Are you about starting a makeup artist studio? If YES, here is a complete sample makeup artist business plan template and feasibility report you can use for FREE.
Makeup artists are creative individuals who use cosmetics to transform their clients depending on the occasion the client needs the makeup for. Usually, makeup artists work by themselves which makes it sometimes difficult for their income to be regular, except they go into certain niche areas such as carrying out makeups for models or becoming movie makeup artists.
Either way, a makeup artist in order to create a sustainable flow of income will need to be in as much niches as possible.
While this might be an artistry kind of task, making a business out of it would require following certain business rules just like any regular kind of business. While writing a business plan might seem difficult and intimidating for a creative individual, there are two options available to you.
You can hire a business plan writer to write one for you for a fee, but If however you are running on a tight budget, there are free business plan templates online that you can use in writing a comprehensive business plan for yourself. In fact, below is a sample makeup artist business plan template.
A Sample Makeup Artist Business Plan Template
1. Industry Overview
The social media and technology has caused evolutionary trends in beauty and this has made it easier for makeup artists to not only re-invent looks but also create innovative ideas, making the industry a fast-paced one. Makeup artists prepare actors for performances and also create special makeup effects.
Asides this, makeup artists also work in the fashion industry. Lots of opportunities exist in Los Angeles, New York, Chicago and Miami.
As at 2012, we had about 3,000 makeup artists, and most were employed by the motion pictures and television broadcasting industries. However, most of those who are employed are also self-employed, as their jobs usually last for a short period of time.
To become a professional makeup artist, training in a school of cosmetology is required and this can last between several months and a year. According to the united states Bureau of Labor Statistics, employment of makeup artists will grow slowly through 2022, when compared to other occupations.
The reason for this slow growth has been attributed to the fact that most makeup artists, especially those in the motion picture industries are being replaced by Computer Generated Imagery (CGI). According to Makeup artists and hairstylists guild, as at 2014, makeup artists averagely earned $44,310, with most paid hourly.
Makeup artists who however worked in mortuaries earned 22% higher salaries than their counterparts in other industries.
2. Executive Summary
Shae’s Touch Studios is a national and international makeup studio that is located in Bay Island – California here in the United States of America and intends to cater to corporate and domestic clients. We intend to offer makeup services and trainings to our clients, as well as other services in our line of business.
We are in business to not only make profit but also to compete favorably with similar business (startups or established) here in California and also all over the United States of America. Our vision is not only to meet the expectations of our clients and exceed it but also to become a national and international brand.
We intend to not only concentrate on our core offering; this means that we would be offering other services that are intended to boost our income and make us have a healthy bottom line in which to sustain our business. Our promotional strategies are top notch as we already have a popular channel on YouTube where we give tips and advice to our audience. We also give out trainings to our international clients.
Our customers are very important to us and so we intend to leave them fully satisfied with our services. We would be offering discounts and incentives intended to keep our loyal customers with us while also luring away clients from our competitors to us.
We have built a solid business structure because we intend to start with as few hitches as possible. We have sourced for competent and qualified staff who understand the business thoroughly and will do all they can to ensure that we get to the top. Our staff are the best in the field.
We have the best welfare packages for our employees better than what their counterparts are getting in similar startups such as ours. We also offer several other incentives to our employees as this is an effective way of ensuring that they remain motivated and dedicated to helping us achieve our goals and objectives.
Our Chief Executive Officer, Ms. Shae Lannister is a renowned makeup artist who has made up several celebrities both here in California and other states as well. She has several certifications and is always pushing herself to achieve more. She therefore understands what paths we need to follow to help us get to the top and achieve all our corporate goals and objectives.
3. Our Products and Services
Shae’s Touch Studios intends to deliver to its customers various services and products from its primary location here in Bay Island – California. Even though our core source of income is making up our clients, we intend to consult for our clients and also train them as well.
All the different services that we intend offering and the profits to be made from them are all under the permissible laws of the United States of America. Below are some of the services we intend to offer and the products we intend to sell;
- Offering of makeup services (for weddings, special occasions, on movie sets) to our various clients
- Sale of our own makeup products produced by us
- Distributing for branded products
- Trainings
- Consultancy and advisory services
4. Our Mission and Vision Statement
- Our vision is to ensure that we not only meet but exceed the expectations of our clients no matter what those expectations are.
