BUSINESS CC

ACCEPTED BUSINESS PLAN BY TEF

Abstract
A growth oriented organization, poised to change the way beauty and wellness
service is delivered.
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Executive Summary:

The Nigerian beauty industry has seen a tremendous growth in recent years, with a fast-
growing middle class, young people, who are more westernized through media exposure,
have contributed to the rise in demand for beauty and personal care products.

Women and some men have been wearing cosmetics for centuries; how and why they wear
makeup has undergone remarkable changes. Ladies throughout history have always
challenged the norm when in search of idle cosmetics, and this has played a unique role in
its evolution. These changes in makeup trends while fascinating, have paved the way for
innovation which has supported the growth of the cosmetics industry in Nigeria. In essence,
makeup artistry, as a profession, has advanced dramatically, with some graduates relying
on makeup businesses as a full time means of employment.

CC Ltd, having carefully observed the growth in this industry, has discovered that the
growing middle class that make up the major customers of this industry are becoming
busier by the day; majorly because a lot of them have a busy work life.

Enter CC is an on-demand professional beauty service, it connects the busy woman with the
professional stylist. Nigeria has a youth population of 95 million with over 60% currently
unemployed or underemployed. A lot of young graduates know how to make hair and apply
make-up professionally; but still don't have the wherewithal to set up a standard salon, our
platform will give them a leverage, more so that the government is encouraging
entrepreneurship among its teeming young population.

The nation’s e-commerce market is steadily gaining popularity, with the value of the
country’s online payments rising exponentially from $314 million in 2010 to $488 million in
2012, according to data from the Nigerian Inter Bank Settlement System (NIBBS). Local
analyst however estimate that the total value of online payments hit $630 million as at the
end of 2013, in view of rising sales at the main online portals. Nigeria’s success in building
digitally-enabled services and business lays the foundation for easily scalable advanced
services such as e-commerce, marketplace and social media, market observers say.

Management Team

AA MSc, MCTS: Co-Founder

AA has a master’s degree in Communication Physics at the Federal University of Technology

Akure and a Bachelor’s from the same university. He has used his problem solving skills in
running the daily operations of the company. He in addition possess Microsoft Certifications
and has over 7 years’ experience in the business world, before starting CC, Adewale has
worked with various companies, he has experience in the supply and installation of different
scientific research equipment, and procurement coordination. He has great experience with
several operating systems, network administration and support. His major competencies lies
in the use of accounting software (Peachtree accounting) and data analysis software (excel,
spss etc.).

BB: Co-Founder/COO

BB is an Entrepreneur at heart and has worked in various capacity within the startup
community in Denmark for the past 11 years. He completed his MSc. in Global Studies and
has used his analytical, organizational & strategic skills in various roles. He has been
responsible for planning & scheduling meetings between African & Danish companies as well

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as coordinated seminars & conferences. He has led delegations from African countries such
as Nigeria, Ivory Coast and Ghana to Danish business Environments. He currently works as
a business developer responsible for the EMEA region. Samuel’s major strength are; project
planning, procurement coordination, investor’s relations, CRM, liaising between partners,
marketing, social media management e.t.c.

CC MSc: Director

CC is one distinct person, he oversees the smooth running of the Technical/Support

department. His strong exposure to VSAT, Telecommunications and Security Equipment
systems has helped in re-strategizing the company. He is also an expert in media digital
production (3d Animation, Motion graphics and visual effects), and Photoshop.

He is also very handy in the use of accounting software (Peachtree accounting). He has had
over 7 years’ experience in the IT field and a Masters in Physics from the Federal University
of Technology Akure.

DD BSc: Director

One of the company Director is a Russia trained Automation and Software engineer. He is
currently shuttling between the Philippines and USA whilst undergoing intense training on
Software Development to further enhance our pool of talents. Mr DD has been resourceful in
providing guidance on system configuration and data analysis. He is a graduate from the
people`s friendship University Of Russia and currently enrolled for his Msc program. Mr DD
is an experienced software and application developer, with competencies in languages like;
PHP, Python, Javascript, Matlab, Java e.t.c.

Key to Success

The keys to our success will undoubtedly be:

1. The development of an easy to navigate website, seamless and easy to use at one
glance with a great reference to service personalization. The web portal would also
provide customers with a menu to register their basic information; it will eliminate
account creation but allow users to register with their social media accounts.
2. The second key is the development of an easy to use mobile application software for
the customers. So they can make their orders on the go. The mobile application will
give our clients- Access to professional make-up artist -Access to hundreds of
inspirational styles. -Competitive Prices -Timely Service
3. Focused and well-defined long range goals for longevity, to allow flexibility and
growth.
4. Very low internal development costs at startup.
5. Partnerships with major stakeholder (manufacturers of beauty products) and
professional stylist.

