RISESI SALON OPERATOR’S ASSOCIATION

SMALL SCALE PRODUCTION OF COSMETIC PRODUCTS

“Unite all salon operators in Uganda as one voice and body, empowered with various skills, having
access to affordable financial services, inclusion in Government programmes and
available opportunities for sustainable wealth creation”

Tel: 0393249249, 0782026486

KAZO MUGANZIRWAZZA ZONE II
LUGOBA ROAD NEAR ST LUKE C.O.U. www.risesiuganda.com
P.O BOX 37674, KAMPALA – UGANDA Email: [email protected]
Email: [email protected]
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Tel: 0700212920, 0773932244
PROJECT TITLE Application for partnership and Funding support
towards the cosmetics and beauty care products
manufacturing company.

PROJECT APPLICANT Risesi salon operator’s national association

P.O.BOX 37674 Kampala-Uganda
Tel; 0393249249, 0782026486,
Email; [email protected]
www.risesiuganda.com

PROJECT CONTACT PERSON Mr. Kamanyire Celestine

Risesi salon operator’s national association
P.O BOX 37674 Kampala
Tel: 0782026486, 0700212920
Email; [email protected]

PROJECT LEGAL HOLDER Risesi Salon Operator’s National Association

PROJECT DURATION 5 YEARS

(April 2023-March 2027)

PROJECT TARGET BENEFICIARIES Profiled 19,226 salon owners and other clients

PROJECT BUDGET Ugshs 401,000,000/=

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 INTRODUCTION

ABOUT US

RISESI SALON OPERATORS NATIONAL ASSOCIATION

RISESI stands for “RAISE INVESTORS, SAVE EASILY, SERVE IMPORTANTLY”

RISESI is a joint -Umbrella and a National Ugandan Association working for you- the beauty
professionals, organization that unites and provides strategic leadership to salon associations and
groups in Uganda.

Head offices for the Association and SACCO are located in Kawempe Kazo Mugazilwazza zone 11 near
St Luke C.O.U Lugoba Rd, P.O. Box 37674, Kampala Uganda, Email [email protected],
www.risesiuganda.com

RISESI is a company ltd without share capital incorporated under company’s ACT NO.1 2012, on the
18th November 2020 with registration number 80020001275031

Currently the RISESI Association has 640 groups, 1 SACCO and with a profiled membership of 19,226
salon operators expected to rise to 300,000 registered members in the whole Country by 2026.

Our vision;

“A National Unified, Transformation and Wealth Creation Salon Operators Association”

Mission;

Is to act as one national voice representing all Ugandan beauty professionals, defending the rights of
the professional beauty industry and speaking on our members behalf on government regulatory
changes affecting our industry.

Goals; Together with our members, comprised of industry professionals, owners, distributors,
manufacturers and schools, we are committed to growing, uplifting and improving the beauty
industry.

Therefore, one of our goals is establishing a small-scale manufacturing center with 4 branches in
Uganda in promotion of youth inclusion in import substitution (NDP111).

Creating 3,000 jobs along the value chain in industrial processing, distribution, marketing and sales
by 2026.

PROPOSED BUDGET OF COSMETICS MANUFACTURING BUSINESS (PLAN)

Cosmetic and Beauty products are used in all parts of the world and of course those that are in the
business of manufacturing cosmetics and beauty products are known to generate sales year in year
out if the business is well managed. As a matter of fact, economic downturn hardly affects the
purchase of cosmetic and beauty products because it is a commodity that plays a major role in our
daily living.

INDUSTRY OVERVIEW

Cosmetic and beauty products manufacturers basically prepare, blend, compound and package
beauty products and cosmetics for their clients. Products included in this industry are perfumes,
makeup items, hair preparations, face creams, lotions and other toiletries. Unpredictable incomes do

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not really affect cosmetics and essential goods such as shampoo, leave-in treatments, experience
steadier demand.

A recent research conduct (IBIS WORLD) shows that the cosmetic and beauty products manufacturing
industry is in growth phase of its life cycle, though it is likely to enter the mature phase in the near
future. One good thing about the cosmetics is that the business can be targeted at national and
international markets depending on your financial capacity. Over and above, the cosmetic and beauty
products manufacturing industry is a profitable industry that it is open for any aspiring entrepreneur
to come in, establish his or her business, compete for the available market and make profits.

We are in the cosmetic and beauty care manufacturing business to engage in the production of skin
care products, colognes, hair care products and cosmetic formulations. We are also in business to
make profits at the same to give our customers value of their money we want to give people and
business that patronize our cosmetic and beauty care products the opportunity to be part of our
success story.

