luk by Cindy Luken my BIZ in the making

BUSINESS PLAN4th May 2011

Final (V8)

© COPYRIGHT: Cindy Luken. Just ask me if you’d like to use anything in this plan. Email cindy@lukbeautifood.com

introductionHi there,

I am sharing ‘in the making’ of this business so you can see my approach to building a small business around my own & family’s needs and wants. What is important to us is spending time together, doing the things we love, enjoying time and space for ourselves and each other and having flexibility…. all whilst generating enough fun ticket$ to ‘live the sweet life’!

This means I am approaching the creation of a startup biz from an unusual angle. I am setting the criteria it must meet to enable this ‘lifestyle of desire’.

Consequently I don’t know what I am going to do yet – the first part of this business plan will help identify and clarify what it will be.

I hope you enjoy the read and learn something on the way.

Enjoy the discovery & insights….Cindy

behind the business Cindy Luken – 43. modern mum, entrepreneur, food lover and former bikkie baker• Until 2003 I had a very busy business life creating Luken & May Biscuits. Since then I immersed myself in the beauty

industry and ran Arnaud owned by Stila Cosmetics US, had 2 beautiful children (now 2&4) and escaped to France with my family for 18 months to wander the canals on a 100 year old barge

• My background includes an applied science degree in food & nutrition, new product and process development at Sara Lee, catering and event management @ Juste Nous Catering (Norma Willis) and building & exiting Luken & May (with private equity backing) within 7 years of start up. (now owned by Byron Bay Cookies).

• I have sat on the National Food Industry Council & Innovation Committee providing input on strategic and future issues and was a member of the Small Business Advisory panel to the Reserve Bank Board.

• Newcastle University awarded me with an Honorary Master of Science for combining my love of food with science & business. Over the years I & my team have won over 20 export, entrepreneur and business awards including Jaguar Gourmet Traveler award for Excellence in Produce, the Australian Business "Success thru Innovation" prize and 19th & 20th spot in BRW’s Fast 100.

• My philosophy is simple…..live what you love….and the rest falls into place. I am now creating luk as I am ready to give a bit back to me so that I can continue to be a happy wife and mother. My aim is to use the fabulous technology that surrounds us and create a business that is easy to manage, gives me a buzz and makes money!

Contentspart A) Opportunity Development

stage 1: Establishing Business Framework. pages 05-11stage 2: Brand & Product Ideas. pages 12-16

Stage 3: Desk Top research. pages 17-25stage 4: The Brand Proposition. pages 26-31

part B) The Business Takes Shape1. The Beautifood Business. Pages 32-45

2. The Brand. Pages 46-663. Sales & Marketing. Pages 67-79

4. Operations. Pages 80-855. Finance & Admin. Pages 86-93

© COPYRIGHT: Cindy Luken

Part A) Stage 1 Establishing business framework

mybusiness goal

To create a small business that runs profitably on 15 ‘child free hrs’ pw with <$2000* start up fund

netting $1000pw by end year 1.

(*home office, computer, phone, internet and ‘like’ equipment on hand)

Ideally the biz must….

1. Sell products not services:Why? Input hrs don’t limit sales potential. Can easily systemise sales process and scale up. How? Design unique product/s and have them contract manufactured

2. Be cashflow positive on launch: Why? Low start up funds required How? Pre-sell before placing launch orders. Ongoing - pre payment on 80% sales. Small & flexible production runs.

3. Have no employees:Why? Need flexibility & privacy to run home biz, keeps overheads & headaches down! How? Outsource services when needed – pay for what’s needed.

4. Can be run from anywhere in the world:Why? Gives flexibility, not tied to desk. Very practical & inspirational!How? Utilise online technology – orders, communication, stock control etc, Outsource key functions and ensure sales service is not physical.

.

more next page…

Ideally the biz must….5. Must have potential to grow to a $10+mio turnover

Why? Good to have options! To increase return, ability to sell or license brandHow? Build a strong & flexible business model & product offer / contract manufacturer that scales up easily.

6. Will operate in the Food, Beauty, Health &/or Wellbeing sectors.Why? This is where I have experience and can LIVE WHAT I LOVE.How ? Hunt for gaps/opportunities.

And to recap on the biz goal..

7. Runs on 15 ‘childfree’ hours per week in year 1Why? This is the time I have to achieve our personal desire to spend time with the kids before going to schoolHow? Get tough. Make it work or don’t do it.

8. Makes Money – clears $1000pw by end year oneWhy? It’s not a hobby! I need it. Motivating.How? Home office keeps overheads low, select high margin products (COGS <25%) with excellent sales potential. In house marketing – guerrilla / WOM/ Social. Low labour sales order, stock control & marketing processes. Minimise stock wastage.

what is my business strategy

By setting up a home office with a local, outsourced virtual office and by outsourcing the infrastructure cost,

risks and constraints in manufacturing, build an easily scalable technology & marketing savvy

business that focuses on building intimate and purposeful relationships with consumers.

Key - flexible model to stage business growth cost effectively. • Stage 1 logistics: hands-on pick, pack & ship (need for small high value, low risk

product?)• Stage 2 logistics: outsource warehousing and distribution/logistics

What are my key business objectives ? 1/2

To:• obtain gross sales of $250K year 1 with a net profit of 20% - in other words

pocket $50K after tax.• Find a product / sector where COGS run below 25%. ie gives room to

move / promote / sell via second or third party to drive volume.• Enter a sector / industry with high sales potential – ie sell product that is

in demand.• Launch Summer 2011 & breakeven on startup or @ latest within 3months

and produce residual income• stage business growth & investment with potential to achieve $10m gsv pa

– Stage 1 ( year 1) $250K - self funded & managed, organic growth, key accounts &/or sell direct– Stage 2 (2-3 years) $1m– Stage 3 (3-5 years) $10+m Definitions: ebit=earnings before interest & tax: COGS = cost of goods sold. Breakeven – where costs = expenses. GSV – gross sales value (before ANY discounts etc)

What are my key business objectives? 2/2To:• Keep product range simple – limited number of SKU’s or categories & NPD

if possible.• Stock – keep at minimal levels. <10% turnover?; Stock turns at 10 pa or >.

Min 12mth shelf life. • Cashflow: ideally pay b4 ship! &/or Collections <30 days.Creditors >

30days • $2000 start up kitty. Hence need to pre-sell. (note am stay-at-home-mum-

don’t want to put financial strain on family with my desire to run own biz)• create an outsourced, streamlined and easy self managed business that

can be run without regard to location• never compromise or fail on quality, reputation means everything. Service

better than competitors. Build success on success of others. Reward those who help me.

