PROPOSAL FROM

MOBILE SALOON SDN BHD

(Website: www.barber2u.com.my)

CONTENT:

1. THE MOBILE SALOON (BARBER SHOP ON WHEELS)

2. MARKET RESEARCH
a. Current Barber Shop business concept, capital cost and overheads
b. Food Truck Pros & Cons

3. FINANCIAL PLAN
a. What we need from your organisation
b. Cost to build and commission each Mobile Saloon
c. Overhead cost of each Mobile Saloon per day
d. Estimated income per month
e. Secondary income

4. THE BARBERS
5. OUR MISSION & BUSINESS CONCEPT
6. OUR INVESTMENT
22nd October 2020

For the attention of,

Yang Berbahagia Ustaz Ebit Lew

Warm Greetings Ustaz,

I will try my best to present this business proposal straight to the point as possible.

My name is Yogendra Selvarajah. I am 54 years old and have been in car and truck industry for
the past 32 years. My experience in the industry is as below.

1. Mechanical repairs specializing in preventive maintenance programs

2. Assembly of 4X4 wagons and 3,000 to 5,000 kg truck chassis
3. Sales and after sales service of cars and trucks
4. Hire purchase and leasing facilities for fleet customers
For the past 5 years I was actively involved in fabricating and supplying Food Trucks. My
interaction with Food Truck operators enabled me to closely observe and study this particular
Mobile Truck business.

After loads of market research and interviews with barber shop owners, I came to a conclusion
that this is a fantastic industry to get involved in by making it mobile similar to Food Trucks but
with some enhancements. Thus my decision to set up Mobile Saloon Sdn Bhd (will be referred
as MSSB) which was incorporated on the 28th of September 2018.

The primary objective of MSSB is to create employment for 18 to 40 year old barbers whom
have undergone their hairdressing course at GiatMara and other local academies. We will
provide them with good monthly income and other benefits. We intend to have at least 400
barbers working on a full time or part time basis at any one time by the second year.

I hope you can go through and look forward to your positive reply.

Thank you,

Yours Sincerely,

Yogendra Selvarajah
012-295 4444
THE MOBILE SALOON

It is a fully equipped air-conditioned Hair Saloon mounted onto a 5000 kg (Gross Weight/BDM)
truck. It will be equipped with,

1. Silent Diesel Generator Set – 5KVa/240V

2. Real time GPS tracking
3. 2 Reclining Barber chairs
4. 2 dressing tables with mirrors and storage cabinets
5. 2 pieces of 10.1” Tablets to be placed on the dressing tables
6. 1.5 HP Split unit air conditioner.
7. Expandable side wall for more interior space
8. Ventilation fan mounted on the ceiling
9. 1 5 kg Fire Extinguisher
10. Interior decorations and finishing
11. Barber tools
12. Reverse Camera
13. 2 waiting stools – if needed

Below is some of the images of our Mobile Barbershop

MARKET RESEARCH – Present Barber Industry

There are currently 2 types of barber shop models catering to male clients. Over the past 3
years, we have engaged and obtained reliable feedback from both these industry players.
Following is our understanding of both this business models.

Kedai Gunting Rambut

a) Mostly operated by the Indian community
b) Employ majority of foreign workers from India
c) Between 3 to 6 Barber chairs per shop but with only 2 to 3 barbers working as it has
been very difficult to obtain approval to bring in foreign barbers since 2016
d) Set up cost between RM 70,000.00 to RM 150,000.00 depending on floor size and
location
e) Rental per month from RM 2,000.00 to RM 4,000.00 per month excluding other variable
costs
f) Operating hours from 10 am to 9 pm
g) Charges – RM 8.00 to 15.00 for dry cut. RM 5.00 for shave.
h) Average of 20 to 30 clients on weekdays and 30 to 50 clients on weekends

Barber Shops

a) Majority operated by the Malay Bumiputera community.

b) They do not employ full time barbers but have 2 types of business models
I) Commission base per dry cut
ii) Rent out their barber chairs for between RM 30.00 to RM 100.00 per day depending
on location of shop
c) Have 3 to 6 Barber chairs per shop. Again never fully utilized as barbers keep jumping
from shop to shop in order to get better commission or shops with more clients
d) Set up cost between RM 100,000.00 to RM 150,000.00 as mostly are located in high end
neighborhoods which has higher rental rates and their interior fittings are more
glamorous.
e) Rental per month from RM 4,000.00 to RM 6,000.00 excluding other variable cost.
f) Operating hours 10 am to 12 midnight
g) Charges – RM 20.00 to RM 28.00 per dry cut
h) Average of 20 to 30 clients on weekdays and 30 to 50 clients on weekends
i) Sell other items such as pomades, hair comb & brushes, shampoos and electric shavers
to supplements their income
Based on the above research, MSSB has developed a more profitable business model with a
lower capital outlay and monthly cost. This will enable MSSB to offer our local barbers better
income and benefits. Please take note that we do not and will not want to compete with both
the above industry players.
Food Truck Industry – Our Learning Curve

