BUSINESS PLAN

NAME: SHALOM BEA`UTY AND SALON

ADDRESS: p.o box 1017 kerugoya

EMAIL: shalombeautysalon@gmail.com

TELEPHONE: 0706860757

LOGO:

SHALOM BEAUTY
AND SALON

PRESENTED BY: MUTUI MULE

ADM NO: 16928

NAME OF THE SUPERVISOR: Mr. Murugami

PRESENTED TO: Thika Technical Training Institute for fulfillment of
the required for award in Diploma in Analytical Chemistry

DATE……………………………………
 DECLARATION
I declare that this business plan is my original work and it has not been presented for the award of
diploma in any institution

Name: mutui mule

Adm no: 16829

Signature: Date:

Supervisor’s name: Mr Murugami

Signature Date:
 ACKNOWLEDGEMENT
I wish to acknowledge Mr. Murugami, my business teacher for his support in making the business plan
project successfully done. May God bless you.
 DEDICATION
My sincere gratitude goes to my parents for their moral and financial support during preparation for this
business plan. Their effort in sponsoring my academic work is recognized. I am particularly indebted to
my friends who participated in moral support my second vote of thanks goes to my lecturers who have
helped me much.

May God bless you abundantly.

Table of content
Chapter 1

Executive summary

In this chapter the main heading are pointed out and briefly subheading of each are described.

Chapter 2

Business description

This chapter describes the business in the following sub-heading:-

The name of the business

The logo

Business location

Ownership of the business

Background

of the owner

Types of business

Goals and objectives

Industry.

Chapter 3

Marketing plan

In this chapter the business will consider how it will operate the marketing plan like the customers,
market share and still how to deal with competitors in the area of business location, it will also consider
the methods of promotion and pricing strategy.

Chapter 4.

Organization and management plan.

This chapter briefly explains the various qualification or key personnel required to be employed to the
business, recruitment, strategy promotion of workers, bonus of the workers will get according to various
jobs and proposed salaries for different position in the business.
Chapter 5

Operational / production plan

This chapter explains about production facilities required for day to day running basis in the business.
The raw material involved the farm layout and production strategy in the business.

Chapter 6

Financial plan

This chapter pre-operational cost required for the running and management of the business, it shows
various financing sources for the business e.g. own savings, friends contribution and loans.

Calculation or working capital for the business also has the cash flow of the business for the years in
operation.
 CHAPTER 2
2.0Business Description

2.1Background of the owner

Name of the owner:

Age: 26yrs mutui mule

Marital status: single

Address: p.o box 1017, kerugoya

Occupation: beautician

Education: diploma

Professional qualification

2.2 business name and logo

SHALOM BEAUTY
AND SALON

2.3 business location and address

The business will be located at Mwea Town.

Shalom Beauty and salon

p.o box 1017 kerugoya

phone number: 0706860757

email;shalombeautysalon@gmail.com
 GATANGA MURANGA

KARATINA
BLUE MAKUTANO NYERI
THIKA KENOL MAKUYU KABITI
JUCTION
POST HIGHWAY

NAIROBI
MWEA EMBU
HIGHWAY

EQUITY SHALOM
BANK MWEA MWEA BEAUTY
MWEA TOWN MARKET AND
SALON
2.4 FORMS OF OWNERSHIP

Shalom Beauty and salon will learn a sole proprietorship type of business thus the owner of the business
will be the managing director. I will use my own skills and intelligence in running and managing the
business.

2.5 type of the business

Shalom Beauty and Salon being a service oriented will require the skills of the proprietor has acquired
herself, it will be dealing with facial, make-up, massage, hairdressing and selling beauty products on
wholesale and retail basis.

2.6 product and services

The proposed business will deal with selling of beauty product such as :-

Cleansers

Toner

Braids

Weaves

Make-up kit

Manicure / pedicure kit e.t.c.

It will also be dealing with services such as

Make up

Facial

Massage

Manicure

Pedicure

Braiding

Styling and setting e.t.c.

2.7 justification of opportunity

The proposed business shall be worth in exploiting resources technology advancement, security, good
infrastructure and qualification based on demand.

2.8 industries

The proposed business falls under the category of beauty therapy it will be providing quality services
trying to compete with all salons and spa along the area.

2.9 goals of business and objectives

2.9.1 Goals

The business will provide quality services and produce sold will be of the best quality and penetrate in
other markets try to have the best cost.

2.9.2 Objectives

Short term objectives

To increase production by 10% per month maximum profit 5% increment per month.

Increase number of employees within 1st year.

2.10 entry and growth strategy

The proposed business will provide the lowest price in services and products selling and will be
increasing by at least 2% per month as the market grows.
 CHAPTER 3
3.0 marketing plan

3.1 customers

Potential customers are varied and are grouped into

Wholesalers

Retailers

The proposed business will consider having customers from the whole nation with much consideration
of age, income and education

3.2 market share/size

The proposed business is expected to raise its size/share in 10% and above per quarterly.

3.3 competitors

The business surrounding and providing similar produce are not of high quality thus the success to the
proposed business most of the times are when the surrounding business closes due to lack of licenses.

