certified gluten free label, the market label allergen free, and reduced skin
irritation for gluten and allergens. One participant highlighted how the concept is scientifically-
founded. Another noted research shows you know your stuff. Praise for design elements included
Amilie design, the color scheme of the website, website design, with one participant noting love the
packaging, name, etc. All very appealing!
In terms of its viability as a startup, evaluators noted that Amilie is in an emerging market and has great
potential. One participant noted no one is paying attention is an excellent selling point to investors.
Another said the size and growth of market, the prospect for a small firm to enter the niche natural
product market. Yet another said I like the fact the market appears to be virtually untapped by an
exclusive manufacturer of gluten-free products.
Finally, we received praise for the product itself. One evaluator said I LOVED the extremely mild citrus
fragrance/flavor. I loved the plainness of it. It was very mild on my lips. Another wrote I will be
investing in your company for its lip balm. I use lip balm 365 days a year!
Areas for Improvement
A participants said Im wondering if you should brainstorm the tagline a little more. Im not sure clean
really describes the products or the benefit of the end-user. For marketing, another individual
recommended that we emphasize what the product will do for the consumer, rather than just what the
product wont do (benefits, not just problems avoided).
Participants recommended that we more critically evaluate barriers to entry for the company. Future
extensions, such as investigating lead contamination in cosmetics and the degree to which these are
absorbed through the skin were also discussed. In terms of the presentation, evaluators recommended that
we consider how to present complex technical details in a way that connects it to the laypersons
understanding. Similarly, one participant said start with the sizzle, then describe research.
On the product, one person stated Please list the ingredients, a suggestion to consider during label
reconfiguration. Another said the top of the stick should be flat, not convex and recommended make
the formulation SLIGHTLY less waxy, make it a little more melty on the lips. Right now, its kind of
hard to get on your lips because of the convex shape and highish melting point. It felt pretty good once it
was on, but just a tiny bit too waxy.
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Questions raised during the session
There were two lines of questions, one around investment and one around marketing. Questions inherent
to the product image included What happens if, to this advantage, I go gluten free? What is the
advantage to not using preservatives? What ingredients in normal makeup contain gluten to persuade
gluten free person to not use past makeup and buy your makeup? Is there research that suggests this is
needed and at what level?
For marketing and presentation of the concept, participants asked Have you presented to a gluten free
audience? This is important to keep in mind for launching another beta-test in the future. At this stage, it
would be good to discuss how we may begin to develop partnerships with gluten free support groups in
the region.
Participants also suggested that we emphasize the unique benefits of our cross-disciplinary team.
Additionally, we need to further clarify how and where the product will be manufactured. During the
Question and Answer session, we were asked the size of the cosmetics industry in global sales. We
answered $74 billion based on prior reading, to the surprise of our audience. After consulting
Forbes.com, we found the correct figure is $230 billion.
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11.4 Five Month Implementation Schedule
March April May June July

