BUSINESS IDEA. HAIR AND BEUTY SALON.

EXECUTIVE SUMMARY
Group Status

The group is given a name of JEWEL BEAUTY HAIR AND SALON located in Dar es Salaam
that is planning to provide beauty services to women. The business will be established to offer
fast services to the customer, full time students and late hour’s workers around Dar es Salaam as
well as making delivery of services to the customers who are able to reach the enterprise
location.
Company’s Products
The business will provide different services such as hairdressing services, makeup services
(bridal and normal makeup) and pedicure and manicure services.
Financial Forecast
The financial forecast for the business is expected to incur the total cost of Tshs.166,792,000/ -
for the five years of operations. The operating costs are expected to grow differently for the first
four years, while the other cost of the business will remain fixed.
The revenue forecast for the business for the first year of operation will be Tshs. 115,200,000/=
and for the first five year the revenue will total Tshs. 582,900,000.

i
TABLE OF CONTENT

Contents
EXECUTIVE SUMMARY.................................................................................................................................ii
TABLE OF CONTENT.....................................................................................................................................iii
BUSINESS DISCRIPTION...............................................................................................................................1
Ownership of the business.....................................................................................................................1
Vision.......................................................................................................................................................1
Mission....................................................................................................................................................1
Objectives................................................................................................................................................1
BUSINESS MODEL....................................................................................................................................3
Product....................................................................................................................................................4
Principal customers.................................................................................................................................4
Location...................................................................................................................................................4
Industry analysis......................................................................................................................................5
MARKETING SEGMENT................................................................................................................................6
Target market..........................................................................................................................................6
Market size..............................................................................................................................................7
Competitive analysis................................................................................................................................8
Marketing objectives, marketing philosophy, and marketing strategies..................................................8
OPERATIONAL PLAN....................................................................................................................................9
Location...................................................................................................................................................9
Product /services design and development.............................................................................................9
Facilities and capacity..............................................................................................................................9
Legal aspect (regulation and licensing)..................................................................................................10
Business consumables...........................................................................................................................10
Suppliers and contracts exist.................................................................................................................11
Production activities..............................................................................................................................11
Quality control.......................................................................................................................................11
Customer service support......................................................................................................................11
Level of technology used.......................................................................................................................11

ii
MANAGEMENT PLAN.................................................................................................................................12
Form of Organization.............................................................................................................................12
Key Personnel, their position and responsibilities and career experiences that qualify them for those
particular roles.......................................................................................................................................12
Organization structure...........................................................................................................................13
Support services....................................................................................................................................14
Contingency Plan...................................................................................................................................14
FINANCIAL PLAN........................................................................................................................................15
Sources of funds....................................................................................................................................15
Debt financing.......................................................................................................................................15
Members’ contributions........................................................................................................................15
Uses of Funds........................................................................................................................................15
Venture Performance............................................................................................................................15
Sensitivity Analysis.................................................................................................................................18
CRITICAL RISK SEGMENT............................................................................................................................20
Risk of the business and mitigation measures.......................................................................................20
MILESTONE SCHEDULE SEGMENT..............................................................................................................21
Pre operating activities..........................................................................................................................21
Operating activities................................................................................................................................21
DEVELOPMENTAL IMPACTS.......................................................................................................................22
Economic impacts..................................................................................................................................22
Social impacts........................................................................................................................................22
APPENDIX AND BIBLIOGRAPHY SEGMENT.................................................................................................23
CURRICULUM VITAE...............................................................................................................................23

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BUSINESS DISCRIPTION
Ownership of the business
The business I is partnership form of organization, comprising of five partners who are
MALIMA PAULO, CHARLES MGALILI, ATIENO PILLY, EDMUND HAULE AND
KITULA RICHARD
The owners (experience in the business, ownership structure)
The experience in the business concerning these partners is;
NAMES BUSINESS EXPERIENCES
 MALIMA PAULO  Financial management
 PILLY ATIENO  Customer relation and communication
skills
 EDMUND HAULE  Leadership and financial analysis

 CHARLES NGALILI  Public relation skills

 KITULA RICHARD  E-business experience

The business ownership structure is composed of equal capital contribution and liabilities from
all five partners. Capital to be contributed by each partner is Tsh 2, 000, 000 initially, and the
liabilities from the business will be shared equally by each member partner.

