Cosmetics store business plan from scratch

Every individual strives for security and independence. Is it possible to achieve the satisfaction of your natural needs if you work for an employer? Are you completely dependent on his desires, moods and stereotypes? Of course not.

Many people answer these questions in the negative. The next question is: “How to achieve financial and personal independence?” Starting your own business is the right decision. You will be able to decide who to work with, how to work and where to work.
Drop all doubts and just study the information. This article will help you create a business plan for a cosmetics and perfumery store – one of the win-win directions of reality. We will analyze everything in great detail and go through the entire algorithm of actions from start to finish.

Advantages of the perfume and cosmetics business

Why is this a win-win direction? It is actively expanding and growing. Every woman wants to look beautiful and well-groomed. In addition, self-care is promoted by society itself. It is impossible to imagine a modern woman without a trendy manicure and a pleasant perfume. Representatives of the gentle sex are ready to give a significant part of their income (about 15%) to cosmetics and perfumery stores.

The lack of direction is a narrow and specific topic, more relevant for women than for men . This is traditionally a women’s business. It has risks inherent in all areas. We will discuss them in detail at the end of the article.

Cosmetics and Perfume Store Step by Step Business Plan

Where to start? Here is a clear algorithm of actions:

  1. Analysis of competitors;
  2. Choice of specialization and institution format;
  3. Finding suitable premises;
  4. Registration with the tax office, preparation of related documentation.
  5. Equipment selection;
  6. Selection of suppliers, assortment and its purchase;
  7. Selection of employees;
  8. Point of sale advertising.

Let’s consider each step in detail, we will study the smallest nuances. In addition, we calculate:

  • the total cost of opening a cosmetics store;
  • the cost of purchasing equipment;
  • the cost of purchasing goods;
  • advertising cost.

Let’s estimate how much you can earn in the perfume business and assess the risks in this area.

Competitor analysis

In fact, this is not the first step – competitor analysis always accompanies you with any decision you make.

Need to specialize? – Assess your competitors.
Need to decide on an assortment? – Assess your competitors.
Need to choose a room and its location? – Assess your competitors.

How to promote a cosmetics store? Complete and competent assessment of competitors:

  • what methods of advertising they use;
  • how they attract consumers;
  • what range do they have?
  • What suppliers do they work with?
  • what kind of “icing on the cake” they use, etc.

The choice of specialization and format of the premises

Having studied the competitors in your city or a separate area, you can decide on the specialization of a cosmetics and perfume store.

Choose a segment: low, medium or high. We focus on the level of income of the population and our starting capital. And, of course, personal preference.

Possible specializations:

  • elite cosmetics and perfumery;
  • decorative cosmetics;
  • medical cosmetics;
  • natural cosmetic;
  • professional cosmetics.

It is possible to choose the option of a branded outlet. An official dealership agreement is concluded with a well-known brand and there is a prospect of working with prepared and already “warm” consumers.

Advantages of the monobrand format:

  • cooperation with only one supplier;
  • narrow range (easy and quick to remember);
  • savings on advertising.

It can be your icing on the cake.

The main disadvantage of this choice: complete dependence on the supplier and the quality of his products.

An alternative option is a multi-brand cosmetics store format. You will significantly expand the circle of consumers and eliminate dependence on a particular brand.

But you will face the problem of a large amount of information:

  • many different suppliers with different delivery conditions;
  • a high number of assortment items;
  • forced audit and elimination of badly sold trademarks.

Also, cosmetics of a particular country can become a trump card of your business. Exclusive from Japan, Korea or Italy. This specialization is aimed at a narrow target audience. Requires the formation of “their” consumers. It is carried out with the help of undeniable quality and uniqueness of goods.

The choice of the size of the room follows from the specialization and your financial capabilities. It can be a small corner in a shopping center or a full-fledged separate room with huge windows.

Finding a suitable room

This step includes both the choice of the room itself and its location.
Do not forget, competitor analysis is the basis of the solution! Based on the chosen specialization and taking into account the target audience, we begin to methodically study the districts of the city:

  • we look where and what outlets are located;
  • whether there are direct competitors or large chains;
  • we study the number of beauty salons, health centers, cosmetology private clinics;
  • estimate the population density of the area.

All these indicators will help you choose the right area and calculate the target audience. Make enough time. The profitability of your perfumery and cosmetics business depends on this step.

The selection of the optimal premises will be easier. You can rent a separate building or part of a residential apartment building (ground floor). Renting in a shopping center will completely help to avoid solving many paperwork.

Registration with the tax office, preparation of related documentation

This move scares many. Paper troubles and bureaucracy of organizations are a thing of the past. Now all documents are done promptly and through online recording. No difficulties will arise.

The first step is business registration. You can register with the tax office as an individual entrepreneur (IP) or even become a “Limited Liability Company” – LLC. For a small format and beginners, it is better to choose an IP.

A cosmetics and perfumery store is registered under the OKVED-2 code: 47.75.1.
It is also necessary to purchase a cash register and enter its number into the database of the tax authority.

Tax system options:

  • simplified taxation system (STS)
  • single income on imputed income (UTII)

In the first, only one tax is levied: either on income (6%) or on the difference between income and expenses (5-15%).

In the second, the tax is levied on the estimated (imputed) income.
Rates often depend on the region, study the information on the website of the tax office.

Accompanying documents required for opening:

  • sanitary and epidemiological permit;
  • conclusion of the fire inspection;
  • permission to operate the premises;
  • lease contract;
  • product quality certificates.

Many problems can be avoided when locating a perfume business in a mall. In this case, registration and an agreement with the administration of the complex are required.

Equipment selection

You’ve got an empty space at your disposal. Now it needs to be properly filled and formatted.

