Unique Beauty Supply (photos may be blurry and unviewable on Safari Web Browser)
Table of Contents
1. Executive Summary
2. Company Background
4. The Industry, Competition and Market
5. Marketing Plan
6. Operating Plan
7. Goals and Strategies
8. Financial Assumptions
9. Financial Projections
1. Executive Summary
Unique Beauty Supply is a startup multi-ethnic beauty supply store to be located in Broussard, Louisiana. The purpose of this business plan is to support its request towards scaling and expanding the business.
1.1 Business Opportunity
Unique Beauty Supply is a retail beauty supply store serving the immediate community of Broussard. Unique Beauty Supply primary customers are African American however we will meet the needs of all residents in the community by diversifying our product mix. Unique Beauty Supply will focus on creating a one-stop, full-service shopping experience for the consumer market in Broussard with products and equipment from various lines; available as maintenance products for consumer sales to men, women and children.
1.2 Product/Service Description
Unique Beauty Supply will offer an extensive line of beauty supplies, approximately 2,000 sku's (stock keeping units). Product categories will include shampoos, conditioners, relaxers, hairdressings, electrical equipment, salon apparel, accessories, commercial hair, wigs, and styling tools will be carried. Sales are primarily walk in, with additional sales supplemented by licensed beauty professionals, institutional sales (B2B) (schools and salons), and a website with fully functional e-commerce capabilities in the future.
1.3 Financial Potential
This is a unique opportunity to create a business which combines existing business structures to offer convenience for the end user and ultimately the professional customer with a variety of lines not normally carried in many beauty supply stores, along with a staff that is knowledgeable about the products. This is an industry that is still within a growth phase with substantial cash flow. Key elements for success in this business are to manage inventories effectively as trends and style preferences change, and that the business is well equipped to change along with the preferences of its customer base. Although no business is recession proof, this is a proven market where health, beauty & hair care is not considered a luxury, but a necessity. This plan will show how the business can be a very profitable venture in a 1-3-year time-period with the ability to handle debt service comfortably.
1.4 The Offer
Unique Beauty Supply Lafayette, LLC is offering the opportunity to invest money towards shares in the Company. These funds will be used to execute our marketing plans and working capital as well as scale and expand the business.
2. Company Background
Unique Beauty Supply Lafayette, LLC was formed in Louisiana on April 13, 2020, by sisters Jamesha Delcambre and Aja Clark for the purpose of owning, operating, and developing beauty supply and services stores worldwide. The Company will initially acquire an ownership interest in the currently operating store in Broussard, LA.
Unique Beauty Supply Lafayette
My name is Jamesha Delcambre and I’m 34 years old. I graduated from Westgate high school in 2004 and I’m a mom of 4. I have 2 girls Kortland Jeanlouis & Rhionnona Jeanlouis and 2 boys Karon Jeanlouis & Ricardo Jeanlouis Jr.
My certifications aren’t in hair but it is in medical!! My certifications are in Dialysis Technician and Phlebotomy Technician! I’ve always wanted to be a help to people in need! I have 5 years experience in retail. As a black Woman, hair is our crown, and like a queen we need to take care of our crown. This is where my love of hair comes in.
For many women like me, finding the right products can be a game and very hard. Seriously you never really know what products are going to work.
My journey into this world has been a very interesting and informative one. My visions for this business is to expand as much as I am able to. I’ve always envisioned myself as being in charge, running a successful business and now that opportunity has presented itself! I refuse to fail at it. I promise to have the best costumer service while also being able to help them in any way I can to have a satisfied customer. I want people to be able to just call and feel comfortable asking questions they have need answers to when it comes to hair and beauty products!! Overall I have a love for this and I refuse to let it or any of my team fail.
In Store Services Manager
Unique Beauty Supply Lafayette
Growing up my mom was terrible at styling hair. I mean she tried, but the outcome was always horrendous. When she realized that hair was not her thing, she reached out for help from family and friends. Even then, I found myself miserable with the outcome of my hairstyle. My hairstyles were bad and as a result of that I was bullied throughout elementary school. Over time, I watched and learned different techniques so that one day I could style my own hair.
