Supply chain assignment

MG-450

Name: Dua Maqsood

Roll no: IM-037
Submitted to: Dr .Syed Mehmood
De Elegance Beauty Salon

Table of Content

Contents
Executive Summary ............................................................................................................... 1
Introduction ............................................................................................................................................................................... 1
PESTLE ANALYSIS OF MY BUSINESS ........................................................................................ 2

Company Summary ............................................................................................................... 3

Operational hour...................................................................................................................................................................... 3
Market Research ................................................................................................................... 3
Target market ........................................................................................................................................................................... 4
Marketing strategies .............................................................................................................................................................. 4
Promotions ................................................................................................................................................................................. 5
Competitive market ................................................................................................................................................................ 5
Problems that we aim to resolve:...........................................................................................................................................6
Organization chart .................................................................................................................................................................. 6
Business Services ................................................................................................................... 7

Finance ................................................................................................................................. 8
Start-up Summary ................................................................................................................................................................... 8
Table: Start-up ................................................................................................................................................................................8
Products and Services with price...................................................................................................................................... 9
Facial...................................................................................................................................................................................................9
Manicure/Pedicure.......................................................................................................................................................................9
Haircutting/hairstyling..............................................................................................................................................................9
Henna application.........................................................................................................................................................................9
Make-up .............................................................................................................................................................................................9
Body massages............................................................................................................................................................................. 10
Wax/threading ............................................................................................................................................................................ 10
Services provided after one year ......................................................................................................................................... 10
Services provided after 2yearsr ........................................................................................................................................... 10
First-year financing .............................................................................................................................................................. 11
Second-year financing ......................................................................................................................................................... 11
Third year financing ............................................................................................................................................................. 12
Break even analysis .............................................................................................................................................................. 13
Three years financing .......................................................................................................................................................... 14
Cashflow diagram .................................................................................................................................................................. 14
Supply chain flow ................................................................................................................ 15

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De Elegance Beauty Salon

Executive Summary
Introduction
De elegance beauty salon is a place where you are provided with the best skin and hair
makeover. It is a full-service beauty salon dedicated to always providing a high level of
customer satisfaction by providing excellent service, high-quality products, and a comfortable
atmosphere at an acceptable price This business is a sole proprietorship business and all
decisions making power belongs to the high-quality staff according to the required job with
specialized skills. We also maintain a friendly, fair, and creative work environment that respects
diversity, ideas, and diligence

Vision
To establish a brand in the city. Open more outlets/branches.to train the staff and help people to
enhance their appearance and image confidently in the society.

Mission

To provide services at reasonable prices and flexible full filling the requirements of the
customer. Use organic products to meet the demand and expectations of customers.

Aim
To flourish the business and earn the profit.

Objectives

• To provide satisfactory services of hair cutting and styling, makeover, facial and skin
treatments, Mehendi application.
• Providing you the best, relaxing and safe environment with skill full workforce.
• Give memberships and discount vouchers.
• Use organic based products

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De Elegance Beauty Salon

PESTLE ANALYSIS OF MY BUSINESS

Political
• Government taxes on business is very high when in future my salon registered the
government policies can create a hurdle.
• No rules and regulations set by the government as robbery is a major issue and no
political policy is present.

Economical

• The inflation rate is a major factor in Pakistan as it is increasing day by day.

• The beauty gadgets and products prices are high as per the last released budget the taxes
on cosmetic items were increased.

Social

• Give special discounts on occasions like on treatments before eid ul Fitr/eid ul Adha, on
makeup in wedding months like June/July/November/December, independence day etc
• Pick up the styles which are in demand according to the current fashion.

Technological

• Use advanced tools for every treatment like a massager, dryer, hair straightener, curler
etc.
• Use facial treatment machines.

Environmental

• More manicure/pedicure in winters and autumns.