- We also intend to become a national and international brand by the year 2019.
- In achieving our vision, we intend to hire creative makeup artists who are also instinctive and understand what it is our clients want, and ensure that they get what it is they want.
Our Business Structure
Having a solid business structure is very important to our business and we take it very seriously because we know that this would allow us start and run our business with as few hitches as possible. Our plans are to run a standard makeup studio and so we intend to get it right from the beginning so that things can flow seamlessly, and that is why we are looking to employ only the best to work with us in our makeup studio.
Because of the standard that we have set for ourselves, we are willing to ensure that we employ competent and hardworking staff who understand our business specifically and the industry at large so as to take our business from where we are to where we ought to be.
Also, the staff we employ must be dedicated and ensure that they communicate our brand positively at all times. However, due to the fact that we are going to be offering varied services more than a regular makeup business, we intend to hire more staff than conventional to be able to handle the various positions and tasks that is likely to crop up during the course of running our business.
Shae’s Touch Studios will go all out to ensure that our business structure is solid. Below therefore is the business structure that we intend to build at Shae’s Touch Studios;
- Chief Executive Officer
- Admin Manager and Human Resources
- Production Manager
- Makeup Director
- Quality Assurance Manager
- Accountant/Cashier
- Marketing and Sales Executives
- Front Desk Officer
- Store Manager
- Cleaner
- Driver
5. Job Roles and Responsibilities
Chief Executive Officer
- Takes key decisions and actions that would affect the overall growth and sustainability of the business
- Ensures that organizational policies are effectively implemented
- Drafts the budget and ensures that it achieves full implementation
- Meets with valuable clients on behalf of the company
Admin Manager and Human Resources
- In charge of ensuring that all the administrative functions of the business run smoothly
- Recruits competent employees on behalf of the studio
- Ensures that employees receive great welfare packages and also undergo trainings as at when necessary
Production Manager
- In charge of certain projects undertaken by the studio
- Ensures that the brand makeup produced by the studio is standard industry-wise
Makeup Director
- In charge of all makeup artists in the studio
- Creates and sources for profitable niches on behalf of the company
- Is updated on industry trends so as to meet and exceed the expectations of clients
Quality Assurance Manager
- Ensures that make-ups gotten are of high standard
- Liaises with brands and ensures that the company gets the best deals
Accountant/Cashier
- In charge of preparing account and financial statements on behalf of the firm
- Ensures that tax documents are accurately prepared and sent to the right authorities
- Ensures that the books of the company are reconciled with that of the bank and that all details are correct.
Marketing and Sales Executives
- Conducts market research to determine new target markets on behalf of the company
- Drafts and implements effective marketing strategies on behalf of the company
- Conducts one on one marketing and sales on behalf of the company
Front Desk Officer
- Attends to all enquiries, bookings, complaints and feedbacks from clients
- Should be updated on industry trends and organizational policies so as to offer clients accurate information
- Keeps an accurate and updated customer database on behalf of the company
Store Manager
- Ensures that all the products are intact and accounted for
- Ensures that the store remains well ventilated and secured at all times
- Ensures that light repairs and maintenance are carried out as at when due
Cleaner
- Ensures that the premise is kept clean at all times
- Ensures that cleaning supplies are always in stock
- Carries out any other duties as might be determined by the administrative manager
Driver
- Helps deliver and supply products to the studio
- Carries out light maintenance on the vehicle when and where necessary
- Carries out any instruction by the human resources manager
6. SWOT Analysis
Due to our intention of ensuring that we run a standard makeup business, we have engaged the finest business consultants here in Bay Island – California to help look through our business concept and determine how likely we are to succeed in the business we intend starting.
The business consultant looked through using a popular analysis that allows businesses know how likely they are to survive in the business they are going into and how favorably they would compete against competitors in the same industry,
In view of this, our strengths, weaknesses, opportunities and threats we were likely to be exposed to while starting our business here in Bay Island – California as well as all over the United States of America, were judged. Below is the result of the SWOT analysis that was thoroughly conducted on behalf of Shae’s Touch Studio.
- Strengths
Our strengths lie in the fact that we are offering several makeup services at the same time to our various customers, allowing us to meet the diverse needs of our customers.