Market Environment

Ecommerce continue to accelerate and the funds expended on online purchase in Nigeria
continue to be on the rise. Nigeria has the largest economy in Africa with a population
estimated at 173.6 million and a rise in spending on beauty, aesthetics and wellness. As an
emerging market, growing sales in the beauty and personal care sector were valued at

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$595.8m in 2011, up from $439.8m in 2006. Economists predict that by 2016, Nigeria’s
young yet increasingly sophisticated population will drive industry sales to $620.2m.

Financial Forecasts

CC Market Place Financial projection is very conservative, prudent and yet quite promising.
We have carefully underestimated sales whilst taking into cognizance the multiplier effect of
growth with increasing cost potential. We believe our market place would quickly gather
momentum and start generating sales in its first year in business. Growth is expected to be
rapid after the first year of operations and to achieve a revenue base of $56,160.00 by the
end of year three. Thereafter, growth is expected to be around 200% per annum.

Estimated sales during the first year of operations are $27,000.00 (starting in 2017), rising
to $35,100.00 and $56,160.00 in the second and third year, respectively. Positive cash flow
is expected in the latter part of the year. Based on conservative financial projections, the
company will become profitable from year 2, believing we can have 600 transactions
monthly.

Conclusion

The business opportunity presented here is to capitalize on a long-recognized market need

that has not been suitably addressed by the current players in the market. We tend to
redefine work, as on demand is now game changer in the service industry. People can
decide on when they want to work, and who they want to work for.

With Nigeria's internet subscriber base rising to 67.4 million in 2014 and Nigeria's beauty
and personal care industry estimated to reach 2.5 billion euros in 2017. We believe this is
huge market we can tap into, getting just 600 transactions monthly on our platform in the
second year; the company is expected to generate considerable income.

In summary, using innovative technology and strategy with an experienced and seasoned
management team, this business plan identifies an opportunity to enter a marketplace that
has enormous potential for revenue and profit growth.

Business Plan Outline

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1.0 Introduction……………………………………………………..7
1.1 Overview
1.2 Vision
1.3 Mission
1.4 Objectives
1.5 Value Proposition
2.0 The Product/Service
2.1 Business to Customer (B2C)
2.2 Business to Business (B2B)
2.3 Buying Process
2.4 Selling Process
2.5 Salons and Spas Listing
3.0 Industry and Market Analysis
4.0 Competition
4.1 Direct Competition
4.2 Indirect Competition
5.0 SWOT Analysis
5.1 Strength
5.2 Weakness
5.3 Opportunities
5.4 Threats
6.0 Operations Plan
7.0 Marketing, Promotions and Sales
7.1 Product strategy
7.2 Pricing strategy
7.3 Distribution strategy
7.4 Process strategy
7.5 Promotion strategy
7.6 Referral strategy
7.7 Retention strategy
7.8 Evaluation of Performance and Control Progress
8.0 Management
9.0 Financial Plan
9.1 Cost Estimations & Projections
9.2 Revenue Projections
10.0 Appendices

1.0 INTRODUCTION

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1.1. Overview:
CC Digital Ltd is a mobile market place for beauty and make-up services. We plan on
bringing beauty professionals to the doorsteps of women so they can balance their
careers and families without affecting their social engagements. We are in the
process of creating the best Beauty on demand platform in Nigeria.
We are presently at the developmental stage of our web and mobile applications. The
service (app) is primarily targeted towards women in Nigeria, so they can access
salon quality beauty service, delivered to them anytime and anywhere at the comfort
of their homes, delivered by professionals at an affordable price. We will focus
initially on providing;
➢ A scheduled freelancer in home beauty service for customers
➢ As it grows it will also be an aggregator for salons and spas, by providing a
SAAS (Software as a Service) based end to end service that helps improve
their salon. People can schedule their salon visits, instead of just getting there
and have to wait in line.

1.2. Vision:
By ceaselessly providing excellent and efficient service we aim to:
➢ be the no.1 indigenous beauty on demand platform
➢ Help women balance their career and family, without affecting their social
engagement.
➢ Help customers discover salons and spas, and help these salons and spas
improve their business offerings.

1.3. Mission:
Our Mission is to provide excellent value-added services, create an unforgettable and
compelling experience for customers with undisputable results.

