Belle

Megan Prough

Taryn Adcock

Sarah Klebe

Belle

Executive Summary

Entering an established cosmetic retail industry, Belle will attract the attention of a large niche of customers with our philanthropic business model. Our main mission in joining this 10 billion dollar industry is to boost our sales so we can donate 10 percent of our sales to Look Good Feel Better, an organization that boosts the self-esteem of women undergoing radiation and chemo treatments by teaching them makeup techniques and beauty routines targeted to their personal needs. Selling to women at our storefront in West County Center, we believe our one-on-one consultation and sales of high-end cosmetics such as Mac, Tarte and Smashbox will increase the amount of money we can donate directly from our sales to Look Good Feel Better.

We will maximize our marketing efforts by using free social media sites such as Facebook, Pinterest and Twitter, which are all widely used by our market demographic. Belle will also utilize cancer support events and fundraisers as a way of raising awareness for our company’s partnership with Look Good Feel Better and to raise money to support it. Once we achieve significant growth in profit at both our storefront and online, we will expand our product lines to include personal care products for men. In addition to expanding our client base, we hope to franchise our company to several storefront locations across the United States in major cities.

Belle will support the local community by utilizing the relationship formed with Jim Adcock, a loan officer at People’s Bank, by taking out an SBA Guaranteed loan in addition to an Operating Loan in later years for further company expansion.

Belle will thrive in the cosmetic retail industry due to the three main executives and their individualized disciplines. Ms. Prough will establish the company financially and will handle all accounting and financial aspects of the business, as she will be obtaining her CPA license. Ms. Adcock will lead the company into the well-established industry by running marketing campaigns and by coordinating company executives and employees. Ms. Klebe will utilize her writing skills in the marketing department, and will also act as the company’s philanthropic liaison with our partner Look Good Feel Better and will establish the company’s Human Resource Department with her knowledge base in Human Development Counseling.

Market Analysis

With 13,000 stores in the cosmetic retail market that have combined revenue of 10 billion dollars annually, the cosmetic industry is definitely profitable. Belle will join this cosmetic retail industry, but instead of simply selling for profits, our mission is to boost the self-confidence and morale of women suffering from cancer. In order to set ourselves apart from the industry and to benefit women going through chemo and radiation treatments, we will donate 10 percent of our sales to the Look Good Feel Better foundation.

As we donate portions of sales to the corporation, we will be supporting the mission statement of the foundation: “Look Good Feel Better is dedicated to improving the self-esteem and quality of life of people undergoing treatment for cancer. It is our aim to improve their self-image and appearance through complimentary group, individual, and self-help beauty sessions that create a sense of support, confidence, courage, and community.” Our products will help support the beauty programs held by Look Good Feel Better, in which they teach women with cancer certain beauty techniques and provide lessons to help boost self-image.

Competition

Our competition within the industry takes up 26% of the market share, which includes stores such as Ulta, Sephora and divisions of The Limited. Cosmetic retail companies, like the ones mentioned previously, market and sell multiple brands of high-end cosmetics such as, Mac, Loreal, Smashbox, Tarte, and Urban Decay, to women at a suggested retail price. As a 10 billion dollar industry in America, our goal for the first year of business is to obtain 5% of the market share and to earn a total profit of at least $100,000. With this starting goal in mind, we plan on donating 10% of sales to women suffering from cancer, hopefully donating $10,000 during our first year of business.

Target Markets

Belle plans on catering to all demographics of women, which intensifies our mission plan as a company to promote women helping other women. Due to a general market analysis, we will be marketing mainly toward women between the ages of 16 and 65. This population of women is reported to shop for cosmetics approximately five times a year, spending about 43 dollars each time. If we supply products for the women in these age groups, we will be able to attract a larger population of women. With our storefront in West County Center in St. Louis, Missouri (and online, as well) we will be targeting middle-to-high income women who shop in this shopping center. Because the average woman is said to spend 15,000 dollars in her lifetime on cosmetic products, we are only catering to the needs of women as we launch our business. However, once we have established ourselves as a successful and philanthropic corporation, we will definitely consider widening our target market by providing a men’s line within our company.

Pricing and Discounts

Like many in the cosmetic retail industry, we are planning on selling our products at a mark-up of 80% in order to donate money to cancer patients while still making a profit. Although the pricing does not set us apart from our competitors, the philanthropic use of sales truly distinguishes us as a company in a multi-billion dollar industry. Belle will attract women who are willing to pay a slightly higher retail price in order to donate 10 percent of what they spend to help other women.

