Business Plan

‘The Common Salon’

 CONTENTS

1. COMPANY PROFILE.................................................................................................................1

1.1 BUSINESS DESCRIPTION:................................................................................................1

1.2 BUSINESS ADDRESS AND CONTACT INFORMATION:.............................................1

1.3 OWNERS /PRINCIPALS:....................................................................................................2

1.4 BUSINESS ADVISORS:......................................................................................................2

1.5 VISION AND MISSION STATEMENT:............................................................................2

1.6 COMPANY’S VALUES STATEMENT..............................................................................3

1.7 BUSINESS OPPORTUNITY...............................................................................................3

1.8 INDUSTRY ANALYSIS:.....................................................................................................4

1.9 INDUSTRY TRENDS..........................................................................................................4

1.10 BUSINESS GOALS AND OBJECTIVES:..........................................................................4

1.11 SWOT ANALYSIS:.............................................................................................................5

1.11.1 STRENGTHS................................................................................................................5

1.11.2 WEAKNESSES.............................................................................................................5

1.11.3 OPPORTUNITIES........................................................................................................6

1.11.4 THREATS.....................................................................................................................6

1.12 KEY SUCCESS FACTORS:................................................................................................6

2. MARKETING PLAN...................................................................................................................7

2.1 THE PRODUCT OR SERVICES.........................................................................................7

2.2 TARGET CUSTOMER........................................................................................................8

2.3 MARKETING RESEARCH.................................................................................................9

2.4 THE COMPETITION...........................................................................................................9

 2.5 MARKETING STRATEGY...............................................................................................10

2.6 MARKETING CALENDAR..............................................................................................11

3. OPERATIONS PLAN................................................................................................................12

3.1 LOCATION........................................................................................................................12

3.1.1 LEASE INFO...............................................................................................................12

3.1.2 FLOOR PLAN.............................................................................................................13

3.2 MANAGEMENT TEAM...................................................................................................13

3.3 HUMAN RESOURCES.....................................................................................................14

3.4 STAFF POSITIONS, DUTIES, AND RESPONSIBILITIES............................................14

3.4.1 NUMBER OF EMPLOYEES AND SUBCONTRACTORS NEEDED.....................14

3.4.2 PAYROLL AND BENEFIT STRUCTURE...............................................................15

3.5 RISK ANALYSIS...............................................................................................................15

3.6 IMPLEMENTATION SCHEDULE...................................................................................16

FINANCIAL PROJECTIONS...........................................................................................................16

FAMILY SALOON INCOME STATEMENT.................................................................................17

YEAR 2:............................................................................................................................................18

CASH FLOW STATEMENT............................................................................................................19

BALANCE SHEET...........................................................................................................................20

RATIOS – FORECASTED...............................................................................................................21

RISK AND DIFFICULTIES.............................................................................................................22

WORST CASE RISKS......................................................................................................................22

REFERENCES..................................................................................................................................23
 Business Plan

1. Company Profile

The name of the company is “The Common Salon” for the reason of not specifically make it for

women but for the whole family. The main purpose of the company is to deliver the best quality

experience in terms of skincare, hairdressing, and all the beauty services for the whole family in

one place. Its opening time will be from 11 am to 8 pm all the weekdays.

1.1 Business Description:

The type of business established in Kuwait is a Salon Business for the whole family, including

men, children, and women. It primarily provides services like make-up application, massages,

eyebrow, and eyelash tinting, manicures and pedicures, waxing, and skin-care treatments, including

facials for men and women. It also provides hairdressing services, including styling, permanents,

cutting, and shampooing for the whole family like men, women, and children.

1.2 Business Address and Contact information:

The planned location for our family-based salon is “Al-Ghunaim Tower, Al-Qibla, Kuwait City.”

As it is one of the famous towers in Kuwait and a beautiful place that makes the shopper live

unique moments, it goes with the persona of our business, and the locality will help to place the

salon in the minds of the customers as prosperity and excellence. The customers can contact for

preorder information through business contact is 22248454. Moreover, all the necessary

information including business address and contact information will be provided in the company’s

website named https://www.thecommonsalon.com/

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1.3 Owners /Principals:

Ownership structure will be based on the partnership for which one of my friends will be sharing

ownership of this business. The main reason for sharing partnerships used for ownership structure

is the huge target market. While the reason for the mix of customers is to maintain consistent

business throughout the year. Customers first will be given a menu card shows all services with

mentioned prices, to take their order. Customers will also be given feedback cards in which they

will report their experience at ‘The Common Salon.’ So, sharing partnerships will be easy to handle

all the customers. The main principals at ‘The Common Salon’ are about honesty and efficiency,

which will make sure the reliable environment of the salon.