Before entering high school, I began styling my own hair. Of course, it was hit or miss many times, but it helped me advance my skills. I did my very first sew-in style on my sister at the age of 16. This was before there were “Youtube” videos available to teach you anything. It wasn’t the best sew-in, but it wasn’t terrible either. From there I started doing quick weaves, and gradually learned more skills and improved my techniques. As new hairstyles were developed, I was interested in how to do the styles rather than who did them. I, often, regret not attending cosmetology school when I reminisce on the history of my love for hair and beauty.
While attending high school, I discovered my passion for the criminal justice system and helping others. Criminal Justice won the battling by the time I graduated. I enrolled in college and majored in criminal justice. Shortly after, I sat out several semesters because I was not certain of my future goals. My husband supported my plans to switch paths and attend cosmetology school, but I still had doubts. My doubts stemmed from knowing multiple hair stylists who left the cosmetology field, in their late thirties, for other fields. Therefore, I went back to school and completed my degree in Criminal Justice.
After completing my degree, I realized that continuing my education was a must. However, I was no longer interested in working in the Criminal Justice field. At that time, I was working as a Mental Health Specialist which appealed to my passion for helping others. I was able to help clients cope with the stress they faced in life. Throughout my 3-year tenure, as a Mental Health Specialist, not one of my clients were every hospitalized due to their illness. Unfortunately, I had to make the tough decision to leave the company. The mental health field required me to spend too much time away from my babies. And being a good mother will always be my main priority. This is when I decided to enter the education field. By working in education, I am privileged to have the flexibility in my schedule to spend quality time with my husband and children, help others, and do hair and make-up.
When I look back, I truly believe that the paths I have taken has led me up to this point. I know that I have a lot to offer our store. I possess great communication skills which creates a positive environment for others to feel comfortable enough to open up to me. When it comes to hair, I have tried many products and brands, so I am able to give unbiased suggestions to customers. I also love make-up and skin care products. Not only do people want awesome hair, but they want beautiful skin. I know we are not where we aspire to be, yet, but we will be in the future! When it comes to the store, in general, I know it will take hard work to bring in customers. It will also require creativity and dedication to gain a competitive advantage and retain our customers. I have so many business ideas that I have been concealing that will be beneficial to the store. I cannot wait to bring them to the table and see them come to fruition!
Founder, Unique Beauty Supply
The Unique Beauty Supply Brand was founded by Elizabeth Zuniga in 2018 and currently operates a retail storefront in Broussard, LA. Elizabeth is a business owner that is passionate about beauty, business, and giving back to her community. She is a leader and a mentor to young women hoping to become future business owners. Elizabeth is also very close to her family. During her spare time, she loves to participate in outdoor sports, water sports, and spend her time at the beach. She is from Bronx, NY and she currently resides in Miami, FL.
Elizabeth is the owner of Unique Beauty Supply and a US Army Reserve Soldier. She joined the Army in 2010 as an Active Duty enlisted soldier serving for the US Army Public Health Command. She then went on to continue her education and commission in the US Army Reserve as a Human Resource Officer in the Adjutant General Corps in 2018. Before fully becoming an officer, she worked at US Southern Command as a student intern. She is currently serving as an Army Reserve Administrator and Strength Management Officer.
Elizabeth obtained an Associates of Arts degree in Business Administration from Miami Dade College in the Spring of 2016. In the summer of 2018, she obtained a Bachelor of Business Administration in Management from Florida International University. She is currently working on her Master of Business Administration in Human Resource Management at University of Louisiana at Lafayette. With only three courses remaining, and she is projected to graduate in 2020. She currently has a 3.85 GPA and is in the process of joining the Society of Human Resource Management (SHRM).
2.1 Current Position and Business Description
Unique Beauty Supply mission is to provide exceptional quality hair extensions, wigs and products at competitive prices to consumers. We strive to set an example of a well- run business that serves our customers as well as the community at large.
