ENT300 - Final Project - Hair Salon

Prepared by :
Muhammad Aizat bin Ishak (2007232678)

Muhamad Syapiq bin Mat Nor (2007232696)
Muhamad Azfar bin Mohd Sharipp (20072)
Nur Fatin binti Abdullah (20072)
Nur Nadiati binti Ismail (20072)

-ACD6A5-

Arte de Pelo Hair Salon
ETR 300 Business Plan


Page 2
Table of content
Contents Page
Executive
summary

1.0 Introduction 4
2.0 Purpose 5
3.0 Company background 6
3.1 Logo 7
4.0 Partners background 8-12
4.1 Partnership agreement 13-16
5.0 Location of business 17
5.1 Layout plan 18
5.2 Advantages 19
6.0 Marketing plan 20
6.1 Service
description
20
6.2 Target Market 21
6.3 Market size 22
6.4 Competition 23-24
6.5 Market share 25-30
6.6 Sales forecast 31-34
6.7 Marketing strategy and budget 35-44
6.8 Marketing budget 45
7.0 Operations plan 46
7.1 Process planning 46
7.2 Operations layout 47
7.3 Production planning 48
7.4 Material planning 49-55
7.5 Machines and equipment planning 56
7.6 Manpower planning 57-58
7.7 Overheads requirement 58
7.8 Location 59
7.9 Business and operations hours 60
7.10 Licence, permits and regulations required 61
7.11 Operations budget 62
7.12 Implementation schedule 63
8.0 Organizational
plan
64
8.1 Organization mission and vision 64
8.2 Organization chart 65
8.3 Manpower planning 66
8.3.1 Schedule of task and responsibilities 66-67
8.3.2 Schedule of remuneration 68-69
8.4 List of office equipment 70-71
8.5 Organizational/administration budget 72

Page 3
9.0 Financial plan 73
9.1 Project implementation cost 74
9.2 Sources of financing 75
9.3 Pro forma cash flow statement 76-77
9.4 Pro forma income statement 78
9.5 Pro forma balance sheet 79
9.6 Financial Analysis 80-85
9.7 Budget 86-88
9.8 Depreciation schedule 89-90
9.9 Loan repayment schedule 91
9.10 Sales and purchases projection. 92-93
10.0 Appendices 94-100


Page 4
Executive Summary
1.0 Introduction
Arte de Pelo is a hair salon located in 15, Jalan Telawi 4, Bangsar, 59100 Kuala
Lumpur that allows the entire family to have their hair needs satisfied in one convenient
location. Arte de Pelo serves men, women, and children and accepts appointments as well as
walk-ins. Arte de Pelo also sells retail hair care products. Arte de Pelo is able to serve the
entire family in one quick, convenient visit.

While there are many "quick salons" like Arte de Pelo, Arte de Pelo will excel due to
its attention to detail regarding customer service. Through unheralded customer attention,
Arte de Pelo will slowly but surely gain market share as it services the entire family, creating
long-term relationships. Lastly Arte de Pelo location will allow it to attract a lot of walk in
traffic.

People across Malaysia have decided to use our services when they want to fulfil their
hair need, for example to have their hair cut or to make over their appearance through
different hair style. Arte de Pelo has foreseen this opportunity to provide the finest and
highest quality of hair cut and styling to all people, despite their age or gender. This has
shown that Arte de Pelo has the calibre to be one of the most successful hair salons in
Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success
provided that it is handled efficiently. The people have always needed to take care of their
hair, as the hair reflects their personality, and to make them feel more confidence and
comfortable. Arte de Pelo sees this as a way to prosper in this market, by taking advantage of
all these peoples need.


Page 5
2.0 Purpose
This business plan is prepared because to convince venture capitalists, investors and
banker in order to raise capital and obtain support for the venture. We need investors to raise
fund for the purpose of company management and upgrading.

This business plan is also being drafted so that Arte de Pelo will get the financing it
needs in order to start its business. The loan is crucial in order to start the business, so the
presentation of this business plan is vital to gain the confident of the bank.

Arte de Pelo has asked from Maybank for a loan up to RM 50,000 so that it can build
itself in this business. The other RM 100,000 will be from the accumulated capital provided
by each shareholder in the company. Each shareholder has agreed to contribute RM 20,000
each.

The financing will be used to purchase a start up assets like salon equipments,
furniture and fittings, store front and artwork, advertising and many more. We can get all this
items from our trusted suppliers, and they have agreed to provide products with the best offer
ever.

We also use this business plan as a guideline to the manager in order to succeed in the
business. Arte de Pelo has all the ingredients to be one of the best in the business. We have
set out our entire target in order to be successful. This business plan will includes company
background, marketing strategy, operation plan, sales forecast and also the most important,
the financing plan of the business.

Arte de Pelo will fully utilize all the assets so that it can maximize the profit. The
profit that the company gets will be used to pay the loan that is given. Arte de Pelo is
completely confident that it will be able to pay the loan back including the interest payment
in the loan given.


Page 6
3.0 Company background

Name of company : Arte de Pelo Enterprise.
Address : 15, Jalan Telawi 4,
Bangsar,
59100 Kuala Lumpur,
Wilayah Persekutuan.
Telephone number : 03-22827667
Fax number : 03-22827678
Email : artedepelo@yahoo.com
Form of Business : Partnership
Main activity : Hair cutting and stylist
Date of Registration : 1 April 2010
Number of Registration : M0457129-D
Date of Commencement : 8 April 2010
Initial Capital : RM 100,000 (own)
RM 50,000 (loan)
Name of Bank : Maybank Bhd


Page 7
3.1 Logo

This logo represents:
Image: beauty is essential to all people.
Black and grey colour: symbolize elegance and stylishness.


Page 8
4.0 Owners or Partners background.

CHIEF EXECUTIVE OFFICER

Name: Muhammad Syapiq bin Mat Nor
Date of birth: 29 march 1987
Place of birth: Hospital Kuala Lumpur
Address: No 23, Lorong D/2, Kampung Pandan,
55100, Kuala Lumpur
Interest: Racing cars and drifting.
Qualification: BACC in year 2005
(Graduated in Uitm Shah Alam),
ACCA in year 2007
(Graduated in Dublin business school)
Position: Chief executive officer
Skills: 1. A visionary and full of energy to drive towards success
2. Ability to manage employees efficiently
Experiences: Has 4 years of working experiences in a corporate company and
worked as a finance department manager until he decided to pursue a
business in this market.
Details of the post: As the Chief executive officer of the company, this job requires the
manager to set up the mission, vision and objective for the long term of
the company. The Chief executive officer also needs to organize,
motivating and to control of his down liner to be always on top of their
job.


Page 9

FINANCIAL MANAGER

Name: Muhammad Aizat b. Ishak
Date of Birth: 8th February 1989
Place of Birth: Hospital Muar, Johor.
Address: 45-15-12, Menara Orkid,Bandar Baru
Sentul,51000 Kuala Lumpur
Interest: Surfing, Thaiboxing, Singing.
Qualification: B.ACC in year 2007
(graduated in UiTM Shah Alam),
ACCA in year 2010
(graduated in Dublin Business School,
Ireland)
Position: Financial manager
Skills: 1. Very good accountability in doing his job.
2. A person with a broad view of management and corporation.
Experiences: Was an accountant for a very well known corporate company. He
worked there as an accountant for 2 years before he decided to be a
business partner in this project.
Details of the post: As financial manager, the main job in this post is to record everything
about finance of the company. This job also needs high experience of
evaluating and decision making about finance. More important, the
prediction of the future economic, with this ability, we can maintain
our company financial better.


Page 10

MARKETING MANAGER

Name: Muhamad Azfar bin Mohd Sharipp
Date of birth: 29 June 1985
Place of birth: Hospital Besar, Klang
Address: No 3, Jalan Jeram,8/22,40000,Shah Alam,
Selangor Darul Ehsan
Interest: Soccer, rock climbing and sky diving
Qualification: Bachelor in Marketing
(University of Carnegie Mellon,
Pittsburgh US),
Certificate III in hairdressing
(UK Hair Academy, United Kingdom)
Position: Marketing Manager
Skills: 1. Able to market products effectively
2. Has a very good communication method
3. Very good in getting point across
Experiences: A very experienced marketer and hair dresser. Before agreeing to this
job, he was an assistant marketing executive at A Cut Above for 3
years. His experiences are very valuable to Arte de Pelo.
Detail of the post: As a Marketing Manager, the main role in this post is to gather
sufficient and reliable information from the public and current events
to ensure that the service we provide meets their expectation. More
importantly, marketing is an effective way to spread the word about the
outstanding service that we provide. For one day, Arte de Pelo will be
a major business in hair styling and salon.


