A beard oil production company is a business that is involved in the production of different types of beard oil. Beard oil is a cosmetic product that helps men nourish the skin underneath their beards, as well as the hair follicles themselves.
People use beard oil to keep their beards looking fuller, softer, and tamer. Beard oil is also sometimes used to promote beard growth. There are five oil derivatives commonly used as the base in beard oil and they are coconut, olive, sunflower, jojoba, and argan.
Available data shows that the global beard oil market size was estimated at USD 925.9 million, in 2018 and is projected to grow at a CAGR of 6.1% in 2025. Please note that rapid urbanization and changing lifestyles are the key factors propelling the growth of this market.
Steps on How to Write a Beard Oil Business Plan
Executive Summary
Barry Regan™ Beard Oil Company, Inc. is a licensed niche cosmetics production business (private label beard oil production company) that will major in the production of different types of beard oil and related products. Our production factory will be located in a well-furnished and centrally located facility in the heart of Orange Beach, Alabama.
At Barry Regan™ Beard Oil Company, Inc., we will make our beard oil with only the healthiest and safest ingredients. Barry Regan is the founder and CEO of Barry Regan™ Beard Oil Company, Inc.
Company Profile
a. Our Products and Services
Barry Regan™ Beard Oil Company, Inc. will be involved in the production and sale of;
- Different types of beard oils
- Related cosmetics products (lotions, creams, scrubs, washes, cleansers, gels, essential oils, shampoos, conditioners, masques, fragrances, and raw ingredients).
b. Nature of the Business
Our beard oil production company will operate the business-to-consumer model and also the business-to-business model (we will work with distributors).
c. The Industry
Barry Regan™ Beard Oil Company, Inc. will operate under the cosmetics products industry.
d. Mission Statement
Our mission is to produce beard oil and related cosmetics products that will be irresistible to our customers that cut across different strata in our city.
e. Vision Statement
We want to be known as the beard oil production company with an effective product.
f. Our Tagline (Slogan)
Barry Regan™ Beard Oil Company, Inc. – Beard Oil that Gives You Tremendous Results!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Barry Regan™ Beard Oil Company, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Production Manager
- Accountant (Cashier)
- Machine Operators
- Salesmen and Saleswomen
- Cleaners
i. Ownership/Shareholder Structure and Board Members
- Barry Regan (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Luton Jones (Board Member) 18 Percent Shares
- Doris Edison (Board Member) 10 Percent Shares
- Andrew Murphy (Board Member) 10 Percent Shares
- Christie Stanley (Board Member and Sectary) 10 Percent Shares.
SWOT Analysis
a. Strength
- Ideal location for a beard oil production business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Access to beard oil production ingredients and supplies.
- A reliable, clean, healthy, and efficient method of preparing beard oil.
b. Weakness
- Financial Constraints
- A new business that will be competing with well-established beard oil production companies locally, nationally, and internationally.
- Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
- A rise in people who want to experiment with beard oil
- Online market, demand for improved beard oil, new technology, and of course the opening of new markets
i. How Big is the Industry?
Trust me, the market for beard oil and related cosmetics products is massive in the United States of America. The global beard oil market size was estimated at USD 925.9 million.
ii. Is the Industry Growing or Declining?
The beard oil production business is a growing because loads of people have started experimenting with beard oil. Besides, the industry is projected to experience 6.1 percent growth between now and 2025.
iii. What are the Future Trends in the Industry
The future trends when it comes to beard oil production will revolve around rapid urbanization and changing lifestyles which are the key factors propelling the growth of this market. So also, a new technology that will aid the production of beard oil with ease will emerge.
Software that is meant to predict what customers want from a beard oil production company and also to create online markets where people can order beard oil from the comfort of their homes or offices will emerge.
iv. Are There Existing Niches in the Industry?
No, there are no existing niche ideas when it comes to the beard oil production because the business is a subset of the cosmetics products industry.
v. Can You Sell a Franchise of your Business in the Future?
Barry Regan™ Beard Oil Company, Inc. has no plan to sell franchises in the nearest future, but we will target major cities with thriving markets in the United States of America to distribute our products.
d. Threats
- The arrival of a new beard oil production company within our market space
- Unfavorable government policy and regulations
- Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability
- Economic uncertainty
- Liability problems
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
i. Who are the Major Competitors?
- RainShadow Labs
- Reforma Group
- HWL Manufacturing
- Greenway Research Lab, Inc.
- Nutrix
- Vox Nutrition
- Fresh Farms CBD
- AMS Packing
- Custom Soap Colorado
- Adams Handmade Soap
- Bo International
- Beard Oil by American Dude Company
- VE Beard Oil Co Inc.
ii. Is There a Franchise for the Beard Oil Production Business? If YES, List at least 20 of them and their cost
No, there are no franchise opportunities for the beard oil production business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Beard Oil Production Business?
Yes, there are county or state regulations or zoning laws for beard oil production business, and players in this industry are expected to work with the existing regulations governing similar cosmetics production businesses where their business is domiciled.