Our customers are our first responsibility. Our products and merchandise are aimed to help people in our community to grow together in ever changing upcoming beauty trends. It is our aspiration to become their one stop shop beauty retail provider.
By providing exceptional customer service combined with competitive pricing and a growing product mix; our goal is to create a one stop shopping destination where all urban beauty supply needs will be met. We aim to ensure that every customer has a pleasurable, unique shopping experience and leaves with the best beauty products to meet their needs.
Unique Beauty Supply will operate and grow at a profitable rate through sound economic decisions and a strong knowledge base of the products and work ethic. We will employ a knowledgeable staff to work in a pleasant environment reaching out to the larger consumer market. Unique Beauty Supply will provide an outlet for beauty professionals and the do-it- yourself consumer with a quick & courteous over-the-counter experience.
Unique Beauty Supply Lafayette, LLC is owned by sisters Jamesha Delcambre and Aja Clark, dedicated entrepreneurs committed to the success of the business.
Jamesha Delcambre: 50% Owner
Aja Clark: 50% Owner
The sources for Unique Beauty Supply products are as follows: Jinny Beauty Supply, Carib Sales Distribution, Bee Sales and TWT Distribution. All four suppliers are large distributors which buy direct from manufacturers for the purpose of resale, and they do not sell to the consumer market. Almost all of the manufacturers' products we will utilize are represented by each, with Jinny and Bee Sales being the largest. Where economies of scale exist, direct purchasing from manufacturers will be pursued. In addition, electronics and other fixtures will be purchased direct from manufacturers and distributors. Additional lines purchased direct, will be added as business dictates. The products sold at our retail outlet will be products with existing patents used and trusted by millions of consumers and the manufacturers have been in business for decades.
3.1 Product Overview
Unique Beauty Supply will carry well known ethnic beauty brands as shown in the list below as well as some popular brands that are not widely available in ethnic beauty supply stores such as Miss Jessie’s, Design Essentials and Jane Carter. We will have a wide but targeted selection of products in all of the various brand families to avoid excess inventory in slow moving brands. Product mix will be determined through available market share data, and coordination with suppliers, specifically on return policies to enable us to fine tune and rebalance our inventory as a pattern of sales velocity can be established.
Sample of Brands We Carry:
3.2 Competitive Analysis
Broussard has a strong consumer base for beauty supply stores. This market consumes over-the-counter products and uses beauty styling equipment. Unique Beauty Supply will utilize unique customer service techniques by training employees to enhance every customer experience when they enter the store; this will generate a loyal repeat customer base. A friendly atmosphere mixed with an in-depth cultural understanding of ethnic beauty products will result in strong customer retention numbers despite competition in the area.
Our competitive edge will be our beauty service offering of wig/hair styling and delivery service within a specified area. Our niche’ will organically grow as we learn more about the needs of our customer base, however, to start we will incorporate extended operational hours on Friday and Saturday. This option is currently not available in our market.
4. The Industry, Competition and Market
4.1 Primary Competitors
Primary competitors are boutique-sized mom and pop styled retailers. We have not identified any market competitors within our targeted area. With the implementation of our competitive edge service offerings, in addition to the limited selection of products from competitors we are poised for instant market share and gradual significant success.
4.2 Market Size
The ethnic beauty market is a 15 billion-dollar per year business. The African American population in the U.S. is 41.8 million. That equates to $215 annually per capita. Figure 1 illustrates the share of market of the various segments in this market.
4.3 Market Growth
This is a category of retailing and product type; which will continue to grow in this area. The population in zip code 70518 is 11% urban. Broussard’s 70518 zip code had a population of 12,297 in 2010 and currently has a total population of 17,072, a 28% increase, which demonstrates it to be a growing community. The median income is a healthy $72,758, an amount that allows enough disposable income for earners to consume health, hygiene and beauty products for themselves and their families. This illustrates the economic stability in the Broussard area.