Definitions: NPD – new product development

Part A) Stage 2 BRAND & PRODUCT Ideas

discover….

I love foodI love beauty

I love beautiful things

foodbeauty

beautiful….

beautiFOOD

beautiFOOD

luk

Why luk beautifood?This area of interest has not come overnight, it been simmering away, waiting patiently for me…

Food is such a wonderful sensory experience, no one shows this better than Heston Blumenthal from the Fat Duck – currently the worlds best restaurant attracting 30,000 enquiries a day. www.thefatduck.co.uk

As a packaged product however, food becomes a commodity (controlled by supermarket monsters), or is available only at the ‘top’ end, to a few via expensive distribution channels …. making it challenging as an SME to manage and make money from.

Beauty products however, are loved by many….and are not restricted to gourmands. They are such a personal, multi-sensory experience that help make us feel good about ourselves. Nearly every girl loves a lippy whether they are golden & glitzy or natural and down to earth. But times are changing and consumers are really starting to understand the link between eating well and its effect on health & wellbeing.

So for me, a food scientist, a food lover, a lover of beauty and someone that loves bench top formulation development…..there seems to be a potent area ready for tasting!

As for luk…..well that is easy (luk from Luken, as there is still might be a bit of Luken & May love in the air!) luk = luck? Luk = look?....it’s all in the mixing bowl.

Part A) Stage 3 Desk Top Research

• Cosmetic and toiletries market in 2010 is estimated $300b world wide. Overall lacklustre performance from global economic downfall, some categories seeing +ve performance, especially when compared to previous years.

• Pockets of optimism are region & category specific. – natural personal care market – colour cosmetics– most dynamic markets are China, Brazil & Russia

• Last few years seeing a ‘sea-change’ – value chain shift with production to low cost countries – new channels of distribution emerging – online retailing expected to reach 5% of cosmetics this

year and growing– ever increasing interest & change in consumer preferences eg natural & herbal

• Surge in truly natural segment growth upto 20% in some markets driven by reformulating ‘natural inspired’ & expansion of lines into mass retail like Walmart as consumers demand premium products at low prices.

• To put in perspective, in 2006, 35,000 new products launched. Cosmetics 21K, lips leads the way 8.6K.

• Beauty blogs & social media having influential affect on consumer purchases.

what’s happening in the beauty market?

focus on natural & organic beauty market 2/2• Changing market conditions are making many natural cosmetic firms take the direct route to get closer

to consumers. – Setting up online retailers– Growing number of brands are opening concept stores (especially in Paris).

• Weleda, Dr. Hauschka, Madara Cosmetics and Couleur Caramel in recent years. • Other brands like Melvita and Florame are building international retail networks.

• Although healthy growth rates are continuing, the natural cosmetics market faces many obstacles to future growth. Major obstacles include low consumer understanding of natural & organic products, lack of harmonised / uniform standards and proliferation of symbols and logos. The development of European-wide standards such as NaTrue and Cosmos are expected to overcome some of these hurdles.

• Saying this, the first ever Consumer Insights report on consumer buying behaviours report 89% of consumers avoid products with synthetic chemicals such as parabens and SLS’s. A major finding is that certification is not important to most buyers. Just 35% of consumers stated that they look for symbols & logos when buying natural personal care products.

Ref: Organic Monitor Reports: #1231-60 & #1002-60 & # 1081-60 

focus on natural & organic beauty market 1/2• Naturals movement now mainstream & expects double digit growth for next 5 years.

• In EU alone natural cosmetic sales approach $2b in 2010 at growth of 12%

• Consumers are turning to natural and organic products as they become aware of the possible dangers of parabens, phthalates and other synthetic ingredients in cosmetics & toiletries.

• Mainstream retailers are responding to high consumer demand by introducing natural & organic cosmetics, some under their private labels. The entry of large retail groups is causing a large shift in sales from specialist to mainstream retailers.

• Competitive Stakes Rising as Market Evolve– because of new entrants and growing consumer price sensitivity. Value brands are gaining market

share. – Most growth from mainstream retailers.– Many companies are taking a segmentation approach, focusing on specific sales channels and / or

consumer groups– Traditional organic / health food shop sales declining.

what are the natural beauty trends? 2009: Brands sought creative ways to merge science, nature and sustainability for better results and more eco-friendly formulas and packaging2010: consolidation in the beauty industry and the evolution of old trends, as well as new ones, as consumer confidence returns.2011 – ‘down to earth’

a) MOOD BEAUTY - 2010- make-up has long been associated with making the wearer feel better, but recent product evolution has seen actual ingredients enabling this. - consumers will be able to enhance their mood through make-up and skincare, going beyond aromatherapy and simple use of scent.- “Mood Beauty” creates a new beauty space, intersecting psychology and wellbeing with beauty products that offer psychological benefits and ingredients that act on people’s neurotransmitters. - manufacturers make use of textures, temperatures or sounds that affect the mood, as well as innovations like make-up that “switches on and off.” - the idea of beauty sleep will take on new meaning, as cosmetics claiming to induce positive moods or improve sleep quality inject new life into night care products.

SOURCE: Mintel GNPD 2010 & 2011 Trend Predictions

what are the natural beauty trends? b)  NU NATURAL – 2010• naturals that are less focused on certification & more on results, efficiency and safety. • will evolve from today’s trend towards organic ingredients - revisiting attributes like authenticity, provenance and local production.• claims like “free from” and “sustainable” to appear in products that simultaneously contain synthetic actives like peptides and ceramides or collagen.• explore simple formulas, such as infusions and fluids, but they’ll formulate them with a new generation of phytochemicals, anthocyanins and fermented actives.

c) DOWN TO EARTH – 2011• addresses the practicalities of making and marketing green beauty. • free-from formulas (over certification) to avoid petrochemically-derived ingredients• simplifying text and ‘stripping back’ to tell straightforward, direct stories of plant-based ingredients - treat consumers as educated shoppers instead of novices.• increased importance on the environment, focusing on sustainable sourcing with attention to maintaining biodiversity. • a renewed emphasis on repackaging to minimize waste will also be a factor.

• Colour Cosmetics: in the next decade will be increasingly multi-benefit, long wearing, and provide anti-aging benefits. Eg foundations with additional anti-aging properties, such as vitamins, botanicals, light diffusion, and sunscreens.

• Colour cosmetics are seen as an affordable pick-me-up during tough times.

• Skincare: Skin care is becoming increasingly more high tech but at the same time there is growing popularity in natural and organic products

• The growth is being driven by a demand for new and improved products which offer health maintenance and appearance enhancing benefits.

a look at colour cosmetics & skincare

what is the key consumer insight?

