my business plan 2011 - by Cindy Luken
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A biz plan with a difference. I share my plans on how I will style-my-life by harnessing online power to build a successful boutique beauty biz from my kitchen bench...by outsourcing, automating and ...

A biz plan with a difference. I share my plans on how I will style-my-life by harnessing online power to build a successful boutique beauty biz from my kitchen bench...by outsourcing, automating and streamling in a margin-rich & compititive industry!

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my business plan 2011 - by Cindy Luken Presentation Transcript

  • 1. luk by Cindy Lukenmy BIZ in the making
    BUSINESS PLAN
    4thMay2011
    Final (V8)
    © COPYRIGHT: Cindy Luken. Just ask me if you’d like to use anything in this plan. Email cindy@lukbeautifood.com
  • 2. introduction
    Hi there,
    I am sharing ‘in the making’ of this business so you can see my approach to building a small
    business around my own & family’s needs and wants. What is important to us is spending
    time together, doing the things we love, enjoying time and space for ourselves and each
    other and having flexibility…. all whilst generating enough fun ticket$ to ‘live the sweet life’!
    This means I am approaching the creation of a startup biz from an unusual angle. I am
    setting the criteria it must meet to enable this ‘lifestyle of desire’.
    Consequently I don’t know what I am going to do yet – the first part of this business plan
    will help identify and clarify what it will be.
    I hope you enjoy the read and learn something on the way.
    Enjoy the discovery & insights….Cindy
  • 3. behind the business
    Cindy Luken – 43. modern mum, entrepreneur, food lover and former bikkie baker
    Until 2003 I had a very busy business life creating Luken & May Biscuits. Since then I immersed myself in the beauty industry and ran Arnaud owned by Stila Cosmetics US, had 2 beautiful children (now 2&4) and escaped to France with my family for 18 months to wander the canals on a 100 year old barge
    My background includes an applied science degree in food & nutrition, new product and process development at Sara Lee, catering and event management @ Juste Nous Catering (Norma Willis) and building & exiting Luken & May (with private equity backing) within 7 years of start up. (now owned by Byron Bay Cookies).
    I have sat on the National Food Industry Council & Innovation Committee providing input on strategic and future issues and was a member of the Small Business Advisory panel to the Reserve Bank Board.
    Newcastle University awarded me with an Honorary Master of Science for combining my love of food with science & business. Over the years I & my team have won over 20 export, entrepreneur and business awards including Jaguar Gourmet Traveler award for Excellence in Produce, the Australian Business "Success thru Innovation" prize and 19th & 20th spot in BRW’s Fast 100.
    My philosophy is simple…..live what you love….and the rest falls into place. I am now creating luk as I am ready to give a bit back to me so that I can continue to be a happy wife and mother. My aim is to use the fabulous technology that surrounds us and create a business that is easy to manage, gives me a buzz and makes money!
  • 4. Contentspart A) Opportunity Developmentstage 1: Establishing Business Framework. pages 05-11stage 2: Brand & Product Ideas. pages 12-16Stage 3: Desk Top research. pages 17-25stage 4: The Brand Proposition. pages 26-31part B) The Business Takes Shape1. The Beautifood Business. Pages 32-452. The Brand. Pages 46-663. Sales & Marketing. Pages 67-794. Operations. Pages 80-855. Finance & Admin. Pages 86-93
    © COPYRIGHT: Cindy Luken
  • 5. Part A) Stage 1
    Establishing business framework
  • 6. mybusiness goal
    To create a small business that runs profitably on
    15 ‘child free hrs’ pw with <$2000* start up fund
    netting $1000pw by end year 1.
    (*home office, computer, phone, internet and ‘like’ equipment on hand)
  • 7. Ideally the biz must….
    1. Sell products not services:
    Why? Input hrs don’t limit sales potential. Can easily systemise sales process and scale up.
    How? Design unique product/s and have them contract manufactured
    2. Be cashflow positive on launch:
    Why? Low start up funds required
    How? Pre-sell before placing launch orders. Ongoing - pre payment on 80% sales. Small &
    flexible production runs.
    3. Have no employees:
    Why? Need flexibility & privacy to run home biz, keeps overheads & headaches down!
    How? Outsource services when needed – pay for what’s needed.
    4. Can be run from anywhere in the world:
    Why? Gives flexibility, not tied to desk. Very practical & inspirational!
    How? Utilise online technology – orders, communication, stock control etc, Outsource key functions and ensure sales service is not physical.
    .
    more next page…
  • 8. Ideally the biz must….
    5. Must have potential to grow to a $10+mio turnover
    Why? Good to have options! To increase return, ability to sell or license brand
    How? Build a strong & flexible business model & product offer / contract manufacturer that scales up easily.
    6. Will operate in the Food, Beauty, Health &/or Wellbeing sectors.
    Why? This is where I have experience and can LIVE WHAT I LOVE.
    How ? Hunt for gaps/opportunities.
    And to recap on the biz goal..
    7. Runs on 15 ‘childfree’ hours per week in year 1
    Why? This is the time I have to achieve our personal desire to spend time with the kids before going to school
    How? Get tough. Make it work or don’t do it.
    8. Makes Money – clears $1000pw by end year one
    Why? It’s not a hobby! I need it. Motivating.
    How? Home office keeps overheads low, select high margin products (COGS <25%) with excellent sales potential. In house marketing – guerrilla / WOM/ Social. Low labour sales order, stock control & marketing processes. Minimise stock wastage.
  • 9. what is my business strategy
    By setting up a home office with a local, outsourced
    virtual office and by outsourcing the infrastructure cost, risks and constraints in manufacturing,
    build an easily scalable technology & marketing savvy business that focuses on building intimate
    and purposeful relationships with consumers.
    Key - flexible model to stage business growth cost effectively.
    Stage 1 logistics: hands-on pick, pack & ship (need for small high value, low risk product?)
    Stage 2 logistics: outsource warehousing and distribution/logistics
  • 10. What are my key business objectives ? 1/2
    To:
    obtain gross sales of $250K year 1 with a net profit of 20% - in other words pocket $50K after tax.
    Find a product / sector where COGS run below 25%. ie gives room to move / promote / sell via second or third party to drive volume.
    Enter a sector / industry with high sales potential – ie sell product that is in demand.
    Launch Summer 2011 & breakeven on startup or @ latest within 3months and produce residual income
    stage business growth & investment with potential to achieve $10m gsv pa
    Stage 1 ( year 1) $250K - self funded & managed, organic growth, key accounts &/or sell direct
    Stage 2 (2-3 years) $1m
    Stage 3 (3-5 years) $10+m
    Definitions: ebit=earnings before interest & tax: COGS = cost of goods sold.
    Breakeven – where costs = expenses. GSV – gross sales value (before ANY discounts etc)
  • 11. What are my key business objectives? 2/2
    To:
    Keep product range simple – limited number of SKU’s or categories & NPD if possible.
    Stock – keep at minimal levels. <10% turnover?; Stock turns at 10 pa or >. Min 12mth shelf life.
