lOMoARcPSD|22819511

lOMoARcPSD|22819511

THE NYERI NATIONAL POLYTECHNIC

DEPARTMENT : AUTOMOTIVE
ENGINEERING
DIPLOMA IN
FACULTY : AUTOMOTIVE
ENGINEERING
ADM NO : 35809

NAME OF THE PRESENTER : RITA MUKAMI KIRIMI

COURSE : BUSINESS PLAN

LECTURER : MR MBOGO

SUGGESTED BUSINESS NAME : DESTINY BEAUTY SPA

DATE OF PRESENTATION :

SIGN :
DECLARATION

I Rita hereby declare that this is my own work and has never been submitted to any award of
certification and examination purpose, it is written for the award of diploma in automotive
engineering .

Presented by ……….RITA MUKAMI

SIGNATURE…………………………..

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DATE…………………………………

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DEDICATION

This business plan is dedicated to my family from where support and guidance came from since I
started my studies .They encouraged and motivated me to excel in my career and also in my
hobbies.

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ACKNOWLEDGEMENT

I would like to express the deepest appreciation to my family for their encouragement and
guidance in the course of preparing my business plan and support in my likes and love for
beauty. Also, special tribute goes to my parents for their financial support during my study
time .In addition, I thank all my friends who helped me learn more about beauty after taking
cosmetology and hairdressing and beauty in school as a career.THANK YOU ALL.

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Table Of Contents
.....................................................................................................................................................................I
Declaration..................................................................................................................................................Ii
Dedication..................................................................................................................................................Iii
Acknowledgement......................................................................................................................................Iv
Table Of Contents........................................................................................................................................V
Chapter One.................................................................................................................................................1
1.0 Introduction.......................................................................................................................................1
1.1 Owner Background........................................................................................................................1
1.2 Forms Of Ownership...........................................................................................................1
1.3 Business Name..........................................................................................................................2
1.4 Business Location.....................................................................................................................2
1.5 Type Of Business...........................................................................................................................3
1.6 Products And Services.....................................................................................................................3
1.7 Entry To The Market And Growth
Strategy………………………………………………………………………………….3
Chapter Two................................................................................................................................................4
2:0 Introduction.......................................................................................................................................4
2.1 Market Plan Strategy.......................................................................................................................4
2:2 Promoting And Advertising….....................................................................................................4
2:3 Pricing Strategy…........................................................................................................................4
2:4 Customer Identification……………….........................................................................................5
2:5 Competitor Analysis……………………………………………..................................................5
2:6 Market Share…….......................................................................................................................6
2:7 Sales Tactics And Sales Target......................................................................................................6
2:8 Destruction Strategies....................................................................................................................7
2:9 Customer Service...........................................................................................................................7
Chapter Three..............................................................................................................................................8
3:0 Introduction.......................................................................................................................................8
3:1 Organization Structure...................................................................................................................8

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3:2 Management Team.........................................................................................................................9

3:3 Recruitment, Training And Promotion.........................................................................................11
3:4 Remunaration And Incentive.......................................................................................................11
3:5 License Permits And Other Requirments...................................................................................11
3:6 Support Services..........................................................................................................................11
Chapter Four..............................................................................................................................................12
4.0 Method Of Acquiring Tools And Equipments..............................................................................12
4.1 Capacity Utilization.....................................................................................................................12
4.2 Operation Strategy.......................................................................................................................12
4.3 Operation Strategy.......................................................................................................................13
4.3.1 Operation Strategy....................................................................................................................13
4.4 Regulations Affecting Operations................................................................................................14
4.5 Operational Timetable /Production Schedule...............................................................................14
Chapter Five..............................................................................................................................................15
5.0 Introduction...................................................................................................................................15
5.1 Financial Plan..............................................................................................................................15
5.2 Proposed Capilization..................................................................................................................15
5.3 Pre Operational Cost....................................................................................................................15
5.4 Working Capital Potential Sales...................................................................................................15
5.5 Potential Risks.............................................................................................................................16
5.6. Profoma Income Statement.........................................................................................................17
5.7 Profoma Statements Financial.....................................................................................................18

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CHAPTER ONE

1.0 INTRODUCTION
Destiny Beauty Spa is a new beauty spa destinated at Chuka town in Tharaka Nithi county near
Chuka university . It offers pedicure and manicure, facial makeup and waxing hairdressing
cutting and coloring services to the customers.

