A nail polish line business refers to a company or brand that produces and sells a variety of nail polish products. It involves creating and marketing a collection of nail polishes with different colors, finishes, and formulations to cater to the preferences and needs of customers.
Running a nail polish line business typically involves several key aspects, including product development, manufacturing, branding, marketing, and distribution.
Available statistics show that the global nail polish market grew from $11.57 billion in 2022 to $12.96 billion in 2023 at a compound annual growth rate (CAGR) of 12.0 percent. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.
Steps to Write a Nail Polish Line Business Plan
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Executive Summary
Eliana Finbarr’s© Nail Polish Production Company, Inc. is an American-based and licensed nail polish line that aims to revolutionize the beauty industry. We will provide high-quality, vibrant, and long-lasting nail polishes that empower individuals to express their unique style and personality.
With a focus on sustainability and inclusivity, we are committed to delivering products that not only enhance the beauty of our customers’ nails but also promote environmental responsibility. Our production facility will be located in a well-furnished, well-equipped, and centrally located production facility in the heart of Boulder, Colorado.
Eliana Finbarr’s© Nail Polish Production Company, Inc. is poised to disrupt the nail polish market by offering a unique combination of quality, sustainability, and inclusivity.
With a dedicated team, a compelling product line, and a well-executed marketing strategy, we are confident in our ability to capture a significant share of the market and establish ourselves as a leader in the industry. Eliana Finbarr is the founder and CEO of Eliana Finbarr’s© Nail Polish Production Company, Inc.
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Company Profile
a. Our Products and Services
At Eliana Finbarr’s© Nail Polish Production Company, Inc., we offer a comprehensive range of nail polishes featuring an extensive color palette, including classic shades, on-trend hues, and innovative finishes. Our formulas are free from harmful chemicals, such as formaldehyde, toluene, and DBP, ensuring a safe and non-toxic experience for our customers.
Additionally, we utilize sustainable packaging materials and implement eco-conscious manufacturing practices to minimize our environmental impact.
b. Nature of the Business
Our nail polish line business will operate the business-to-business model and in some cases business-to-consumer business model (retail outlets and end users).
c. The Industry
Eliana Finbarr’s© Nail Polish Production Company, Inc. will operate in the beauty and cosmetics industry. Specifically, it falls under the subcategory of nail care products within the broader beauty industry.
d. Mission Statement
At Eliana Finbarr’s© Nail Polish Production Company, Inc., our mission is to empower individuals to express their unique style and creativity through vibrant and high-quality nail polishes. We strive to provide a diverse range of colors and finishes that cater to all skin tones and preferences.
With a commitment to sustainability and inclusivity, we aim to inspire confidence and self-expression while promoting environmental responsibility within the beauty industry.
e. Vision Statement
Our vision at Eliana Finbarr’s© Nail Polish Production Company, Inc. is to revolutionize the nail polish industry by becoming a global leader in innovative and sustainable beauty products. We envision a world where everyone can freely embrace their personal style and enhance their self-expression through our vibrant and long-lasting nail polishes.
f. Our Tagline (Slogan)
Eliana Finbarr’s© Nail Polish Production Company, Inc. – We are Your Plug for Nail Polish!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Eliana Finbarr’s© Nail Polish Production Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Production Manager
- Human Resources Manager
- Accountant
- Salesmen and Saleswomen
- Machine Operators
- Cleaners
i. Ownership / Shareholder Structure and Board Members
- Eliana Finbarr (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Doris Bush (Board Member) 18 Percent Shares
- Chris Nolan (Board Member) 10 Percent Shares
- Eden Basil (Board Member) 10 Percent Shares
- Joyce Praise (Board Member and Secretary) 10 Percent Shares.
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SWOT Analysis
a. Strength
- Our nail polishes offer excellent coverage, vibrant colors, and long-lasting durability, providing a superior product experience to our customers.
- We offer a wide selection of shades and finishes that cater to various skin tones and fashion trends, ensuring inclusivity and satisfying diverse customer preferences.
- Our commitment to eco-friendly packaging and manufacturing processes positions us as a socially responsible brand, appealing to environmentally conscious consumers.