    Cashflow: ideally pay b4 ship! &/or Collections <30 days.Creditors > 30days
    $2000 start up kitty. Hence need to pre-sell. (note am stay-at-home-mum- don’t want to put financial strain on family with my desire to run own biz)
    create an outsourced, streamlined and easy self managed business that can be run without regard to location
    never compromise or fail on quality, reputation means everything. Service better than competitors. Build success on success of others. Reward those who help me.
    Definitions: NPD – new product development
  • 12. Part A) Stage 2
    BRAND & PRODUCT Ideas
  • 13. discover….
    I love food
    I love beauty
    I love beautiful things
    food
    beauty
    beautiful….
  • 14. beautiFOOD
  • 15. luk
    beautiFOOD
  • 16. Why luk beautifood?
    This area of interest has not come overnight, it been simmering away, waiting patiently for me…
    Food is such a wonderful sensory experience, no one shows this better than Heston Blumenthal
    from the Fat Duck – currently the worlds best restaurant attracting 30,000 enquiries a day.
    www.thefatduck.co.uk
    As a packaged product however, food becomes a commodity (controlled by supermarket
    monsters), or is available only at the ‘top’ end, to a few via expensive distribution channels ….
    making it challenging as an SME to manage and make money from.
    Beauty products however, are loved by many….and are not restricted to gourmands. They are such
    a personal, multi-sensory experience that help make us feel good about ourselves. Nearly every girl
    loves a lippy whether they are golden & glitzy or natural and down to earth. But times are changing and
    consumers are really starting to understand the link between eating well and its effect on health &
    wellbeing.
    So for me, a food scientist, a food lover, a lover of beauty and someone that loves bench top
    formulation development…..there seems to be a potent area ready for tasting!
    As for luk…..well that is easy (luk from Luken, as there is still might be a bit of Luken & May love in the
    air!) luk = luck? Luk = look?....it’s all in the mixing bowl.
  • 17. Part A) Stage 3
    Desk Top Research
  • 18. what’s happening in the beauty market?
    Cosmetic and toiletries market in 2010 is estimated $300b world wide. Overall lacklustre
    performance from global economic downfall, some categories seeing +ve performance,
    especially when compared to previous years.
    Pockets of optimism are region & category specific.
    natural personal care market
    colour cosmetics
    most dynamic markets are China, Brazil & Russia
    Last few years seeing a ‘sea-change’
    value chain shift with production to low cost countries
    new channels of distribution emerging – online retailing expected to reach 5% of cosmetics this year and growing
    ever increasing interest & change in consumer preferences eg natural & herbal
    Surge in truly natural segment growth upto 20% in some markets driven by
    reformulating ‘natural inspired’ & expansion of lines into mass retail like Walmart as
    consumers demand premium products at low prices.
    To put in perspective, in 2006, 35,000 new products launched. Cosmetics 21K, lips leads
    the way 8.6K.
    Beauty blogs & social media having influential affect on consumer purchases.
  • 19. focus on natural & organic beauty market 2/2
    Changing market conditions are making many natural cosmetic firms take the direct route to get closer to consumers.
    Setting up online retailers
    Growing number of brands are opening concept stores (especially in Paris).
    Weleda, Dr. Hauschka, Madara Cosmetics and Couleur Caramel in recent years.
    Other brands like Melvita and Florame are building international retail networks.
    Although healthy growth rates are continuing, the natural cosmetics market faces many obstacles to future growth. Major obstacles include low consumer understanding of natural & organic products, lack of harmonised / uniform standards and proliferation of symbols and logos. The development of European-wide standards such as NaTrue and Cosmos are expected to overcome some of these hurdles.
    Saying this, the first ever Consumer Insights report on consumer buying behaviours report 89% of consumers avoid products with synthetic chemicals such as parabens and SLS’s. A major finding is that certification is not important to most buyers. Just 35% of consumers stated that they look for symbols & logos when buying natural personal care products.
    Ref: Organic Monitor Reports: #1231-60 & #1002-60 & # 1081-60
 
  • 20. focus on natural & organic beauty market 1/2
    Naturals movement now mainstream & expects double digit growth for next 5 years.
    In EU alone natural cosmetic sales approach $2b in 2010 at growth of 12%
    Consumers are turning to natural and organic products as they become aware of the possible dangers of parabens, phthalates and other synthetic ingredients in cosmetics & toiletries.
    Mainstream retailers are responding to high consumer demand by introducing natural & organic cosmetics, some under their private labels. The entry of large retail groups is causing a large shift in sales from specialist to mainstream retailers.
    Competitive Stakes Rising as Market Evolve
    because of new entrants and growing consumer price sensitivity. Value brands are gaining market share.
    Most growth from mainstream retailers.
    Many companies are taking a segmentation approach, focusing on specific sales channels and / or consumer groups
    Traditional organic / health food shop sales declining.
  • 21. what are the natural beauty trends?
    2009: Brands sought creative ways to merge science, nature and sustainability for better results and more eco-friendly formulas and packaging
    2010: consolidation in the beauty industry and the evolution of old trends, as well as new ones, as consumer confidence returns.
    2011 – ‘down to earth’
    a) MOOD BEAUTY - 2010
- make-up has long been associated with making the wearer feel better, but recent product evolution has seen actual ingredients enabling this.
    - consumers will be able to enhance their mood through make-up and skincare, going beyond aromatherapy and simple use of scent.
    - “Mood Beauty” creates a new beauty space, intersecting psychology and wellbeing with beauty products that offer psychological benefits and ingredients that act on people’s neurotransmitters.
    - manufacturers make use of textures, temperatures or sounds that affect the mood, as well as innovations like make-up that “switches on and off.”
    - the idea of beauty sleep will take on new meaning, as cosmetics claiming to induce positive moods or improve sleep quality inject new life into night care products.
  • 22. SOURCE: Mintel GNPD 2010 & 2011 Trend Predictions
    what are the natural beauty trends?
    b) NU NATURAL – 2010
    • naturals that are less focused on certification & more on results, efficiency and safety.
    • 23. will evolve from today’s trend towards organic ingredients - revisiting attributes like authenticity, provenance and local production.
    • 24. claims like “free from” and “sustainable” to appear in products that simultaneously contain synthetic actives like peptides and ceramides or collagen.
    • 25. explore simple formulas, such as infusions and fluids, but they’ll formulate them with a new generation of phytochemicals, anthocyanins and fermented actives.
    c) DOWN TO EARTH – 2011
    • addresses the practicalities of making and marketing green beauty.
    • 26. free-from formulas (over certification) to avoid petrochemically-derived ingredients
    • 27. simplifying text and ‘stripping back’ to tell straightforward, direct stories of plant-based ingredients - treat consumers as educated shoppers instead of novices.
    • 28. increased importance on the environment, focusing on sustainable sourcing with attention to maintaining biodiversity.
    • 29. a renewed emphasis on repackaging to minimize waste will also be a factor.
  • Colour Cosmetics: in the next decade will be increasingly multi-benefit, long wearing, and provide anti-aging benefits. Eg foundations with additional anti-aging properties, such as vitamins, botanicals, light diffusion, and sunscreens.