3.4 methods of promotion and advertisements

The proposed business will be promoting its services through radio and television also use of sign
boards.

Will ensure that incase of changes and improvement it will be advertised regularly mostly monthly basis

3.5 pricing strategy

Raw materials Service Cost

Braids Braiding 1,500
Weaves Weaving 1,000
Blow styling 200
Thermal styling 400
Braids Ghanaian 1,500
Relaxer Relaxing 800
Perm products Perming 2,500
3.6 sales statics

The proposed business will be selling its products directly to the customers in most cases and sometimes
use of agents will be recommended.

The agents will cover along Nairobi, Thika, Makutano and Mwea

3.7 distribution strategy

The proposed business will be presenting its products to its customers through product show.

The business will also sell its products in wholesales and use of distributer.

The business will also transport its products to retail shops and wholesales and incase of traffic jam the
means of transport will be looked at in other ways.

3.7.1 Competitors swot analysis

Name of competitors History of business strengths Weakness

Amazing barbers Has been in business Regard customer with Location of b/s is poor
for 5yrs respect No promotion of
Advertise their workers
business regularly
Rafiki hair salon Has been in business Salon well equipped Poor security in the
for 5 yrs Salon friendly to its area of location
customers

3.3.2 comparative analysis

Item Shalom beauty and Amazing barbers Rafiki salon

salon
Quality Excellent Fair Good
Price Gold Poor Bad
Customer care Good Excellent Fair
Distribution Fair Good Fair
Promotion Fair Poor Excellent
Management Good Fair Good
Customer loyalty Fair Fair Good
 CHAPTER 4
4.0 organization and management plan

4.1 management team

4.1.1 Key personnel

4.1.2 MANAGER

Duties

The manager will be the leader of the business chairing all business meeting. Solutions of problems and
disputes that may arise among sub-ordinate staffs and customers/clients he/she will set goals, establish
priorities develop concepts and approaches review progress.

Qualifications

The person holding the manager position should be a holder in diploma in business management he/she
will have to be 27-35yrs of age with an experience of manager of 3 yrs and also an excellent leader.

4.1.3. ASSISTANT MANAGER

The assistant manager will be taking power when manager is not allowed. He will be responsible to
know all the needed materials are available in the salon.

Duties and responsibilities

He will be taking power when manager is not in the business

Qualification

He should be a holder of certificate in business management and at least 25-35yrs and an experience of
2yrs, should be able to create ideas.

4.1.4. MESSENGER AND SECURITY OFFICER

Duties and responsibilities

Messenger will be needed to get products from the industry to the salon as required by customers.

Security officers will be required to keep the salon surrounding safe and secure thus attractive to most
clients.

Qualifications

Messenger should have license that is active and an experience of 5yrs and at least 25-30yrs. should be
honest and trustworthy, hardworking and able to speak Kiswahili and English frequently.
Security officer should be a holder of certificate in security and an experience of 4 yrs in the field and an
age of 25-35 yrs, have a certificate of good conduct.

4.2 other personnel

This include other employees who are in management team

Title qualification duties

Account b. com oversees the account budgeting financial

report, management salary.

Beautician d. cosmetology create styles needed by client and producing

new styles and making collective to beauty
needed

Receptionist d. business management able to welcome and sweet talk client

knowledge to convince client.
 ORGANIZATIONAL CHART

Managing director

Assistant manager

Security officer

Finance manager Marketing Sub-ordinate

manager

Accountant Hair dresser

Messenger

Receptionist Marketing team Beautician

4.3 Recruitment

Vacant post will be announced through a local

Newspaper, radio and interested people will be asked to send their application letters for the post few
of the applicant will be selected and called for an interview after which be conducted by the
management team where the best person will be picked where the letter will be sent in form him/her
reporting date and indicated rules and regulations governing the firms.

4.3.1 Training and development procedure

On job training will be offered twice per year and those who are interested to advance their skills a
chance is given while in developing of staff members will be offered which materials e.g working clothes
and aprons.

4.3.2 Promotion

Promotion will be conducted according to their education and duty performance in order to motivate
them while working, the working staff will have to go for a seminar once per year.

4.4 Renumaration and incentives

4.4.1 Incentives

As a way of motivation the business will be awarding its employees annually in a ceremony in which
trophies will be awarded. This will improve employees working spirit and harmonious relationship
among themselves.

4.4.2 proposed salary structure (per month) and bonus (Per annum)

Title Month payment Bonus/benefit Total

Manager 30,000 15,000 45,000
Assistant manager 27,000 14,000 41,000
Security officer 20,000 14,000 34,000
Messenger 21,000 10,000 31,000
Accountant 25,000 13,000 38,000
Beautician 24,000 10,000 34,000
Hairdresser 24,000 10,000 34,000
Receptionist 26,000 9,000 35,000
Total 19,700 95,000 292,000

4.5 licenses, permit and by-laws

4.5.1 Licenses

The proposed business will get its license from city council, licenses to secure the business.

4.5.2 permit

The proposed business will have permit

4.5.3 by-laws

The business will need to comply with by-laws issued by county councils.

4.6 support services

4.6.1 Banking

The business will join K.C.B Bank for the business to acquire banking services and have its saving and
acquire loans if need arise.