Page 11

PUBLIC RELATION / OPERATIONAL MANAGER

Name: Nur Fatin Binti Abdullah
Date of birth: 8 November 1985
Place of birth: Hospital Besar Kota Bharu Kelantan
Address: Q1-3, Jalan Lengkok Abdullah, Bangsar
59000 Kuala Lumpur
Interest: Shopping, dancing and
mountain climbing
Qualification: Bachelor in Business Admin,
(University of Surrey, United Kingdom)
Certificates III in Hair Dressing
( Brisbane School of Hairdressing,
Australia).
Position: Public Relation Manager and Operational Manager.
Skills: 1. Has the ability and confidence to face people
2. Speaks bilingually
3. Good in controlling products and planning.
Experiences: Before joining this venture, she had worked in Thomas n Guys as
senior hair cutter for 2 years and had worked as sales person at ZARA
Company for 8months.
Detail of the post: As a Public Relation Manager, the main role in this post is to maintain
a good relationship between customers and company, as the customers
will become loyal. And as an Operational Manager, the main role in
this post is to concerned with the production of goods and services and
ensuring that business operations are efficient in terms of using as little
resource as needed, and effective in terms of meeting customer
requirements.


Page 12

HUMAN RESOURCE MANAGER

Name: Nur Nadiati binti Ismail
Date of birth: 20 November 1985
Place of birth: Hospital Uni. Sains Malaysia,Kelantan
Address: 201, Jalan 1, Taman Sekamat,
43000 Kajang, Selangor.
Interest: Play piano, sky diving and sewing.
Qualification: Bachelor in Accountancy
(UiTM Shah Alam),
Bachelors Degree in Human Resource
Management (University of
Southampton, United Kingdom)
Position: Human Resource Manager
Skills: 1. Ability to find the right person for a job
2. Has a great conversing method
Experiences: Before joining this venture, she has worked as a human resource
executive in Celcom Communication for 2 years
Detail of the post: As a Human Resource Manager, the main roles in this post is to
recruiting and interviewing new potential staff as well as orientate new
staff, explaining job description, policy, and procedures of Arte de
Pelo Salon.


Page 13
4.1 PARTNERSHIP AGREEMENT
This agreement will bind the partners with the following aspects:
4.1.1 Types of Business:
The business has been registered under the Register of Business using the
name of Arte de Pelo Enterprise. This business is a company that generally offers
Hair Salon services. The service line of this company is hair cut, hair colouring, hair
rebonding and hair perm.

4.1.2 Capital:
Each partner has contributed the capital as below:
Muhamad Syapiq bin Mat Nor RM 20,000
Muhammad Aizat bin Ishak RM 20,000
Muhamad Azfar bin Mohd Sharipp RM 20,000
Nur Fatin binti Abdullah RM 20,000
Nur Nadiati binti Ismail RM 20,000

RM 100,000


Page 14
4.1.3 Period of Partner Agreement:
From the consent of all partners, we agreed that:
They had to run at least five years (5) and partners are prohibited from
dissolving the business without the consent of other partners resolutions to other
partners.
4.1.4 Distribution of Profits and Loss:
Every partner has belonging this business and the amount of the profit from
this business as well. The partners will distribute profit according to capital
distribution. Any losses will be liable among partner equally according Partnership
Act 1961.
4.1.5 Perquisite:
Any additional pay is to follow current profit and will be present in the end of
annual financial report.
4.1.6 Partnership Property:
Owned by the partnership and partners because it is not separate legal entity
(Partnership Act 1961 S.22)
4.1.7 Death:
The representive of the death partners can appoint to the business under the
Malaysian Law. The close members of the family upon the entire death partner share
can make the transmission of the state.
4.1.8 Bankruptacy or Dissolution of Partnership:
When the partner is found lunatic, permanently unsound mind [Partnership
Act 1961 S.37 (a)]
When a partner permanently incapable of performing his part of the partnerhip
contract [ Partnership Act 1961 S.37 (b)]
When a partner calculated to affect prejudicially the carrying on the business [
Partnership Act 1961 S.37 (c)]

Page 15
When the partner willfully or persistently commits a breach of the partnership
agreement or otherwise [ Partnership Act 1961 S.37 (d)]
When the businness of the partnership can only be carried on at a loss
[Partnership Act 1961 S.37 (d)]
Whenever in any case circumstances have arisen which in the opinion of the
court , render it just and equitable that the partnership be dissolve [Partnership
Act 1961 S.37 (f)]
4.1.9 Retirement:
If any partner who want to retire from the business must have consent from
others partners. They will get back their invets and the notice of retirement must be
given 3 months before the retirement date.
4.1.10 Others:
Each of the partners must act in good faith and respect other partners. Partners
must have willingness and interested to make the business more succesful and giving
full commitment for the business. They also must be honest and straight forward in
order to execute responsible as a partner.


Page 16

___________________
(MUHAMAD SYAPIQ BIN MAT NOR)
CHIEF EXECUTIVE OFFICER

___________________
(MUHAMMAD AIZAT BIN ISHAK)
FINANCIAL MANAGER

____________________
(MUHAMAD AZFAR BIN MOHD SHARIPP)
MARKETING MANAGER

_____________________
(NUR FATIN BINTI ABDULLAH)
OPERATION/PUBLIC RELATION MANAGER

_____________________
(NUR NADIATI BINTI ISMAIL)
HUMAN RESOURCE MANAGER


Page 17
5.0 Location of business.

Arte de Pelo
15, Jalan Telawi 4,
Bangsar,
59100 Kuala Lumpur,

We are
here!!


Page 18
5.1 Layout plan.

40 ft
BUILDING SIZE
40ft length X 60ft width
12ft height

60 ft

Page 19
5.2 Advantages
One of the advantages of setting up our shop in Jalan Telawi, Bangsar is that we have
a constant traffic of customers. People who get into the Megamall, Bangsar Village and
Bangsar Shopping Centre are bound to come to the shop if they see something from our
services that we provide that attracts their eyes. It is also are very close to housing area and
workplace area. We believe this will be one of the best reasons why this site of business will
be one of the best decisions that we have made.
Another reason is that Bangsar are the centre of attraction of people from many ages,
ethnics and foreigners as well. Foreigners are usually like to hang out at Bangsar as Bangsar
is commonly known as Beverly Hills Malaysia. So this is one big advantage that our shop
can be highly known not only for resident in Malaysia but also the foreigners.
There are a-lot of shop lots especially boutiques and restaurant near to our shop. So
this will allow us to attract more customers to visit our shop when they pass by and if the
customers have their friends that wait for them, they can enjoy to window shopping or visits
the boutiques or other shops while waiting for their friend to finish the hair services if they do
not want to sit and relax at the waiting room.
Bangsar is located in the middle of Kuala Lumpur and very near to Damansara. It is
also near to KL Sentral, Midvalley Megamall, Bangsar Village 1 & 2, and also Bangsar
Shopping Centre. So, it is not possible to get public transport and it is easier to get to the
shop.
There are also many amenities available here. For example, mosque, restaurants,
boutiques, banks, sports centre, shopping malls, schools, public transportation like buses and
taxis, ATM machines and many more.
We believe that this premise is the best for our business to operate as it has so many
advantages around the location and this will increase our profit and made our shop highly
known to everyone.


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6.0 Marketing plan
6.1 Service Description
6.1.1 Services
Arte de Pelo provides hair styling for the entire family. This includes hair cuts for men and
women, hair perm, hair rebonding and hair colouring for men and women, as well as hair cuts
for children. Shampoos will be offered for all adult services. Service is offered on a walk-in
basis or by appointment. Arte de Pelo will emphasize a customer-centric service where the
customer's needs are always the priority.

6.1.2 Service Descriptions
The following is an overview of our main services by category:
1) Hair cut This is the main service that we offered here. There are levels of
hair cutter we have provide with from junior, senior and
professional to meet the customers budget and expectation.
2) Hair colouring As this type of services, we provide various types of colour to be
match with customers demand.
3) Hair rebonding We offer this service for those who want to straighten their hair
either women or men.
4) Hair perm This is one of the services we provide for those who want to curl
their hair.


Page 21
6.2 Target Market.
Arte de Pelo target markets will consist of the following groups:

6.2.1 Men will typically make up 70-75% of the clientele.
o Men have shorter hair requiring a faster, simpler job.

6.2.2 Females who cannot afford an upscale salon.
o Women tend to favor a female specific upscale salon if they can afford it. There
is not often a difference in quality of an upscale salon relative to a family hair
salon other than a upscale salon will tend to pamper you more, only accepts
appointments, and the facility is generally a bit plusher. Someone who is fiscally
responsible as opposed to someone who likes opulence will favor a family style
salon.

6.2.3 Young mothers with children.
o Most young children are notoriously difficult when it comes to getting haircuts.
A family style salon is a more laid-back place that allows the children to play
while they are waiting and then will work with the parents in calming the kids
nerves when they are ready for their shearing.

70%
20%
10%
Market Analysis
Males
Females
Mothers with Young
Children

Page 22
6.3 Market Size

Market size is total potential purchase that is expected from the target market.
Estimation of market size required information regarding the particular market the business
intends to enter. The potential purchase includes purchase of the competitor within the same
market.
Bangsar is develop city where there are many infrastructure and services provided to
its surrounding. Bangsar also surrounded with working place, universities, college and
housing area. Besides that, each of the area within Bangsar are provided with public
transportation such as busses, train and taxis. Furthermore, two of the established shopping
complex that is Bangsar Village and Bangsar Shopping Centre are situated in Bangsar. From
the seasonal factor, Bangsar will be crowded with people during seasonal event such as New
Year, Hari Raya, Chinise New Year and other event.
We consider that 30% of population in Bangsar as total buyers that will use hair
services. Usually people like childrens, students, families, business person and others are in
bangsar because of work, school, shopping and spending their time with family. Our business
has identified our target market that is mainly on male and female. Therefore, from the 30%
of the population that use hair services, Arte de Pelo target around 24% from the total people
who use hair services. Thus, other competitors will conquer the balance of the population.


