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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. Our Mission: To supply services and products that enhances our clients' physical appearance and mental relaxation. Our Motto: "The Trend Begins Here!" The timing is right for starting this new venture. Patiently searching for six months for the perfect location, one was finally found. The demand from the owner's clients, as well as the ambitions of the owner to one day start her own salon, and the procurement of highly professional and qualified beauticians to support the salon, has made this business one of great potential. I Masaba Denis, co-owner with Isabirye John, a partner, have worked in a prestigious, upscale salon in Nairobi, Kenya for the past two years. We have created a large client following through hard work and dedication. , and our talented team of beauticians, has what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth. To achieve our objectives, AMADENPRO is seeking 15,000,000UGS in additional loan financing. This loan will be paid from the cash flow from the business, and will be collateralized by the assets of the company, and backed by the character, experience, and personal guarantees of the owners. Keys to Success The keys to success in our business are: •Location: providing an easily accessible location for customers. •Environment: providing an environment conducive to giving relaxing and professional service. •Convenience: offering clients a wide range of services in one setting, and extended business hours. •Reputation: reputation of the owner and other "beauticians" as providing superior personal service. Company Summary AMADENPRO will, upon commencement of operations, sell a wide range of beauty services and products. We will provide quality hair, nail, and skin services, along with top lines of beauty products. What will set AMADENPRO apart from the competition is our commitment to providing all of these services in one convenient location. Start-up Summary After spending several months searching for a salon to purchase, the owners decided to start a salon from the ground up. The start-up capital will be used for the design, leasehold improvements, and equipment of the salon. Leasehold improvements will amount to approximately 8,000,000, and salon
000shs Accounts payable 0shs Current borrowing 0shs Other current liabilities 0shs Current liabilities 0shs Long term liabilities 9.000.000.000shs Loss at start-up 150.000.000UGS.000UGHS Total capital and liabilities 14.000shs Long term assets 2.000.000.000.000shs Total capital 4.000shs Funding Investment Investor1 0shs Other 0shs Other 0shs Total investiment 0shs Current liabilities 200. Start-up Requirements Start up expenses Rent deposit 500.500.000shs Start up assets needed Cash balance on starting date Other current assets 1.000shs Total current assets 1.000shs Total start up expenses 500.000.000.000UGS .000shs Total assets 3.equipment will cost about 3.000shs Total requirements 4.
Company Locations and Facilities The salon will be located in a retail strip mall at Market Street. Services AMADENPRO is considered an upscale full-service beauty salon. from talking with our clients. but they remain frustrated because they must get their hair done at one place. conditioning. Competitive Comparison AMADENPRO wants to set itself apart from other beauty salons that may offer only one or two types of services. massage.540 square feet. sculptured nails. Kampala. •Skin Care: European facials. Soft drinks will be offered to clients as they enter for service. There are a number of salons like ours. body waxing. and nails done at another. The salon will utilize 1. weaving. Our business atmosphere will be a relaxing one where clients can kick back and be pampered. that they desire all of the services that we are proposing. with easy access from all parts of town. It is a high profile area. we do wish to offer our clients the convenience of these other services in one location. shampoo. relaxers. curling. We realized. polish. . reconstructing. but they are mainly in the very high income parts of Kampala and surrounding areas. The location is strategically situated on one of the busiest streets in Kampala. pedicures. perms. Having come from such a salon. We will offer a wide range of services that include: •Hair: cuts. Although the focus of AMADENPRO is hair services. colors. •Nails: manicures. Televisions will be located in the waiting and hairdrying area. and waving. We do not intend to compete with these so called "MAZZI MAWANVU." We wish to offer a middle ground for those clients who can't quite afford those high-end luxury salons.
There are plans for a lottery that will offer a free trip to. he or she is broadcasting our name and quality to the public. When a client leaves our business with a new look. We will. We will also offer discounts to the new clients who have been referred. DUBAI. No major advertising campaigns are anticipated.Marketing Strategy Our marketing strategy is a simple one: satisfied clients are our best marketing tool. Most of our clients will be referrals from existing clients. say. . and we will place a card in a box for each client he or she brings. We will also ask clients for referrals. run specials throughout the week. however. The more they bring the more chances they have of winning the trip. Our research has shown that word of mouth is the best advertising for this type of business. and reward them with discounted or free services depending on the number of clients they bring. A client would simply refer new clients to us.
I have quickly developed the trade skills that have led to my success. and will be paid a sliding commission scale based on the amount of revenue created. and a massage therapist. Jr. This career is my life -my calling.000shs 90.000shs 6. the company will consider offering an employee benefit package to include health and vacation benefits for everyone. and part time nail.000. facial. He has worked as a business consultant for Office Organizers. and massage technician until the business can build a reputation that will attract others to work there. Personnel Plan The personnel plan calls for a receptionist who will greet customers and receive payments for services and products. Future plans include the hiring of a shampoo technician as the business expands..000shs 100. and have the drive.000. one nail technician. Management Team I Masaba Denis: Owner.000shs 0 2012 200. one barber.000shs 5. Training classes to help improve employee product knowledge and skills will be conducted on a regular basis. a barber. and to create a working climate conducive to a high degree of personal development and economic satisfaction for employees. one facialist. Isabirye Ian. I love dealing with people.000shs 80. A graduate of Nakawa Beauty College in 1994. Ian has a Bachelor's degree in Finance from Makerere University. He has extensive experience managing people and businesses.000shs 0 2011 170. There will be five hair stylists. ambition. assumptions are that there will only be three hair stylists. has been a beautician for two years.Management Summary AMADENPRO will be organized and managed in a creative and innovative fashion to generate very high levels of customer satisfaction. Inc.000shs 7. As the business grows. employee receptionist Shampoo tech others Total people 2010 150.000. In the first year. and he is the owner of Guardian Financial Group and a financial services company with over 120. and discipline to manage the business and its employees.: Owner.000shs 0 . Everyone but the receptionist will be contract workers.
