Sample Cosmetics Retail Store Business Plan

Do you need help starting a cosmetic line or retail shop? If YES, here is a sample cosmetic BUSINESS PLAN SAMPLE.

Do you have the mindset to start a cosmetics company but you are looking for guidance on how to go about it?

In this post, I will be sharing with you everything you will need to know about cosmetics and how to start a cosmetics company that might eventually become a success if you possess the entrepreneurial skill to manage a business.

The history of cosmetics spans at least 6000 years ago and it is present in almost every society on earth. Cosmetics can be described as a preparation applied to the body especially the face to improve its appearance. Cosmetics have been in use in our societies for a very long time.


Before I take you through how to start a cosmetics company, let me inform you that cosmetic products can be grouped as follows:

  • Cosmetics

There are various range of cosmetics and they include;

  • Concealer: This is used to hide under-eye circles and cover blemishes.
  • Foundation: This is used to even skin tone.
  • Blush: This adds color to the cheeks.
  • Mascara: This defines the eye and enhances lashes.
  • Lipstick: This adds color to the lips.
  • Eye Shadow: This adds depth to the eyes.

Other cosmetics include Highlighter, contour, primer, lip liner, bronzed, etc.

  • Personal Care Products

These include cleansing pads, colognes, cotton swabs, cotton pads, deodorants, facial tissue, shaving cream, moisturizers, toothpaste, wet wipes, etc.

  • Hair Products

Hair products include hair cream, shampoo, conditioner, hair mousse, hair color, and a host of other products.

  • Hand and Nail Products

These products include hand protectors, nail and cuticle oil, hand cream, conditioning hand wash, hand sanitizer, nail colors, nail polish, nail shiner, and others.

Just like every other industry, the cosmetic industry has different departments whose aim ranges from producing to delivering cosmetic products to their consumers. To start a cosmetic industry, you will need to choose the department you will want to specialize in.

Here are the various departments:

  • Production: This department performs duties that range from production planning and scheduling to control and supervision of the production workforce to managing product quality.
  • Research and Development: This is concerned with developing new products or processes and improving existing products or processes.
  • Purchasing: This department is concerned with acquiring goods and services for use by the organization.
  • Marketing: This department is concerned with identifying and satisfying customer needs at the right price.
  • Human Resource: This department is concerned with all aspects of employee relations and welfare.

These various departments work hand in hand to produce and deliver cosmetic products to consumers.

How to Start a Cosmetics Company

Starting a cosmetic company does not necessarily entail the immediate production of cosmetic products. One can concentrate on one aspect/department of the industry, grow in it, and then expand to other aspects.

With the modern trends in fashion and beauty in our world today, cosmetics have become an essential need in the lives of individuals. People are more aware of cosmetic products and so, it is right to say that these products, most times, market themselves. The question to look good and smell good has turned the cosmetic industry into a million-dollar industry.

Marketing of a known brand of cosmetics is a good step towards earning from the cosmetic industry. There are various known and trusted brands like L’Oreal, Mary Kay, etc. These products have stood the test of time and have millions of consumers.

Selling these products either in wholesale or retail quantities is also very profitable and another way to start your own cosmetics company as a wholesaler or retailer.

Currently, there is a demand for indigenous organic products. This is can be associated with many reasons for which one is that most of the foreign cosmetic products are not suitable for some skin types, hair types, and personal hygiene needs due to differences in the climate.

Most of these products are produced in countries with climates different from others and so are not suitable for consumers in hotter regions of the world. This is one reason why you need to start a cosmetic company in your country so that your people can happily patronize your products.

Another reason to start a cosmetic company is that the high cost of products has made consumers seek cheaper substitutes and alternatives. Apart from the high cost, some of these imported products are not readily available and can be scary.

So, whatever department of the cosmetic industry you want to venture into, you will need the following;

  • Your cosmetics shop business name must be registered with the appropriate authority.
  • A well-detailed
  • A suitable location/office where you will be operating from.
  • Capital—but, if you don’t have the needed capital, you can go seek investors or loan from banks or any financial institutions using your business plan.
  • A good marketing plan for promoting your products and converting leads to customers.