1.4 Business Advisors:

Our business has an advisable connection through merchant association that is strong enough

named Kuwait Chamber of commerce and industry, which is a non-profit government organization.

As, all the retailers are registered under the Kuwait Chamber of Commerce, which is a non-profit

government organization that represents all the business institutions in the country. It is mainly

intended to shelter the concern of business personnel; so hopefully, it will help us to maintain our

business.

1.5 Vision and Mission Statement:

It is a unique family salon to offer the best possible experience for clients in Kuwait. It provides the

best of beauty services to the clients by modern machinery in the most comfortable ambiance.

Mainly, we aim to cover and exceed the client’s expectations. The vision statement of The

Common Salon is;

‘To be the most recognized and preferred family salon in terms of beauty services’

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It mainly aims to be the ideal salon in Kuwait by providing the most creative, high quality, and

professional services to the clients and accommodating all of their needs to make them feel as much

as a part of The Common Salon. The mission statement is;

‘To enhance the feeling of beauty and confidence in our potential customers by using more

innovative practices and superior products.’

1.6 Company’s Values Statement

Primarily our task is to turn the client dreams into reality. The service in our salon is provided with

technology tools by using modern printing and cleaner machinery delivered from china by our well

trained and skilled staff. Main value statement of the company states that;

‘To provide the best quality beauty services for the whole family at one location with the best

possible technology tools in the most convenient, pleasant, and reliable environment.’

1.7 Business Opportunity

The main business opportunity regarding our salon is about economic growth in Kuwait. Our Salon

might be the reason for strong market growth. According to the View 14 Beauty lounge, the main

competitor of ‘The Common Salon’ is ‘View beauty Salon’ for the reason of its location nearby.

However, there is still a higher tendency that ‘The Common Salon’ will contribute to the market

growth because it works as all in one by offering higher quality services for men, women, and

children, unlike the View beauty Salon, which only provides services for women. Moreover, by

having a view to 992 Beauty Salon in Kuwait / Database /, there are only 992 companies regarding

beauty salon working in Kuwait, so in that way, ‘The Common Salon’ may contribute to higher

economic growth for Kuwait.

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1.8 Industry Analysis:

For industry analysis, the most important factors that may influence our business are political,

social, economic, and technological. According to Pearson, Political factors are related to

regulatory aspects like product safety, rules, and regulations. The cosmetic segment of the beauty

salon industry is regulated by the government to ensure the skin-care and safety of the customers.

Social factors may influence our business, like brand loyalty may encourage potential customers to

go for their favorite salon without having a trial in our salon. Economic factors like inflation as

increasing the cost of cosmetics, machinery, and other materials used in our salons may greatly

affect personal income at our salon and may lower the motivation of staff. Technological factors

like internet availability for online appointments and new higher technology tools for all the beauty

services are other factors of the salon industry that may influence our business.

1.9 Industry Trends

According to Wagner (2017), the industry is contributing almost $780 billion business, and its

services can never be replaced by the technology, outsourced to another country, and streamed

through the internet. The Global beauty salon industry has a higher tendency for the record of

strong growth in the coming years. The most important fact is that there are only 992 companies

regarding beauty salon working in Kuwait so, the contribution of Kuwait towards the beauty salon

industry is not desirable, but it tends to contribute in further years.

1.10 Business Goals and objectives:

The main objective of ‘The Common Salon’ is to achieve a 45% net profit margin within the first

year. Whereas other main goals are as follow;

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  Client retention by satisfying by giving comfortable and pleasant surroundings

 Employee retention by offering the best salary packages and friendly working environment

 Giving top-notch customer services by a well trained and skilled staff

 To have 15 % of the money made by every month

 To capture more and more customers by giving them different packages and discount offers

1.11 SWOT Analysis:

1.11.1 Strengths

 Customer services as our salon provide excellent service by our well trained and skilled

staff

 Extended opening hours as our salon is remained open all the weekdays from 11 am to 8 pm

 Large range of services as it provides massages, make up services, hair dressings, eyebrow,

and eyelash tinting, manicures and pedicures, waxing, and skin-care treatments including

facials for men and women.

1.11.2 Weaknesses

 Not having internet market experience that may influence customer preferences

 No online appointment facility may be another weakness because people mostly feel easy to

get an appointment online rather than a paper appointment to save time.