500. Product sales are a minimal part of our market.000UGS a month. .000. We did not use cost of goods sold in our calculations of net sales because most sales are coming from services. We are certain that in time these services will be a large part of our revenue.000UGS). Estimates for sales revenue and growth are intentionally low.000. we estimate revenues from these services to be only 3. This figure is included under the title "Other" on the profit and loss table. but to err on the conservative side. To assure the start-up funds lender that the owners are financially stable.000UGS). We anticipate this increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. a personal financial statement is enclosed illustrating other sources of income that include interest and dividend income from investments (4. while anticipated expenses are exaggerated to the high side to illustrate a worst case scenario.000UGS a month for the first year. increasing 20% in November and December due to a historical jump in revenues at this time of year. and commission income ($15. The business will not have to wait long for clients to learn about it since the stylists will already have an existing client base. however. We are not quite sure how much revenue these two services will generate.000UGS).Financial Plan Our goal is to be a profitable business beginning in the first month. Also under "Other" in the sales projections table are services such as nails and massages. in the operating expenses area of the profit and loss table. We included all costs.000. The financials that are enclosed have a number of assumptions: Revenues will grow at an annual rate of 15%.000. We are not quite sure how much revenue will be derived from products so we took a low ball approach and estimated sales of 2. salary income ($40.
000UGS a month.000shs 400.000shs 0 shs 200.Break-even Analysis The break-even analysis shows that AMADENPRO has a good balance of fixed costs and sufficient sales strength to remain healthy. Products sales were not included in this figure. and fixed costs of 5. Break-even Analysis 400.000shs 0shs 200.000shs 1000. Our break-even point is only 126 clients a month.000shs 200.000shs 400.691UGS.000shs 600.000shs .000shs 800. but it does include an owner withdrawal of 200. This was derived by using average revenue of 45UGS per client.
000UGS 200.000UGS 4.000UGS 200.000UGS 0UGS 120. 2010 2011 2012 Sales Direct cost of sales Production payroll Other 20.000UGS 0UGS 0UGS 0UGS Total cost of sales Gross margin Gross margin in % Expenses Payroll Sales and marketing and other expenses Depreciation Leased equipment Utilities Insurance Rent Other Payroll taxes 0UGS 12.000UGS 0UGS 150.000UGS 1500.000.000UGS 0UGS 150. Second year revenues also anticipate the addition of one new stylist.000UGS 900.000UGS 90% .000.000UGS 0UGS 19.000UGS 20.000UGS 800. Projected Cash Flow We expect to manage cash flow over the next three years simply by the growth of the cash flow of the business.000UGS 0UGS 150.000.000.000UGS 150.000UGS 800.000UGS 150. its stylists and services become apparent to the general public.000UGS 1300.000UGS 100 100 100 11.000UGS 0UGS 0UGS 0UGS 40.000UGS 0UGS 220.000UGS at the end of the first year of business.000UGS 0UGS 130.000UGS 0UGS 140.000UGS 1.000.000UGS 0UGS 215.7% 100.000UGS 200.000UGS 80. The business will generate more than enough cash flow to cover all of its expenses.000UGS 1200.000UGS 0UGS 17.800.000UGS 800.Projected Profit and Loss We expect income to hit 272.000.000. It should increase to more than 462.000UGS 0UGS 0UGS 0UGS 30.000.000UGS 1000.000UGS by the third year.340.000UGS Total operating expenses Profit before interest and taxes Interest expenses Taxes incurred Net profit Net profit/ sales 0UGS 200.7% 90.000UGS 13.000UGS 150. as the reputation of the salon.000.000UGS 800.
0000UGS 2.000UGS 12.Projected Balance Sheet As shown in the balance sheet.500.200.000.000UGS 1.000.100.000UGS 200.000UGS 2.500.000UGS 2.000UGS 2.000UGS 1.000UGHS 100.000UGS 310.000UGS 5.000UGS 3.000UGHS 1.500. BOOKS .5OO.000UGS 900.000.100.COM ANSWERS.000.000.500.000UGS 6.000.65.000UGS 800.500.000UGS 3.0000UGS 150.000UGS 0UGS OUGS 2.COM .000.000.000UGS 16.000.500. we expect a healthy growth in net worth.000.000UGS 2.000UGS REFERENCES.000UGHS 900.000UGS 2010 1.000UGS 700.000.200.000UGS 21.000UGS OUGS 1.000UGS 14.000.000.000UGS 3.000UGS OUGS 2.000UGS 18.000UGS 0 UGS 0 UGS 210.000UGS 230.000.000UGS 2011 OUGS 2012 2.000UGS 300.500.000UGS OUGS OUGS OUGS OUGS 320.00UGS 3.000.000UGS 19.000.000UGS 2. from approximately Pro Forma Balance Sheet Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Net Worth 200.000UGS OUGS 800.000UGS 2.OOOUGS 2.FINANICIAL ACCOUNTING INTERNET COMPUTER.
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