Vision
To become the leading hair and beauty salon in Dar es salaam region by 2028

Mission
To serve customers with integrity by being loyal to them, the company and ourselves. To give
superior customer services consistently with happy relentless attitude while standing within an
affordable budget for families.

Objectives
The main core objectives of the business are;
i. To provide high quality services to the customer in terms of time saving.
ii. To operate in a more efficient such as low cost of operation and delivering, while
maximizing sales year after year
iii. To increase market shares by providing the services that meet the customer
preferences through increase the quality services, heavy promotions and
advertisement.

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iv. Expansion of the customer base, from few market segments of full time workers and
students to more customers of different segments such as employees, business people,
students and workers.
v. To become the leading beauty salon service business enterprise in the country, by
expanding geographical to other regions and cities. Also to make the industry
becomes more popular and contributing high per cent in the Nation’s GDP

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BUSINESS MODEL

1:CUSTOMER 2:VALUE PROPOSITION 3:CHANNEL

SEGMENT
Hair treatment Branches/agents
Female
Beautiful brands (all hair styles) On call delivery services
Women with disposable
income Affordable competitive price

Make up

Pedicure and manicure.

Timely delivery of services.

4:CUSTOMER 5:REVENUE STREAM 6:KEY RESOURCES

RELATIONSHIP
Direct provision of services to Physical resource: premises,
Suggestion box the customers furniture, machines.

Customer support Byproduct sales Financial resources: capital

Greeting cards Human resources: employees

Free drinks.

Rewards.

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 7:KEY ACTIVITIES 8:KEY PARTNERS 9: COST STRUCTURE.

Hair treatment Suppliers Premises costs

Make up Financial assistance Resources cost

Pedicure and manicure Content creators Transport cost

Landlord Salaries

Costs for drinks to customers

Product

Wash and blow

Relaxing
Braiding and treatment pony tail
Tint
Principal customers
The idea based on female gender as the target market and it will deal with all ages.

Women with disposable income.

Location
Location for business is MWENGE Mpakani.
Demographic, the area is populated which it is easy for the firm to get potential customers, the
population of the location selected comprises of the following;

 Youths
 Employed individuals
 Entrepreneurs

The level of income of population comprises of different peoples with different level of income,
this means there will be difference in purchasing power of the customers in that the customers
with relatively higher level of income will have higher purchasing power compared to the
customers with relatively lower level of income, with this situation it will help the firm to plan

viii
for the strategies so as to reach every person according to their income, the strategy of offering
products of different prices will help to target the whole market regardless their income status.

Economic base; the economic status of the location in good situation and there are the main
activities that are performed in the society that act as the main source of income and benefit the
economy of the area as follows

Entrepreneurial activities, there are different activities which are performed such as fast food
(mama lishe), road side traders, hawkers and peddlers, retailers and wholesalers

Mwenge Makonde community sculptures market, is the major tourist attraction, several shops
have adjusted workshop where visitors are invited to watch Makonde sculptors at work.

Overall business climate, the overall business climate of Mwenge is favorable because of the
following reasons;

Transportation, the transport situation of the area is good located and can be reachable easily by
both suppliers and customers, and the cost of transport are relatively small, private cars and
public transport can be used to reach the location of the business.

Banking services, there is presence of banking services near the location of the business this
helps the organization such as NMB, CRDB, AZANIA, Community bank, and NBC bank which
makes easy for the firm to get services.

Industry analysis
Free entry and exist, in the industry there are no any restriction which will bring hardship for the
to enter in the market,

Technology, there is no proprietary technology that is mostly used in the industry rather than
machines such as driers which as easy to obtain and most of equipment needed are not expensive

Access to distribution channel; since the suppliers in the industry are willing to supply their
product to any firm which makes easy to access the products required to provide services to the
firm and it is the starting point for accessing the distribution channel by new firms entering the
industry, for the distribution of services to the customers in the industry it requires customers to

ix
visit the location of the firm direct but for those customers who cannot be able to visit the firm
the agents who are employed by the firm can be used to deliver services to their location.

Access to raw materials, there is availability of raw materials needed for the salon as there are a
lot of suppliers of raw materials and the number of shops which sells materials for beauty salon
is high but since we are new comers at the market it will be difficult to access which source of
materials are good compared to the other sources of material

Suppliers, there is the number of suppliers in the industry and the suppliers cost of materials
determines the cost of products and also the quality of their products determines the quality of
our products, therefore, the bargaining power of the supplier is low because there are many
supplier in the industry which produce the same products for examples of suppliers are African
star, prima hair, darling hair, angel hair, FM cosmetics

Buyers, in the industry most firms have got fixed prices for providing services and most of the
customers have information about the prices for each service and the materials used to provide
the service involved, also the bargaining power differs from one firm to another depends on size
and the type of customers they deal with. For large firm they deal with customers who have high
disposable income compare to small and medium size firm so the bargaining power of their
customers is small compared to small and medium size firms.

