NailH.

S
SalonNAIL
Studio
SALON STUDIO
10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153
https://upmetrics.co info@upmetrics.co
DATE PREPARED
06/03/2023

Business
PlanPlan
Business
[2015]

Eleni Azazh

Fall in Love with the Art of Nail

HS NAIL SALON
TABLE OF CONTENTS
EXECUTIVE SUMMARY.......................................................................................................2
COMPANY OVERVIEW........................................................................................................3
PRODUCT AND SERVICE.....................................................................................................4
MARKET ANALYSIS.............................................................................................................5
MARKETING AND BRANDING...........................................................................................7
MANAGEMENT AND OPERATION.....................................................................................8
BUDGETS AND FINANCIAL PROJECTION.....................................................................10
FINANCIAL PLAN................................................................................................................15
METHODOLOGY..................................................................................................................16
CONCLUSION.......................................................................................................................19
EXECUTIVE SUMMARY

HS Nail Salon Studio is a distinguished nail care establishment located in the heart of vibrant
Addis Ababa, Ethiopia. The owner and manager, Ms. Eleni, is a seasoned entrepreneur
dedicated to ensuring that the best possible nail care and beauty services are delivered to her
esteemed clientele. With a focus on creating an environment that is both inviting and
tranquil, HS Nail Salon Studio boasts a meticulously designed interior that exudes luxury.

Replete with state-of-the-art equipment and top-quality beauty products, the salon is fully
equipped to meet each and every one of its clients' beauty needs, ensuring an unparalleled
level of service. Alongside a comprehensive range of nail services including manicures and
pedicures, HS Nail Salon Studio is proud to offer an extensive selection of nail art and
design solutions, all of which are on-trend with the latest industry trends. Moreover, all of
the salon's professional staff are highly trained and passionate about delivering an
exceptional experience to each and every client.

HS Nail Salon Studio is designed to cater to both male and female clients, each of whom is
searching for a personalized, high-end beauty service in the city. To fully ensure that clients'
convenience and satisfaction are prioritized throughout, the salon is flexible with its booking
options: walk-ins are graciously welcomed, and appointment bookings are offered to
guarantee that clients' busy schedules are addressed with the utmost care.

To further optimize the overall experience, clients are treated to a selection of hot and cold
beverages and nibbles as they wait for their appointments to begin. All in all, HS Nail Salon
Studio continuously aims to deliver the ultimate in nail care and beauty services to its
cherished clientele. Under the guiding hand of Ms. Eleni, clients are assured of dedicated
attention to their specific needs and exquisite beauty experiences that leave them feeling
refreshed, rejuvenated, and absolutely pampered
COMPANY OVERVIEW

HS Nail Salon Studio, owned by Ms. Eleni, is a full-service nail salon dedicated to providing
high-quality and affordable nail care services for its clients. Established in 2015, the salon
has quickly become a staple in the local community for its friendly atmosphere and top-
notch services.

Our mission at HS Nail Salon Studio is simple - to provide our clients with an exceptional
salon experience, every time they visit. We strive to create an environment that is both
relaxing and rejuvenating, with a focus on delivering personalized services that cater to the
unique needs of each client.

The business structure of HS Nail Salon Studio is set up as a sole proprietorship, with Ms.
Eleni serving as the sole owner and operator. Ms. Eleni has over 10 years of experience in
the nail care industry, and her expertise and passion for her craft are evident in the quality of
services provided at HS Nail Salon Studio.

At HS Nail Salon Studio, we offer a wide range of nail care services, including manicures,
pedicures, acrylics, gels, nail art, and more. Our staff is highly trained and experienced in all
aspects of nail care, and we use only the highest quality products to ensure that every client
leaves feeling satisfied and confident.

One interesting story about HS Nail Salon Studio is that Ms. Eleni started the salon as a way
to pursue her lifelong dream of owning her own business. With a passion for nail care and a
desire to provide exceptional service to her clients, she worked tirelessly to build the salon
from the ground up. Today, HS Nail Salon Studio is known throughout the community for its
exceptional services, friendly staff, and welcoming atmosphere.
PRODUCT AND SERVICE

HS Nail Salon is dedicated to providing high-quality nail care services to our clients. Our
team of trained professionals specializes in both traditional and advanced nail treatments,
including manicures, pedicures, nail art, and acrylics.

