BUSNESS PLAN FOR GIFT MOBILE SALON

NAME; CHRISTINA MMBAGA

COURSE;
REGISTRATION NUMBER;
NATURE OF ASIGMENT; TERM PAPER

Question
Assume that you want to start your own entrepreneurial venture. You need to be
guided by a good, practical business plan. Prepare a realistic business plan. You may
be guided by the handouts on business plan attached here. Your business should be
as unique as possible. Avoid copy-paste. You have to be original.

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Table of Contents
Executive Summary................................................................................................................3
1.0 Company Description........................................................................................................4
1.2 Vision Statement...............................................................................................................4
1.3 Mission Statement.............................................................................................................5
1.4 Objectives of GIFT saloon................................................................................................5
1.5 Keys to Success.................................................................................................................5
2.0 Business Description.........................................................................................................6
2.1 Busness Ownership...........................................................................................................6
2.2 Legal and lease terms.......................................................................................................7
2.3 GIFT Salon Products and Service Offering......................................................................7
3.0 Management and Responsibilities....................................................................................7
4.0 Market/Competitor analysis..............................................................................................9
4.1 Target Market....................................................................................................................9
4.2 Competitive Advantage...................................................................................................10
5.0 Sales and Marketing Strategy..........................................................................................10
6. 0 SWOT Anaysiss of GIFT Mobile Salon.........................................................................11
Strength of GIFT Mobile salon.............................................................................................11
7.0 Action Plan......................................................................................................................13
8.0 Contigence plan...............................................................................................................13
9.0 Financail plan.................................................................................................................13
1 Financing Summary.........................................................................................................13

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Executive Summary

GIFT mobile salon is the hair salon that focus on satisfy the need of both male and
female by dedicating to provide quality hair and beaut service in one convenient
visit. The GIFT mobile saloon will offer differents hair stylists and barbers can go to
the homes of clients to have their hair problems solved. The provisional of mobile
hair saloon service in place like Dar es Salaam will generate a whole lot of profit that
is why we want to key into the trend.

The GIFT Mobile saloon will own by Mr. Majogoro together with her wife Christina.
The Saloon will located at Ubungo Mawasiliano along new dala dala terminal. The
selection of the location consider a number of facts includes enogh population (male
and female) with different activities includes bus drivers, condoctors, students (most
university students), food vendors, presence of Machingas (clothers sellers), also
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presence of office nearby (Mawasiliano tower) and presence of school of law,
present potential market segment for GIFT Mobile saloon.

GIFT mobile saloon will provide saloon service to both male and female including
relaxing the hair, barbing the hair, fixing of weaves, braiding, dying of har, manicure,
perms, curling, weaving and massage. The GIFT saloon focus on satisfy their
customers to convenient visit and offering private services where hair stylists and
barbers can go to the homes of clients to have their hair problems solved.

The GIFT mobile salon forecast to render hair services to about 35-40 peoples per
day for the four waeks of starting and we will expand up to 60 people per day in
future time. In the first four weaks the sales volume is expected to be about 700,000
per day from the hair services for male and female, our additional manicure and
pedicure services will also help generate more income.

1.0 Company Description

GIFT mobile salon is both men and women saloon dedicating to provide saloon
service in entire Dar es salaam regardless of location as it dedicated it self to become
a mobile salon. The provisional of mobile hair and beauty saloon service in place like
Dar es Salaam will generate a lot of profit that is why we want to serve that market
segment by using mobile strategy.

1.2 Vision Statement

The mission of GIFT mobile salon is to become the customer first choice in where
the hair and appearance is uttermost.

1.3 Mission Statement

Misision of GIFT mobile is to build a very creative hair salon brand which provide
good appearance of our customer all the time for mutual benefit.

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1.4 Objectives of GIFT saloon
The main ojective of GIFT salon include the folllwing
a) To become a trusted destination whereby the clients in our community can
come to refresh their minds and bodies, replenish their energies, and network
with their colleagues and friends.
b) To increase Sales substantially by end of Year 3 and nearly double year
one revenue by the end of Year.
c) To increase the number of clients services by at least 40% per year through
superior performance and word-of mouth referrals.

1.5 Keys to Success

The main key success factor for GIFT salon is based on the following factors;

a) Georgraphicha location; GIFT salon will located in Ubungo Mawasiliano at

new Dala Dala terminal. The location of the Salon is of advantage and
strategic as it characterized by presence of large population (male and female)
with different activities includes bus drivers, condoctors, students (most
university students), food vendors, presence of Machingas (clothers sellers).

The presence of office nearby (Mawasiliano tower) and presence of school of

law, present potential market segment for GIFT Mobile saloon. The
accessiblility of location and populality in which different Daladala from
different part of the city stop there, this presence potential market and easly
advertisement of the salon.