Industry competition; there is very stiff competition in the industry since there are so many firms
in the industry therefore every firm have its strength and weaknesses therefore each firm is
taking competitive advantage over the weakness of the other firm and its own strength

MARKETING SEGMENT
Target market
Demographics in term of age factor, we categorized into three group.

Group 1. Consist 0-18 age who are most students and these group if their high in population will
tend to affect our market.

Group 2. Consist19-45 age who are most youth and these group have diversified source of
income and if these group are high in the population will influence the market expansion.
Because these group is our most targeted customer.
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Group 3. Consist 46 and above these group consist most elder people and retired worker, which
are depend on invested income and if these group are high in number will affect our market.

Types of jobs;

Group 1: professional jobs; are individual who have high income and they prefer high quality
services and they are frequent customers who often come for services and they are the potential
customers of the industry and contribute to higher percentage of the business of the profit.

Group 2: unprofessional jobs; are individuals who are not professional and not skilled, this group
have no stable earning income thus tend to love services which are low cost and not frequent
customer to our market.

 Number of women in work force, since firm’s market concentrates of women therefore an
increase in the number of women in working force will led to the increase in the income
of women which will help to create market for the services provided by the firm.

Market size
The market size for the fir is estimated to 12000, where the firm will be operating and reach
people from different five streets which are indicated by letters in the table below.

And the calculations are made so as find the respective market share for the firm.

Location demand supply dd-ss gap

A 4000 3000 1000

B 2000 1500 500

C 1500 1000 500

D 1500 500 1000

E 3000 2000 1000

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 12000 8000 4000

DD-SS GAP is 4000/12000*100 =33.3%

Our firm expects to serve 480 customers per month.

Estimate market share will be 480/12000*100 =4%.

The firms expected market share is 4% per month

Competitive analysis
Marketing objectives, marketing philosophy, and marketing strategies
MARKETING STRATEGIES.

Pricing, in order to capture the market, the firm will use penetration prices, the prices which will
be lower compared to the prices of the competitors. The price which will only cover the cost of
production and operations, also since the business is new in the market this will help the firm to
easily acquire customers from the competitors and also get attention from the customers.

Sales and distribution.

The means of distribution will be through the following

 Door to door distribution, in the industry most of the competitors lack this mean of deliv-
ery where it is usually customers who will be physically visit the business premises. But
for the firm distribution methods it will deliver its services to the customers places
 Location, the customers will be required to directly visit the location of the business to
get services and the location of the business will be at Mwenge Mpakani
 Process, the services will be delivered on the sequence so as to reduce jam and the issues
of boredom of service to customer also the sequence will not be a long process
Advertising and promotion

 Social network; use of social media like Instagram, WhatsApp groups, Facebook, twitter
and linked in.

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  Radios channels like wasafi FM, clouds FM, choice FM and tv channels wasafi tv, EATV,
Azam tv etc.
 Discounting during holidays like x-mass and new year

OPERATIONAL PLAN
Location
mwenge mpakani, the reasons for choosing this location are as follows;

good transport network; mwenge mpakani is a reachable place to everybody from it is acentered
place because there highway so customers from ubungo, mbezi, tegeta, kawe,makumbusho and
other places therefore customers can reach at mwenge-mpakani easily without any problem as
transportation is concerned.

Availability of raw materials; in mwenge mpakani we can easily get our raw materials essential
for our operations for example water, electricity and also there are big wholesales where we can
buy raw materials like cosmetics, nails, braids incase of emergence for example when customer
needs braid colors that we not have in our store.

There is availability of labor; at mwenge there are individuals that knows how to braid hair both
men and women and they do not have the capital to open up their businesses therefore these
individual are willing to provide labor to our enterprise at lower cost

Product /services design and development

Our services design will be according to the fashion trend and according to the customer
preference

Facilities and capacity

Premises

We will rent and we will the rent annually.

Besides renting our future plan is to construct our own premises so that cut the cost of paying
rent annually and this will also increase the value our physical assets.