4.4 Customer Profile
The primary targeted customer for Unique Beauty Supply is the African American female. The illustration in Figure 2, ages 18-24, and 25-34 demonstrates the high propensity of Over the Counter (OTC) shopping amongst this group, whereas the median age for the females in this market is 35-60 years old.
The 18-24 age group is most interested in beauty products available at OTC retailers. This means that our marketing strategy will be derived upon this demand area. Age group 25-34 and 45–54 also make up a strong area of demand for OTC items so they will also be marketed to under various campaigns specifically to meet the needs of these targeted age groups and shopping habits.
Over 80% of them own or operate a vehicle they regularly use, has the freedom of mobility and does not rely on taxicabs or public transportation to take them to their destinations. This conveys the independent culture of the area.
OTC shoppers are making significantly more trips to purchase hair care products. Frequent shoppers average 22 trips per year to purchase hair care products.
66% of consumers purchased at least one product at OTC stores. 51% of consumers purchased at least one product at Discount A Stores.
5. Marketing Plan
Unique Beauty Supply will reach its customers through several marketing efforts. Unique Beauty Supply will use print, radio, cellular, e-mail, and internet presence to communicate the business' image, services, and special offers.
Print advertising will be placed in the The Daily Advertiser, The Advocate, 008 Magazine, and Quick Starter newspapers and magazines which targets the local market of Broussard.
Radio advertising will be played on 88.3 KIEE, 95.5 KRRQ, 107.9 KHXT, and 104.7 KNEK during popular morning and afternoon drive time shows for the greatest exposure with ad campaigns.
E-mail marketing campaign is to be conducted utilizing Mailchimp.com or i- Contact; firms specializing in designing e-mail marketing communications with a high penetration method of advertising to our target market.
Mobile marketing is a method of reaching a customer base through cell phone text messaging technology. This technology can be used to deliver a daily sale or an electronic coupon to customers. A text code can be inserted into both print advertising, radio advertising, and in store communications as well. This technology is one in which the client must opt in to receive, however, response or redemption rates are typically 20%. This is a far higher response than couponing which gives a less than 1% redemption rate in consumer goods products. In a more advanced form, we will optimize the website for easy viewing on mobile devices to encourage ecommerce that enables Unique Beauty Supply clientele to quickly create an order for pick-up seamlessly or request delivery, while they are conducting normal daily activities.
Direct Mailing advertising with specials inserted in each postcard will be sent to the nearest 800-1000 residential zip codes from the location of the store. This service is a seamless service offered by the United States Postal Service at www.usps.com. This service allows a merchant to open an online account and upload flyers to its online portal and schedule the mailing to the zip codes. There will be no extensive man hours burned by Unique Beauty Supply utilizing this service beyond uploading the flyer and scheduling the date and time of the mailing. The USPS handles the labeling of addresses and delivery of the flyer. There will be different colored flyers with the exact same layout mailed once per month highlighting different specials available to the consumer for that month. This is a proven and effective method of marketing.
Social Media will be utilized to raise awareness of the business and its offerings through Facebook, Twitter, LinkedIn, Instagram, YouTube, Google+ and Pinterest.
Online Analytics will be used to capture customers searching for local beauty retailers. SEO (Search Engine Optimizing) along with Google Ads (with appropriate keywords) and YELP will be utilized to help increase the online search rankings for beauty supply stores in the Broussard area.
Television Advertising campaigns will be considered on cable/satellite providers (Cox, DirecTv, and Dish Network) based on zip code and targeted TV programming. A professional production team will create commercial advertising.
Pricing strategies will include pricing of equipment at a 40% retail margin, which is an industry standard. Commercial hair for wigs will be sold at a 70% retail margin. Weaving will be sold at a 30% markup. OTC chemical products will have varying margins, typically between 15% – 25% margin. There will be some loss leaders to mirror pricing at the mass merchants, which can typically sell these limited selections of items at a 12%- 20% margin. Discounters usually dedicate 4 or 8 feet of gondola space to the loss leader category, or approximately 220-250 square feet. We will employ “status quo” pricing strategies in regard to competing with local Beauty Supplies. We will be seeking to maintain category profitability similar to competitors and differentiate our store based on service, knowledge, store environment, ambiance and communicating our business propositions more often, efficiently, and clearly.