• Mainly environment affects this business because this business needs transformations
according to the change in the environment like in Ramzan’s last days’ application
Mehendi demand is high, after eid the wedding session is started so makeup and skin
treatment are in demand.
• The law and order situation is not good speciallyy in Karachi so the security risk is a
great issue.

Legal

• Use halal and authentic products for any treatment.

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De Elegance Beauty Salon

• Make a proper contract with the seller from we take products for our salon.
• Following all sops according to the law of the Government of Pakistan.

Company Summary
Salon name ‘De Elegance Beauty Salon’
Owner Dua Maqsood
After opening, D Elegance will sell a wide range of beauty services and products. We provide
high-quality hair, nail, and skin services and premium beauty products. What sets D Elegance
apart from its competitors is our commitment to providing all of these services in one convenient
location. The salon will be located in North Nazimabad Block M.

Operational hour
The timings are from 10 am to 9 pm. It is a thickly populated area and the center of the city, with
easy access from all parts of town.

Market Research
According to the census result of Karachi in 2017 the most thickly populated area is Karachi
central. So according to this survey, I decided to open my salon in my house which is situated in
North Nazimabad Block M.

A survey is done in 2016, in which women were asked about their expectations and problems
regarding beauty salons. Different aspects come after this survey which are as follows

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De Elegance Beauty Salon

The above information tells the expectations, services, and timings for visiting a salon.

Target market
From the survey report, we found that female from a middle-class visit beauty parlor alot.So,we
provide services at moderate pricing which are affordable to them.
The age group of 25-34 visit parlors most which are around 44%, so it means that we provide
services and products that are for young age people and capture styling of modern age group.

Marketing strategies
Social media is the best plate to promote anything nowadays. so our marketing strategy is to
promote our salon through social media.

Survey of people using social media last year

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De Elegance Beauty Salon

Promotions
• Make a page on Instagram and Facebook
• Make short videos of my salon and share them on social media
• Make brochures
• For promotion, give discounts for 1 month on every services.
• For first 5 bridal complete package give 50% off.
• Give membership of one year.

Competitive market
As beauty salon, business is a common business in Karachi. There are many entrepreneurs
Women who start beauty salons/spas. The area where I am going to start my salon has also many
salon-like Fabiolla, Rose, Depilex etc.But it an expanding business so my competitors are these 3

Fabiolla beauty salon

Strength: providing the best services at very reasonable prices gives discounts on bridal
packages mostly capturing the market.

Weakness: poor social networking services never no customer feedback is available.

Rose Beauty Salon:

Strength: They are also training their employees and after training hire the best ones, so they are
investing in a very great way and making their employees skillful.

Weakness: customer handling is not good their ratings on social media are very low, they are
less responsive.

Depilex beauty salon:

Strength: the owner is a very renowned social person.The popularity of this salon is very much
high due to which the promotion and market value of this salon is high.

Weakness: they are focusing on training and social works mostly as compared to providing
beauty services. Now their major focus is on selling their own beauty products.

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De Elegance Beauty Salon

Problems that we aim to resolve:

More than 80% of females are suffering from skin issues and every second woman wants to look
good on normal days or more attractive in any event. We provide the best skin pampering and
makeup services to resolve the issues. We aim to target the middle-class female group so we
provide services that are affordable for them. Our focus is on not using any product which is not
authentic mainly products that we use is organic because due to the polluted weather of Karachi
the skin and hair became very sensitive so we never use anything which becomes allergic for
anyone.

In the coming 3 years we gradually make progress in our salon and providing more services in
future.

Organization chart

Owner and director

Dua Maqsood

Beautician 1

Beautician 2

Hairstylist

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De Elegance Beauty Salon

Business Services
This is a sole proprietorship and thus the owner takes all the capital investments, expenses, and
decisions.
Starting first year we will provide basic skincare services with every type of makeover from the
second year onwards we will start laser treatments for skin problems. From third year, we will
start hair treatments as well like keratin treatment or protein treatments.