Write Business Plan
Prototype Lip Balm
Design Website
Prototype Foundation & Eye Shadow
Raise Startup Capital
Lease & Furnish Office
Streamline Manufacturing
Launch
Sell to Initial Customers
Marketing Campaign
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11.5 Sample Web Content
This infographic is an example of the high-quality content which will attract users to our
website:
50 of 72
11.6 Interviews of Gluten-free Individuals
Abby Pherson
Abby Pherson is a junior biology major who was diagnosed with Celiac disease and Crohns disease
in January of 2011. Abby is asymptomatic externally. This means that she does not show symptoms,
but like all patients with Celiac disease, Abby follows a gluten-free diet to limit the adverse, internal
effects of consuming gluten. Abby says one of the hardest parts of being gluten-free is being
diagnosed later on in life, after I was used to breads and pastas. Now, my brain is focused on the
cants rather than the possibilities. Abby believes that greater awareness of Celiac disease among
consumers should be a priority. Many people see gluten-free as a diet, rather than as a have to.
Even still, Abby is encouraged by the growth in the gluten-free industry. Things are SO much
better today, whether it is more recipes or already made products. Abby follows blogs like Jules
Gluten Free and Better Batter, which are a source of articles and recipes for women with gluten
intolerance. Abby says that she regularly shares these links with her friends who also have Celiac
disease. Abby cites the website Pinterest as a source for information on new gluten free products.
There are lots of opportunities to be connected via the net.
Abby says one of the best parts of being gluten free is the chance to meet new people and to
appreciate food more. I realize that I have to be gluten free, that it is the right thing for my body. It
inspires me to think more about taking care of my body for the long term. Abby and fellow GCC
student Emily Topp are launching a gluten free support group on campus.
Elisa Angione
Elisa is a junior biology major who has never received an official diagnosis of Celiac disease from a
medical professional. Even still, she has a family history of gluten intolerance and does not believe a
test is worth the cost and thus lives gluten free. The hardest part of being gluten free is social. Food
brings people together, and it is hard not to be able to enjoy what everyone else enjoys, especially
coming from an Italian family. Going out to eat becomes more of a burden than a good
experience. Like Abby, Elisa cites positive trends in the gluten free industry. People are starting to
become more aware, and says her favorite gluten-conscious companies include names like
Saladworks and Applebees.
Elisa credits Amilie Clean Cosmetics with raising her awareness of the presence of gluten in personal
care products. Because of Amilie Clean Cosmetics, I am thinking more about gluten in cosmetics. I
would like to know what ingredients are in my lipstick. Elisa says that gluten-free products that the
Celiac community would appreciate include lipstick, hand cream, toothpaste and mouthwash.
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Emily Topp
Emily is a junior Accounting major who has been diagnosed with Celiac since the beginning of
college. Emily says one of the hardest aspects of handling Celiac disease is that ingredients are not
often labeled well. I hate the lack of labeling in drugs, Emily said. I have to have my pharmacist
check every ingredient. Emily says the gluten-free diet is what its follower make of it and that
nutritional deficiencies can easily be overcome with careful planning. What is gluten free? For some
people, it may be fritos and coco cola. For others, it could be spinach and hummus. It is what you
make of it.
Emily is frustrated by the hype of the gluten free diet and looks forward to greater awareness of
consumers in the future. People often confuse the gluten free diet with the South Beach diet. I will
be glad when the hype dies down. Celebrities promote the gluten-free diet as the next best cure for
weight loss or promise of good health, but their facts are not always right. It is easy for people to get
confused.
To help address this disparity, Emily has started a Celiac support group at Grove City College with
fellow student Abby Pherson. Contamination is a big problem for students with Celiac disease and
the group plans to address the problems caused by contamination of cafeteria food. 5
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11.7 Monthly Balance Sheets
Amilie Clean Cosmetics - Pro Forma Balance Sheet - Year One
Starting Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar A
s:
sh Equivalents 16,950 9,619 8,879 8,668 8,434 7,870 7,463 7,268 7,324 8,410 10,054
ceivable 0 2,867 3,703 4,141 4,619 5,575 6,530 7,406 8,282 8,203 7,327
550 901 1,007 1,124 1,356 1,588 1,802 2,015 1,995 1,782 1,763
Assets 17,500 13,387 13,589 13,933 14,409 15,033 15,795 16,689 17,601 18,395 19,144
estments:
ant, and equipment 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500
d depreciation 0 677 1,354 2,031 2,708 3,385 4,062 4,739 5,416 6,093 6,770
32,500 31,823 31,146 30,469 29,792 29,115 28,438 27,761 27,084 26,407 25,730
m Investments: 32,500 31,823 31,146 30,469 29,792 29,115 28,438 27,761 27,084 26,407 25,730
50,000 45,210 44,735 44,402 44,201 44,148 44,233 44,450 44,685 44,802 44,874
EQUITY
ties:
ayable 0 873 954 1,065 1,240 1,472 1,695 1,908 2,005 1,889 1,772
dit -
Liabilities 0 873 954 1065 1240 1472 1695 1908 2005 1889 1772
bilities:
debt
m Liabilities: 0 0 0 0 0
s: 0 873 954 1065 1240 1472 1695 1908 2005 1889 1772
ital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
arnings -5,663 -6,219 -6,663 -7,039 -7,324 -7,462 -7,458 -7,320 -7,087 -6,899
50,000 44,337 43,781 43,337 42,961 42,676 42,538 42,542 42,680 42,913 43,102
s & Equity 50,000 45,210 44,735 44,402 44,201 44,148 44,233 44,450 44,685 44,802 44,874
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Amilie Clean Cosmetics - Pro Forma Balance Sheet - Year Two
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Equivalents 14,681 14,977 14,922 15,103 15,154 15,834 16,897 19,235 21,269 22,919 24,350 23,872
vable 2,110 2,110 2,285 2,637 3,164 3,692 4,043 3,868 3,340 2,989 2,637 3,129
2,110 2,110 2,461 2,813 3,516 3,868 4,219 3,516 3,164 2,813 2,461 3,797
sets 18,901 19,197 19,668 20,553 21,834 23,394 25,159 26,619 27,773 28,721 29,448 30,798
ments:
and equipment 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500
epreciation 8,801 9,478 10,155 10,832 11,509 12,186 12,863 13,540 14,217 14,894 15,571 16,248
23,699 23,022 22,345 21,668 20,991 20,314 19,637 18,960 18,283 17,606 16,929 16,252
nvestments: 23,699 23,022 22,345 21,668 20,991 20,314 19,637 18,960 18,283 17,606 16,929 16,252
42,600 42,219 42,013 42,221 42,825 43,708 44,796 45,579 46,056 46,327 46,377 47,050
QUITY
s:
ble 2,110 2,110 2,285 2,637 3,164 3,692 4,043 3,868 3,340 2,989 2,637 3,129
bilities 2110 2110 2285 2637 3164 3692 4043 3868 3340 2989 2637 3129
ties:
Liabilities: 0 0 0 0 0
2110 2110 2285 2637 3164 3692 4043 3868 3340 2989 2637 3129
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
ngs -9,510 -9,891 -10,272 -10,416 -10,339 -9,985 -9,247 -8,289 -7,284 -6,663 -6,261 -6,079
40,490 40,109 39,728 39,584 39,661 40,016 40,753 41,711 42,716 43,338 43,740 43,921
Equity 42,600 42,219 42,013 42,221 42,825 43,708 44,796 45,579 46,056 46,327 46,377 47,050
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Amilie Clean Cosmetics - Pro Forma Balance Sheet - Year Three
ASSETS
Current Assets:
Cash & Cash Equivalents 6,972 5,979 4,670 1,586 -539 -3,026 -1,006 3,236 14,299 20,858 26,141 29,007
Accounts receivable 15,611 15,611 15,611 18,213 20,814 26,018 28,620 31,222 26,018 23,416 20,814 18,213
Inventory 3,797 3,797 4,430 5,063 6,329 6,962 7,594 6,329 5,696 5,063 4,430 6,076
Total Current Assets 26,380 25,387 24,711 24,862 26,604 29,954 35,208 40,787 46,013 49,337 51,385 53,296
Long-term Investments:
Property, plant, and equipment 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500
Accumulated depreciation 16,925 17,602 18,279 18,956 19,633 20,310 20,987 21,664 22,341 23,018 23,695 24,372
Net: 15,575 14,898 14,221 13,544 12,867 12,190 11,513 10,836 10,159 9,482 8,805 8,128
Total Long-term Investments: 15,575 14,898 14,221 13,544 12,867 12,190 11,513 10,836 10,159 9,482 8,805 8,128
Total Assets: 41,955 40,285 38,932 38,406 39,471 42,144 46,721 51,623 56,172 58,819 60,190 61,424
LIABILITIES & EQUITY
Current Liabilities:
Accounts payable 3,797 3,797 4,114 4,747 5,696 6,645 7,278 6,962 6,012 5,379 4,747 5,253
Line of Credit
Total Current Liabilities 3797 3797 4114 4747 5696 6645 7278 6962 6012 5379 4747 5253
Long-term Liabilities:
Long-term debt
Total Long-term Liabilities: 0 0 0 0 0
Total Liabilities: 3797 3797 4114 4747 5696 6645 7278 6962 6012 5379 4747 5253
Equity:
Paid-in Capital 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Retained Earnings -11,842 -13,512 -15,182 -16,341 -16,225 -14,501 -10,557 -5,339 160 3,440 5,443 6,171
Total Equity: 38,158 36,488 34,818 33,659 33,775 35,499 39,443 44,661 50,160 53,440 55,443 56,171
Total liabilities & Equity 41,955 40,285 38,932 38,406 39,471 42,144 46,721 51,623 56,172 58,819 60,190 61,424
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11.8 Monthly Cash Flow Statements
Amilie Clean Cosmetics Pro Forma Cash Flow Statement - Year One
Net Income ($5,663) ($556) ($445) ($376) ($285) ($138) $4 $138 $233 $189 $88 $44
Add:
Decreases in Non-cash Current Assets
Accounts Receivable -2,867 -836 -438 -478 -956 -955 -876 -876 79 876 80 876
Inventory -351 -106 -117 -232 -232 -214 -213 20 213 19 213 -560
Accounts Payable 873 81 111 175 232 223 213 97 -116 -117 -116 174
Depreciation 677 677 677 677 677 677 677 677 677 677 677 677
Cash Generated by Operations: ($7,331) ($740) ($212) ($234) ($564) ($407) ($195) $56 $1,086 $1,644 $942 $1,211
Purchase of Long-term investments
Cash Generated by Investing
Line of Credit
Cash Generated by Financing
Net Increase in Cash ($7,331) ($740) ($212) ($234) ($564) ($407) ($195) $56 $1,086 $1,644 $942 $1,211
Cash & Cash Equivalents at Beginning of
16,950 9,619 8,879 8,668 8,434 7,870 7,463 7,268 7,324 8,410 10,054 10,995
Month
Cash & Cash Equivalents at End of Month $9,619 $8,879 $8,668 $8,434 $7,870 $7,463 $7,268 $7,324 $8,410 $10,054 $10,995 $12,206
Free Cash Flow ($7,331) ($740) ($212) ($234) ($564) ($407) ($195) $56 $1,086 $1,644 $942 $1,211
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Amilie Clean Cosmetics - Pro Forma Cash Flow Statement - Year Two
Net Income ($2,743) ($381) ($381) ($144) $77 $355 $738 $958 $1,005 $622 $402 $181
Add:
Decreases in Non-cash Current
Assets
Accounts
4,261 0 -175 -352 -527 -528 -351 175 528 351 352 -492
Receivable
Inventory 0 0 -351 -352 -703 -352 -351 703 352 351 352 -1,336
Accounts Payable 280 0 175 352 527 528 351 -175 -528 -351 -352 492
Depreciation 677 677 677 677 677 677 677 677 677 677 677 677
Cash Generated by Operations: $2,476 $296 ($55) $181 $51 $680 $1,064 $2,338 $2,034 $1,650 $1,431 ($478)
Purchase of Long-term
investments
Line of Credit
Net Increase in Cash $2,476 $296 ($55) $181 $51 $680 $1,064 $2,338 $2,034 $1,650 $1,431 ($478)
Cash & Cash Equivalents at
12,206 14,681 14,977 14,922 15,103 15,154 15,834 16,897 19,235 21,269 22,919 24,350
Beginning of Month
Cash & Cash Equivalents at End of
$14,681 $14,977 $14,922 $15,103 $15,154 $15,834 $16,897 $19,235 $21,269 $22,919 $24,350 $23,872
Month
Free Cash Flow $2,476 $296 ($55) $181 $51 $680 $1,064 $2,338 $2,034 $1,650 $1,431 ($478)
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Amilie Clean Cosmetics - Pro Forma Cash Flow Statement - Year Three
Net Income ($5,763) ($1,670) ($1,670) ($1,159) $116 $1,724 $3,944 $5,218 $5,499 $3,280 $2,003 $728
Add:
Decreases in Non-cash Current
Assets
Accounts Receivable -12,482 0 0 -2,602 -2,601 -5,204 -2,602 -2,602 5,204 2,602 2,602 2,601
Inventory 0 0 -633 -633 -1,266 -633 -632 1,265 633 633 633 -1,646
Accounts Payable 668 0 317 633 949 949 633 -316 -950 -633 -632 506
Depreciation 677 677 677 677 677 677 677 677 677 677 677 677
Cash Generated by Operations: ($16,900) ($993) ($1,309) ($3,084) ($2,125) ($2,487) $2,020 $4,242 $11,063 $6,559 $5,283 $2,866
Purchase of Long-term investments
Line of Credit
Net Increase in Cash ($16,900) ($993) ($1,309) ($3,084) ($2,125) ($2,487) $2,020 $4,242 $11,063 $6,559 $5,283 $2,866
Cash & Cash Equivalents at
23,872 6,972 5,979 4,670 1,586 -539 -3,026 -1,006 3,236 14,299 20,858 26,141
Beginning of Month
Cash & Cash Equivalents at End of
$6,972 $5,979 $4,670 $1,586 ($539) ($3,026) ($1,006) $3,236 $14,299 $20,858 $26,141 $29,007
Month
Free Cash Flow ($16,900) ($993) ($1,309) ($3,084) ($2,125) ($2,487) $2,020 $4,242 $11,063 $6,559 $5,283 $2,866
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11.9 Monthly Operating Schedules
Sales Schedule Year One
Starting Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Sales Forecast 4% 5% 6% 6% 8% 9% 10% 11% 11% 10% 10% 9%