There is a rapidly growing awareness of the importance of what products are used on our body, stemming from consumers greater understanding of what we eat and its effect on our health and wellbeing.

what is the brand opportunity?

To create a range of delicious, natural, colour cosmetics made from skin-friendly, nutrient-rich foods so woman can feel good about what they use on their skin.

To support the offer with a simple, fresh and healthy approach to optimal beauty wellbeing so woman can manage the daily influences (stresses) that can affect how they feel, look & perform.

And to do this with style & taste built on a science platform.

Part A) Stage 4 The Brand Proposition

what is the brand proposition?

Luk is a delicious, natural makeup made from food active ingredients for woman who care as much about what they put ON their body

as what they put IN.

A pure, natural, healthy colour cosmetic line formulated to nourish, hydrate and illuminate skin.

A modern way of utilising the intrinsically powerful properties of the foods* that should be eaten daily

to create, nourish and nuture beautiful skin.

* Especially foods rich in skin friendly phytonutrients, vitamins (E&C), minerals, anti-oxidants and enzymes

what products will luk start with?

Brand will launch Summer 2011/12 with a range of lippies made from pure food actives to nourish, hydrate and illuminate lips.

The lips will look 'modern’ with a hint of natural colour and sheen. Not overly lipsticky, moist not glossy; a beautiful finish without looking made-up.

It will give a healthy, contemporary, effortless look for woman ‘on the go’.

Menu of chef-inspired tastes and scents. Eg Sweet Lemon, Mint & Basil and Mandarin & Cinnamon

players in the natural or organic lippy market

• RMS (Rose-marie Swift) www.rmsbeauty.com• KW (Kjaer Weis) www.kjaerweis.com/#/Products/Lip-Tint/1• Ere Perez www.ereperez.com• Korres www.korres.com • Revolution Organics www.revolutionorganics.com/products.php• Une natural Beauty www.unebeauty.com/en• Bare Escentuals www.bareescentuals.com/Lips • Nvey eco www.enveymakeup.com • Juice Beauty www.juicebeauty.com• Burts Bees www.burtsbees.com.au/natural-products/lips/

Why start with a ‘lippy’?

Top 10 SCREENING CRITERIA Y/N COMMENT1. Product not service yes Goes without saying!2. COGS <25% yes Low cost of goods/high margin category3. High sales potential yes Not ‘exclusive’ like gourmet food products.

Usage is high. High value item.4. Can be sold online yes Attractive growth rate online / direct sales

5. Out source manufacture yes Manufacturers in Aust & OS

6. Small, flexible prod’n runs, can scale up easily

yes For both packaging & production

7. Easy/low cost to ship direct yes Sml high value, light, compact, won’t break

8. Long shelf life yes Minimise stock wastage

9. Pre-sell for +ve startup cashflow yes Sampling available

10. USP yes Colour with skin care benefits: Make-up made from food. Food Actives. Colour me healthy. (Natural)

SKIN BODY

NATURAL BEAUTY CAREMARKET SEGMENT

CATEGORY

COLOUR with skin care benefits

APPLICATION

COSMETICS

Eyes

Lips:

Cheeks

FACE

cleanse

moisturise

tone

treatments

SKIN BODY FOOT & HAND

clean

moisturise

exfoliate

treatments

BATH/SHOWER

what categories are of future interest ?

launch

Face

Types of Lip products: lipstick, gloss, tint, sheen/shine, balm, plumper, exfoliators; sticks, wands, pots, tubes

background to Part BHi there,

Me again. Now that I have established in Part A) of my biz plan what I personally want my business to give me and have identified a market, category & brand offer to potentially fulfill this I am now creating ‘the recipe’ in Part B).

I have lots more detail that sits in separate documents but here I have summarised. I love to share but there is a sensible limit! Eg my financial workbooks have full budget P&L by month, quarter and 3 years out built from the bottom up with comments and assumption on most entries.

So I hope my recipe tastes good! Don’t forget to share what I am doing as I so believe I can build this little biz Online where so many busy mothers & / or working woman just me like spend their time.

BTW launch is summer 2011/12.

Enjoy a fresh approach to creating a beautiful new little brand,

Cindycindy@lukbeautifood.com www.lukbeautifood.com

Part B) The Business Takes Shape1. The ‘beautifood’ Business

who is Luken & Co Pty Ltd?

Luken & Co. Pty Ltd is a start up niche beauty venture based in Sydney and founded by Cindy Luken in 2011 with the purpose of creating & marketing a single and manageable & profitable brand, luk beautifood.

who will Luken & Co. be?

1) Owner of the luk beautifood brand, loved by woman for creating beauty food for skin & soul; delicious pure, natural makeup made from skin loving foods.

2) Creator of the Beautifood, Beauty Kitchen & Beauty Cook concepts.

3) Profitable ‘solo’ startup biz achieving gross sales of $250K year 1 with a net profit 20% . Ie $50K after tax (or $1000pw) ie- Stage 1 ( year 1) gsv $250K - self funded & managed, organic growth, sell direct online

• A business built with a strong foundation & flexible framework to easily scale up if & when desired. Ie stage business growth & investment with potential to achieve $10m gsv pa– Stage 2 (2-3 years) gsv $1m– Stage 3 (3-5 years) gsv $10+m

Our mission is to help cultivate passionate, beautiful individuals that dare to be themselves and follow their dreams. We will do this by inseparably intertwining food & beauty in natural and effective beauty products with inspiring, engaging support solutions.

what will Luken & Co do? (mission)

To develop, market & sell natural beautifood products made from

the food active ingredients we (should be) eating daily to create,

nurture, & enhance beautiful skin.

To begin: skin delicious make up Later: digestible skin delicious beauty foods

personal care body-beautiful products

what is Luken & Co’s core business?

what is Luken & Co’s business strategy?

By outsourcing the infrastructure cost, risks and constraints in running an office, manufacturing, warehousing and distribution, build an easy to run, scalable, technology & marketing savvy business that focuses on building intimate and purposeful relationships with consumers.

what are Luken & Co’s core capabilities? • Physical Assets – No investment in operating fixed assets as business outsources business operations. Stock management strategy

minimises holding investment & write offs whilst ensuring the customer is serviced. Aim to hold finished good stock (packaging & materials) only.

• Reputation / source of authority – Cindy Luken - previous business successes: Luken & May, endorsement letters PR support, guest speaker and appearances,

competitions & awards including honorary M.Sc, Professional Associations and Boards. Experience with beauty products & industry.

– Endorsements: from worldwide beauty industry managers, beauty editors & consumers – Unique, innovative brand proposition– Scientific alliances & advisors – research, product claims.