All our makeup artists are not only well trained but have professional certifications as well, which means that we are more than likely to not only met but exceed the expectations of our customers, because we are able to handle whatever requests they may have.
Our other staff are also competent, dedicated and understand that we do not only want to be a national brand but an international one as well, and are working hard to ensure that we achieve this.
We have great welfare packages for our employees leading them to remain motivated to our brand and also ensuring that our customers retain loyalty to our brand through the attitude of our staff. Also, our chief executive officer is not only very experienced but has the necessary contacts that will help us quickly achieve our objectives.
- Weaknesses
We are a relatively new business and as such we have not yet gained much depth into the market as we would have liked. We also do not have all the staff or the finances necessary to deliver all the services we hope to deliver.
- Opportunities
Makeup is used for a variety of purposes from weddings, occasions to movies and so much more, and so there are many opportunities available for us in this industry as more target markets that would require our services are yet to be tapped into by us. Also, the growing economy means more people will be willing to patronize our services or buy products from us.
- Threats
There are several threats that we face as a growing company such as an arrival of a major competitor to the same location we are operating from leading to a reduction in the number of customers we are likely to have. Also, an economic downturn is likely to be a threat to our businesses because this would mean more people trying to apply makeup themselves than approaching a professional to help them out.
7. MARKET ANALYSIS
- Market Trends
Makeup is not really a new occupation as it has existed from time past, the only difference now is that it has become an occupation where makeup artists have to not only learn to recreate looks and make their clients into what they want to be but also ensure that their clients are satisfied and have their expectations not only met but exceeded.
Also, due to the different seasons, makeup artists have to learn appropriate makeups for each season as well as occasion. California is a glamorous place because most celebrities reside here, from movie stars to artistes and other kinds of celebrities and so would always require the services of make-up artists for whatever reason.
This would require any makeup artist intending to start in the California area to network and partner with some fashion designers so as to get the needed clients.
Finally, technology has come to play a huge role in the makeup industry as makeup artists can try out makeup shades on faces in the computer and know which look might likely fit their client before meeting the client. This has led to a high level of satisfaction for both parties.
8. Our Target Market
Almost everyone uses makeup especially for special occasions, events and other purposes and therefore require the services of a make-up artist to be able to get the look they want. While women might chiefly look like our target market, but we cannot restrict our target market to just this group.
In view of this, we have conducted a market research in order to fully understand the market we intend entering and what we should expect from our target market, while also having an idea of what they would be expecting from us. To this effect, we therefore are in business, from our findings to offer our services to the following group of people;
- Celebrities
- Actors and actresses
- Children
- Movie stars
- Brides
- And every other uncategorized target market
Our competitive advantage
We understand the power of makeup and our intention is therefore to build a business that is not only a national brand but an international brand as well.
Our intention is to become the preferred company for our target market not only here in Bay Island but all over California as well as the whole United States of America. To however achieve this, we have several competitive strategies in mind.
We are going to be offering diverse services in our Makeup Studio, this means that we would not only make customers up for weddings, special occasions, on movie sets but we will also sell products that our clients can use and also offer trainings and consultancy services as well.
Another competitive advantage we have is the vast experience of our management team. This experience is highly necessary as it means that all the management staff understands how to help make our brand the best not only nationally but also internationally.
Our management staff also understands our corporate foundation and culture and will do all it can to ensure that this culture is understood and implemented by the lower end staff. Another competitive advantage is the fact that our customers’ expectations are not only met but exceeded as well, leading to high customer satisfaction, retention and loyalty.
Lastly, our employees are also our internal customers and are treated right because this would make them remain motivated and dedicated to the company. We ensure that our employees are well paid and that they have other benefits that make them better than their counterparts in similar industry such as ours all over the United States of America.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Shae’s Touch Studio just like any other business has been established with the sole intention of making profit that will be used in growing and sustaining the business here in Bay Island – California and also all over the United States of America and even beyond our country’s borders.
We therefore intend to generate income by offering the following services and selling the following products;
- Offering of makeup services (for weddings, special occasions, on movie sets) to our various clients
- Sale of our own makeup products produced by us
- Distribution of branded products
- Trainings
- Consultancy and advisory services
10. Sales Forecast
Everyone makes up, but the usage might differ depending on the preference of the individual and the occasion; this therefore means that there will always be demand for either makeup products or makeup application services.