3874 5004 5596 6242 7533 8825 10009 11192 11085 9901 9793 8610
Online Sales 291 375 420 468 565 662 751 839 831 743 735 646
Wholesale
Credit Sales, 80% 2,867 3,703 4,141 4,619 5,575 6,530 7,406 8,282 8,203 7,327 7,247 6,371
Cash Sales 20% 717 926 1,035 1,155 1,394 1,633 1,852 2,071 2,051 1,832 1,812 1,593
Cash Collections
Cash sales this period 1,007 1,301 1,455 1,623 1,959 2,294 2,602 2,910 2,882 2,574 2,546 2,238
Last period's credit sales 0 2,867 3,703 4,141 4,619 5,575 6,530 7,406 8,282 8,203 7,327 7,247
Total Collections - 1,007 4,168 5,158 5,764 6,578 7,869 9,133 10,316 11,164 10,777 9,873 9,486
Purchases Schedule
Starting June July August September October November December January February March April May
Purchases
Ending Inventory 550 901 1007 1124 1356 1588 1802 2015 1995 1782 1763 1550 2110
Cost of Goods Sold 1395 1802 2015 2247 2712 3177 3603 4029 3991 3564 3526 3099
Total Needed 550 2296 2809 3138 3603 4300 4978 5618 6025 5773 5327 5075 5209
Beginning Inventory 0 -550 -901 -1007 -1124 -1356 -1588 -1802 -2015 -1995 -1782 -1763 -1550
Purchases 550 1746 1908 2131 2480 2944 3390 3816 4010 3777 3545 3313 3659
Purchase Disbursements
50% of last month's purchases 0 275 873 954 1065 1240 1472 1695 1908 2005 1889 1772 1656
50% of this month's purchases 275 873 954 1065 1240 1472 1695 1908 2005 1889 1772 1656 1830
Disbursements for purchases 275 1148 1827 2019 2305 2712 3167 3603 3913 3894 3661 3429 3486
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Sales Schedule Year Two
Sales Forecast 6% 6% 6% 7% 8% 10% 11% 12% 10% 9% 8% 7%