We take into account the quadrature and consider how many racks, counters, stands, showcases are needed. Their number should not overload the store. The consumer needs to provide comfort and space. But the assortment cannot be laid out on the shelves on top of each other.
It is important for the buyer to provide an opportunity for a leisurely choice!  Any cosmetics requires careful examination and selection of shade. And perfume can be chosen in general forever!

The presence of all kinds of probes is a must. Glass and mirror showcases of a cosmetics store will be a definite advantage.

If possible, it is better not to choose closed-type showcases. They interfere with a full inspection and reduce sales.

In the design of the interior decoration, it is natural to use one bright color – the corporate one. At the same time diluting it with a calm, pastel color.

The presence of pleasant music and bright lighting will increase sales and create a mood. Little things do not happen!

Selection of suppliers, assortment and its purchase

It is important to find useful suppliers, to study their prices. You should pay attention to the following points:

  • reviews about this supplier;
  • availability of quality certificates for the supplied goods;
  • offered promotions and bonuses.

All the necessary information can be found on the Internet. We remember competitors and do not forget to focus on them. You may be able to find a supplier of goods that are not represented by rivals and thus interest buyers.

Typically, goods are distributed as a percentage of three price segments: cheap, mid-level, expensive – 25%, 50% and 25%, respectively.

The number of assortment items depends on the area of ​​the cosmetics store. The initial purchase should fill the shelves, but not be excessive . It is necessary to analyze consumer demand and identify the most popular positions. Competent formation of the assortment will allow to avoid idle time of goods, overload of shelves.

Recruitment

A seller in the perfume business and in the beauty business must be able not only to pierce and lay out goods, but also to advise. High-quality and skillful consultation will not let the buyer leave without a purchase.cosmetics store staff

The following requirements apply to the sales assistant:

  • neat appearance;
  • grammatically correct speech;
  • goodwill;
  • knowledge of all characteristics of the product;
  • the ability to select tones, shades and structures;
  • sense of taste.

Your task, as an employer, is to train or send your employee for training. Often, various master classes are held by brand manufacturers for free.

At a minimum, there should be several sellers, a cashier and a cleaner. All management functions and accounting at the start can be taken over. Saving and rushing at this step does not make sense. Without effective personnel decisions, the store will not pay for itself and will not bring profit.

Point of sale advertising

The final and important touch is self-presentation. The ability to position your cosmetics store correctly and retain customers is half the battle.

Lots of ways to advertise:

  • booklets, leaflets;
  • beautiful showcase and sign;
  • social network;
  • promotional activities with partners.

So how do you promote a cosmetics store from scratch? The main method is the formation of a “good habit” among buyers to buy products from your particular store. This is achieved by a good level of service and the availability of promotions and advantageous offers for regular customers.

Be sure to have a consumer corner, conduct monthly surveys and take into account their opinion.

A popular, effective and low-cost way of advertising is to create a store page in social networks . This method is gaining popularity and becoming the norm. It does not require special knowledge and investments at first. But then it is better to hire an account manager.

The main criterion for choosing marketing tools is your budget. Perhaps the start-up capital is small, then in future profits, take into account and allocate part of the funds for advertising your business.

Let’s move on to practice: a business plan for a cosmetics store – its calculation

The most disturbing question: how much will all this pleasure cost?
The sum consists of initial investments and obligatory expenses.

Table for calculating the cost of opening a cosmetics store:

Starting costsSumMandatory (monthly) expensesSum
Registration fees10,000Monthly rent35,000
Rent35,000Communal5000
Repair15,000Wage36 000
Equipment200 000Tax20 000
Product250 000Other30,000

All calculations are made on the example of a 40 m² store in a small village with two employees. The values ​​are very close and depend on the specific region, the condition of the premises, the specialization and assortment of the outlet. Their goal is to demonstrate the methodology of calculations.

The starting capital in our case is 510,000 rubles. Monthly expenses reach 126,000 rubles.

When and what profit to expect? The trade margin for beauty products is usually 30-100% . It will take several months to get a plus and cover the initial expenses.

According to the averaged statistics, the revenue of a new cosmetics store can be calculated as follows:

Daily income is approximately 15,000 rubles. This is 450,000 rubles per month. From this amount, monthly expenses must be subtracted. In our case, 126,000 rubles. The remaining amount of 324,000 rubles minus the purchase price of goods of 250,000 rubles will be equal to the amount of your profit per month – 74,000 rubles.

In this case, you will be able to recoup the funds spent in almost 7 months.

It is worth arming yourself with patience, because in order to go through all the stages and achieve a result, it may take 8-9 months.

Possible business problems and risks

Risks you are most likely to face:

  • competition with large networks;
  • defective goods;
  • violation of the conditions and schedule for the supply of goods by suppliers;
  • premature termination of the lease;
  • staff turnover and unprofessionalism;
  • lack of demand;
  • others.

A meticulous audit of competitors and the ability to collect and process information will help minimize the risks of this business . With each risk, it is important to notice it in time and take measures to level it.

You can avoid competition with large networks at the beginning of the journey by studying the location of the future cosmetics store.

No one is immune from low-quality goods. It will be possible to reduce this probability due to the choice of trusted suppliers .
If a marriage or a fake has got on your shelves, we quickly react and remove it from sale. The opinion of customers and respect are put in the first place.

Staff turnover is a problem for many businesses. Learn to build a long and strong partnership. This will reduce the costs associated with the search, training and training of workers.

Following the recommendations at each stage of opening a retail outlet will make it possible to avoid many problems.

Over time, a good solution will also work online. The organization of the sales process via the Internet does not require superpowers and will provide additional profit.

Don’t be afraid to start! Make your business plan for a cosmetics store and go for it .

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