    Colour cosmetics are seen as an affordable pick-me-up during tough times.
    Skincare: Skin care is becoming increasingly more high tech but at the same time there is growing popularity in natural and organic products
    The growth is being driven by a demand for new and improved products which offer health maintenance and appearance enhancing benefits.
    a look at colour cosmetics & skincare
  • 30. what is the key consumer insight?
    There is a rapidly growing awareness of the importance of
    what products are used on our body, stemming from
    consumers greater understanding of what we eat and its
    effect on our health and wellbeing.
  • 31. what is the brand opportunity?
    To create a range of delicious, natural, colour cosmetics made from skin-friendly, nutrient-rich foods so woman can feel good about what they use on their skin.
    To support the offer with a simple, fresh and healthy approach to optimal beauty wellbeing so woman can manage the daily influences (stresses) that can affect how they feel, look & perform.
    And to do this with style & taste built on a science platform.
  • 32. Part A) Stage 4
    The Brand Proposition
  • 33. what is the brand proposition?
    Luk is a delicious, natural makeup made from food active ingredients
    for woman who care as much about what they put ON their body
    as what they put IN.
    A pure, natural, healthy colour cosmetic line
    formulated to nourish, hydrate and illuminate skin.
    A modern way of utilising the intrinsically
    powerful properties of the foods* that should be eaten daily
    to create, nourish and nuture beautiful skin.
    * Especially foods rich in skin friendly phytonutrients, vitamins (E&C), minerals, anti-oxidants and enzymes
  • 34. what products will luk start with?
    Brand will launch Summer 2011/12 with a range of lippies made from pure food actives to nourish, hydrate and illuminate lips.
    The lips will look 'modern’ with a hint of natural colour and sheen.
    Not overly lipsticky, moist not glossy; a beautiful finish without looking made-up.  
    It will give a healthy, contemporary, effortless look for woman ‘on the go’.
    Menu of chef-inspired tastes and scents. Eg Sweet Lemon, Mint & Basil
    and Mandarin & Cinnamon
  • 35. players in the natural or organic lippy market
    • RMS (Rose-marie Swift) www.rmsbeauty.com
    • 36. KW (Kjaer Weis) www.kjaerweis.com/#/Products/Lip-Tint/1
    • 37. Ere Perez www.ereperez.com
    • 38. Korreswww.korres.com
    • 39. Revolution Organics www.revolutionorganics.com/products.php
    • 40. Unenatural Beauty www.unebeauty.com/en
    • 41. Bare Escentualswww.bareescentuals.com/Lips
    • 42. Nvey eco www.enveymakeup.com
    • 43. Juice Beauty www.juicebeauty.com
    • 44. Burts Bees www.burtsbees.com.au/natural-products/lips/
  • Why start with a ‘lippy’?
  • 45. NATURAL BEAUTY CARE
    MARKET SEGMENT
    SKIN
    BODY
    COSMETICS
    CATEGORY
    COLOUR with skin care benefits
    SKIN BODY FOOT & HAND
    FACE
    APPLICATION
    cleanse
    Lips:
    clean
    tone
    moisturise
    Eyes
    moisturise
    Cheeks
    exfoliate
    treatments
    treatments
    Face
    BATH/SHOWER
    what categories are of future interest ?
    launch
    Types of Lip products: lipstick, gloss, tint, sheen/shine, balm, plumper, exfoliators; sticks, wands, pots, tubes
  • 46. background to Part B
    Hi there,
    Me again. Now that I have established in Part A) of my biz plan what I personally want my
    business to give me and have identified a market, category & brand offer to potentially fulfill this I am
    now creating ‘the recipe’ in Part B).
    I have lots more detail that sits in separate documents but here I have summarised. I love to
    share but there is a sensible limit! Eg my financial workbooks have full budget P&L by
    month, quarter and 3 years out built from the bottom up with comments and assumption
    on most entries.
    So I hope my recipe tastes good! Don’t forget to share what I am doing as I so believe I can
    build this little biz Online where so many busy mothers & / or working woman just me like spend their
    time.
    BTW launch is summer 2011/12.
    Enjoy a fresh approach to creating a beautiful new little brand,
    Cindy
    cindy@lukbeautifood.com
    www.lukbeautifood.com
  • 47. Part B) The Business Takes Shape
    The ‘beautifood’ Business
  • 48. who is Luken & Co Pty Ltd?
    Luken & Co. Pty Ltd is a start up niche beauty venture based in Sydney and founded by Cindy Luken in 2011 with the purpose of creating & marketing a single and manageable & profitable brand, luk beautifood.
  • 49. who will Luken & Co. be?
    Owner of the lukbeautifood brand, loved by woman for creating beauty food for skin & soul; delicious pure, natural makeup made from skin loving foods.
    2) Creator of the Beautifood, Beauty Kitchen & Beauty Cook concepts.
    Profitable ‘solo’ startup biz achieving gross sales of $250K year 1 with a net profit 20% . Ie $50K after tax (or $1000pw) ie
    - Stage 1 ( year 1) gsv $250K - self funded & managed, organic growth, sell direct online
    A business built with a strong foundation & flexible framework to
    easily scale up if & when desired. Iestage business growth & investment
    with potential to achieve $10m gsv pa
    Stage 2 (2-3 years) gsv $1m
    Stage 3 (3-5 years) gsv $10+m
  • 50. Our mission is to help cultivate passionate, beautiful individuals
    that dare to be themselves and follow their dreams. We will do
    this by inseparably intertwining food & beauty in natural and
    effective beauty products with inspiring, engaging support
    solutions.
    what will Luken & Co do? (mission)
  • 51. To develop, market & sell natural beautifood products made from
    the food active ingredients we (should be) eating daily to create,
    nurture, & enhance beautiful skin.
    To begin: skin delicious make up
    Later: digestible skin delicious beauty foods
    personal care body-beautiful products
     
    what is Luken & Co’s core business?
  • 52. what is Luken & Co’s business strategy?
    By outsourcing the infrastructure cost, risks and constraints in running an office, manufacturing, warehousing and distribution, build an easy to run, scalable, technology & marketing savvy business that focuses on building intimate and purposeful relationships with consumers.
  • 53. what are Luken & Co’s core capabilities?
    Physical Assets – No investment in operating fixed assets as business outsources business operations. Stock management strategy minimises holding investment & write offs whilst ensuring the customer is serviced. Aim to hold finished good stock (packaging & materials) only.
    Reputation / source of authority
    Cindy Luken - previous business successes: Luken & May, endorsement letters PR support, guest speaker and appearances, competitions & awards including honorary M.Sc, Professional Associations and Boards. Experience with beauty products & industry.
    Endorsements: from worldwide beauty industry managers, beauty editors & consumers
    Unique, innovative brand proposition
    Scientific alliances & advisors – research, product claims.
    Organisation – running a streamlined operation; outsourcing logistics and manufacturing & utilising the benefits of a virtual & serviced office. Focused, multi-skilled owner operator who believes in transparency & flexibility to enable the value chain to work for company & consumer.