11720 11720 11720 13673 15626 19533 21486 23440 19533 17580 15626 13673
Online Sales 879 879 879 1025 1172 1465 1611 1758 1465 1318 1172 1025
Wholesale
Credit Sales, 80% 8,673 8,673 8,673 10,118 11,564 14,454 15,900 17,345 14,454 13,009 11,564 10,118
Cash Sales 20% 2,168 2,168 2,168 2,530 2,891 3,614 3,975 4,336 3,614 3,252 2,891 2,530
Cash Collections
Last period's credit sales 6,371 8,673 8,673 8,673 10,118 11,564 14,454 15,900 17,345 14,454 13,009 11,564
Total Collections 9,418 11,720 11,720 12,228 14,181 16,642 20,041 21,994 22,424 19,025 17,072 15,119
Purchases Schedule
Purchases
Ending Inventory 2110 2110 2461 2813 3516 3868 4219 3516 3164 2813 2461 3797
Total Needed 6329 6329 6680 7735 9141 10899 11954 11954 10196 9141 8087 8720
Beginning Inventory -2110 -2110 -2110 -2461 -2813 -3516 -3868 -4219 -3516 -3164 -2813 -2461
Purchases 4219 4219 4571 5274 6329 7383 8087 7735 6680 5977 5274 6258
50% of last month's purchases 1830 2110 2110 2285 2637 3164 3692 4043 3868 3340 2989 2637
50% of this month's purchases 2110 2110 2285 2637 3164 3692 4043 3868 3340 2989 2637 3129
Disbursements for purchases 3939 4219 4395 4922 5801 6856 7735 7911 7208 6329 5626 5766
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Sales Schedule Year Three
Sales Forecast 6% 6% 6% 7% 8% 10% 11% 12% 10% 9% 8% 7%

