1.

Introductory Page:

SK Beauty Parlor
Jhawtala, Kandirpar
Comilla-3600
(873)969-0020
www.skbeauty.com
Owner: Kakan Das
Description of Business:
The business will provide quality full service to women for their beauty on the
basis of small sized business. To supply services and products that enhance our
clients physical appearance and mental relaxation. Contracts will be for one year
and will be for one year and will specify the specific services and scheduling for
completion of services.

Financing:
Initial financing required is a tk. 500000 loan to be paid off over 5 years and
500,000 hand cash. This debt will cover renting room space, tables and
equipment, decorations, accessories& service cost.

Statement of confidentiality of report:

This report is confidential and is the property myself. If anything happen without
prior notice or acknowledgement of owner then the person will be liable only for
it. The persons will have to pay money for his error.

2. Executive summary
Beauty is one of the prime concerns for the modern women and they are very
much sensitive and caring about it. Almost every woman who has little
affordability goes to nearby beauty parlors for their beautification. Among them
who are affluent, they go to some renowned beauty shops, which are situated in
different region of Comilla city. Some of the beauty conscious women travel a
long way to go to their desired and proffered beauty shops. In case of beauty
conscious women of Kandirpar, Jhawtala and Race-cource they are one of them.
Parlor industry in our country has high intensity of rivalry, customers also have
high bargaining power though threat of substitutes & barraging power of
suppliers are low; but the threat of new entrants are moderate. To capture the
opportunity as beauty parlor business is in the growing stage, we will rent a 300
square feet shop in a commercial building just beside the Moon Hospital
Area.In our salon we will have TV, WiFi, Virtual Hair Style Display and also
with refreshment services. So while at our salon our customers will enjoy every
second of it. Our salon interior will also be innovative which will provide a
pleasing experience. Another reason to provide these things is to make
customers feel that they are not waiting. We will focus on several things in case
of conducting the business like hygiene, quality and perfection. We will hire two
specialists who will revamp our parlor to a very high level. We will also provide
some other value added services as well. We will also focus on hygiene very
strictly. For a salon hygiene is a very important factor. To clean our salons hair
cutting and other tools we will use sterilize machine. So our salon name
indicates the exceptional services and the tag line reflects our superior quality.
We will have six types of employees and among them there will be 1 manager, 1
receptionist and cashier, 8 Operating Employees, 2 specialists, 1 security guard
and 2 cleaners. Among the specialists, one will be a Skin Specialists and one
will be a hair specialists.
SK Beauty parlour is a full-service beauty salon dedicated to consistently
providing high customer satisfaction by rendering excellent service, quality
products, and furnishing an enjoyable atmosphere at an acceptable price/value
relationship. We will also maintain a friendly, fair, and creative work
environment, which respects diversity, ideas, and hard work. For years, beauty
is nourished and glowed by the woman portion. A woman feels esteem,
confidence, pride and relief by her beauty. Make-over parlors are increasing
day-by-day in the city. Still there are underserved part in the city. Women are
not only aware of their make-up or outlook but also getting sincere for making
her inner glow prominent. Not only a haircut or bridal make-up, beauty parlor
became her beauty manager to the day-to-day life. Now women are more
conscious about their looks and skincare. Female portion, especially the

younger generation can be seen mulling over the choices of facials they have,
the options that they have with various types of haircuts. Their choices of
beauty services are varying on their profession or their peer environment.
Thus, beauty care along with spa service became a mandatory requirement for
the fashionable and smart female of today.
Beauty parlors in Bangladesh are a new pampering and entertaining concept
that cater to haircuts -from the conventional to ultra-funky, massages,
manicures and all other grooming treatments. Why simply look good when
one can feel good inside as well? These hair and facial treatments also help the
consumers to take better care of their hair and skin to combat the effects of the
pollution and dust of comilla. Whatever the reason, women now care more
about their personal hygiene and looks and thus parlors have come up with
treatments to help them.
Parlors such as La Belle, Persona, FarzanaShakil, Womens world, Living Doll
etc. have all mushroomed over the last decade and they all offer hair and facial
needs. Every now and then different parlors are sprouting up and popular
magazines and newspapers are advertising the necessity for women to go there
and look good. Everything is about the company image.
Many are also resorting to a potentially harmful process of beautification
bleaching to lighten the skin tone. However, according to the experts, this is
not as harmful as it used to be. The main ingredients used are herbal and
though there are some bleaching contents, the harm done to the skin is
minimal, or so they claim. It is a common trend in teens to keep changing their
hair color. Getting a few blond streaks or going for a total color change has
become a norm for many youngsters who are heavily influenced by the fashion
and styles they see on cable TV or in magazines or influenced from their
fashion idol.
Our Mission: To supply services and products that enhance our clients physical
appearance and mental relaxation.