    Financial - The business is simple. Purchase finished goods, add margin and promote and sell. We don’t have money tied up in plant and fixtures. Sell online with pre-payment + target high profile, secure debtors and manage creditors & debtors to keep cash flow positive. The founder can invest personal funds & as required has access to PE investors.
    Intellectual Property - Building ‘own’ brand & registered trademarks in target countries. Stakeholders embrace our culture of innovation, integrity, highest standards and customer dedication, they help manage our IP (assets) – customers and brands. We are market driven; together we identify and create the new opportunities, this process lives inside our business. We will have systems & operating manuals for all business areas.
    Technology- Is the tool that makes our business hum. A fully integrated online CRM, E-Commerce, ERP & accounting system provides an advantage over smaller, equally innovative SME’s. It provides information at our finger tips – cheap, accurate information in real time, on-time, anywhere, in a useable format to ALL members in our value chain. Collaborative consumption driven via social media platform is our vehicle for intimate communication, generating brand awareness and providing consumer insights & analytics. Sourcing packaging, contractors & researching the market has been made cheap, easy & effective.
    SpellsPROFIT
  • 54. what is Luken & Co. made of?
    8 Values are at the heart of what we think & do
    Passion: live what you love
    Nourishment: good food your body & soul
    Individuality: believe in yourself; be free to succeed
    Honesty: our word is our promise
    Beauty: surrounded yourself with inspiring & beautiful things, starting with nature
    Excellence: be the best where best is needed
    Time: to do the things a mother needs to do!
    People: our likers, our customers, our team, our family & friends.
  • 55. What are Luken & Co’s business objectives ?
    To:
    Launch Summer 2011
    Obtain gross sales of $250K year 1 with a net profit of 20%
    Achieve COGS below 25%.
    Cashflow +ve @ launch. Ie pre-sell
    Stage growth & investment: potential to achieve $10m gsv pa in 5 years
    invest minimum 20% in sales & marketing
    Keep product range simple – limit number of SKU’s
    Stock – keep at minimal levels. <10% turnover?; Stock turns at 10 pa or >. Min 12mth shelf life.
    Create an outsourced, streamlined and easy self managed business that can be run without regard to location
    Never compromise or fail on quality, reputation means everything. Service better than competitors. Build success on success of others. Reward those who help me.
  • 56. how are key risks managed?
    Capital is not tied up in large fixed assets such as manufacturing & logistics. This minimises initial investment, creates a market responsive business market.
    Outsource logistics, manufacture & serviced office. Streamlines operations enabling growth to be managed by keeping investment in people and space minimal & aligned to sales Positions the business to focus on what it does best – fully integrated sales & marketing. Commence from home with virtual /serviced office address on packaging & promotional materials.
    Operating in a high margin industry – keeps % gsv invested in stock minimised & provides funds to invest in A&P to communicate brand USP.
    Sales potential strong – product/brand offer suited to domestic and international markets. Target consumer volume extensive. ie everyone loves a lippy!
    Production volumes low with room to expand – selection of manufacture critical to ensure minimum stock buys in line with small startup needs + can grow with brand.
    Start up strategy – Key account/s with central distribution engaged during brand & product development to fund initial packaging stock purchase holding for luk brand
    Stock management strategy – limit number SKU’s. A core range will be supported extensively with promotional & limited editions. Run twice year clearance sales. Ensure SKU’s can be ‘bundled into kits & gifts cost effectively. Build margin around large proportion of stock being sold at promo/incentivised prices.
    Cashflow as per #6 + manage gap in debtors & collection to be low (<30 days). (note - as most sales will be direct to public – goods are paid before shipping)
    Raw material costs – onlyuse contractors where the raw material inventory is carried on the suppliers balance sheet (guarantee from Luken & Co) Note - business needs to reach critical mass b4: $500k t/o pa.
    Eggs not all in one basket. Post establishment, several contractor manufactures will produce products to maintain supply, manage capacity and keep pricing keen + provide pipeline innovative products. (note ~$500k t/o required before this can be applied due to run sizes) & provide a mix of products.
  • 57. what makes the business unique?
    1. Brand proposition
    • natural makeup made from food active ingredients and healthy colour
    • 58. creates a multi-sensory experience including taste
    • 59. harnesses the very essence of modern healthy eating – fresh foods brimming with delicious goodness
    • 60. helps cultivate passionate beautiful individuals that dare to be themselves and follow their dreams.
    2. Relationships:
    • with ‘likers’, customers, suppliers, stakeholders, industry and the marketplace
    3. Business strategy
    streamlined operation
    fully integrated online business system
    ease & flexibility to scale up
    4. Founder & manager
    – Cindy Luken
  • 61. what will the strength of the brand provide?
    Influence consumers to choose luk over our competitors
    Command higher prices & make bigger profits
    Gain consumer & customer trust and loyalty
    Deliver greater sales volume
    Encourage repeat business
    Beat the competition
    Build a pipe line of new products
    Increase market value of brand
    Attract stakeholders – vendors, media, people
    Create WOM (word of mouth)
  • 62. how does Luken & Co protect its IP?
    Own and protect its brand with international registered trademarks and website presence.
    business name, brand name, logo, product name, tag lines, promotional names & graphics.
    Speed to market, innovation – focus on looking and staying ahead.
    Select stake holders that share company values and vision and operate where needed with non-disclosure documents.
  • 63. part B) The Business Takes Shape
    2. The Brand
  • 64. BACKGROUND
    creating my brand’s heart & soul
    This section of the plan brings my new brand to life. There are many ways of doing this and each person or ‘agency’ has its own process; brand wheels, stars, hourglasses, values based techniques etc but as a small biz owner and self taught marketer who wants to keep things easy, cost effective and simple - I just mix my learning's from here and there.
    What matters is creating a heart & soul for lukbeautifood: defining what it is, what the glue is that holds it together, keeps it unique and why (hopefully!) it will be loved.
    There are 2 main parts that create the brand promise – what differentiates it & what make it relevant, followed by a summary & the final brand proposition/story.
    You wouldn't normally put this much info in a business plan – I have as I don’t have time to write a separate document. BTW - I never had info like this for Luken & May Biscuits until it was at least 5 years old & turning over $5mio +!
  • 65. what is luk’s source of authority?
    Unique, innovative brand proposition
    - made from food active ingredients good for your skin
    - culinary combine tastes & aroma
    - natural
    Cindy Luken - previous business successes: Luken & May honorary M.Sc, Professional Associations and Boards. Food science & nutrition education. Experience with food, beauty products & industry.
    Endorsements: professionals in industry, beauty editors & consumers
    Scientific alliances & advisors – research, formulation development, product claims, nutritionists
    Australian
    A) BRAND DIFFERENTATION
  • 66. what is the brand personality?
    delicious
    fresh
    inviting
    modern
    A) BRAND DIFFERENTATION
  • 67. What are the brand values?
    nurturing
    nourishing
    multi-sensory – especially taste
    healthy
    beautiful
    inspiring
    A) BRAND DIFFERENTATION
  • 68. what does luk do better than anyone else?
    A) BRAND DIFFERENTATION
    Creates natural, skin-healthy colour cosmetics from food active ingredients.
