new beauty parlor business plan
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AA
BUSINESS PLAN ONBUSINESS PLAN ON
“MENS “MENS HAIR SALON””
STYLZ HAIR SALONTowards partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY:
MANVENDRA SINGH
ROLL NO – 12001114061SUBMITTED TO:
Dr. MOHD. ANEES
(Director/Coordinator)
MBA (F&C) Programme
(Session: 2012-2014)
INSTITUTE OF MANAGEMENT SCIENCES
LUCKNOW UNIVERSITY
MENS HAIR SALOON
TABLE OF CONTENT
1. INTRODUCTION 3
2. PURPOSES 6
3. BUSINESS BACKGROUND 8
4. ADMINISTRATION PLAN 10
5. MARKETING PLAN 21
6. OPERATIONAL PLAN 28
7. FINANCIAL PLAN 33
8. PROFORMA CASH FLOW STATEMENT 38
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MENS HAIR SALOON
INTRODUCTION
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MENS HAIR SALOON
1.0 Introduction
1.1 Name of the company
Stylz Hair Salon
Vivek Khand,
Gomtinagar, Lucknow
1.2 Nature of the business
Our company, Hair Beauty Salon have provide hair care services in order to fulfil the needs
and wants of community especially students.
1.3 Industry profile
Hair Beauty Salon is a partnership company that focuses in providing hair care services at
affordable and reasonable price to our target market.
1.4 Location of the business
Based on the research, we have found a strategic area at Gomti Nagar was the marketable
place for us to commence the business. It is located at Vivek Khand, Gomti Nagar, Lucknow.
Furthermore, customer easy to get parking around this area and the building are situated near
the main road.
1.5 Date of business commencement
Our business started on 2 April 2014.
1.6 Factors in selecting the proposed business
Based on the observation and survey, we have decided to operate the Hair Beauty Salon
because it is a profitable business and easy to manage. Because of our target market are
students, we did a research among the Lucknow students and we have find out a great
demand from them. Besides that, it can create a healthy competition among the other salon.
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1.7 Future prospect of the business
For the future of the business, we have discussed to open up new branches especially nearest
to the high education institution. In addition, the business can create job opportunity to the
professional workers and also helps to develop the economy for our country.
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PURPOSE
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2.0 Purposes of the Business Plan
Among the main purposes for our business preparing a business plan are:
To evaluate the project viability and growth potential
To act as guideline for the management of the proposed business
To allocate business resources effectively
A detailed description of our new business, including the company's product and
services, marketing plan, financial statements and projections and management
principles.
Its list a company's expected course of action for a specified period usually includes a
detailed listing and analysis of risks and uncertainties.
For our business, it should examine the proposed products and services, the market,
the industry, the management policies, the marketing policies, production needs and
financial needs.
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MENS HAIR SALOON
BUSINESS BACKGROUND
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3.0 BUSINESS BACKGROUND
Name of Company : Stylz Hair Beauty Salon
Company Address : Vivek Khand, Gomti Nagar Lucknow
Telephone/Fax Number : 0522-55664323
E-mail :stylz hairsalon@hotmail.com
Form of Business : Sole prop writer
Main Activity : Provide hair care services such as blow-drying, cutting,
colouring and hair treatment
Date of Registration : 2 November2013
Number of Registration : 516656
Date of Commencement : 2 April 2014
Initial Capital : Rs. 4,50,000/- (Approx)
Name of Bank : Bank of India
Bank Account No. : 083710001119796
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ADMINISTRATION PLAN
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4.0 Administration Plan
4.1 Introduction
Stylz Hair Salon is a partnership business form to carry out the business that provides
services for hair care. Stylz Hair Salon will provide the best hair care services for the target
market. Administration is the management of public or business affair. Administration is one
of the important departments or parts of a business in order to control and administer all the
related work in the company. This department is controlled the partners which has
experiences and knowledge about this field. Besides that, there is also commitment from the
others to ensure the objective can be achieved by the company.
4.2 Vision
Stylz Hair Salon is set up to provide good quality hair care and treatment services at a
reasonable price for customers.
This company also wants to expand the business outside of Lucknow by opening new
branches within 10 years after commencement.
4.3 Mission
To make profit and increase the profit year by year.
To increase the number of customer day by day.
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4.4 Objective
We want to be known and famous among the target market.
To give full satisfaction to customer with excellent services.
To give an adequate return on investment to partners.
4.5 Business Address
Vivek Khand
Gomti Nagar
Lucknow
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General Manager
Marketing ManagerAdministration
Manager Operations Manager
Hairdresser
MENS HAIR SALOON
4.6 Organization Chart
4.7 List of Administration Personnel
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Position No. of Personnel
General manager/Hairdresser 1
Administration manager/Hairdresser 1
Marketing manager/Hair dresser 1
Operations manager/Hair dresser 1
4.8 Schedule of Tasks and Responsibilities
Position Task and Responsibilities
General manager - Oversees all areas of the facility on day
to day operations
- Schedules all staff
- Make sure all staff is keeping their area
operating as required
- Try to solve all concerns by members
and staff
- Promote health and wellness, educate
members and recruit new members
- Other duties as assigned
Administration manager - Carrying out the administrative duties,
using system and relevant processes to
the organization
- Design and implement staff
communication programs
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- Manage and order supplies within the
budget guidelines
- Prepare and review operational reports
and schedules to ensure the accuracy
and efficiency
- Plan, administer and control budgets for
contracts, equipment
- Monitor the facility to ensure that it
remains safe, secure, and well-
maintained
- Oversee the maintenance and repair of
machinery, equipment and mechanical
systems
Marketing manager - Responsible for the design of marketing
strategies for the firm
- Pinpoint potential markets that the firm
can target
- Come up with effective pricing
strategies that will lead to more
profitability for the company and help
in the consolidation of market share
- Marketing managers track trends in the
market and come up with products and
services that will satisfy new demands
- To advertise and promote our services
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and make them famous in the marketing
by using different techniques
Operational manager - Direct and coordinate activities of
businesses or departments concerned
with the production, pricing and sales
- Review financial statements, sales and
activity reports, and other performance
data to measure productivity and goal
achievement and to determine areas
needing cost reduction and program
improvement
- Manage staff, preparing work schedules
and assigning specific duties
- Determine staffing requirements, and
interview, hire and train new
employees, or oversee those personnel
processes
- Plan and direct activities such as sales
promotions, coordinating with other
department heads as required.
Hairdresser- Hairdressers cut, style and colour hair
- Provide permanent wave, straightening
and bleaching treatments
- Advise clients on problem hair
conditions, proper hair care and
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MENS HAIR SALOON
maintenance.
- Provide hair extension, wig and
restorative services
- Responsible for keeping their work area
clean and their equipment sterile,
meeting state health and safety
standards
4.9 SCHEDULE OF REMUNERATION
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Allowances:
It is additional benefits paid to workers. They are considered incentives to motivate and
encourage workers to perform their work better.
4.10 List of office equipment and supplies
Page 18
POSITION NO.
MONTHLY
SALARY
(Rs)
GENERAL
MANAGER1 14000
OPERATIONA
L MANAGER1 12000
FINANCIAL
MANAGER1 12000
MARKETING
MANAGER1 12000
TOTAL 4 50000
MENS HAIR SALOON
Types Quantity Price/unit (Rs) Total (Rs)
Styling Chair 3 5000 15000
Styling Station 3 21520 64560
Utility Tray 3 2000 6000
Portable Washing 2 5000 10000
Total 90040
Office FurnitureTypes Quantity Price/unit (Rs) Total (Rs)
Sofa 1 10000 10000
Table 1 3500 3500
Total 13500
Other ExpensesTypes Quantity Price/unit (Rs) Total (Rs)
Air-conditioner 2 90000 180000
Magazines 10 1500 15000
Dustbin 2 2000 4000
Total 19900
4.11 Administration budget
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ADMINISTRATIVE BUDGET
Particulars F.AssetsMonthly
Exp. Others Total
Fixed Assets
Office Furniture 1,3500
13,500
-
-
-
-
Working Capital
Salaries 50000
50000
Miscellaneous 5000
5000
-
-
-
-
Pre-Operations & Other Expenditure
Other Expenditure 5,8360 58,360
Total 13500
55000
58,360
1,26,860
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MARKETING PLAN
5.0 Marketing Plan
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5.1 Introduction
Marketing is a process that is vital in a company to create values for customers and build
relationships in order to attract customers to go for the services provided. It is also the
process of planning, executing the concept, pricing, promotion and distribution of ideas,
products or services to create exchange that can satisfy individuals and organizational
objectives. It is a very important element to manage a company. As a started of a new
business, the market condition and customers’ demands have been analysed. An analysis
from the marketing point of view is very important in order to make the business can reach
the sales target and profit as well.
The status of marketing encompasses the entire business. The business identifies the needs
and wants of the market for marketing plan. Marketing plan involves the activities that are
carries out systematically to encourage and increase the sales of products or services as long
as the activities are in line with ethical and religious practices. Therefore, Hair Beauty Salon
has developed some plans and strategies in order to introduce and inform about the services
provided to our target market.
5.2 Marketing Objective
The marketing concept rests on the philosophy that all activity must satisfy the needs and
wants of customer and to achieve the targeted profit. Based on this concept, the objective of
company can be satisfied. The marketing objective that needs to be achieved are stated as
follows:
Quality of services
We are aiming to provide quality services through well trained workers and as
well as the product that we used for hair care and treatment.
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Customer satisfaction
We are trying to identify the customer’s needs and wants based on the analysis
made. It can be successfully fulfilled by giving full commitment when doing our
job.
To encourage and improve our services
This can be achieved by preparing the effective promotion and as well as the good
business environment.
To ensure our salon is well known
All information needed regarding to our salon will be spreader through
promotions and advertisement.
To maximize profit
As all the objectives stated above are obtained, our targeted profit can be reached
at its maximum point.
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5.3 Service Description
Stylz Hair Salon is a service type of business which provides hair care and treatment to
customer. We are providing hair care services that are beneficial to customer. This is due to
our good quality services at the affordable price.
We are using hair care product that is formulated by using the natural ingredients such as
traditional herbs and plants extracts these not only the uniqueness of our services. Therefore,
we can easily attract the potential customer use our services.
Besides that, after we did some research, we have identified a strategic location to open the
business. We have decided to open the business at Vivek Khand, Gomti Nagar, Lucknow
which is prime residential area. . We will open the business 6 days per week. The business
will be closed on Friday and Public Holiday.
5.4 Target Market
Stylz Hair Salon has identified the target market based on the market segmentation which are
residents from the near residential area include the other potential buyer that is 7 kilometres
diameter from our business premise. We have chosen these target market because nowadays,
people are more sensitive towards the quality of services and the price level due to the
economics problems.
5.5 Forecasting Sales
The sales forecast is done on a monthly basis for the first year of business and can be used for
extended to cover sales for the second and third year. This section will offer a financial
overview of Hair Beauty Salon included the break-even analysis and sales forecast.
Sales forecasts
The first month will be used to set up the equipments that need in the saloon and hire and
train the employees properly. The instalment of the equipments will be officially done in the
second month.
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Month Sales
Units (people) Rs
January 237 18 9600
February 272 21 7600
March 306 24 4800
April 305 24 4000
May 275 22 0000
June 249 19 9200
July 279 22 3200
August 307 24 5600
September 313 25 0400
October 298 23 8400
November 273 21 8400
December 246 19 6800
Year 1 total sales 3360 268 8000
5.6 MARKETING STRATEGY
Developing marketing strategy is to enable business to plan in order to achieve stated
marketing objectives. The key idea of our business is to deliver customer satisfaction yet
provide business with a competitive advantage. Marketing strategy includes product, pricing,
place or distribution and promotion strategy.
5.7.1 Product strategy (service)
Our product strategy is referring to customer service. All of salon’s employees have been
trained in exceptional customer service. We are offering the best quality and up to date
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services due to customer satisfaction. Our services include shampoo treatment, rebonding,
trim and cut and also colour and bleach.
5.7.2 Distribution strategy
The saloon is located at Vivek Khand, Gomtinagar where it is the strategic place because it is
near the main road and located at the industrial area. The type of distribution channel that we
used is called direct marketing channel consists of the business selling directly to the
customers.
5.7.3 Pricing strategy
The price of the service is the amount of money charged to the customer for a particular
purchase. We have decided to use competition based pricing strategy.
5.7.3.1 Competition Based Pricing
Going Rate Pricing
We based our service price largely on the competitor’s prices. The assumption is that
customer judges a product’s value on the prices competitor’s charge for their product.
5.7.4 Promotion strategy
Promotion strategy is used to disseminate information about our company’s services with the
purpose of attracting the target market. The promotion tools that we have decided to use is
advertising by banner, pamphlet, and brochures.
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5.8 Marketing budget
MARKETING BUDGET
Particulars F.AssetsMonthly
Exp. Others Total Fixed Assets
Signboard 15,000
15,000
Banners 12000
12,000
Pumplets 17,400
1,740
-
-
-
-
-
-
Pre-Operations & Other Expenditure
Other Expenditure 77,270 77,270
Total 44,400
77270
1,06,010
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OPERATION PLAN
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6.0 OPERATIONAL PLAN
6.1 Activity chart for hair treatment services
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6.2 Layout
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6.3 Material planning
Material planning is important to determine the type and amount of materials need for
services. Below is the list of materials required from the producer that will be used in our hair
care service?
No. Name of Inventory Quantity required per month (unit)
Price per unit (RM)
Total Amount (RM)
1 Shampoo 10 250 2500
2 Conditioner 10 200 20003 Hairspray 10 180 1800
4 Root Lifter Spray Gel 5 250 1250
5 Curls Scrunching Mousse 15 220 3300
6 Styling Cream 20 180 3600
7 Sculpting Gel 10 200 2000
8 Hair Dye Cream-various colours
15 250 3750
9 Straightner 1 500 500
TOTAL 20,700
6.3.1 List of material required in the operation process
6.4 Machine and equipment planning
Types Quantity Price/unit (RM) Total (RM)
Hair dryer 3 1500 4500
Hair Steamer 2 5000 10000
Total 14500
6.5 Business and operation hours
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Days Period
Monday – Wednesday 10 am – 8 pm
Friday - Sunday 10 am – 9 pm
Thursday Closed
Festivals (Holi & Diwali only) Closed
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FINANCIAL PLAN
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7.0 Financial Plan
7.1 Projected Expenditure
ADMINISTRATIVE EXPENDITUREFixed Assets RsLand & Building Office Furniture 13,500
Working Capital
Salary 50,000 Miscellaneous 5000
Other Expenditure Other Administrative Expenditure 58,360
TOTAL ADMINISTRATIVE EXPENDITURE 1,26,860
MARKETING EXPENDITURE
Fixed Assets Rs
Signboard 15,000
Banners 12,000
Pumplets
1740
Other Expenditure Other Marketing Expenditure 7727 0
TOTAL MARKETING EXPENDITURE 1,06,010
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7.2 Projected Sales And Purchases
SALES PROJECTIONMonth 1 18,960 Month 2 21,760 Month 3 24,480 Month 4 24,400 Month 5 22,000 Month 6 19,920 Month 7 22,320 Month 8 24,560 Month 9 25,040 Month 10 23,840 Month 11 21,840 Month 12 19,680 Total Year 1 268,800 ToTal Year 2 295,680 Total Year 3 325,248
PURCHASE PROJECTIONMonth 1 2,070 Month 2 1,614 Month 3 1,614 Month 4 2,070 Month 5 1,614 Month 6 1,614 Month 7 2,070 Month 8 1,614 Month 9 1,614 Month 10 2,070 Month 11 1,614Month 12 1,614 Total Year 1 21,192 ToTal Year 2 22,888 Total Year 3 24,719
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7.4 Office Furniture Depreciation Schedule
Fixed Asset Office FurnitureCost (Rs) 13500 Method Straight Line Economic Life (yrs) 8
Annual Accumulated Year Depreciation Depreciation Book Value
- - 13501 169 169 11812 169 338 10133 169 506 8444 169 675 6755 169 844 5066 169 1,013 3387 169 1,181 1698 169 1,350 -
Signboard Depreciation Schedule
Fixed Asset SignboardCost (RM) 15000 Method Straight Line Economic Life (yrs) 8 Annual Accumulated Year Depreciation Depreciation Book Value - - 1,500 01 188 0 188 0 1,313 02 188 0 375 0 1,125 03 188 0 563 0 938 04 188 0 750 0 750 05 188 0 938 0 563 06 188 0 1,125 0 375 07 188 0 1,313 0 188 08 188 0 15,00 0 -
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Hair Dryer Depreciation Schedule
Fixed Asset Hair DryerCost (Rs) 450 Method Straight Line Economic Life (yrs) 8 Annual Accumulated Year Depreciation Depreciation Book Value - - 450 1 56 56 394 2 56 113 338 3 56 169 281 4 56 225 225 5 56 281 169 6 56 338 113 7 56 394 56 8 56 450 -
Hair Steamer Depreciation Schedule
Fixed Asset Hair SteamerCost (Rs) 1,000 Method Straight Line Economic Life (yrs) 8
Annual AccumulatedYear Depreciation Depreciation Book Value
- - 1,0001 125 125 8752 125 250 7503 125 375 6254 125 500 5005 125 625 3756 125 750 2507 125 875 1258 125 1,000 -
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PROFORMA CASHFLOWSTATEMENT
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8.1 Performa income statement
Stylz Hair SaloonPRO-FORMA INCOME STATEMENT
Year 1 Year 2 Year 3 Sales 268,800 295,680 325,248 Less: Cost of Sales Opening stock Purchases 21,192 22,888 24,719 Less: Ending Stock Carriage Inward & Duty Gross Profit Less: Expenditure
Administrative Expenditure 41,724 41,724 41,724
Marketing Expenditure 16,488 16,488 16,488 Other Expenditure 24,936 24,936 24,936
Business Registration & Licences 70
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Interest on Hire-Purchase Interest on Loan
Depreciation of Fixed Assets 1,663 1,663 1,663
Operations Expenditure 36,888 36,888 36,888 Total Expenditure 142,961 144,587 146,418 Net Profit Before Tax 125,839 151,093 178,830 Tax 0 0 0 Net Profit After Tax 125,839 151,093 178,830 Accumulated Net Profit 125,839 276,932 455,762
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8.2 Performa Balance Sheet
Stylz Hair SaloonPRO-FORMA BALANCE SHEET
Year 1 Year 2 Year 3 ASSETS
Non-Current Assets (Book Value)
Land & Building Office Furniture 1,181 1,013 844 Signboard 1,313 1,125 938 Hair Dryer 394 338 281 Hair Steamer 875 750 625 Equipment 7,879 6,753 5,628 Other Assets Deposit 1700 1,700 1,700 13,341 11,678 10,015 Current Assets Stock of Raw Materials 0 0 0 Stock of Finished Goods 0 0 0 Accounts Receivable Cash Balance 172,498 325,254 505,747 172,498 325,254 505,747 TOTAL ASSETS 185,839 336,932 515,762 Owners' Equity Capital 60,000 60,000 60,000 Accumulated Profit 125,839 276,932 455,762 185,839 336,932 515,762 Long-Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities
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Accounts Payable
TOTAL EQUITY & LIABILITIES 185,839 336,932 515,762
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