My aim for starting this spa is to help the customers to learn more about beauty and also their
skins especially to those who have sensitive skins to changes in climate and on how to take good
care of them.

1.1 OWNER BACKGROUND

Due to my likes for beauty and hairdressing ,I learnt some skills as I grew up by watching on
what people do and gained some skills from my friends who had learnt the skills from school by
taking beauty and hairdressing as course.

1.2 FORMS OF OWNERSHIP

Due to unsatisfaction of beauty after visiting different beauty spas I decided to raise some
capital through some savings ,in order to start up my own beauty spa .Since the capital was not
enough to start up the spa I asked for financial assistance from my parents.

After raising the capital my parents encouraged me to learn about management of a beauty spa
from friends who had already started their beauty spas and with their help I was able to gain
skills in management .

I later decided to employ some workers to help the destiny beauty spa to give the good quality
to the customers for them to be more satisfied .Hence Destiny beauty spa is a sole proprietorship
business .

1:3 BUSINESS NAME

I chose destiny beauty spa as a legal name for my business because it is easier to pronounce and
it also memorable by most people as they try to get to the best destination in their life that is to
get the best success hence I thought it would increase the number of clients as they get more
determined to get to their destiny in beauty and also to learn some skills.

BUSINESS LOCATION
Destiny Beauty Spa is located in Tharaka Nithi county at Chuka town near Chuka university
opposite Lowlands hotel on your way to Meru county .The reason for choosing the location is
that there are many clients around the area especially the students and also those visiting the

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Lowland hotel hence they can book for their services or even visit the spa before attending the
classes or before visiting the hotel . And there is also a big room for any adaptability in the
business.

DESTINY BEAUTY SPA,

P.O BOX 60400,

CHUKA,

TEL:0702405183.

EMAIL:ritakirimi00@gmail.com.

1.5 TYPE OF BUSINESS

Due to some struggles in raising the capital I decided to start the business from the ground by
buying some equipments on cash and others at a hire purchase .Hence Destiny beauty spa will
amount to Kenyan shillings 75000.

1.6 PRODUCT AND SERVICES OFFERED

Destiny beauty spa will offer a wide variety of services and products that include:

Hairdressing : Raster ,twisting ,addition ,installation of dreadlocks (both tempory and

permanent ) installation of human hair and coloring .

Cutting :In all styles .

Massage :Full body ,Indian head ,deep tissue ,pregnancy massage and also Cinderella surgery
that reshapes feet so that women can easily slay and walk in high heels .

Skin care :Facial that is ,massage ,masking and cleansing exfoliation .

Nails :Manicure ,pedicure ,nail polish and stickons .

Waxing :Tweezing ,threading ,depilatory and electrolysis .

Selling some beauty products .

1.7 ENTRY TO THE MARKET AND GROWTH STRATEGY

Due to development in technology , online marketing will be one strategy in order to connect
with people to present my business.

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Social media is also another strategy :that is ;Facebook ,Instagram ,You-tube and Twitter by
posting pictures of the spa ,pictures of people that have been serviced in Destiny beauty spa new
make up techniques and tutorials and nail art hence I will be able to reach customers who are
into social media while more likes , views and shares will help me creating a free marketing
platform .