Equipment

 Tools; the tools that we are going to use to provide our services are as follows;
styling chairs
Dryer chairs

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 Reception chairs

Electronic hair dryer

Combs and brushes

Blow-dryers

Steamers

Hair irons

Hair rollers, scissors, hair clippers, hair pins

Nail polish and polish removers

Nail brushes

Foot spa soakers and troughs

Towels

Legal aspect (regulation and licensing)

On the operation of the business there are the set rules that are supposed to followed by the
business for the case of beauty salon there are different regulations which are supposed to be
followed

Registration, in Tanzania in order to do business the requirements is to register the business first,
registration is done through an agency commissioned by the ministry of trade and industry
known as business registration and licensing authority BRELA, this is done to obtain the name of
the of the business and certificate of registration.

Tax payments, it is compulsory for any business in Tanzania to pay tax, the government body
which is responsible for collection of tax is Tanzania revenue authority (TRA), it is required to
visit TRA offices and fill the application form to apply for tax payer identification number (TIN)

Business consumables
styling chairs
Tables
Shampoo chairs
Dryer chairs

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Reception chairs
Electronic hair dryer
Combs and brushes
Blow-dryers
Steamers
Hair irons
Hair rollers, scissors, hair clippers, hair pins
Nail polish and polish removers
Nail brushes
Foot spa soakers and troughs
Towels
Shelves
Televisions and speakers

Suppliers and contracts exist

Our main supplier foe braids and cosmetics will be darling hair and mrembo suppliers. Also, our
back up suppliers will be African star and atsoko make up cosmetics store.

When the business expanding there will be the possibility of entering to a contract with suppliers
for the case where suppliers requires the business to be the ambassador for their product.
Supplier like darling hair uses such strategy to increase the demand for their product.

Production activities
Production process

1. Ask customers what kind of services she wants or likes.

2. Give the customer brochures of services offered.
3. For customization customer will be taken a picture or photo and will be saved in the
computer
4. Let the customer choose the hairstyle they want.
5. Apply customization using adobe Photoshop
6. Result will be given to the customer
7. If she is satisfied with the result, she will proceed to the styling processes
8. If not, the customer can alternatively choose another hairstyle they want
9. Styling will be don after customer choose the best hair style for her
10. The customer will go to the payment process.
The customized photo will be given to the customer as gift for free.
Quality control
In order to control the quality for the business services the following will be done
We can improve according to customers demand and preference.
Gather feedback from customers

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Customer service support

Give advice to the customer on what products to use for their hair growth and health and what
styles are good their hair and appearance
Level of technology used
We are going to use new advanced and up to date tools to provide services to our customers
according to their preferences

In terms of payment system, we propose to fintech like mobile payments like m-pesa, airtel
money, tigo pesa, halo pesa, and ezy pesa.

Online marketing and promotions; we will be advertising and promoting our products through
mass media for example use of Instagram pages, Facebook accounts, WhatsApp accounts so that
we can reach many people and attract many customers.

MANAGEMENT PLAN
Form of Organization
The business form of organization is partnership. It is comprised of five partners who forms the
board and also have a look on overall management of the firm

Key Personnel, their position and responsibilities and career experiences that qualify them for
those particular roles.
The key personnel needed for the business operations, their position and responsibilities are
explained in the table below;
Position Responsibilities Career experiences
1. Financial and  Diploma of Commerce
Accounting Manager  Management of in Finance/Accounting
financial activities of  Certificate in Business
the company such as Forum Training
Working capital  Certificate of Practical
management, capital training attendance at
budgeting decisions Ministry of
Finance/Accounting
2. Marketing and  Diploma of Commerce
Operation Manager  Management of Sales in Finance
and distribution  Certificate of
 Initiating promotions Entrepreneurship and
and advertisement career development
 Receiving and  Certificate in
processing orders Marketing forums
 Assurance of quality training

xvi
 control and customer
service support
3. Human Resources  Diploma of Commerce
and Public relation  Management of worker in Finance and HR
Manager recruitments,  Certificate of Human
operations, salaries resources
 Management of  Certificate of social
workers performance, and community
working conditions development
 Provisions of
motivations through
rewards, incentives,
bonuses, punishment
 Represents the
organization to third
parties