California is a dream place for any makeup artist as not only are there more glamorous individuals here, there are also more celebrities, which means that we are optimistic of meeting our set target within eight months of starting and growing our business, due to the strategic location which we selected.
After critically examining this industry and our chances of making it, using several data and assumptions from similar startups such as ours; we were able to come up with the following sales forecast. Below therefore are the likely projections that we have determined for Shae’s Touch Studios based on several facts and data that were made available to us;
- First Fiscal Year-: $300,000
- Second Fiscal Year-: $500,000
- Third Fiscal Year-: $900,000
N.B: It should be noted that the projections done by us were based on what is obtainable in the industry as at the time the data and assumptions were gathered from similar businesses such as ours.
The assumptions used were that we would not experience any major economic meltdown that will allow less patronage from our customers and that there won’t be an arrival of any major competitor in the same location we are offering our business.
Should any of the assumptions change, it would have an effect on the figures posted which could either result into an increase or decrease.
- Marketing Strategy and Sales Strategy
While generating capital and choosing a suitable location for our makeup business is highly important, marketing is also very important as well because if we do not thoroughly market our business, we would not only fail to attract customers to patronize our services but we would also not generate revenue to grow and sustain our business.
Marketing not only generates revenue and brings in more customers for a business, it is also a way of ensuring that the company is positively communicated to the public and can also effectively compete against its competitors in the industry.
Because of how serious this aspect of business is, we have hired a marketing consultant who is not only reputable but who has vast experience regarding our type of business in order to help us conduct thorough market research that would allow us penetrate the market.
The information gotten would then be used to structure our business in such a way as to attract the customers we need. The marketing consultant will help us develop our marketing strategies so that we will be able to attain our goal of not only penetrating the market but getting a huge chunk of the target market to patronize our brand and services.
We have also empowered our marketing and sales team to draft and modify effective marketing strategies that will help deliver our corporate sales goals. This way we would conveniently grow and sustain our business effectively. In summary, below are the sales and marketing strategies that would be adopted by Shae’s Touch Studios;
- Start by throwing a mock makeup contest grand opening party in order to increase our awareness in the community where we intend starting our business.
- Introduce our makeup business to corporate bodies, individuals and other stakeholders in the industry.
- Engage in direct marketing and sales.
- Encourage our loyal customers to refer our brand to others.
- Market our brand online via our social media platforms (Facebook, Twitter, Instagram and Snapchat) as well as on our website and other related blogs.
- Ensure that we advertise Shae Touch Studios in local newspapers and magazines, and on radio and television stations as well.
11. Publicity and Advertising Strategy
Having the right publicity is very paramount to our kind of business and this involves exploring all the means necessary via conventional and unconventional methods. Ensuring that we get the right publicity for our business so that we could effectively compete with brands whilst also becoming a force to reckoned with in the industry; has led us to hire a brand consultant.
The brand consultant who has a vast knowledge of how to promote businesses such as ours will help develop publicity strategies that will deliberately project our brand and ensure that our target market are easily able to differentiate our brand from that of our competitors.
The publicity and advertising strategies will also help to effectively communicate our brand to our intended audience. Below are the platforms we intend leveraging on in order to promote and advertise Shae’s Touch Studios;
- Use social media platforms such as Instagram, Snapchat, Facebook and Twitter to promote our business
- Use Youtube to showcase our training sessions so as to attract more customers
- Attend several conventions and participate in several seminars in order to promote our brand
- Throw contests online in order to promote our brand
- Ensure that our staff members wear our company’s customized tee-shirts either in the store or during field work
- Distribute our handbills and fliers in strategic locations
12. Our Pricing Strategy
Setting the right rates for our products and services is very important because not only do we want to be affordable to our target market but we also intend to boost our bottom line sufficiently to enable us sustain and grow our business.
This means that the rates we would set for our services will be one that will take a whole lot of factors into consideration such as location, our overhead and running expenses, as well as what our competitors are offering. However, because we are relatively new to the market, we intend to offer discounted rates for our products and services for the first three months of operations.
This is intended to attract more customers to our business during these months. After taking a careful look at what our overhead and running expenses would be for these three months, we are optimistic that even though we would generate less revenue, we would not be running at a loss during this period.