 An increase in public awareness as The Common Salon is a new beauty salon company, so

it will take much time to make people aware of its existence and excellent services.

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1.11.3 Opportunities

 Strong market growth as there is still a higher tendency that ‘The Common Salon’ will

contribute to the market growth because it works as all in one by offering higher quality

services for men, women, and children

 Development of packages that may capture more and more potential customers and increase

market share

 The local business partnership that has a high tendency in Kuwait so it might be another

opportunity for our business

1.11.4 Threats

 Home visit stylists and beauticians that make the customers more comfortable because in

that way they do not need to go anywhere

 Salon in the area like ‘View Beauty Salon’ that may capture more of our potential

customers

 Customer preferences are another big threat to our salon and influence the business growth

1.12 Key Success Factors:

Our Salon is an exceptional family salon to propose the best possible experience for clients in

Kuwait. It gives the preeminent of beauty services to the clients in the most comfortable ambiance.

The key success factors are as follow;

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  Comfort as we consider that the customers are satisfied that their all needs are met

 Education as we believe that Acknowledging the fashion needs by modern technology in a

unique way

 Location as our salon is providing easily accessible location, and one of the ultimate

benefits of this location is about the usual inflow of target customers where our target

market is more likely to shop from and visits for spare time with shopping intentions.

 Quality as the quality of services in a way that it takes the customers to the modern world of

technology

 The atmosphere as the atmosphere is friendly enough to force the customers to visit again

and again

2. Marketing Plan

2.1 The Product or Services

It provides various services regarding hairdressing like styling, coloring, haircuts, and hair re-

texturing, or trimming. Hair extensions, permanents, and shampoo washing for the whole family

like men, women, and children. It also provides the services of nail art like Nail polish, Nail art

drawing, Gel nail polish (Save 15% with coupon), Manicure and pedicure (Save 5% with coupon),

Premium-laser manicure art that we can peel it off without acetone, Nail sterilize (Save 10% with

coupon), and Nail dust remove. It also offers services like make-up application, massages,

eyebrow, and eyelash tinting, waxing, and skin-care treatments, including facials for men and

women. Considering the article by ‌ Scott (2019), the pricing strategy that ‘The Common Salon’

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follows is penetration pricing with which the price of products or services is set lower at first than

the eventual market price to attain a high volume of sales quickly. The main reason to use this

strategy is to get a broad range of people for whom price is a key concern in their purchasing

decision like low-income families and to address tight profit margins by offering discount services

that may discourage potential customers from going to our competitors. Considering the article by ‌

Bhasin (2018), ‘The Common Salon’ uses a direct distribution strategy to place our services as all

the services that it provides are directly given to potential customers. The unique selling

proposition at ‘The Common Salon’ is about two kinds of services. The first is related to the

services of hairdressing for which cutting, coloring, and styling is special services by our salon. The

second is related to nail services for which nail art, manicure, and pedicure along with all kind of

nail services with technological tools by experienced nail attendants

2.2 Target Customer

The ultimate business marketing strategy is related to B2B as it directly provides all the services to

the end consumers without the intervention of any third party. The primary market of our salon is

related to the suppliers of beauty products raw material available in Kuwait. Our secondary market

is related to manufacturers of the products that we use to provide our services to end consumers.

Our territory market is related to the men, women, and kids living near “Al-Ghunaim Tower, Al-

Qibla, Kuwait City.” So basically, our business profile shows that our immediate demographic

target is the people living near the Al-Ghunaim Tower with a population of more than 10,000. The

demographics include children who age from 3 to 12, young ladies and gents with age from 13 to

20, Adult women and men with age from 20 to 35. The Common Salon provides hairdressing

services to the children in the separate section at our salon while provides nail art, hairdo and all the

fashion, skincare and beauty related services to the young ladies and adult women in the separate

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section of women at our salon whereas, provides all the hairdressing, massage, facial and beauty

services to the young gents and adult men in the separate section of men at our salon. Besides,

Psychographics of our business is related to the people who are looking to have beauty services for

all the family in one place to avoid the hassle of going in different places for men, women, and

children.