CHAPTER TWO

2:0 INTRODUCTION

2.1MARKET PLAN STRATEGY

The business will offer products at affordable price and also the products and services will be of
high quality and quality .Hence we will require people that are more willing to purchase and also
receive our services for the business to run smoothly .Destiny beauty spa aims at all styles in all
age groups thus maintaining friendly and nice work environment that respects customer’s
opinions and services .

2.1 PROMOTING AND ANDVERTISING

Destiny beauty spa will be taking clients some pictures after the service and advertise via
WhatsApp, Facebook also Instagram.

We will also take some video tutorials and post them via Facebook, Instagram and WhatsApp .

The advertisement will also come in the Newspapers and also some posters will be fixed along
the local roads and also area .Some discounts will be offered to our new clients while the old
ones will be rewarded as per number of clients they bring to our spa .

2.3 PRICING STRTEGY

Since most of our customers prefer affordable products other than the expensive ones , I will
choose a moderate price that is affordable to all our clients in order to maximize on our sales a
and also profit . And since Destiny beauty spa is a small business that is being started up ; I will
strive to look for ways to enter the market with the better skills of competition to make my spa
well known and also to make the products and services that we offer well known .

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Example of a strategy that will be used to price our services and products offered in Destiny

beauty spa is as follows .

Table 1

Products Price in ( KSH )

Facial scrubber 200

Massage oil 200

Toner 150

Cleanser 180

Moisturizer 100

Enamel 100

Braids 65

Table 2

Services Price in ( KSH )

Cutting 100

Installation of locs 1500

Make-up 800

Manicure 900

Pedicure 700

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Massage 1100

Waxing 100

2.4 CUSTOMER IDENTIFICATION

Our main aim is gaining more customers and making more profit thus the are our major aspect
for our business growth ; hence Destiny beauty spa target customers include;

a) Institutional customers
These includes the institutions that will be using our products and services ; hence they buy
products in plenty and their process of buying is complex .
b) Individual customers
These are clients who are passer by and will require our products and services since the
location of the business makes it more busy and with a lot of clients who will be coming
unexpected .These customers require variety of products and are improvised buyers and they
identify themselves to a certain social class among others .

2.5 COMPETITOR ANALYSIS

Competition will be from business enterprises which offer the same products and services to our
spa . I will consider the strength and weakness in my business.

Strength and weakness of competitors

STRENGTH

Customer satisfaction is one of the great assets of the company. The cost of the products will be
very pocket friendly and force them to choose the good one for the outstanding services.

Customer can get all necessary services in one roof and they don’t need to go to different salon
for other services simultaneously with affordable packages.

WEAKNESS

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Lack of experience is the huge weakness in business. The power of the business is not strong as
compared to other long lasting spars

Small capital and non-experienced employees will be the problem for the business

Below are some competitors in the area

Joy beauty spa

Their prices are fairly lower and stock high quality of products but they are of small scale

Louis beauty spa

They offer both high quality and low quality products but their prices are too high.

2.6 MARKET SHARE

The business targets an approximation of about 2500 individuals and limited to have and
maintain a minimum market share of 55% as there will be more population and also business
shall cater the need of all clients .

2.7 SALES TACTICS AND TARGET

A sales tactics is any action that is taken to put the sales strategy to action where as strategy
explains your purpose tactics to show the process used to move forward .

2.8 DISTRIBUTION STRATEGY

Distribution the process of making a product or service available for the customer or business
user who needs it. This can be done directly by the producer or service producer or using indirect
channels with distributors.

a ) Direct selling

This will be used to reach customers at their places of work, home and even in the villages to
inform them on the services we offer or any new product stocked.

b ) Indirect selling

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I will employ a skilled person who will create an online page. The personnel will make an
interesting profile name.

2.9 CUSTOMER SERVICE

At Destiny beauty spa, we will be issuing out magazines to the clients in case of any desired
styles for them to be satisfied by their choice. We will also be carrying consultation and analysis
to our clients to protect both the client and therapist and ensure that they do not perform any
treatment or service on a client that they may be detrimental to their wellbeing.