Company Description

In order to meet the needs of our marketplace, Belle will provide one-on-one customer consultation in order to provide a more personal shopping experience. Along with this personal atmosphere and consultations, we will fill a niche in the cosmetic retail industry by providing a cosmetic company that focuses on helping other women by donating to Look Good Feel Better. Our storefront location in the upscale West County Center will attract high-income women which will lead to higher profits and larger donations.

Marketing & Sales Activities

Belle plans on penetrating the cosmetic retail market by providing established, quality products with a portion of the sales going to Look Good Feel Better. We will distribute our products through our storefront location and our online website. However, once we achieve significant growth, we will be in the position to take on more risk through franchising. We also plan on acquiring more of the market share by providing a men’s product line through horizontal integration once we have significant growth.

Communication

Belle will take advantage of advertising business on many social media sites such as Facebook, Twitter, and Pinterest. The company will also stress the relation between business and its support of Look Good Feel Better by advertising and promoting business at many cancer-support benefits, fundraisers, and rehab centers. Making a visible presence within the community fighting for the cure will allow us to take an active role in supporting those suffering, all while advertising Belle to the women it will benefit most.

Products & Services

As a customer of Belle, women will receive quality consultation during storefront visits and will have multiple high-end cosmetic brands to choose from, whether shopping in the store or online. While receiving quality products, women will also have the satisfaction of helping other women boost their self-esteem through our partnership with Look Good Feel Better. With each purchase, our customers will know that a portion of their money is being donated to help women with cancer. Our customers will not have to be concerned with Belle meeting their individual needs, as our store will sell financially stable and well-established brands that will always be supplied as long as there is demand.

As Belle grows as a part of the cosmetic retail industry, we plan on trademarking the name “Belle” in order to be formally recognized with donating a percentage of sales to Look Good Feel Better. The trademark will highlight our company in the makeup market and hopefully establish us as a philanthropic company, similar to TOMS.

Not only will Belle be trademarked as we achieve growth, we will expand the variety of brands sold to our customers, both online and in stores. Along with including a larger selection of cosmetics, we will expand retail by selling hygiene and personal care products for men once we attain a significant profit margin.

Operations

As stated previously, Belle will sell through both our storefront and website. For online orders, we will provide door front delivery (at UPS rates), at the customers expense of shipping and handling. Our company will not require means of production, but will establish relationships with several cosmetic companies in order to purchase and sell their products. We will stock inventory with the most popular products that our suppliers have in the market. This relationship with cosmetic producers will give us a competitive advantage because we will sell well-known and established brands instead of attempting to create a new cosmetic to sell in the established market.

Financial Data

Because Belle is start up business, we do not have any historical financial data for our business. Megan Prough, a member of Belle’s management team, will complete her CPA degree in the near future. Therefore, we will not have to incur the expense of hiring an accountant, as Ms. Prough will be in charge of the Accounting Department. Belle has been approved by Jim Adcock, a Loan Officer at People’s Bank and Trust, for an SBA guaranteed loan. This is a loan backed by the government. Consequently, the government will pay 85% and the bank will pay 15%. Our lender encouraged us to take this route because if, in fact, our business fails, then the bank would not lose 100% of the loan. Choosing a lender was an incredibly important decision for the management team of Belle. After careful consideration, we chose to use a community bank because it is essential to support local businesses. Not only that, but Belle has an established relationship with our lender, which has been built on trust and friendship over many years. In addition to the SBA guaranteed loan, we will fund our venture by taking out an additional Operating Loan for the first year. Depending on how much Belle profits during our first year, we can renew that loan the next year for more or less than the first loan amount, depending on our situation. We do not want to sustain a large amount of debt during this process, so we believe that SBA guaranteed loans and operating loans are the most efficient way to fund our business venture.

Management and Ownership

Our Mission: To change the way you buy makeup.

Our Motto: “We don’t want to change the product, we want to change the experience by helping women with cancer reclaim what the disease took away from them--their confidence.”

Taryn Adcock is currently a Sophomore at Illinois College in Jacksonville, IL. She will graduate in May 2016 with a major in Management and Organizational Leadership studies with a focus in Marketing, along with a minor in Accounting. She grew up on a farm in Assumption, Illinois. Her family raises and shows purebred Hereford cattle. She currently serves as a director on the National Junior Hereford Board of Directors, Vice President of the Illinois Junior Beef Association and Secretary of the Illinois Junior Hereford Association. During her time at Illinois College, she has been involved and holds a leadership position in Enactus, works in the admissions office as a Student Ambassador and helps plan activities for the students on the Student Activities Board. When asked why she is a beneficial addition to the Belle management team, she replied:

“My education from Illinois College and the leadership experience I have gained from serving on boards at the state and national level, have given me the skills and knowledge I need to help lead our team into an established industry. Having experience in marketing and advertising, I feel will be very useful in our ongoing campaign to promote and expand Belle.”