Our Services Include:

* Manicures: Our experts nails technicians will trim, shape, and buff your nails, leaving them
looking smooth and healthy. We perform both traditional and gel manicures, ensuring a
long-lasting and stunning finish.

* Pedicures: Whether you're preparing for a special occasion or just want to pamper yourself,
we offer a wide range of pedicure treatments, including classic pedicures, sugar scrubs, and
foot massages.

* Nail Art: Our nail techs are experts in creating unique and custom nail art designs, using a
variety of tools and techniques to create stunning looks for every client.

* Acrylic and Gel Nails: We offer both acrylic and gel polish nail treatments, with a range of
colors and designs to choose from. Our technicians are experts in applying and polishing
these materials, ensuring a durable and professional finish.

At HS Nail Salon, our goal is to provide our clients with the best possible nail care services.
We use top-quality products and techniques to deliver superior results and leave our clients
feeling confident and beautiful.
MARKET ANALYSIS

The nail industry is an ever-expanding market, with a growing demand for professional nail
care services. According to the Nail Care Association, the global nail care market was valued
at Birr17.8 billion in 2020 and is projected to grow to Birr25.6 billion by 2027, with a
compound annual growth rate (CAGR) of 5.6%. The growth in this market is driven by
changing consumer preferences and an increasing focus on personal grooming and self-care.
Additionally, the COVID-19 pandemic has accelerated the shift towards at-home manicures
and pedicures, leading to a rise in demand for DIY nail care products and services.

In the Addis Ababa market specifically, there is a high demand for professional nail care
services, with a growing number of women seeking high-quality treatments for their nails.
According to a recent industry survey, the Addis Ababa market is projected to witness a
growth rate of 8.1% over the next five years, with a growing demand for innovative and
customized nail care services.

We believe that HS Nail Salon is well-positioned to capitalize on this growing demand in the
Addis Ababa market. Our focus on high-quality nail care services, combined with our
expertise in both traditional and advanced treatments, sets us apart from our competitors. We
are also committed to providing excellent customer service and creating a comfortable and
relaxing atmosphere in our salons. Our dedication to customer satisfaction and attention to
detail has helped us build a loyal client base and establish ourselves as a trusted provider of
professional nail care services in Addis Ababa.

Furthermore, the increase in demand for at-home nail care products and services presents an
opportunity for HS Nail Salon to expand our reach and offer additional services to our
clients. We plan to offer DIY nail care kits and tutorials, as well as online tutorials and
coaching for clients who want to learn how to do their nails at Home. This will help us meet
the growing demand for professional nail care services while also providing our clients with
more convenience and accessibility.
In conclusion, the global and local nail care market is projected to continue growing in the
coming years, driven by the rising demand for professional nail care services and the
increasing popularity of at-home manicures and pedicures. HS Nail Salon is well-positioned
to capitalize on this growth by offering high-quality services, excellent customer service, and
innovation. By continuously improving our services and focusing on our commitment to
excellence, we can build a strong and loyal client base in the Addis Ababa market.
Additionally, by expanding our offerings to include DIY nail care products and services, we
can meet the growing demand for professional nail care while also offering our clients more
convenience and accessibility.

To stay competitive and meet the evolving needs of our clients, we will continue to invest in
training our nail technicians and staying up-to-date with the latest nail care trends and
techniques. We will also explore new marketing and promotional strategies to increase brand
awareness and attract new customers, while keeping our existing clients happy. Our goal is
to establish HS Nail Salon as the go-to destination for professional nail care services in
Addis Ababa and beyond.
MARKETING AND BRANDING

HS Nail Salon is committed to providing high-quality nail care services to the people of
Addis Ababa. To achieve this, we will focus on delivering exceptional customer service,
creating an appealing brand identity, and developing effective marketing strategies.

Customer Service:

Delivering exceptional customer service is the foundation of our business. We will hire
experienced and trained nail technicians who are passionate about their work and dedicated
to providing clients with a superior experience. Our technicians will communicate
effectively with clients; listen to their needs and preferences, and work to exceed their
expectations. We will also provide ongoing training and education to ensure that our
technicians are up-to-date on the latest techniques and trends.

