Sample Hair and Beauty Salon Business Plan
XYZ Hair and Beauty Salon is a hair & beauty salon dedicated to providing customer satisfaction by rendering excellent service and quality products in a relaxing atmosphere at a reasonable price.
Mission: To supply services and products that enhance XYZ' physical appearance and mental relaxation.
The timing is right for starting this new venture. An ideal location has been found on K-street. Customer demand will come from both the people residing and working adjacent to XYZ salon's location. The owner has also used her/his comtacts who are also keen to become customers.
Sarah Yipe the owner of XYZ has extensive experience in the hair and beauty business. (see owner profile below in the management profile section).
To achieve its mission, XYZ is seeking startup/ expansion debt (loan)/ equity/ grant financing. Debt will be paid from the cash flow from the business. Collaterol will be assets acquired for the salon as well as guarantee from owner/ others.
XYZ's competetive advantage lies in its:
XYZ Hair and Beauty Salon will, upon commencement of operations provide quality hair, nail, and skin services, using top quality beauty products. What will set XYZ apart from its competition is the owner's commitment to providing all of these services in a convenient location at a reasonable cost.
The salon will be located on K-street. The location is strategically situated on one of the busiest streets in Kisumu. It is easy accessible and is buffered by offices and residential areas.
2.1 Start-up Summary
The start-up capital for the salon will be used for the interior design, purchase of equipment and furnishings, and rental/purchase of the location.
Interior improvements will amount to approximately _____, and salon equipment will cost about ____.
Planned Investment Kshs. ________________
Products and Services
XYZ Hair and Beauty Salon will offer a wide range of services that include:
XYZ will excel at good customer service, and creating a pleasant environment for customers.
XYZ will set itself apart from other salons that may offer only one or two types of services. The salon will be a one-stop-shop for customers who frequently become frustrated that they cant do their hair and beuaty in one location.
XYZ will also compete on price as the other salons have higher overheads. XYZ has negotiated with the owner of the property to a lower rental.
To make customers more comfortable, refreshments will be served.
The marketing strategy will be mainly word-of-mouth referrals. Small advertisements will be put into the women's section of the classifieds. Offers and discounts will also be used to attract new clientelle. A loyalty bonus point programme will also be implemented so as to reward existing customers and ensure they remain with XYZ.
All these marketing strategies are low cost and thus will ensure that the business budget can be more focussed on providing quality service.
The following table and charts show projected sales. Income is expected to rise steadily over the next three years, as the reputation of the salon and quality of service becomes apparent to the general public.
The financials below have a number of assumptions:
Forma Cash Flow
and edit the income statement »»
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