5.2 Promotional Plan
Print advertising will also include direct mailing, billboards, coupons and specials. Information retrieved from rebates will be utilized to strengthen our Customer Relationship Management (CRM) for our target.
Radio advertising will be placed on one station at a time for trial runs over three months to determine which station yields the best return during peak listening times during the week and weekend. Ads will be “call-to-action” ads that will prompt immediate buying decisions from the consumers
E-mail marketing campaign will be conducted utilizing Unique Beauty Supply firm of choice, specializing in designing e-mail marketing communications to reinforce sales with brand awareness and sale advertising to prompt in-store inquiries & sales.
Mobile marketing is a method of reaching a customer base through cell phone text messaging technology. This highly used technology will allow Unique Beauty Supply to engage customers with instant call-to-action messages.
Viral Marketing will provide customers with a platform to interact with us. For example, on our Facebook page we will post videos and store promotions and allow for comments.
Unique Beauty Supply will develop a website that will add an e-commerce component to the business featuring certain products and product categories available for sale. A professional web designer has been retained to design a secure and user-friendly site.
5.3 Sales Projections
Sales in the beauty sector of the retail industry are cyclical. However, the cycle does not have an adverse effect on the annual sales or monthly profitability. Unique Beauty Supply will accommodate the cycles by adjusting inventory purchasing, personnel scheduling and marketing budgets. The cycle operates as follows:
January = Sagging sales due to holiday aftermath
February = Sales slightly increases largely because of Valentine’s and Presidents
Day March = Sales climb significantly due to warming weather
April = Sales continue to steadily climb due to spring break, Easter and high school proms May = Sales experience a jump due to graduation preparations, Mother’s Day, summer excitement June = Sales flatten due to out–of-school students
July = Sales follow June’s sales numbers
August = Sales experience a spike due to back-to-school preparations
September = Sales remain high due to new school year
October = Sales soften a little with no major drop-off
November = Sales significantly increase due to the holiday season
December = Sales reach very high numbers due to holiday shoppers
Marketing plans will be monitored for effectiveness. This can easily be done by targeting specific products to specific publications, or specific electronic platforms to measure redemption rates. In addition, in-store comment cards will be used as a good way to increase customer feedback.
6. Operating Plan
Unique Beauty Supply will open in Broussard, LA 70518 where there is a strong saturation of the targeted consumers, however we expect consumers in surrounding zip codes to also patronize our business. The targeted location in Broussard is a stable area with, according to city-data.com, almost 20,000 residents, well above the needed number of repeat customers to be a successful business, putting Unique Beauty Supply in a great position for success. This zip code zone is home to over 10% of African Americans, which will be our primary consumer. The location considered in this area will have excellent access and visibility to vehicular and foot traffic.
Unique Beauty Supply will occupy a retail space up to 1500 sq. ft. This is ample size to house thousands of products with a retail value of over $50,000. A lease term between 3-5 years will be sought. Improvements to a location will be considered for interior walls, painting, flooring, restroom renovation as needed. The location will have a store operations area (sales & product displays), which will encompass the majority of the suite, an administrative area for management tasks, restrooms per city code requirements, and an inventory room for overstock products and maintenance.
A DVR based security system will be installed, along with an automated Point-of-Sale system, electronic shelf tag system, digital signage system, gondola shelving, glass display cases, slat wall fixtures, and the sales counter will be outfitted in the store. Signage for store interior, entrance doorway and exterior overhead of the store will be created and installed. (See store sample)
6.3 Suppliers and Vendors
Suppliers of over-the-counter products will be supplied by Jinny Beauty Supply (JBS), Bee Sales, TWT Distributors and Carib Sales. Other local distributing companies will be identified and used as alternate cash and carry suppliers. Jinny is one of the primary national distributors to the OTC industry.
