Professional Documents
Culture Documents
2018-2019
Our business opportunity is that many people use makeup and often use makeup removers, many
companies aren’t environmentally friendly, and there aren’t many products that are targeted towards
small detailed areas. We chose to make this product because we know that makeup is an important part
in many people’s lives but a majority of makeup removers/products don’t degrade easily and are
continuously harming the condition of our home, planet Earth. We realize that we are the younger
generation and are responsible for the future of our home and because of this we are committed to
making a change no matter how small. Another reason we created Nature-ly is we wanted to help
people around the world feel confident while promoting the use of natural products. Confidence is an
important key to a person’s happiness and we want our customers to be confident in their everyday
lives even if that confidence can come from something as small as having a tool that helps touch up
their makeups and wounds. The main problems we are solving is eyeliner/makeup is messy, many
companies are not environmentally friendly, and some makeup removers are messy to use and can’t be
used for multiple things. Our business solves this problem because we are providing a tool that can
target detailed areas such as the eyes or small cuts, is environmentally friendly and can be used for
many things, not just makeup removers. To prove the need and trend for sustainable products, we did
some research and found that 66 percent of people are willing to spend more on sustainable products.
e are a manufacturing business and we chose this business type because we wanted to build our
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products ourselves, allowing us to choose the materials we use. This fits with what we wanted for our
business because we envisioned our business being environmentally friendly and being able to make
our products ourselves lets us make sure that all materials used are sustainable.
1.3
Type of Business
Ownership
NFTE Written Business Plan
2018-2019
The business ownership type we selected for our business is a partnership. We chose to be a
partnership because we thought that having two people work together, it would be easier to share the
work and split the responsibility. It also lets us share our ideas and see different scenarios/problems
from different perspectives. It makes the most sense for our business because our product has multiple
characteristics that one person would have a hard time fulfilling (the science behind the product, the
creative design, packaging,etc.). The pros of being a partnership are that we will share the
responsibility and expenses with each other and will be able to share ideas with each other. The cons of
being a partnership is we will have to split the profit and if we come to disagreements that we can’t
resolve, the business may be at risk.
ur mission statement is to build the confidence and health of our consumers starting with
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sustainable products that will lessen the burden of pollution. Our company provides a product that uses
materials that are sustainable and biodegradable. The product that we created is a cotton swab infused
with a substance that removes makeup and can heal wounds. We exist because we realized how big of
a problem pollution is and we also know how messy makeup can be, that’s why we created a product
that could tackle both of those problems.
Our business is socially responsible because we use materials that are environmentally friendly,
ensuring that every time a person uses our product, we don’t have to worry about it being damaging to
the Earth and adding onto the pollution we as a society have created. This directly ties to our mission
statement because in our mission statement, we want to build the confidence of our customers and
lessen the pollution on earth. By using environmentally friendly materials, we are not contributing to
the pollution and instead are trying to encourage our customers to use environmentally friendly
products in their everyday lives. We try to build the confidence of our customers because by creating a
tool that helps with small makeup touch ups, it’ll help people feel confident because if people have the
right tool for removing messy makeup, they’ll be more confident in how they look. It helps build the
health of our customers because all materials used in this product are natural and there are no
chemicals. We plan to give back to local business owners/entrepreneurs by using materials from local
businesses.
Our personal qualifications are that we both have experience in creating products using materials
that can be found locally, we have both personally run our own business before, and we have taken a
three-year course that has taught us about marketing and selling products. These qualifications make us
qualified because by having these skills and background we have an idea of what to do and how to sell
a product. Danika also personally has experience in working with cosmetic and beauty products. This
makes her even more qualified because with her knowledge on cosmetic and beauty products, we can
improve our design and how our product works. Some qualifications we would need in order for our
team to be successful is more knowledge and experience in the cosmetics industry and products that
are used.