3. Industry analysis:
Industry analysis means reviews industry trends and competitive
strategies.Industry analysis focuses on specific industry trends. Some examples
of this factor are:
Industry demand:
Demand as it relates to the industry is often available from published sources.
Knowledge of whether the market is growing or declining, the number of new
competitors and possible changes in consumer needs are all important issues in
trying to ascertain the potential business that might be achieved by the new
venture.
Competition:
Each and every industry has competitors in market. Most entrepreneurs are face
potential threats from large industry. To keep peace with or compete with the
other industries entrepreneurs have to find out the strength and weaknessso that
an effective marketing system can be implemented. Most competitors can be
easily identified from experience, trade journal articles, website, advertising.
Main competitors are:
Red Roof
4511 W 119th St
Leawood, KS 66209
http://www.redroof.net
This competitor has been operating in the greater MSA since 2005
opening its first caf in Sasongasa in 2010. The 3,300 square foot caf
offers an assortment of pastries, bagels and cookies. Beverages include
Harney and Sons teas, signature blends, espresso and specialty drinks.
The caf has 24 employees and generated $11 million in revenues in
2011. The subjects advantage is its smaller, cozier environment.
Green Castle
5336 W 151st St
Overland Park, KS 66224-8701

http://www.takefivecoffeebar.com/Welcome_to_Take_Five_Coffee_Bar
This competitor operates from a 3,300 square foot space. The caf has
WI-FI. In addition to serving coffees and smoothies, the caf offers more
food offerings with a full service kitchen offering light breakfasts, and
sandwiches and wraps. The caf has small playground for little children.
The Caf also has a full liquor license. The broad offerings of amenities
do not make this a true comp for the subject.
Spicey

5606 Johnson Dr
Mission, KS 66202-3323
http://www.morninggloryespresso.com/
This competitor is similar in size to the subject operating from 900 square
feet in a retail shopping center. The Morning Glory Espresso has been
operational since 2005 and has 8 employees and reported revenues of tk.
300,000 in 2011. The coffee shop is open 6 days a week. The shop has a
full kitchen and in addition to pastries provides traditional breakfast
offerings. The store is for sale.

Market segmentation:
We have observed and analyzed the market and based on the nature of the
market we segmented the market in the following sectors:
Geographic Segmentation:
Comilla
Chittagong
Sylhet
Dhaka
Rajshahi
Demographics:
Individuals Female person
Family members
Sportsman
Wedding ceremony
Psycho graphics:
Higher class
Higher mid class
Middle class
Behavioral:
Skin conscious
Health conscious
Sophisticated who take the new product from the market

04. Description of venture:

Product:SK Beauty Parlor will be providing both services and products to
better meet our customers needs.
Our parlor will have more than 10 sitting place for beauty treatment where
every seat will be comfortable and spacious. Each of the seats will face with
large mirror, beauty desk made of delicate granite.
We will have a spacious waiting room for 20 people where the customers
will be seated on comfortable divans and also they will be provided hair
fashion magazines and our beauty catalogues.
We will have LCD TV- Customers will be provided with a giant LCD screen
TV, where they can pass their waiting time easily. Moreover, the reason behind
providing this facility is we want to make our customers feel that they are not
waiting
We will have Wi-Fi facility- our customers will be provided with Wi-Fi facility
where they can check their e-mail and browse any website while waiting or
while they are doing their beauty sessions. This service will help a lot to
position our business as we have work-holder and university students as our
major customers.
Our Parlor will have refreshment services in our salon there will be small
food corner of well-known fast food provider Coopers, where our customer
will have some sandwiches, pastries, patties, juice and coffee. So that our
customers will feel treated till they entered into our store to till they are
leaving our salon for the next visit.
Services: SK Beauty Parlor is considered an upscale, full-service beauty
parlor. We offer a wide range of services that include:

Hair:cuts; relaxers; perms; colors; shampoo; conditioning; curling; weaving;

reconstructing; and waving.
Nails: Manicures; pedicures; polish; sculptured nails.
Skin Care: European facials; body waxing; massages.
Size of business:
The SK Beauty parlour is middle in size. If the number of customer is
increase then we buy a new building or ground for increasing the space. If the
cost of per sq. foot is more expensive then I buy ground. This site is zoned for
commercial used. There are several multinational companies and insurances
head office, three hotels as well. There are huge facilities for parking and this is
adequate for parking about 128 cars. As this area is commercial area the
economic and demographic condition is very high comparing with other areas,
sewage, and electricity too.

