HAIR-GLOW SALON

FEASIBILITY STUDY

SUBMITTED BY:
SACULINGAN, LOYMARK
CASES MICHEALA GRACE
ARANDOQUE, ANGELOU
ENTROLISO, GENEROSE
CABUSAS, WYN CLAIRE
TADLAS, HONEY LOU
BAYLON, EDEN MAE
LASTIMOSO, JELLY

SUBMITTED TO: MRS. DELFA C. DAGO

 TABLE OF CONTENTS

Executive Summary

Introduction
Nature of the business
Significant of the study
Objective of the study
Scope and limitations of the study
Identification of the swot analysis
Methodology
Marketing Feasibility

 Description of industry
 Demographic characteristics
 Status of Competition
 Sales Projection
 Competition Analysis

Management aspect

 Name of business
 Type of business
 Office of the business, their job qualification and job description
 Fringe
 Compensation package
Technical Feasibility

 Delivery of the product

 Machine and Equipment ( furniture, fixture )
 Location
 Utilities
 Waste disposal
 Product preparation and process

Financial feasibility

 Start- up Capital
 Source of capital
 Salary
 Organizational chart

Conclusion and Recommendation

Chapter 1

Executive summary
The name of our business is Hair - Glow salon. We combine the word hair with Something Glow
and come up the name Hair- Glow. We choose this kind of Business because we all know that
Filipino's are very conscious in terms of grooming.
The location of our business is located at P-5 Sinayawan Valencia City in front of Sinayawan
Central School. There are two objectives: first, is to determine the profitability of Hair- Glow
Salon and second, is to determine its potential penetration to the market.

1. INTRODUCTION
The Hair- Glow is a venture salon whose main idea is to satisfy the costumers and individual
with beauty necessities. This salon will provide services such as doing hair rebonding, hair
treatment, hair trimming, make - up services, manicure and pedicure. According to Ezell, James
and Gassenheime, as a beauty remains a marketable service, beautician must have developed this
idea in order to Target the women and teenagers who seek beauty services (Ezell, Mute,
MaCurley, 2015). But hair - glow salon in not only focusing for women and teenagers but all
individual who want to be gorgeous and glow.

1.2 Nature of business

We selected the "Hair-Glow Salon" for our business name because we will be focusing on hair
grooming with something different. What makes our business different is that we will be using
the latest technology to attract customers. Nowadays people are in to making or getting things
done easily, so we decided to use the latest technology in the grooming service and at the same
time in the entertainment.

1.3 Significance of the study

Hair- Glow salon is open for all individuals who want to be look good and gorgeous especially
the teacher, the students, the residents in Purok 5 Sinayawan, the jeepney drivers or any
vehicular driver.

1.4 Objective of the study

The main goal of Hair-Glow Salon is to provide quality services with enthusiasm to exceeds
costumer expectation to increase number of customers and to make them more satisfied to
provide and contribute employment and opportunity.

1.5 Scope and limitations of the study

The main focus of Hair- Glow salon is to make everyone look good pleasant in their physical
appearance by providing them the best hair grooming and cosmetic treatment services. Aside
from that, we assure that we are using the standard and a high quality technology to make our
customers satisfied and give their expectations. Hair -Glow salon is not only for women but also
men and children who are capable enough to take care their selves. The target age for this
business was 15 years old above. All individuals are welcome as long the salon can cater and
provide their needs and wants. It covers the whole area of barangay Sinayawan Valencia City.

SWOT ANALYSIS

STRENGTHS
 We have enough capital to start- up a salon business.
 We are good in sales talk.
 We know something about business management because of our applied economics class.
 We have enough resources.
 Our workers are skillful.
WEAKNESSES
- Lack of proper stylish training
- Poor customer care.
- Taxes
- Employee compensation
OPPORTUNITIES
 other salon are lack of money for thier capital-
 We are close to school.
 Few similar stores in our chosen place.
 We have a good quality.

THREAT'S
 Our capital will not grow.
 Competitors
 We may not attract customers.
 We may not find serious costumers
.

METHODOLOGY

As we rounded the location where we established our business, we observed that there is no kind
of parlor the same with ours. Even though there are some parlors in the area, we assure that Hair-
Glow salon will be on the top. The result of our survey show that people in our Target area prefer
a salon with something different that's why we push through salon with free access on wifi to all
of our customers and free make- up. It gave us guts that people in the are will choose our salon
since it has an entertainment.
MARKET FEASIBILITY

2.1 Description of Industry

A salon industry deal with personal growing refers to the salon service industry. The salon
service will always remain in high demand because it is a necessity.
"Salon" generally refers to the type of business that gives whatever style you want. During a
relatively brief period of time, the salon industry has helped to transform economy, employment,
and popular hairstyles. The whole experience of going to a salon has become habitual.
Salon offers different services for your hair, face, and nails in an affordable price. It gives you
more self-confidence because it transform your physical look into a new you.
Attracting huge customers to salon requires more than just an affordable price. Though
important, an affordable price, price is only a part of a Salon experience. Equally important in
believe to be the way the customers be satisfied in the service. This physical and emotional
response is a result of the atmosphere, the total environment which customers are exposed. The
salon must take care of the following to please its customers. This includes checking the
cleanliness of the place, standard of the services and security in the area.