Organization structure

CEO

FN/ACC MK&O HR&PR

MANUAL WORKERS

CEO CHIEF EXECUTIVE OFFICER

FN/ACC FINANCE AND ACCOUNTING DEPARTMENT

MK&O MARKETING AND OPERATION DEPARTMENT

HR&PR HUMAN RESOURCES AND PUBLIC RELATUION DEPARTMENT

Salaries and wages

Workers Number of workers Proposed salary per worker

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 (monthly)
1. Managers 4 Tshs. 250000/-
2. Assistants 4 Tsh 200000/-
3. Business secretaries 1 Tshs.120000/-
4. Other workers 20 Tshs. 100000/-

Fixed Assets

Type Cost per unit Units required Total costs

1. Dryer Tshs. 180,000/- 4 Tshs. 720000/-
2. Steamer Tshs. 100,000/- 3 Tshs. 300000/-
3. Computers Tshs. 700,000/- 1 Tshs. 700000/-
4. Television and Tshs. 1,000,000/- 1 Tshs. 1,000,000/-
Music systems
5. Furnitures and Tshs. 5,000,000/- _ Tshs. 5,000,000/-
others

Support services
The company will have the following support services

1. Bank account at CRDB bank

2. Insurance services at Century Insurance

3. M-pesa, Tigo Pesa, Airtel money accounts

Contingency Plan
To cater for any unforeseen event, the company have design the following contingency plan

i. The firm will build its own premises within five years.

ii. The firm will increase the number of workers when demand of services increase

iii. The firm will use fixed deposit account to deposit money which will be used as
security to secure loan

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FINANCIAL PLAN
Sources of funds
The company is going to use two types of financing the business for the first five years;

Debt financing
The company will seek an external source of fund from different stake holders, the firm will raise
funds from CRDB bank which will be 5,000,000 with interest rate of 14% per annum.

Members’ contributions
The remaining amount after firm get loan will be contributed by the members equally

Uses of Funds
The funds will be used;

 To finance the working capital of the business such as Salaries, repairs and maintenances,
electricity, lease rentals, internet charges, and other operating expenses

 To finance fixed assets such as purchases of hair dryers, steamers, and computer and
office furniture, and purchases of stocks for the firm.

Venture Performance
 INCOME 2024 2025
STATEMENT 2020 2022 2023
115,200,00 117,100,000 117,800,000
SALES 0 116,300,000 116,500,000
Less      

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OPERATING
COSTS      
Salaries & Wages 18,840,000 18,840,000 18,840,000 18,840,000 18,840,000
Promotions 300,000 200,000 200,000 200,000 200,000
12,000,00 12,000,000 12,000,000
Rent 12,000,000 0 12,000,000
Fuel Expenses 100,000 100,000 100,000 100,000 100,000

Depreciation 1,158,000 1,158,000 1,158,000 1,158,000 1,158,000

Repair & 1100,000 1,300,000
Maintenances 500,000 700,000 900,000
Interest Expenses 140,000 140,000 140,000 140,000 140,000
TOTAL COSTS 33,038,000 33,138,000 33,340,000 33,538,000 33,738,000
PROFIT 83,562,000 84,062,000
BEFORE TAX 82,162,000 83,362,000 83,160,000
Tax on Profit 25,068,600 25,218,600
(30%) 24,648,600 25,008,600 24,948,000
PROFIT AFTER 58,493,400 58,843,400
TAX 57,513,400 58,353,400 58,212,000

 BALANCE SHEET 2021 2022 2023 2024 2025

ASSETS      
Current Assets      
7,438,00 10,754,00 12,412,000 8,280,000
Cash 0 8,596,000 0
       
Fixed Assets      
Office Furniture 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000
Computers 700,000 700,000 700,000 700,000 700,000
OTHER FIXED ASSET 2,020,000 2,020,000 2,020,000 2,020,000 2,020,000
Total Fixed Assets
Less: depreciation for (4,632,000) (5,790,000)
all assets (1,158,000) (2,316,000) (3,474,000)
15,000,00 15,500,000 16,000,000
TOTAL ASSETS 14,000,000 14000000 0
LIABILITIES      
CRDB Loan 4,000,000 3,000,000 2000,000 1000,000 -
TOTAL LIABILITIES
OWNER"S EQUITY      
Capital 10,000,000 11,000,0 13,000,0 14500000 16,000,000

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 00 00
TOTAL OWNER"S 11,000,00 13,000,00 14,500,000 16,000,000
EQUITY 10,000,000 0 0
TOTAL LIABILITIES 14,000,00 15,500,000 16,000,000
AND EQUITY 14,000,000 0 15,000,000