• Organisation – running a streamlined operation; outsourcing logistics and manufacturing & utilising the benefits of a virtual & serviced office. Focused, multi-skilled owner operator who believes in transparency & flexibility to enable the value chain to work for company & consumer.

• Financial - The business is simple. Purchase finished goods, add margin and promote and sell. We don’t have money tied up in plant and fixtures. Sell online with pre-payment + target high profile, secure debtors and manage creditors & debtors to keep cash flow positive. The founder can invest personal funds & as required has access to PE investors.

• Intellectual Property - Building ‘own’ brand & registered trademarks in target countries. Stakeholders embrace our culture of innovation, integrity, highest standards and customer dedication, they help manage our IP (assets) – customers and brands. We are market driven; together we identify and create the new opportunities, this process lives inside our business. We will have systems & operating manuals for all business areas.

• Technology - Is the tool that makes our business hum. A fully integrated online CRM, E-Commerce, ERP & accounting system provides an advantage over smaller, equally innovative SME’s. It provides information at our finger tips – cheap, accurate information in real time, on-time, anywhere, in a useable format to ALL members in our value chain. Collaborative consumption driven via social media platform is our vehicle for intimate communication, generating brand awareness and providing consumer insights & analytics. Sourcing packaging, contractors & researching the market has been made cheap, easy & effective.

Spells PROFIT

what is Luken & Co. made of?

8 Values are at the heart of what we think & doPassion: live what you love Nourishment: good food your body & soul Individuality: believe in yourself; be free to succeed Honesty: our word is our promise Beauty: surrounded yourself with inspiring & beautiful things, starting with natureExcellence: be the best where best is needed Time: to do the things a mother needs to do! People: our likers, our customers, our team, our family & friends.

What are Luken & Co’s business objectives ?

To:• Launch Summer 2011• Obtain gross sales of $250K year 1 with a net profit of 20%• Achieve COGS below 25%.• Cashflow +ve @ launch. Ie pre-sell • Stage growth & investment: potential to achieve $10m gsv pa in 5 years• invest minimum 20% in sales & marketing• Keep product range simple – limit number of SKU’s • Stock – keep at minimal levels. <10% turnover?; Stock turns at 10 pa or >.

Min 12mth shelf life. • Create an outsourced, streamlined and easy self managed business that

can be run without regard to location• Never compromise or fail on quality, reputation means everything. Service

better than competitors. Build success on success of others. Reward those who help me.

how are key risks managed? 1. Capital is not tied up in large fixed assets such as manufacturing & logistics. This minimises initial

investment, creates a market responsive business market.2. Outsource logistics, manufacture & serviced office. Streamlines operations enabling growth to be

managed by keeping investment in people and space minimal & aligned to sales Positions the business to focus on what it does best – fully integrated sales & marketing. Commence from home with virtual /serviced office address on packaging & promotional materials.

3. Operating in a high margin industry – keeps % gsv invested in stock minimised & provides funds to invest in A&P to communicate brand USP.

4. Sales potential strong – product/brand offer suited to domestic and international markets. Target consumer volume extensive. ie everyone loves a lippy!

5. Production volumes low with room to expand – selection of manufacture critical to ensure minimum stock buys in line with small startup needs + can grow with brand.

6. Start up strategy – Key account/s with central distribution engaged during brand & product development to fund initial packaging stock purchase holding for luk brand

7. Stock management strategy – limit number SKU’s. A core range will be supported extensively with promotional & limited editions. Run twice year clearance sales. Ensure SKU’s can be ‘bundled into kits & gifts cost effectively. Build margin around large proportion of stock being sold at promo/incentivised prices.

8. Cashflow as per #6 + manage gap in debtors & collection to be low (<30 days). (note - as most sales will be direct to public – goods are paid before shipping)

9. Raw material costs – only use contractors where the raw material inventory is carried on the suppliers balance sheet (guarantee from Luken & Co) Note - business needs to reach critical mass b4: $500k t/o pa.

10. Eggs not all in one basket. Post establishment, several contractor manufactures will produce products to maintain supply, manage capacity and keep pricing keen + provide pipeline innovative products. (note ~$500k t/o required before this can be applied due to run sizes) & provide a mix of products.

what makes the business unique?

1. Brand propositiono natural makeup made from food active ingredients and healthy colouro creates a multi-sensory experience including tasteo harnesses the very essence of modern healthy eating – fresh foods brimming with delicious

goodnesso helps cultivate passionate beautiful individuals that dare to be themselves and follow their

dreams.

2. Relationships: o with ‘likers’, customers, suppliers, stakeholders, industry and the marketplace

3. Business strategy– streamlined operation– fully integrated online business system – ease & flexibility to scale up

4. Founder & manager

– Cindy Luken

• Influence consumers to choose luk over our competitors• Command higher prices & make bigger profits• Gain consumer & customer trust and loyalty• Deliver greater sales volume• Encourage repeat business• Beat the competition• Build a pipe line of new products• Increase market value of brand• Attract stakeholders – vendors, media, people • Create WOM (word of mouth)

what will the strength of the brand provide?

how does Luken & Co protect its IP?

• Own and protect its brand with international registered trademarks and website presence. – business name, brand name, logo, product name, tag lines,

promotional names & graphics.• Speed to market, innovation – focus on looking and staying

ahead.• Select stake holders that share company values and vision and

operate where needed with non-disclosure documents.

part B) The Business Takes Shape2. The Brand

creating my brand’s heart & soul

This section of the plan brings my new brand to life. There are many ways of doing this and each person or ‘agency’ has its own process; brand wheels, stars, hourglasses, values based techniques etc but as a small biz owner and self taught marketer who wants to keep things easy, cost effective and simple - I just mix my learning's from here and there.

What matters is creating a heart & soul for luk beautifood: defining what it is, what the glue is that holds it together, keeps it unique and why (hopefully!) it will be loved.

There are 2 main parts that create the brand promise – what differentiates it & what make it relevant, followed by a summary & the final brand proposition/story.

You wouldn't normally put this much info in a business plan – I have as I don’t have time to write a separate document. BTW - I never had info like this for Luken & May Biscuits until it was at least 5 years old & turning over $5mio +!

BACKGROUND

what is luk’s source of authority?

• Unique, innovative brand proposition- made from food active ingredients good for your skin- culinary combine tastes & aroma- natural

• Cindy Luken - previous business successes: Luken & May honorary M.Sc, Professional Associations and Boards. Food science & nutrition education. Experience with food, beauty products & industry.

• Endorsements: professionals in industry, beauty editors & consumers • Scientific alliances & advisors – research, formulation development,

product claims, nutritionists• Australian

A) BRAND DIFFERENTATION

what is the brand personality?