Our business belongs in the toilet preparation manufacturing industry. It fits within this industry
because we manufacture a product that has a purpose of removing makeup/eyeliner easily which is one
of the products that fit within the toilet preparation manufacturing industry. The beauty industry is
worth $532 billion, there are approximately 182 beauty brands or more, and by 2022 it is expected to
generate 45.2 billion dollars in revenue. The size of our potential target market is 148,572 people. This
was calculated The data that supports our business opportunity is data that shows there’s only about 30
companies that are eco-friendly and some trends that help support why our product has business
opportunities is trends of on the go easy to use products, environmentally friendly products, natural
ingredients, animal cruelty-free. Recently there’s been a 175% increase in cruelty-free and natural
products showing a growing need for cruelty-free natural products.
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here is a higher population of people in urban areas so our business would do best in urban areas
and our customers would most likely live in urban areas as well, with businesses located in malls or
shopping centers. Most of our customers would be middle to upper class because our product is
essentially a makeup remover, just in a different form and because there’s already a makeup remover
that already exists and may be cheaper, people who aren’t middle to upper class may not want to spend
extra money on our product. The age range we are targeting is 16-45. Our product will be for all
genders and ethnicities. There is no specific education level we are targeting but our customers most
likely have a secondary education. Our target market’s lifestyles are “on the go” young, working
professionals who have a positive attitude and believe their generation can change the world. They
most likely value family, nature, and animals. They most likely buy many skincare products,
sustainable products, and shop at Whole Foods, Target, and Trader Joe’s.
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ome direct competitors are Almay, Burt’s Bees, and Neutrogena. Neutrogena is pretty well
known for their skin care, moisturizers and cleansers and Burt’s Bees is known for being pretty natural
in terms of the ingredients they use in their products. Almay is known for using pure and
hypoallergenic materials. All these companies are our competitors because they all sell makeup
removers in addition to other products. Almay’s makeup remover sells for $13.96 while Burt’s Bees
sells their makeup remover for $5.99. Both companies sell their products through stores such as target
and their online website. Some indirect competitors are Now Foods and Sky Organics. These brands
are indirect competitors because they don’t sell makeup removers but the products they do sell,
essential oils, fulfill the need for a product that nourishes skin and removes makeup. Now Foods is a
company founded in 1968 and their more popular products include fragrance oils, vitamins and
supplements, and facial scrubs. Sky organics specializes in organic oils and kinds of butter that are all
beneficial to the face/skin. Both companies sell their products through their online website.
ur business is better than our competitors because we emphasize the importance of using materials
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that are eco-friendly and biodegradable. One of the things our business provides is a multi-use makeup
remover that can remove makeup or reach spots that are tough to get to and are sensitive. The materials
we use will help moisturize the areas you use our product on while removing makeup/cleaning wounds.
Our specialized selling method is the use of all natural materials in our products, including the
packaging. We meet our customers’ needs and wants by providing a small, portable, convenient,
efficient makeup remover that can also be used to moisturize/nourish small cuts or other areas that are
small and hard to clean. Our three competitive advantages are we are eco-friendly, multi-use, and
convenient to carry and bring around. Some of our competitors Almay, Neutrogena, Burt’s Bees, etc.,
use natural materials in some of their products but none of them target small hard to reach areas and
none of them have makeup removers that have multiple uses.
Factor 2: Multiple uses such as Their makeup remover Their makeup remover
Multiple uses removing makeup and only has one use only has one use
moisturizing certain
areas/wounds
current trend in the beauty industry is sustainable products. Currently, companies like Lush and
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Target have begun centering their products around being environmentally friendly. With this trend, our
company can grow because we are centered around being eco-friendly and with this trend, we are
given the opportunity to expand. Some next steps that we would take to grow our business would be to
create a new product that still embodies the values that make our company unique. This would let us
grow because then we would have more to offer to customers.
Some trends that could provide potential challenges are trends that are centered on a different style
of makeup remover such as a makeup remover spray. This would provide a challenge because our
product is a makeup remover in the form of a cotton swab and if a trend came up that was a product
that had the same uses as our but an entirely different from that it would be hard to compete.
