Face look hair & skin beauty saloon

CERTIFICATE OF APPROVAL:-

This project titled “face look” is hereby approved as a Credible study of business management carried out by Monika Sharma (7BBA/4068/08) student of BBA 5th semester in satisfactory manner to warrant its acceptance as a pre-requisite to the degree of bachelor of business administration for which it has been submitted.

SUMIT KULSHRESTHA (Faculty in management)

CERTIFICATE OF GUIDANCE:-

This is to certify that Monika Sharma (7BBA/4068/08) is a student of BBA 5th semester has made project under my guidance.

This project is bonafide work of student and has not been submitted elsewhere for the award of any other degree.

SUMIT KULSHRESTHA (Faculty in management)

I wish to express my gratitude and indebtness to our faculty member Mr. His continuous guidance..Sumit Kulshretha who acted as a guide for us. inspiration and motivation helped us in every field while making the project report. It is because of his true and sincere efforts.ACKNOWLEDGEMENT I take this opportunity to thank the “management department” of BIT jaipur for giving me this opportunity to do this project. which helped us to complete the report on time. MONIKA SHARMA (7BBA/4068/08) .

The East had different styles. Since then the beauty business has come a long way. If you do not like the way you look now you can change your look. The Greek women sported their hair differently Romans followed the lead. Now the tools have changed but the desire to look beautiful is still the same. . In those days her lily white complexion and red hair was copied by women. The hair styles have seen major change over the years. A thin layer of egg white was used to bind it together. In ancient times people used to use different things to beautify themselves. The desire to look beautiful is responsible for beauty parlors or salons. The beauty parlors use safer cosmetic products and give many more treatments for the entire body. In the ancient civilizations there was distinct difference in the hair styling of Egypt men and women. The external beauty is very important for many.Preface:- Humans have been very aware of their appearance from beginning of the civilization. In the beauty parlor your face and body gets treatment or pampering. A beauty parlor or salon is a business that deals with the beauty treatment for men and women. Since ancient times men and women are experimenting with their looks. The white powder that was used was highly poisonous white lead and the glow on the cheeks was a result of lead based rough. In the 16th century Queen Elizabeth was a female icon.

NO .INDEX:S.NO 1 2 3 4 5 6 7 8 9 PARTICULARS TITLE PAGE CERTIFICATE OF APPROVAL CERTIFICATE OF GUIDANCE ACKNOWLEDGEMENT PREFACE EXECUTIVE SUMMARY ENTREPRENEUR PLAN MARKETING PLAN FINANCIAL PLAN PAGE.

3. ideas. . To develop a sustainable start-up business. 2. Face look is salon that satisfies the unfulfilled customer needed for a low-cost salon that provides maximum flexibility and strong customer attention. We will also maintain a friendly. To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals. and creative work environment. Using this strategy. To create a service-based company whose goal is to exceed customer's expectations. Objectives The objectives for the first three years of operation include: 1. which respects diversity. New look is type of a hair salon that allows the entire family to have their hair needs satisfied in one convenient visit. contributing to increased employment of community residents. I will gain significant market share and create critical long-term relationships with clients.Executive Summary Face look is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service. and hard work. and furnishing an enjoyable atmosphere at an acceptable price/value relationship. fair. quality products.

.

When we adhere to this maxim.Mission & vision:Our Mission:Face looks mission is to provide reasonably priced. We exist to attract and maintain customers. everything else will fall into place. Our services will exceed the expectations of our customers and to supply services and products that enhance our clients' physical appearance and mental relaxation Our vision:"The Trend Begins Here!" . convenient hair styling.

.

MANICURE & PADICURE .

.