Page 23
6.4 Competition
At our location, Arte de Pelo has some competitors as same business like us. Arte De
Pelo looks three competitors as the major competitors in salon market which is Hair Concept,
Inspiration Alan Salon and La Bell Hair and Beauty Salon . We look competitors as an
incentive to improve our company to be good in providing the best services to customer. Arte
de Pelo also takes the competitors as healthy challenge. It just wants to make a variety in
market competitors especially at Jalan Telawi, Bangsar. So, customer can also have many
choices to meet their preferences. At the same time, Arte de Pelo will also provide good and
quality services to meet their expectation and satisfying their wants.

The similarities with the competitors are same which is providing services related to
salon. The difference of our company with the competitors are our company provides sub
services that differentiate our salon from other competitors like offering drinks to customers,
surf internet on laptop while colouring their hair, membership card and private room for
female muslim and artist. Our company also overcomes the competitors by providing hair
cutting services for big event such fashion show and runaway, reality tv show and wedding
ceremony.

6.4.1 Competitors list

Major

Inspiration Alan Salon
20 Jalan Telawi, 59100
Bangsar, Kuala Lumpur.

Strength:
a) The company has established early than Arte de Pelo Salon.
b) Strategic place which is continuous people passes by their salon
c) It is commonly known in east Malaysia.
Weaknesses:
a) All types of services provided are too expensive compared to Arte de Pelo
salon .
b) Newly introduce in peninsular Malaysia.


Page 24
Minor
La-Bell Hair & Beauty Salon
62 Jalan Telawi, 59100

Strength:
a) The company has established early than Arte de Pelo Salon.
b) Business focus on hair and other services such as pedicure and medicure.
Weaknesses
a) Location is not strategic because is not continous people passes their salon.
b) Services that provided are too expensive
c) Lack of promotion.

Hair Concepts
9a Jalan Telawi 2, 59100

Strength:
a) The company has established early than Arte de Pelo salon.
b) Good promotion deal.
Weaknesses
a) All types of services provided are to expensive compared to Arte de Pelo
salon.
b) Inexperience labour force.


Page 25
6.5 Market Share
6.5.1 Market Share before

45%
30%
25%
Hair Colouring
Inspiration Alan La Bell Hair Concept
55%
25%
20%
Hair Cut

Page 26

40%
30%
30%
Hair Rebonding
35%
33%
32%
Hair Perm

Page 27
6.5.2 Market share after the entry of Arte de Pelo.

Based on our study, Arte de Pelo will conquer some of this section from other
competitors by providing 30% in offering hair cut services for the market share. Arte de Pelo
salon provides special services for Muslim women and also artist by preparing a private room
for them. These services are rarely seen in other salon like La - Bell and Hair Concept. They
only give 15% and 12% respectively. Inspiration Alan also gets slightly higher ranking
compare to Arte de Pelo which provides 43%. Generally, people seek for hair salon to cut their
hair in order to make over their appearance through different hair style.

30%
43%
15%
12%
Hair Cut
Arte de Pelo Inspiration Alan La Bell Hair Concept

Page 28

As the major competitor, Inspiration Alan contributes more on hair colouring services
which carry out 35% of the total percentage. This is because, people are more confident to go
there as their experience in handling their customers. La Bell contribute to 23% from the
market share since the salon established earlier than Arte de Pelo. Arte de Pelo manage to beat
Hair Concept by 2% and slightly lower than La Bell by only 1%. In general, both men and
women will use this service in order to change their hairstyle with different colour.

22%
35%
23%
20%
Hair Colour

Page 29

As we can see every salon that stated above provide hair rebonding services to
customers. We conclude that Inspiration Alan 35%, La - Bell 25%, Arte de Pelo 20% and Hair
concept 20%. The differences percentage of The Arte de Pelo with others is based on
experience and influence of the salon because the other salon on the above are established
earlier than Arte de Pelo. Hair rebonding is services that both men and women use in order to
straighten their hair to meet their demand.

20%
35%
25%
20%
Hair Rebonding

Page 30

Arte de Pelo also offers its customer with hair perm service. So, customer will choose
either one of the salon stated from above in order to perm their hair. The percentages of the
entire salon are slightly different that is Inspiration Alan 28%, La - Bell 25%, Arte De Pelo
24% and Hair Concept 25%. Hair perm service are offered from the entire salon above because
the customers mostly women that want to curl their hair.

24%
28%
25%
23%
Hair Perm

Page 31
6.6 Sales Forecast

Month Haircut (RM) Hair
coloring
(RM)
Hair
rebonding
(RM)
Hair perm
(RM)
Sales
Collection
(RM)
1 6000 4000 5000 5000 20000
2 6500 4625 6500 4875 22500
3 7100 4750 6000 6150 24000
4 6750 5000 6250 5750 23750
5 7000 5250 6500 5250 24000
6 6900 5100 6750 6750 25500
7 7300 5500 7000 6700 26500
8 7600 5900 7500 7750 28750
9 7900 5800 7650 7650 29000
10 8400 6100 8000 8500 31000
11 8500 6200 8350 8500 31550
12 9500 6975 8500 9025 34000
Year 1 (TOTAL) 320550


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Sales Forecast Analysis
Hair styling is a major world industry, from the salon itself to products, advertising,
and even magazines on the subject. It is primarily specialize in certain areas of hair care, such
as coloring, up-dos for formal occasions, cutting or styling. Which salon one chooses will
determine the level of expertise being performed for the service. These establishments are
characterized by quality and type of services provided to the customer.

People across Malaysia have used hair salon services when they are in search of
hairstyle that meets their expectation and our services proven to be popular amongst its
receiver. The feedbacks that we got from them were mostly impressed with our services. This
has shown that Arte de Pelo has the calibre to be one of the most successful hair salons in
Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success
provided that it is handled efficiently. People have always needed hair services to bring
benefits to them. Hair will grow day by day. Therefore, people will seek for salon in order to
manage their hair. Arte de Pelo sees this as a way to prosper in this market, by taking
advantage of the peoples need for hair services.

As for the place information, Bangsar, is an affluent residential suburb on the outskirts
of Kuala Lumpur, lying about 4 kilometres (2.5 mi) south-west of the city centre. It is part of
the Lembah Pantai parliamentary constituency. Bangsar is administered by Dewan Bandaraya
Kuala Lumpur (DBKL) unlike other townships in the Klang Valley such as Petaling
Jaya and Subang Jaya which have their own municipal councils. Neighbourhood residents'
associations and business councils play a part in communicating with the local authority but
they exercise no legal or administrative power.

As geographic description, Bangsar situated At 3751N 1014010E Coordinates:
3751N 1014010E, Bangsar lies respectively to the north and south of the neighbouring
areas of Pantai Dalam and Damansara, and 4 kilometres (2.5 mi) south-west of Kuala
Lumpur city centre.


Page 33
Bangsar is bounded by Jalan Bangsar and Jalan Pantai Baharu to the south, Universiti
Malaya to the west, Jalan Damansara (Sprint Expressway and Bukit Damansara) to the north
and Bukit Persekutuan to the east. It has the following neighbourhoods or housing estates:
Bangsar Utama, Bukit Bangsar, Bangsar Park Bukit Bandaraya, Taman SA, Bangsar Baru,
Lucky Garden, Pantai Hills, and the areas off Jalan Bangsar. Jalan Maarof is Bangsar's main
thoroughfare, dividing Bangsar into two main areas: east and west. On the east side lies
Taman SA, Bangsar Park, Bukit Bangsar, Bangsar Utama and one-half of Bukit Bandaraya.
The remainder of the other neighbourhoods lies on the west.

Bangsar is rather flat at the southern neighbourhoods of Bangsar Utama, Bangsar Park
and the Off Jalan Bangsar area. This makes Jalan Bangsar in the south prone
to flooding during heavy downpours. The terrain progressively rises towards the north up
Bangsar Baru, before making a steep drop in elevation after Bukit Bandaraya.

As for demographic description, its earliest settlers were railway workers living next
to the KL-Klang railway track and rubber estate workers. Starting with a community of
mostly Indian civil servants, comprising teachers, firemen, telecommunications officers and
the police, Bangsar grew to include young professionals of various races
including Malays, Chinese, Indian and expatriates, bringing its population to some 40,000
people by 2005.

Bangsar has grown rapidly in recent years, but has paid a price in terms of traffic jams
and a shortage of parking places. Developments in neighbouring Bukit Damansara and Mid
Valley Megamall have caused increased traffic to pass through Bangsar, especially along
Jalan Maarof.

New shops and attractions are sprouting up in Bangsar, but many do not survive long,
especially food and entertainment outlets. Other long-standing outlets have been very
successful, opening up a second branch in Bangsar itself. Examples are Alexis and La
Bodega, Coffee Bean, and McDonald's which can be found on Jalan Telawi, also Bangsar
Shopping Centre and Bangsar Village.