1st-year services 2nd-year services 3rd year

Facial Facial
Manicure and Pedicure Manicure and Pedicure
Haircutting/hairstyling Haircutting/hairstyling
Henna application Henna application
makeup makeup
Body massage Body massage
Wax/threading Wax/threading
Acne laser treatment
Dark circles laser treatment
Skin exfoliating treatment
Facial
Manicure and Pedicure
Haircutting/hairstyling
Henna application
makeup
Body massage
Wax/threading
Acne laser treatment
Dark circles laser treatment
Skin exfoliating treatment
keratin treatment
Protein treatments.

The above services is provided according to a

recent done in 2018 regarding parlor services,
so 1sy year services are according to the
largest customer demand.

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De Elegance Beauty Salon

Finance
Start-up Summary
After searching a lot about the salon business idea, I decided to open it in my home. As initially,
I did not have that much investment that I utilize to open my salon separately. Following are the
initial investments that I required for the startup,

Table: Start-up

Start-up

Requirements
Furniture Rs. 100,000

Salon styling stations Rs 150,000

Skincare and Beauty Products Rs. 120,000

Hairdressing kit Rs. 50,000

Manicure and pedicure Equipment Rs. 20,000
Dryer, steamer, hair processors
Rs. 30,000
Accessories
Rs. 30,000

Staff salaries
Rs. 80,000
others
Rs. 25,000

Total Requirements Rs. 605,000

All these investments are done me. I will buy my products and accessories 2 times a
month.

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Products and Services with price
. We will offer the following range of services

Facial

Cleansing Rs 800
Normal facial Rs 1000
Face polish Rs 1200
Herbal facial Rs 1600
Fruit facial Rs 2000

Manicure/Pedicure

Essential manicure Rs. 600

Essential pedicure Rs. 600
Special manicure Rs. 1200
Special pedicure Rs. 1200

Haircutting/hairstyling

Short/ Long hair simple cutting Rs. 300/600

Short/Long hair layer cutting Rs. 800/1200
Blow Dry Rs. 1000
Rebounding Rs. 1500

Hair styling diferent Rs 500-1500

Henna application

Simple front/back only till wrist Rs. 300 for each side
Wedding style mehendi Rs. 600 for each side
Bridal mehendi Rs 1000 for each side

Make-up

Party makeup Rs. 2,500

Nikkah makeup Rs. 6,000
Barat makeup Rs. 12,000
Valima makeup Rs. 11,000
Bridal makeup
With services Rs. 20,000

Body massages
Body scrub Rs. 1500
Aromatic hot oil body massage Rs. 2500
Aromatic oil massange Rs. 2000
Whitening skin polish massange Rs.3000

Wax/threading

Upper lips Rs. 100

Half Hand wax Rs. 300 each
Full hand wax Rs 500 each
Half leg wax Rs. 400 each
Full leg wax Rs. 600 each

Services provide after one year

Acne laser treatment Rs. 50,000

Services provide after 2 year

Keratin hair treatment Rs. 2500

Protein treatment Rs 1500
First-year financing
Forecasted expenses
investments 1st half of a month 2nd half of a month Total expense of a
year
Beauty products Rs.50,000 Rs. 50,000 Rs. 1,200,000
Accessories Rs.15,000 Rs. 15,000 Rs 600,000
Transportation Rs. 2,000 Rs. 2,000 Rs 48,000
Employee Salary - Rs. 60,000 Rs. 720,000
Electricity bills - Rs. 20,000 Rs. 240,000
Total expense of one
year Rs. 1,728,000

Forecasted sales

Services are given to customers Total earning of a year

Threading/wax Rs. 300,000
Hairstyling Rs 210,000
Makeups Rs. 290,0000
Body massage Rs. 264,000
Facial Rs. 328,000
Mehndi Rs. 368,000
Manicure and pedicure Rs. 260,000
total Rs. 2020000