2.3 Marketing Research

Marketing research is vital for the success of our business, for which both primary and secondary

research plays an important role. Considering Kuwait Market Research by Edison Research (2020),

we will hire different people from research firms as Edison has almost full-time researcher’s

supervisors and staff in Kuwait city and have a great ability to conduct research and survey all

through the country to conduct primary research. This research includes surveys, focus groups,

observation, and interviews. Through this research, the research team would be able to use

statistical models to acknowledge the sample group that may be the representative of our target

audience. To conduct secondary research, we will use some formerly completed studies and relate

the results to our situation. For example, a research article specifically was done in Kuwait

regarding the salon industry as a study conducted by Algharabali (2014) showed cultural challenges

in service encounters at a British beauty salon in Kuwait that may guide us in terms of culture. The

results of the secondary research may be broader for our business decision making but may help us

out to think about the path where we want to go.

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2.4 The Competition

According to the View 14 Beauty lounge, the main direct competitor of ‘The Common Salon’ is

‘View beauty Salon’ for the reason of its location nearby and the beauty services it provides, so

‘View beauty Salon’ may capture more of our potential customers. Having a view on Miss Oprah,

Jabreyia - Gulf Bank Street, Kuwait City (2020), the indirect competitor of ‘The Common Salon’ is

‘Miss Oprah’ located near Jabriya, Gulf bank Street because it specifically provides magnificence

services to women with all their technological tools. ‘Miss Oprah’ shows indirect competition

because it is specialized in nail and hairdressing services to enhance the beauty of women so

women can have beauty services in terms of nail and hairdressing for there. Despite both direct and

indirect competitors, there is still a higher tendency that ‘The Common Salon’ will contribute to the

market growth because it works as all in one by offering higher quality and wide range of services

for men, women, and children, unlike its competitors who only provide services for women.

2.5 Marketing Strategy

One of the main marketing objectives is to raise awareness about our salon among our target

audience and increase credibility. Because the target audience will be encouraged and they will feel

comfortable to get the services provided by our salon once they know our existence with a wide

range of high-quality services. Other main objectives are to compete in the market and raise

revenue that may be possible due to our marketing approach. Our strategy for positioning is image

positioning by promoting our brand image that is possible with differentiating our values and

making our prestigious worth in the customers’ minds. The main promotional and sales strategies

that we intend to use are as follow;

 Distribute our brochures to the general public by describing our package details with prices

and discount offers

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  Distribute our brochures to the college students to make them aware of the existence of our

salon with its special packages

 Build a good relationship with TV channels and participate in the beauty cultural programs

on the TV

 Put paper advertisements by promoting our brand image with its precious services

 Give involvement to the outfit models for magazines and paper covers

Besides, we have a higher tendency to use social media tools after some time like Facebook,

Instagram, and LinkedIn to support our social media marketing strategies that are as follow;

 The growth of our brand audience by capturing the followers

 Increase public engagement by grabbing the attention of more and more potential

consumers

 Increase web traffic by using promotional posts and social aids and create engaging content

by putting stories, videos regarding makeup tutorials and time-sensitive contents

 Community our marketing goals by involving the potential consumers and then set further

goals accordingly

2.6 Marketing Calendar

Marketing ideas Daily Weekly Monthly Quarterly Semiannual Annual

Manage Ad Campaigns Alway

Review Google analytics Alway

Update service packages 1

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Videos on YouTube 2

Interact with the consumers 2

Market an event 1

Comments on blogs 2

LinkedIn group discussions 2

Facebook Updates 2

Instagram updates 2

Host a workshop 1

Give away gifts to the 1

updated consumers

3. Operations Plan

3.1 Location

The location of ‘The Common Salon’ is “Al-Ghunaim Tower, Al-Qibla, Kuwait City.” Seeing that

it is one of the well-known towers in Kuwait and an attractive place that makes the customer live

exclusive moments, it goes with the guise of our business, and the area will help to place the salon

in the minds of the customers as affluence and fineness.

The location of our salon is offering easily reachable location, and one of the definitive benefits of

this location is about the regular inflow of target customers where our target market is more likely

to shop from and visits for auxiliary time with shopping intentions.

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3.1.1 Lease Info

We have rented out a space of around 2000 square feet of space, which requires only minimum

renovation, and this is the main reason that we have chosen this space. The span for ‘The Common

Salon’ has been vacant for seven months, and the owner of the salon, along with co-owner, has

encouraged offering of an eight-year lease with the tenth year free.

The rent of the salon is almost around 400 KWD per month, which is the expected market rate of

the place. The most expected revenue for ‘The Common Salon’ will be around 55, 000 KWD in the

early year of the operations to 75,000 KWD by the end of the fifth year while 50,000 KWD is

expected to be the start-up financial support for the lease costs, renovation, furniture, equipment

materials, and all the costs related to interior design of the salon.