• delicious• fresh• inviting • modern

A) BRAND DIFFERENTATION

What are the brand values?

• nurturing• nourishing• multi-sensory – especially taste• healthy• beautiful• inspiring

A) BRAND DIFFERENTATION

what does luk do better than anyone else?

• Creates natural, skin-healthy colour cosmetics from food active ingredients.

• Utilises the intrinsically powerful properties of the foods we should be eating daily to help create, nourish and nurture beautiful, glowing skin.

• Creates a multi-sensory experience including taste. Eg. Culinary combines oils & extracts of citrus, warming spices and herbaceous greens.

A) BRAND DIFFERENTATION

what are the brand attributes?

• Natural• Made from food • Food actives• Botanical • No added nasties:

» no synthetic colours or fragrances or flavours » no mineral oils or petrochemicals» no preservatives except natural antioxidants to

protect oils» no genetic modification, antibiotics or hormones» no sulphates

• No animal testing

A) BRAND DIFFERENTATION

luk is: Foods from plants Eg seeds, grains, oils, fruits, green leaves, Fresh, simple, delicious Natural materials and finishes – both in ingredients & packaging Natural & wholesome with colour bursts: greens, blues, oranges. Tactile packaging and shapes Café chic food props – glasses, bowls, spoons, eating Tone of voice – Vital, Informative, Inspiring, Personal Healthy natural lifestyle Food science & nutrition platform

The Beauty Kitchen™ (beautikitchen™) The Beauty Cook™ (beauticook™) beautifood™

luk is NOT:✖ Eco green or pure organic

story✖ DYI - kitchen cosmetics✖ Glitzy, Glamour or Sexy

(brassy)✖ Yoga and beans✖ “Cheap”✖ Cold & aloof / Ultra

Minimal✖ Clinical / just white ✖ Faddish ✖ Superficial or Artificial ✖ Exclusive✖ An ingredient story✖ Tacky food ✖ Food spa story

unique symbols & associations of the brand?

A) BRAND DIFFERENTATION

what is the role of luk beautifood?

• Food for your skin & soul: provides a multi-sensory, skin delicious philosophy to makeup.

• Formulated to nourish, hydrate & illuminate your skin with an essential mix of food intrinsic nutrients and natural skin-healthy colours

• Harnesses the beauty of good food: its colour, taste, aroma, and skin healthy benefits.

• Harnesses the very essence of modern healthy eating (simple, fresh, balanced, delicious) and applies it to your beauty regime.

• Home of the ‘beauty kitchen™’ where you can learn how to nourish & nurture your body from the inside out & outside in.

• Woman can enjoy beautiful products without compromising their wellbeing or love of stylish things.

• To help cultivate passionate beautiful individuals that dare to be themselves and follow their dreams.

A) BRAND DIFFERENTATION

What does the brand do?

Functional benefits – what it does for me Gently colours and enhances my face creating a beautiful healthy finish without looking made up. Feeds my skin with 100% natural food active ingredients. Feels amazing - so light & luscious you barely know you are wearing it. Allows me to live a more natural, healthy lifestyle.

Emotional benefits – how it makes me feel I feel good knowing I am taking care of myself - however small that may be. Beautiful - naturally Gives me confidence

Expressive benefits – what it tells the world about me I care and respect my body I know how important good food is for my whole body. I enjoy natural stylish things rather than glamour & glitz. I know beauty is more than skin deep

B) BRAND RELEVANCE

Good food nourishes your skin, nurtures your soul & fuels beauty from within.

luk beautifood | brand overview

Personality DELICIOUS I FRESH I MODERN

Values NURTURE | NOURISH I INSPIRE I MULTI-SENSORY I HEALTHY I BEAUTIFUL

Essence BEAUTY OF FOOD

Philosophy

Functional benefits Gently colours and enhances my face creating a beautiful healthy finish without looking made up. Feeds my skin with 100% natural food active ingredients. Feels amazing - so light & luscious you barely know you are wearing it. Allows me to live a more natural. healthy lifestyle.

Emotional benefits

I feel good knowing I am taking care of myself - however small that may be. Beautiful – naturally Gives me confidence

Expressive benefits I care and respect my body I know how important good food is for my whole body. I enjoy natural stylish things rather than glamour & glitz. I know beauty is more than skin deep

who is our audience?

• Female 25+• Typically working &/or mothers• Educated, technology savvy• Increasingly busy – time poor, seeking balance, desires to be more active &

healthy• Goal oriented – career, family, travel, lifestyle• Sometimes stressed – environmental, mental, physical • Conscious of what she puts in and on her body• May have allergies or skin sensitivities• May be a foodie – loves and appreciates good food & taste• Caring and nurturing of self and others and the place she lives in• An eye for beautiful things – at accessible prices

who is a luk woman?

Any woman who is happy & content with herself and motivated by her own inner strength and belief.

She knows that beauty is really about the whole of you – how you look and feel, your attitude and actions.

She is…• creative, clever and inspirational• knows what she wants• honest and soulful• caring and compassionate• loves simple, delicious and beautiful things • healthy, vital, loves life and who she is (most of the time!)

To: • look and feel beautiful • be vital & healthy - energised, radiant glow, fresh,

unfatigued complexion. • have a simple(r), more balanced life• have peace of mind – to know the truth & get results • be seen as clever & understated• to be connected

what does she want?

what change in consumer behaviour do we want?

We want customers to understand the scope of luk’s unique beauty food offering as well as the benefits of living a more natural & healthy lifestyle where food & beauty are inseparably intertwined.

To show that luk is not just another piece of makeup but a deliciously beautiful, nurturing product that they can use, enjoy and get benefits from on a daily basis.

We want them to have luk in their mind-set as a pure, natural make-up range made from skin-loving foods and by using it regularly they are feeding their beauty wellbeing.

[luk beautifood’s mission is to help cultivate passionate beautiful individuals that dare to be themselves and follow their dreams. ]

.

what categories will we be in? {brand stretch / biz growth}

CATEGORY SUB-CATEGORY

WE WILL BE IN:

Colour cosmetics Eye colour, cheek colour, lipsticks

WE CAN EXPAND INTO:

Bath & shower Shower gels & creams, bath foams & oils, body scrubs; bars/soap

Home Fragrance – aroma reeds, candles etc

Inner Beauty Infusions, tonics, shots – new space to be researched & developed

While LUK is entering the beauty market with a range of lip products, it is essential that the brand platform and identity is broad enough to allow LUK to add new products and lines. New products may initially be an extension to the lip range, but in future may include other body beauty products that may be used both internally and externally. The proposed tag line ‘skin delicious make up & more™’ and the company mission and vision allow for future expansion.