1.4. Objectives:
➢ The aim is to develop a web and mobile application platform, where people can order
for services of beauty professionals.
➢ To deliver salon quality services anytime and anywhere.
➢ To deliver talent and convenience at an affordable price.
➢ To provide an opportunity for talented individuals who can’t afford to pay for stalls
and shops to render their services to customers on site.
➢ To provide a SAAS end to end salon management software, that helps salons and
spas grow their business

1.5. Core Value:

➢ Integrity
➢ Excellence
➢ Reliability
➢ Committed and Continuous Improvement
➢ Enthusiasm

1.6. Value Proposition

The values we will be delivering for customers are;
➢ Provision of professional beauty service on demand and on location.
➢ Giving them access to different styles and inspirations
➢ They get to choose the stylist they want.
➢ Getting salon quality price in the comfort of their homes

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➢ Customers, have a platform where they get on-the-go search, discover, book, pay
and rate platform for salons and spas
➢ For beauty salons and Spa, they have SAAS based end to end salon management
software that grows their business by covering everything from increased traffic,
CRM, ERP, EPOS, Performance Management, Booking Management to Social Media

2.0 THE PRODUCT/SERVICE

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The product/service is a mobile platform that will simplify the way beauty services are
requested. It is going to be a community-based, online platform that facilitates booking of
beauty service. Customers can search for service around their current location or the
location of their choice; see photos of work done by stylist, bio and reviews before booking
for the service of that stylist.

Our business model is an on-demand/schedule service, they can have their services at an
on demand or schedule process, it all depends on the clients preference. The service (app)
is primarily targeted towards women in Nigeria, so they can access salon quality beauty
service, delivered to them anytime and anywhere at the comfort of their homes, and
delivered by professionals at an affordable price. With the rate the Nigerian middle class is
growing, a lot of women are working and are getting busier as times goes on, there is
virtually not enough time during the day to access good quality beauty treatments, and our
goal is to take it to them through partnerships with professionals. We believe the service is
highly scalable and can be rolled out in all the cities in Nigeria, as well as other African
countries. Our target audience is the young, working and educated woman, who is a major
part of the growing middle class in Nigeria. They would have;-Access to professional make-
up artist -Access to hundreds of inspirational styles. -Competitive Prices -Timely Service.

On CC, women can see a photo, bio and reviews of any stylist before booking, creating a
personal relationship that contrasts with the purely transactional nature of the few beauty
mobile apps presently in Nigeria. Beauty on demand platforms are few in Nigeria, but on our
platform the stylist still remain as business men building their own business.

2.1 Business to Customers (B2C)

➢ Service is rendered to the end users that request for the service by the stylist
she chooses.
➢ Customers see bio, photo, price, reviews and ratings before placing an order
➢ Search and discover salons and spas around them, make a booking, visit the
salon and enjoy the service.
➢ Pay securely through the app
➢ Gets insurance so the freelancer does not get paid except the customer is
satisfied with the service.

2.2 Business to Business (B2B)

➢ Professional stylist list their services, their price, bio and pictures of previous
work done
➢ Salons and spas get a platform to manage their business online, they can
accept bookings on their mobile devices, offer competitive pricings and
discount in real time.
➢ They get access to a large market, by showing their services to potential
customers.

2.3 Buying process:

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Customer
Customer Freelancer
selects Service is
selects travels to
freelancer and performed and
service, date, customer’s
payment is the customer
and location location of
made on the writes review
from phone choosing
app.

➢ Customers choose their required service, date and location from their
device.
➢ They make request for appointment and they would be requested to
register their information and address where service would be rendered.
➢ Once registration is completed, users can pay via their cards.
➢ Stylist will receive information directly and they must act by accepting the
request, then they have to travel to the customer’s location to deliver the
service.
➢ Once the service is rendered, and the customer is satisfied, the customer
writes a review for the stylist.
➢ The stylist gets paid for the service.

2.4 Selling Process:

Enlist
their Review,R
Manage
Stylist services atings
Their
Register and And
Profile
prices feedback

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➢ Freelancers/Stylist registers on the website as a seller.

➢ Upload pictures of their works, prices and products they use.
➢ Manage their profile
➢ Wait to be verified, before their profile is displayed on the platform
➢ Rating and Reviews from customers and feedback to further improve on
their services.
➢ High performing stylist gets to be featured on the home page.

2.5 Salons and Spas Listing

Enlist their
services
Review,
Salons and show Manage
pictures of Ratings
and Spas Their
their And
Register environmen Profile
feedback
t

➢ Salons and spas register

➢ They get a platform where they can upload pictures of their environment.
➢ Get access to different SAAS (Software as a Service) to manage their
business
➢ They manage their profile
➢ Rating and Reviews from customers and feedback to further improve on
their services.
➢ Salons and spas can be followed, and high performing salons gets to be
featured on the home page.

2.6 Revenue Model and Generation.

Revenue generation will be from multiple sources, but we will be introducing them
gradually.

1 Commission fee: Stylist will be charged a commission on the services that they
offer to clients. This will be effective from day one that we start. A 20% commission
charge will be deducted from their fees.
2 Feature Fee: Stylist will pay a certain amount monthly to be featured on the sites
home page; this makes the customer see them first.
3 Software as a Service for Salons and Spas: This is targeted as our major source
of income in future, as there will be different bouquet available for these salons and
spas.
4 Subscription fee: We will start a subscription model after 2 years, this will be in
partnership with major brands, customers pay a certain amount monthly, cheaper
than when they pay every time.