21096 21096 21096 24612 28128 35159 38675 42191 35159 31643 28128 24612
Online Sales 1582 1582 1582 1846 2110 2637 2901 3164 2637 2373 2110 1846
Wholesale
Credit Sales, 80% 15,611 15,611 15,611 18,213 20,814 26,018 28,620 31,222 26,018 23,416 20,814 18,213
Cash Sales 20% 3,903 3,903 3,903 4,553 5,204 6,504 7,155 7,805 6,504 5,854 5,204 4,553
Cash Collections
Purchases Schedule
Purchases
Total Needed 11392 11392 12025 13923 16455 19619 21518 21518 18353 16455 14556 14936
Purchases 7594 7594 8227 9493 11392 13290 14556 13923 12025 10759 9493 10506
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Sales Schedule Year Four
Sales Forecast 6% 6% 6% 7% 8% 10% 11% 12% 10% 9% 8% 7%

33753 33753 33753 39379 45004 56255 61881 67506 56255 50630 45004 39379
Online Sales 2531 2531 2531 2953 3375 4219 4641 5063 4219 3797 3375 2953
Wholesale
Credit Sales, 80% 24,977 24,977 24,977 29,140 33,303 41,629 45,792 49,954 41,629 37,466 33,303 29,140
Cash Sales 20% 6,244 6,244 6,244 7,285 8,326 10,407 11,448 12,489 10,407 9,366 8,326 7,285
Cash Collections
Purchases Schedule
Purchases
Cost of Good Sold 12151 12151 12151 14176 16201 20252 22277 24302 20252 18227 16201 14176
Total Needed 18227 18227 19239 22277 26327 31390 34428 34428 29365 26327 23290 22682
Purchases 12151 12151 13164 15189 18227 21264 23290 22277 19239 17214 15189 15594
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Sales Schedule Year Five
Sales Forecast 6% 6% 6% 7% 8% 10% 11% 12% 10% 9% 8% 7%