Page 34
For the first month and second month of the business, our company gain RM20000
and RM 22500 of the sales collection from our four services line which are hair cut, hair
colour, hair rebonding and hair perm. Even though the sales are a bit low, but we are satisfied
with it and keep trying to increase the sales collection. We are doing sales promotion during
the grand opening of our salon which is located at Bangsar for 1week to promote our hair
salon to the public. We will give free hair cut for first 15 person who enter our salon and also
15% discount for other services provided by our salon. Many customers satisfied with it. This
is important for us to attract as many as possible customers thus to gain their loyalty to
become our loyal customers.

The third month shows an increasing amount that is RM 24 000. The service which
getting the highest sales collection is main service that is hair cut. The prices of the services
are also affordable for our customers to purchase it without taking more time to think either
to buy or not. These are one of the advantages that the customers cannot get from the other
hair salon. But fourth month sales are slightly decreasing compared to the third month that is
RM 23750. Although the sales are slightly decrease, Arte de Pelo still can run the business
without any problem and try to be more productive in the future.
For the fifth month onwards till the twelfth month, the sales are keep on increasing
from RM 24 000 to RM 34 000. This is because Arte de Pelo already gain the customers trust
by providing best services to them. By giving reasonable price, good service and additional
sub service that boost the quality of the salon, it gives impact to the customers perception
towards Arte de Pelo. Therefore, customers are satisfied and become a loyal customer to our
salon. Thus, this shows that Arte de Pelo is gaining its experience to be better in the future.
As for the next two years, Arte de Pelo estimate that the sales of the salon on the
second year will be increase to 13% from the first year that is RM 364 060 and for the third
year, the salon sales will be budgeted to increase by 13% from the second year that is
RM 441,700. By the sales forecast analysis, it shows that Arte de Pelo is evolving into an
established salon and well known in Bangsar. By the effort of the management of Arte de
Pelo, the salon itself has proven to become one of the most outstanding salons in Bangsar
Area.


Page 35
6.7 Marketing Strategies
Marketing strategy is one of the important elements to market the organization services.
The organization must use many strategies to promote our services to the customer. To Arte
de Pelo the marketing strategy is our strength to provide our services to the customer to make
them always remembers and we also provide the best services that is at the utmost quality,
where nobody would find any services better than our salon. The marketing strategies that we
use in term to our services to market level are:
6.7.1 Quality
Arte de Pelo salon only offer good quality of services, so that we can get many
customers since the customers always seek for the best quality provided to the
customers. Quality plays a main role in marketing strategies. The main thing that
always we think before offering our services to the customer is the quality. From the
quality we can know that our customer will satisfied with our services. When they are
satisfied of the quality of the services, they will come again to us and yet, we can get
the regular customer to our salon. To offer the best quality services to our customers,
we provide various level of hair cutter with different skills and talent in order to meet
the customer expectation and choose the quality products to be use which will satisfy
our customers wants. To boost up the quality on our services, we are using
SCHWARZKOPF as our main product to comply with our services. This brand has
been established all around the world. Therefore, this will enhance the influence of
the customers to attract them from the quality perspective.

6.7.2 Pricing
Although Arte de Pelo Sdn Bhd services are high-end and stylish in terms of
quality of the workers and quality product that we had been used, our pricing structure
remains affordable and in-line with other hair salon. Our pricing structure is also
based on the type of services provided to the customers. For hair cut, we provide from
junior to professional that each level of the hair cutter have different price for each
services that meet the customers budget and demand. As for the hair rebonding, hair
perm and hair colour, we will provide budgeted price that will attract customers.
Thus, our salon gives the reasonable price to our services compare to the other salon.
The prices of our services are more affordable. Our pricing structures are based on the
survey that had been done plus the count of all cost that include from the supplier to

Page 36
us. Our pricing structure is also based on the value the customers place on these
services. To attract more people to be our customers, we set the affordable price. Only
when the quantity and the quality of product are satisfied, then the payment will be
made.

6.7.3 Sub services
There are some of sub services that have been provided by Arte de Pelo in
order to create extra ordinary position to be compared from other salon. Unlike other
salon that only provided magazine for those who are waiting for their turn or friends
who accompany them, we provide them with internet wifi and also television to
prevent them to be bored or stress while waiting. Furthermore, we will offer the
customers with drinks before they cut their hair. We also give laptop services for
those who colour or rebonding their hair because it takes time a long hours to be
finish so they can online or do something with the laptop while waiting for their hair
to be complete. Furthermore, we provide a private room for the purpose of offering
services to the muslims women and artists who need privacy. With this method, we
completely sure that we will attract a lot of customers because of our extra services
that made exclusively to meet customers wants.

6.7.4 Place

Arte de Pelo is allocated at 15, Jalan Telawi 4, Bangsar. This building has
already completed with basic amenities such as water and electricity. Bangsar is a
strategic place to open up our business because it is located in middle of a city where
surrounded with elite community and foreigners. Besides that, many customers from
many other areas will come to Bangsar such as from Damansara, Shah Alam, Subang
Jaya, Petaling Jaya and other area in Kuala Lumpur because of the strategic location.
Therefore, it is suitable to open Arte de Pelo since the surrounding is good for our
salon development.


Page 37
6.7.5 Promotions
We start our marketing plan during the launching day by giving free hair cut for the
first 15 person who enter the salon. Besides that, we also provide discounts for every service
on the same day. Customers who come during the launching day will be given our pamphlets.
By giving pamphlets, customer will be expose about the background of salon and at the same
time will recognize our services. As for the free hair cut, it is to attract customer first
attention so that they will come again. Therefore, our goals to introduce our services to public
and maintain customer loyalty will be achieve.

Membership cards are the best alternatives to maintain customer loyalty and one of
the ways to businessperson to shows their appreciation to customer. Most of the hair salon
will use membership card as marketing plan. We also use the same ways but in different
concepts. We will provide 4 types of card that is green, yellow, blue and red. Each of the
cards will be filling with 10 boxes. If all the boxes are full, the user of the card will be given
free services. As for the green, yellow, blue and red we will give a free hair cut, hair colour,
hair rebonding and hair perm respectively.

Promotion of Arte de Pelo also can be done either by promoting through media or
non-media channel. To our company it is more efficient to promote our services to the public
by promoting through the non-media channel which is Business Card, Bunting, Flyers, Word-
of-Mouth, and Advertising Literature. From the media channel, we can use blog and
Facebook to support public with our salon information. This will make them easier to reach
our area of promotion and maintain our relationship with customers only by internet services.
We choose to use the high cost on advertising because it is an introduction of the business to
the public. As for the introduction, we must expose our business in the early stage in order to
influence customers as much as we could. Thus, with high promotion in the early stage of
business, Arte de Pelo will incurred high cost but will cover the expenses in future as soon as
possible with the effort done by heavy promotion that leads to increase of sales.

The important method in term to promote our company disseminates our business
card to the customer because this is an easy way for them to know our salon. In the business
card stated the name of our salon, telephone number, address and any details of our salon can
get it from the business card. So customer can easily contact, ask or deal with our salon.

Page 38

Besides that, we use bunting to promote our salon. To make people aware to the
bunting, we use the attractive colour and writing. We also locate our bunting at the strategic
places so that people can see the bunting clearly without any obstacles. We locate our bunting
near to the main road and strategic location that people passes around. This will help our
customers to locate our shop.

Moreover, we also use Word-of-Mouth, and Advertising Literature. Word-of-Mouth
is a networking through friends, family, and business associates which is an inexpensive and
effective marketing tool which Arte de Pelo utilizes to broaden our clientele base.
Furthermore, we also will distribute our literature to various local community businesses and
establishments such as restaurants, coffee shops, book stores, and universities.

During seasonal time such as Chinese New Year, Hari Raya, Christmas, Deepavali,
New Year we also provides promotion for customer. We will provide discounts for every
services that we had offer to the customers. This is because during seasonal period, people
will seek for hair salon as they want their hair to be proper and meet their physical
appearance. Therefore, we provide discount to influence them to come to our salon.
Therefore, high sales can be achieved with no doubt.


Page 39
6.7.5.1 Business Cards.


Page 40
6.7.5.2 Bunting


Page 41
6.7.5.3 Flyers


Page 42
6.7.5.4 Brochures


Page 43


Page 44
6.7.5.5 Membership cards


Page 45
6.8 Marketing Budget
Item Fixed Asset Monthly Expenses Other Expenses
Signboard 4,000
Salaries + EPF + SOCSO 2,290
Advertising 200
Grand opening 5,000
Bunting 500
Flyers 300
Business cards 200
Total 4,000 2,490 6,000


Page 46
7.0 Operations Plan
7.1 Service Planning
Flow chart of process of service

Invite the client to waiting room to discuss.
Greet the customer.
Get the information from the client
Brief the client about the conditions and consult whether is it suitable
for them or not on the services they want and get the agreement from
them.
Assist the client to the hair dressing room. Please them with offering
drinks, magazines, or online.
Work on the style of the hair or the services that the client wants.
Show them the results.
Get the feedback from client.
Make the amendment accordingly.

