How to write your own Annual Report proposal

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Annual Report Sample
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Annual Report Sample

Naturally Good Cosmetics has now completed its second year of profitable business and is perfectly positioned to grow its market share in the United States and expand to foreign markets. Naturally Good Cosmetics delivered strong performance in our second year as we continue to grow our business, proving that the cosmetic market welcomes our all-natural, American-made, good-for-skin products. Our innovative Alivian products led the way in terms of profitability, and our Lune Verte products were a close second and are consistently rising in popularity and market share.

We are focused on carrying out our four-pronged business strategy as follows.

  • Continue to build strong brand recognition
  • Bring new products to market
  • Expand our market into Canada and Mexico
  • Increase profitability

The following is a description of Naturally Good Cosmetics’ operations. We have two manufacturing and distribution facilities within the United States, from which we sell our products, which currently number 23 different items.

Customer Service

Our ordering and customer service calls are managed by Call-Us Phone Services, a nonprofit group that trains and employs military veterans looking for work.

Human Resources

We are a growing company. We currently employ more than one hundred people, including three full-time research chemists specializing in botanical extracts and the use of natural minerals. In the next year, we plan to hire four more of these specialists. We are also always looking for sales personnel who are enthusiastic about marketing and evangelizing the use of natural products.

Sales and Marketing

We advertise online, utilizing our own social media efforts as well as paid ads on socially-conscious and environmentally-conscious web sites. We also run ads in print magazines, especially those catering to health-conscious markets and to mature women. We also partner with other organizations to create seasonal offerings advertised on television.

Supply Chain

All our products are produced by and distributed from our two warehouses in Vancouver, Washington and in Bennington, Vermont. Most distribution occurs through United Parcel Services, although larger orders are carried by various trucking firms to our largest customers.

Production Workflow

Our manufacturing facilities maintain supplies of all our ingredients, but our warehouse capabilities are currently limited. We predict numbers for our manufacturing output based on current orders and on our scheduled advertisements, and have designed our processes to be easily scaled up or down as demand warrants. Next year, we will open two additional manufacturing facilities.

One in Canada, and one in Mexico.

Technology

As an all-natural products company, we have little reliance on technology other than our blending and packaging machines. We update these and our office computers as needed.

Research and Development

Our research department is always looking for new formulations of natural ingredients for our products. We also encourage ideas from our other employees and are willing to purchase the rights to formulas provided by inventors outside our company.

Operations

We are headquartered in Vancouver, Washington, with 127 employees. We create natural cosmetics to enhance every woman’s natural beauty. At present, Naturally Good Cosmetics is situated on the border between being a modestly profitable U.S. company or a wildly successful international corporation.

This is the time to invest in our future. As such, we plan to take on more debt in the near future, which will allow us to expand into other markets and build our brands. Our manufacturing processes are modest and can easily be re-created in Canada and Mexico. We plan to quickly become the supplier of choice for natural cosmetics throughout the western hemisphere.

Following is an evaluation of Naturally Good Cosmetics’ strategic position in the marketplace. Naturally Good Cosmetics is a relative newcomer to the industry, but that serves the company well as our products use all-natural, non-GMO, good-for-skin ingredients, which is what today’s consumer is looking for.

Market and Audience

Our customers are women of all ages who are concerned with using only natural cosmetic products. Studies show that women age 39-80 are particularly interested in anti-aging, all-natural cosmetics like the ones we offer. This is a growing market trend, as described in the Industry Trends portion of this Annual Report.

Market Approach

We know that our customers are interested in more than style magazines. Therefore, we advertise in print and online media of interest to them, such as magazines dealing with the environment, family issues, and social consciousness, as well as magazines targeted toward mature women. We often market in partnership with other companies that appeal to the same demographic.

This decreases our advertising costs and creates the appearance of added value and community participation. The most successful example of our multiple-company marketing strategy is our partnership with Her Supplements and Schauer Flowers to create special seasonal gift baskets as advertised and sold on television.

Analysis

Bigger, long-established cosmetics companies built their reputations on chemical-based perfumes and synthetic materials such as artificial fibers embedded in mascara. Although many have recently introduced lines of more natural products, these companies are known by their previous histories and thus have obstacles to establishing themselves with consumers looking for all-natural products. Naturally Good Cosmetics has been known as an all-natural company since the day we launched our first product. Consumers know and respect our brands, and this is a big advantage for quickly growing our market share.

The "Buy Local" movement is also a growing trend that we are positioned to benefit from. Because we use special formulations of natural ingredients, we can often use local suppliers for many ingredients. This allows us to advertise an additional "Buy Local" appeal of our products.

The population of the United States is changing, mirroring changes in most of the more affluent countries of the world. These changes are reflected in the cosmetic industry. The first important trend to note is the aging of our population. This causes the cosmetic customer to look for anti-aging products such as moisturizers, wrinkle-reduction formulas, and dark-spot removal products.

The second important trend is an emphasis on saving time. Women no longer have hours to spend on their appearance, so they look for products that advertise ease of use and overnight benefits. A third important trend is the concern of a growing part of the population about artificial and genetically-engineered ingredients. Many customers are willing to pay more for products that can advertise all natural, non-GMO ingredients.

