Annual Report Sample
Naturally Good Cosmetics 502 95th Avenue NW Vancouver WA PH 555 555 5555 FX 555 555 5556 NaturallyGoodCosmetics.com Proposal Naturally Good Cosmetics www.NaturallyGoodCosmetics.com Accent
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. Description PageHeader PageHeader 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 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 PageHeader The following is 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 different items. Customer Service Our ordering and customer service calls are managed by Call Us Phone Services nonprofit group that trains and employs military veterans looking for work.
Human Resources We are 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 employees. We create natural cosmetics to enhance every woman’s natural beauty. PageHeader At present Naturally Good Cosmetics is situated on the border between being modestly profitable U.S. company or 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. PageHeader Following is an evaluation of Naturally Good Cosmetics’ strategic position in the marketplace. Naturally Good Cosmetics is 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 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 big advantage for quickly growing our market share. The "Buy Local" movement is also 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. PageHeader 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 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 long lasting natural lip gloss and an overnight cream featuring 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. PageHeader 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 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. PageHeader
Naturally Good Cosmetics envisions 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 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. PageHeader Our shareholders are as follows.
Naturally Good Cosmetics employees Shares. 950 4Women Business Alliance Group Shares. 000 CMB Fund Shares. 000 MK Lester Investment Group Shares. 000 Summary We anticipate 2 for stock split in next year’s second quarter to increase the number of shares and decrease the market price. PageHeader
The following tables outline Naturally Good Cosmetics’ financial statement. As relatively new company we are growing quickly in both size and profits and plan to expand into the international arena next year. Financial Statement Current Assets 2.2 million Accounts Receivable 15.3 million Total Current Assets
17.5 million Fixed Assets Long Term Assets Equipment 1.5 million Minus Depreciation .2 million Real Estate 7.1 million Intangible Assets
.3 million Total Assets. 8.9 million Liabilities Accounts Payable .7 million Taxes Payable
.15 million Line of Credit .8 million Total Liabilities. .30 million Notes Payable to Banks and Others. Creditor Balance Payment Frequency
How Secured BB BANK $3.1 million Annual Real estate manufacturing facilities Totals. $3.1 million Real Estate. Property Current Value
Monthly Payment Headquarters Offices Vancouver WA $1.9 million $2.1 million $1.1 million Manufacturing Plant Vancouver WA $2.3 million $2.6 million $1.5 million Manufacturing Plant Bennington VT
$2.5 million $2.4 million $1.6 million Totals. $6.7 million $7.1 million $4.2 million PageHeader 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 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 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 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 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 healthy planet for all living things. Summary 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. PageHeader 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 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. How to Contact Naturally Good Cosmetics. Naturally Good Cosmetics Headquarters 502 95th Avenue NW Vancouver WA
Phone. 555 555 5555 Fax. 555 555 5556 E Mail. info@NaturallyGoodCosmetics.com URL. www.NaturallyGoodCosmetics.com PageHeader Naturally Good Cosmetics is proud to present our Board of Directors. Lucinda Almendez Chairman of the Board CEO Naturally Good Cosmetics Mercedes Jones Vice Chairman CFO Marchesa World Foundation Meyer Verini President Chadwick College of International Business
Veronique Doubliet Executive Vice President 4TheWomen Foundation John Carsten President and Founder MHR Network Ford Leandro Chairman Alnature Investments Naturally Good Cosmetics 502 95th Avenue NW Vancouver WA
PH 555 555 5555 FX 555 555 5556 www.NaturallyGoodCosmetics.com