.

experience. me Monika Sharma will take some capital from my father and the rest will be on loan. and the procurement of highly professional and qualified beauticians to support the salon. To achieve our objective Face look will arrange finance from its personal capital. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth. and personal guarantees of the owners. The talented team of beauticians is what it takes to make this venture an extremely successful one. Patiently searching for two months for the perfect location. Keys to Success:The keys to success in our business are: • • Location: providing an easily accessible location for customers. and backed by the character. and will be collateralized by the assets of the company. one was finally found. Convenience: offering clients a wide range of services in one setting. Environment: providing an environment conducive to giving relaxing and professional service. As a new entrepreneur I have to work a lot to find a perfect location. and extended business hours. This loan will be paid from the cash flow from the business. has made this business one of great potential. Reputation: reputation of the owner and other "beauticians" as providing • • .Fact sheet:The timing is right for starting this new venture. The demand from the owner's clients.

and salon equipment will cost about 10 lakh which will include the interior. leasehold improvements. Face look is basically looking for setting a boys parlor as well which will help face look to expand its work in the short span of time. What will set face look apart from the competition is our commitment to providing all of these services in one convenient location and at a reasonable price which can b afforded by most of the ladies as well as college girls.5000 as this is not a posh area and in the jagathpura area I easily found a low cost place to set up my saloon. . upon commencement of operations. houses. nail. It is a area which is on construction many new factories. for ladies as well as children along with top lines of beauty products. mainly most of the ladies will b the main target. Start-up Summary After spending two months searching for a place to set up my saloon decided to start a salon from the ground up. We will provide quality hair. The salon will be located in a area known as jagathpura where there no such type of parlor. schools are under construction these days the area is on the developing stage. The start-up capital will be used for the design. furniture. and equipment of the salon. and the machines. sell a wide range of beauty services and products.Entrepreneur plan:Entrepreneur description:Face look will. Leasehold improvements will amount to approximately Rs. and skin services.

start up 60000 50000 40000 amount 30000 20000 10000 0 expenditure expenditure inv inv category assets loan Start-up Requirements Start-up Expenses Rent deposit Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets 5000 600 59.500 5000 0 5000 .

Total Assets Total Requirements Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets 60.6000 62.417 5000 60.600 62.4170 60.1000 50000 0 5000 60.6000 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment 0 61.9170 0 0 61.9170 .

4170 .Owner Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital 50000 0 0 50000 (50000) (53570) Total Capital and Liabilities Total Funding 60.6000 62.

and to create a working climate conducive to a high degree of personal development and economic satisfaction for employees. the company will consider offering an employee benefit package to include health and vacation benefits for everyone.Organisation Hair & Beauty Salon will be organized and managed in a creative and innovative fashion to generate very high levels of customer satisfaction. As the business grows. IN THE NEXT 3 T0 4 YEARS HOW I WILL EXPAND MY BUSINESS . Training classes to help improve employee product knowledge and skills will be conducted on a regular basis.

Besides gathering valuable information we will use to improve our services.Marketing plan Market description:Skill at what we do. When a client leaves our business with a face look. Creating a business plan for our hair and beauty salon is an important step in building a . and creating a pleasant environment for our customers will be important to implementing our business plan. We will Take the opportunity to thank them for their business and to ask a few questions about how they liked the service they received. e mail. Hair & Skin Care Beauty Salon face look’s marketing strategy is a simple one: satisfied clients are our best marketing tool. There will b a minimum 20 o 25 customers a day as upon the estimation. he or she is broadcasting our name and quality to the public. Most of our clients will be referrals from existing clients. such a follow up contact also sends a strong message to our customers that you care about their business and want to see them back in your salon again. Designing a marketing campaign specifically to target new customers for our saloon is an excellent way to get business. It will start getting a profit of 20 to 30% in the next few months. As we have selected an area where there is some collages like seedling and gyan vihar some hostels are also there I have targeted mainly the ladies and girls of the particular area living in hostel n homes. good customer service. or postcard. it is smart to follow up their visit with a phone call. Once a first time customer has visited our salon.