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 b) Low cost of promotion; this is due to the strategic location which make easly
for salon to become popular, the quality of service with word of mouth will
reach the existence of Gift salon. Also management spend some amount for
adverisment thorugh radio, TV, socal media eve invite some artist to have free
service.

c) Quality of service provide; the Gift salon is prepare to provide quality service
both hair cut serive and beaut service as it have experienced staffs in different
salon service. There fore it will become peoples choice.

d) Strategic choice will give competitive advantage; the Gift mobile strategy is
the best strategy which will will resulting into large profit. As many of
customers at Ubungo are Small entepreneurs which are normally presence at
their busnes all the time the mobile service will be of valuable to them as they
will be servce at their workplace with full service as they are in Salon.

2.0 Business Description

Gift mobile saloon is both men and women salon which will located at Ubungo
Mawasiliano along new DalaDala bus Terminal. The selection of the place is based
on the fact that the area is central and characterized by presence of many population
of different busness activities inludes food ventors, market for different clothing
products, restraurants, Machingas (clothes sellers) and other busness activities.

2.1 Busness Ownership

The GIFT mobile salon is corporation, which is owned fully by Mr. Majogoro and
his wife Christina Mmbaga. Both Mr Majogoro together with his wife have
experience on Salon busensss for more than 5 years. Mr Mjogoro own barber shop at
Sinza wihle his wife have beaut slaon (women salon) at Mwenge there fore both
have enough service on Salon busness.

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2.2 Legal and lease terms
The GIFT mobile salon legal recodnised as it will have all required document for its
existace also it will required for paying taax and ensrance for their employee. The
owner will lease the the frame at Mawasiliano for 2 years for sum of 2,400,000
milion.

2.3 GIFT Salon Products and Service Offering

The Gift mobile saloon focus on provide quality service to its customer and satisfy to
the greater extent. The main service the salon will focus on includes relaxing the
hair, barbing the hair, fixing of weaves, braiding, dying of har, manicure, perms,
curling, weaving and massage. The GIFT salon will also focus on satisfy their
customers to convenient visit and offering private services to different customer at
their preferred areas like home or to their working offices.

3.0 Management and Responsibilities

GIFT mobile saloon will operate under define managerial system it will operate at
Ubungo and other area surround but also will expand it scope to other part of dar es
salaam. The GIFT intend to operate with the best of structures in place, so that we
can give our clients optimal satisfaction. As a matter of importance, GIFT salon plan
to have a structure with the best combination ever. This is because are really
particular about the quality of service that gets offered.

As GIFT managers belive that success of the business to a very large extent would
also be hinged on the type of people that are being hired to carry out services. It is for
that reason that GIFT salon hire people to occupy the following positions including
chief Executive Officer (Owner), managers which includes a Hair Stylist,
Receptionist, Accountant/Cashier, Barber, Hair stylist and Cleaner. Each of
employees hae their own responsibility which includes the following;

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a) Chief Executive Officer (Owner); is trsponsible for management of all
busness activities of the solon by providing the directives to its employees. the
owners responsible for plan and magagemeent of employee perforwmce, hire,
motivate and some time xcondicting training to its employees. Mr Majogoro
and his wife are responsible for fixing price, recruitment and paying salaries of
its employees.

b) Accountant/Cashier; is responsible for financial management of all

organization transaction includes collection of revenue, purchasing of
material, payment of suplliers and workers of GIFT salon, also responsible for
preparation of financial report paying of tax and handle ather fimnancaila
duties.

c) Mangers; the GIFT salon maanger includes Hair Stylist manager which
responsible for responsible for managing daility busness activites of the
saloon. Other manager include accounting or cashier which responsible for
managing all organization transactions.

The last one is general manager which responsible for manage the perfomence
of other manager is responsible for organization objective is archived.

d) Receptionist: they are responsible for provide customer service specifically

welcome costomers, listwernig their need and provide different information in
relation to the GIFT salon service also is responsible for order taking and
searching by visit differet offices to welcome peole to GIFT saloon

e) Hair Stylist; these are main designer of different air styles, servicing
customers and conducting other duties which will be assign by maagers.
.
f) Cleaner; is responsible for clearing the salon environment and ensure that it
look attractive and customer can enjoy that environment.

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4.0 Market/Competitor analysis
The GIFT Saloon will aimed on fulfill their customer need by providing quality
servce with differet customer choice environment. As many people want to be goods
this is one of the major essences the hair salon business  came into existence. The
analysis is based on the following;

4.1 Target Market

The GIFT mobile salon is both male and female salon which focus on all customers
aged group includes students, busness peoples, artistist, parents and guardians and
olders who are not able to travel to GIFT house they will get service at their home
place. The GIFT salon also will have contract with different secondaries schools for
provisional barber service to their sudents at low price with high quality service level
with consideration of heath of students.