3.0 Industry and Market Analysis

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The Nigerian beauty industry has seen a tremendous growth in recent years, with a fast-
growing middle class, young people, who are more westernized through media exposure,
have contributed to the rise in demand for beauty and personal care products.

Women and some men have been wearing cosmetics for centuries; how and why they wear
makeup has undergone remarkable changes. Ladies throughout history have always
challenged the norm when in search of idle cosmetics, and this has played a unique role in
its evolution. These changes in makeup trends while fascinating, have paved the way for
innovation which has supported the growth of the cosmetics industry in Nigeria. In essence,
makeup artistry, as a profession, has advanced dramatically, with some graduates relying
on makeup businesses as a full time means of employment.

Nigeria has a female population of 86. 9 million, 60 percent of whom are active make-up
users, who spend an average of N10,000 (ten thousand naira) a year. With a €206bn GDP
in 2012 and an 8% annual growth rate over the period 2010-2017, Nigeria is among the
fastest growing markets in Africa. The IMF anticipates sub-Saharan Africa's growth in 2010-
2015 to be in the middle of the BRIC countries - faster than Brazil and Russia (and the
potential is huge). The beauty and personal care sales were estimated to be worth €1,57Bn
in 2012, up by 12% over 2011, and are estimated to reach €2,5Bn in 2017 according to
Euro-monitor. With such estimated sales, Nigeria is considered as the African rising star for
the beauty market.
According to Euro-monitor the Nigerian economy performed poorly in 2015 due to falling
global energy prices, which negatively impacted government oil revenues. Despite the
relatively poor economic conditions in the country in 2015, beauty and personal care in
Nigeria continued to register positive growth in 2015. Growth was driven primarily by rising
urbanization, growth among the young population and higher numbers of women in the
formal workforce. There is greater interest among young, urban and female consumers for
value-added products in a range of categories, leading to a lot of them appreciating services
that will make their lives easier.
Based on publicly available survey data, the average rate of online purchases in Nigeria and
the Global world has continued to increase. Nigeria’s internet subscriber base rose from
48.2 million in June 2013 to 67.4 million in June 2014.This represents a density of 40
percent, placing the country above the African average of around 16 percent, as estimated
by McKinsey. In view of this, Nigeria is witnessing a deluge of digitally-enabled businesses,
offering innovative services, and seeking fresh opportunities in a market with the largest
mobile penetration rate in the continent (129 million). There has been an unprecedented
growth in internet penetration, largely driven by strong mobile penetration. There is a raft
of internet enabled businesses providing locally relevant solutions. The different customer
groups our service is targeted towards are stated below.
1. Our first line of customer will be the young Nigerian woman, who is a major part of
the growing middle class. Nigeria’s booming millennia population (20-35) most of
whom are active internet users, use the internet to discover new products and
services. A great number of them work in the city, which spend an average of 8-12
hours at work Mondays-Fridays. More women, especially in the middle class, now
have more spending power. Higher education is allowing many middle class women
to pursue promising careers (like men) in the workplace. As a result, more women
now have the extra income that gives them the spending power to ‘invest’ in the
latest fashion trends – and a significant chunk of this spending goes to beauty and
personal care products. According to consumer barometer, a lot of them spend their
time online, they want choices, and are not afraid to purchase what they want
online.

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2. Our other line of customers is the salons and spas. The beauty industry though huge
is not well organized. The saloon business is definitely a vibrant business, according
to our research, women spend between 2-6 hours at the salon, and a sizeable
amount of them will prefer to have booked ahead instead of just going to wait in line
when they get there. There are thousands of salons and spas in Nigeria; we will be
helping them achieve a lot with our platform.

4.0 Competition

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Based on our research both online and offline, the company foresees two types of
competition for the services we offer:

1. Direct
2. Indirect

These types of competitors are discussed in the following sections.

4.1 Direct Competitors

Based on the current research and conditions, we have found out that presently we have 3
companies working in this sector; they are Charmeapp, beaceapp, naijanaturals. They are
all new companies as this model is relatively new in Nigeria. We believe they are major
trade competitor, the major difference between our company and theirs is that, they are not
operating as a marketplace, on our platform women can see a photo, bio and reviews of any
stylist before booking, creating a personal relationship that contrasts with the purely
transactional nature of the few beauty mobile apps presently in Nigeria. Beauty on demand
platforms are few in Nigeria, but on our platform the stylist still remain as business men
building their own business.
Below is a comparative analysis of the features of our website with that of our competitors.