CASH FLOW STATEMENT

2021 2022 2023 2024 2025

 
OPENING
BALANCE
117,100,000 117,800,000
Cash Sales 115,200,000 116,300,000 116,500,000
Loan Received- 5,000,000 - - - - -
CRDB
10,000,000
Initial investment

TOTAL RECEIPT

CASH PAYMENTS
1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Loan Payment
18,840,000 18,840,000 18,840,000 18,840,000 18,840,000
Salary & Wages
200,000 200,000
Promotions 300,000 200,000 200,000
1,158,000 1,158,000
Depreciation 1,158,000 1,158,000 1,158,000
12,000,000 12,000,000
Rent 12,000,000 12,000,000 12,000,000
100,000 100,000
Fuel Expenses 100,000 100,000 100,000
Repair & 1100,000 1,300,000
Maintenances 500,000 700,000 900,000
140,000 140,000
Interest on Loan 140,000 140,000 140,000
25,068,600 25,218,600
Tax expenses 24,648,600 25,008,600 24,948,000
59,606,600 59,956,600
TOTAL OUTFLOW 58,686,600 59,146,600 59,288,000
ENDING 57,493,400 57,843,400
BALANCE 61,513,400 57,153,400 57,212,000
1,158,000 1,158,000
Add: depreciation 1,158,000 1,158,000 1,158,000

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 (15000000) 58,651,400 59,001,400
Net cash flow 57,671,400 58,311,400 58,370,000

Business Evaluation

Net Present Value Method

Cash flows = Profit before tax –Tax + depreciation

NPV = ∑-CF

Time Cash flows Discounting rate 14% Cash flows (14%) _

0 (15000000) 1 (15,000,000)
1 57,671,400 0.88 50,750,532
2 58,311,400 0.77 44,899,778
3 58,370,000 0.67 39,107,900
4 58,651,400 0.59 34,604,326
5 59,001,400 0.52 30,680,728

NPV = (50750532+44899778+39107900+34604326+30680728) – (15000000)

NPV = 185043264

The business plan will generate a positive net present value then it shows that it is profitable to
be undertaken

Key ratios

Profitability ratios

 ROA =

Net profit 82162000 83362000 83160000 83562000 84062000

Total assets 14000000 14000000 15000000 15500000 16000000
5.87% 5.95% 5.54% 5.89% 5.25%

 ROE =

2021 2022 2023 2024 2025

Net profit 57,513,40 58,353,40 58,493,400 58,843,400
0 0 58,212,000
equity 10,000,000 11,000,000 13,000,000 14,500,000 16,000,000
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 5.57 5.30 4.48 4.03 3.68

Leverage Ratios

 Debt to Equity Ratio =

2021 2022 2023 2024 2025

debt 4,000,000 3,000,000 2,000,000 1000,000 -
equity 10,000,000 11,000,000 13,000,000 14,500,000 16,000,000
40% 27.3% 15.4% 6.9% -

As the firm tend to expand it sales over years it also tends to reduce its rate of depending on
loans that’s why the rate of debt to equity tends to decline

It shows how the equity of the company is financed by debt

Sensitivity Analysis
 If sales of the business change it will have an impact on profits, this is because profits of
the business and sales are directly related. This means that if sales increase/decrease,
profits will increase/decrease respectively.

Example: If sales decline by 20 per cent, profit before tax also declines by more than 90 per
cent per cent implying that small changes in sales leads to large change in profits for the
business, other factors remain constant.

 
SALES 92,160,000 93,040,000 93,200,000 93,680,000 94,240,000
Less
OPERATING COSTS
Salaries & Wages 18,840,000 18,840,000 18,840,000 18,840,000 18,840,000
Promotions 300,000 200,000 200,000 200,000 200,000
12,000,00 12,000,000 12,000,000
Rent 12,000,000 0 12,000,000
Fuel Expenses 100,000 100,000 100,000 100,000 100,000

xxiii
Depreciation 1,158,000 1,158,000 1,158,000 1,158,000 1,158,000
Repair & Maintenances 500,000 700,000 900,000 1100,000 1,300,000
Interest Expenses 140,000 140,000 140,000 140,000 140,000
TOTAL COSTS 33,038,000 33,138,000 33,340,000 33,538,000 33,738,000
PROFIT BEFORE TAX 59,122,000 59,902,000 59,860,000 60,142,000 60,502,000
Tax on Profit (30%) 17,736,600 17,970,600 17,958,000 18,042,600 18,150,600
PROFIT AFTER TAX 41,385,400 41,931,400 41,902,000 42,099,400 42,351,400