Food trucks started off as a fantastic concept to sell various kinds of food and drinks with low
startup cost and low monthly overheads. Listed are the pros and cons of this business concept,

Pros

1. Able to change location if business is not good in a particular location

2. Minimal staff requirement – currently employ 1 to 2 staffs per food truck

Cons

1. Majority of food trucks are currently located in town centers which does not make
sense as they will need to compete with established restaurants and roadside food
stalls.
2. Most food trucks operators do not have a clue on how to maintain a truck such as
regular maintenance, local authority permits, JPJ and Puspakom regulations.
3. Absolutely no management, marketing and accounting controls. Such as cost of product
sold, ideal locations, cost to operate their food truck per day or per year
4. Most food trucks are not hygienic as the operators do not know where or how to clean
the food preparation area. Let me specify that it is not due to laziness, it’s more to do
with limited time and knowledge of where to clean it.
5. Mostly it is a family run business which creates a whole loads of problems if truck breaks
down or have not done the regular Puspakom inspection which means they can’t renew
their insurance and road tax at JPJ
6. Totally rely on office crowds during lunch time and the going home crowd. Loss out if it
rains. Hardly any sales volume during weekends.
7. Loads of food wastage if what is prepared is not sold on the same day.

The points above clearly acknowledges the need for a centralized management control on all
aspects of operating any form of mobile truck business. This is exactly what MSSB intends to do.
FINANCIAL PLAN – COST & INCOME

a. We want to start this business with a minimum of 30 Mobile Saloons. Thus we need
support from your organisation to invest in as many Mobile Saloons as possible.

b. The cost to fabricate and commission 1 fully equipped Mobile Saloon is as below.

  RM
MOBILE SALOON PRICE WITH SST 153,000.00
HIRE PURCHASE OR LEASING FACILITY 130,000.00
DOWN PATMENT 23,000.00
MONTHLY REPAYMENT FOR 60 MONTHS 2,500.00

c. The cost per day to maintain and operate each Mobile Saloon

  COST PER DAY FOR MOBILE SALOON    

    RM  
1 INSURANCE PER YEAR 3,500.00  
2 R/TAX PER YEAR 796.00  
3 4 NEW TIRES PER YEAR 1,400.00  
4 SERVICE PER YEAR 2,500.00 12000 KMS
5 GPS PER YEAR 960.00 RM 80 X 12
6 INTERIOR UPKEEP 3,000.00  
7 FUEL @ 2.20/lt 3,720.00 12000 KMS X 0.31
8 GLOVES & FACE MASKS 1,800.00  
9 GEN-SET MAINTENANCE 1,200.00  
10 GEN-SET DIESEL 3,240.00 RM 10 X 27 X 12
11 INTERIOR DISINFECTION FORTNIGHTLY 1,800.00 RM 75 x 2 x 12
12 PUSPAKOM 800.00 RM 400 x 2
  TOTAL 26,516.00  

  COST PER DAY RM 24,716.00/365 = RM 68.00

  Note:
7 Estimated RM 154.00 for every 500 kms
   ESTIMATED INCOME BASED ON 10 CLIENTS PER DAY    
1 INCOME FROM EACH DRY CUT RM 18.50 X 10 CLIENTS X 27 DAYS   4,995.00
2 INCOME FROM LED SCREEN   12,000.00
  TOTAL INCOME   16,995.00
3 LESS OPERATIONS COST PER MONTH FOR TRUCK 68 X 30 2,040.00
4 LESS MONTHLY INSTALLMENT (130,000 X 3% X 5 YEARS)   2,500.00
5 LESS BARBER SALARY (RM 1,500 X 1)   1,500.00
6 EPF (RM 1,500 X 13%) + PERKESO (26.25)   221.25
7 ALLOWANCE TO BARBER   500.00
  TOTAL COST   6,761.25
8 NET INCOME   10,233.75

  ESTIMATED INCOME BASED ON 20 CLIENTS PER DAY    

1 INCOME FROM EACH DRY CUT RM 18.50 X 20 CLIENTS X 27 DAYS   9,990.00
2 INCOME FROM LED SCREEN   12,000.00
  TOTAL INCOME   21,990.00
3 LESS OPERATIONS COST PER MONTH FOR TRUCK 68 X 30 2,040.00
4 LESS MONTHLY INSTALLMENT (130,000 X 3% X 5 YEARS)   2,500.00
5 LESS BARBER SALARY (RM 1,500 X 1)   1,500.00
6 EPF (RM 1,500 X 13%) + PERKESO (26.25)   221.25
7 ALLOWANCE   1,000.00
  TOTAL COST   7,261.25
8 NET INCOME   14,728.75

NUMBER OF CLIENTS PER DAY 10 20 30

ESTIMATED MONTHLY INCOME 10,233.75 14,728.75 18,002.50
LESS MANAGEMENT FEES 6,000.00 8,000.00 10,000.00
ESTIMATED NET MONTHLY INCOME 4,233.75 6,728.75 8,002.50

We are currently operating 1 (one) |Mobile Barbershop at Taman Tun Dr.Ismail, Kuala Lumpur.
We started at this location on the 7 th of October 2020. We are averaging about 15 to 20 clients
per day. Presently we do accept wali-in clients but will change this to clients with prior bookings
only.