A feasibility study and research on existing cosmetic products and brands will be a good step to take towards starting a cosmetic company. The gap that exists amongst the existing cosmetic products should be explored. Depending on the interest of the entrepreneur and the available resources, a choice will have to be made between the marketing of already existing brands and producing a new line of cosmetic products.

The cosmetic industry is very profitable especially in Africa where a large percentage of the population are young women with the need to enhance their appearance. Make the decision today, start a cosmetic company now!


The cosmetics business is one that meets people’s needs daily. This makes it a very profitable one.

To run this business, not much is needed in terms of finances and skills. However, the skills that are needed in running a cosmetics business can be learned easily and by absolutely anyone.

With just the right amount of skill and determination, anyone can make it in the cosmetics business.

Are you interested in starting a cosmetics store business? Then you will need a business plan. This is because running a business successfully without having a business plan is near impossible.

Well, this article contains a cosmetics store business plan sample business.


Here is a sample business plan for starting a cosmetics product retail store.

BUSINESS NAME: Perfect Appearance Cosmetics Company

  • Executive Summary
  • Our Products and Services
  • Vision Statement
  • Mission Statement
  • Business Structure
  • Market Analysis
  • Financial Plan
  • Competitive Advantage
  • Conclusion

Executive Summary

The perfect appearance cosmetics company is a beauty store that will be based in the central business district of Los-Angeles. After a few weeks of searching, we at perfect appearance have located a perfect location for siting our business. From this location, we will expand to other parts of Los Angeles as well as the entire United States

Our Products and Services

We at perfection appearance cosmetics company are basically into the sales of cosmetics products, toiletries, perfumes, grooming products, etc. Our major aim of starting a cosmetics company is to take advantage of the unending demands for cosmetics products by people.

However, that is not all we are interested in. We are interested in making sure that the needed and the right cosmetics products are made available to people at the right price and at the right time.

Vision Statement

As a cosmetics company, our vision is to become the biggest cosmetics store in the entire Los Angeles central business district.

Mission Statement

Our mission is to establish a cosmetics company that will dominate Los Angeles and other parts of the United States. We aim to become a cosmetics store that is always stocked with the needed cosmetics by our ever-increasing clients

Business Structure

As a new business, we know that success in the cosmetics industry is largely dependent on the venue in which the cosmetics store is located. This is why we have taken out time to situate our business in a certain part of town.

The truth remains that we are looking to build a business that will last the test of time and also stand shoulder to shoulder with the more popular and established cosmetics brands. We intend to create a team that is not just interested in making profits but also in the satisfaction of our clients

Market Analysis
Market Trend

The cosmetics industry is perhaps as old as human civilization. This is one reason cosmetics are easily marketable. The high demand for cosmetics products also explains the presence of cosmetics stores scattered throughout the country.

Target Market

The cosmetics industry is perhaps one of the few industries where there is the least amount of competition. This is because most people in the world make use of cosmetics. Putting this very simple fact into consideration, we have.

After spending so much time on our research, we have come up with a target market to sell our products to.
The group of people that top the list of our target market are;

  • Tourists
  • Students
  • People involved in sports
  • Pregnant women
  • Engaged ladies
  • Business executives

Sales and Marketing strategy

Our sales and marketing strategy include;

  • Partnering with popular salons in every neighborhood
  • Selling at a reduced price
  • Good customer service

Financial Plan

We understand that starting a cosmetics company does not require much capital. However, we are not looking to start a cosmetics business on a small scale. To start a cosmetics business on a big scale, we will need $10,000. We have been able to raise 50% of this amount. The remaining 50% will be gotten from the bank.

Competitive Advantage

Over time, the cosmetics industry has become very highly competitive. As a result of this, it is quite difficult for individuals that are not very creative to succeed in this business. We are not ignorant of the high level of competition that is existent in this industry.

We at Perfection Cosmetics Company are starting a cosmetics business that will compete favorably with already established firms in the cosmetics industry. We intend to achieve this by building a team of highly skilled and creative individuals.