- We emphasize inclusivity, empowering individuals of all genders, ages, and backgrounds to express their personal style and feel confident.
b. Weakness
- As a new player in the market, we may face challenges in establishing brand awareness and competing with established competitors.
- Building and expanding our distribution channels, such as partnering with retailers and salons, may require significant effort and resources.
- Setting competitive yet profitable price points while considering the cost of high-quality ingredients and sustainable practices can be a challenge.
c. Opportunities
- The global nail polish market is expanding rapidly, driven by increasing beauty consciousness, fashion trends, and the influence of social media, providing ample opportunities for market penetration and growth.
- Leveraging the power of online platforms and e-commerce can help reach a wider customer base and enable convenient product accessibility.
- Collaborating with beauty influencers, bloggers, and industry professionals can enhance brand visibility, generate positive reviews, and attract new customers.
- Introducing additional nail care products, such as topcoats, base coats, and nail treatments, can expand our product offerings and increase customer loyalty.
i. How Big is the Industry?
Trust me, the market for nail polish is massive in the United States of America and all across the globe. This can be supported by the fact that the global nail polish market grew from $11.57 billion in 2022 to $12.96 billion in 2023 at a compound annual growth rate (CAGR) of 12.0 percent.
ii. Is the Industry Growing or Declining?
Yes, the nail polish line of business is a growing business and the major factors driving the growth of the global nail polish market include developing economies and strong social media influences. Interestingly, the industry will experience a compound annual growth rate (CAGR) of 12.0 percent in 2023.
iii. What are the Future Trends in the Industry?
The nail polish industry continues to evolve with emerging trends and consumer demands. Consumers are increasingly seeking nail polishes that are free from harmful chemicals like formaldehyde, toluene, and DBP. Non-toxic and clean formulations, often labeled as “5-free” or “10-free,” are becoming more popular as people prioritize their health and well-being.
Nail polish brands are recognizing the desire for customization and personalization. Offering options for creating custom colors, mix-and-match sets, or personalized packaging allows customers to express their individuality and create unique nail looks.
Social media platforms like Instagram, TikTok, and YouTube continue to shape beauty trends, including nail polish. Influencers and nail artists showcasing their unique designs and techniques influence consumer preferences, leading to increased interest in specific colors, finishes, or nail art styles.
Lastly, technology is finding its way into the nail polish industry with developments like UV/LED curing systems, smart nail devices, or mobile apps for virtual try-on experiences. These technological advancements enhance convenience, durability, and the overall user experience.
iv. Are There Existing Niches in the Industry?
No, there are no existing niche ideas when it comes to the nail polish line business.
v. Can You Sell a Franchise of Your Business in the Future?
Eliana Finbarr’s© Nail Polish Production Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America and Africa.
d. Threats
- The nail polish industry is highly competitive, with numerous established brands and emerging players competing for market share and customer attention
- Rapidly evolving beauty trends and customer preferences may pose a challenge in staying relevant and adapting to shifting demands.
- Adhering to regulations and standards for cosmetic products, such as ingredient restrictions and labeling requirements, is essential to ensure legal compliance and consumer safety.
- Economic downturns or fluctuations in disposable income may impact consumer spending on non-essential beauty products, potentially affecting sales.
i. Who are the Major Competitors?
- OPI
- Essie
- Sally Hansen
- China Glaze
- Zoya
- Butter London
- Orly
- CND Vinylux
- Deborah Lippmann
- ILNP (I Love Nail Polish)
- JINsoon
- Smith & Cult
- Nails Inc.
- KL Polish
- Revlon
- Morgan Taylor
- Sinful Colors
- NCLA
- Ella+Mila
- Cirque Colors.
ii. Is There a Franchise for the Nail Polish Line Business?
No, there are no franchise opportunities for the nail polish line business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Nail Polish Line Business?
In the United States, the nail polish line business is subject to various policies, regulations, and zoning laws. While it is important to consult legal professionals and regulatory authorities for specific requirements in your locality. The U.S. Food and Drug Administration (FDA) regulates cosmetics, including nail polishes, to ensure their safety.