What is the brand architecture?

luk beautifood™Skin delicious makeup & more™

Outside inFood active colour cosmetics

for everyday application

Beauty Kitchen™Recipes, menus, treatments,

tips & tricks, library & reference, TV, video’s, books

GivingSpecial packs or ltd edition

Gifting to self or others

Inside outFood active infusions, shots & tonics for taking everyday

Essential

Regular Use &

Connection

Specialpurchase

Essential

what is the brand positioning statement?luk beautifood enables busy working women &/or mums who understand the importance of what we eat & its effect on our health & wellbeing to care for their skin from the outside in with delicious, natural makeup made from food active ingredients and skin-healthy colour. Formulated to nourish, hydrate and illuminate, woman can easily apply a modern, pure food philosophy* to their makeup regime resulting in an effortless, contemporary look with a beautiful healthy glow. Luk beautifood will be the home of the ‘beauty kitchen™’ where woman can learn how to nourish & nurture their whole body from the inside out & outside in with delicious beautifood™ recipes, fast food facts, and tips & tricks on how to feel & look beautiful and be the real you. Our mission is to help cultivate passionate beautiful individuals that dare to be themselves and follow their dreams.

* Definition ‘Pure Food Philosophy’. A modern way of utilising the intrinsically powerful properties of the foods we should be eating daily to create, nurture and enhance beautiful skin.

what is the product range?

On purpose I have shared only a little info here to create a little surprise & delight on launch (not to mention protecting myself)!- small range of ‘lippies’ – nourishing, hydrating balm meets lipstick- nude earthy colours & soft lustre for a naturally beautiful healthy glow- culinary combined flavours: from oils of kitchen herbs and aromatic spices - Menu of delicious ‘foodie’ variety names- Elegant, soft-touch wind up printed ‘slimstick’, printed box or eco-chic ‘flow wrap’. - purse and ‘pocket’ friendly for every day application- subtle, not made up look for everyday wear : @home, dropping off kids, shopping,

gym/whilst exercising, meeting friends, under bright ‘office’ lights- ideal for when you don’t have time to wear anything but lippy, soft and subtle to apply

without a mirror …cause you are on the run!- Delicious little treat – an instant multi-sensory, active pick me up!- rrp around $20

what is the product range?

On purpose I have shared only a little info here to create a little surprise & delight on launch (not to mention protecting myself)!- small range of ‘lippies’ – nourishing, hydrating balm meets lipstick- nude earthy colours & soft lustre for a naturally beautiful healthy glow- culinary combined flavours: from oils of kitchen herbs and aromatic spices - Menu of delicious ‘foodie’ variety names- Elegant, soft-touch wind up printed ‘slimstick’, printed box or eco-chic ‘flow wrap’. - purse and ‘pocket’ friendly for every day application- subtle, not made up look for everyday wear : @home, dropping off kids, shopping,

gym/whilst exercising, meeting friends, under bright ‘office’ lights- ideal for when you don’t have time to wear anything but lippy, soft and subtle to apply

without a mirror …cause you are on the run!- Delicious little treat – an instant multi-sensory, active pick me up!- rrp around $20.

What are the product cost targets ?components Cost per unit

fill

stick

labels

box

shipper

Freight & handling to warehouse

Total 

I am still tossing up whether to share this or not online!! If you are interested, send me a message.

part B)3. Sales & Marketing

background This is the best bit: how much do I need to sell to make money,

where will the range be sold, and how do I plan to achieve the sales targets. (on 15 hrs pw of my time!)I have crunched numbers on sales targets (value & volume) product costs, sell prices and what I can afford to spend to support the brand.I have pulled together a ‘one pager’ on my promotional tactics and shared some ideas, some I will implement. I have not allocated tasks or times or costs, I will work the detail in a separate document, later.

I’ve kept it simple; I think it paints a pretty picture!

GSV ($AUS)Year 1 (FY 2012) $250k

Year 3 (FY 2015) $1m

Direct Sales(Online & other)

Year 1 $250k (100%)Year 3 $500k (50%)

via doors/stockists/portals(inc international)Year 1 $0k (0%)

Year 3 $500k (50%)

What are our sales targets?

GSV = gross sales value

Product Assumptions:@ $19.95 rrp = 13,750 units pa = 1100pm

@$24.95 rrp 11,000 units pa = 900 pm

Where will the product be sold ?

Year 1: via Online. Target $250k GSV

With the need to manage a simple backend coupled with consumers growing desire to purchase online, it opens up the opportunity to engage customers in a more direct, cost effective and meaningful way than through traditional stockists environments.

How?Create an active & engaging website with online shop for domestic sales. Support with an intimate social media & word-of-mouth marketing strategy. Product to be stored, picked & packed in-house, when it becomes unmanageable, outsource to TPL.

In future, how do we grow sales?

Sales year 2&3 can be generated from increasing distribution & / or via increasing the product offer.

a) New Products &/or categories: - lip products, cheek colour, eye colour. - Body care- digestible beauty products

b) New Channels & /or Territories / Geography.1. TV Shopping2. Online portals – beauty, specialist, 3. Traditional Retail (direct or via distributors)

• Speciality retail : Food, Health, Organic shops • Homeware Stores• Department Stores – self select • Hampers inc corporate gifting• Chemists• Beauty Salons • Day and Residential spas• Travel: Duty Free @ international airports; hotel room amenities or VIP gifts; airport lounges and business/first)

4. Export / International

Year 1 (FY 11)

$55k22% GSV

Stock Returns& ullage

$2k

Selling(consultants)

$20k(8%)

What are our ‘selling’ costs?

Postage &

handling$33k

(13%)

Trade Discounts

$0k

Year 1 (FY 11)

$40K16% GSV

NPD$5k

2% GSV

Merchand-ising$0k

0% GSV

Consumer Promotions

$25k10% GSV

Trade Promotions

$0k0% GSV

Advertising$OK

0% GSV

PR(Sampling)

$10K4% GSV

What is our marketing spend?

What is our contribution (gm)?

YEAR 1

GSV (direct sales) = $250k

COGS = $50K (40% on W/S sell price)

SELLING COSTS = $55k (22%)

MARKETING SPEND = $40k (16%)

TOTAL COSTS (Before fixed expenses) = $145K (58%)

CONTRIBUTION (Gross Margin) = $105K (42%)

what is the market entry strategy?