Beyond manufacturing quality and safe cosmetic and beauty products, our customer care is going to
be second to none. We know that our customers are the reason why we are in business which is why
we will go the extra mile to get them satisfied when they visit purchase any of our stores.

OUR PRODUCTS AND SERVICES

RISESI is going to run a standard cosmetic and beauty care product manufacturing company whose
products will not only be sold in Kampala but also throughout Uganda and East Africa, we will ensure
that we do all that is permitted by the law in Uganda to accomplish our business goals and objectives.

These are some of the products that we will be developing;

➢ Hair care products

➢ Face and body creams, beauty creams or lotions and hand cream (skin care products)
➢ Cosmetics, including face powders
➢ Nail care preparations and nail polishes
➢ Essential oils
➢ Hair extensions, pads, paper (Banana fiber)
➢ Toilet creams and lotions

OUR VISION AND MISSION

Our vision is to establish standard cosmetics manufacturing company whose products will be sold
throughout Uganda and E. Africa.

Our mission is to establish a standard cosmetics manufacturing company that will favorably compete
with leaders in the industry, we want to build a business that will be listed amongst the top 5 cosmetic
and beauty care brands in the country.

Our business structure, this is why we will ensure that we put proper structure management in the
place that will support the kind of growth that we envisaged while setting up the business. We will
make sure that we hire people that are qualified, honest, hardworking, customer centric and are ready
to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management
staff and it will be based on their performance of a period of 5 years. Or more depending how fast we
meet our set target.

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Management Structure;

Chief Executive officer

Plant manager (production)

Human resources and admin manager

Merchandize manager

Sales and marketing manager

Machine operators/ chemist

Accountants

Transportation (Distribution Truck drivers)

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength leverage on the opportunities that will be available to us, mitigate
our risks and be well equipped to confront our threats.

SWOT S-strength,

Our major strength as a cosmetic is the vast experience of our management team. We have people
on board who understand how to grow business from the scratch to becoming a national
phenomenon. So also, the wide varieties of cosmetics and beauty care products that we produce, our
large national distribution network and of course our excellent customer service culture will definitely
count as a strong strength for the business.

W-weakness,

One major weakness that may count against us is the fact that we are a new cosmetics manufacturing
company and we don’t have the financial capacity to engage in the kind of publicity that we intend
giving the business.

O- Opportunities,

The opportunities available for cosmetics and beauty care products manufacturing companies with a
wide range of products are enormous. This is due to the fact that almost all Ugandans and people
from all over the world make use of cosmetics and beauty care products regularly.

T-Threat,

We are quite aware that just like any other business, one of the major threats that we are likely going
to face is economic downturn and unfavorable government policies. Another threat that may likely
confront us is the arrival of a new cosmetics and beauty care product manufacturing company in the
same location where ours is located.

MARKET ANALYSIS

Market trends; if you are knowledgeable you will quite agree that companies are leveraging on
creativity in terms of packaging and marketing to continue to stay afloat in the industry. The
exploration of safer raw materials for the production of cosmetic and beauty care products the truth
is that people all over the world are looking for cosmetics and beauty care products that contain less
chemical hence the increase in demand for products that are produced from herbs.

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There is an adaptation of eco- friendly approach towards the production and packaging of its products
(environmentally conscious consumers).

OUR TARGET MARKET

When it comes to selling cosmetics, there is indeed a wide range of available customers. We are in
business to engage in whole sale distribution and retail cosmetics to everybody in our target market
location. Lastly, our employees will be well taken care of and their welfare package will be among the
best within our category in the industry, meaning that they will be more than willing to build the
business with us and help deliver out set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will
recruit from time to time.

SALES FORECAST

If your products are well -packaged and branded and if your production plant is centrally positioned
and easily accessible, you will always attract customers. We have been able to critically examine the
industry; we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the field and
some assumptions that are peculiar to startups in Kampala-Uganda.

PROPOSED CASH FLOW PROJECTION F0R 5 YEARS

1st Yr (2023) 2nd Yr (2024) 3rd Yr(2025) 4th Yr(2026) 5th
Yr(2027)
Income

Balance brought forward

- 81,900,000 157,700,000 267,450,000
Bank
-
Cash at Hand
-
Capital
356,400,000 -
Debtors
- 4,500,000 8,750,000
Donations / Contributions
-
Sales
154,000,000 650,000,000 970,000,000

Total Income
510,400,000 736,400,000 1,136,450,000

Expenditure

Administration Costs
Salaries/ wages
57,600,000 115,200,000 165,000,000
Travel allowances(8pple) for 15
days 36,000,000 52,000,000 72,000,000