6.4 Personnel Plan
The store will be owner-operated. The staff will cap at three employees in the first year including the owner. Upon opening, two employees will be hired, consisting of one full- time, and one part-time. Staffing needs will be assessed as required to add another part- time employee in the future. Hired staff will be friendly; customer service oriented with prior retail experience and education in hair and beauty products, cosmetics, and the fashion industry.
6.5 General Operations
Unique Beauty Supply will be open 6 days a week. Monday through Saturday 10am until 7pm and Sunday Closed.
7. Goals and Strategies
Unique Beauty Supply goal is to increase annual sales by 3% by re-evaluating sales and marketing strategies quarterly. These assessments will identify if current campaigns are effective and/or if new ones should be implemented. Unique Beauty Supply will improve efficiency by managing the reduction of sunken costs such as, but not limited to; administrative supplies and bank fees. Unique Beauty Supply will establish a unique brand and shopping experience to a clientele in an industry segment that is underserved in its service levels, cultural understanding, and attractive shopping environments. Unique Beauty Supply will provide an attractive decor and ambiance that is above typical in the consumer sector of this retail category in the Broussard market. Unique Beauty Supply will grow the business by developing local relationships. The goal is to acquire and/or maintain at least 5 partnerships per month through Business-to-Business opportunities sought to increase monthly revenue and to strengthen community ties.
7.1 Business Goals
Unique Beauty Supply goal is to establish itself as the leading supplier of affordable high- quality over-the-counter products in Broussard. Unique Beauty Supply will ultimately create an ideal shopping experience for consumers who are looking for obscure hair products, coupled with in-store demonstrations. Unique Beauty Supply will be accessible and efficient in its overall customer experience to ensure customers are happy, pleased and informed about their hair and beauty purchases.
Within six to twelve months Unique Beauty Supply short term goal is to sustain a strong infrastructure business model position. This will poise us to roll out mobile store services.
7.2 Keys to Success
The keys to success are as follows:
Hire the right people - Unique Beauty Supply will hire and require new employees to successfully complete an internal training program to promote retention. The training will be to increase product knowledge, effective ways to upsell & cross-sell, as well as to build rapport with other associates. Employees will also be sent to industry trade shows and events to stay cutting edge. Employees will maintain a code of ethics emphasizing honesty, and ethical behavior in business practices.
Control inventory - As the beauty industry is driven by trends, it is important to continually analyze the business to ensure that proper inventory is maintained, but not in excess quantities (just-in-time method). Unique Beauty Supply will utilize its Point of Sale System to detail inventory movement data to further ensure maintenance of adequate inventory levels.
Ongoing marketing program - Unique Beauty Supply will maintain an ongoing multi-media marketing program, print, radio, e-mail, cell phone, and internet.
Identify all potential sales channels - professional, consumer, institutional, educational
7.3 Future Plans
Unique Beauty Supply would like to expand operations by opening more locations in underserved markets, opening a warehouse to offer wholesale products to local businesses, and manufacture the two products that the business is in the process of patenting.
|Class of Security||Amount Authorized||Amount Outstanding||Voting Rights||
|Class B MembershipUnits||1,070,000||3,242,424||No||33%|
Use of Funds
Advertising (3 Month Push) $6,000
Exterior signage $8,000
Point-of-Sales and Computer System $4,000
Working Capital/Payroll $42,000
Our first acquisition will be 50% of Unique Beauty Supply, LLC, currently owned by Elizabeth Zuniga.
We have relied on the SEC's Regulation Crowdfunding exemption for this offer of securities
Offering Memorandum: https://drive.google.com/file/d/1wiX7l-8dOSV0Af0pfj4mDRo6YhSQj0mv/view?usp=drivesdk
Financial Statement: https://drive.google.com/file/d/1UeJbjSyp26ZChptRDto_gzXY_ULk3eUV/view?usp=drivesdk
Operating Agreement: https://drive.google.com/file/d/1DsoUYpRL75OZ4iasf0owIpm8r-VhTPjO/view?usp=drivesdk
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