Key to start up is being cash-flow positive on launch/within Qtr 1. This will be achieved via a 2 prong strategy to pre-sell 10,000(!) lipsticks prior to placing purchase orders on stock – packaging & finished goods:

1) Key account – trade / promotionalTarget a major brand in travel / hotel industry with brand or co-brand deal.

This will commence as soon as prototypes are ready.

2) Consumer Sampling campaignGenerate pre-launch ‘first to buy’ orders with W-O-M promotional activity.

how are sales targets achieved?

• Passion. Personal relationships. Knowledge. Technology!• Utilise the power of social media & word-of-mouth-marketing. We will attract

people, brands & businesses that reflect our values. See promotional plan.• Backend, we will utilise technology to run the business in real time and efficiently.

We will create intimate relationship with all stakeholders including contractors and suppliers to ensure supply of product. Orders, customers details and payments are customers entered.

• Our expertise is in developing and launching new products; budgeting, project management, and execution is a given to ensure timing, profit & stock targets are hit. (children getting sick excluded!)

• Budget allows for ‘sales consultants/freelance contractors’ to seek & find online consumer clusters prospects and who can assist in rolling out our social media strategy.

Get the brand into people’s hands (trial) & create and intimate 2 way dialogue

Build brand awareness - offer needs to be unique, clearly & easily understood

Create sales online – bring prospects to our online boutique

Build credibility within industry (beauty editors, foodies, scientists, nutritionists & associations)

Connection 

Grow strong personal relationships with consumers and enable consumers to ‘live’ the brand- membership- intimate events

Advocacy

Create advocate programmes & build loyal brand partners (key opinion leaders) to refer brand and influence peers

Sharing

Create, contribute & interact with communities & connect people. Facilitate co-creation and information sharing.- Blog- Twitter- Facebook- You tube TV- forum

Trial/Sampling

Establish cost-effective online sampling. Build on-going network ofbrands, events, magazine, online contacts to initiate sampling& promotions

how will we promote the brand?

Launch brand

Unique, inspiring and engaging offer.

Build reputation amongst users

1. Competition prizes Partner e-newsletters, contra exposure in web & print media. Example – ABC Delicious magazineMiniatures for large volume requirements.

2. High-profile brand partners Sourcing partners to leverage off their success, add value and extend the product mix eg luk beautifood for Merivale Group Only

3. Joining member-benefit programs Special offers, competitions on web, email and DM.Examples - Virgin Mates Rates, ANZ Social Club, St George Instant Benefits, Advantage

Card, Where to Enjoy.

4. Shopping portal e-newslettersProduct profiles, special offers, event-based gift ideas (Mother’s day)Examples - Wishlist, Yahoo Shopping

5. Online female-skewed, wellbeing or food magazinesCompetitions, giveaways and special offersExamples - www.sw.com.au, New Woman, Femail.com.au and Girl.com.au,

What are some examples of promo activites?

6. In-kind support of eventsCharities, popular events & womens’ corporate breakfasts.

Benefits Sampling opportunity Verbal acknowledgement and public presentation of giveaways/prizes/raffle itemsLogo on printed marketing collateralInclusion of informational/branding collateral in goodie bags or at table

placements.Examples

Business Chicks Breakfast, Australian Institute of Management, CPA Women in Business

7. ‘Deal’ sites, Coupons and Discount OffersReal Living, Shop Til You Drop

8. Radio promotions/giveaways

9. Synergistic partnershipsBundled packages, luk beautifood with health & wellbeing food brandsExamples – T2

more examples of promo activites

part B)3. Operations

what does our supply chain look like? A streamlined supply chain is required to enable easy management & quick personal response to customer needs.

CONTRACT MANUFACTURER MANAGEMENT

Start up: single site, AustraliaWith growth: as required

Partners to have: Production

NPD / Technical CapabilitiesExport Capabilities

Inventory Management&/or Gift Pack Assembly

LOGISTICSPick, pack & ship

orders

Start up: in houseWith growth:

Outsource to 3PL

Order fulfillmentSingle to bulk

shipments+ special

requirements

ORDER PROCESSING

Startup: sales online / direct by

consumerWith growth: + key

account management

SALES SERVICE

Start up: in house, With growth:

outsource to hand picked WAHM consultants

PACKAGING PROCUREMENT

Start up: in house purchasing &

management. Hold stock on luk balance

sheetWith growth: transfer

to manufacturers

how is our product made?

• Product is contract manufactured in Australia by accredited facility: partner selection based on meeting capabilities for product type/styles, price, volume, lead-time & technical requirements. Experience in producing natural &/or organic products for EU & US markets is mandatory.

• Detailed technical brief inc volume & price targets are written by Luken & Co. to source & manage manufacturing partners

• Specifications are documented and monitored to ensure quality compliance.

• Forecasting models are driven off sales budgets & strategy reviews. Production leadtime times & volume requirements are understood.

• Shelf life minimum 12 months from date of production • Until credit rating & relationship is establish product is pre-paid.

how is product quality assured? • Our quality systems will form the backbone of our brand. • Product formulation, packaging (inc legislative labelling requirements), ingredient, production facility

and supply chain specifications are documented and monitored/audited to ensure quality compliance. • Product complies with regulations, standards and guidelines from Agencies in Australia concerning

cosmetics such as: – Permissible ingredients: NICNAS. National Industrial Chemicals Notification & Assessment Scheme.– Ingredient labelling requirements: ACCC. The Australian Competition & Consumer Commission– NCCTG Guidelines concerning the cosmetic - therapeutic boundary in relation to advertising claims: National Co-ordinating Committee on

Therapeutic Goods– Industry Association: The Cosmetic. Toiletry & Fragrance Association of Australia– General Advertising Claims: The Australian Competitor & Consumers Association

• Product Dossiers are prepared & maintained on each product. • Shelf life trials, packaging & product stability & performance testing are conducted on all products

prior to launch. • Products are manufactured in compliance with a strict charter of ethics which guarantees that they

are safe to use on even the most sensitive skin. • Transparency on 100% of ingredients used in products to assist consumer choice, no regulations

governs the use of the term ‘natural’ in Australian cosmetics. • 100% money back guarantee.

how are our products developed? • Consumer need identified. • Product Development Brief scoped.• Research of food ingredients and their functional role in formulations, attributes and benefit

to skin conducted & tabled.• Styles of products and packaging researched, collated & assessed.• Bench top formulation development undertaken by Cindy Luken (B.App Sci Food & Nutrition + Hon MS)

to create a unique product not pre-meditated by existing cosmetic players. [Inc. base/stick formulation (stability & performance), colour trials and flavour development.]

• Contractor Manufacture Selection strategy prepared. Potential partners identified, assessed & selected.

• Product prototypes developed: base then colours then application of flavours using proposed packaging conducted.