CHAPTER 3

3.0 INTRODUCTION
Destiny beauty spa intends to have a simple structure since it’s a startup business , as the
business grows we have a vision of providing the highest level of customer service therefore
establishing a long lasting relationship of trust and commitment will enable us employ only the
qualified staffs who are professionals.

3.1 ORGANIZATION STRUCTURE

Below is an organizational structure we intend to use in business .

MANAGER

CASHIER

NAIL N
MASSUESE FACIAL
TECHNICIAN THERAPIST
Z

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Having a business structure is very important because it is easier to employ new positions in the
business and providing a flexible and ready means of growth .Also to provide guidance to all
employees by laying out the official reporting relationships that govern workflow.

3.2 MANAGEMENT TEAM

3:2.1 MANAGERS

Role and responsibility

• Responsible of overall director of the business

• Leading and directing salon workers and managing finances
• Control every aspect of the salon
• Ensure the business runs smoothly
• Assigns tasks to employees and ensure they are carried out accordingly

Qualifications

• Must have a diploma in Cosmetology or diploma in beauty and hairdressing .

• Should be above 27 years of age .
• Should have at least 2 years of experience .
• Should possess a certificate of good conduct .

• Should be social to people ; especially the clients .

3:2.2 CASHIER

Role and responsibility

• Keep a database of all purchase ,sales .

• Keep accurate report of all stock .
• Check level of inventory so as to know when the stock should be replenished .

Qualifications

• Should be above 24 years of age .

• Should have two years of experience .
• Should be fluent in both Swahili and English .
• Should possess a certificate of good conduct.

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3:2.3 NAIL TECHNICIAN

Role and responsibility

• Providing qualified hand and foot massages .

• Providing qualified manicure and pedicure .
• Ensuring that nail and massage supplies are adequately stocked .

• Evaluating the condition of client’s nails and advising them on proper nail care and
suitable nail care treatments .
• Providing nail and hand services to customers .

Qualifications

• A certificate in cosmetology or a certificate in hairdressing and beauty .

• Should be at least 18 years of age .
• Should have a year of experience .

3:2.4 MASSUESE

Role and responsibility

• Offer massage services to customers .

• Give feedback from the clients .
• Good communication skills .
• Effective communication involves both speaking and listening .

Qualifications

• Must have a certificate in cosmetology or a certificate in hairdressing and beauty .

• Should be at least 18 years of age .
• Should be fluent in both Swahili and English .
• Should possess a certificate of good conduct .

3:2.5 FACIAL THERAPIST

Role and responsibility

• Performing facial or body massage and treatment .

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• Removing facial or body hair through waxing .

• Apply make-up and advising clients on makeup application .

Qualifications

• Diploma in cosmetology or hairdressing and beauty .

• At least one year of experience .

• Should be 18 years and above .

3.3 RECRUITMENT , TRAINING AND PROMOTION .

Our major competitive is to provide the highest level of customer services therefore establishing
a long lasting relationship of trust and commitment .We will make sure we recruit the best that
match the experience skills and talent for the roles and responsibilities for the position .

All hired employees will work in a conducive environment so as to ensure that they attain a high
level of productivity We intend to train young and talented employees that we bring on board .
Advertisement will also be aired on every Monday at 8:00am .Finally we will have a welfare
package price in place that will show our employees that we care about their welfare.

3.4 REMUNARATION AND INCENTIVE

At Destiny beauty spa, we came up with a package to offer salaries that are slightly higher than
our competitors , we will also offer monthly treatment and pay vacations .We will offer gym
membership and offer insurances such as health related expenses .We will also come with a plan
to pay bonuses at the end of the year which is pegged on performance and a way of rewarding
the top performers.

3.5 LICENSE PERMIT AND OTHER REQUIRMENTS

In starting a business ,the business has to be registered with the registrar of business and get a
certificate .The business has to get a licenses from the local authority to carry out a business in
that area .

