Submitted To:
INTRODUCTION
OUR MISSION: To supply services and products that enhances our clients physical appearance and mental relaxation OUR MOTTO: Customer Satisfaction Guaranteed
OPPORTUNITY RATIONALE
The KEYS TO SUCCESS in our business are: Location: Providing an easily accessible location for customers. Environment: Providing an environment conducive to giving a relaxing and professional service. Convenience: Offering clients a wide range of services in one setting, and extended business hours. Reputation: The owner and other beauticians have a reputation for providing superior personal service.
MARKET RESEARCH
Industry Analysis
National Trends
Local Trends
INDUSTRY ANALYSIS
SWOT Analysis
Strengths, Weakness, Opportunities and Threats
NATIONAL TRENDS
The general public has been revitalized with an increased sense of personal responsibility for their health and wellbeing.
LOCAL TRENDS
It is common sense that salon professionals will be successful if they are able to keep more of their existing clients through developing strong client loyalty and attract new clients through standing out from the competition.
COMPETITIVE LANDSCAPE
There are a number of salons like ours but they are mainly very expensive like: Mariums salon Madehas Salon Nickis Athur Shahzad Salon Others
MARKET POSITIONING
Market Share
Marium's Madehas's Athur Shahzad Nicki's Others
As if now we stand among the others but by this yearend we plan to gain as much as 10 percent of the market share.
Market Share
Marium's Madehas's Athur Shahzad Nicki's Others
20 10 6 4 60
MARKETING OBJECTIVES
Increase profits by 4% on next year through increasing sales by 8 % Maintain positive steady growth in each month Retain existing customers Etc.
MARKETING STRATEGIES
Sell the Experience Appeal to target market: Focus on Customer Retention: Encourage Word-of-Mouth Promotion: Encourage Product Sales
MARKETING MIX
Pricing Place
Promotion
ACTION PLAN
Opening on January 1st 2014
Loan will be taken from the lender to pay the rent for the salon building
We expect to service approximately 196 customers a week As the client base increases, Beautiful Arabia would expand its employees, including the owners
4 Cs OF MARKETING PLAN
Collateral
Cash Flows
ORGANIZATIONAL PLAN
LEGAL STRUCTURE
ORGANIZATIONAL CHART
ORGANIZATIONAL CHART
FINANCIAL PLAN
Year - I
Sales/Revenue Cost of Sales 3,669 1,869
Year - II
4,326 2,008
1,800
2,318
Administrative Expenses
Rent
723
960
710
1,056
Operating Profit
Financial Charges L C + Bank Charges
117
115 100 (98) (42) (56) (56)
552
91 110 352 151 200 (56) 144
Year 1
Profit before Financial Charges & Taxation Amortization Depreciation Working Capital Change 117 36 16 168 57
Year 2
552 31 14 597 (7)
1,952
590
Applications:
Fixed Assets Preliminary Expenses 240 Re -Payment of Loan LC payment Tax 159 240 287 100 42 744 263 110 151 524 66
1,207
Year 1
Tangible Fixed Assets Preliminary Expenses Current Assets: Accounts Receivable Cash in Hand / Bank 122 143 204
Year 2
129 173
144
1207
1273
1677
Owners Equity: Capital Accumulated Profit Long Term Loan Current Liabilities: 863 (56) 691
1720
1677
1720
MAJOR RISK
Hazardous products Slips and Trips Fire Hygiene
products by the
Visible losses As during providing services like make up, haircuts etc.
CONCLUSION
PROPOSED CAPACITY
The proposed Beauty Salon will handle 28 customers per day. This is worked out as follows: *Capacity per day= Facial Beds+ Hair Dressing Chairs +Makeup Chairs/ 5 = 142/5 =28
Facial Beds
Number 3
Hair Chairs
4
8
24
8
32 2 16 28
8
16 4 4
Hours utilized by one 3 client Maximum clients 8 entertained Capacity per day*
Total Project Cost Total project cost is 1.726 million rupees approximately. Out of the total project cost, 850,184 rupees would be used for the purchase of fixed asset.
Costs (Rs)
Working Capital
Initial investment in beauty and makeup products Rent payment (6 months in advance) Total Working Capital
480,006 523,731
1,726,418
863,209 863,209
PROMOTION EXPENDITURES
Newspaper The dawn 20,000
The News
20,000
Brochures Billboards
15,000 150,000
Special Hampers
132,503
Total
352,503
Recommended Mode
Sq, ft.
Monthly Rent
2,700.0
29.63
80,001
960,012
EQUIPMENT DETAILS
Following equipment would be required for the proposed beauty clinic. Equipment is chosen keeping in mind the services that would be offered at the clinic. Approximate prices are also given along with the list:
Equipment/Machines Required
Electric facial unit Steamer for hair Steamer for facial Pedicure machine Back wash for washing hair Warmer for hot wax Magnifying glass Computers Telephone Software Total 1 2 2 1 1 1 1 1 3 1