    Utilises the intrinsically powerful properties of the foods we should be eating daily to help create, nourish and nurture beautiful, glowing skin.
    Creates a multi-sensory experience including taste. Eg. Culinary combines oils & extracts of citrus, warming spices and herbaceous greens.
  • 69. what are the brand attributes?
    A) BRAND DIFFERENTATION
    • Natural
    • 70. Made from food
    • 71. Food actives
    • 72. Botanical
    • 73. No added nasties:
    • 74. no synthetic colours or fragrances or flavours
    • 75. no mineral oils or petrochemicals
    • 76. no preservatives except natural antioxidants to protect oils
    • 77. no genetic modification, antibiotics or hormones
    • 78. no sulphates
    • 79. No animal testing
  • A) BRAND DIFFERENTATION
    lukis NOT:
    • Eco green or pure organic story
    • 80. DYI - kitchen cosmetics
    • 81. Glitzy, Glamour or Sexy (brassy)
    • 82. Yoga and beans
    • 83. “Cheap”
    • 84. Cold & aloof / Ultra Minimal
    • 85. Clinical / just white
    • 86. Faddish
    • 87. Superficial or Artificial
    • 88. Exclusive
    • 89. An ingredient story
    • 90. Tacky food
    • 91. Food spa story
    luk is:
    • Foods from plants Eg seeds, grains, oils, fruits, green leaves,
    • 92. Fresh, simple, delicious
    • 93. Natural materials and finishes – both in ingredients & packaging
    • 94. Natural & wholesome with colour bursts: greens, blues, oranges.
    • 95. Tactile packaging and shapes
    • 96. Café chic food props – glasses, bowls, spoons, eating
    • 97. Tone of voice – Vital, Informative, Inspiring, Personal
    • 98. Healthy natural lifestyle
    • 99. Food science & nutrition platform
    • 100. The Beauty Kitchen™ (beautikitchen™)
    • 101. The Beauty Cook™ (beauticook™)
    • 102. beautifood™
    unique symbols & associations of the brand?
  • 103. what is the role of luk beautifood?
    Food for your skin & soul: provides a multi-sensory, skin delicious philosophy to makeup.
    Formulated to nourish, hydrate & illuminate your skin with an essential mix of food intrinsic nutrients and natural skin-healthy colours
    Harnesses the beauty of good food: its colour, taste, aroma, and skin healthy benefits.
    Harnesses the very essence of modern healthy eating (simple, fresh, balanced, delicious) and applies it to your beauty regime.
    Home of the ‘beauty kitchen™’ where you can learn how to nourish & nurture your body from the inside out & outside in.
    Woman can enjoy beautiful products without compromising their wellbeing or love of stylish things.
    To help cultivate passionate beautiful individuals that dare to be themselves and follow their dreams.
    A) BRAND DIFFERENTATION
  • 104. What does the brand do?
    B) BRAND RELEVANCE
    Functional benefits – what it does for me
    • Gently colours and enhances my face creating a beautiful healthy finish without looking made up.
    • 105. Feeds my skin with 100% natural food active ingredients.
    • 106. Feels amazing - so light & luscious you barely know you are wearing it.
    • 107. Allows me to live a more natural, healthy lifestyle.
    Emotional benefits – how it makes me feel
    • I feel good knowing I am taking care of myself - however small that may be.
    • 108. Beautiful - naturally
    • 109. Gives me confidence
    Expressive benefits – what it tells the world about me
    • I care and respect my body
    • 110. I know how important good food is for my whole body.
    • 111. I enjoy natural stylish things rather than glamour & glitz.
    • 112. I know beauty is more than skin deep
  • lukbeautifood|brand overview
    Good food nourishes your skin, nurtures your soul & fuels beauty from within.
    Philosophy
    Essence
    BEAUTY OF FOOD
    Values
    NURTURE | NOURISH I INSPIRE I MULTI-SENSORY I HEALTHY I BEAUTIFUL
    Personality
    DELICIOUS I FRESH I MODERN
    Functional benefits
    • Gently colours and enhances my face creating a beautiful healthy finish without looking made up.
    • 113. Feeds my skin with 100% natural food active ingredients.
    • 114. Feels amazing - so light & luscious you barely know you are wearing it.
    • 115. Allows me to live a more natural. healthy lifestyle.
    Emotional benefits
    • I feel good knowing I am taking care of myself - however small that may be.
    • 116. Beautiful – naturally
    • 117. Gives me confidence
    Expressive benefits
    • I care and respect my body
    • 118. I know how important good food is for my whole body.
    • 119. I enjoy natural stylish things rather than glamour & glitz.
    • 120. I know beauty is more than skin deep
  • who is our audience?
    • Female 25+
    • 121. Typically working &/or mothers
    • 122. Educated, technology savvy
    • 123. Increasingly busy – time poor, seeking balance, desires to be more active & healthy
    • 124. Goal oriented – career, family, travel, lifestyle
    • 125. Sometimes stressed – environmental, mental, physical
    • 126. Conscious of what she puts in and on her body
    • 127. May have allergies or skin sensitivities
    • 128. May be a foodie – loves and appreciates good food & taste
    • 129. Caring and nurturing of self and others and the place she lives in
    • 130. An eye for beautiful things – at accessible prices
  • who is a luk woman?
    Any woman who is happy & content with
    herself and motivated by her own inner strength and belief.
    She knows that beauty is really about the whole of you
    – how you look and feel, your attitude and actions.
    She is…
    creative, clever and inspirational
    knows what she wants
    honest and soulful
    caring and compassionate
    loves simple, delicious and beautiful things
    healthy, vital, loves life and who she is (most of the time!)
  • 131. To:
    • look and feel beautiful
    • 132. be vital & healthy - energised, radiant glow, fresh, unfatigued complexion.
    • 133. have a simple(r), more balanced life
    • 134. have peace of mind – to know the truth & get results
    • 135. be seen as clever & understated
    • 136. to be connected
    what does she want?
  • 137. what change in consumer behaviour do we want?
    We want customers to understand the scope of luk’s unique beauty food offering as well as the benefits of living a more natural & healthy lifestyle where food & beauty are inseparably intertwined.
    To show that luk is not just another piece of makeup but a deliciously beautiful, nurturing product that they can use, enjoy and get benefits from on a daily basis.
    We want them to have luk in their mind-set as a pure, natural make-up range made from skin-loving foods and by using it regularly they are feeding their beauty wellbeing.
     
    [lukbeautifood’s mission is to help cultivate passionate beautiful individuals that dare to be themselves and follow their dreams. ]
     
    .
  • 138. what categories will we be in?{brand stretch / biz growth}
    While LUK is entering the beauty market with a range of lip products, it is essential that the brand platform and identity is broad enough to allow LUK to add new products and lines.
    New products may initially be an extension to the lip range, but in future may include other body beauty products that may be used both internally and externally.
    The proposed tag line‘skin delicious make up & more™’ and the company mission and vision allow for future expansion.