Marketing Plan
a. Who is Your Target Audience?
i. Age Range
Our target market comprises male adults above 18 years who have the finance to purchase beard oil from us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those we will sell our beard oil to.
iii. Income Level
There is no cap on the income level of those we will sell our beard oil to.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people that will purchasebeard oil from us.
v. Language
There is no restriction when it comes to the language spoken by the people that will purchase beard oil from us.
vi. Geographical Location
Anybody from any geographical location is free to purchase beard oil from us.
vii. Lifestyle
Barry Regan™ Beard Oil Company, Inc. will not restrict any customer from purchasing beard oil from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Vans and Delivery Bikes.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the event planning and food services industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), 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
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Barry Regan™ Beard Oil Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
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 grooming industry and freelancers to help refer customers to us.
Barry Regan™ Beard Oil 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.
b. Inventory Strategy
The fact that we will need ingredients means that Barry Regan™ Beard Oil 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.
c. Payment Options for Customers
Here are the payment options that Barry Regan™ Beard Oil Company, Inc. will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Barry Regan™ Beard Oil Company, Inc., our customers are our top priority hence if you receive beard oil that is different from what you paid for, we will sincerely apologize. Please call us as soon as you notice that there was an error in your order so you can pick up the correct item.
For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new beard oil has a greater value than the product received in error.
In the same way, you will receive the difference of the balance back as credit for the new item if less than the item received in error. In some cases, we may offer you store credit. Your order will be a priority if you come to pick it up. Please return the beard oil in its original container.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients and investors, it will help us to first understand their needs, experiences, and pain points.
Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Operational Plan
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 deals that will enable the firm to boost our beard oil sales and to support revenue growth.
a. What Happens During a Typical Day at a Beard oil production company Business?
- The business is open for the day’s work
- The production facility is cleaned and ready for the day’s business
- Beard oil ingredients are purchased, and ready for use
- The production and packaging of beard oil
- Customer’s orders are taken and they are delivered to them
- Cashier collect’s cash and reconcile account for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process
The production process or better still preparing beard oil starts by getting your ingredient ready. Thereafter, cold-pressed oil is extracted using mechanical processes only — grinding and centrifuge — which extracts oil in its most natural form. Carrier oils are extracted from plants and act as moisturizers when applied to hair and skin.
These oils can be extracted from a variety of plants, all of which have different properties that can benefit the body. Once they are extracted and all the additives are added, the beard oil goes through quality assurance before they are bottled, packaged, and distributed.
c. Service Procedure
The service procedure for a beard oil production company starts with a customer requesting beard oil. Once the request is gotten, it will be processed and the order delivered to a location as requested.
d. The Supply Chain
Barry Regan™ Beard Oil Company, Inc. will rely on key players in the grooming and hair care industry, cosmetics and beauty care retailing industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of cocoa butter, shea butter, carrier oil, such as coconut, jojoba, avocado, or any other base oil.
e. Sources of Income
Barry Regan™ Beard Oil Company, Inc. make money from selling;
- Different types of beard oils
- Related cosmetics products (lotions, creams, scrubs, washes, cleansers, gels, essential oils, shampoos, conditioners, masques, fragrances, and raw ingredients).
Financial Plan
a. Amount Needed to Start your Beard Oil Production Company?
Barry Regan™ Beard Oil Company, Inc. would need an estimate of $250,000 successfully set up our beard oil production company 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 – $1,300.
- Marketing, Branding and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $1,400.
- Rent/Lease – $115,000.
- Other start-up expenses include commercial satellite TV subscriptions, phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $50,000
- Start-up Inventory – $65,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Furnishing and Equipping the Shop and Kitchen (Bakery) – $20,000
- Website: $600
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Barry Regan™ Beard Oil Company, Inc. will not build a new facility for our beard oil production company; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our own shop facility in a centralized location in the city.
d. What are the Ongoing Expenses for Running a Beard Oil Production Company?
- Supplies such as cocoa butter, shea butter, carrier oil, such as coconut, jojoba, avocado, or any other base oil and packaging materials
- Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
- Trucks and vans 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
- Accountant – $35,630,000 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 Beard Oil Production Company?
- 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
- Source for soft loans from your family members and friends.
Financial Projection
a. How Much Should You Charge for your Product/Service?
The price of our beard oil will be between $10 and $40 per bottle.
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): $80,000
- Second Fiscal Year (FY2) (Profit After Tax): $150,000
- Third Fiscal Year (FY3) (Profit After Tax): $200,000
d. Profit Margin of a Beard oil production company Product/Service
The ideal profit margin we hope to make at Barry Regan™ Beard Oil Company, Inc. will be between 20 and 40 percent depending on the additional ingredients, pack, and size.
Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Barry Regan™ Beard Oil Company, Inc. will grow our beard oil production company by expanding our distribution channel across key cities in the United States of America within the first five years of establishing the business.
b. Where We intend to expand to and why?
Barry Regan™ Beard Oil Company, Inc. plan to expand to first to
- Saint Helens, Oregon
- Southfield, Michigan
- Costa Mesa, California
- Dunn, North Carolina
- Burnsville, Minnesota
- Salt Lake City, Utah
- Las Vegas, Nevada
- South Plainfield, New Jersey
- Highlands Ranch, Colorado.
The reason we intend to expand to these locations is that available statistics show that beard oil-making ingredients are easily accessible in these locations, and of course, the cost of production is lower in the cities listed above.
Exit Plan
The founder of Barry Regan™ Beard Oil 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.