Naturally Good Cosmetics is well positioned to take advantage of all these trends. Our Alivian olive-oil based line especially appeals to women looking for anti-aging formulas and to those wanting all natural ingredients. Next year we will introduce three new products in this line. An eye cream that includes cucumber extract for puffiness reduction and firming, a long-lasting natural lip gloss, and an overnight cream featuring a concentration of anti-oxidants to reduce the appearance or redness and dark spots.

Our products are all-natural, non-GMO, and easy to use on all types of skin, and our advertising will focus on these features. Although it’s always difficult to predict the future, we expect the following events to happen. Worldwide sales of cosmetics is expected to grow by 13% next year, and sales of natural cosmetics are predicted to grow by 22%.

Our Forecast

As all our products are natural and Naturally Good Cosmetics is growing in name recognition, we predict that our company’s sales could grow by as much as 25% in the United States market, and even more in Canada and Mexico.

Background

These numbers are based on the analysis of world markets prepared by the World Commercial Cosmetics Council.

Assumptions

Our numbers are based on the assumption that the world economy is emerging from a recession and women in particular will have more money to spend next year. We also assume that the trend toward desirability of natural products will continue to grow.

Significance

Based on this forecast, we are confident that we should invest in the future by expanding into Canada and Mexico, as well as introducing new products into the United States market. Naturally Good Cosmetics envisions a bright future. Our products are special formulations of common ingredients, so manufacturing costs are small and manufacturing can take place almost anywhere in the world.

This allows for great mobility. Not only will we capitalize on the growing market for natural products in the United States, but we plan to expand into Canada and Mexico. These countries offer a huge potential market.

If sales in Canada prove especially profitable, we plan to take advantage of the same packaging and branding efforts to expand the Canadian market to other British English-speaking nations and British Commonwealth countries such as the British Virgin Islands, the United Kingdom, Australia, New Zealand, and India. Sales to Mexico will be closely monitored, and we may expand our Spanish-packaging efforts to sales throughout Central and South America. Our shareholders are as follows. Naturally Good Cosmetics employees Shares.

4Women Business Alliance Group Shares. CMB Fund Shares. MK Lester Investment Group Shares.

We anticipate a 2-for-1 stock split in next year’s second quarter to increase the number of shares and decrease the market price. The following tables outline Naturally Good Cosmetics’ financial statement. As a relatively new company, we are growing quickly in both size and profits, and plan to expand into the international arena next year.

The market for natural cosmetics grows exponentially every year, as does the market for anti-aging products for mature women. "We create natural cosmetics to enhance every woman’s natural beauty". Naturally Good Cosmetics has created brands specifically for these markets.

We create natural cosmetics to enhance every woman’s natural beauty. Naturally Good Cosmetics is well positioned to grow our market share in the United States, as well as to expand into the international arena by distributing our products in Canada and Mexico. In the next year, we plan to.

Introduce five new products to our United States market These include three new products for our Alivian line and two new products for our Lune Verte line. Create a manufacturing and distribution center in Canada The same formulas sold in the United States will be created and sold throughout Canada, with new packaging in British English and French. Create a manufacturing and distribution center in Mexico The same formulas sold in the United States will be created and sold throughout Mexico, with new packaging in Spanish.

Grow our market share with smart advertising We know who our customers are, and we know how to efficiently reach them online and in print and television ads. Partner with like-minded companies to offer combination deals to customers This distributes marketing costs among several companies, promotes a community-minded image, and helps customers to perceive these combo deals as value-added offerings. Stay true to our ideals We strive to be the number 1 supplier of natural cosmetics in the world. We will never accept the use of artificial or GMO ingredients, and we will advertise our products as all-natural.

Donate to environmental causes In the spirit of encouraging enthusiasm for all-natural products, we pledge to donate 5% of our profits to causes that support and preserve a healthy planet for all living things. At Naturally Good Cosmetics, we believe that integrity is everything. We strive to be good employers and good citizens of our community and our planet. About us - Naturally Good Cosmetics burst onto the U.S. beauty market two years ago.

"We are the only 100% all-natural, non-GMO cosmetics manufacturer in the United States". We create natural cosmetics to enhance the natural beauty of women. We are the only 100% all-natural, non-GMO cosmetic manufacturer in the United States. In our first year, we introduced ten products in our Alivian line of olive-oil based products.

In our second year, we added two more to the Alivian line, and introduced our Lune Verte line of mineral-based products. We maintain manufacturing and distribution facilities in Vancouver, Washington and in Bennington, Vermont. Naturally Good Cosmetics was founded in 20xx and employs 127 people.

Naturally Good Cosmetics is headquartered in Vancouver, Washington and has offices in Bennington, Vermont. Products - Moisturizers, lip glosses, lipsticks, eye creams, dark spot reduction cream, night creams, eye shadows, and face powders.

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Length of Sample: 18 Pages

There are thousands of proposal topics to choose from in Proposal Pack. This sample uses the following set of Proposal Pack topics: Cover Letter, Title Page, Table of Contents, Introduction, Industry Trends, Present Situation, Forecast, Financial Statement, Summary, Company History, Future Potential, Company Operations, Shareholders, Strategic Position, Board of Directors, Back Page.
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