4.6.2 Insurance

To ensure business incase or any misfortune, accident to business itself and employees during working
hours.
4.6.3 Telephone services

Business will need to communicate so as to meet its objectives therefore wireless telecom will be used
because it’s cheap and fast.
 CHAPTER FIVE
5.0 production / operational plan

5.1 production facilities and capacities

Items Quantity Cost per unit Capacity Total cost

Office 3 rooms 20,000 3 personnel 60,000
Salon 1 room 10,000 5 personnel 50,000
Massage room 3 room 5,000 3 personnel 15,000
Barber room 1 room 4,000 1 personnel 4,000
Electricity 5 phase 15,000 40 kw 75,000
Water 1000 litres 5 5,000
Pick up 1 200,000 Cc 1,800 200,000
Store 1 room 7,000 7,000
5.1.1 Firm layout

MAIN GATE
RECEPTION
ACCOUNTANTS
OFFICE

BARBER ROOM SALON ROOMS

MASSAGE ROOM
DISPLAY AND
BATH ROOM
SERVICES

S
T
O
R
E
EMERGENCY
GATE

5.2 production strategy

The business will use retail, wholesale method of production of its products. The service offered will
differ according to which service each client needs but clients will be treated fairly and equally. The
business will use modern technology in order to attract customers such as lipa na mpesa. The wifi e.t.c
total production per month will be 60% in products production and 80% in services

5.3 production process

The business will ensure that the products and services will always be received into the business
premises in good and their original form and designed from manufactures, this will help discourage the
supply or law quality goods, after receiving the goods they will be stored well.
Flow chart of production process

MANUFACTURES

LARGE SCALE WHOLESALERS

THE BUSINESSPREMISES

BUSINESS STORE DISPLAY UNIT

CUSTOMERS

5.4 Regulator Affecting Operation

5.4.1healthy Regulations

The business has to ensure that all workers have a healthy certificate in order to keep client comfortable
that the services done safe, health wise. The business also has a certificate from ministry of health.

5.4.2 Safety

The business has a certificate of life insurance to ensure its workers in safe working place and incase of
any accident that may occur during working hours.
 CHAPTER 6
6.0 FINANCIAL PLANNING

OBJECTIVES.

To increase its finance by the end of first year.

To ensure availability of working capital for the business.

To ensure proper utilization of finance in the business

6.1 Pre- operational cost.

ITEM COST

Research 12000
Designing 5000
Licenses 7500
Advertisements 3000
Electricity Installation 3000
Water Installation 4000
Start stock 60000
Purchase of tools 25000
Rent deposit 7500
TOTAL 127000
6.1.1 FINANCIAL REQUIREMENTS

The financial requirements of the business will be approximately ksh 3000000/=. The sources of finance
will include:

SOURCE AMOUNT

Borrowing from friends 50000

Bank loan 50000
Owner saving 200000
TOTAL 300000

6.2 PROFOMA INCOME STATEMENT

ITEMS YEAR 2018 YEAR2019

Kshs Kshs

Sales 882000 992000

Cost of sales 22000 272000
Gross profit 860000 720000

EXPENSES
Salaries 500000 500000
Water 100000 2000
Loan 15000 10000
Advertising 4000 5000
Rent 20000 25000
Insurance 9000 8000
Commission 8000 5000
Furniture 12000 8000
Total expenses 569000 563000
Net profit 93000 157000
Less 10% profit 9300 15700
Net profit after 83700 141300
tax
 BALANCE SHEET
6.2.1 Balance sheet for the year 2018

Balance sheet as at 31st January 2018

Assets

Current assets 300000

Cash 150000
Debtors 130000
Stock 200000
Fixed Assets
Rent 78000
Motor vehicle 230000
Salaries 300000
Liabilities 1388000
Loans 100000
Creditors 288000
Capital 1000000
1388000

6.2.2 Balance sheet for the year 2019

Balance sheet as at 31st January 2019

Assets

Current assets 350000

Cash 200000
Debtors 150000
Stock 250000

Fixed Assets
Rent 85000
Motor vehicle 250000
salaries 400000
1685000
Liabilities
Loans 180000
Creditors 205000
Capital 1300000
1685000
6.3 WORKING CAPITAL

WC = Current assets – Current Liabilities

ASSETS year 2018 year 2019

ksh ksh

Current Assets
Cash in hand 25000 10000
Cash in bank 100000 200000
Debtors 15000 8000
Stock 150000 200000
TOTAL 290000 418000

Current Liabilities
Creditors 15000 8000
TOTAL 15000 8000

Working Capital 275000 410000

 6.4 CASH FLOW PROJECTION

6.4.1 CASH FLOW PROJECTION FOR THE YEAR 2018

PARTICULA jan Feb march april may june july aug sept oct nov dec
RS
Balance _____ 5000 8000 17500 21500 1400 13500 19300 19600 11100 7800 530
brought 0
forward
Sales 73500
Debtors
Total inflow
Cash
outflow

Research
Designing
Advertising
Rent
Salaries
Transport
Promotion
Maintenanc
e
Total
outflow
Next profit