47254 47254 47254 55130 63006 78757 86633 94508 78757 70881 63006 55130
Online Sales 3544 3544 3544 4135 4725 5907 6497 7088 5907 5316 4725 4135
Wholesale
Credit Sales, 80% 34,968 34,968 34,968 40,796 46,624 58,280 64,108 69,936 58,280 52,452 46,624 40,796
Cash Sales 20% 8,742 8,742 8,742 10,199 11,656 14,570 16,027 17,484 14,570 13,113 11,656 10,199
Cash Collections
Purchases Schedule
Purchases
Cost of Good Sold 17012 17012 17012 19847 22682 28353 31188 34023 28353 25517 22682 19847
Total Needed 25517 25517 26935 31188 36858 43946 48199 48199 41111 36858 32605 31755
Purchases 17012 17012 18429 21264 25517 29770 32605 31188 26935 24100 21264 21831
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11.10 Monthly Budgets
Year One
Projected Budget June July August September October November December January February March April May
Beginning Cash Balance 16,950 9,906 9,065 8,470 7,857 7,197 6,655 6,236 6,032 6,221 6,472 6,554
Cash Receipts:
Collections from customers 1,007 4,168 5,158 5,764 6,578 7,869 9,133 10,316 11,164 10,777 9,873 9,486
Total cash available before financing 17,957 14,074 14,223 14,234 14,435 15,066 15,788 16,552 17,196 16,998 16,345 16,040
Cash Disbursements:
Inventory Purchase 1148 1827 2019 2305 2712 3167 3603 3913 3894 3661 3429 3486
Salaries 252 1042 1290 1441 1645 1967 2283 2579 2791 2694 2468 2372
Payroll Taxes (15%) 30 125 155 173 197 236 274 309 335 323 296 285
Shipping 98 405 501 560 640 765 888 1,003 1,085 1,048 960 922
Rent
Marketing & Promotions 151 625 774 865 987 1,180 1,370 1,547 1,675 1,617 1,481 1,423
Office Supplies 50 50 50 50 50 50 50 50 50 50 50 50
Legal & Accounting Services 3,416 416 416 416 416 416 416 416 416 416 416 416
Licenses and Permits 1650 - - - - - - - - - - -
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Line of Credit 100
Miscellaneous expenses 762 125 155 173 197 236 274 309 335 323 296 285
Total disbursements: 8,051 5,009 5,754 6,377 7,238 8,411 9,552 10,520 10,975 10,526 9,790 9,633
Excess of Total Cash 9,906 9,065 8,470 7,857 7,197 6,655 6,236 6,032 6,221 6,472 6,554 6,408
Cash balance 9,906 9,065 8,470 7,857 7,197 6,655 6,236 6,032 6,221 6,472 6,554 6,408
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Year Two
Beginning Cash Balance 6,408 3,183 2,799 2,239 1,557 862 202 167 821 2,367 3,287 4,046
Cash Receipts:
Cash Disbursements:
Inventory Purchase 3,939 4,219 4,395 4,922 5,801 6,856 7,735 7,911 7,208 6,329 5,626 5,766
Salaries 2355 2930 2930 3057 3545 4161 5010 5499 5606 4756 4268 3780
Payroll Taxes (15%) 463 532 532 367 425 499 601 660 673 571 512 454
Shipping 916 1,139 1,139 1,189 1,379 1,618 1,948 2,138 2,180 1,850 1,660 1,470
Rent
Office Supplies 113 113 113 113 113 113 113 113 113 113 113 113
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Line of Credit 100
Miscellaneous expenses 283 352 352 367 425 499 601 660 673 571 512 454
Excess of Total Cash 3,183 2,799 2,239 1,557 862 202 167 821 2,367 3,287 4,046 3,799
Cash balance 3,183 2,799 2,239 1,557 862 202 167 821 2,367 3,287 4,046 3,799
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Year Three
Beginning Cash Balance 3,799 -3,114 -4,790 -6,783 -8,911 -10,187 -10,292 -7,740 -3,071 3,401 7,217 9,862
Cash Receipts:
Cash Disbursements:
Salaries 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666 6,666
Payroll Taxes (15%) 648 813 813 660 766 899 1,082 1,188 1,211 1,027 922 816
Shipping 1,517 2,051 2,051 2,140 2,482 2,912 3,507 3,849 3,924 3,329 2,988 2,646
Rent
Office Supplies 202 202 202 202 202 202 202 202 202 202 202 202
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Line of Credit 100
Miscellaneous expenses 468 633 633 660 766 899 1,082 1,188 1,211 1,027 922 816
Excess of Total Cash -3,114 -4,790 -6,783 -8,911 -10,187 -10,292 -7,740 -3,071 3,401 7,217 9,862 10,199
Cash balance -3,114 -4,790 -6,783 -8,911 -10,187 -10,292 -7,740 -3,071 3,401 7,217 9,862 10,199
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Year Four
Beginning Cash Balance 10,199 3,743 3,251 2,253 931 973 2,887 9,052 18,609 31,048 39,235 45,552
Cash Receipts:
Cash Disbursements:
Salaries 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Payroll Taxes (15%) 1,165 1,367 1,367 1,231 1,400 1,613 1,906 2,075 2,112 1,819 1,650 1,481
Shipping 2,624 3,282 3,282 3,424 3,971 4,660 5,611 6,158 6,279 5,327 4,780 4,233
Rent 333 333 333 333 333 333 333 333 333 333 333 333
Office Supplies 325 325 325 325 325 325 325 325 325 325 325 325
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Line of Credit 100
Miscellaneous expenses 810 1,013 1,013 1,056 1,225 1,438 1,732 1,900 1,937 1,644 1,475 1,306
Excess of Total Cash 3,743 3,251 2,253 931 973 2,887 9,052 18,609 31,048 39,235 45,552 48,782
Cash balance 3,743 3,251 2,253 931 973 2,887 9,052 18,609 31,048 39,235 45,552 48,782
67 of 72
Year Five
Beginning Cash Balance 48,782 44,993 46,633 47,565 47,970 50,287 55,225 66,113 81,748 101,420 115,142 126,243
Cash Receipts:
Cash Disbursements:
Salaries 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Payroll Taxes (15%) 1,598 1,773 1,773 1,654 1,890 2,188 2,599 2,835 2,887 2,476 2,240 2,004
Shipping 4,028 4,594 4,594 4,793 5,559 6,524 7,856 8,622 8,790 7,458 6,692 5,926
Rent 333 333 333 333 333 333 333 333 333 333 333 333
Office Supplies 457 457 457 457 457 457 457 457 457 457 457 457
Insurance 166 166 166 166 166 166 166 166 166 166 166 166
Line of Credit 100
Miscellaneous expenses 1,243 1,418 1,418 1,479 1,715 2,013 2,424 2,660 2,712 2,301 2,065 1,829
Excess of Total Cash 44,993 46,633 47,565 47,970 50,287 55,225 66,113 81,748 101,420 115,142 126,243 138,975
Cash balance 44,993 46,633 47,565 47,970 50,287 55,225 66,113 81,748 101,420 115,142 126,243 138,975
68 of 72
11.11 Seasonality
Here is an explanation of our projections of the seasonality of AmilieAmilie.
The chart below was downloaded from the Google Insights for Search Tool on March 10, 2012. It reflects normalized search demand data from
January 2009 to December 2011 on the search term makeup.
Seasonal Trends Evident
A quick rise and fall immediately after the New Year.

