Business plan about how to run salon on new location.

1. Organic Unique Creation
Salon

2. Table of Content:
1. Introduction (Hanan Talat)
2. Executive Summary (Momina )
3. Mission (Momina)
4. Competitive Analysis (Momina)
5. Marketing plan (Sana
Rafique)
6. PEST analysis (Iqra Zulfiqar)
7. Financial Plan ( Shahida)

3. • Introduction

4. Executive summary
 Salon is a full-service hair salon offering
top quality.
 All natural products with no chemicals.
 Salon is dedicated to helping our client
find the beauty in their relaxed hair with
natural products. Salon offers a
knowledgeable staff well educated in the
benefits of the natural hair products and
services.
 They use on your hair in an environment
that was designed with sustainability in
mind.

5. Mission
 Transforming their natural beauty
inside and out.
 our mission is to provide an
organic, eco-friendly for women
seeking beautiful, natural and
chemical free hair.
Our mission is to educate and enrich
the lifestyles of today’s women
seeking beautiful and natural,
chemical-free hair services and
products.

6. Competitive Analysis

7. Step 1: Strengths and
Weaknesses – Company
Strengths: Salon has many strengths
to capitalize on. First and foremost our
number one strength is our unique
product/service positioning. We are
going to offer hair services that all.

8. Step 2: Opportunities and
Threats – Environmental

Step 3: Opportunities and Threats –
Environmental
Opportunities:
 The biggest opportunity we see is the
market share that we can capture.
 The population is becoming more
aware of environmental factors that
play a role in our health.

9. Threats:-
 we believe there will be competitors
entering the market trying to take
away our market share.
 Our business model is one that is
much like other business models.
 we know the potential for success is
there.
 we have to worry about competition
copying our idea.

10. Step 3: Key Success Factors
1.
Providing an eco-friendly environment for the customers.
2. Hair technicians with educational backgrounds (5 years +).
3.
Locations in major traffic areas.
4.
Excellent advertisement team with educational backgrounds (5
years +).
5.
Family-oriented management environment
6.
Diverse employment

11. Step4: Company’s Goals
&Objectives
Goals:-
 Salon will continuously provide our client with
an experience of superb quality at each and
every visit.
 This will ensure that our clients will love our
salon and return for future visits.
Objectives:-
 To combine a knowledgeable staff with years
of experience, the proper use of quality products.
 Necessary tools to provide our outstanding
and consistent services.

12. Step 5: Action Plan
 Salon will have a grand opening on.
 This will give us time to secure our
building and begin our interior design
transformation.
 On our first day, we will give the first
twenty five customers one free service.
 We will also have promotions and
discounted services for the entire grand
opening week.

13. Step6: Accurate Control
 Customer Perspective
 Internal Business Perspective
 Innovative & Learning Perspective
 Financial Perspective
 Corporate Perspective

14. Management Summary
 To support our business development
and growth at Salon Miss Momina will
build a management team based on
honesty, loyalty and integrity.
 Each person on our management team
has received a Bachelor’s degree either
in Management, Accounting or
Marketing.
Training classes will be offered to
develop the knowledge of the new styles
and trends, as well as any new cutting,
curling, trimming techniques to improve
the stylist background and skills.

15. Marketing Plan

16. Marketing Plan
 Distribution Strategy
 Price Strategy
 Promotion Strategy

17. Distribution Strategy
 Distribute leaflets to general public by
mentioning their new packages with prices &
attractive discounts.
 Distribute leaflets to campus students to
make them aware about special packages at
lower prices
 Maintain good relationship with TV channels
& give participation to beauty cultural
programme on television.
 Put paper advertisements by promoting
brand name with their valuable services
 Participate wedding & beauty cultural
exhibitions & competitions

18. Price Strategy
 Suitable strategies for pricing
I. Competitive pricing strategy.
II. Pricing adjustment strategy. e.g.-: promotional
pricing.
 Suitable method for pricing.
I. Value pricing.
II. Going rate price.

19. Promotion Strategy
o Public relation
Build good relationship with customer
o Use more promotion programs
 Advertisement method.
1) Printing & Electronics media ads.
2) Internet Business advertisements.
3) Face book advertisements.
4) Paper advertisement
 Free trial to develop promotion of organic salon
 Develop website for organic salon

20. PEST Analysis
1. Political Environment
2. Economic Environment
3. Social Environment
4. Technological Environment

21. Financial Plan

22. Financial Plan
 Payroll and Operating Expenses:
Organic Salon Payroll
Organic Salon worked thru a preliminary
staffing and resource plan.
Now that we have projected sales revenues
for both our products and services, wee needs to
revisit our plans and make sure that we will have
the staff to support our sales projections. After
review and making the proper adjustments to our
resource planes, Organic Salon feels comfortable
with our staffing plan.
This data is automatically inserted into the
payroll expense spreadsheet. This gives us an
annual and monthly payroll compensation expense.

23.  Annual & Monthly Payroll Expenses
Variables:
Organic Salon’s staffing requirements in our
assumptions above we have annual payroll
expenses of $202,111 and monthly payroll
expenses of $28,550 at full capacity.
 Monthly Payroll Expense Breakdown:
Organic Salon is estimating our monthly
payroll expenses for the first year. Organic
Salon deletes the monthly salary for the
months we have determined they are not yet
needed, leaving us with the following monthly
payroll expense breakdown for year 1.

24.  Annual Payroll Expense Breakdown:
 The annual payroll expenses are
automatically calculated for Organic Salon
giving us the following payroll expense
breakdown for years 1, 2, and 3.
 Organic Salon Operating Expenses:
Monthly Expense Breakdown:
Organic Salon reviews this spreadsheet for
accuracy and revises any figures in the “Start-
up Expense” spreadsheet since this is where
they are taken from. The only exception is the
payroll expense line is taken from the “Payroll”
spreadsheet.

25.  Annual Expense Breakdown:
Organic Salon estimates an annual
increase of about 3% giving our annual
expense breakdown for years 1, 2, and 3.
 Cash Flow Statement:
Organic Salon Beginning Balance :
The beginning balance for Organic Salon
was brought over from the “Start-up
Expenses” spreadsheet line item called
Start-up Capital for $77,751.08

26.  Organic Salon Cash Inflows:
There are no outstanding receivables
due, interest income expected, sales of
assets, or loans income coming in for the
first twelve months of operation.
 Organic Salon Cash Outflows:
Organic Salon’s cash outflows
consist of the fixed variable expenses. Our
most significant expense is our payroll,
which effects both our sales as well as our
expenses.

27.  Income Statement:
Organic Salon’s Income Statement is
generated from the other spreadsheets information
that is transferred into the appropriate areas.
 Gross Profit
Organic Salon a gross profit that starts at
around 11% and steady levels out at around 4% to
5%.
 Net Profit
The net profit looks healthy and reasonable
given Organic
Salon’s business plan and industry standards.

28.  Balance Sheet:
The Balance Sheet for Organic Salon reflects the information
provided in the other subsequent spreadsheets contained in the
workbook.
 Total Assets:
Organic Salon has a total current asset balance of $89,17including
start-up capital (cash), opening day inventory, and prepaid expenses
for her rental deposit.
 Total Liabilities:
Organic Salon has current liabilities that are comprised of accrued
payroll, for time and effort to training and setup the salon prior to
opening.
 Owners’ Equity:
Organic Salon owners’ equity is equal to $9587on opening day
based on Organic Salon’s assumptions and estimates.

29. THANK YOU !