Sarah Klebe enrolled at the Liberal Arts institution, Illinois College, in Jacksonville, IL in 2012. She will graduate in 2015 with a Bachelor of Arts in English Literature, along with a minor in entrepreneurship. Throughout her college experience, Sarah seasoned her writing skills along with her business background at her job and through internship experience. She discovered aspects of non-profit organizations in addition to grant writing techniques during her time as a worker for the Director of Corporate and Foundation Relations at Illinois College. Additionally, Sarah spent the summer of 2013 as an intern for H. D. Smith, where she became familiar with SAP software, company-wide training systems, and utilized her writing skills as an editor for training manuals. Once she completes her undergraduate degree, Sarah plans to attend the University of Illinois-Springfield to obtain a Master’s of Human Development Counseling. When asked why she is a beneficial addition to the Belle management team, she replied:

“I believe communication, both written and verbal, is absolutely essential to the foundation and success of any business. My ability to write, while understanding the nature of a corporation and the industry, will prove useful in marketing and promoting the company, and while communicating throughout the company itself. And, hopefully, once I receive my Human Development Counseling certification, I could also be very useful in the Human Resource department if our company expands. Versatility and being able to adapt is key.”

Megan Prough a native of Carrollton, Illinois will lead Belle’s financial data with the expertise she gained while a student at Illinois College. In 2016, Megan will graduate with a triple major in Accounting, Economics and Finance .After completing her undergraduate degree, Megan plans to attend the University of Illinois-Springfield in order to earn her Master’s of Business Administration. Megan also plans on taking the Certified Public Accountant test once she has completed her Business Administration degree program. When asked why she is a beneficial addition to the Belle management team, Megan said:

“What I can bring to Belle is not only my education, but most importantly, it’s the experience and success I have had while working with a variety of small and large companies. In 2014, I gained valuable knowledge working alongside a CPA during the tax season at Pedigo Accounting. In the summer of 2014, I will be an intern at H. D. Smith in the Accounting department, where I will gain invaluable work experience that I will be able to apply to Belle.”

Belle’s Management Organizational Chart

The organizational chart above shows the simple breakdown of Belle’s current management team. Before opening our store, we will be searching for an appropriate legal team for our unique business model and will hire a limited number of employees in order to keep costs as low as possible. During the startup of our business venture, we are willing to take shifts at the storefront in order to keep costs as low as possible in the beginning. As leaders of this company, we are planning to see the business grow rapidly within the first 3-5 years and will hire employees as needed. Belle will search for quality individuals with a background in cosmetics or sales. Due to the extensive training that will be required for employees, we are looking to make an opportunity investment in each employee we hire.

Taryn Adcock will be in charge of the Marketing and Advertising Department. With a Marketing degree, Ms. Adcock will prove to be a great asset to our team by making sure our product is represented in a way that is appropriate. Her duties will be to design Belle’s marketing campaigns (instead of contracting out) in order to keep costs low.

Megan Prough, president of Finance and Accounting will oversee all business duties from payroll to paying taxes. With her MBA and CPA, she will have much to contribute in business decisions within our company. Having Ms. Prough as a part of our team ensures that Belle will have great quality when it comes to making financial decisions for the company.

Sarah Klebe will be president of Media Relations as well as customer/employee relationships. Her primary duties will be to manage our online sales in addition to analyzing what our customers want and need through social media. It is important to alway keep service a top priority and this will be one of Ms. Klebe’s primary duties, as well as figuring out the best ways to meet the needs of our clients and of our partners at Look Good Feel Better. She will be a great asset to the team due to her passion regarding our mission to help women, and because her people-skills always shine through.

Belle will be starting out as an S-Corporation due to the tax benefits and tradeoffs that come with this status. We do not want to start as a C-corporation because we would have to pay corporate taxes as well as taxes on any salary we pay ourselves and dividends we would pay to an investor. With an S-corporation we can avoid the double taxation, but have the option to advance if we reach a point in which we would like to expand Belle. We plan on having a limited partnership so that we can protect ourselves and the company if there is a fall in sales or otherwise.

Our well-planned business model and our motivated management team, along with our philanthropic partnership with Look Good Feel Better, will certainly set Belle apart from the competition within the cosmetic retail industry. Not only will these aspects of our company prove to penetrate the market, but they will also prove to be extremely successful and will allow women to help other women with cancer to reclaim their self-esteem and feel beautiful again.