A small, steady rise during the final months of summer.
A major spike in October. This could be influenced by demand for Halloween makeup, but is most likely due to the changing season and
back to school time.
This chart shows the same data for the search term lip balm.
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Seasonality:
Lip Balm is most popular in the winter months, building up from October to a peak in January and then falling through the spring.
Slowest season is the middle of summer.
Finally, here is a chart for the search term eyeshadow.
70 of 72
Seasonality:
Slow season is in the middle of summer.

Peak in early January.
Based on this research, we conclude that Amilie Clean Cosmetics will experience:
Slow, gradual sales during the summer launch period.

Sustained growth starting in September and lasting through early January.
A steady decline in sales during the spring of 2013.
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11.12 Pricing Assumptions
Lip Balm
Organic Beeswax = $0.27 / ounce (55 pounds from JEdwards costs $240)
Organic Olive Oil = $0.05 / teaspoon (from Essential Wholesale & Labs, one gallon is
768 Teaspoons)
Organic Orange Extract = $0.37 / teaspoon (from Flavorganics, one ounce = 6
teaspoons)
10 tubes of lip balm contain 1 ounce wax, 12 tsp. olive oil, and 1.5 tsp. orange extract.
This means the ingredient cost per tube is: $0.15
Each tube costs 16 cents - http://www.elementsbathandbody.com/15-oz-Black-Lip-Tube-
WITH-CAP-pr-714.html
Add four cents to cover the label and ten cents to cover labor costs
Total cost for one tube of lip balm = $0.45
Mineral Foundation Costs
Although prototyping is incomplete, we will tentatively use the following recipe:
Ingredients/materials needed (makes 3 jars)
Phase I
8 tsp Micronized Titanium Dioxide
3 tsp Bismuth Oxychloride (may substitute Sericite Mica or Kaolin Clay)
4 tsp Zinc Oxide-Low Micron
1 tsp Magnesium Stearate
1/2 - 1 tsp Yellow Iron Oxide
1/16 tsp Brown Iron Oxide
Pinch of Red Iron Oxide
Phase II
1/4 tsp Jojoba Oil
Phase III
1 tsp. Sericite Mica - Matt Finish
Mix the ingredients from Phase I in your mortar and pestle or Magic Bullet, blending well. Slowly add the ingredients
from Phase II to the mix. Stir/blend until homogenous. Last, add the Phase III ingredient if you need more or less to
adjust the color tone.
Ingredient Costs:
Titanium Dioxide = $6.98 / pound (from Costal Scents)
Kaolin Clay = $2.99 / pound (from Costal Scents)
Zinc Oxide = $5.40 / pound (from Costal Scents)
Magnesium Stearate = $9.99 / pound (from Costal Scents)
Yellow Iron Oxide = $19.99 / pound (from Costal Scents)
Brown Iron Oxide = $11.99 / pound (from Costal Scents)
Red Iron Oxide = $11.99 / pound (from Costal Scents)
Organic Jojoba Oil = $1.36 / ounce (from Bulk Natural Oils)
Sericite Mica = $7.58 / pound (from Costal Scents)
72 of 72
Estimated Cost of One Batch:
$1.75 Titanium Dioxide
$0.75 Kaolin Clay
$1.35 Zinc Oxide
$1.00 Magnesium Stearate
$3.00 Oxides
$0.50 Jojoba Oil
$1.00 Sericite Mica
= $9.35 / 3 = $3.12
Jar costs $0.53 (http://www.coastalscents.com/make-your-own-1/packaging/jars/sj-r-20-

silver.html)
Add four cents to cover labeling and 25 cents to cover labor costs
Total Cost for one Foundation = $3.94
Eye Shadow Costs

