Professional Documents
Culture Documents
Your task is to write a business plan for your own small business. In Part I of this assignment,
you presented your business concept and how you will manage your operations in Parts 1 and
2(a). In this part, Part II, you will continue discussing your business concept and your overall
operations through discussions in Part 2(b), Part 3, Part 4 and Part 5.
Corporate Culture
Our culture is reflected in our mission statement. We want perfection in every part of our
Beauty studio, and every employee must understand how to achieve this standard once they have
completed their training. Every employee must have a commitment to pleasing the customer,
both in the quality of the service and in the overall experience they will have once they are inside
the studio.
Also, employees who professionals in what they do will be required to be more social with the
customers that is being interactive and trying to match the energy of the customers positively so
as to make them feel loved.
Lastly since the studio is located in a small town, all employees will be required to take part in
the common events of the community so as to serve and support our customers.
Leadership Philosophy
I think that an interactive leadership style will do the job since in a beauty studio each employee
usually has a general knowledge of how things are been run and also in their specialized fields .
So in that case, employees will be given the floor (OPPORTUNITY) to chip in their own ideas
and suggestions that will help grow the business, improve working condition and make it a home
for both the employees and customers of the business.
Job Descriptions
Skyline Beauty Studio job description is as follows;
THE GENERAL MANAGER: the general manager who is also the owner and one of the
barbers, he will over see the day to day running of the studio, he will be responsible for all the
workers, doing the accounting job since he studied business while in the university. Again the
manager will be the one who lays all the rules to be followed by both workers and customers.
FLOOR MANAGER: the floor manager who is also going to be the hairstylist will be
responsible for stock keeping, make appointment with customers, and also reporting all or any
problems at the studio in case of the general managers absence, he or she will also be in charge
of the studio in case the general manager is sick, out of town, or u unavailable.
BARBERS: they will be responsible for handling the needs of the customers, that is giving them
their desired hair cut. Each barber is to serve one customer at a time and is to respect the policy
first come first to be served.
HAIRSTYLIST: he or she will be responsible for satisfying customers with their different
desired hair styles and providing them with different options that might suit them batter.
MAKEUP/NAILS ARTIS: he or she will attend to customers wanting to get their nails and
makeup done. He or she will be needed to provide the clients with exactly what they need and
also suggest them with better option if they di not make the best choice.
Job Specifications
Training Employees
At the early birth of Skyline Beauty Studio, only professionals will be employed this is to cut the
cost of training workers. While as the business grow we will open up in accepting trainees which
we will train them in their desired field and after they must have master the skill we will
intergrade the best trainee to work in the business.
Compensation
The general manager/barber will earn $40000 per year as salary because the general manager is
also the owner of the business, he will hope to earn more
beyond his salary from the profits of the studio. Compensation for all other personnel will
begin at $4800.00 a month, with pay increases scheduled every 182 days. These increases will be
base on their performance, number of new customers attracted and also by reviews which will
be four times per year, we hope to create
greater incentives for our team members. Compensation for the floor manager/hairstylist will
begin at $5700.00 a month. Because, he or she will have two position at the studio thats a floor
manager and a hairstylist that why his or her compensation will be a bit higher than the others.
Incentives
At skyline, we will organise styling competition with other beauty studios so as to motivate the
employees to give in their best and the winner will get a cash price while within skyline beauty
studio minor challenges will be given by the general manager for which any employee wins gets
a price. This is to build a relationship among the workers and creat a family out of their
individual families.
PART 3: MANAGING OPERATIONS AND INFORMATION (20 Marks)
IT Resources
At skyline social media pages, and groups will be created across all the platforms so as to stay in
touch with our customers and all so to advertise our products and services to those who are
curious to know about what we offer.
Customer Services
WhatsApp groups and channels will be created so as to communicate to our customers in case
we start offering new services or product. Also there will also be a close contact with the
customers since the services are rendered on them this will help the workers communicate with
the customers one on one if he or she has any worries which will then enable the worker to
provide the customers with the exact service he or she needs.
Rent: Refer to the floor plan. How many square feet is your place of business? What is
the “going rate” per square foot for office space in your community? A real estate agent
or information on government websites such as http://www.bsa.canadabusiness.ca/ can
also be helpful in answering this question.
Salaries: Refer to the organizational chart. How much will each employee earn? How
many hours will each employee be needed on a weekly basis? Once youve determined
the weekly cost, then expand it to a monthly and a yearly cost.