• Product Testing• Production Trials• Product Testing• Consumer Testing

how do we store and ship product?

• Packaging & unique ingredients are purchased by Luken & Co. Pty Ltd in minimum order quantities &/or of quantities suitable for production run & forecast requirements. Goods shipped direct to manufacturer.

• Initially finished goods are shipped to Luken & Co.P/L (est. <2 cubic meter) for individual order despatch via Australia Post.

• With growth, goods will be warehoused, picked, packed and shipped via 3PL. (outsourced logistics specialist). Combination of postage & couriers to ship goods within & outside of Australia will be used.

• Fully integrated online biz system will be used for managing raw materials, packaging & finished goods across multi-locations. Partners will have logins.

• Tracking systems for goods will be in place.

part B)Finance & Admin

where / how is the office set up & managed?

• Dedicated, fully equipped home office up & running.• Once product development is complete a local, city fringe (Crows Nest)

serviced office (using ‘virtual’ facility) will be set up to provide address for packaging, mail etc and contact number.

• This facility allows for– biz growth – receptionist, meeting rooms, office, secretarial service etc. – support when travelling or not available– professional image– working space away from kids / family when necessary– work place hub / collaboration with other businesses and people– café next door!

• Business model is created to limit labour intensive admin & has the ability to outsource roles (eg customer liason, order dispatch, book keeping, online marketing etc) as soon as required.

who is on my team?

• Me for now! Founder, sole director & employee. (see page 6 for CV)

• The business is setup to utilise the resources of others (of which I have an excellent ‘like-minded’ network) – many can operate from their ‘home office’ to grow sales & brand, source packaging or contractors, provide online support etc.

• Development of strong relationships with specific service providers is critical. Eg graphic design (logo, packaging design etc)

• Coupled with this a support team will be built – both private and government.

how will the business be funded/manage growth?

• The business will be staged to correspond resources available – time & money (& energy!)

• @ Startup. – Establishment & running costs are low, stock holdings however ‘cost’. Cashflow to be

managed by pre-sell. ‘Cash safety net’ available to cover any timing shortfalls but it is mandatory to secure sales before committing to production.

– Credit exposure is minimal. Online orders pre-paid.– If time is pressed with strong sales, margin is built in to cover assistance.

• First 3 years target are ‘sensible’ & self funding. • Detailed monthly & quarterly financials (P&L, Cashflow & balance sheet – Actual

v’s budget) + strategy to attain figures & a review process will prepared to ensure I know where we are and what adjustments need to be made.

• Year 3 onwards – an Investment & Funding Strategy will be written based on what the business has achieved, what’s transpired and in what direction I want to take it.

what are our financial targets? small is beautiful !

what are our financial targets? - background P&L, Cashflow & Balance sheet have been prepared in detail.

P&L has been prepared in an Excell workbook format to generate the key information required to manage the business. Figures can be easily changed to see various scenarios. Year one is by month with quarterly additions for tying into a strategy / review process. All accounts/line entries have been created so it can be used for entering into the ‘cloud’ backend system to run the business.

To get to this point extensive investigation & research was conducted on rrp of compititor products, product manufacturing costs (packaging & fill), NPD, cost of insurance, trademarks, virtual office, postage, etc. Many costs were already known from experience, (tax returns, ASIC fees, bank charges, logistic, design, sampling, trade margins). Assumptions were made and documented.

Simple ‘launch’ balance sheet was prepared to see key assets (stock holding values + account receivable on pre-sell) & liabilities (launch trade sale / accounts receivable exposure)

Cashflow was created using a model already on hand.

I am not sharing these detailed documents but are more than happy to email a stripped down model of what I havecreated.

what is our exit strategy?

• None but thoughts that come to mind…..• Business really needs to get to at least a $5mio turnover before it is of interest to

potential buyer. Ball park value would put it at a multiple of 7-10 times ebit + stock.

• Potential buyers could be– Existing cosmetic or skin care brand with $20mio t/o who sells via doors and wants to get

online & increase GSV & NP quickly.– Beauty product distributor who want to add ‘ready made’ own brand to portfolio– Online business wanting to vertically integrate &/or own a brand + benefit from data base. – Party plan / direct selling business – add cosmetics to portfolio– Contract manufacturer who has own brand portfolio

• Alternatively, bring onboard a equity partner/s– Help grow & manage the business– Share responsibility and risk– Provide more ‘me/family’ time

what next?

• Secure trademarks• Develop product inc packaging design• Source & liaise with manufacturer• Lockdown brand graphics• Design website & social media profiles/sites• Research & set up backend operating system + biz process designs• Product testing• Prepare product dossier • Design marketing support materials• Prepare promotional plans & activity• Pre-sell• Manufacture product• Launch product• Sell, sell, sell

conclusionHi there, Wednesday May 4th, 2011

I hope you enjoyed this very different approach to writing a business plan.

It has taken a long time to get here – longer than you think as I actually had this idea in 2007, scribbled it down on a few bits of tatty paper, liked the numbers and immersed myself in the research of all things lipstick. So, between babies 1 & 2, the product concept was developed in my kitchen, a logo & graphic designed, a manufacturer sourced, packaging supplier found, & formal/laboratory NPD (new product development) commenced.

Then, we (hubby, 10mth girl & 2yr boy) disappeared overseas for 18 months on a ‘grande vacance’ (planned 5 years pre-babies). The Product went thru testing and production trials via the lab & manufacturer and I created a ‘look’ (names, colours, images, tone & feel) whilst we were tied up on the banks of a French canal and the little ones slept.

I had grandiose plans of launching whilst away but I severely under-estimated lots of things: unreliability of mobile internet in the countryside, utter exhaustion from biking & barging everywhere, being with friends & guest and just how special it was to be together as a family living day by day.

So, everything was put on hold til I re-emerged in Feb 2011 and tried to work out how to set up and run this business so I & my family could continue to live the sweet life….and maybe in the future just take off again, home school the kids and enjoy life floating around together. (with better internet connection!!)

There is a mountain of things that need doing and I need to pick up the pieces of where I left off but most importantly for my confidence & motivation by going through this process of writing my business plan I now feel I know where I am heading, what needs doing & how I’m going to do it.

My biggest task ahead of me is going to be the pre-sell of my product so I can start this biz cashflow positive, so if you have some friends, family or colleagues that you think would love to follow my journey & use my beautifood products then please share with them my details so I can start my database of prospects for a Summer 2011/12 launch!

Warm regardsCindyCindy Lukencindy@lukbeautifood.comwww.lukbeautifood.com (coming!)my biz startup diary: www.luk-bycindyluken.blogspot.com