Business Plan
CONFIDENTIAL
Founded by Delaney Ryan, Manager of Laney’s Lipcare
Created in March of 2018
8866 Red Bush Trail
Highlands Ranch, Colorado 80126
720-456-5123
This document contains confidential and proprietary information belonging exclusively to
Laney’s Lipcare.
Table Of Contents
Executive Summary…………………………...…………………..…………..…2
Company Description……………………………………..……………………...3
Description Of Products and Service……………………………..……………...4
Market Analysis…………………………………………..………………..…...5-6
Tagline, Logo, Business Card, Website………………………………………...7-9
Marketing Plan…………………………………………….………………….....10
Operating Plan………………………………………….....……………………..11
Schedule Start Up Funds Required……………………………………….……...12
Projected Income Statement………………………………….………………......13
Resume……….……………………………………….………………………….14
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Executive Summary:
Laney’s Lipcare is a handmade lip balm and lip tint company. All of the products
are handmade with simple ingredients. Laney’s Lipcare is a sole proprietorship
business. ​Laney's Lipcare's sole purpose is not financial gain.
Laney’s Lipcare makes lip balms and lip tints. The lip balms have a very
moisturizing base, and as of right now offer three different flavors, vanilla, strawberry,
and honey. The lip balms are clear and do not add any color to your lips. Lip tints have
the same moisturizing base as the lip balms but they add a light pigment to your lips.
We currently offer three flavors of lip tints, rose, coral, and peach.
Laney’s Lipcare’s target market is people of all ages; more specifically, women in
men in the Denver area, aged 10-79. I have more than 1,082,981 potential customers.
As Colorado sits at such a high altitude and has a very dry climate, lip balm is a
necessity for most people. My product has very competitive pricing, and is differentiated
from competitors because of the hand-crafted aspect.
Although the industry is very saturated, Laney’s Lipcare has aspects other
companies cannot compete with. We make all of our products by hand without using
any harsh chemicals. Now more than ever, people want to know what they are putting
on their skin and what it is made of. I can offer this because of my only six ingredients.
Laney’s Lipcare is also donating 10% of profits to the Skin Cancer Foundation.
Laney’s Lipcare, although a young business, is already making a steady profit.
Laney’s Lipcare has already made $435 in revenue in only two months. I project that
every month our profit will increase my $33.75 per month starting from $235, making the
total profit of $3240.71 in twelve months before the donation to the Skin Cancer
Foundation. After making a 10% donation to the Skin Cancer Foundation ($324.07), the
projected profit of the company is $2,916.64. This projection includes selling at Aspen
Academy, internet sales at the company’s website (​www.laneyslipcare.com​) as well as
Wish Gift Boutique selling my product.
Laney’s Lipcare strives to satisfy people’s needs of a moisturizer for their lips but
also wants to create a world where everyone can live a skin cancer free life.
Laney’s Lipcare will be selling at multiple stores and beauty salons. Laney’s
Lipcare is always striving towards creating a better product for the customer.
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Company Description
Business Name: ​Laney’s Lipcare
Business Summary:​ Laney’s Lipcare is a for-profit business that sells handmade lip
balm and lip tints. Laney’s Lipcare donates 10% of all profits the the Skin Cancer
Foundation.
Form of Ownership:​ Laney’s Lipcare is a sole proprietorship business.
Location: ​8866 Red Bush Trail, Highlands Ranch, Colorado 80126
Year Established: ​Laney’s Lipcare was established in 2018.
Primary Function: ​Laney’s Lipcare sells lip balm and lip tints. There is a need for a
handmade lip product company in the Denver area. My product will keep your lips
moisturized all day. My lip tints have vibrant color while not drying out your lips. Having
a handmade product will be more appealing than a larger company who doesn’t put the
care I do into every product.
Employees:​ I am the sole employee of Laney’s Lipcare.
Business Advisors: ​Laney’s Lipcare’s business advisors are Bill Bullen, Ann Ryan,
and Gregory Ryan.
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Description of Products
Description of Industry: ​The Pharmaceutical Preparation Manufacturing Industry
(325412) is ​engaged in manufacturing non-biological diagnostic substances and
pharmaceutical prep-intended for internal and external consumption in dose forms, such
as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions.
This industry is valued at 446 billion dollars. Lip balm more specifically is worth around
$2 billion.
Products Provided:​ ​The Pharmaceutical Preparation Manufacturing Industry provides
testing of drugs, diet supplements, makeup, and lip balm manufacturing.
Nature of Work​: In order to make the lip balm and lip tints, the following process is
followed:
a. The base consisting of coconut oil, sweet almond oil, candelilla wax, and avocado oil,
are warmed until liquefied, measured and poured into a bowl.
b. In the bowl a flavoring oil is measured and added which gives the product it’s smell.