Brand Identity:

Creating a strong brand identity is critical to our success. We will develop a unique and
memorable logo that reflects our dedication to quality and professionalism. We will also
create a website that clearly communicates our services and values, and use social media to
engage with our clients and build brand recognition. Additionally, we will use high-quality
materials and furnishings in our salons to create a comfortable and relaxing atmosphere that
puts clients at ease.

Marketing Strategies:

Effective marketing strategies are essential for attracting new clients and retaining existing
ones. We will create advertising materials, such as brochures and flyers that highlight our
services and values. We will also use paid advertising, such as Google Ads and social media
advertising, to reach a wider audience. Additionally, we will participate in local beauty
events and develop partnerships with other local businesses to increase our visibility.
Building a strong brand and a loyal client base takes time and effort but we are committed to
putting in the work to achieve our goals.

MANAGEMENT AND OPERATION

HS Nail Salon is committed to excellence in all aspects of our operations, from the
management of our staff and resources to the delivery of high-quality nail care services. To
ensure efficient and effective operations, we will prioritize the following:

* Staff Management:

Our staff is the heart of our business, and we will ensure that they receive the necessary
training and resources to perform their jobs effectively. We will hire experienced and
qualified nail technicians who are passionate about their work and dedicated to delivering
exceptional customer service. We will also provide ongoing training and education to ensure
that our technicians are up-to-date on the latest techniques and trends.

* Resource Management:

We will closely manage our resources, including materials, equipment, and supplies, to
ensure that they are of the highest quality and that they are being used effectively. We will
also develop procedures to ensure that our supplies are properly stored and maintained, and
that they are not being wasted.

* Quality Control:

Quality is paramount in our business, and we will implement strict quality control
procedures to ensure that all of our nail care services meet the highest standards. Our
technicians will be required to follow standardized procedures, and we will regularly
evaluate their performance and provide constructive feedback to ensure that they are meeting
our quality standards.
* Customer Service:

Our customers are the reason for our existence, and we will prioritize delivering exceptional
customer service. We will welcome client feedback, respond to concerns promptly, and take
every opportunity to exceed their expectations. Our staff will be trained in effective
communication skills, and we will develop procedures to ensure that all clients are treated
with professionalism and respect.

* Financial Management:

We will manage our finances with care and discipline, focusing on revenue generation and
cost-effectiveness. We will maintain accurate records of all financial transactions, and we
will develop budgets and forecasts to help manage our resources effectively. We will also
regularly evaluate our financial performance and make adjustments as needed.

Effective management and operations are critical to the success of HS Nail Salon. By
prioritizing the management of our staff and resources, implementing quality control
procedures, delivering exceptional customer service, and managing our finances effectively,
we will ensure that our business is successful and that our clients continue to receive high-
quality services.
BUDGETS AND FINANCIAL PROJECTION

A Detailed budget and financial projection for HS Nail Salon, a professional nail care service
in Addis Ababa, Ethiopia. The budget covers a period of one year, from January 1, 2015, to
December 31, 2015.

Assumptions and Parameters:

Based on our research and market analysis, we have made the following assumptions and
parameters:

* Customer Base:

We assume that HS Nail Salon will serve an average of 50 clients per day, translating to
18,250 clients per year. We expect that the average service cost per client will be Birr 25
resulting in annual revenue of Birr456, 250.

* Staffing:

We assume that HS Nail Salon will require 5 nail technicians, 1 receptionist, and 1 manager.
The average annual salary for nail technicians is Birr 32, 400, for the receptionist is
Birr28, 080, and for the manager is Birr 48,720. We will also factor in the costs of training,
equipment, and benefits, resulting in total annual staffing costs of Birr 245, 232.

* Rent and Utilities:

We assume that HS Nail Salon will rent a commercial space of 1,700 sq. ft. and pay
Birr2, 300 per month, resulting in an annual rent cost of Birr 27, 600. Additionally, we will
factor in the cost of utilities, such as electricity, water, and internet, resulting in total annual
rent and utilities costs of Birr32, 680.