READ: Sample Beauty Supply Store Startup Plan


The business plan above is a business plan sample for the cosmetics company, a Perfection cosmetics company. The company will be situated in Los Angeles. Also, the funds that are needed to start and run this company will be gotten from personal savings as well as from the bank.


Executive Summary

Beauty Shades is a cosmetic business to be located in Cheyenne, Wyoming. We specialize in the manufacture of a variety of cosmetics.

Although we are located in Wyoming, we have a nationalistic outlook in marketing our products. These consist of high-quality nail care accessories and polishes, facials such as mascara, powders, multi-flavored lipsticks and glosses, sunscreens, and eyeshades among several others.

We also manufacture colognes and perfumes too. We have come at a time when people seek a balance between quality and affordability. By making both options available, we are paying attention to a large market segment that has often been overlooked. We are not coming into the industry to make the numbers. Instead, we have a strong growth drive to be among the best in the industry.

  • Our Products and Services

At Beauty Shades, we have several products which are of the best quality. These include colognes and perfumes, sunscreens, eyeshades, multi-flavored lipsticks and glosses, and powders. Our other cosmetic products include pedicure and manicure accessories including nail polishes as well as mascaras.

We also offer consultancy services as well as cosmetic application courses for interested persons.

  • Vision Statement

Our cosmetic company is a new entrant into the industry but our experienced team is well equipped to guide our business to stability and growth. We seek to eventually expand our production to cater to the demand across several states.

  • Mission Statement

We are a cosmetic company determined to make a difference. This is through the manufacture of high-quality products that are also affordable. Through this, we are meeting the needs of a neglected segment of the market who have always waited for this time

  • Financing

Adequate financing is crucial to our survival as a business. We are applying for loans from a bank to the tune of $600,000.00. This would be used to purchase equipment and production supplies. Of this amount, 20% will be kept as running costs. This loan has a monthly interest rate of 2%. The principal sum will be due for payment in 5 years.

  • SWOT Analysis

Our performance as a business depends on how we wade through our challenges and if we exploit our opportunities properly. This SWOT analysis carried out by experts on our business show the following;

  • Strengths

Our strengths consist of our capabilities. On our team, we have seasoned professionals with combined years of experience amounting to 70. These are people who have previously worked for major cosmetic brands. Also, our cosmetic factory will be located in Cheyenne. This is one of America’s top destinations for skilled labor and lower production costs.

  • Weakness

Our cosmetics company is small. Currently, we are not large enough to make our products significant enough to be noticed across different states. However, we are working on eventually expanding our business to cater to a large market.

  • Opportunity

We have identified an often overlooked segment of the market that is significant enough to focus on. This is a great opportunity for growth as we will satisfy this target market with quality and affordable cosmetics.

  • Threat

A threat to our operations will arise when there’s a global economic meltdown. This will mess with demand and supply due to a lack of credit facilities which makes commerce and manufacture possible.

  • Sales Projection

Our target market is big enough to enable us to consistently attain steady growth levels. To have an idea on the level of sales expected for 3 years, we have arrived at projections that reveal significant gains in profitability as shown below;

  • First Financial Year.          $250,000.00
  • Second Financial Year.        $570,000.00
  • Third Financial Year.             $890,000.00


  • Competitive Advantage

While most cosmetic companies focus mainly on the high paying segment of the market, we have focused on a larger market that craves quality, yet affordable cosmetic products.

In the end, this will make us much more profitable than our peers. This advantage is glaring.

  • Target Market

Our primary target markets are ladies who love to wear quality cosmetics. In narrowing down a bit more, we focus on those who seek both affordable and quality cosmetic products. This group constitutes a greater share of the market.

By meeting their needs, we will capture a substantial part of the market.

  • Sales and Marketing Strategy

While producing quality cosmetic products, having a ready market to distribute these is also as important.

We have set up a marketing department that will co-ordinate all marketing activities. These would include word of mouth or referral system, ads on beauty magazines, and soap operas.

We will also make use of social media to disseminate information.

Our cosmetic company business plan sample contains the most basic information about starting the business. You can use this as a template when writing yours. This is just an imaginary plan and represents no real business. It should be used as such.

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