For the lip tints, I measure and add mica powder which gives the tint a light color.
c. The mixture is then warmed again to make sure the product is liquefied. At this point,
the balm or tint are ready to be placed in containers;
d. To place in containers, a wide syringe is utilized which is filled with the liquefied
product and then injected it into the containers.
e.The product is then cooled until it is solidified, and the caps are put on.
f. The last step is to stick on labels containing my logo, the flavor, and the ingredients.
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Market Analysis
Analysis of the Target Market:
a. My target market is ages 10-79, both male and female mostly in the
Denver/Littleton/Highlands Ranch area. In my online store, I am mostly targeting
relatives and family friends in different states.
b. There is 1,082,981 people aged 10-79 in the Denver/Littleton/Highlands Ranch
area. In Colorado, the air is very dry, lip balm is a very popular necessity for
most. Also, hundreds of thousands of people attend farmers’ markets, festivals,
and handmade/homemade markets every year.
c. All of my current customers are private customers although I am pursuing
boutiques and beauty salons.
d. The market is saturated, but I know my business will be successful because I
offer a handmade product compared to other larger corporations who use more
chemicals in their products. I am also donating 10% to the Skin Cancer
Foundation.
e. Customers will be willing to purchase my product because it will help with a very
common problem, chapped lips, and other companies similar to mine have been
successful.
Analysis of the Competition
a. Laney’s Lipcare’s competition includes Live Beautifully, Burt’s Bees, Chapstick,
EOS, Vaseline, Carmax, and Blistex.
b. My competitors are very successful in the lip care industry.
c. My competitors market mostly using social media ads and websites. There is
very few commercials or radio ads used by my competitors.
Outlook of the Industry
a. In the future, I plan to market my online store and selling locations more on social
media. In one year, I am striving towards 1,000 total lip balm and lip tints sold. I
will also have sold at 3 or more locations.
b. Lip care is a growing industry and had a 9% growth from 2012-2014. The job
outlook growth is 13% which is faster than average. Lip care is growing because
of the need for both a moisturizing lip product, and a pigmented lip product.
The Owner’s Personal Strengths/Strengths of Laney’s Lipcare
a. Laney’s Lipcare will have a competitive advantage because all of my products
are handmade, which bigger companies cannot offer. We also donate 10% of
profits to the Skin Cancer Foundation. Most people like to know who/where their
products are coming from and since most of my customers are people I know or
who are related to Aspen Academy where I attend school, they will be more likely
to buy from me. Not only this, but I have a $300.00 revolving line of credit and
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low startup costs that keeps me financially secure. Laney’s Lipcare has better
quality packaging than most because of sturdier containers.
b. One advantage, I, as a business owner, have is my eagerness and
determination. I have had many problems with labels, ingredients, and recipes,
but I have been able to fix them and persevere through them. I also had the
opportunity to visit Colorado Service Products, a manufacturer of beauty
products and was able to talk to one of their head chemists on my formula. This
opportunity allowed me to perfect my recipe and make sure it was safe.
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Tagline, Logo, Business Card, Website
Logo:
Tagline:
- “​Treat your lips like royalty”
Business Card:
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Website and Online Store:
laneyslipcare.com
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9
Marketing Plan:
Products and Price
Products
Cost
Per
Unit:
Sale
Price:
Markup
Percentage
Competitor
#1:
Chapstick
Competitor
#2: EOS
Competitor
#3: Burt’s
Bees
Lip Balm
$.52
$3.00
477%
$1.16
$3.79
$3.29
Lip TInt
$.65
$4.00
515%
$5.29
$5.49
$4.99
Place:
a. I will sell all the same products at retailers and beauty salon.
b. I will be selling at Aspen Academy every other Friday morning.
c. I also have an online store.
Promotion:
Type of Advertisement
Cost of Advertisement
Instagram Ads
$5-$8 per ad
Flyers
$.15 per ad
Automated Emails
$0.00 per email
Laney’s Lipcare’s best form of advertisement is Instagram ads, flyers, and automated
email ads because they are all inexpensive, effective ways to market.
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Operating Plan:
Purchasing:
a. I have ordered enough lip balm base for 500 lip balm and lip tints, 600 lip balm
tubes, a total of 8 ounces of pigment for the lip tints, four different types of flavor
oil, 1,400 labels, 50 bubble mailers, a website domain, and I pay monthly for an
online store.
b. I ordered my lip balm base, flavors, pigments, and lip balm tubes from
BrambleBerry.com. They have the least expensive, highest quality products, and
fast shipping. I ordered my labels from OnlineLabels.com. They offer very
reasonably priced labels, fast shipping, high quality products, and a free label
design program. I ordered my bubble mailers from Amazon. It had free, two day
shipping, and a low price. I made my website and online store on Wix.com. They
had a more competitive price than Weebly.com, GoDaddy.com, and other
website makers. They have a very easy to use site and make online ordering fast
and easy.