OFFERINGS US CHARMEAPP BEACEAPP NAIJANATURALS

Registration for Stylist Yes Yes No Yes

Profile of Stylist Yes No No No

Photos of work done Yes Yes No No

Reviews for Stylist Yes No No No

Featured Stylist Yes No No No

Ability to choose Yes No No No

according to price

Aggregator for Salons Yes No No Yes

SAAS end to end service Yes No No No

for salons

4.2 Indirect Competitors

Our indirect competitors are the traditional salons and spas. They have been offering this
service for years and they have their clientele. For us to eat into their market share, we
need to provide those services as they do in the salons. In the long run, we see them as
part of customers, because we would be giving them a platform to reach their customers.
To beat our competitors we have to offer what is currently unavailable in the market and
use that to leverage on our service offerings. We would continue to gather data and grow
our merchant base by employing marketing executives to enable us meet up with our
competitors.

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To be above our competition we would be ensuring that all users on the website have
adequate value for their money with every purchase they make. There would be constant
deals on variety of services, discounts availability and price cut during major events.

5.0 SWOT Analysis

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Based on our present analysis, below is our SWOT analysis, while we know it needs to be
reviewed as the market trends changes;
5.1 Strengths
➢ Our prices will be competitive.
➢ Access to a wide range of professional make-up artist
➢ Access to hundreds of inspirational styles
➢ We are creating a personalized service
➢ Being an aggregator for brick and mortar salons too
➢ Timely Service
➢ We are able to respond very quickly as we have no red tape, and no need for higher
management approval.
➢ We will be able to offer good customer relationship since we are starting small.
➢ We can change direction quickly if we find that our marketing is not working.
➢ We have low overheads, so we can offer good value to customers.

5.2 Weakness

➢ Our company has little market presence or reputation.

➢ The market not well regulated, so it will be a huge task get a foot hold there.
➢ We have a small staff, with a shallow skills base in many areas.
➢ We are vulnerable to vital staff being sick, and leaving.
➢ Our cash flow will be unreliable in the early stages.

5.3 Opportunities

➢ Market is very huge

➢ Current players in the market have not really taken advantage of the market
➢ Main sector of the market not tapped into yet.
➢ The government is encouraging entrepreneurship amongst its teeming youth.
➢ The business sector is expanding, with many young people getting the requisite skills
needed for this industry
➢ Our competitors may be slow to adopt new technologies.

5.4 Threats

➢ Present economic conditions in the country are a major threat, as we see that
people’s buying power is reducing.
➢ A major threat id also, convincing a vast majority of women to use their debit cards
for online transactions.
➢ Competition building up

Strength Weaknesses

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Our prices will be competitive. Market not well regulated

Access to a wide range of professional make- Our company has little market presence or
up artist reputation.
Access to hundreds of inspirational styles We have a small staff, with a shallow skills
We will be creating a personalized service base in many areas.
Timely Service We are vulnerable to vital staff being sick,
We are able to respond very quickly as we and leaving.
have no red tape, and no need for higher Our cash flow will be unreliable in the early
management approval. stages.
We will be able to offer good customer
relationship since we are starting small.
We can change direction quickly if we find
that our marketing is not working.
We have low overheads, so we can offer
good value to customers.

Opportunities Threats
Market is very huge Present economic conditions in the country
Current players in the market have not really are a major threat, as we see that people’s
taken advantage of the market buying power is reducing.
Main sector of the market not tapped into A major threat is also, convincing a vast
yet. majority of women to use their debit cards
The government is encouraging for online transactions.
entrepreneurship amongst its teeming Competition building up
youth.
The business sector is expanding, with many
young people getting the requisite skills
needed for this industry
Our competitors may be slow to adopt new
technologies.

We would be focusing on our strength, our competitive pricing and access to various
stylists; we believe will be a unique selling point for us. For our staff, we will be outsourcing
some of the activities we can handle for now, until we can employ people to do that for us.
Our aim is to do things one at a time; we won’t be spreading ourselves thin from day one.
The major threats in the industry is getting people to use their cards online, based on
research we have found out that, Nigerians are becoming more comfortable using their
cards online, as long as they know they are protected and they will get their money back if
they aren’t satisfied with the service

6.0 Operations Plan

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The work we have outlined by two major entities – our management team and the stylist
registered on our platforms. The stylists will be our major strategic partners, but we will
still be having partnerships with other organizations.

Management team

Presently those of us on the management team possess the requisite skills to see that the
company performs well in the market place. Everyone in the management team will conduct
the day-to-day operations including but not limited to maintain communications with our
partners, to see that we deliver to the customer’s expectation. One of the co-founder is vast
when it comes to marketing, and so he will be in charge of client communication, while we
will make sure the platform has 100% uptime so our customers can be confident using it.

We will be working hand in hand with our stylist, making sure they comply with their
appointments, and they get there on time. We will also make sure we do proper marketing
and advertisement, so we can get people on board, we would be working with the various
government agencies that regulates these services.

The management team will be in charge of attending promptly to customer complaints. We

would be running a call center platform (phone, email and in-site chat) to help people
address the issue they encounter on the platform.

