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Glow Lady: The Business Model Analysis

The business is called Glow Lady and is a makeup business, mainly targeting women. It will be an online-based business in the meantime but will open a physical shop later in Florida. The business will offer delivery to customers at a certain fee, depending on where they live. The business will majorly deal with high-end makeup products and skincare products assured of non-contamination and products that will not cause any harm to the customers. The client’s need comes first, and this will be made clear by the type of products the business will stock. The products have to be tested and approved not to cause any harm to the most sensitive skin types.

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Target Market/ Demographic

My target market is ladies, the young, middle-aged, and the old who might be interested in skincare products. The young and the middle age are the largest groups that I will be targeting since they are the ones who use makeup and skincare products mostly on daily basis. I will price the products accordingly, which will be purely determined by the buying price, the marketing cost, distribution, and the carrying price. The prices will be fair enough while also considering what my competitors charge. The business will charge standard prices that are not too high or too low than the competitors’ ones.

Ownership and Distribution

The business will be solely owned since I am planning to start the business alone. Later it can be a partnership in case a trustworthy person suggested a partnership that would also boost the business. I consider that the sole proprietorship, as the most popular form of business ownership, will add the necessary control and flexibility into the newly created business. The distribution will be done through door-to-door delivery, which is easier than people going to drugstores. It saves a lot of time and adds protection, as it is more convenient considering the COVID-19 pandemic, which makes it hard for people to move around. Creating a website where the customers can add any product they need to the cart and later checking out will make the shopping distribution easier.

Business Culture

It will entail a hierarchy business culture that entirely focuses on stability and structure. The culture will adhere to the traditional structure set and will offer stability throughout the business. Through the culture also, the organization is a priority, and this will highly assist in business development especially for an online start-up. The organization is needed to arrange marketing and distribution of the business. It will grow to be stable and follow a structure that ensures there are no stability issues.

Ethical Dilemma

One of the ethical dilemmas that might face the business is buying products and realizing they are not genuine. To avoid this as the owner, I will have to do due diligence, and in case some products mistakenly were delivered to the business to be sold, I would avoid selling them to the public. The business goodwill is more important than the profits that would be made if the products were sold. Maintaining high ethics and honesty in the business is more important than making profits on products that would be harmful to the customers.

Projected Income Statement

products sales $248,000
distribution costs 500
cost of goods sold 10200
profit 14100

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