Office equipment and personal:

As it is abeauty parlor a huge number of materials are needed to
continue the business. A cash counter for this middle size of table,
three chairs, a desktop(for keeping transaction), 8-10working chairs,
mirrors,scissors, dresses, fans,led lights anddifferent types of
materials for cutting hair, 5 small tables and a VIP room for guest or
occasion/party. Whole space or room will covered by air condition
and artificial painting which bear different situation, and different
color lightening. 1 LED TV will attach. All of this equipment will
purchase.

Background of entrepreneur:
Basically, I have huge knowledge about beauty parlor and I
managed several parlor before. As I have knowledge and practice
about parlor I specially think that I have enough opportunity to
become a successful entrepreneur. My practical experience given
me a huge information about customers and their attitude what they
want, how much they want, what make them happy, what is their
expectation. Thisinformation will help me to continue my business
without any risk.

05. Production plan:

Manufacturing process:
Manufacturing process is an essential step of production plan. If new
venture is taking which rules should be maintain is described in
contract. As I am the only owner of thisparlor I will liablefor all risk.
New venture is only taken when more space is needed, creative idea
about the business and renovation.

Physical plant:
Almost 10 women are needed to run the business in every day. 8
women for servicing, 1 is in the reception and 1 in the Cash counter.
All of these members are managed by me.

Machinery and equipment:

As it is medium in size and especially related with customer
service.So various types of machinery and equipment are necessary
to run it. EspeciallyEspecially fans, chairs, scissors, knives, cauldron
etc are needed.

06. Operational plan:

Description of companys operation:
All business manufacturing or non-manufacturing should include an operational plan
as a part of business. This section describes the operation plan from production to the
customers. It mightinclude inventory of manufactured product, inventory control
procedure and customer product service. This is the proper way of introducing the
shop in front of customer and located it. Even so I want to highlight my shop through
this is process.

Technology utilization:
Technology makes the easiest wayto complete anything easily. By the help of
technology we can done any complexity easily.
a. Website

The SK beauty parlor will have a simple website identifying its

menu items of services along with the address, map and hours of
operation.
The website will also have a calendar of any upcoming
events or sponsorships. The site will also have links to their social
media sites such as Face book, Twitter, and Internet.

b. Computer
As it is service providing house I have to set up a desktop in cash
counter so that we can give customer hand cash bill. As a result we
can easily count the amount of VAT. Through this we can easily
handle our website programming.

07. Marketing plan:

Pricing:The brand-name hair products will range in cost from TK 300- 4000.
These costs will not vary from other competitors as there is a standard price that
Parlors may charge for these products. Our mark-up will be approximately 60%
above cost for a retail price range of TK 1900.00-4000. This is standard pricing
in comparison to the competition.
Our services will average TK 4000, with a range of TK 1200 for a hair trim to
TK 15000 for a complete beauty package (hair, massage, facial, manicure, and
pedicure). These prices are lower than our competitors pricing.

Distribution:
This factor provides utility to the consumer, that is, it makes the product
convenient to purchase when it is needed. This variable must also be consistent
with other marketing mix variable. Thus, a high-quality product will not only
carry a high price but should also be distributed in outlets that have a quality
image.

Environment is a great issue in this matter. Price can change due to

environment. So, I need to manage storage.
As a new entrepreneur at first. I have a connection with them before when I was
in a job. As a result I can get best product with minimum rate.
Promotion:
Promotion is necessary for any kind of business. Promotion is essential to create
potential and educative consumer.
There are various way of promotion (advertising, banner, radio, television,
newspaper, print, social media etc). Usually television is too expensive. I want
to highlight the shop to every kind of people by reducing its cost. Thats why I
choose newspaper and social media (Facebook, whatsapp, twitter etc). I also
have a choice to advertise the shop that is magazine. At present most people are
connect with magazine thats why I think it will bring a positive mark.
Product forecast:
As I assign professional chef for my shop I can ensure the consumer that they
will get the best Service from my shop. Most of the design come from abroad
parlors so there is no doubt about product. Its color, shape is going to be pretty
different from others service.
Controls:
I am owner of my shop so all things will control by me. To make the
shop better from others decision will be taken but applied only when
I give them permission.