The co-founders will be expected to come up with strategic plans of moving the company
forward from time to time.

Strategic Alliances

It is anticipated that every partner we will be working with will have to align with the
mission, goals and strategies of the company.
Stylist and Salons
Our major partners will be the professional stylists. They will be required to deliver the
service as agreed upon, we would be vetting every professional on our platform; they will
be verified by running an Identity Check, Address Confirmation, Experience /Job Skills and
Trustworthiness. We would also conduct reference checks and offer a little in house training
for the stylist as we on board them to the platform.
Every payment on our platform will be cashless, the customer is expected to pay as soon as
they make their orders, and the customer is protected as well as the stylist. The stylist will
be trained to be courteous and professional when delivering their services.
Customers are expected to leave reviews for stylist after service is delivered, review
becomes visible immediately on stylist profile. Stylist will get a notification immediately
client request for their service, we will be monitoring stylist as they go deliver the service.
We will be having a chat add-on on the website so client and stylist can chat, the chat will
be monitored.
Our partnerships with salons will see that they accept only people they can accommodate
without delaying their agreed time. We will sanction any erring party accordingly, either the
salons or stylist.

Others

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Other possible strategic alliance companies include VISA, MasterCard, Verve cards, and our
bankers. Credit cards are a preferred way of payment for online purchases. Since tens of
billions of naira are now spent online. Another strategic alliance will be with insurance
companies, we found out a lot of people in Nigeria do not feel comfortable paying ahead
because of most sites return policies, we will let our clients know they can get their
payment back if they are not satisfied with the service being offered.
We would be working in association with major brands later in the future, beauty training
schools, and with the brick and mortar stores too.

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7.0 Marketing Plan

With the high potential in this market we would be leveraging on segmenting the class of
customer we would be going after. We target a niche category of customers with specific
needs; the needs of the market which is yet to be attended to by the current players in this
market.

7.1 Product strategy: On our platform women can see a photo, bio and reviews of any
stylist before booking, creating a personal relationship that contrasts with the purely
transactional nature of many mobile apps. We are giving them access to a wide range of
stylist and a wide range of different styles. This is our unique selling point; we intend to give
the customer a wide range of choice, customers have product preference and so we are
giving them this option too. The stylist will be vetted and found to be very good, we will be
partnering with training schools, to get their trainees.

7.2 Pricing strategy: Competitive Prices; our services will be delivered at salon price, even
though its home service. The client gets to choose based on the prices displayed on the
stylist’s bio; clients can sort by price, by style and location. We are expecting that clients
get to choose what they want, with the price and the type of job being offered by the stylist.
Our major competitors presently just have fixed prices for their products.

7.3 Distribution strategy: Customers get to order for the service online, while the stylist
goes to client’s location to deliver the service. Payment is made to confirm bookings and it
is made online, we will have an insurance policy that protects the rights of customers and
stylists. Stylist only gets paid after service is delivered and the client is satisfied.

7.4 Process Strategy:

• Clients book for services online; by choosing the stylist they want, time and date.
• Stylist is contacted immediately to confirm availability for the service.
• If stylist confirms availability
• Clients pay online to confirm their booking.
• Stylist gets a message telling them to go deliver the service at the time chosen.

7.5 Promotion strategy

Online marketing: Our major marketing strategy will be through social media platforms,
Facebook, Instagram, Twitter and Blackberry messenger. A vast majority of our targeted
customers use these online platforms daily, a lot of stylists are already using these
platforms to reach clients, but their reach is not wide. We will be utilizing paid
advertisement on these social media platforms.

We have presently set up our social media platform, and we have started creating a
community. We have found out that a community on social media, where people feel they
belong, helps a business reach out to their customers. We intend to grow organically, so
that we spend less on acquiring new customers.

We would also be going after inorganic growth by working a great deal of advertisement
through google Ads, where our webpage would be available everywhere when people
connect to the internet.

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7.6 Referral Strategy: So that we can meet our target of 1,000 transactions monthly, we
will tell clients to refer new people to our platform, and they get a free service next time
they request for our service.

7.7 Retention Strategy: We would have a blog that discuss beauty tips, so our clients will
receive a weekly newsletter so they can visit our blog. We will also make sure, our stylist
provide very good services so our customers are satisfied. We know it cost much to get new
customers than retain existing customers; we will continually conduct research to know the
latest market trends, so we can keep our customers satisfied and be their number one
source for on-demand beauty platform. There is plan to introduce a subscription model later
in the future, where our customers pay a certain amount monthly, and they get their
preferred service offered to them exclusively when they want it.

7.8 Evaluation of Performance and Control Progress: Progress will be checked from
time to time, there will be a weekly briefing session to look at progress made so far,
challenges encountered on the field and what to do so we can meet up with our target.