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 Rent
24,000,000 24,000,000 24,000,000
Utilities and Bills
3,000,000 3,500,000 5,000,000
Office running costs
15,000,000 20,000,000 23,000,000
Consultant
12,000,000 24,000,000 28,000,000
Commission (10% on sales)
15,400,000 38,000,000 97,000,000
Furniture, computer, etc
15,000,000 - 5,000,000
Registration/legal expenses
27,000,000 - 12,000,000
Subtotal
205,000,000 276,700,000 431,000,000

Production Costs
Equipment
55,000,000 - 15,000,000
Raw materials
50,000,000 70,000,000 100,000,000
Publicity
(Branding/Packaging/Media) 20,000,000 17,000,000 20,000,000
Transport
90,000,000 - 30,000,000
Fuel/ Maintance
8,500,000 15,000,000 23,000,000
Subtotal
223,500,000 102,000,000 188,000,000

Total Expenditure
428,500,000 378,700,000 619,000,000

Gross Profit
81,900,000 357,700,000 517,450,000

Less loan repayment

200,000,000 250,000,000
B/F
157,700,000 267,450,000

OUR PRICING STRATEGY

When it comes to pricing our products, there are two sides of the coin, we are aware of the pricing
trend in the market which is why we have decided to produce various sizes of cosmetics and beauty
care products. In view of that, the prices will conform to what is obtainable in the industry but will
ensure that with in the first 6-12 months, our products are sold a little bit below the average prices of
various cosmetic brands on market.

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 STARTUP EXPENDITURE (BUDGET)

These are the key areas where we will spend our startup capital;
Items Units Costs Amount
Total fee for registering the 3 products 5,000,000 15,000,000
business in Uganda
Legal expenses for 12,000,000 12,000,000
obtaining licenses and
permits and accounting
services; software
machines and other
software
Marketing promotions 20,000,000 20,000,000
expenses for grand
opening like t-shirts,
printing flyers, drives,
social media, TVs radios
Cost for hiring business 2,000,000 X 6 months 12,000,000
consultant (chemist)
Payment of rent for 12 2,000,000 24,000,000
months
Startup expenses including 3,000,000 3,000,000
phone, data and utility
deposits
Operation costs for the first 15,000,000 90,000,000
6 months; salaries of
employees, payment of
bills etc.
Cost of starting up 50,000,000 50,000,000
inventory; raw materials,
and packaging materials
etc.
Cost of machines 4 in row 55,000,000 55,000,000
Cost for store equipment; 5,000,000 5,000,000
cash register, security,
ventilation, signage for 6
months
Cost of purchase of 3 30,000,000 90,000,000
distribution vans
Purchase of furniture and 15,000,000 15,000,000
gadgets; computers,
printers, tables and chairs
Launching a website and 5,000,000 5,000,000
social media platforms
Miscellaneous 5,000,000 5,000,000
GRAND TOTAL 401,000,000

Estimate of 401,000,000/= (Four hundred one million Uganda Shillings) to successfully setup our
cosmetics and beauty care products production plant in Uganda.

CHECKLIST/ MILESTONE

➢ Business name availability check; completed

➢ Business Registration; completed
➢ Opening of corporate Bank accounts; completed
➢ Securing points of sales (pos) machines; completed
➢ Opening online payments platforms; in progress
➢ Application and obtaining tax payers ID; completed

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 ➢ Application for business license and permit; in progress
➢ Purchase of insurance for the business; in progress
➢ Conducting feasibility studies; completed
➢ Leasing of facility and construction of standard cosmetic and beauty care plant; in progress
➢ Generating capital from association members and friends (stakeholders); in progress
➢ Application for loan from the bank; in progress
➢ Writing of business plan; completed
➢ Drafting of employee’s Handbook; completed
➢ Drafting of contract documents and other relevant legal documents; in progress
➢ Design of the company’s logo; completed
➢ Graphic Designs and printing of packaging and promotional materials; in progress
➢ Purchase of the needed furniture, racks shelves, computers, electronic appliances, office
appliances, and cctv; in progress
➢ Creating official website for the company; completed
➢ Creating Awareness for the business both online and around the community; in progress
➢ Healthy and safety and Fire safety Arrangements (licenses); in progress
➢ Opening party/ launching party planning; in progress
➢ Establishing business relationship with vendors, wholesale suppliers/ merchants; in progress

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Small Scale Manufacturing Factory Setup and Processing machinery for
cosmetic products, and paints

Screw capping Vacuum Mixer

Bottle labelling Sealing, Shrinkage Machine

Yours faithfully,

………………………………

Kamanyire Celestine

SECRETARY GENERAL -RISESI ASSOCIATION.

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