  • 139. Outside in
    Food active colour cosmetics
    for everyday application
    Essential
    lukbeautifood™
    Skin delicious makeup & more™
    Beauty Kitchen™
    Recipes, menus, treatments,
    tips & tricks, library & reference,
    TV, video’s, books
    Giving
    Special packs or ltd edition
    Gifting to self or others
    Regular
    Use & Connection
    Special
    purchase
    Essential
    Inside out
    Food active infusions, shots
    & tonics for taking everyday
    What is the brand architecture?
  • 140. what is the brand positioning statement?
    luk beautifood enables busy working women &/or mums who understand the importance of what we
    eat & its effect on our health & wellbeing to care for their skin from the outside in with delicious,
    natural makeup made from food active ingredients and skin-healthy colour. Formulated to nourish,
    hydrate and illuminate, woman can easily apply a modern, pure food philosophy* to their makeup
    regime resulting in an effortless, contemporary look with a beautiful healthy glow.
     
    Lukbeautifood will be the home of the ‘beauty kitchen™’ where woman can learn how to nourish &
    nurture their whole body from the inside out & outside in with delicious beautifood™ recipes, fast food
    facts, and tips & tricks on how to feel & look beautiful and be the real you.
     
    Our mission is to help cultivate passionate beautiful individuals that dare to be themselves and follow
    their dreams.
     
    * Definition ‘Pure Food Philosophy’. A modern way of utilising the intrinsically powerful properties of the
    foods we should be eating daily to create, nurture and enhance beautiful skin.
  • 141. what is the product range?
    On purpose I have shared only a little info here to create a little
    surprise & delight on launch (not to mention protecting myself)!
    • small range of ‘lippies’ – nourishing, hydrating balm meets lipstick
    • 142. nude earthy colours & soft lustre for a naturally beautiful healthy glow
    • 143. culinary combined flavours: from oils of kitchen herbs and aromatic spices
    • 144. Menu of delicious ‘foodie’ variety names
    • 145. Elegant, soft-touch wind up printed ‘slimstick’, printed box or eco-chic ‘flow wrap’.
    • 146. purse and ‘pocket’ friendly for every day application
    • 147. subtle, not made up look for everyday wear : @home, dropping off kids, shopping, gym/whilst exercising, meeting friends, under bright ‘office’ lights
    • 148. ideal for when you don’t have time to wear anything but lippy, soft and subtle to apply without a mirror …cause you are on the run!
    • 149. Delicious little treat – an instant multi-sensory, active pick me up!
    • 150. rrp around $20
  • what is the product range?
    On purpose I have shared only a little info here to create a little
    surprise & delight on launch (not to mention protecting myself)!
    • small range of ‘lippies’ – nourishing, hydrating balm meets lipstick
    • 151. nude earthy colours & soft lustre for a naturally beautiful healthy glow
    • 152. culinary combined flavours: from oils of kitchen herbs and aromatic spices
    • 153. Menu of delicious ‘foodie’ variety names
    • 154. Elegant, soft-touch wind up printed ‘slimstick’, printed box or eco-chic ‘flow wrap’.
    • 155. purse and ‘pocket’ friendly for every day application
    • 156. subtle, not made up look for everyday wear : @home, dropping off kids, shopping, gym/whilst exercising, meeting friends, under bright ‘office’ lights
    • 157. ideal for when you don’t have time to wear anything but lippy, soft and subtle to apply without a mirror …cause you are on the run!
    • 158. Delicious little treat – an instant multi-sensory, active pick me up!
    • 159. rrp around $20.
  • What are the product cost targets ?
    I am still tossing up whether to share this or not online!!
    If you are interested, send me a message. 
  • 160. part B)
    3. Sales & Marketing
  • 161. background
    This is the best bit: how much do I need to sell to make money, where will the range be sold, and how do I plan to achieve the sales targets. (on 15 hrs pw of my time!)
    I have crunched numbers on sales targets (value & volume) product costs, sell prices and what I can afford to spend to support the brand.
    I have pulled together a ‘one pager’ on my promotional tactics and shared some ideas, some I will implement. I have not allocated tasks or times or costs, I will work the detail in a separate document, later.
    I’ve kept it simple; I think it paints a pretty picture!
  • 162. GSV ($AUS)
    Year 1 (FY 2012) $250k
    Year 3 (FY 2015) $1m
    Direct Sales
    (Online & other)
    Year 1 $250k (100%)
    Year 3 $500k (50%)
    via doors/stockists/portals
    (inc international)
    Year 1 $0k (0%)
    Year 3 $500k (50%)
    What are our sales targets?
    Product Assumptions:
    @ $19.95 rrp = 13,750 units pa = 1100pm
    @$24.95 rrp 11,000 units pa = 900 pm
    GSV = gross sales value
  • 163. Where will the product be sold ?
    Year 1: via Online. Target $250k GSV
    With the need to manage a simple backend coupled with
    consumers growing desire to purchase online, it opens up the
    opportunity to engage customers in a more direct, cost
    effective and meaningful way than through traditional
    stockists environments.
    How?
    Create an active & engaging website with online shop for
    domestic sales. Support with an intimate social media &
    word-of-mouth marketing strategy.
    Product to be stored, picked & packed in-house, when it
    becomes unmanageable, outsource to TPL.
  • 164. In future, how do we grow sales?
    Sales year 2&3 can be generated from increasing distribution & / or via increasing the
    product offer.
    New Products &/or categories:
    - lip products, cheek colour, eye colour.
    - Body care
    - digestible beauty products
    b) New Channels & /or Territories / Geography.
    TV Shopping
    Online portals – beauty, specialist,
    Traditional Retail (direct or via distributors)
    Speciality retail : Food, Health, Organic shops
    HomewareStores
    Department Stores – self select
    Hampers inc corporate gifting
    Chemists
    Beauty Salons
    Day and Residential spas
    Travel: Duty Free @ international airports; hotel room amenities or VIP gifts; airport lounges and business/first)
    4. Export / International
  • 165. Year 1 (FY 11)
    $55k
    22% GSV
    Stock
    Returns
    & ullage
    $2k
    Selling
    (consultants)
    $20k
    (8%)
    What are our ‘selling’ costs?
    Postage &
    handling
    $33k
    (13%)
    Trade Discounts
    $0k
  • 166. Year 1 (FY 11)
    $40K
    16% GSV
    NPD
    $5k
    2% GSV
    Merchand-
    ising
    $0k
    0% GSV
    Consumer
    Promotions
    $25k
    10% GSV
    Trade
    Promotions
    $0k
    0% GSV
    Advertising
    $OK
    0% GSV
    PR
    (Sampling)
    $10K
    4% GSV
    What is our marketing spend?
  • 167. What is our contribution (gm)?
    YEAR 1
    GSV (direct sales) = $250k
    COGS = $50K (40% on W/S sell price)
    SELLING COSTS = $55k (22%)
    MARKETING SPEND = $40k (16%)
    TOTAL COSTS (Before fixed expenses) = $145K (58%)
    CONTRIBUTION (Gross Margin) = $105K (42%)
  • 168. what is the market entry strategy?
    Key to start up is being cash-flow positive on launch/within Qtr 1.