and nails done at another. Distribution:Our way of distribution is a simple one: satisfied clients are our best marketing tool. We do not intend to compete with these so called "Day Spas. I have realized. that they desire all of the services that we are proposing. from talking with their clients. Most of our clients will be referrals from existing clients. Although the focus of face look is hair services. we do wish to offer our clients the convenience of these other services in one location. more profitable business. tonk road. Our research has shown that word of mouth is the best advertising for this type of business." We wish to offer a middle ground for those clients who can't quite afford those high-end luxury salons. There are a number of salons like ours. Soft drinks will be offered to clients as they enter for service. . Televisions will be located in the waiting and hair-drying area.we will do targeted marketing campaigns that reach the right customers who are most likely to give our salon a try. malviya nagar and surrounding areas. likely Competition analysis:Face look wants to set itself apart from other beauty salons that may offer only one or two types of services.stronger. Having suryed from such types of salon. When a client leaves our business with a face look. Our business atmosphere will be a relaxing one where clients can kick back and be pampered. but they are mainly in the very high income parts of jaipur like rajapark. but they remain frustrated because they must get their hair done at one place. he or she is broadcasting our name and quality to the public.

We will also offer discounts to the new clients who have been referred. pedicures. say. waving. body waxing. and we will place a card in a box for each client she brings. reconstructing. run specials throughout the week. banglore. massage. Nails: manicures. Silk wrap and fiberglass full set Eyelash and eyebrow tinting Full skin & body care service Full-day pampering Permanent makeup Eye brow eye line and lip line Wedding make up • • • • • • • • • . relaxers. There are plans for a lottery that will offer a free trip to. business. A client would simply refer new clients to us. We will also ask clients for referrals. perms. The more they bring. weaving. Skin Care: European facials. We will. We will offer a wide range of services that include: • Hair: cuts. however. curling. shampoo. polish. colors. the more chances they have of winning the trip.Advertising:No major advertising campaigns are anticipated. sculptured nails. conditioning. and reward them with discounted or free services depending on the number of clients they bring. Products and Services:Face look is considered an upscale full-service beauty salon.

Hair cut Lip line Hair wash n conditioning massage .

We expect income to increase steadily over the next three years. Future plans include the hiring of a shampoo technician as the business expands. Note that we list no direct cost of sales here for services.one techniction. Personnel Plan The personnel plan calls for a receptionist who will greet customers and receive payments for services and products. since our service costs are more accurately tracked as regular monthly expenses for supplies in the Profit and Loss table. only for products. one beautician. Management Summary FACE LOOK will be organized and managed in a creative and innovative fashion to generate very high levels of customer satisfaction. There will be two hair stylists. its stylists and services become apparent to the general public. the company will consider offering an employee benefit package to include health and vacation benefits for everyone. and to create a working climate conducive to a high degree of personal development and economic satisfaction for employees. Training classes to help improve employee product knowledge and skills will be conducted on a regular basis. as the reputation of the salon. As the business grows.Sales Forecast The following table and charts show our projected sales. Second year revenues also anticipate the addition of one new stylist. .

00 5 24000 3000 Tech Total People 5 Total Payroll 18000 .After few months. assumptions are that there will only be three hair stylists.000 5000 4500 45. and part time nail.500 5 21000 2013 10. and massage technician until the business can build a reputation that will attract others to work there. a barber.In the first year.500 4000 3. Personnel Plan Stylist(2) Stylist(2) beautician helper Shampoo 2011 8000 4000 3000 2012 9000 4. facial.

We did not use cost of goods sold in our calculations of net service sales. but included all related recurring expenses. To assure the start-up funds lender that the owners are financially stable. The business will not have to wait long for clients to learn about it since the stylists will already have an existing client base.Financial Plan Summary of financial need:Our goal is to be a profitable business beginning in the first month. so we took a low-ball approach and estimated sales of . Important Assumptions The financials that are enclosed have a number of assumptions: Revenues will grow at an annual rate of 15%. in the operating expenses area of the profit and loss table. We are not quite sure how much revenue will be derived from products. The only direct costs in the sales forecast are for projected product sales. We anticipate this increase to stay steady throughout the following year to account for the normal flow of new clients coming into the salon. Product sales are a minimal part of our market. a personal financial statement is enclosed illustrating other sources of income that include interest and dividend income from investments. increasing 20% in November and December due to a historical jump in revenues at this time of year. Estimates for sales revenue and growth are intentionally low. such as payroll and supplies. while anticipated expenses are exaggerated to the high side to illustrate a worst case scenario.