Tactic/Activity By who Department By Planned Budget (Naira)

date
Advertise on all social media Wale Marketing 10/12/2016 300,000
platforms

Interview and Recruit Stylists Wale Marketing & 100,000

Human
resources
On sites sales visits to Samuel Marketing 5/12/2016 to 200,000
potential clients to pitch the 31/12/2016
business

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8.0 Management
The company plans to locate her headquarters in Lagos, a state that can provide access to a
large pool of high-tech labor force, current e-commerce intelligence, and sources of financial
capital. The location should ensure the best logistics when reaching existing and potential
clientele, as well as strategic partners. Moreover a large chunk of our proposed clients live
in this city. Operations in which the company cannot develop core competencies will be
outsourced later in the future. Our headquarters will initially host the entire executive team,
sales force, and staff. Till we grow bigger and regionalize some of the functions available.
The company is a privately-held corporation. There already have board of directors, but we
will be having a proper team as we progress on, we have a solid management team in
place. The company plans to raise two rounds of venture capital financing before going
public.

• Board of Directors: oversees the overall strategic direction and progress of the
company. Specific areas include operational soundness, financial stability, and long-
term well-being of the corporation.
• President: responsibilities include strategic guidance of the enterprise, exploration
of expansion opportunities, and strategic alliance facilitation and management.
• Chief Executive Officer: the main responsibility is to maintain a strategic fit
between the corporate resources and external factors. Responsibilities include
running of the overall day-to-day operations, technological and operational
soundness, and financial stability.
• Director of Finance/Human Resources and Operations: responsibilities include
financial oversight, safeguarding of assets, and human resources management.
• Director of Information Technology: responsibilities include overall technological
efficiency, software development, and information control.
• Director of Sales and Marketing: responsibilities include sales generation,
marketing programs development, and public relations.
• Sales Personnel; Responsible for the daily acquisition of customer to be registered
on the portal
• Contact Centre Consultant: Responsible for receiving calls and attending to
customer inquiries
• Contact Centre Supervisor: Would manage the received calls, items brought to the
company by the field sales executive to ensure that it is properly filled before
inputting.

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9. Financial Plan/Revenue Forecast

Our financial projection is very conservative, prudent and yet quite promising. We have
carefully underestimated sales whilst taking into cognizance the multiplier effect of growth
with increasing cost potential. We believe our market place would quickly gather momentum
and start generating sales in its first year in business.

9.1 Cost Estimations and Projections

As an internet company, the major finance we need, will be to get our Web and Mobile
Applications running, we are already building the platform; so far we have spent $3,000 in
getting the platform online. We are doing the major work ourselves, and outsourcing those
we can’t do. To get the system running we will have to spend a total of $5,500 (Five
thousand USD), we have estimated a total of $6,500 (Six thousand five hundred USD) to
get to the market, we intend to bootstrap, all we need is to advertise and get people to
recognize the platform, but we will be harnessing the power of social media to grow our
platform organically.

Based on our projections, our year 1 expenses will be $25,128, expenses will be more than
revenue, we are projecting such so we don’t over estimate our revenue projections, the
business will be profitable from year 2.

Below is a breakdown of our start-up requirement.

START UP REQUIREMENTS
%
Start-up Expenses USD

FIXED ASSET
40
Website and Mobile Applications 5500
13
Computers and Laptops 1,800

EXPENSES
7.2
Internet 1,000
25.3
Advertising and promotions 3,500

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14.5
Other initial start-up cost 2,000

TOTAL 13,800

9.2 Revenue Projections

Our first source of revenue will be from make-up and hair styling, based on our market
analysis we believe more customers will request for make-up services more, we are already
interviewing stylist before the platform becomes ready, we are projecting that we will be
getting 450 requests monthly in our first year of operations. We have estimated a $5 (Five
USD) per service and $1 (One USD) cost of service. We believe the bulk of our service will
be on weekends, we have started a community on different social media platforms, to get
across to our customers. By the end of year one, we believe the company would have
gained traction in the industry, and so we are projecting a 30% increase in our monthly
transactions, we have tried to underestimate while we will be working tirelessly to surpass
the expectation. To keep our customers hooked to our platform, we will be offering
commission during special celebrations, as we know that’s when their demand for our
service will be high.

After 6 months we will start testing our software as a service (SAAS) for salons and spas,
we intend to launch that aspect of the business fully after year 1 in business, each salon is
expected to pay a monthly subscription fee for the service. The subscription fee will be a $5
(Five USD) monthly service and a $50 (Fifty USD) yearly service. We are projecting to
register at least 1,000 salons and spas in our first year of service, we will be mobilizing a
strong team for that, by the end of the first year, we will be employing 5 marketing
executives; to keep cost down most of them will be interns.