    This will be achieved via a 2 prong strategy to pre-sell 10,000(!)
    lipsticks prior to placing purchase orders on stock – packaging &
    finished goods:
    Key account – trade / promotional
    Target a major brand in travel / hotel industry with brand or co-
    brand deal.
    This will commence as soon as prototypes are ready.
    2) Consumer Sampling campaign
    Generate pre-launch ‘first to buy’ orders with W-O-M promotional
    activity.
  • 169. how are sales targets achieved?
    Passion. Personal relationships. Knowledge. Technology!
    Utilise the power of social media & word-of-mouth-marketing. We will attract people, brands & businesses that reflect our values. See promotional plan.
    Backend, we will utilise technology to run the business in real time and efficiently. We will create intimate relationship with all stakeholders including contractors and suppliers to ensure supply of product. Orders, customers details and payments are customers entered.
    Our expertise is in developing and launching new products; budgeting, project management, and execution is a given to ensure timing, profit & stock targets are hit. (children getting sick excluded!)
    Budget allows for ‘sales consultants/freelance contractors’ to seek & find online consumer clusters prospects and who can assist in rolling out our social media strategy.
  • 170. how will we promote the brand?
    Advocacy
    Create advocate programmes & build loyal brandpartners (key opinion leaders) to refer brand and influence peers
    Sharing
    Create, contribute & interact with communities & connect people.
    Facilitate co-creation and information sharing.
    • Blog
    • 171. Twitter
    • 172. Facebook
    • 173. You tube TV
    • 174. forum
    Trial/Sampling
    Establish cost-effective online sampling.
    Build on-going
    network of
    brands, events,
    magazine, online contactsto initiate sampling
    & promotions
    Connection
    Grow strong personal relationships with consumers and enable consumers to ‘live’ the brand
    • membership
    • 175. intimate events
    Launch brand
    Unique, inspiring and engaging offer.
    Build brand awareness - offer needs to be unique, clearly & easily understood
    Get the brand into people’s hands (trial) & create and intimate 2 way dialogue
    Create sales online – bring prospects to our online boutique
    Build credibility within industry (beauty editors, foodies, scientists, nutritionists & associations)
    Build reputation amongst users
  • 176. What are some examples of promo activites?
    1. Competition prizes
    Partner e-newsletters, contra exposure in web & print media.
    Example – ABC Delicious magazine
    Miniatures for large volume requirements.
    2. High-profile brand partners
    Sourcingpartners to leverage off their success, add value and extend the product mix eg luk beautifood forMerivale Group Only
    3. Joining member-benefitprograms
    Special offers, competitions on web, email and DM.
    Examples -Virgin Mates Rates, ANZ Social Club, St George Instant Benefits, Advantage Card,
    Where to Enjoy.
    4. Shopping portal e-newsletters
    Product profiles, special offers, event-based gift ideas (Mother’s day)
    Examples - Wishlist, Yahoo Shopping
    5. Online female-skewed, wellbeing or food magazines
    Competitions, giveaways and special offers
    Examples - www.sw.com.au, New Woman, Femail.com.au and Girl.com.au,
  • 177. more examples of promo activites
    6. In-kind support of events
    Charities, popular events & womens’corporate breakfasts.
    Benefits
    Sampling opportunity
    Verbal acknowledgement and public presentation of giveaways/prizes/raffle items
    Logo on printed marketing collateral
    Inclusion of informational/branding collateral in goodie bags or at table placements.
    Examples
    Business Chicks Breakfast, Australian Institute of Management, CPA Women in Business
    7. ‘Deal’ sites, Coupons and Discount Offers
    Real Living, Shop Til You Drop
    8. Radio promotions/giveaways
    9. Synergistic partnerships
    Bundled packages, luk beautifood with health & wellbeing food brands
    Examples – T2
  • 178. part B)
    3. Operations
  • 179. what does our supply chain look like?
    A streamlined supply chain is required to enable easy management & quick personal response to
    customer needs.
    ORDER PROCESSING
    Startup: sales online / direct by consumer
    With growth: + key account management
    CONTRACT MANUFACTURER MANAGEMENT
    Start up: single site, Australia
    With growth: as required
    Partners to have:
    Production
    NPD / Technical Capabilities
    Export Capabilities
    Inventory Management
    &/or Gift Pack Assembly
    LOGISTICS
    Pick, pack & ship orders
    Start up: in house
    With growth:
    Outsource to 3PL
    Order fulfillment
    Single to bulk shipments
    + special requirements
    PACKAGING PROCUREMENT
    Start up: in house purchasing & management. Hold stock on luk balance sheet
    With growth: transfer to manufacturers
    SALES SERVICE
    Start up: in house,
    With growth: outsource to hand picked WAHM consultants
  • 180. how is our productmade?
    Product is contract manufactured in Australia by accredited facility: partner selection based on meeting capabilities for product type/styles, price, volume, lead-time & technical requirements. Experience in producing natural &/or organic products for EU & US markets is mandatory.
    Detailed technical brief inc volume & price targets are written by Luken & Co. to source & manage manufacturing partners
    Specifications are documented and monitored to ensure quality compliance.
    Forecasting models are driven off sales budgets & strategy reviews. Production leadtime times & volume requirements are understood.
    Shelf life minimum 12 months from date of production
    Until credit rating & relationship is establish product is pre-paid. 
  • 181. how is product quality assured?
    Our quality systems will form the backbone of our brand.
    Product formulation, packaging (inc legislative labelling requirements), ingredient, production facility and supply chain specifications are documented and monitored/audited to ensure quality compliance.
    Product complies with regulations, standards and guidelines from Agencies in Australia concerning cosmetics such as:
    Permissible ingredients: NICNAS. National Industrial Chemicals Notification & Assessment Scheme.
    Ingredient labelling requirements: ACCC. The Australian Competition & Consumer Commission
    NCCTG Guidelines concerning the cosmetic - therapeutic boundary in relation to advertising claims: National Co-ordinating Committee on Therapeutic Goods
    Industry Association: The Cosmetic. Toiletry & Fragrance Association of Australia
    General Advertising Claims: The Australian Competitor & Consumers Association
    Product Dossiers are prepared & maintained on each product.
    Shelf life trials, packaging & product stability & performance testing are conducted on all products prior to launch.
    Products are manufactured in compliance with a strict charter of ethics which guarantees that they are safe to use on even the most sensitive skin.
    Transparency on 100% of ingredients used in products to assist consumer choice, no regulations governs the use of the term ‘natural’ in Australian cosmetics.
    100% money back guarantee.
  • 182. how are our products developed?
    Consumer need identified.
    Product Development Brief scoped.
    Research of food ingredients and their functional role in formulations, attributes and benefit to skin conducted & tabled.
    Styles of products and packaging researched, collated & assessed.
    Bench top formulation development undertaken by Cindy Luken (B.AppSci Food & Nutrition + Hon MS) to create a unique product not pre-meditated by existing cosmetic players. [Inc. base/stick formulation (stability & performance), colour trials and flavour development.]
    Contractor Manufacture Selection strategy prepared. Potential partners identified, assessed & selected.