Also in the sales projections table are services such as nails and massages. We are not quite sure how much revenue these two services will generate.00% Long-term Interest Rate 10.00% 10. General Assumptions 2010 2011 2012 Plan Month 1 2 3 Current Interest Rate 10.00% 10.10000a month.00% 10. We are certain that in time these services will be a large part of our revenue.00% 30.00% 30.Rs.00% Other 0 0 0 .00% Tax Rate 30. but to err on the conservative side. we estimate revenues from these services to be only Rs 20000 a month for the first year.00% 10.

VAT.0220 239.0220 211.4000 166. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets 166.9750 2011 2012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .4000 211.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. The business will generate more than enough cash flow to cover all of its expenses. Pro Forma Cash Flow 2010 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.9750 239.

9750 Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.9400 52.0000 12.0220 0 0 239.0000 12.2500 54. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets 2010 2011 2012 46.0000 0 0 0 . VAT.Sales of Long-term Assets New Investment Received Subtotal Cash Received 0 0 166.7300 181.8760 147.5200 128.2850 202.4000 0 0 211.5400 145.4000 99.1610 0 0 0 0 0 0 0 0 0 12.

5470 .9600 0 0 193.9400 8.8140 52.Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance 0 0 157.1610 25.7720 26.7330 0 0 214.2500 17.4600 8.

and excludes costs related to product sales.9905 . Our conservative forecast shows the salon just passing the break-even point throughout most of the first year. Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 5% 123460 12.Break-even Analysis The break-even analysis shows that Trend Setters has a good balance of fixed costs and sufficient sales strength to remain healthy. This calculation is focused on service sales. but we expect actual sales to be higher.

Projected Profit and Loss:The following table shows our very conservative profit and loss projections for the next three years. profit and loss 60000 50000 40000 amount 30000 20000 10000 0 1 2 ye ars 3 Series1 . The table includes the payments for all independently contracted stylists and technicians. as well for all regularly occurring supply expenses associated with service sales.

1940 32.2000 0 40.4000 55.2000 1.2000 0 52.7400 4.0000 69.8860 173.7400 4.0000 0 192.0000 0 6.146 0 22.4130 .2000 1.8760 26.4000 22.9160 43.1460 8.1460 Rent Utilities Insurance Payroll Taxes Independently contracted stylists Supplies Other Total Operating Expenses Profit Before Interest and Taxes 22.7400 4.0000 2010 2011 2012 Depreciation 8.0000 6.8000 8.Pro Forma Profit and Loss years Expenses Payroll Marketing/Promotion 46.0000 54.1620 151.5200 24.2000 0 22.0000 0 6.8060 10.2000 1.

2570 1.1550 11.5590 3.46% 51.5420 1.73% .5570 19.96% 41.0620 4.0660 28.3400 5.3960 3.9670 9.3920 8.1920 12.EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales 18.

29200 24.547 6000 53.Projected Balance Sheet As shown in the balance sheet. Pro Forma Balance Sheet 2010 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets 59.7330 6000 27.5000 59.1460 Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities 51.5600 26.3540 60.0620 88.4380 43.500 8.2080 70.5000 59.5410 2011 35.147 2011 2012 Accumulated Depreciation 8.9600 6000 9.2090 2012 . we expect a healthy growth in net worth.9140 2010 16.3330 52.

9170 38.9740 50000 (1.4070 28.9170 58.9400 Rs.0570 49.4400 19.0620 88.9070 70.5410 12.8170) 3.1.50.2300 0 0 12.7170 37.21.9670 21.2090 Rs.Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth 9.2570 1.9140 10.0570 0 0 9.7170 0 0 10.1550 50.9070 .9170 48.6340 50000 1.9400 60.2300 25.1470 50000 21.0620 Rs.