Secondary Income
Our secondary source of income will be from renting out the exterior space of the Mobile
Saloons and the Outdoor LED Screen mounted on the roof to advertising agencies. Agencies
which have committed to source advertisings are MobileAds Sdb Bhd and Astro Digital Sdn Bhd.
We will also generate ad income from the 2 Mobile Tablets placed on the dressing tables inside
the saloons.

THE BARBERS – FOUNDER’S PET PROJECT

Creating employment for Barbers is our primary objective. I strongly believe that MSSB will be
able to have 400 Barbers if and when we are able to provide them a strong base, good income
with benefits and a clear roadmap to their future. The norm of earning RM 1,200 to RM 1,500
per month is over. The basic living income must not be below RM 2,500 per month. Thus MSSB
aims to provide the following to our Barbers.

1. A basic income of RM 1,500 per month excluding commissions for 27 days of work
per month.
2. Life and medical insurance on top of the statuary EPF & Perkeso contributions.
3. Standard uniforms, gloves, sanitisers, aprons, face mask or face shields. Covid-19
has made this compulsory.
4. Provide comfortable and clean housing to outstation and East Malaysian Barbers.
5. Basic accounting/management courses in order to prepare them to be competent
future entrepreneurs.
6. Guide them on how to purchase a decent home by the age of 35 or earlier.
7. Give them an opportunity to advance their skills by taking advance hairdressing
courses to be partly subsidised by MSSB
8. Give them the opportunity to purchase the used Mobile Saloon on the 5 th year at 40%
of the original price. These used Mobile Saloons will provide them with additional
income and also give them the actual experience in running a business.
9. Yearly bonuses depending on the on the net income of each Mobile Saloon which
largely depends on the Barbers work ethics and ethos.

We also need to acknowledge that the general workforce have gotten used to the GIG
economy whereby they wish to be free agents. So do some Barbers we have interviewed. That
is the reason MSSB wants to have a pool of Barbers as we must have 2 Barbers at any one
time for each Mobile Saloons as we will be taking bookings in advance for haircuts.

Barbers who are not placed in our Mobile Saloons will be placed in normal Barber Shops and
Kedai Gunting Rambut establishments based on our terms. As stated earlier most of them
have empty chairs with no Barbers.
OUR MISSION

1. To fabricate and commission 50 Mobile Barbershops in the first 12 months and to have
200 Mobile Barbershops in the next 36 months for both the Peninsular Malaysia and
East Malaysia market.
2. To employ 800 Barbers on a full time or part time basis at any one time.
3. To provide our investors with very healthy monthly returns
4. To establish a good brand name by providing excellent service to our customers
BUSINESS CONCEPT
1. All our Mobile Barbershops will be located away from town centers such as Public &
Private Universities, Industrial Centers, Armed Forces bases, Ports, Putrajaya
Administration Center, Pulapol, Mindef and loads more locations which are far from any
town centers.
2. To have a professional management team with expertise in vehicle management,
human resource, accounting and workplace safety requirements
3. We will manage all matters involving the business such as,
a) Identify and determine locations to maximize customer volume
b) Haircuts are by appointment only
c) Call center to receive bookings for haircuts in advance, sometimes days ahead
d) Employ truck drivers for the Mobile Saloons
e) To obtain local operating permits if required
f) JPJ & Puspakom matters
g) Will manage the truck service and interior upkeep
h) Employ, train and manage Barbers
i) To manage daily cash collections
j) Hire supervisors for daily site inspections to ensure cleanness and discipline
k) To update owners of the Mobile Saloons on all business operations on a monthly
basis and provide them the income and expenses statement
l) Rent/lease out exterior space of the Mobile Saloons to advertising agencies
m) All Mobile Saloons will be sold on the 5th year and new ones will be built on first in
first out basis
n) To conduct free hair cut events every month for orphanages and old folk homes. We intend
to serve free food during these events and all investors are most welcome to join in the
event.

MSSB strongly believes the above concept will sustain the business perpetually and provide a
stable and safe working environment for our barbers.
OUR INVESTMENT

Mobile Saloon Sdn Bhd has invested RM 200,000.00 in developing the first Mobile Saloon and
for conducting a comprehensive market research. We will invest another RM 400,000.00 as
working capital. This will be used to set-up the call center which is estimated to cost RM
100,000.00 and the rest for cash flow.

COVID -19

We to need acknowledge that Covid-19 is going to be around for a long time and we need to
learn to live with it. The Barbering industry is especially vulnerable to this virus. But at the
same time, having a well groomed hair is an important part of our external cleanness.

Please feel free to contact me or Puan Hasbibi at 017-367 2462 for further information.

Thank you.

Prepared by,

Yogendra Selvarajah
012-295 4444