Page 47
7.2 Operations Layout.

BUILDING SIZE
40ft length X 60ft width
12ft height

60 ft
40 ft

Page 48
7.3 Service Planning
Our service plan starts with greeting the customer that comes, walk in to the shop.
This is because when we greet the customers, they will feel comfort and appreciated and
make them want to come more to the shop.
After they walk in, we will invite the customers to the waiting room, so it will be
easier to discuss what services they want in comfortable place.
We will obtain information from the client, about what hair style they want to do, or
any other services that they want. We will consult and advice the client whether the hair style
is suitable for them and the condition of their hair if they want to do any other services like
colouring, perm, rebonding or so on.
After the discussion, we will get the agreement from the client on the final decision of
what services they want. Then we will assist them to the hair dressing room. We will offer
the sub service to customers any drinks, magazines to read or maybe if they want to online
and we can give them laptop and the sub services is for free. That is for entertain the client so
that they will not get bored while waiting for the services to be done.
Next step would be, transferring the idea, the requested hair style or other services
that has been discussed earlier into work. We will work it on with due care and professional
so that the outcome will satisfy the customers.
When the work has finished, we will show the result to the client. We will touch up
the part that is not right or if the customers requested to add some services or to re-style their
hair into another. For example the length for hair that has been cut is not short enough, so we
will cut the hair shorter a bit, or to re-style the hair, maybe into Mohawk hair style for men
instead of spiky hair style.
After sales, feedback will be obtained from the customer. Thats state in our company
policy to provide outstanding after sale services. Then we will improve our service based on
that comments and feedback.


Page 49
7.4 Material Planning
When we started our business, we budget the materials cost would be RM40, 000 for
all products. So we ordered the products within the amount that we estimated and we
managed to get low prices for the products from Schwarzkopf and Schwarzkopf is our main
dealer for our hair products.
From the products that we ordered when we start our business within RM40, 000 cost
budgets, for 1
st
to 2
nd
month, the quantity of the products is still enough to cover our
operation cycle since we just open our salon, so the usage is still little. So we did not order
the products to add up into our store. Plus, Schwarzkopf products are a very good quality
products and it can be use for a long time period.
For 3
rd
months and following months, we will start to order and replace the products
by monthly order. We set up the budget cost will be RM3, 000 per month for all products.
We have estimated our order to be in some quantity for the products per month and it is fixed.
We will replace the products based on the fixed quantity so that it will be easier for us to
order and our store will not have lack of products to be use to customers.


Page 50
7.4.1 Materials
HENKEL (MALAYSIA) SDN BHD
SCHWARZKOPF PROFESIONAL DIVISION

EFFECTIVE DATE : SEPTEMBER 2009
DEPARTMENT : MARKETING

SALON PRICE LIST MALAYSIA

IDH
NUMBER DESCRIPTION SIZE PRICE
BC REPAIR RESCUE
1299281 BC Bonacure Repair Rescue Shampoo 1250 ml RM161
250 ml RM53
1260417 BC Bonacure Repair Rescue Conditioner 1000 ml RM142
1259395 BC Bonacure Repair Rescue Treatment 200 ml RM79
1259274 BC Bonacure Repair Sealed Ends 250 ml RM64
BC COLOUR SAVE
1259319 BC Bonacure Colour Save Shampoo 250 ml RM64
1259396 BC Bonacure Colour Save Conditioner 1000 ml RM161
200 ml RM68
1259252 BC Bonacure Colour Save Spray Conditioner 200 ml RM68
1259402 BC Bonacure Colour Save Treatment 750 ml RM194
1259575 BC Bonacure Colour Save Colored Ends 75 ml RM46
BC MOISTURE KICK
1259641 BC Bonacure Moisture Kick Shampoo 1250 ml RM161
250 ml RM53
1255373 BC Bonacure Moisture Kick Spray Conditioner 200 ml RM57
400 ml RM98
1266994 BC Bonacure Moisture Kick Treatment 150 ml RM34
BC HAIR & SCALP EXPERT
1259257
BC Hair & Scalp Deep Cleansing Shampoo ( For Oily
Scalps ) 1250 ml RM161
1258007
BC Hair & Scalp Hair Growth Shampoo (For
Thinning Hair) 250 ml RM53
1259264 BC Dandruff Control Shampoo 250 ml RM53
1259268 BC Hair & Scalp Control Fluid 100 ml RM64
1259407 BC Hair Growth Serum 100 ml RM368
14 x 2 ml RM283
1259270 BC Hair & Scalp Deep Cleansing Pre-Shampoo 200 ml RM98
BC OSIS
1259406 Osis Magic Anti-Frizz Gloss Serum 50 ml RM79

Page 51
1259870 Osis Upload Volume Creme 200 ml RM68
1259877 Osis Thrill Fiber Gum 100 ml RM79
1259254 Osis Buff Styling Cream 150 ml RM68
1259340 Osis Rough Up Modeling Clay 75 ml RM79
BC ALOE ESSENCE SENSITIVE SOOTHE
1257888
BC Aloe Essence Sensitive Soothe Calming Scalp
Serum 8 x 7 ml RM135
1267170 BC Aloe Essence Sensitive Soothe Conditioner 1000 ml RM161

200 ml RM68
1259394 BC Aloe Essence Sensitive Soothe Shampoo 1250 ml RM183
250 ml RM64
1259318 BC Aloe Essence Sensitive Soothe Treatment 750 ml RM194
BC TIME RESTORE
1259243 BC Time Restore Q10 Treatment 200 ml RM94
750 ml RM238
1258278 BC Time Restore Q10 Shampoo 250 ml RM72
1259218 BC Time Restore Q10 Conditioner 200 ml RM83
1259745 BC Time Restore Scalp Balm 8 x 7 ml RM135


Page 52
7.4.2 Catalog

BC Bonacure Repair Rescue
Shampoo

Conditioner

Treatment

BC Bonacure Repair Sealed
Ends

BC Bonacure Color Save
Shampoo

Bonacure Color Save
Conditioner

Spray Conditioner

Treatment

Colored Ends


Page 53

BC Bonacure Moisture Kick
Shampoo

Spray Conditioner

Treatment

BC Hair & Scalp Deep
Cleansing Shampoo (For Oily
Scalps)

Osis Magic Anti-Frizz Gloss
Serum

Osis Upload Volume Crme

Osis Thrill Fiber Gum

Osis Buff Styling Cream

Osis Rough Up Modeling
Clay


Page 54

BC Time Restore Q10
Shampoo

BC Time Restore Q10
Conditioner

BC Time Restore Q10
Treatment

BC Time Restore Scalp Balm

BC Dandruff Control
Shampoo

BC Hair & Scalp Hair
Growth Shampoo (For
Thinning Hair)

BC Dandruff Control
Shampoo

BC Hair & Scalp Control
Fluid

BC Hair & Scalp Deep
Cleansing Pre-Shampoo


Page 55
7.4.3 Types of Colours


Page 56
7.5 Machines and Equipment planning

No Machine Quantity Price/Unit
(RM)
Total Price
(RM)
1. Cash Register Machine 1 755 755
2. Reception table 1 450 450
3. Styling Station 8 50 400
4. Styling Chair 10 250 2500
5. Shampoo chairs & bowl 2 100 200
6. Stool 6 150 900
7. Heater 1 3000 3000
8. Micromist 1 4000 4000
9. Hair Iron 3 250 750
10. Hair dryer 6 250 1500
11. Air Condition 2 1500 3000
12. Hair Steaming Machine 1 700 700
13. Digital Perm Machine 1 2000 2000
14. Water hair Spray 8 15 120
15. Hair comb (per set) 8 500 4000
16. Television Set 1 1899 1899
17. Sofa set 1 800 800
18. Water Dispenser 1 450 450
19. Glass & Cup (per set) 1 30 30
20. Retail display Shelf 1 200 200
21. Magazine Rack 1 300 300
22. 3 Level Supply Trolley 3 189 567
23. Curtain Privacy Screen 1 119 119
24. Aprons 8 30 240
TOTAL 28880

Page 57
7.6 Manpower Planning
We discussed that the worker is from our partner, some of them and outsiders. This is
because we manage small salon and some of our partner are qualified to work as a cutter and
for the rest we hired from outsiders. For those who are working, the duties are only cashier,
receptionist and senior/professional cutter.
Nadia as Human Resource manager was set the duties for the workers including some
of our partner. Azfar and Fatin will be the professional cutters and Nadia will be the
receptionist and cashier as she will always be around at the shop. We hired 5 workers from
outside, which are two junior cutters, two is professional and another worker will work as
fortune-wash hair and craftsman hair color. Means the two professional cutters is permanent
workers and another three workers is part time workers.
Syapiq or Aizat will replace the position for Nadia if she in break time or she cannot
attend to work. Nadia will make sure that all the workers come to work on time and rotating
queue for their break time. We will tell the customers to make appointment so that it will be
easier for the workers to scheduling their work. They can just walk in but only the workers
who available for that time can cut hairs and so on. So it is better for the customers to make
an appointment and choose their favourite cutters. Their break times are not fixed as the time
for cutting hair and doing the stylish are within unpredictable length of time. So, when there
are no customers, they can go for their break for 2 hours.