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4.2 Competitive Advantage
The GIFT mobile saloon will be the most of the uniques saloon at Ubungo and Dar
es Salaam in general as it focus on provide quality service by using skilled and
experienced employees with high degree of respect and customer care. As the matter
of fact the combination of owners skills and experience together with staffs will
resulting into high cuatomer satisfication. The mobile strategy GIFT mobile saloon
used will increasing its market share as allow different people to get GIFT salon
service at their home place with affordable price. This also will increase popularity
of salon.

5.0 Sales and Marketing Strategy

The GIFT mobile salon marketing strategy will focus on customer satsfcation for
mutual benefits, creation of reputation and buid of strong oranisation brad image.
The strategic location of the salon which alow easly acessibity to customers and
worker to provide servicein different part of Dar es salaam. The following are main
marketing strategy used by company;

a) Promotion stratey; the GIFT mobile salon used different promotion strategy
includes advertisement by using different media like radio, television and social
media like facebook, twiteer and other media. Advertisement to salon is the
main priority for increasing awareness to different group of customers.

However the GIFT use the word of mouth and service quality as the main
advertisement tools to increasing its populality and to win cuatomer loyality.

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 Sponsor community fashion shows, used artist in advertisement hairstayles,
This is also promotion tool which will be used by GIFT mobile salon in which
it intended to sponsor dfferent beaut show like mis Tanzania and other sport
and games show including music show by provisiding salon service to artist
free of charge.

b) Pricing stategy; the GIFT mobile hair and beaut salon will use different
pricing stategy and will epend on the nature of cutomers, nature of service and
location of service. as it will provide the moble salon service the differentiation
of price will be the best strategy. The pricing decision will base on cost,
marketing and competitors analysis that is GIFT will charge based on what is
obtainable in the industry and don’t intend to charge more (except for premium
and customized services) and don’t intend to charge less than our competitors.

6. 0 SWOT Anaysiss of GIFT Mobile Salon

The GIFT salon SWOT analysis is maied on identify the organization strength
weakness, threaty, opportunity. This is explain ing as follwos;

Strength of GIFT Mobile salon

a) Georgraphical location of salon. The location of the salon is strategically one
as it characterized by presence of targeted customer groups. The salon location
at Ubungo Mawasiliano will strength its perfomence and increasing its
revenues.

b) Resurce own by GIFT salon strength its performance; the salon own
potential resource both human and physical resouces. The presence of skilled
and experience employee ensure quality of service delivery and higth

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 customer satisfication. Also the presence of all required salon equipment with
reliable electricity supply (presence of generators for emergence) add value to
GIFT salon.

c) Strong and experience managerial team; the success and growth of the
GIFT salon will depend on its management team under supervision of Mr.
Majogoro and his wife. The experience they have both Mr. and Mrs. Mjogoro
in salon industry together with qualitied and experience staff they employee
strength the GIFT salon because will become the best peoples choice as it will
prved the best service.

i. Weakness
a) Presence of other Salon surrounding the area which provide sabstitute service
like GIFT salon will lower the market share as well as sales volume. As the
salon use mobile strategy additional runimhg cost for service lower revenues.

b) The mobile saloon is the new busness which require huge capital to invest in
different area like in human resource and advertiment.

c) Shortage of workplace facilities for all employee to facilitate easly mobility

to different part of dar es salam. For example transportation facilities like
office car and motor bicyle

ii. Opportunities
a) To generate huge profit as the result of mobile service which is not provide
by our competitors.

b) It required large initial capital for start up therefore not easly to be adopted
by other competitors

iii. Threat

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 GIFT salon will affected by unfavourable government policy and regulation
which are normaly changes, economic slow down and shift of Mawasiliano bas
Terminal to another place which affect the customers intrance to the area.

7.0 Action Plan

The GIFT Moblle saloon will be open at june 27 this year soon after its opening the
massive promotion and advertisment will be done specifically to Ubungo
Mawasiliano

8.0 Contigence plan

The GIFT mobile hair and beauty saloon will reserve 30% of the organization profit
for unforeseen event during its operation. Intialy it reserve 10% of their capital for
contigence.

9.0 Financail plan

The financial plan explain in numerical table as follws

1 Financing Summary
Money Needed for Amount Source of fund Amount

Startup costs 6,000,000 Loan from bank 3,000,000

Working Capital 3,000,000 Personal cash 3,000,000

Total 6,0000,000

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