Some barriers that come with starting this business is the makeup industry is extremely large and
there are many big well-known brands so competing with them is going to be difficult. Another barrier
is finding products that can benefit customers and not harm the earth. This is a barrier because there
aren’t many products that can be used to remove makeup and are eco-friendly.
Some additional education in materials that are good for the environment and good for skin care
would help us overcome these obstacles because then we would be knowledgeable in making our
products and which materials to use to make them better.
For our primary market research, we conducted a survey in our high school advisories. We used a
random number generator to determine what advisory to go to, so we could eliminate any form of bias
that may pop up. On our survey, 3 questions were ‘yes or no’ questions. Do you use cotton swabs for
other purposes excluding cleaning your ears? Do you touch up your makeup throughout the day? Our
product is a sustainable cotton swab made for treating cuts, wounds, bruises, sunburns, and makeup
touch-ups. Would you buy our product? We have one ‘check all that apply’ question. How do you treat
your cut, wounds, bruises, and sunburns? We gave them the choices of tiger balm, Neosporin,
Vaseline, aloe vera, soap and water, coconut oil, and we also gave them the opportunity to write down
anything that was not listed. With the data we collected, we noticed that 62% of students from our
sample use cotton swabs for other purposes that exclude cleaning ears. This means that our product is
viable because people already use cotton swabs for more purposes. 10% of students from our sample
touch up their makeup throughout the day. This can mean that since people do not have a travel sized
makeup remover that gets the tiniest mishaps like our product, that can give the opportunity to have
more people touch-up throughout the day. 6% of students from our sample use coconut oil as a wound
healer, this can give the opportunity to introduce a new treatment for wounds. Lastly, we noticed that
72% of students would buy our product; this means that our product can be popular among high school
students.
ne unit of sale is 25 makeup removers/cotton swabs and each cotton swab is made of cotton,
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wooden sticks, cardboard packaging, and coconut oil. The package comes with a mason jar for you to
store the cotton swabs in.
Delivery Process
First, we order the ingredients which are cotton balls, wooden sticks, coconut oil, and a mason jar.
Second, we create the cotton swab. That consist of:
1. Shred the cotton balls into smaller pieces.
2. Wrap the cotton around the wooden stick
3. Form the cotton into a regular looking cotton swabs
4. Twist the cotton around the wooden stick to secure it into place
Third, we melt a tablespoon on solid coconut oil in the microwave with a microwave safe bowl.
Fourth, once the coconut oil is now a liquid, pour it into the mason jar, only 1.5 cm from the bottom of
the jar. Fifth, swirl all 25 cotton swabs into the jar so that all the cotton swabs are coated. Sixth, let the
coconut oil harden so that the consumer has more control in distributing how much oil goes on the
face.
Next, we test the product out and revise any critiques we may have. After that, we have our
finalized product. That gets packaged and shipped to the customer.
Materials
Material Description Bulk Price Bulk Quantity per Cost per Unit
Quantity Unit
Labor
Cost of Labor per Hour Time (in hrs) to make one Total Labor Costs per Unit
unit
COGS/COSS
Commission $[0]
Packaging 0.41
Other
Total Other Variable Expenses $0.41
Total Variable Expenses $1.61
Interest $0 No interest
Depreciation $0 No depreciation
VARIABLE EXPENSES
3.7
Startup Expenditures
My partner and I will divide the fixed expenses between the both of us and that will come out to 80 each.
We want to be able to pay for the bare minimum. Additionally, we will also pay for the materials,
advertisement, and salary. Our start-up expenditures will be $21.73 and our emergency fund is about $10
ur product is a biodegradable cotton swab that can be used to remove a small detailed makeup
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mistake or clean and hydrate small wounds. We are selling it for $5 for a package of 25 cotton swabs.
Our marketing strategy is to sell it on Etsy, promote through Youtube ads, cater to both men and
women who use makeup, and people need a tool that can heal and clean wounds or clean detailed
makeup mistakes.