2.2 Demographic Characteristics

Since our business venture is located in front of Sinayawan Central School, Barangay
Sinayawan, Valencia City. The following are our potential customers:

 Teachers
 -Students
 -Residents
 -Jeepney Drivers and any vehicular drivers
 -Passers – by

2.5 Status of Competition

As we rounded the location where will put our business, we observed that there is no kind of
parlor the same with ours. Even though there are some parlors in the area, we assure that Hair
Glow salon will be on top.

The result of our survey shows that people in our target area prefer a Salon with something
different that's why we push through with a Salon with a free access of Wi-Fi and with free make
up. It gave us guts that people in the area will choose our Salon since it has an entertainment.

2.6 Sales Projection

Services Amount Number of costumers /a day Sales
Hair cut 70 10 500
Hair Rebond 1,500 3 4,500
Hair Relax 1,200 3 3,000
Manicure 100 5 500
Pedicure 100 8 800
Hair curling 1,000 3 3,900
Hot oil 780 4 3,120

COMPETITION ANALYSIS
Our salon Hair Glow is a beauty salon with the main goal is satisfying the everyday look of
every customers. By this we meant hairstyles, manicure, pedicure and make up services. This
idea of a business came to us to gives confident in every customer. To satisfy their needs and
wants to take care of their image and be implacable and ready to go to work without spending
much time and money on it. Our major competitors are beauty salons and spas that offer mainly
similar services as our business at different range of prices. Among our competitors we found
Scarlett DelaRea Beauty Salon and Jiji Beauty Salon. The Hair Glow beauty salon attempts to
offer the busy customers a quick different vibe when they decided to glamorize themselves just
at the cost of a membership, which makes us competitors in the industry.

MANAGEMENT ASPECT

NAME OF BUSINESS – HAIR GLOW SALON

TYPE OF BUSINESS – PARTNERSHIP

OFFICERS OF THE BUSINESS, THEIR JOB QUALIFICATION, AND JOB

DESCRIPTION

JOB QUALIFICATION FOR CEO:

 Proven experience as CEO or in other managerial position.

 Experience in developing profitable strategies and implementing vision
 Strong understanding of corporate finance and performance management principles
 Familiarity with diverse business functions such as marketing, finance etc.
 In-depth knowledge of corporate governance and general management best practices.
 An entrepreneurial mindset with outstanding organizational and leadership skills
 Must be good in analytical and solving problem skills
 Excellent communication and public speaking ski
JOB DESCRIPTION FOR CEO:

 Develop high quality business strategies and plans ensuring their alignment with short-term
and long-term objectives
 Lead and motivate subordinates to advance employee engagement develop a high performing
managerial team
 Oversee all operations and business activities to ensure they produce the desired results and
are consistent with the overall strategy and mission
 Make high-quality investing decisions to advance the business and increase profits
 Enforce adherence to legal guidelines and in-house policies to maintain the company’s
legality and business ethics
 Review financial and non-financial reports to devise solutions or improvements
 Build trust relations with key partners and stakeholders and act as a point of contact for
important shareholders
 Analyze problematic situations and occurrences and provide solutions to ensure company
survival and growth
 Maintain a deep knowledge of the markets and industry of the company

QUALIFICATION FOR MANAGER

 Must be graduated 4 years in management course

 Male or female
 Well Groomed
 Has at least 2 years of similar working experience in a beauty salon.
 Manager carry out the functions of planning, organization, leading and controlling in the
business with the qualification of four years course graduate / 2 years of experience in
marketing world.

JOB DESCRIPTION FOR MANAGER

 Ensure the clients are serviced effectively.

 Monitor customer experience within the salon.
 Deal with general inquiries from staff and clients of the salon.
 Monitor the hygiene and cleanliness of the salon.
 Monitor the application of the safety standards of the salon and legal regulation.
 -Manage client repeat booking rates to drive loyalty.
 Train staff to improve customer experience, product, and revenues.
 Motivate staff to ensure that they are fully engaged.

JOB QUALIFICATION FOR OIC

 Must be graduated 4 years in management course

 Male or female
 Well groomed
 Has a least 2 years of similar working experience in a beauty parlor

JOB DESCRIPTION FOR OIC

 The officer in charge authorized by the Company to oversee, coordinate, direct, and manages
all aspects of the contract work as needed.
FRINGE BENEFITS

 Complimentary in salon services.

 Discount for family members in all services.
 All thermal styling tools are provided.
 The best leadership and management you will ever find.
 Thirteen month pay.