Cash in a year = Rs 1,728,000

Cash out in a year = Rs 2,020,000
Profit = Rs 292,000

Second-year financing

investments 1st half of a month 2nd half of a month Total expense of a

year
Beauty products Rs.50,000 Rs. 50,000 Rs. 1,200,000
Accessories Rs.15,000 Rs. 15,000 Rs 600,000
Transportation Rs. 2,000 Rs. 2,000 Rs 48,000
Employee Salary - Rs. 80,000 Rs. 960,000
Electricity bills - Rs. 20,000 Rs. 240,000
Acne laser treatment Rs. 200,000 - Rs. 200,000
machine
The total expense of
the second year Rs. 1,948,000
Forecasted sales
Services are given to customers Total earning of a year
Threading/wax Rs. 300,000
Hairstyling Rs 310,000
Makeups Rs. 590,000
Body massage Rs. 364,000
Facial Rs. 532,000
Mehndi Rs. 268,000
Manicure and pedicure Rs. 560,000
Laser acne treatment Rs 600,000
total Rs. 3,524,000

Cash in a year = Rs 1,948,000

Cash out in a year = Rs 3,524,000
Profit = Rs 1576000

Third year financing

Forecasted expenses

investments 1st half of a month 2nd half of a month Total expense of a

year
Beauty products Rs.50,000 Rs. 50,000 Rs. 1,200,000
Accessories Rs.15,000 Rs. 15,000 Rs 600,000
Transportation Rs. 2,000 Rs. 2,000 Rs 48,000
Employee Salary - Rs. 100,000 Rs. 960,000
Electricity bills - Rs. 20,000 Rs. 240,000
Acne laser treatment Rs. 200,000 - Rs. 200,000
machine
Keratin treatment kit Rs. 30,000 Rs 30,000 Rs 720,000
Protein treatment kit Rs. 20,000 Rs. 20,000 Rs. 480,000
The total expense of
the second year Rs. 3,208,000

Forecasted sales

Services are given to customers Total earning of a year

Threading/wax Rs. 350,000
Hairstyling Rs 460,000
Makeups Rs. 630,000
Body massage Rs. 334,000
Facial Rs. 542,000
Mehndi Rs. 288,000
Manicure and pedicure Rs. 580,000
Laser acne treatment Rs 650,000
Keratin treatment Rs. 120,000
Protein treatment Rs 100,000
Total Rs. 4,054,000

Cash in a year = Rs 3,208,000

Cash out in a year = Rs 4,054,000
Profit = Rs 846,000

Break even analysis

In the first year, we achieved our breakeven point as shown in the graphical
analysis of 3 year financing.
Three years financing
years 1st year 2nd year 3rd year
Expenses Rs 1,728,000 Rs 1,948,000 Rs 3,208,000
Sales Rs 2,020,000 Rs 3,524,000 Rs 4,054,000
Profit Rs 292,000 Rs 1576000 Rs 846,000

Cashflow diagram

Cash out

Cash in
Supply chain flow
 Designed for: Designed by: Date: Version:

Lean Canvas Beauty salon business Dua Maqsood 16/Jan/2022 00

Problem Solution Unique Value Proposition Unfair Advantage Customer Segments

Skin and hair treatment issue
Quality compromising in the
products used in salons
High rates of services in the
salon
Use organic products for skin
and hair treatments
Services provided at
reasonable prices
Provide services at good The initial investment is given The middle-class female of
prices with the best products. by my father. age group from 15-40 of
Karachi.
Did a beautician course.

Existing Alternatives Key Metrics High-Level Concept Channels Early Adopters

Fabiolla Beauty salon Services Use organic products for their Instagram Teenagers and Brides.
services.
Rose Beauty Salon Safe and relaxing Facebook
environment
Depilex Beauty Parlor WhatsApp
Profit

Cost Structure Revenue Structure

Initial investments Services of bridal makeup and hairstyling and facial services generate most
Product Purchasing revenue
Services costs
Employees salaries
Electricity Bills