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We have registered our business with the registrar of business and we have also sourced a
business permit from Tharaka Nithi county government . We also intend to hire a lawyer to
advise us from time to time on legal matters concerning our business .

3.6 SUPPORT SERVICES

As a startup it will not be cost effective to have all the services within the organization .

Below are the services that we shall be sourcing outside our organization ;

• Insurance services .
• CCTV services .

CHAPTER FOUR
4.0 METHODS OF ACQUIRING TOOLS AND EQUIPMENTS
Destiny beauty spa, will buy the needed equipments in cash and since some equipments are
costly we will buy half the equipments in cash and the rest to be paid latter at an hire purchase
per month. The dealer of the equipments will be responsible of the repair and maintenance of the
equipments, and if any of the equipments is totally damaged, it will be replaced with a new one .

4.1 CAPACITY UTILIZATION

The business is situated at Tharaka Nith near Chuka university next to Lowland hotel building
at a space of 12m2 by 6 m2 .This will occupy all the services without overcrowding and it is also
affordable in rent payment.

Below is a layout of Destiny beauty spa, on how we have utilized the space in our spa.

MASSAGE ROOM

NAIL ART
FACIAL ROOM
CORNER

WAITING ROOM

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DISPLAY ROOM

RECEPTION ENTRANCE

4.2 OPERATION STRATEGY

Destiny beauty spa will have different strategies so as to provide the best services and products.
We deal with any new competitors by creating strong relationship with our customers and always
be on the lookout for new technologies in this field of beauty .Also at Destiny beauty spa, the
services will be affordable and perfect at customer satisfaction .After the service, the client will
be offered a glass of juice as an appreciation for choosing Destiny beauty spa.

4.3 OPERATION STRATEGY

The therapist will be at the spa at seven in the morning as the account opens so as to clean the
spa and set stations ready for the days services .There will be a brief meeting held at exactly
7:30-8:00am , just for the staff and the manager then opens the door at 8:00am after the meeting.

Also there will be a book that every staff will sign in after reporting and out after leaving .When
the clients visit our spa for a service they will be welcomed at the reception and booked queue to
our professionals who attend to them as per service they require .After the service they will be
issued with receipt for payment as same as recorded at the accountant accordingly.

The spa will be closed at closed at 8:00pm after cleaning of the sheets and towels is done .The
spa will be closed by the accountant after the days calculations

4:3.1 INTERNAL FACTORS

Equipments

This will be experience when machines at the spa break down and needed to be repaired for our
service and business to run softly.

Financial risks

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The financial risks depend on the financial structure of the business .It also depends on your
business transactions and financial systems like changes in interest rates or being over reliant on
one customer could affect business.

Sickness

Sickness will affect production of the business when an employee falls sick and doesn’t attend
his/her job and there are no other employees who can attend to the clients as per department

Government policy

This can affect the production of the business ,because they can increase the rate of borrowing in
the business community ,and higher rates of lead to decrease consumer spending lower interest
rates attract investment as business increase production business do not thrive .

Price wars

Companies may start a price war in order to gain customers and increase market .This happens
when companies compete for customers by dropping their prices below the rate of their
competitors.

Solutions

• The government to reduce policies so that the citizens can afford .

• Security should be highly considered all over the country .
• The employees should be trained on how to handle and carefully listen to customers.

4.4 REGULATIONS AFFECTING OPERATION

PERMITS AND WHERE OBTAINED CASH (KSH)

LICENSES
Health Chuka hospital 15,000.00
Tharaka Nithi county
Trade license 5,000.00
government
Entertainment Marine Park 3,000.00

Operation permit Tharaka Nithi county 11,500.00

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government
Internet Kenya Network 4,500.00

Total 15,500.00
4.5 OPERATION SCHEDULE
Our business will be open as from 8:00 am and close at 6:00pm from Monday to
Saturday .Employees shall report early by 7:00 am for cleaning and arrangement. We will be
carrying stoke taking every last Saturday of the month so as to increase gross profits ,reduce loss,
improve control of allowances and reduce waste .It will also help us to disclose where we going
wrong and have the opportunity to fix .