Our target customers are men and women who use makeup removers and people who may need to
clean wounds often or people who would like to use biodegradable products. We will use people to
market our business to them by having people explain the benefits of using this product.
The features of this product are that it is a lightweight makeup remover that comes in the form of a
cotton swab. This product can double as a makeup remover and wound cleaner. It also comes in a
mason jar so it is quite portable and easy to carry around. The benefit of having this product is that it is
biodegradable so it won’t contribute to the massive amounts of pollution the beauty industry is already
creating.
Our product benefits our target market because the majority of our target market is young
professionals. These people are on the go, always in a rush a need a quick and easy way to remove
small makeup smudges on their faces. Additionally, this can provide them with more confidence
during their day because by using this product they will always look their best and be their best.
NFTE Written Business Plan
2018-2019
Our marketing plan incorporates our target market because we were planning to travel to beauty
events and use youtube ads to spread more awareness about our product because our target market is
already on youtube. Youtube is a great tool to learn more about makeup, how to use makeup, and what
products are good. When people are already on youtube to learn more about what products are good,
this is a good opportunity to plant our product in their mind because they are looking for new products
to use.
We plan to sell our product through Etsy and we determined the price of our product by looking at
what our materials cost and what price would be reasonable for our customers.
The promotional strategies we will be using is free giveaways on our Instagram. This allows our
page to reach more people because the requirements of the giveaways are to follow us, tweet us,
comment, and to forward us to 3 people. We will be giving away a useable tote with our logo on it and
samples of our product. We plan on attending beauty festivals and events like BeautyCon LA. We will
set up a booth where people can test out our product and we could giveaway samples and the tote.
We will have advertisement on Youtube. Youtube is a great way to reach potential consumers
because many people use Youtube as a way to learn about makeup. Youtube can be a great tool in
becoming educated on makeup because that's where people share their opinions on makeup and what
kinds of products they use. Youtubers post their makeup routines like putting on their makeup and even
taking off their makeup, they post tutorials and reviews.
As the creators, we will advertise our product by posting on our social media accounts on how great
our product is and how to use it in many different ways.
Since our product is all about saving the earth and being “green” it will appeal to people who also
care about the planet because more people will want to try different ways to change their routine so
that it is more beneficial to the planet.
There will be beauty YouTubers and other beauty social media influencers we want to reach out to,
to promote our product because their audience can be potential consumers and are in our target market.
They use makeup and are young professionals who will care about the planet because they will be
roaming the earth for the next half-century.
We will have daily pop up sales so that the people who want to try out our product but do not want
to spend that much money can. Once they fall in love with our product, they will want to repurchase
and they will make up for lost revenues.
Our overall personal selling strategy to advertise on social media because we know that our target
market is in social media a lot and we will be using product-based selling to sell our product. We will
tell our customers that our product can change their lives, as well as the world. Our business values the
use of sustainable products so that it could be beneficial for the environment, and our product is
sustainable which doesn’t harm the environment. It’s time that we should start caring for the earth and
that starts with the products we use on a daily basis.
4.4
Sales Estimates
he maximum amount of units the two of us can make is 2200 cotton swabs each that will be ready to
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be delivered in a month which is about 88 units because each unit comes with 25 cotton swabs.
In order to cover fixed expenses every month, we need to sell 33 units of our q-tips which is our
break-even units.
Based off of our market analysis from our target market segment we could sell the number of q-tips
we could make in that month.
Seasons can have different effects on our sales. Our product can be popular all throughout the
seasons because it could easily be apart of someone’s daily routine (with the added bonus of being
environmentally-friendly). We could see our product becoming especially popular around the holidays
while people are searching to find the perfect presents for their loved one, and our product can be the
perfect gift. Additionally, we could see our product becoming popular during the wedding season,
which is from June to September because brides and bridesmaids need a tool if any makeup mishaps
occur and our products are perfect for that. Lastly, since we are students, finals seasons (the season of
important tests occurring) could affect the production routine of our product because we may be busy
studying for our tests.