Day On Duties Off Duties
Monday Azfar, Nadia, Aizat, Syapiq,
one permanent, two part time
workers.
Fatin, one permanent and
part time worker.
Tuesday Fatin, Nadia, Aizat, Syapiq,
one permanent and three part
time workers.
Azfar and one permanent
Wednesday Fatin, Azfar, Syapiq, Aizat,
two permanent and two part
time workers.
Nadia and one part time
worker.

Page 58
Thursday Fatin, Azfar, Aizat, Nadia,
two permanent and part time
workers.
Syapiq and one part time
worker.
Friday Everyone except Aizat Aizat
Saturday ALL -
Sunday ALL -

7.7 Overhead Requirement
Overhead requirement that Arte de Pelo needs is electricity, waters, telephones and
WIFI. Electricity is very important to the operation of Arte de Pelo because it will be
operated from 10 a.m. until 10 p.m. Thats why cost of electricity is very high for every
month. . It will be the same as water expenses as water is important elements in cutting and
stylising hair. So, it is important to the managers to calculate the estimate amount of all the
overhead incurred.
For wifi, the cost is fixed per month. For telephone bills, we already limit RM200 per
month because usually the customer will call us for appointment.


Page 59
7.8 Location

Arte de Pelo
15, Jalan Telawi 4,
Bangsar,
59100 Kuala Lumpur,

We are
here!!

Page 60
7.9 Business and Operations Hours
Arte de Pelo Hair Salon will open every day, but the time is varying for weekday and
weekend. The business is open from 10am to 10pm from Monday to Friday. For Saturday,
the business is open from 11am to 10pm meanwhile for Sunday; it is open from 11am to
9pm. Public holidays are holidays for worker including their off days per week. We provide
2 hours rest. The rest hour is not straight 2 hours. We give 1 hour for first rest and 1 hour for
another rest. On Friday, the male worker will be given 1 hour and half break at 1pm until
2.30pm, so that they can perform their Jumaat prayer. Means, they will have another 30
minutes break left. For Saturday and Sunday, there will be no staff takes their day off due to
many customers.
Day Hour
Monday to Friday 10am 10pm
Saturday 11am 10pm
Sunday 11am 9pm


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7.10 License, Permits and Regulations Required
Arte de Pelo has to get licenses from the related bodies and authority in order to run the
business smoothly. The licenses that are required are:
1. Premise and sign board license from DBKL
(Form DBKL-JPL-KP-01-A1)
2. License for outdoor advertising from DBKL
(Form DBKL-JPL-KP-01-B1)
3. Music Authors Copyright Protection License (MACP)
4. License for Performers and Artiste Rights (PRISM)


Page 62
7.11 Operations Budget
Item Fixed Asset
(RM)
Monthly
Expenses
(RM)
Other Expenses
(RM)
Machine and Equipment 28880
Salaries, EFP & SOCSO 12138
Salon Product 40000
TOTAL 28880 12138 40000


Page 63
7.12 Project Implementation Schedule

Activities Deadlines Durations
Incorporation of business March - May 2009 3 months
Application for permits and
license
March - May 2009 3 months
Searching for business
premise
June - July 2009 2 months
Renovation of premise August 2009 3 weeks
Setting Fixtures and fittings August 2009 5 days
Procurement of stocks and
materials
September 2009 1 month
Searching for workers October - November 2009 1 months
Final Checklist December 2009 1 day
Grand Opening January 2010 -

Page 64
8.0 Organizational plan.

8.1 Mission and Vision

Arte de Pelo mission is to provide reasonably priced, convenient hair styling. We exist to
attract and maintain customers. When we adhere to this maxim, everything else will fall into
place. Our services will exceed the expectations of our customers.
Arte de Pelo vision is to create a harmonious, productive, profitable salon environment, and also
supplying the community with a retail centre.

Motto
We strive to make you look best
We strive to make you look best. This motto represents the determination of our company
to provide the best hair cut with a touch of art to our precious customer. It also magnifies the
need of our company to give people the best services that we can offer. With the best
services, it will guarantee our customer satisfaction. Beauty comes from within, but a good
haircut definitely helps.


Page 65
8.2 Organization chart
Structure Based on Functions
Structure based on functions is a line organizational structure based on functions is suitable
for business organizations that emphasize functional specialties to perform tasks. Activities
may be divided into marketing, public relation, human resource, administration and finance.

Chief Executive
Officer
Mr Mohd Syapiq
Financial Manager
Mr Mohd Aizat
Marketing Manager
Mr Mohd Azfar
Public Relation
Manager
Ms Nur Fatin
Human Resouce
Manager
Ms Nur Nadiati

Page 66
8.3 Manpower planning
8.3.1 Schedule of tasks and responsibilities
Position Tasks and responsibilities

1. Chief
executive
officer
1. Responsible in managing the company towards the vision,
mission, and the objectives of the company
2. Act as a decision maker and cooperate in gaining ideas to
improve the business
3. Identify and plan the business objective, highlight the
regulations and business procedures in order to achieve the
objective.
4. Monitor the activities to ensure that all are being
accomplished as plan
5. Always alert to organization and business operation
6. Oversee the operations of the retail area. This includes
inventory, stocking, and displays.
7. Handle payroll operations.
8. Participate with interviewing.
9. Develop color specialization.
10. To ensure office equipment is available and in good
condition

2. Financial
manager
1. Responsible of the cash flow and budgeting plan of the
business
2. Analyzing, controlling, and record the money cash flow of
the business
3. Preparing annual account and advisor in financial aspects
4. Preparing salary slips, business receipt, and paid salary
5. Using efficient and effective ways to increase sales and profit
to make sure good development of business

3. Marketing
manager
1. Marketing planner.
2. Develop Arte de Pelo newsletter.
3. Develop artedepelo.com web page
4. Responsible to set the 4Ps
5. Find the strategic place
6. Find the target market
7. Decide the product to sell
8. Set the promotion of the product

4. Public
relation /
Operational
manager
1. Making sure that clients are getting the best customer
service.
2. Ensure all staff is supplied with business cards.
3. Handle customer complaints and suggestions in a pleasant,
efficient, and professional manner.
4. Operation manager basically concerned with the production
of goods and services.

Page 67
5. Operation manager also have responsibility of ensuring that
business operations are efficient in terms of using as little
resource as needed, and effective in terms of meeting
customer requirements.
6. It is concerned with managing the process that converts
inputs (in the forms of materials, labour and energy) into
outputs (in the form of goods and services).

5. Human
Resource
manager
1. Active involvement in recruiting and interviewing potential
staff.
2. Orientation of new staff, job description, policy, and
procedures of Arte de Pelo Salon.
3. Forecast the next turnover of the company
4. Do the job analysis

6. Receptionist 1. Give good customer service by greet all clients and
customers with a smile. Offer a beverage, reading material,
and take their coat. Direct them to a dressing area if
appropriate.
2. All new clients are given a menu and tour of the facilities.
3. Handle all phone calls politely and professionally.
4. Booking and confirming appointments.
5. Communicate product knowledge to clients with confidence.
Have knowledge of all services offered and their prices.
6. Check in clients.
7. Responsible for handling all financial transactions of clients.
8. It is the receptionist's duty to close out the POS terminal and
credit card terminal at the end of the day or shift.
9. Maintenance of the reception area, waiting area, and display
units are also responsibilities.
10. Inform technicians when their clients have arrived or
cancelled.
7. Hair
cutter/hair
stylist and
other
employees
1. Focusing on clients' needs .
2. Be involved within the community.
3. Communicate product knowledge and service knowledge to
the clients you service.
4. Incorporate stress-relieving treatments and finishing touches
with each client.
5. Encourage and educate clients on new trends focusing on the
total look.
6. Encourage client referrals.
7. Identify professional goals annually.
8. Participate with daily cleaning.
9. Enhance the image of the industry maintaining a professional
relationship with the clientele.
10. Actively participate with the team.

Page 68
8.3.2 Schedule of remuneration.
Monthly based remuneration.
No. Position Monthly
Salary
(RM)
EPF, 12%
(RM)
SOCSO,
2.5% (RM)
Total
Amount
(RM)
1. CEO 2500 300 63 2863
2. Financial Manager 2000 240 50 2290
3. Marketing Manager/
senior hair stylist
2000 240 50 2290
4. Public Relation Manager/
senior hairstylist
2000 240 50 2290
5. Human Resource
Manager/receptionist
2000 240 50 2290
6. Full time hair stylist 1500 180 38 1718
7. Full time hair stylist 1500 180 38 1718
8. Part time hair stylist 1200 144 30 1374
TOTAL 17100 2052 429 19581


Page 69

Yearly based remuneration.