Expected Monthly
Expenses Expected Yearly Cost
Cost
$3,800 $45,600
Supplies:
STYLING PRICE
CUTS $35-$110
MANICURE $20-$50
PEDICURE $30-$60
MAKEUP $40-$195
DREADLUCKS $80-on up
BRAIDS $90-on up
FACE TREATMENT $45-$70
UP DO $80-on up
BLOW OUT SPECIALTY $60-$75
HAIR COLORING $35-$350
Every business face challenges at start but with Skyline Beauty Studio good marketing strategies
will be implemented so as to boost sales and create more awareness so for the first 6 months the
business is sure to receive an average of 7 clients a day with an average cost price per unit is $35
and average selling price of $48.05 and more as time goes by and for a year we are expected to
sell an average of 2520 of our products (services) which will amount to an average of
$122220.00
SEPTEMBER
NOVEMBER
DECEMBER
OCTORBER
FEBRUARY
JANUARY
YEARLY
AUGUST
MARCH
APRIL
JULY
JUNE
MAY
Revenue (Sales)
Services rendered 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 $122220
Category 2
Total Revenue (Sales) 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 10,185 $122220
Gross Profit 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 2,835 $34020
Expenses
Rent Expense 700 700 700 700 700 700 700 700 700 700 700 700 $8400
Salary/Wage Expenses 13833 13833 13833 13833 13833 13833 13833 13833 13833 13833 13833 13833 $165996
Supplies Expense 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 $45600
Advertising Expense 650 650 650 650 650 650 650 650 650 650 650 650 $7800
Utilities Expense 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 $16800
Telephone/Internet
Expense 130 130 130 130 130 130 130 130 130 130 130 130 $1560
Insurance Expense 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 $699.96
Registration & licence 420 420 420 420 420 420 420 420 420 420 420 420 $5040
Other Expenses
Total Expenses 20991 20991 20991 20991 20991 20991 20991 20991 20991 20991 20991 20991 $251896
Net Profit 2835 2835 2835 2835 2835 2835 2835 2835 2835 2835 2835 2835 $34020
Balance Sheet
Assets
Current Assets
Cash in Bank $173337.576
Cash Value of Inventory
Prepaid Expenses (insurance) $699.96
Total Current Assets
Fixed Assets
Machinery & Equipment
Furniture & Fixtures
Real Estate / Buildings
Total Fixed Assets
Total Assets
Current Liabilities
Accounts Payable
Taxes Payable
Notes Payable (due within 12 months)
Total Current Liabilities
Long-Term Liabilities
Bank Loans Payable (greater than 12 months)
Less: Short-Term Portion
Total Long-Term Liabilities
Total Liabilities
Working ours for skyline beauty studio will be very flexible for both workers and
customers.
Opening time:8:30am ( from Monday to Sundays)
Closing Time:11:30pm(from Mondays to Fridays and 9:30pm for Saturdays and
Sundays)
Quality Assurance
All employees will have some responsibility to ensure quality, but we believe quality
begins with the management team. The floor manager will be responsible for the
appearance of the studio and the performance of the staffs. The floor manager is
responsible for pleasing the customer. The general manager will ensure that quality
services are been rendered by the staff to the at a fair price customers. The entire
management team will work to ensure that our beauty studio is identical with quality.
PART 4: MANAGING MARKETING (25 Marks)
Target Market
The target market of skyline will be the population of Dayton from children to elders
since we will want to try as possible saticfy each and every one who walks through the
doors of skyline.
Product Differentiation
Skyline beauty studio has an excellent position in the streets of Winfree Dayton Texas
and the services offered at skyline will be unique since it will be rendered by
professionals and at a very affordable price.
Pricing
The pricing strategy of skyline beauty studio will be a penetration pricing strategy since it
is a new business and has to set prices which will attract new and more customers . later
in the future when the business has gain grounds in the market it will adopt a competitive
pricing strategy where prices will be set base on other competitor price and the prices of
skyline will be much lower than that of competitors so as to attract customers.
Promotions
At the early opening of skyline beauty studio, promotions like percentage reduction
prices will be offered to customers and also on the opening day we will offer all normal
services for a 50% discount and special services for a 25% discount.
PART 5: MANAGING FINANCIAL ISSUES (15 Marks)
Startup Costs
The estimated start up capital for this business is $288,895.96.
Financing
There will be a two source of finance for this business which be;
Money from my personal savings which will amount to 60% of the total capital
(288895.96 *60%) =$173337.576
A loan of 40% of the total start up capital (288895.96 -173337.576) =$115558.384