Nail polish manufacturers must comply with FDA regulations regarding ingredient labeling, product claims, and good manufacturing practices.
The FDA prohibits the use of certain ingredients in cosmetic products. Nail polish formulations should not contain substances like toluene, formaldehyde, dibutyl phthalate (DBP), camphor, and certain colors that are not approved for use in cosmetics.
Nail polish products must meet specific labeling requirements, including the accurate listing of ingredients, product weight or volume, manufacturer or distributor information, and cautionary statements if necessary. Compliance with the Fair Packaging and Labeling Act is crucial.
Nail polish manufacturing processes may involve the use of chemicals and disposal of waste. It is essential to comply with federal, state, and local environmental regulations regarding the handling, storage, and disposal of hazardous materials.
Depending on your location, there may be zoning laws that dictate where you can operate your nail polish line business. Zoning regulations may affect the operation of a production facility or retail store. Additionally, you will need to obtain the necessary business licenses and permits required by your local jurisdiction.
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Marketing Plan
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to purchase nail polish from us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those that will purchase our nail polish.
iii. Income Level
There is no cap on the income level of those that will purchase our nail polish.
iv. Ethnicity
There is no restriction regarding the ethnicity of the people that will purchase our nail polish.
v. Language
There is no restriction when it comes to the language spoken by the people that will purchase our nail polish.
vi. Geographical Location
Anybody from any geographical location is free to purchase nail polish from us.
vii. Lifestyle
Eliana Finbarr’s© Nail Polish Production Company, Inc. will not restrict any customer from purchasing nail polish from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Official Vehicles and Delivery Vans.
- Tap Into Text Marketing.
- Make Use of BillBoards.
- Share Your Products Adverts in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the beauty care and cosmetics industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Eliana Finbarr’s© Nail Polish Production Company, Inc. will make sure it covers profits, insurance, premium, transportation, and the full package. In all our pricing strategy will reflect;
- Penetration Pricing
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
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Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the beauty care and cosmetics industry, and freelancers to help refer customers to us.
Eliana Finbarr’s© Nail Polish Production Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need nail polish-making raw materials such as solvents, film formers, pigments and colorants, plasticizers, resins, thickeners, UV stabilizers, and packaging materials means that Eliana Finbarr’s© Nail Polish Production Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
Eliana Finbarr’s© Nail Polish Production Company, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that Eliana Finbarr’s© Nail Polish Production Company, Inc. will make available to her clients;
- Bank Transfers
- Cash
- Credit or Debit Card
- Checks
- Electronic Payment Systems such as PayPal or Venmo.
d. Return Policy, Incentives, and Guarantees
At Eliana Finbarr’s© Nail Polish Production Company, Inc., our customers are our top priority hence if you receive a nail polish product that is different from your receipt, we will sincerely apologize and take back the nail polish. But the nail polish must be unopened, unused, and in its original packaging for a return or exchange to be eligible.
We will implement a loyalty program where customers earn points for their purchases, which can be redeemed for discounts or free products in the future. We will also offer special discounts or bundle deals where customers can purchase multiple nail polish products at a reduced price.
We will provide a satisfaction guarantee that assures customers that if they are not satisfied with the product’s performance, they can receive a refund or exchange.
We will also assure customers of the high quality and effectiveness of the nail polish by offering a guarantee against any defects or performance issues. Please, if you have any questions regarding the Return & Refund Policy, please call our customer care officer.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients.
We will work with effective CRM software to be able to achieve this. On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
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Operational Plan
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer-ship deals that will enable the firm to boost our nail polish sales and support revenue growth.
a. What Happens During a Typical Day at a Nail Polish Line Business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swing into action (production of nail polish)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
b. Production Process
The production process of nail polish involves several key steps:
Formulation: The first step is to develop the nail polish formulation. This includes determining the desired color, finish, and characteristics of the polish.
Mixing: The raw materials are then measured and mixed in specific ratios to achieve the desired consistency and color.
Quality Control: During and after the mixing process, quality control checks are performed to ensure the formulation meets the desired specifications. These checks may involve color matching, viscosity testing, and other quality parameters.