Year 1 Year 2 Year 3
Chief executive officer RM 30,000 RM 36,000 RM 36,000

Financial manager RM24,000 RM 30,000 RM 30,000
Marketing manager RM 24,000 RM 30,000 RM 30,000
Public relation manager RM 24,000 RM 30,000 RM 30,000
Human resource manager RM 24,000 RM 30,000 RM 30,000
Full-time hair stylist RM 18,000 RM 20,400 RM 20,400
Full time hair stylist RM 18,000 RM 20,400 RM 20,400
Part time hair stylist RM14,400 RM 16,800 RM 16,800
Total Payroll RM 205,200 RM 247,200 RM 247,200


Page 70
8.4 List of Office Equipment
Office furniture &fittings
No Items description Quantity Price per
quantity
Total price
1 Desktop computer 1 RM 2500 RM 2500
2 Printers 1 RM 200 RM 200
3 Fax and telephone 1 RM 380 RM 380
4 Chair 3 RM 65 RM 195
5 Locker 3 RM 130 RM 390
6 Table 1 RM 250 RM 250
7 Multi purpose rack 1 RM 200 RM 200
8 Cabinet 1 RM 350 RM 350
9 Air conditioner 1 RM 1500 RM 1500
TOTAL RM 5965

List of Stationeries
No Items description quantity Price per
quantity
Total price
1 Account book 3 RM 3 RM 9
2 Address book 1 RM 2.50 RM 2.50
3 Book keeping(hard cover) 3 RM 5 RM 15
4 Cash bill book 3 RM 5 RM 15
5 Cheque record book 3 RM 3.50 RM 10.50
6 Note book 7 RM 2.50 RM 17.50
7 Soft exercise book 7 RM 1.50 RM 10.50
8 Casio desktop calculator 2 RM 8.00 RM 16
9 CD-R/CD-RW 1 sets RM 10 RM 10
10 DVD-R/DVD-RW 1 sets RM 15 RM 15
11 Envelope 2 sets RM 2 RM 4
12 Box file/document case 2 RM 6 RM 12
13 Clip board file 4 RM 4 RM 16
14 Expanding file 3 RM 8 RM 24
15 Magazine holder 5 RM 5 RM 25
16 Ring file 2 RM 6 RM 12
17 Examination pad 3 RM 4.50 RM 13.50
18 Voucher pad 5 RM 3 RM 15
19 A4 paper 2 RM 8.90 RM 17.80
20 Color simili paper 5 RM 9.90 RM 49.50
21 Computer form 5 RM 6.90 RM 34.50
22 Fancy card 5 RM 7.50 RM 37.50
23 Fax paper 5 RM 8 RM 40
24 Inkjet & glossy paper 3 set RM 15 RM 45
25 Battery 5 RM 7.50 RM 37.50

Page 71
26 Clips 3 boxes RM 3.50 RM 10.50
27 Date chop 3 RM 7.50 RM 22.50
28 Document tray 3 RM 10 RM 30
29 Eraser 8 RM 0.20 RM 1.60
30 Glue & gum 8 RM 0.50 RM 4
31 Pin 3 RM 1.50 RM 4.50
32 Puncher 3 RM 4.00 RM 12
33 Ruler 5 RM 0.60 RM 3
34 Scissors 6 RM 1.20 RM 7.20
35 Stamp pad 5 RM 5.00 RM 25
36 Stapler 5 RM 4.50 RM 22.50
37 Canon ink cartridge 4 RM 21.00 RM 84
38 Notice board 2 RM 50 RM 100
39 Ball pen 2 dozens RM 4 RM 8
40 Correction pen 5 RM 5 RM 25
41 Highlighter marker 3 RM 5 RM 15
42 Permanent marker 1 dozens RM 12.00 RM 12.00
43 Mechanical pencil 5 RM 3 RM 15
TOTAL RM 906


Page 72
8.5 Organizational/administration budget
Administration Budget
Items Fixed Asset
(RM)
Monthly
Expenses
(RM)
Other
Expenses
(RM)
Furniture & Fittings 5965
Renovation 20000
Salary (EPF & SOCSO) 5153
Rent 4000
Utilities 900
Office Supplies 906
Business Registration 2000
Deposit (Rent) 8000
Professional Fees 1000
Total 25965 10959 11000


Page 73


Page 74
9.0 Financial plan
9.1 Project implementation cost

Arte de Pelo Enterprise
PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE
Project Implementation Cost Sources of Finance
Requirements Cost Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building
Office furniture & fittings 5,965 5,965
Renovation 20,000 20,000

Signboard 4,000 4,000

Machineries 28,880 28,880

Working Capital 1 months
Administrative 10,959 10,959
Marketing 2,490 2,490
Operations 12,138 9,273 2,865
Pre-Operations & Other Expenditure 57,000 21,200 35,800
Contingencies 5% 7,072 7,072

TOTAL

148,503 48,503 100,000

Page 75

9.2 Sources of financing

Sources of Finance
Requirements Loan Hire-Purchase Own Contribution
Fixed Assets Cash Existing F. Assets
Land & Building
Office furniture & fittings 5,965
Renovation 20,000

Signboard 4,000

Machineries 28,880

Working Capital
Administrative 10,959
Marketing 2,490
Operations 9,273 2,865
Pre-Operations & Other
Expenditure 21,200 35,800
Contingencies 7,072

TOTAL 48,503 100,000

Page 76

9.3 Pro forma cash flow statement
PRO FORMA CASH FLOW STATEMENT

MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3

CASH INFLOW

Capital (Cash) 100,000

100,000
Loan 48,503

48,503
Cash Sales

20,000 22,500 24,000 23,750 24,000 25,500 26,500 28,750 29,000 31,000 31,550 34,000 320,550 384,060 441,700
Collection of Accounts Receivable

TOTAL CASH INFLOW 148,503 20,000 22,500 24,000 23,750 24,000 25,500 26,500 28,750 29,000 31,000 31,550 34,000 469,053 384,060 441,700

CASH OUTFLOW

Administrative Expenditure

Office supplies

906 906 906 906 906 906 906 906 906 906 906 906 10,872 10,872 10,872
Rent

4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 48,000 48,000
Utilities

900 900 900 900 900 900 900 900 900 900 900 900 10,800 10,800 10,800
Salary, EPF & Socso

5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 61,830 61,830 61,830

Marketing Expenditure

Salary, EPF & Socso

2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 27,480 27,480 27,480
Advertising

200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,400 2,400


Page 77
Operations Expenditure

Cash Purchase

1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 12,000 12,800 13,600
Payment of Account Payable

1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 16,200 18,000 19,200
Carriage Inward & Duty

Salaries, EPF & SOCSO

12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 145,656 145,656 145,656

Other Expenditure

Pre-Operations

Deposit (rent, utilities, etc.)

Business Registration & Licences 1,500

1,500
Insurance & Road Tax for Motor Vehicle

Other Pre-Operations Expenditure 55,500

55,500
Fixed Assets

Purchase of Fixed Assets - Land & Building

Purchase of Fixed Assets - Others 58,845

58,845
Hire-Purchase Down Payment

Hire-Purchase Repayment:

Principal

Interest

Loan Repayment:

Principal

404 404 404 404 404 404 404 404 404 404 404 404 4,850 4,850 4,850
Interest

202 202 202 202 202 202 202 202 202 202 202 202 2,425 2,183 1,940
Tax Payable

0 0 0 0
TOTAL CASH OUTFLOW 115,845 26,193 26,193 27,393 29,193 29,193 29,193 29,193 29,193 29,193 29,193 29,193 29,193 458,358 344,871 346,628
CASH SURPLUS (DEFICIT) 32,658 (6,193) (3,693) (3,393) (5,443) (5,193) (3,693) (2,693) (443) (193) 1,807 2,357 4,807 10,695 39,189 95,072
BEGINNING CASH BALANCE 32,658 26,465 22,772 19,380 13,937 8,744 5,051 2,359 1,916 1,723 3,530 5,887 10,695 49,884
ENDING CASH BALANCE 32,658 26,465 22,772 19,380 13,937 8,744 5,051 2,359 1,916 1,723 3,530 5,887 10,695 10,695 49,884 144,955


Page 78
9.4 Pro forma income statement

PRO-FORMA INCOME STATEMENT


Sales 320,550 384,060 441,700

Less: Cost of Sales

Opening stock
9,000 8,600

Purchases

30,000 32,000 34,000

Less: Ending Stock 9,000 8,600 8,000

21,000 32,400 34,600

Gross Profit 299,550 351,660 407,100

Less: Enpenditure

Administrative Expenditure 131,502 131,502 131,502

Marketing Expenditure 29,880 29,880 29,880

Other Expenditure

Business Registration &
Licences
1,500

Insurance & Road Tax for Motor
Vehicle

Other Pre-Operations
Expenditure
55,500

Interest on Hire-Purchase

Interest on Loan 2,425 2,183 1,940

Depreciation of Fixed Assets 11,769 11,769 11,769

Operations Expenditure 145,656 145,656 145,656

Total Expenditure 378,232 320,990 320,747

Net Profit Before Tax (78,682) 30,670 86,353
Tax 0 0 0
Net Profit After Tax (78,682) 30,670 86,353
Accumulated Net Profit (78,682)
(48,012) 38,341

9.5 Pro forma balance sheet

PRO-FORMA BALANCE SHEET

ASSETS

Non-Current Assets (Book
Value)

