Hair and Beauty Salon Business Plan sample by fionamati

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									                Sample Hair and Beauty Salon Business Plan

                          Business name: XYZ Hair and Beauty Salon

                          Executive Summary
                          XYZ Hair and Beauty Salon is a hair & beauty salon dedicated to providing
                          customer satisfaction by rendering excellent service and quality products in a
                          relaxing atmosphere at a reasonable price.
Mission: To supply services and products that enhance XYZ' physical appearance and mental
relaxation.

The timing is right for starting this new venture. An ideal location has been found on K-street.
Customer demand will come from both the people residing and working adjacent to XYZ salon's
location. The owner has also used her/his comtacts who are also keen to become customers.
Sarah Yipe the owner of XYZ has extensive experience in the hair and beauty business. (see owner
profile below in the management profile section).
To achieve its mission, XYZ is seeking startup/ expansion debt (loan)/ equity/ grant financing. Debt
will be paid from the cash flow from the business. Collaterol will be assets acquired for the salon as
well as guarantee from owner/ others.
XYZ's competetive advantage lies in its:
   •   Location: which is easily accessible and has high foot traffic.
   •   Ambience: the salon provides an environment conducive to giving relaxing and professional
       service.
   •   Convenience: XYZ will be a one-stop shop for hair and beauty. Opening hours will also cater
       for working women.
   •   Reputation: the owner already has a reputation of providing superior service.


Company Profile
XYZ Hair and Beauty Salon will, upon commencement of operations provide quality hair, nail, and
skin services, using top quality beauty products. What will set XYZ apart from its competition is the
owner's commitment to providing all of these services in a convenient location at a reasonable cost.
The salon will be located on K-street. The location is strategically situated on one of the busiest streets
in Kisumu. It is easy accessible and is buffered by offices and residential areas.

Start-up Summary
The start-up capital for the salon will be used for the interior design, purchase of equipment and
furnishings, and rental/purchase of the location.
Interior improvements will amount to approximately _____, and salon equipment will cost about ____.
Start-up Expenses ($):

Rent deposit _______________________________________________________
Assets (equipment, furniture and fixtures) __________________________________
Cash requirements __________________________________________________
Planned Investment
Owner $ __________________
Investor $. ________________
Total Planned Investment $. ________________

Liabilities and Capital


Liabilities:
Current Borrowing $. ____________________
Long-term Liabilities $. ________________________
Accounts Payable (Outstanding Bills) $. __________
Other Current Liabilities (interest-free) $. _________
Total Liabilities $. ________________

Capital

Planned Investment: Owner $. ____ Investor $. ______
Additional Investment Requirement $. __________
Total Planned Investment $. ______________
Loss at Start-up (Start-up Expenses) ($. ___)
Total Capital $. __________________
Total Capital and Liabilities $. ________________
Total Funding $. __________________

Products and Services
XYZ Hair and Beauty Salon will offer a wide range of services that include:
   •   Hair: cuts, relaxers, colouring, shampoo, conditioning, curling, weaving and braiding.
   •   Nails: manicures and pedicures.
   •   Beauty Care: facials and massage.
Strategy and Implementation Summary
XYZ will excel at good customer service, and creating a pleasant environment for customers.



Competitive Advantage
XYZ will set itself apart from other salons that may offer only one or two types of services. The salon
will be a one-stop-shop for customers who frequently become frustrated that they cant do their hair and
beuaty in one location.
XYZ will also compete on price as the other salons have higher overheads. XYZ has negotiated with
the owner of the property to a lower rental.
To make customers more comfortable, refreshments will be served.

Marketing Strategy
The marketing strategy will be mainly word-of-mouth referrals. Small advertisements will be put into
the women's section of the classifieds. Offers and discounts will also be used to attract new clientelle. A
loyalty bonus point programme will also be implemented so as to reward existing customers and ensure
they remain with XYZ.
All these marketing strategies are low cost and thus will ensure that the business budget can be more
focussed on providing quality service.

Sales Forecast
The following table and charts show projected sales. Income is expected to rise steadily over the next
three years, as the reputation of the salon and quality of service becomes apparent to the general public.
Download and edit sample sales forecast worksheet »»

Milestones
Download and edit Milestone Table template »»

Financial Plan

Important Assumptions
The financials below have a number of assumptions:
1. Salaries and benefits will increase at __ % per year.
2. Operating expenditures will increase at ___% per year.
3. Debt Service uses our current schedule for debt service payments
4. The annual funding requirements are from the 5-year plan as prepared during the budget process.
Those items which will not be funded on a pay-as-you-go basis have had the annual debt service
requirements estimated based on current market conditions. There are no new projects expected.
5. VAT is not expected to increase.

Pro Forma Cash Flow
Download and edit the Pro-Forma Cash Flow Statement Template »»

Break-even Analysis
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Projected Profit and Loss
Download and edit the income statement »»

Projected Balance Sheet
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Source: http://www.yipekenya.org

								
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