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ENT300 Final Project Hair Salon PDF
ENT300 Final Project Hair Salon PDF
Prepared by :
-ACD6A5-
Arte de Pelo Hair Salon
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 20
description
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 64
plan
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
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
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 people‟s need.
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Arte de Pelo Hair Salon
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.
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
3.1 Logo
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
FINANCIAL MANAGER
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Arte de Pelo Hair Salon
MARKETING MANAGER
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
This agreement will bind the partners with the following aspects:
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:
RM 100,000
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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.
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.
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 member‟s of the family upon the entire death partner share
can make the transmission of the state.
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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.
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___________________
(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
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Arte de Pelo Hair Salon
We are
here!!
Arte de Pelo
15, Jalan Telawi 4,
Bangsar,
59100 Kuala Lumpur,
Wilayah Persekutuan.
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Arte de Pelo Hair Salon
60’ ft
40’ ft
BUILDING SIZE
40‟ft length X 60‟ft width
12‟ft height
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Arte de Pelo Hair Salon
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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Market Analysis
10% Males
20%
Females
70%
Mothers with Young
Children
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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.
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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.
Major
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.
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Minor
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
Bangsar, Kuala Lumpur.
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.
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Hair Colouring
Inspiration Alan La Bell Hair Concept
25%
45%
30%
Hair Cut
Inspiration Alan La Bell Hair Concept
20%
55%
25%
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Arte de Pelo Hair Salon
Hair Rebonding
Inspiration Alan La Bell Hair Concept
30%
40%
30%
Hair Perm
Inspiration Alan La Bell Hair Concept
32% 35%
33%
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Arte de Pelo Hair Salon
Hair Cut
Arte de Pelo Inspiration Alan La Bell Hair Concept
12%
30%
15%
43%
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.
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Arte de Pelo Hair Salon
Hair Colour
Arte de Pelo Inspiration Alan La Bell Hair Concept
20% 22%
23%
35%
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.
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Arte de Pelo Hair Salon
Hair Rebonding
Arte de Pelo Inspiration Alan La Bell Hair Concept
20% 20%
25%
35%
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.
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Arte de Pelo Hair Salon
Hair Perm
Arte de Pelo Inspiration Alan La Bell Hair Concept
23% 24%
25% 28%
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.
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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 people‟s 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.
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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.
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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.
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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
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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.
6.7.4 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.
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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.
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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.
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.
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6.7.5.2 Bunting
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6.7.5.3 Flyers
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6.7.5.4 Brochures
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Signboard 4,000
Advertising 200
Bunting 500
Flyers 300
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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.
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Arte de Pelo Hair Salon
60’ ft
40’ ft
BUILDING SIZE
40‟ft length X 60‟ft width
12‟ft height
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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. That‟s state in our company
policy to provide outstanding after sale services. Then we will improve our service based on
that comments and feedback.
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From the products that we ordered when we start our business within RM40, 000 cost
budgets, for 1st to 2nd 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 3rd 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.
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Arte de Pelo Hair Salon
7.4.1 Materials
HENKEL (MALAYSIA) SDN BHD
SCHWARZKOPF PROFESIONAL DIVISION
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
BC Hair & Scalp Deep Cleansing Shampoo ( For Oily
1259257 Scalps ) 1250 ml RM161
BC Hair & Scalp Hair Growth Shampoo (For
1258007 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
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
7.4.2 Catalog
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Arte de Pelo Hair Salon
BC Hair & Scalp Deep Osis Magic Anti-Frizz Gloss Osis Upload Volume Crème
Cleansing Shampoo (For Oily Serum
Scalps)
Osis Thrill Fiber Gum Osis Buff Styling Cream Osis Rough Up Modeling
Clay
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Arte de Pelo Hair Salon
BC Time Restore Scalp Balm BC Dandruff Control BC Hair & Scalp Hair
Shampoo Growth Shampoo (For
Thinning Hair)
BC Dandruff Control BC Hair & Scalp Control BC Hair & Scalp Deep
Shampoo Fluid Cleansing Pre-Shampoo
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
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.
Wednesday Fatin, Azfar, Syapiq, Aizat, Nadia and one part time
two permanent and two part worker.
time workers.
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Arte de Pelo Hair Salon
Thursday Fatin, Azfar, Aizat, Nadia, Syapiq and one part time
two permanent and part time worker.
workers.
Saturday ALL -
Sunday ALL -
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. That‟s 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.
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Arte de Pelo Hair Salon
7.8 Location
We are
here!!