Recipe makes 30 grams
Phase I (Base Powders)
3 Tblsps Micronized Titanium Dioxide

1 Tsps Magnesium Stearate
Phase II (Oil & Scent)
Tsp Jojoba Oil
Phase III (Color & Finish Look)
2+ Tsps of the iron oxide pigment color of your choice

(start with small amounts and build to achieve the desired shade)
2 Tsps Sericite Mica (pearl or matt or pearl flake)
Mix ingredients from Phase I in a large bowl or mortar. Slowly add the Phase III
ingredients and mix (homogenize) with the pestle being sure to blend the color into
the white powders. Choose the pearl sericite if you want a shimmer in your
shadow, or the matt sericite if you want low luster. A coffee grinder can also be
used, but please reserve it just for cosmetics.
Ingredient Costs:
Titanium Dioxide = $6.98 / pound (from Costal Scents)
Magnesium Stearate = $9.99 / pound (from Costal Scents)
Organic Jojoba Oil = $1.36 / ounce (from Bulk Natural Oils)
Sericite Mica = $7.58 / pound (from Costal Scents)
Iron Oxide Pigments (average) = $13.1 / pound (from Costal Scents)
Estimated Cost of One Batch:
$1.00 Titanium Dioxide
$1.50 Magnesium Stearate
$1.00 Jojoba Oil
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$2.50 Sericite Mica
$3.00 Oxides
= $9.00 / 3 = $3.00
The ingredients above will form a loose, colored powder. That powder will then be mixed with a
compound of jojoba oil and pressed firmly into a small compact case.
The 10 gram containers will cost $0.70 each (http://www.makingcosmetics.com/Lip-

Gloss-Eye-Shadow-Ct-Rica-2-p254.html )
Add four cents to cover labeling and 25 cents to cover labor costs
Total Cost for one Foundation = $3.99
i
Wholesale pricing modeled off of Burts Bees.
ii
iii
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Amilie Clean Cosmetics GCC Business Plan May 4th PDF

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Business Plan

Amilie Clean Cosmetics

Grove City Entrepreneurship

Upon request, this document is to be immediately returned to Sharon Seiter or

This is a business plan. It does not imply an offering of securities.

1. Executive Summary ............................................................................................................................ 7

7. Management Team and Company Structure ................................................................................. 31

Sharon Seiter, CEO

Rachel Brockhage, COO

2.1 Cosmetics Industry

Cosmetics Industry Segments

Hair tonics, including hair

Perfumes, toilet waters, and

12% Dentifrices, mouthwashes,

ranging from headaches and nausea to debilitating fatigue. Gluten exposure

3. Amilie Clean Cosmetics

3.2 Value Proposition

3.3 Barriers to Entry

3.4 Keys to Success

Gain distribution in gluten-free and natural grocery stores

1. Women have an intense need to feel beautiful. In our high-pressure culture of

Our target market is segmented into two subgroups:

Primary Target Market Secondary Target Market

Age 16-30 30-60

Gender23 Female Female

Family Single Married with 2-3 children

Affluence Upper-middle class Upper-middle class

Frequency of 3-6 months 3-6 months

Purchase Buy makeup for beauty Buy makeup for anti-aging

Other Media _ TV and print

Leisure Social events, health-related pursuits. Family-oriented, health

4.2 Market Research

4.3 Market Size and Trends

4.4 Estimated Market Share

2012 2013 2014

(20% annual growth)

Prominence of Gluten-free claim

5.2 Pricing Strategy

Lip Balm 0.15 oz.

Eye Shadow 0.1 oz.

Product Year One Year Two Year Three

Composite Net Profit Margin = 64%

Sales Cycle Direct to Consumer via Stores & Distributors

5.4 Promotions Mix

6.1 Operations Model

Direct Sales Web Marketing Consumer Events

6.2 Facilities and Equipment

Product Case Size Cases in $ Value Shelves

Year One Two Three Four Five

6.3 Development Status

1. High Profit 2. Simple 3. Widespread

Status: Prototyping & Testing

Status: Research & Development

Status: Research & Development

d. Product Improvement and New Products

6.4 Intellectual Property

7. Management Team and Company Structure

Rachel has research experience in clinical chemistry, nanotechnology and a background in

Manufacturing & Shipping

Marketing & Sales

7.2 Management Compensation and Ownership

Their monetary investment in the company is as follows:

Invested Committed Total