COMPENSATION PACKAGE

Salaries insurance paid leave supplemental pay retirement savings

3%

3%

5%

30%

6%
WORKING /OFFICE HOURSE

Open most days about 7:00am

We closed about 8:00pm

BUSINESS POLICIES

Hair Glow Salon Hygiene Standards

 Client risk assessment and temperature check

 Hair tech salon comply with social distancing
 Disinfecting high touch areas between client
 Using disposable equipment where possible
 Sterilizing all reusable items
 Restricting client numbers
 Allowing extra time between client for cleaning
 No longer serving beverages
 Staff are wearing requires personal protective equipment
 Daily deep clean of the salon.

TECHNICAL ASPECT

DELIVERY OF THE PRODUCT

In our new established business, we give our customers a very satisfying service. Customers may
avail our service from 7:00 in the morning until 8:00 pm in the evening. If our valued customers
do not have time to come in our parlor, we can give them a home service. We also offer services
for special occasions. We also challenge ourselves to give them the best service. Our deal if they
were not satisfied with the services we gave, we can give them another make-over for half the
price.

3.2 MACHINE AND EQUIPMENT NEEDS

• Machine and equipment
TOTAL PRICE
QUANTITY
UNIT PRICE

WiFi (load)
1
Php 999

Air condition
1
Php 10, 000

Blower
2
Php 3, 000

Hair iron and curler

2
PHP 2, 400

Hot oil machine

1
PHP 9, 500
Total price: 25,899

• Forniture and Fixture

TOTAL PRICE
QUANTITY
UNIT PRICE

Bowl 1
Php 2, 500

Hydrolic chair
4
Php 7, 596

Mirror
4
Php 2, 348

Total price: 12,444

• Materials and supplies

QUANTITY
UNIT PRICE
TOTAL PRICE

Foot lotion
500ml
Php 480
Php 480

Hair conditioner
1 gal/3500ml
Php 380
Php 380

Hair wash shampoo

1gal/3500ml
Php 520
Php 520

Hot oil
1gal/3500ml
Php 650
Php 650

Manicure set
2
Php 800
Php 1,600

Make up set 1
Php 1800
Php 1,800
Scissors 4
Php 180
Php 720

Talcum powder
500ml
Php 250
Php 250

Total price: 6,400

Total expenses: 44,743

3.3 LOCATION
The proposed business and processing site will be operated at P-5 Sinayawan Valencia City
infront of Sinayawan Central School. We have seen that the place will be suitable for building a
Hair Glow Salon because it is away from residential areas. It is also accessible since it is along
the road.

Figure 1.Sinayawan Valencia City Bukidnon

UTILITIES
A.Electricity: php 8, 000/ month
- Aircon
- Lights
- Hot oil machine
B.Water: php 5, 000/ month
C. Rent: Php 1, 300/ month

WASTE DISPOSAL
Since our business deals with hair make over or haircut, we will be producing a large amount of
hair wastes. So we decided to place three trashcans will be placed outside our salon for
biodegradable and non- biodegradable wastes. The other trashcan will be placed inside our
salon for the disposal of hair waste. We will make wigs, hair extensions, false eyelashes and
false beards from the hair wastes we will collect. With that, we can have an extra income for
our salon.
PRODUCT PREPARATION AND PROCESS

The process of production should be practiced very well and perfected to have a product with a
high standard and quality that will be best suited for it's customers. All employees/workers
must be trained proficiently and must be very knowledgeable on how the process of production
goes as well as the proper use of facilities and equipment. The Business should also see to it
that there are enough raw materials so as not to delay the production process.

Financial Feasibility

Start -Up capital

We have added all the equipment we will need to start our business and the total is 59,043 pesos
or 100,000 to be safe in case of other materials to be needed in the future. Furniture and fixture

Equipment Price
Bowl 2, 500
Hydrolic chair 7, 596
Mirror 2, 348
 Total 12, 444

Materials and supplies

Materials Price
Foot lotion 480
Hair conditioner 380
Hair wash 520
shampoo
Hot oil 650
Manicure set 1 600
Make up set 1 800
Scissors 720
Talcum power 250
Total 6, 400

Machine and equipment

Total price: 25, 899
Utilities
Electricity, water, rent - 14 300
Total expenses: 59, 043
Sources of capital
We, the hair glow salon will get in from our savings since we need at least 100, 000. We
divided it into three since there are 3 person will combining our savings, each will contribute
33, 333
Salary
For the salary of our business we will be going to each of the workers thier salary per month
depending on their job specifications. Their salary will still increase as time passes by.
Senior - 7, 000 / per month
Junior- 5, 000/ per month
Utility - 3, 000/ per month
Conclusion and Recommendation
Hair glow salon is a ground breaking concept that targets a new , growing market . We
believe that the market will respond and grow quickly in the next two years. Our goal are to
give our costumers a remarkable service that they will always find and we will keep secure
eye on sales and profit. However, we plan to apply the techniques that the hair glow salon
become more success. We will ensure carefulness in order to ensure the individuals hired are
capable of carrying out the service.