Land & Building

Office furniture & fittings 4,772 3,579 2,386
Renovation 16,000 12,000 8,000

Signboard 3,200
2,400 1,600

Machineries 23,104 17,328 11,552

Other Assets

Deposit

47,076 35,307 23,538
Current Assets

Stock of Raw Materials
0 0 0
Stock of Finished Goods 9,000 8,600 8,000
Accounts Receivable
Cash Balance 10,695 49,884 144,955

19,695 58,484 152,955

TOTAL ASSETS 66,771 93,791 176,493

Owners' Equity

Capital

100,000 100,000
100,000
Accumulated Profit

(78,682) (48,012) 38,341

21,318 51,988 138,341
Long-Term Liabilities

Loan Balance

43,653 38,802 33,952
Hire-Purchase Balance

43,653 38,802 33,952
Current Liabilities

Accounts Payable

1,800 3,000 4,200

TOTAL EQUITY & LIABILITIES 66,771 93,791 176,493

Page 80
9.6 Financial Analysis

FINANCIAL RATIO ANALYSIS
LIQUIDITY

Current Ratio 11 19 36
Quick Ratio (Acid Test) 6 17 35

EFFICIENCY
Inventory Turnover 2 4 4

PROFITABILITY
Gross Profit Margin 93.45% 91.56% 92.17%
Net Profit Margin -24.55% 7.99% 19.55%
Return on Assets -117.84% 32.70% 48.93%
Return on Equity -369.09% 58.99% 62.42%

SOLVENCY
Debt to Equity 213.21% 80.41% 27.58%
Debt to Assets 68.07% 44.57% 21.62%
Time Interest Earned (33) 13 44


Page 81

0
5
10
15
20
25
30
35
40
1 2 3
R
a
t
i
o
Year
Current Ratios
0
5
10
15
20
25
30
35
40
1 2 3
R
a
t
i
o
Year
Quick Ratios

Page 82

0
1
1
2
2
3
3
4
4
5
1 2 3
T
i
m
e
s
Year
Inventory Turnover
90,50%
91,00%
91,50%
92,00%
92,50%
93,00%
93,50%
94,00%
1 2 3
P
e
r
c
e
n
t
Year
Gross Profit Margin
90,50%
91,00%
91,50%
92,00%
92,50%
93,00%
93,50%
94,00%
1 2 3
P
e
r
c
e
n
t
Year
Gross Profit Margin
90,50%
91,00%
91,50%
92,00%
92,50%
93,00%
93,50%
94,00%
1 2 3
P
e
r
c
e
n
t
Year
Gross Profit Margin
90,50%
91,00%
91,50%
92,00%
92,50%
93,00%
93,50%
94,00%
1 2 3
P
e
r
c
e
n
t
Year
Gross Profit Margin

Page 83

-30,00%
-25,00%
-20,00%
-15,00%
-10,00%
-5,00%
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
1 2 3
P
e
r
c
e
n
t
Year
Net Profit Margin
-140,00%
-120,00%
-100,00%
-80,00%
-60,00%
-40,00%
-20,00%
0,00%
20,00%
40,00%
60,00%
1 2 3
P
e
r
c
e
n
t
Year
Return on Assets

Page 84

-400,00%
-350,00%
-300,00%
-250,00%
-200,00%
-150,00%
-100,00%
-50,00%
0,00%
50,00%
100,00%
1 2 3
P
e
r
c
e
n
t
Year
Return on Equity
0%
50%
100%
150%
200%
250%
1 2 3
P
e
r
c
e
n
t
Year
Debts to Equity
Series1

Page 85

0%
10%
20%
30%
40%
50%
60%
70%
80%
1 2 3
P
e
r
c
e
n
t
Year
Debts to Assets
-40
-30
-20
-10
0
10
20
30
40
50
1 2 3
T
i
m
e
s
Year
Times Interest Earned

Page 86
9.7 Budget
9.7.1 Administrative budget
ADMINISTRATIVE BUDGET

Particulars F.Assets
Monthly
Exp. Others Total

Fixed Assets
Land & Building

-

-
Office furniture & fittings

5,965

5,965
Renovation

20,000

20,000

-

-

-

-
Working Capital
Office supplies

906

906
Rent

4,000

4,000
Utilities

900

900
Salary, EPF & Socso

5,153

5,153

-

-

-

-

-

-
Pre-Operations & Other Expenditure
Other Expenditure

-

-

-
Business Registration & Licences

1,500

1,500
Vehicle

-

-
Other Pre-Operations Expenditure

9,500

9,500
Total

25,965

10,959

11,000

47,924


Page 87
9.7.2 Marketing budget
MARKETING BUDGET

Monthly
Exp. Others Total

Fixed Assets
Signboard

4,000

4,000

-

-

-

-

-

-
Working Capital
Salary, EPF & Socso

2,290

2,290
Advertising

200

200

-

-

-

-

-

-

-

-

-

-
Other Expenditure

-

-

-

-

-
Vehicle

-

-

6,000

6,000
Total

4,000

2,490

6,000

12,490


Page 88
9.7.3 Operations budget
OPERATIONS BUDGET

Monthly
Exp. Others Total

Fixed Assets
Machineries 28880

28,880

-

-

-
Working Capital

Raw Materials

-

-

-

-
Salaries, EPF & SOCSO

12,138

12,138

-

-

-

-

-

-

-

-
Other Expenditure

-

-

-

-

-
Vehicle

-

-

40,000

40,000
Total

28,880

12,138

40,000

81,018


Page 89
9.8 Depreciation schedule
Fixed Asset Office furniture & fittings
Cost (RM) 5,965
Method Straight Line
Economic Life (yrs) 5
Annual Accumulated
Year Depreciation Depreciation Book Value
-

-

5,965
1 1,193

1,193

4,772
2 1,193

2,386

3,579
3 1,193

3,579

2,386
4 1,193

4,772

1,193
5 1,193

5,965

-
6 0 0

-
7 0 0

-
8 0 0

-
9 0 0

-
10 0 0

-

Fixed Asset Renovation
Cost (RM) 20,000
Economic Life
(yrs) 5
Annual Accumulated
-

-

20,000
1

4,000

4,000

16,000
2

4,000

8,000

12,000
3

4,000

12,000

8,000
4

4,000

16,000

4,000
5

4,000

20,000

-
6 0 0

-
7 0 0

-
8 0 0

-
9 0 0

-
10 0 0

-

Page 90

Fixed Asset Signboard
Cost (RM) 4,000
Annual Accumulated
-

-

4,000
1 800

800

3,200
2 800

1,600

2,400
3 800

2,400

1,600
4 800

3,200

800
5 800

4,000

-
6 0 0

-
7 0 0

-
8 0 0

-
9 0 0

-
10 0 0

-

Fixed Asset Machineries
Cost (RM) 28,880
Annual Accumulated
-

-

28,880
1 5,776

5,776

23,104
2 5,776

11,552

17,328
3 5,776

17,328

11,552
4 5,776

23,104

5,776
5 5,776

28,880

-
6 0 0

-
7 0 0

-
8 0 0

-
9 0 0

-
10 0 0

-


Page 91
9.9 Loan repayment schedule
LOAN REPAYMENT SCHEDULE
Amount 48,503
Interest Rate 5%
Duration (yrs) 10
Method Baki Tahunan
Year Principal Interest Total Payment Principal Balance

- -

48,503
1

4,850

2,425

7,275

43,653
2

4,850

2,183

7,033

38,802
3

4,850

1,940

6,790

33,952
4

4,850

1,698

6,548

29,102
5

4,850

1,455

6,305

24,252
6

4,850

1,213

6,063

19,401
7

4,850

970

5,820

14,551
8

4,850

728

5,578

9,701
9

4,850

485

5,335

4,850
10 0 0

- 4850


Page 92
9.10 Sales and purchases projection.
SALES PROJECTION
Month 1 20,000
Month 2 22,500
Month 3 24,000
Month 4 23,750
Month 5 24,000
Month 6 25,500
Month 7 26,500
Month 8 28,750
Month 9 29,000
Month 10 31,000
Month 11 31,550
Month 12 34,000
Total Year 1 320,550
ToTal Year 2 384,060
Total Year 3 441,700

PURCHASE PROJECTION
Month 1 -
Month 2 -
Month 3 3,000
Month 4 3,000
Month 5 3,000
Month 6 3,000
Month 7 3,000
Month 8 3,000
Month 9 3,000
Month 10 3,000
Month 11 3,000
Month 12 3,000
Total Year 1 30,000
ToTal Year 2 32,000
Total Year 3 34,000

ENDING STOCK OF FINISHED GOODS RM
End of Year 1

9,000
End of Year 2

8,600
End of Year 3

8,000

TERMS OF LOAN (if required)
Interest rate 5%
Loan duration 10
Interest payment method* 2
* Method: 1 = flat rate 2 = annual rest


Page 93
PAYMENTS FOR PURCHASES
In the month of purchase 40%
1 month after purchase 60%
2 months after purchase
Total 100%

COLLECTIONS FOR SALES
In the month of sale 100%
1 month after sale
2 months after sale
Total 100%

ENT300 - Final Project - Hair Salon

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ENT300 - Final Project - Hair Salon

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Muhammad Aizat bin Ishak (2007232678)

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