Production:
a. It takes me around 45 minutes to make 50 lip balm/lip tints and add labels to
them. Most of my sales are done in person. I have lip balm and lip tints with me
when I am selling, so the customer walks away with a product in hand. For online
orders, I ship out orders every Friday. Shipping takes three to five days
depending on the location of the customer. Customers usually get their order with
eight days.
Sales and Marketing:
a. I will spend one hour per month marketing and promoting Laney’s Lipcare. When
selling in person, I accept both cash and credit cards with my Square credit card
swiper.
Accounting:
a. I use Google Sheets to track my expenses and profits. I use Squarespace to
track my individual product sales to track how well a product is selling.
b. I will spend three hours per month conducting accountings tasks and finances for
Laney’s Lipcare.
Distribution:
a. It takes approximately 30-45 minutes to sell 25 lip balm/lip tints before an AMP’d
(Aspen Morning Program). It takes approximately 25 minutes to package and
ship ten online orders.
b. I ship using bubble mailers, and use the United States Postal Service to send out
online orders.
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Laney’s Lipcare
Start-Up Funds Required
Prepared by Owner, Delaney Ryan
Cost Per Item
Quantity Needed
Start Up Funds
Available (1)
Total
$700.00
Materials and
Supplies
Lip Balm Tubes
$0.14
550
$77
Lip Balm Base (16
oz)
$10.24
5
$51.2
Pouring Trays
$12.5
2
$25
Lip Balm Labels
$0.035
1,430
$50.35
Mica Powders (1oz) $3.652
8
$29
Flavor Oils (3oz)
$6.95
6
$41.72
Shipping Costs
$14.26
3
$28.51
Bubble Mailers
$0.16
50
$8.00
Total
$308.78
Advertising and
Website
Business Cards
$0.367
500
$18.34
Domain Name
$14.95
1
$14.95
Website Cost
$16
Billed Monthly
$16
Total
$49.29
Total Funds
Required
$358.07
Funds Leftover
$341.93
(Comprised of $400.00 in equity and $300 in revolving line credit
Projected and Actual Income Statement
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February ‘18
(Actual)
March ‘18
(Actual)
April ‘18
(Projected)
May ‘18
(Projected)
Revenue
$323.00
$271.89
$401.00
$449
Cost of
Goods Sold
$54.30
$37.00
$67.34
$75.4
Gross Margin
$268.70
$234.89
$332.66
$373.60
Gross Margin
%
83.19%
83.19%
83.21%
83.21%
Marketing
$7.00
$0.00
$15.00
$20.00
Equipment
$0.00
$0.00
$0.00
$0.00
Total
Operating
Expenses
$7.00
$0.00
$15.00
$20.00
Operating
Income
$261.7
$234.89
$317.66
$353.60
Amount
Donated
$26.17
$23.5
$31.77
$35.36
Income Taxes
$0.00
$0.00
$0.00
$0.00
Total
Expenses
$33.17
$23.5
$48.17
$55.36
Net Profit
Projected
$190
$180
$284.49
$318.24
Net Profit
Actual
$235.53
$211.89
N/A
N/A
Actual vs.
Projected
+ $45.53
+ $31.39
N/A
N/A
Net Profit %
137.45%
128.32%
140.95%
141.09%
Operating
Expenses
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Delaney
Ryan
Delaney Ryan
Entrepreneur &
Student
720.456.5123
delaney.ryan@aspenacademy.org
8866 Red Bush Trail
Littleton, CO 80126
ㅡ
Skills
ㅡ
Experience
Some of my skills include, baking, cleaning, mathematics, writing, computers,
soccer, handmade projects, decorating, organization, and public speaking. I also
am very good at communicating. I can also be a very good persuader and
negotiator.
Laney’s Lipcare / ​Founder & CEO
December 2017 - PRESENT, Littleton
Laney’s Lipcare is a handmade lip care company that I started. I am the sole
employee. I market, manage the financials, am a salesperson, and manage all
the operations of the company.
Bear’s Student Enterprises / ​CFO
August 2017 - January 2018, Greenwood Village
Bear’s Student Enterprises is a student-run business consisting of a cafe, store,
broadcast, publications, and an executive team. I managed all the costs,
budgets, profits, and helped make the upper-level decisions. I learned how to
manage people, more financial knowledges, and how to set budgets.
Babysitting / ​Babysitter
January 2017 - Present, Various Locations
As a babysitter, I watch children of all ages for one to nine hours. I learned how
to deal with clients, how to market your own business, set costs, please your
clients and children, and other basics on starting your own business. This
knowledge transferred to Laney’s Lipcare.
​ㅡ
Education
Aspen Academy
August 2015 - Present, Greenwood Village
Aspen Academy is a private, Pre-K through 8th grade school. They prioritize leaderships
and entrepreneurship.
All Souls Catholic School
August 2008 - June 2015, Greenwood VIllage
All Souls is a catholic, preschool through 8th grade school. They prioritize in
Catholicism and academics.
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