By the end of year 1, we should have registered 1,000 stylists; at this point we will
introduce a feature fee for stylist. Any stylist that registers for such service will be expected
to pay a $2 (two USD) charge to feature on the platform’s homepage. There will be a
rigorous screening, as we will only allow, stylist that have been consistent and very
productive to register for the service.

Our long term plan is to also start a subscription service for customers too, the subscription
model service allows them pay less, but we believe it allows us retain our customers, as
they will find it difficult to switch services, we would continue to innovate, so we are not
kicked out of the market by competitors, this subscription will be in partnership with
producers of beauty products.

Below is the breakdown of projected revenue and expenses in the next 3years:

Revenue 2017 2018 2019

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Makeup/Hair-do 27,000 35,100 56,160

Total Revenue $ 27,000 100% $ 35,100 100% $ 56,160 100%

Cost of Goods Sold

Makeup/Hair-do 5,400 7,020 11,232

Total Cost of Goods Sold 5,400 20% 7,020 20% 11,232 20%

Gross Margin 21,600 80% 28,080 80% 44,928 80%

Payroll 7,488 7,488 8,237

Operating Expenses

Advertising 4,320 4,752 5,227

Car and Truck Expenses 720 756 794

Fueling 720 792 911

Insurance (other than 1,020 1,051 1,082

health)

Electricity 360 396 455

Rent or Lease -- Other 6,000 6,000 6,600

Business Property

Internet 864 907 953

Total Operating Expenses $ 14,004 52% $ 14,654 42% $ 16,022 29%

Income (Before Other $ 108 0% $ 5,938 17% $ 20,669 37%

Expenses)

Other Expenses

Amortized Start-up 2,167 2,167 2,167

Expenses

Depreciation 1,460 1,460 1,460

Total Other Expenses $ 3,627 13% $ 3,627 10% $ 3,627 6%

Net Income Before Income $ (3,519) $ 2,312 $ 17,043

Tax

Income Tax $- $ 1,343 $ 5,763

Net Income/Loss $ (3,519) -13% $ 968 3% $ 11,280 20%

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$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
1 2 3

-$10,000

Sales Expenses Net profit

9.3 Milestones

Due Date Milestones Details Budget

Jan-Mar 2017 Launch the Minimum Development is currently on $5,500
Viable Product (Version going, we should get the web
1.0) app running by Jan 2017. We will
then host the app on web
services.
On boarding We will start work on getting $600
clients on to the platform, we
would be advertising on all social
media platforms, getting the
stylist on the platform. The
onboarding process, will work on
vetting the stylist and meeting
the first set of stylist in person.
Start a Blog We will launch our blog, where
we share beauty tips and tricks.
Apr-Jun 2017 Grow the customer base This quarter will be dedicated to
solely measuring our metrics and
learning. We will be working on
the regular feedbacks, given by
customers. We will improve on

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what is working and iterate.

Jul-Sept 2017 Launch Ver 2.0 of web We will launch ver 2, based on $4,000
app, Start building the the feedback collected during the
mobile apps first 2 quarters, we will also start
building the mobile apps for the
various platforms, (IOS and
Android)
Start building and testing We will start our B2B section, of $2,000
our software as a service bringing in salons and spas on
(SAAS) for Salons and the platform, we will need to go
spas. for an on the spot visit to these
salons and spas.
Oct-Dec 2017 Get to at least 1,000 This period will be dedicated to $600
Stylist getting a minimum of 1,000
stylists registered on the
platform. Then we can introduce
the feature fee for stylist. To
achieve this feat, we will spend
more on advertisement.
Jan-Mar 2018 Start a Beta Launch for The salon and spas section will $2,000
Salons and Spas be launched fully, and we will
start gathering data to propel
and improve on our value
proposition.
Business plan Review We will review our business plan,
see if are on course. We will also
work with the current market
realities; we are in a rapidly
changing business sector, so we
need to be kept abreast of the
latest information.
Launch in other major We will work on positioning the
cities in Nigeria business for scaling and still
reducing cost of scaling a
business.
Employ marketing We will increase our work force
executives by year 2 by employing 5 interns
to work as marketing executives,
their jobs will be to get the
salons and spas on board the
platform.
Apr-Jun 2018 Partnership with local We believe that by year 2 we
manufacturers of beauty should have a good footing in the
products and Beauty industry, we will now partner
training schools. with product manufacturers. The
training schools will be a place
where we recruit stylist for the
platform.
Jul-Sept 2018 Development of Salons The mobile application version of $3,000
and Spas mobile app our salon and spas app will be
developed.
Oct-Dec 2018 Start work on the We will start testing the

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subscription model. subscription model for our

platform, so we can retain our
customers for a long period of
time.
Business plan review We will review our business plan
at the end of year 2 again.

References

1. www.bplans.com
2. www.businessweek.com
3. www.b-plan.com
4. www.about.com
5. Marketing Management – Kotler

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