Filling: Once the formulation is approved, the nail polish is filled into individual bottles or containers. This can be done manually or through automated filling equipment. Labels and other branding elements may also be applied at this stage.
Packaging: After filling, the nail polish bottles are packaged in boxes or other packaging materials for protection and retail display.
Labeling and Regulatory Compliance: Each bottle must be labeled according to regulatory requirements, including ingredient listing, weight or volume, manufacturer information, and any necessary cautionary statements.
Quality Assurance: Throughout the production process, quality assurance checks are conducted to ensure the nail polish meets safety, performance, and quality standards. This involves testing for stability, adhesion, drying time, and other performance characteristics.
Storage and Distribution: Once the nail polish is packaged and quality-checked, it is stored in appropriate conditions to maintain its integrity. The finished products are then distributed to retailers, wholesalers, or directly to consumers through various channels.
c. Service Procedure
Orders received from customers, distributors, or retailers are processed and prepared for shipment. The appropriate quantities of nail polish are packed, and shipping labels and documentation are prepared.
d. The Supply Chain
Eliana Finbarr’s© Nail Polish Production Company, Inc. will rely on key players in the beauty care and cosmetics industry to patronize us or refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of nail polish raw materials.
e. Sources of Income
Eliana Finbarr’s© Nail Polish Production Company, Inc. makes money from selling a comprehensive range of nail polishes featuring an extensive color palette, including classic shades, on-trend hues, and innovative finishes.
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Financial Plan
a. Amount Needed to Start Your Nail Polish Line Business?
Eliana Finbarr’s© Nail Polish Production Company, Inc. would need an estimate of $220,000 successfully set up our nail polish line business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $11,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $1,400.
- Rent/Lease – $105,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up Inventory – $35,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Furnishing and Equipping the Product Factory – $100,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $5,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Eliana Finbarr’s© Nail Polish Production Company, Inc. will not build a new facility for our nail polish line business; we intend to start with a long-term lease and after 7 years, we will start the process of acquiring our own production facility.
d. What are the Ongoing Expenses for Running a Nail Polish Line Business?
- Nail polish-making raw materials and supplies
- Utility bills (gas, internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Machine and equipment maintenance
- Insurance
- Marketing costs.
e. What is the Average Salary of your Staff?
- Chief Executive Officer – $55,000 Per Year
- Production Manager – $45,000 Per Year
- Human Resources Manager – $35,630 Per Year
- Accountant – $35,000 Per Year
- Machine Operators – $27,100 Per Year
- Salesmen and Saleswomen – $26,000 Per Year
- Cleaners -$24,000 Per Year
f. How Do You Get Funding to Start a Nail Polish Line Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
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Financial Projection
a. How Much Should You Charge for Your Product/Service?
The price of our nail polish will be based on the number of cartons, type, and size of nail polish supplied to wholesalers.
b. Sales Forecast?
- First Fiscal Year (FY1): $280,000
- Second Fiscal Year (FY2): $340,000
- Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $130,000
- Second Fiscal Year (FY2) (Profit After Tax): $200,000
- Third Fiscal Year (FY3) (Profit After Tax): $280,000
d. Profit Margin of a Nail Polish Line Business Product/Service
The ideal profit margin we hope to make at Eliana Finbarr’s© Nail Polish Production Company, Inc. will be between 10 and 40 percent depending on the type and size.
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Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Eliana Finbarr’s© Nail Polish Production Company, Inc. will grow our nail polish line business by opening production factories in Africa.
b. Where do you intend to expand to and why?
Eliana Finbarr’s© Nail Polish Production Company, Inc. plans to expand supply outlets to Miami, Florida, Houston, Texas, New York City, New York, Oklahoma City, Oklahoma, Chagrin Falls, Ohio, Kaysville, Utah, Cedar Rapids, Iowa, Las Vegas, Nevada, Los Angeles, California and Dallas, Texas.
We intend to expand to these locations because available statistics show that the cities listed above have the highest thriving market for nail polish in the United States.
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Exit Plan
The founder of Eliana Finbarr’s© Nail Polish Production Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.