Arte de Pelo
15, Jalan Telawi 4,
Bangsar,
59100 Kuala Lumpur,
Wilayah Persekutuan.
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Arte de Pelo Hair Salon
Day Hour
Monday to Friday 10am – 10pm
Saturday 11am – 10pm
Sunday 11am – 9pm
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Arte de Pelo Hair Salon
(Form DBKL-JPL-KP-01-A1)
(Form DBKL-JPL-KP-01-B1)
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
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Arte de Pelo Hair Salon
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
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Arte de Pelo Hair Salon
Chief Executive
Officer
Mr Mohd Syapiq
Human Resouce
Financial Manager Manager
Mr Mohd Aizat Ms Nur Nadiati
Public Relation
Marketing Manager Manager
Mr Mohd Azfar Ms Nur Fatin
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Arte de Pelo Hair Salon
4. Public 1. Making sure that clients are getting the best customer
relation / service.
Operational 2. Ensure all staff is supplied with business cards.
manager 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.
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Arte de Pelo Hair Salon
List of Stationeries
No Items description quantity Price per Total price
quantity
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
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Arte de Pelo Hair Salon
Sources of Finance
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
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Arte de Pelo Hair Salon
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
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Arte de Pelo Hair Salon
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
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Arte de Pelo Hair Salon
Less: Enpenditure
Administrative Expenditure 131,502 131,502 131,502
Marketing Expenditure 29,880 29,880 29,880
Other Expenditure
Business Registration &
1,500
Licences
Insurance & Road Tax for Motor
Vehicle
Other Pre-Operations
55,500
Expenditure
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
Page 78
9.5 Pro forma balance sheet
Other Assets
Deposit
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
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
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Arte de Pelo Hair Salon
Current Ratios
40
35
30
25
Ratio
20
15
10
1 2 3
Year
Quick Ratios
40
35
30
25
Ratio
20
15
10
1 2 3
Year
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Arte de Pelo Hair Salon
Inventory Turnover
3
Times
1 2 3
Year
94,00%
93,50%
93,00%
92,50%
Percent
92,00%
91,50%
91,00%
90,50%
1 2 3
Year
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Arte de Pelo Hair Salon
25,00%
20,00%
15,00%
10,00%
5,00%
Percent
0,00%
1 2 3
-5,00%
-10,00%
-15,00%
-20,00%
-25,00%
-30,00%
Year
Return on Assets
60,00%
40,00%
20,00%
0,00%
1 2 3
-20,00%
Percent
-40,00%
-60,00%
-80,00%
-100,00%
-120,00%
-140,00%
Year
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Arte de Pelo Hair Salon
Return on Equity
100,00%
50,00%
0,00%
1 2 3
-50,00%
-100,00%
Percent
-150,00%
-200,00%
-250,00%
-300,00%
-350,00%
-400,00%
Year
Debts to Equity
250%
200%
150%
Percent
Series1
100%
50%
0%
1 2 3
Year
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Arte de Pelo Hair Salon
Debts to Assets
80%
70%
60%
50%
Percent
40%
30%
20%
10%
0%
1 2 3
Year
50
40
30
20
10
Times
1 2 3
-10
-20
-30
-40
Year
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Arte de Pelo Hair Salon
9.7 Budget
ADMINISTRATIVE BUDGET
Monthly
Particulars F.Assets Exp. Others Total
Fixed Assets
- -
- -
Working Capital
- -
- -
- -
Pre-Operations & Other Expenditure
Other Expenditure -
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Arte de Pelo Hair Salon
MARKETING BUDGET
Monthly
Particulars F.Assets Exp. Others Total
Fixed Assets
- -
- -
- -
Working Capital
- -
- -
- -
- -
- -
Pre-Operations & Other Expenditure
Other Expenditure -
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Arte de Pelo Hair Salon
OPERATIONS BUDGET
Monthly
Particulars F.Assets Exp. Others Total
Fixed Assets
-
Working Capital
Raw Materials - -
- -
- -
- -
- -
Pre-Operations & Other Expenditure
Other Expenditure -
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Arte de Pelo Hair Salon
- - 5,965
5 1,193 5,965 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
- - 20,000
5 4,000 20,000 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
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Arte de Pelo Hair Salon
- - 4,000
5 800 4,000 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
- - 28,880
5 5,776 28,880 -
6 0 0 -
7 0 0 -
8 0 0 -
9 0 0 -
10 0 0 -
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Arte de Pelo Hair Salon
- - 48,503
10 0 0 - 4850
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Arte de Pelo Hair Salon
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
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