08. Organizational plan:

Form of ownership:
Now I am the only owner of my shop. If there is necessary to add
another then he has to follow some rules:
1. She has to pay 25% of total money. But he cannot draw this
money before 3 years.
2. She can be terminated whenever I want.
3. When she is being terminated he will get all of his money.
4. If she takes participation in any position he will get a specific
amount each month.
5. If any blunder is done by hershe is liable for it and has to pay for
it.

Management team background:

The SK Beauty Parlorwill be owned 100% by me. Kakan Das a graduate of
Comilla University has an undergraduate degree in business administration.
During high school I worked as a member in a parlor. In addition to being an
avid worker, this job allowed me to learn about the business first-hand. In
college, I worked in a parlor for two years, eventually rising to the position of
assistant manager.

09. Assessment of risk:

Evaluate weakness of business:
Recruiting and retaining quality employees
Tight margins will allow little wiggle room for error
Franchises are the easiest way and often the safest conduit to start a parlor;
the parlor will not have the backing of one of these established entities.
The Russet Cup has a minimal budget and is competing against larger and
more established beauty parlor for market share.

New technologies:
I will apply newest technology for my business. Using new technology will
reduce the making time and we will able to give the as soon as possible. We will
buy new coffee maker machine, fashionable light, moderate the menu etc.
Contingency plan:
Future is always uncertain so if there is any necessity to take an initiate plan
then it will be taken. Contingency plan only be taken when the will face
continuous loss, moving the business, renovation, recruitment. At that time my
decision will consider.

10. Financial plan:

Assumption:

 The sales forecast is conservative and assumes a 5% increase in Year 2,

and a 10% in Year 3.
The analysis accounts for economic seasonality wherein some
months revenues peak (such as holidays) and wane in slower months.
The analysis assumes the owner will take a much smaller salary
compared to his baristas; at any time it is assumed that owners
withdrawal is available at his discretion.
Sales are cash basis nonaccrual accounting
Moderate ramp- up in staff over the 3 years forecast
The average SK Beauty Parlor salary in 2016 is TK 500000.
In general, most Parlor have an 80% gross profit margin
In general most Parlor have a 4% net profit margin

Pro forma income statement:

Pro
forma
income
statement
Income
Total income
Total cost of sales
Gross Margin
Expenses
Total wages and salaries
Business Expenses
Advertising
Insurance
Office expenses
Rent on business
property
Repair
Supplies

Year 1

Year 2

Tk. 855,000
Tk.
0
Tk. 855,000

Tk. 960,000
Tk.
0
Tk. 960,000

Tk. 300000

Tk. 300000

Tk.
Tk.
Tk.
Tk.

8,000
3,600
0
24,900

Tk.
8,600
Tk.
3,600
Tk.
0
Tk. 24,900

Tk.
Tk.

2,200
9,548

Tk.
Tk.

2,600
10,416

Telephone
Travel
Utilities
Depreciation
Net profit

Tk.
3,500
Tk.
0
Tk. 12,000
Tk. 15,770
Tk.
450225(Approx.)

Tk.3,500
Tk.
0
Tk.
12,000
Tk.
15,770
Tk.506678(Approx
.)

Cash flow projection:

The statement of cash flow shows the incoming and outgoing cash of the
business.
Cash flow projection

Year 1

Year 2

Beginning cash balance

Tk. 500,000

Tk.

350000

Income from SERVICE

Tk. 800000

Tk.

660,000

Account Receivable

---------------

----------------

Total inflows

Tk. 800000

Tk.

660,000

Total Cash Outflows

Tk. 550000

Tk.

500000

Operating Cash Balance

Tk.350000(Appro
x.)

Tk.
450000(Approx.)

Cash Inflows

11. Appendix:
Market research data:
Market research is very important. Through market research one can simply
understand the current situation or guess what is going on. I also get some data
about my business and this information is positive.

Price lists from suppliers:

Hair:cuts; relaxers; perms; colors; shampoo; conditioning; curling; weaving;
reconstructing; and waving. (TK 300-2000)
Nails: Manicures; pedicures; polish; sculptured nails. (TK 400-2500)

Skin Care: European facials; body waxing; massages. (TK 500-4000)