FINANCIAL PLANNING STRATEGIES FOR BOOSTING BUSINESS PERFORMANCE IN THE COSMETICS INDUSTRY: A CASE STUDY OF LUMNA COSMETICS FINAL PRO JECT BY: AHMAD INDRA PRASETYA SETIAWAN 19220040 Bachelor of Entrepreneurship Program School of Business and Management Institut Teknologi Bandung 2023 This page is intentionally left blank ii Financial Planning Strategies for Boosting Business Performance in the Cosmetics Industry: A Case Study of Lumna Cosmetics By Ahmad Indra Prasetya Setiawan 19220040 Undergraduate Program, School of Business and Management Institut Teknologi Bandung, 2023 Supervisor: Atika Irawan, S.Mn., M.Sc. Abstract The beauty industry is constantly evolving, and one of the latest trends that has taken the world by storm is Fast Beauty. However, the rapid development of this industry has given rise to a new set of problems, particularly with regards to the environment. Lumna is a business that wants to provide solutions in the form of eco-friendly and healthy cosmetic products. This research adopts a quantitative method utilizing both primary and secondary data sources. The collected data will be used to develop a five-year financial projection, considering internal and external assumptions. To analyze profitability and return on investment, financial feasibility will be examined using measures such as IRR, NPV, and payback period. To enable the seamless execution of the financial strategy, an implementation plan will be developed, defining specific tasks, dates, and responsible parties. This planning tries to define five-year strategic goals. Lumna's researcher creates three calculating scenarios to limit the risk of not meeting the goal sales forecast: worst-case scenarios, usual scenarios, and optimistic scenarios. These scenarios let Lumna predict probable outcomes and make educated judgments based on changing conditions. All three NPV and IRR are acceptable with an NPV of Rp188,176,427; RpRp171.069.479; Rp153,962,531 and IRR in 40.93%; 37.21%; 33.49% After figuring out the value of Lumna, an implementation plan is put in place to be carried out. Lumna is predicted to improve its company performance in the future with the given strategy/solution. The solution is intended to prevent unforeseen financial strategies in each department, thus ensuring Lumna's financial stability and resource efficacy in the future. This study seeks to improve Lumna's company performance through better financial planning, resulting in long-term growth in the beauty industry. This plan will explain the processes, time constraints, as well as responsible parties involved in implementing the planned financial initiatives. Lumna intends to improve its financial performance and achieve long-term growth in the beauty business by carefully implementing this plan. Keywords: fast beauty industry, eco-friendly cosmetics, financial planning This page is intentionally left blank iv Strategi Perencanaan Keuangan Untuk Meningkatkan Kinerja Bisnis Industri Kosmetik: Studi Kasus Lumna Cosmetics By Ahmad Indra Prasetya Setiawan 19220040 Program Sarjana Kewirausahaan, Sekolah Bisnis dan Manajemen Institut Teknologi Bandung, 2023 Dosen Pembimbing: Atika Irawan, S.Mn., M.Sc. Abstraksi Industri kecantikan terus berkembang, dan salah satu tren terbaru yang menggemparkan dunia adalah Fast Beauty. Namun pesatnya perkembangan industri ini telah menimbulkan permasalahan baru, khususnya yang berkaitan dengan lingkungan. Lumna merupakan sebuah bisnis yang ingin memberikan solusi berupa produk kosmetik ramah lingkungan dan menyehatkan. Penelitian ini menggunakan metode kuantitatif dengan menggunakan sumber data primer dan sekunder. Data yang dikumpulkan akan digunakan untuk mengembangkan proyeksi keuangan lima tahun, dengan mempertimbangkan asumsi internal dan eksternal. Untuk menganalisis profitabilitas dan laba atas investasi, kelayakan finansial akan diperiksa dengan menggunakan ukuran seperti IRR, NPV, dan payback period. Untuk memungkinkan pelaksanaan strategi keuangan yang lancar, rencana implementasi akan dikembangkan, yang menjelaskan tugas spesifik, tanggal, dan pihak yang bertanggung jawab. Perencanaan ini mencoba untuk menentukan tujuan strategis lima tahun. Peneliti Lumna membuat tiga skenario penghitungan untuk membatasi risiko tidak terpenuhinya perkiraan sasaran penjualan: skenario terburuk, skenario biasa, dan skenario optimis. Skenario ini memungkinkan Lumna memprediksi kemungkinan hasil dan membuat penilaian berdasarkan perubahan kondisi. Ketiga NPV dan IRR dapat diterima dengan NPV sebesar Rp188.176.427; RpRp171.069.479; Rp153.962.531 dan IRR sebesar 40,93%; 37,21%; 33,49% Setelah mengetahui nilai Lumna, maka dibuatlah rencana implementasi yang akan dilaksanakan. Lumna diprediksi dapat meningkatkan kinerja perusahaannya di masa depan dengan strategi/solusi yang diberikan. Solusi tersebut dimaksudkan untuk mencegah strategi keuangan yang tidak terduga di setiap departemen, sehingga menjamin stabilitas keuangan dan efisiensi sumber daya Lumna di masa depan. Penelitian ini berupaya untuk meningkatkan kinerja perusahaan Lumna melalui perencanaan keuangan yang lebih baik, sehingga menghasilkan pertumbuhan jangka panjang di industri kecantikan. Rencana ini akan menjelaskan proses, batasan waktu, serta pihak-pihak yang bertanggung jawab yang terlibat dalam pelaksanaan inisiatif keuangan yang direncanakan. Lumna bermaksud untuk meningkatkan kinerja keuangannya dan mencapai pertumbuhan jangka panjang dalam bisnis kecantikan dengan menerapkan rencana ini secara hati-hati. Kata Kunci: industri kecantikan cepat, kosmetik ramah lingkungan, perencanaan keuangan. This page is intentionally left blank APPROVAL PAGE FINANCIAL PLANNING STRATEGIES FOR BOOSTING BUSI NESS PERFORMANCE IN THE COSMETICS INDUSTR Y: A CASE STUDY OF LUMNA C OSMETICS By Ahmad Indra Prasetya Setiawan 19220040 A Final Project in Partial Fulfillment of the Requirement for the Degree of Bachelor of Entrepreneurship Bachelor Program of Entrepreneurship School of Business and Management Institut Teknologi Bandung July 1, 2023 Approved By Atika Irawan, S.Mn., M.Sc. NIP. 201807100 FOREWORD I express my appreciation and praise to Allah SWT, who has always guided me in the right direction during my academic career. Alhamdulillah, the research I was working on has been done. I'd also want to thank the following people: 1. My beloved family, my father Lilik Suwarno, my mother, Suwarni Ningsih, and especially my sister Aulia Mahira Firdausa, who always provide support in the form of motivation, prayers, and even material support. Without them, I wouldn't be where I am today, 2. Mrs. Atika Irawan, S.Mn., M.Sc., as the greatest supervisor, who has been tremendously helpful, patient, and eager to devote her time to guiding me from the start to the end of this project. Without Mrs. Atika, this research would not have progressed effectively and efficiently, 3. Rahmadhita Maharani Jacob, as the best mentor for Lumna’s business from the start of business until now. With her love, she guides this business both within and outside the classroom, 4. To Jabeks, I'd want to express my heartfelt gratitude to my second family in Bandung. Ferdian, Ahmad, Akmal, Muti, Esther, Lauren, Hana, Glo, and Decha, your presence brightened me every day, and you were the best friends for sharing dreams and experiences.