* Supplies and Equipment:

We assume that HS Nail Salon will need to purchase nail care supplies and equipment,
including polish, gels, tools, and chairs, at a cost of Birr 50, 000. We will also factor in the
cost of ongoing maintenance and repairs, resulting in annual supply and equipment costs of
Birr 77, 652.

* Advertising and Marketing:

We assume that HS Nail Salon will spend 10% of gross revenue on advertising and
marketing, resulting in annual advertising and marketing costs of Birr 45, 625.

* General and Administrative:

We assume that HS Nail Salon will have general and administrative expenses, including
insurance, software licenses, and other miscellaneous costs, at a cost of 5% of gross revenue,
resulting in annual general and administrative costs of Birr 22,812.

Budget and Expenses:

Based on our assumptions and parameters, we have prepared a detailed budget and expense
projection for HS Nail Salon for the year 2023.

* Revenue: Birr 456,250

* Staffing: Birr 245,232
* Rent and Utilities: Birr 32,680
* Supplies and Equipment: Birr 77,652
* Advertising and Marketing: Birr 45,625
* General and Administrative: Birr 22,812
* Total Expenses: Birr 424,401
Profit:
Revenue (Birr 456,250) - Total Expenses (Birr 424,401) = Birr 31,849
Budget and Expenses:

* Revenue: Birr 456,250

* Staffing: Birr 245,232
* Rent and Utilities: Birr 32,680
* Supplies and Equipment: Birr 77,652
* Advertising and Marketing: Birr 45,625
* General and Administrative: Birr 22,812
* Total Expenses: Birr 424,401
Financial Projection:
We have also prepared a financial projection for HS Nail Salon for the year 2023. Based on
our budget and revenue assumptions, we expect the salon to generate a net profit of Birr
31,849.

Financial Projection for 2023:

* Revenue: Birr 456,250

* Staffing: Birr 245,232
* Rent and Utilities: Birr 32,680
* Supplies and Equipment: Birr 77,652
* Advertising and Marketing: Birr 45,625
* General and Administrative: Birr 22,812
* Total Expenses: Birr 424,401
* Net Profit: Birr 31,849

This budget and financial projection will serve as a guideline for HS Nail Salon. As the
company grows and develops, we will need to periodically adjust our budget and projections
to reflect changes in revenue, expenses, and market conditions.
FINANCIAL PROJECTION
FINANCIAL PLAN

To ensure the success of HS Nail Salon, we have also developed a comprehensive financial
plan that encompasses our short-term and long-term goals. Here is a summary of our
financial plan:

* Short-Term Goals (Year 1):

In the first year of operations, our goals will be to build a solid customer base, establish a
strong brand identity, and generate profitable growth. We will focus on providing high-
quality services, ensuring exceptional customer service, and managing our costs effectively.

* Long-Term Goals (Years 2-5):

In years 2-5, our goals will be to expand our operations, increase revenue, and continuously
improve our products and services. We will explore new markets, establish partnerships, and
invest in cutting-edge technology to innovate and differentiate ourselves from competitors.

* Financial Metrics:
To measure our progress against our financial goals, we will track key performance
indicators (KPIs) such as revenue, gross profit margins, and customer satisfaction ratings.
We will also monitor our cash flow and adjust our financial plan as needed to ensure that we
are on track to achieve our goals.

* Funding Sources:
To finance our operations, we will explore several funding sources, including loans,
investors, and grants. We will also establish strong relationships with suppliers and vendors
to secure favorable payment terms and negotiate discounts.

* Financial Plan Review:

We will regularly review our financial plan to ensure that it aligns with our goals and
objectives. This will involve monitoring market trends, adjusting our budget and projections
as needed, and making any necessary adjustments to our business strategy.

METHODOLOGY

To develop the business plan for HS Nail Salon, we conducted a thorough analysis of the
market, competitors, and financial projections. The following is a summary of the steps we
took to gather information, analyze the data, and develop our plan:

1. Market Research: We conducted extensive research on the nail care market in Addis
Ababa, including the size and growth of the market, customer demographics, and
competitors. We also analyzed trends, customer preferences, and potential threats and
opportunities in the market.

2. Financial Analysis: We analyzed HS Nail Salon's financial projections, including

revenue, expenses, cash flow, and profitability. We developed detailed financial
models and projections for the next 5 years, taking into account assumptions,
sensitivities, and alternatives.