CHAPTER FIVE
5.0 INTRODUCTION
This chapter will highlight financial plan, pre-operational cost, cash flow projections, income
statement and balance sheet

5.1 FINANCIAL PLAN

This is a comprehensive evaluation of an investor’s current and future financial state and this will
involve all the funds required to meet objective of the business.

5.2 PROPOSED CAPITALIZATION

The proposed business will require a capital of 200,000 for it to be able to operate effectively.

The capital will be acquired as follows in the table below .

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Source Amount Percentage %

Family 100,000 65%
And friends

Bank loan 90,000 25%

Borrowings 60,000 10%

250,000 100%

5.3 PRE OPERATION COST

Item Amount
Rent 6,000
Insurance 2,000
Water 500
Licenses & Registration 4,000
Fire safety certificate 10,000
Electricity 2,000
Advisement 3,000
Internet subscription 3,000
Health certificate 1,000
Equipment and machinery 102,000
133 500

5.4 WORKING CAPITAL POTEMTIAL SALES

This is the capital of the business that will be used for its day to day operations. The amount of
the money to be used in the daily operation of the business will be 61,000

Proposed capitalization –pre –operational cost = working capital

200,000 - 131,000 = 61,000

5.5 POTENTIAL RISKS

5:5.2 FIRE

Fire in the spa can be caused by electric wires due to power fluctuation which can lead to
breakdown of some equipment.

The solution will be the spa will have the right extinguishers to match the fire risk . Also we will
install electric gadgets that will regulate the voltage power.

5:5.2 THEFT

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Theft can be committed by someone outside your business or by one of your employees.

In order to prevent theft we will have guards to watch our business at night and we shall install a
security system and always respond to security alarms.

Also we will separate employee’s duties ; the person responsible for receiving cash should not
be responsible for handling clients.

5:5.3 FALLS

It might seem obvious, but one might fall in a spa perhaps nothing more than a small fright will
happen, but you can also experience a fracture, due to uneven floors, cables spread on the floor
or liquid like water. One can also injury his or her head.

The solution to falling, we will ensure that the spa is carefully maintained and all equipments are
safe. Also wet floors will be dried immediately.

5.6 PROFOMA INCOME STATEMENT

DESTINY BEAUTY SPA

PROFOMA INCOME STATEMENT

YEAR 1 YEAR 2 YEAR 3

SALES 100,500 100,500 100,500

GROSS PROFIT 100,500 100,500 ` 100,500
201,000 201,000 201,000

LESS EXPENSE
Salaries/wages 60,000 60,000 60,000

Rent 60,000 60,000 60,000

Electricity 24,000 24,000 120,000
Water 6,000 6,200 6,300
Advertisement 36,000 36,000 36,000

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` 186,000 186,200 186,300

NET PROFIT 15,000 14,800 147,700

5.7 PROFOMA STATEMENTS FINANCIAL

DESTINY BEAUTY SPA

PROFOMA STATEMENT OF FINANCIAL PROJECT

YEAR 1 YEAR 2 YEAR
3
NON CURRENT ASSETS 120,000 100,000 98,000

TOTAL NON CURRENT ASSETS 102,000 100,000 98,000

CURRENT ASSETS

Debtors 90,000 92.000 94,000

Cash in bank 55,000 58,000 60,000

Cash on hand 150,000 152,000 155,000

Total current assents 295,000 302,000 310,000

CURRENT LIABILITIES
Creditors 58,000 60,000 58,800

Total liabilities 237,000 242,000 253,000

Total assents 339,000 344,000 355,00

Financed by;
Bank loan 139,000 140,000 141,000
Capital 200,000 200,000 200,000
Total 339,000 340,000 341,000

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