Since the firm operates operations will be facing different economic conditions which will result
to the fall in the rate of sales from one year to another the fall in sales will led to the fall of
revenues that the firm expect to raise and hence reduce the rate of profit for the year

CRITICAL RISK SEGMENT

Risk of the business and mitigation measures
poor cleanliness ,this is whereby some tools like hairbrushes, massage rollers, slipper, nailtools,
chair are repeatedly used to different clients and this may cause spread of different diseases from
one client to another and this happen when these tools are not cleaned properly . This risk can be
reduced by thorough cleaning of these tools after each use and sharp equipment to be disposed
after use.

Hazardous chemicals: beauty industry use products that contain all sorts of chemicals, so
extreme caution should always be taken when using them. Some product whip contain all
hazardous substances include hairdyes,bleachers,chemical peels,browtints, peroxides,
nailproducts and wax solvent. Misuse of these products may lead to effects such as dermatitis,
asthma,eye and throat irritation. This risk can be reduced through buildings with good ventilation
system and also client to take allergy test 48 hours before their appointment .

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Trip and falls: the floor of beauty salon can become wet for number of reasons like from leaking
shampoo sinks, spilled beauty products these may cause injuryes when left unswept not only to
customers that are at risk of injury but also staff members can suffer too. To reduce this risk
make sure that any liquid spills are cleaned as soon as they happen, at the end of each day,
thoroughly clean the salon floor to ensure it is clean, dry and ready for next day.

Unqualified staff: inexperienced staff can give the customer a dodgy bye job.but more serious
consequences like burn of nerves, damages or skin infections etc. This risk can be reduced by
making sure the staff you hire are qualified to the job they have been hired to do by seeing their
relevant certificates and proof of experience .

Fire: all business have fire risk but beauty salon are at higher risk because of the chemical
products and electric equipment used which make it difficult to prevent outbreak of fire eve if
precautionary are taken. Overloaded plug sockets with an assortment of electrical items can great
severe fire hazards. This risk can be reduced by not overloading plug sockets and to be
particularly careful when dealing with water or chemical near an electric power supply.

Theft: as any other business there is risk that beauty salon can become a victim of crime, tjiscan
include crimes committed by clients, employees or passers. Someone may steal beauty products,
money from the still, salon equipment or clients handbag. There's also chance that money from,
could be misappropriated by employees or someone close to them. Some thieves may wait for
salon to be closed before breaking in. This risk can be reduced by installation of CCTV system.
This will act as a deterrent to potential criminals and provide evidence should theft or break
occur. You can also ensure that doors and frames are sturdy and fitted with secure, high quality
locks and keep aside doors locked at all times.

Legal risk: any public facing business is at risk of being sued by client. If one your customers
believes that you or your business has caused them harm or loss, they may decide to make a
claim for compensation. In extreme cases this can lead to payout of tens of thousands. This risk
can be reduced by taking insurance policies which protects the business against legal claim. The
policy will pay out towards the compensation costs and you canary on your business as usual

MILESTONE SCHEDULE SEGMENT

Pre operating activities
Surveying, before undertaking there is need of undertaking survey so as to understand the market
as the whole and to understand the challenges faced by customers on the service that the business
is required to provide to the public.

Operating activities
Collections of raw materials, there will be the activity of receiving raw materials from the
suppliers and also this will go along with the payment for raw materials.
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Recruitment of employees, selection of workers to undertake business activities and the activity
will be conducted during the lifetime of business where it will be need during the time where
firm requires new employees.

Delivery of services, for the customers who are far from the location of the business there will be
a need for the delivery service so as to retain customers.

Payment receipts, there will be different methods for receiving payments from the customer,
there will be a person to perform the activity. The payment will be made through cash or through
mobile payments and through bank account.

DEVELOPMENTAL IMPACTS
Economic impacts
 Creation of employment

Social impacts
Hair and beauty salon provide a central place for women to tend to their appearance, enjoy the
companionship of other women and exchange information. Compared with other social
institutions such as churches the informal atmosphere of salon enables women to forge bonds not
only with their stylists but also with salon clientele. The various social roles of a hair salon can
encompass a support network.

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