    Product prototypes developed: base then colours then application of flavours using proposed packaging conducted.
    Product Testing
    Production Trials
    Product Testing
    Consumer Testing
  • 183. how do we store and ship product?
    Packaging & unique ingredients are purchased by Luken & Co. Pty Ltd in minimum order quantities &/or of quantities suitable for production run & forecast requirements. Goods shipped direct to manufacturer.
    Initially finished goods are shipped to Luken & Co.P/L (est. <2 cubic meter) for individual order despatch via Australia Post.
    With growth, goods will be warehoused, picked, packed and shipped via 3PL. (outsourced logistics specialist). Combination of postage & couriers to ship goods within & outside of Australia will be used.
    Fully integrated online biz system will be used for managing raw materials, packaging & finished goods across multi-locations. Partners will have logins.
    Tracking systems for goods will be in place.
  • 184. part B)
    Finance & Admin
  • 185. where / how is the office set up & managed?
    Dedicated, fully equipped home office up & running.
    Once product development is complete a local, city fringe (Crows Nest) serviced office (using ‘virtual’ facility) will be set up to provide address for packaging, mail etc and contact number.
    This facility allows for
    biz growth – receptionist, meeting rooms, office, secretarial service etc.
    support when travelling or not available
    professional image
    working space away from kids / family when necessary
    work place hub / collaboration with other businesses and people
    café next door!
    Business model is created to limit labour intensive admin & has the ability to outsource roles (eg customer liason, order dispatch, book keeping, online marketing etc) as soon as required.
  • 186. who is on my team?
    Mefor now! Founder, sole director & employee. (see page 6 for CV)
    The business is setup to utilise the resources of others (of which I have an excellent ‘like-minded’ network) – many can operate from their ‘home office’ to grow sales & brand, source packaging or contractors, provide online support etc.
    Development of strong relationships with specific service providers is critical. Eg graphic design (logo, packaging design etc)
    Coupled with this a support team will be built – both private and government.
  • 187. how will the business be funded/manage growth?
    The business will be staged to correspond resources available – time & money (& energy!)
    @ Startup.
    Establishment & running costs are low, stock holdings however ‘cost’. Cashflow to be managed by pre-sell. ‘Cash safety net’ available to cover any timing shortfalls but it is mandatory to secure sales before committing to production.
    Credit exposure is minimal. Online orders pre-paid.
    If time is pressed with strong sales, margin is built in to cover assistance.
    First 3 years target are‘sensible’ & self funding.
    Detailed monthly & quarterly financials (P&L, Cashflow & balance sheet – Actual v’s budget) + strategy to attain figures & a review process will prepared to ensure I know where we are and what adjustments need to be made.
    Year 3 onwards – an Investment & Funding Strategy will be written based on what the business has achieved, what’s transpired and in what direction I want to take it.
  • 188. what are our financial targets?
    small is beautiful !
  • 189. what are our financial targets? - background
    P&L, Cashflow & Balance sheet have been prepared in detail.
    P&L has been prepared in an Excell workbook format to generate the key information required to manage the
    business. Figures can be easily changed to see various scenarios. Year one is by month with quarterly additions
    for tying into a strategy / review process. All accounts/line entries have been created so it can be used for
    entering into the ‘cloud’ backend system to run the business.
    To get to this point extensive investigation & research was conducted on rrp of compititor products, product
    manufacturing costs (packaging & fill), NPD, cost of insurance, trademarks, virtual office, postage, etc. Many
    costs were already known from experience, (tax returns, ASIC fees, bank charges, logistic, design, sampling,
    trade margins). Assumptions were made and documented.
    Simple ‘launch’ balance sheet was prepared to see key assets (stock holding values + account receivable on pre-sell) &
    liabilities (launch trade sale / accounts receivable exposure)
    Cashflow was created using a model already on hand.
    I am not sharing these detailed documents but are more than happy to email a stripped down model of what I have
    created.
  • 190. what is our exit strategy?
    None but thoughts that come to mind…..
    Business really needs to get to at least a $5mio turnover before it is of interest to potential buyer. Ball park value would put it at a multiple of 7-10 times ebit + stock.
    Potential buyerscould be
    Existing cosmetic or skin care brand with $20mio t/o who sells via doors and wants to get online & increase GSV & NP quickly.
    Beauty product distributor who want to add ‘ready made’ own brand to portfolio
    Online business wanting to vertically integrate &/or own a brand + benefit from data base.
    Party plan / direct selling business – add cosmetics to portfolio
    Contract manufacturer who has own brand portfolio
    Alternatively, bring onboard a equity partner/s
    Help grow & manage the business
    Share responsibility and risk
    Provide more ‘me/family’ time
  • 191. what next?
    Secure trademarks
    Develop product inc packaging design
    Source & liaise with manufacturer
    Lockdown brand graphics
    Design website & social media profiles/sites
    Research & set up backend operating system + biz process designs
    Product testing
    Prepare product dossier
    Design marketing support materials
    Prepare promotional plans & activity
    Pre-sell
    Manufacture product
    Launch product
    Sell, sell, sell
  • 192. conclusion
    Hi there, Wednesday May 4th, 2011
    I hope you enjoyed this very different approach to writing a business plan.
    It has taken a long time to get here – longer than you think as I actually had this idea in 2007, scribbled it down on a few bits of
    tatty paper, liked the numbers and immersed myself in the research of all things lipstick. So, between babies 1 & 2, the product
    concept was developed in my kitchen, a logo & graphic designed, a manufacturer sourced, packaging supplier found, & formal/
    laboratory NPD (new product development) commenced.
    Then, we (hubby, 10mth girl & 2yr boy) disappeared overseas for 18 months on a ‘grandevacance’ (planned 5 years pre-
    babies). The Product went thru testing and production trials via the lab & manufacturer and I created a ‘look’ (names, colours,
    images, tone & feel) whilst we were tied up on the banks of a French canal and the little ones slept.
    I had grandiose plans of launching whilst away but I severely under-estimated lots of things: unreliability of mobile internet in the
    countryside, utter exhaustion from biking & barging everywhere, being with friends & guest and just how special it was to be
    together as a family living day by day.
    So, everything was put on hold til I re-emerged in Feb 2011 and tried to work out how to set up and run this business so I & my
    family could continue to live the sweet life….and maybe in the future just take off again, home school the kids and enjoy life
    floating around together. (with better internet connection!!)
    There is a mountain of things that need doing and I need to pick up the pieces of where I left off but most importantly for my
    confidence & motivation by going through this process of writing my business plan I now feel I know where I am heading, what
    needs doing & how I’m going to do it.
    My biggest task ahead of me is going to be the pre-sell of my product so I can start this biz cashflow positive, so if you have some
    friends, family or colleagues that you think would love to follow my journey & use my beautifood products then please share with
    them my details so I can start my database of prospects for a Summer 2011/12 launch!
    Warm regards
    Cindy
    Cindy Luken
    cindy@lukbeautifood.com
    www.lukbeautifood.com (coming!)
    my biz startup diary: www.luk-bycindyluken.blogspot.com