Cosmetic Shop Business

Type: Retail.

Key Products for Sale:

1. Makeup products (nail polish, concealer, eye shadow, mascara, lipstick, etc.)
2. Hair care products (weaves, hair extensions, shampoo, conditioner, hair cream, etc.)
3. Skincare products (moisturizer, body lotion, age-defying cream, exfoliator, etc.)
4. Toiletry products (soap, deodorant, toothpaste, body perfume, etc.)

Technology Considerations:

1. Point-of-sale (POS) system for inventory management and sales tracking.
2. Online presence through social media platforms and a website for marketing and customer engagement.

Market for the Products:

1. General consumers interested in beauty and personal care products.
2. Professional makeup artists and hair stylists.
3. Beauty salons and spas.
4. Hotels and hospitality industry for guest amenities.

Key Inputs into the Business:

1. Startup capital for inventory, rent, utilities, and other operational expenses.
2. Location with high foot traffic and visibility.
3. Knowledgeable and customer-oriented staff.
4. Effective marketing and advertising strategies.

Product Preparation Process:

1. Regular stocking of inventory from wholesale suppliers.
2. Proper display and arrangement of products in the store to attract customers.
3. Ensuring products are well-labeled with prices and descriptions.

Quality Considerations:

1. Offering high-quality, authentic products from reputable suppliers.
2. Providing excellent customer service and product knowledge assistance to customers.

Cost of Investment:

1. Startup capital: Ksh 300,000
2. Beauty products inventory: Ksh 100,000
3. Furniture: Ksh 20,000
4. Rent and upfront rent: Ksh 50,000
5. Electricity expenses: Ksh 3,000
6. Salary for staff: Ksh 15,000
7. Computer and printer: Ksh 30,000
8. Advertising: Ksh 5,000
9. Licenses and permits: Ksh 20,000.

Required Operational Infrastructure:

1. Retail space with shelving, display units, and seating area for customers.
2. Adequate lighting and ventilation.
3. Security measures to prevent theft and ensure customer safety.
4. Back-office area for administrative tasks and inventory management.

Most Suitable or Viable Location of the Business:

1. Central business districts, malls, or plazas with high foot traffic.
2. Near beauty salons, spas, or hairdressing establishments.
3. Accessible and visible storefront with parking facilities.

Potential Sources of Investment Capital:

1. Personal savings or investments.
2. Small business loans from financial institutions.
3. Partnership arrangements with investors or business partners.

Requirements for Effective Management:

1. Regular monitoring of inventory levels and sales performance.
2. Staff training on product knowledge, customer service, and sales techniques.
3. Adherence to regulatory requirements and compliance with tax regulations.

Role of Mobile Phone and ICT in the Business:

1. Communication with suppliers, staff, and customers.
   2, Use of social media platforms for marketing and customer engagement.
2. Online ordering and delivery management for customer convenience.

Statutory Regulations and Licenses:

1. Business registration with relevant authorities.
2. Compliance with health and safety regulations for retail establishments.
3. Obtaining business permits and licenses for operating a retail store.

Pricing:

1. Competitive pricing based on market research and profit margin analysis.
2. Regular review of pricing strategies to remain competitive in the market.

Profitability:

1. Profit margin: 40%
2. Daily profit estimate: Ksh 3,000 – Ksh 5,000
3. Monthly profit estimate: At least Ksh 50,000.

Next Steps to Take:

1. Secure startup capital and finalize the business location.
2. Stock inventory and set up the store layout.
3. Hire and train staff members.
4. Develop marketing and advertising strategies.
5. Obtain necessary licenses and permits.
6. Launch the business and monitor performance regularly for growth and profitability