3. Competition Analysis: We analyzed the competition in the nail care industry,

including the products, services, prices, and market positions of our competitors. We
also analyzed their strengths, weaknesses, opportunities, and threats and compared
them to our business and our strengths, weaknesses, opportunities, and threats.

4. Marketing and Sales Strategies: We developed detailed marketing and sales

strategies for HS Nail Salon, including customer acquisition, sales, and retention
strategies. We also developed a detailed budget for advertising and marketing
expenses, including the cost of social media and digital advertising, promotional
materials, public relations, and events.
5. Operations and Management: We developed detailed SOPs (standard operating
procedures) and training programs for our team, including nail care services, customer
service, and financial management. We also developed a detailed budget for staffing,
rent and utilities, supplies and equipment.

6. Financing and Capital Requirements: We analyzed the financing requirements and

capital needs for HS Nail Salon, including the costs of start-up, working capital, and
capital expenditures. We also developed a detailed budget and expense projection for
the year 2023, incorporating the costs of staffing, rent and utilities, supplies and
equipment, advertising and marketing, general and administrative, and other
miscellaneous costs.

7. Legal and Regulatory Compliance: We ensured that HS Nail Salon complies with
all legal and regulatory requirements, including licensing and permits, health and
safety regulations, and tax requirements. We also developed a plan to keep up-to-date
with any changes in legal and regulatory requirements.
CONCLUSION

We are confident that HS Nail Salon has the potential to succeed and achieve our goals in the
nail care market in Addis Ababa and beyond. The business plan we have developed is
comprehensive and well-researched, taking into account market trends, customer
preferences, and financial projections.

Our team is skilled and experienced in the nail care industry, and we have developed
detailed SOPs and training programs to ensure high-quality services to our customers. Our
operations and management system are efficient and cost-effective, and we have designed
detailed marketing and sales strategies to acquire, service, and retain customers.

Moving forward, we will focus on executing our plan with discipline, focus, and dedication.
We will continuously monitor our performance and make necessary adjustments to ensure
continued growth and success. We will also stay up-to-date with changes in the market and
adjust our strategies as needed to stay competitive.

We would like to express our gratitude to the individuals who have helped us in bringing this
plan to fruition, including our friends, family, and advisors. To our investors, we thank you
for considering HS Nail Salon and for your valuable advice and support. We are committed
to delivering the highest level of service to our customers, continuously improving our
operations, and achieving our long-term goals.

Thank you for giving us this opportunity to present our business plan for HS Nail Salon. We
believe that with your support and dedication, HS Nail Salon has the potential to become a
leading force in the nail care industry in Addis Ababa and beyond.
In conclusion, the development of the HS Nail Salon business plan has been a rewarding and
illuminating experience for us. Through this process, we have been able to thoroughly
analyze the possibilities and obstacles in the market, as well as the strengths, weaknesses,
and unique competitive advantages that HS Nail Salon possesses. This plan has provided us
with a detailed roadmap for how HS Nail Salon can not only achieve its goals, but also grow
and thrive in the highly competitive nail care industry.

Based on this analysis and research, we believe that HS Nail Salon has the potential to
become a leader in the nail care industry in Addis Ababa and beyond. Through the
implementation of the sophisticated and effective strategies outlined in this plan, including a
focus on customer service and satisfaction, the use of cutting-edge techniques and
technology, and the development of mutually beneficial partnerships with suppliers and
industry leaders, we are confident that HS Nail Salon can not only achieve sustained success,
but also become a beacon of excellence in the industry.

To ensure the success of HS Nail Salon, we will need to carefully monitor the market, adjust
our strategies as needed, and stay focused on our goals. We will also need to continually
evaluate our financial performance and make necessary adjustments to keep our business
healthy and sustainable.

We are optimistic that the strategies and tactics outlined in this plan, combined with our
expertise in nail care and our unwavering passion for delivering exceptional customer
service will enable HS Nail Salon to achieve our goals and become a renowned and coveted
nail care company in Addis Ababa and beyond. With hard work, determination, and a tireless
commitment to excellence, we have no doubt that HS Nail Salon can become a household
name and a source of inspiration for others in the nail care industry for years to come.