- Payment Options
Because we intend to cater to diverse customers, we have come up with payment options that would suit all our various customers’ preferences here at Shae’s Touch Studios; Therefore, the payment options that we will make available for all our customers are;
- Payment via cash
- Payment via check
- Payment via Point of Sale (POS) Machine
- Payment via online payment portal
- Payment via credit card
The above payment options were carefully chosen by us and will work with no hitches for our customers whilst also allowing us achieve our intended goals.
13. Startup Expenditure (Budget)
Every business that is a start-up requires capital in order to run the business and acquire the standard it intends for its business.
Whilst capital generation is key, deciding where to spend the bulk of the capital is also important. Therefore the bulk of our capital will be used to pay the salaries of our employees, pay utility bills and also to lease a facilityl. The key areas where we will therefore spend our start-up capital on are;
- Total fee for registering the business in the United States of America – $750
- Fees for obtaining licenses and permits, accounting software and specialized certifications – $2,250
- Cost of hiring business consultants – $3,000
- Marketing and promotion expenses for the grand opening of the makeup studio as well as general marketing expenses – $7,000
- Insurance coverage (general liability and Workers Compensation) – $2,000
- Operational expenses for the first 4 months (salaries of employees and payment of utility bills) – $120,000
- Cost of leasing a facility for at least 1 year and carrying out renovations – $30,000
- Cost of start-up inventory (professional makeup kits) – $15,000
- Cost of store equipment (cash register, racks, security and signage) – $5,000
- Other start-up expenses including stationery and furniture – $2,500
- Cost of purchasing a fairly used van – $15,000
- Cost of launching a website – $500
- Cost of throwing an opening party – $5,000
- Miscellaneous – $5,000
From the above analytical breakdown, it is obvious that we would require the sum of $213,000 in order to successfully startup and run a makeup business here in Bay Island – California. It should be noted that the amount is huge due to the different services we intend to offer. Also, the bulk of the capital will go into paying salaries of our employees and utility bills for at least 4 months.
Generating Funding/Startup Capital for Shae’s Touch Studios Business
Shae’s Touch Studios is a business owned and run 100% by Ms. Shae Lannister, a professional make-up artist. Ms. Shae has no intentions whatsoever to bring in any external partners to run the business with her. This has led her to restrict the sourcing of her capital to three major sources.
Below are the sources where Ms. Shae intends to source her start-up capital from;
- Generate part of the start-up capital from personal savings
- Source for soft loans from friends
- Apply for loan from the commercial bank
N.B: Ms. Shae has been able to gather the sum of $50,000 from her personal savings. She got the sum of $13,000 from friends and has the sum of $150,000 approved by the bank after several documents were signed to that effect. The loan is to be repaid in 7 years at the rate of 3%. The amount is due to be credited to her business account before the week runs out.
14. Sustainability and Expansion Strategy
Every serious entrepreneur starting off their own business do so with the intention of not only making profit and competing fairly against its competitors but also remaining in business for as long as possible. To ensure that a business is sustained and eventually grows, there are a number of factors that would need looking into such as the loyalty of customers, the reinvestment strategy of the business and its business structure.
Customers are the reason a business exists and generates revenue especially a service oriented business, and so we know how valuable our customers are and what to do to ensure that we retain at least 80% of those who patronize our services.
We also know how beneficial it is to reward our loyal customers especially those who refer us to others. We have discount programs in place for our loyal customers and several other incentives that will ensure that we grab a huge share of the market.
Our motto is to not only know what our clients want and meet these needs but to positively exceed their expectations. We would be offering different services in order to cater to our diverse clients so as to boost our earnings and increase our bottom line.
To this effect, we intend to take strict measures by reinvesting a percentage of our earnings back into the business. This is a sure way of ensuring that the business is adequately sustained.
Finally, we know how important having a solid business structure is and how it would allow us have as less hitches as possible when we start off our business and to this effect, we have sourced for qualified and competent hands to handle the various tasks that we would assign them.
Our staff are not only proficient but they have identified with our corporate mission and vision and are committed to ensuring that we achieve our corporate goals and objectives. We intend to take great care of our staff pay them better than their counterparts in similar startups such as ours. We believe that these three factors will by no means help in our sustainability and expansion objectives.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Application for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed