business plan
62
HAIR BEAUTY SALON ADDRESS OF THE BUSINESS : LECTURER: PREPARED BY : DATE OF SUBMISSION : 28 September 2010
description
business
Transcript of business plan
HAIR BEAUTY SALON
ADDRESS OF THE BUSINESS:
LECTURER:
PREPARED BY:
DATE OF SUBMISSION:
28 September 2010
SECTION 1 :
SECTION 2 :
SECTION 3 :
SECTION 4 :
SECTION 5 :
SECTION 6 :
SECTION 7 :
SECTION 8 :
INTRODUCTION
PURPOSES
BUSINESS BACKGROUND
OWNER’S BACKGROUND
ADMINISTRATION PLAN
MARKETING PLAN
OPERATIONAL PLAN
FINANCIAL PLAN
APPENDICES
1.0 Introduction
1.1 Name of the company
Hair Beauty Salon
No. 48, Jalan Plumbum V 7/V,
Seksyen 7, 40000 Shah Alam,
Selangor Darul Ehsan.
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 Shah Alam was the marketable
place for us to commence the business. It is located at No. 48, Jalan Plumbum V 7/V,
Seksyen 7, 40000 Shah Alam, Selangor Darul Ehsan. 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 will be started on 1 January 2011.
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 UiTM students and we have find out a great demand
from them. Besides that, it can create a healthy competition among the other salon.
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.
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.
3.0 BUSINESS BACKGROUND
Name of Company : Hair Beauty Salon
Company Address :
Telephone/Fax Number : 03-55664323
E-mail : [email protected]
Form of Business : Partnership
Main Activity : Provide hair care services such as blow-drying, cutting,
colouring
and hair treatment
Date of Registration : 18 November 2010
Number of Registration : 516656
Date of Commencement : 1 January 2011
Initial Capital : Partners’ capital - RM 60 000
Name of Bank : Bank Islam Malaysia Bhd. (BIMB)
Bank Account No. : 12142040025522
4.0 PARTNERS BACKGROUND
Name :
Identity card no :
Permanent address :
Correspondence address :
Telephone no :
Date of birth :
Age : :
Skills :
Experiences :
Present occupation :
Previous business experiences :
Capital contribution : RM
5.0 Administration Plan
5.1 Introduction
Hair Beauty Salon is a partnership business form to carry out the business that provides
services for hair care. Hair Beauty Salon will provides 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.
5.2 Vision
Hair Beauty 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 Shah Alam by opening
new branches within 10 years after commencement.
5.3 Mission
To make profit and increase the profit year by year.
To increase the number of customer day by day.
5.4 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.
5.5 Business Address
No. 48,
Jalan Plumbum V 7/V,
Section 7, 40000 Shah Alam,
Selangor Darul Ehsan.
5.6 Organization Chart
General Manager
Marketing ManagerAdministration
Manager Operations Manager
Hairdresser
5.7 List of Administration Personnel
Position No. of Personnel
General manager/Hairdresser 1
Administration manager/Hairdresser 1
Marketing manager/Hair dresser 1
Operations manager/Hair dresser 1
5.8 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
- 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
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
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
5.9 SCHEDULE OF REMUNERATION
POSITION NO.
MONTHLY
SALARY
(RM)
EPF
(12%)
SOCSO
(2% OR
2.5%)
TOTAL
(RM)
GENERAL
MANAGER1 1400 168 35 1603
OPERATIONA
L MANAGER1 1200 144 30 1374
FINANCIAL
MANAGER1 1200 144 30 1374
MARKETING
MANAGER1 1200 144 30 1374
TOTAL 4 5000 600 125 5752
Allowances:
It is additional benefits paid to workers. They are considered incentives to motivates and
encourages workers to perform their work better.
5.10 List of office equipment and supplies
Types Quantity Price/unit (RM) Total (RM)
Styling Chair 3 200 600
Styling Station 3 1876 7504
Utility Tray 3 100 300
Portable Washing 2 300 600
Total 9004
Office Furnitures
Types Quantity Price/unit (RM) Total (RM)
Sofa 1 1000 1000
Table 1 350 350
Total 1350
Other Expenses
Types Quantity Price/unit (RM) Total (RM)
Air-conditioner 2 900 1800
Magazines 10 15 150
Dustbin 2 20 40
Total 1990
5.11 Administration budget
ADMINISTRATIVE BUDGET
Particulars F.AssetsMonthly
Exp. Others Total
Fixed Assets
Office Furniture 1,350
1,350
-
-
-
-
Working Capital
Salaries, EPF, SOCSO 2,977
2,977
Miscellaneous 500
500
-
-
-
-
Pre-Operations & Other Expenditure
Other Expenditure 5,836 5,836
Total 1,350
3,477
5,836
10,663
6.0 Marketing Plan
6.1 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.
6.2 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.
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.
6.3 Service Description
Hair Beauty 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
but it is also safe to use and halal for Muslims. 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 Section 7, Shah Alam which is
near to the Universiti Teknologi Mara (UiTM) and residential area. . We will open the
business 6 days per week. The business will be closed on Friday and Public Holiday.
6.4 Target Market
Hair Beauty Salon has identified the target market based on the market segmentation
which are the students from Universiti Teknologi Mara (UiTM) Shah Alam, 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.
6.5 Market size
Market size is referring to the total potential purchases of the target market. This is included
the purchases of competitor’s product or services within the same market. Normally, it stated
in terms of unit or ringgit. The market size can be calculated by daily, weekly, monthly or
yearly.
Target market in Section 7, Shah Alam
=200 000 people
Market size
Target market of people going to salon
Target market People going to salon Total (people)
Student 80 000 (15%) 12 000
Resident 120 000 (10%) 12 000
Total 24 000
Estimated money spend per year for hair care services per person
= RM 80 x 24 000
= RM 1,920,000
6.6 Market potential
6.6.1 Types of customers
Customers Market size Purchasing power Total (RM)
Students 12 000 RM80 x12 000 960 000
Residents 12 000 RM80 x12 000 960 000
Total 24 000 1,920,000
Teenagers and youngsters who describe student will be dominating our types of customers.
However, not forgotten by us another target group is working person because our business
is the area of industrial zone.
6.7 Competition
Competitor refers to other business that offer similar products, substitute or alternatives
products or services to the same target market. Two businesses may involve in the same
industry or may offer the same products or services but are not considered competitors if
they do not reach out to the same target market.
We had identified a few competitors to our company:
Name of the
companyStrengths Weaknesses
Duration in
market
La Hair Offer body
scrup
Offer
reflexology
Open 4 days
per week
More
expensive
1 year
Glamour and
Beautiful
Located near
the main city
Offer their
own hair
treatment
product
Their shop
are small
Less
convenient
More than 1
years
Shine Hair Offer nail
manicure
Their target
market only
for working
people
Services are
less
convenient
More than 1
years
Market share refers to the portion of the market that the business can control after taking into
consideration market size and the competitor’s position in the same market. Market share is
often quoted in terms of percentage of total market size.
Market share before entry of Hair Beauty Salon:
Name of the company Percentage Total (people)
La Hair 30% 7 200
Glamour and beautiful 50% 12 000
Shine Hair 20% 4 800
Total 100% 24 000
After analysing the competitor’s strength and weaknesses, Hair Beauty Saloon is confident it
can control 14% of the market. This will mean that the existing competitors will lose some of
their market after the entry of Hair Beauty Saloon.
Adjusted market share after the entry of Hair Beauty Salon:
Name of the company Percentage Total (people)
La Hair 24% 5 760
Glamour and Beautiful 46% 11 040
Shine Hair 17% 3 840
Hair Beauty Salon 14% 3 360
Total 100% 24 000
6.6 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.
Month Sales
Units (people) RM
January 237 18 960
February 272 21 760
March 306 24 480
April 305 24 400
May 275 22 000
June 249 19 920
July 279 22 320
August 307 24 560
September 313 25 040
October 298 23 840
November 273 21 840
December 246 19 680
Year 1 total sales 3360 268 800
6.7 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.
6.7.1 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
services due to customer satisfaction. Our services include shampoo treatment, rebonding,
trim and cut and also colour and bleach.
6.7.2 Distribution strategy
The saloon is located at No. 48, Jalan Plumbum V7/V, Seksyen 7, 40000 Shah Alam,
Selangor Darul Ehsan 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.
6.7.3 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.
6.7.3.1 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.
6.7.4 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.
6.8 Marketing budget
MARKETING BUDGET
Particulars F.AssetsMonthly
Exp. Others Total Fixed Assets
Signboard 1,500
1,500
-
-
-
-
-
-
Working Capital
Salary 1,200
1,200
EPF/SOCSO 174
174
-
-
-
-
-
-
Pre-Operations & Other Expenditure
Other Expenditure 7,727 7,727
Total 1,500
1,603
7,727
10,601
7.0 OPERATIONAL PLAN
7.1 Activity chart for hair treatment services
7.2 Layout
7.3 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 15 15 225
2 Conditioner 15 18 270
3 Hairspray 15 16 240
4 Root Lifter Spray Gel 10 20 200
5 Curls Scrunching Mousse 10 20 200
6 Styling Cream 20 18 360
7 Sculpting Gel 10 20 200
8 Hair Dye Cream-various colours
15 25 375
TOTAL 2070
7.3.1 List of material required in the operation process
7.4 Machine and equipment planning
Types Quantity Price/unit (RM) Total (RM)
Hair dryer 3 150 450
Hair Steamer 2 500 1000
Total 1450
7.5 Location plan
We choose to commence our business at section 7, Shah Alam because of several factors.
One of the factors is the distance from market or customers. The distance from customer will UITM SHAH
ALAM
KFC AND PIZZA HUTJAKEL
influence sales revenue. Increase in revenue will contribute in increase in profit. Based on
our research, some of the people that live at section 7 in the flat let are consists of non
resident students from UiTM that are our target market.
Key :
Hair Beauty Salon
7.6 Business and operation hours
Days Period
Monday – Thursday 10 am – 7 pm
Weekends 10 am – 11 pm
Friday Closed
Public Holidays Closed
7.7 Operation Budget
OPERATIONS BUDGET
Particulars F.AssetsMonthly
Exp. Others Total
Fixed Assets
Hair dryer 450 4
50
Hair steamer 1000 1,0
00
Equipment Operation 9004
9,004
-
Working Capital
Raw Materials 2,0
70 2,0
70
Salaries, EPF & SOCSO 1,3
74 1,3
74
Rental
1,000
1,000
Utilities
700 700
-
-
-
-
Pre-Operations & Other Expenditure
Other Expenditure
11,373 11,373
Deposit (rent, utilities, etc.)
1,700
1,700
Business Registration & Licences
70
70
Other Pre-Operations Expenditure -
-
Total 10,
454 5,1
44
13,143 28,741
8.0 Financial Plan
8.1 Projected Expenditure
ADMINISTRATIVE EXPENDITURE
Fixed Assets RM
Land & Building
Office Furniture 1,350
Working Capital
Salary, Epf, SOCSO 2,977
Miscellaneous 500
Other Expenditure
Other Administrative Expenditure 5,836
TOTAL ADMINISTRATIVE EXPENDITURE 10,663
MARKETING EXPENDITURE
Fixed Assets RM
Signboard 1,500
Working Capital
Salary 1,200
EPF/SOCSO 174
Other Expenditure
Other Marketing Expenditure 7,727
TOTAL MARKETING EXPENDITURE 10,601
OPERATIONS EXPENDITURE
Fixed Assets RM
Hair Dryer 450
Hair Steamer 1,000
Equipment 9,004
Working Capital
Raw Materials 2,070
Carriage Inward & Duty
Salaries, EPF & SOCSO 1,374
Rental 1,000
Utilities Bills 700
Other Expenditure
Other Operations Expenditure 11,373
Pre-Operations
Deposit (rent, utilities, etc.) 1,700
Business Registration & Licences 70
TOTAL OPERATIONS EXPENDITURE 28,741
8.2 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 1,614 Month 12 1,614 Total Year 1 21,192 ToTal Year 2 22,888 Total Year 3 24,719
Hair Beauty saloon
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. AssetsLand & Building Office Furniture 1,350 1,350
Signboard 1,500 1,500 Hair Dryer 450 450 Hair Steamer 1,000 1,000 Equipment 9,004 9,004 Working Capital 2 months Administrative 6,954 6,954 Marketing 2,748 2,748 Operations 10,288 10,288 Pre-Operations & Other Expenditure 26,706 26,706 Contingencies TOTAL 60,000 60,000
8.3 Projected Implementation Cost & Source Of Finance
8.4 Office Furniture Depreciation Schedule
Fixed Asset Office FurnitureCost (RM) 1,350 Method Straight Line Economic Life (yrs) 8
Annual Accumulated Year Depreciation Depreciation Book Value
- - 1,3501 169 169 1,1812 169 338 1,0133 169 506 844
4 169 675 6755 169 844 5066 169 1,013 3387 169 1,181 1698 169 1,350 -
Signboard Depreciation Schedule
Fixed Asset SignboardCost (RM) 1,500 Method Straight Line
Economic Life (yrs) 8
Annual Accumulated Year Depreciation Depreciation Book Value - - 1,500 1 188 188 1,313 2 188 375 1,125 3 188 563 938 4 188 750 750 5 188 938 563 6 188 1,125 375 7 188 1,313 188 8 188 1,500 -
Hair Dryer Depreciation Schedule
Fixed Asset Hair DryerCost (RM) 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 (RM) 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 -
8.5 PROFORMA CASHFLOW
STATEMENT
8.6 Proforma income statement
Hair Beauty saloon
PRO-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: Enpenditure
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
8.7 Proforma Balance Sheet
Hair Beauty 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 1,700 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 Accounts Payable
TOTAL EQUITY & LIABILITIES
185,839 336,932 515,762