3.1.2 Floor plan

It is a double-floor salon. The first floor is specifically for women and kids, while the second floor

is particularly for men. Both floors comprise of different rooms which would be utilized for

different purposes. The floor plan is designed in a manner to utilize each space area efficiently.

Each section has its significance and importance. The main section of the floor is the reception and

waiting area at the entrance of the Salon, where people can get their appointments regarding saloon

services or get a piece of information regarding salon. The other main sections on the first floor are

changing chambers and the kitchen with a reliable and safe environment. Other sections on this

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floor include washrooms, facial rooms, styling area, hair service section, waxing rooms, and nail

service section for women.

The other side of the first floor is particularly for kids services where hair cutting and all the

skincare services for kids are provided by professional staff. The second floor has three main

sections in which the first section is quite large that is particularly for hair services for men in

which shampoo services, dryer services, hair color, and cutting services, along with all hair

services, are provided. The other two sections are specifically for skin care and beauty services for

men like facial services, and so on. Both the floors are well-furnished with comfortable seating

arrangements and a proper music system that will make the customers feel like home.

3.2 Management Team

Management of any business plays an important role in business development strategy. It is more

than just assigning duties to the employees and determining the overall job structure. The people

involved in the management of ‘The Common Salon’ include Salon owner and co-owner, Salon

general manager and assistant manager, Salon head of staff, Stylists and therapists, Skincare

professionals, and Receptionist that will do some specific tasks.

3.3 Human resources

Human resources management is handled by the owner and co-owner of ‘The Common Salon,’

who will control all the hiring and firing of staff and management by assigning the bonuses, leaves

per month, and increments in the salary. All the procedures and activities of the HR department will

ensure the high performance of its employees that will further lead to a variety of OB initiatives to

promote the high dedication and engagement level of employees towards organizational goals.

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3.4 Staff positions, duties, and responsibilities

 Salon owner and co-owner will monitor all human resource tasks along with financial

activities and will make sure exceptional customer services by providing the right

information with proper details.

 The salon manager and assistant manager will manage the internal working environment by

making sure the comfort of employees.

 The head of staff will specifically work for lower staff workers to enhance their skills by

giving them proper training and knowledge.

 Stylists, therapists and skin care professionals will provide their specialized services in all

three sections of men, women, and kids.

 Whereas the receptionist will deal with the customer order by providing them detailed

information about the salon services and discount packages

3.4.1 Number of Employees and Subcontractors needed

Our management team consists of 25 employees, including general manager, assistant manager,

active stylists, and therapists. Employees will be divided on both floors. Fifteen employees will

work on the first floor, from which five employees will specifically give their services in kid's

sections. The remaining employees will work on the second floor that is particularly for men’s

section.

3.4.2 Payroll and benefit structure

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  Salon manager and assistant manager will be given annual income with possible bonuses

and increments within six months depending on their efficiency of managing their supposed

work

 Head of staff will be given annual salary with potential additional benefits and increments

within ten months depending on his capacity that to what extent he polishes his staff’s skills

and resolving their issues and agendas on a personal level.

 Stylist, therapist, and skin-care professionals will be given salaries at piece-rate along with

the increments in every year.

 Receptionists will be given salaries in commission base with possible bonuses depending on

her efficiency

3.5 Risk Analysis

Risk analysis is the whole process of recognizing and evaluating probable issues that may

negatively impact the business proposal of our salon. Risk analysis will help us to evade and

alleviate those risks that we may encounter in the future. The foremost risk that we may come

across is about the appliances such as waxing machine, hair, and curlers, steaming instruments

should be handled with care. Besides, any wires or cooking devices shouldn't be out in the

open; they can harm the clients or staff. Also, unexpected events like inflation may come across

our way of business development. So preventive measures should be taken, such as insulating

the wires properly and using rubber pads to keep the machines on the surface, and reassessment

should be done concurrently to cope with unexpected negative events.

3.6 Implementation Schedule

The implementation schedule is a chart that clearly states all the tasks that are essential to complete

the specific projects and linked deadlines. It is the most important part of planning because it will

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 become the device to use for the assessment and evaluation phases of the project. Implementation

schedule for our Salon is as follow;

Implementation Schedule

Application for a long term loan

Commencement of commercial production 12 month

11 month
Trial production 10 month
9 month
Human resources recruitment 8 month
7 month
Receipt and installation of machinery 6 month
5 month
4 month
Placing an order for machinery
3 month
2 month
Getting power and water facilities 1 month

Possession of land with lease agreements

Formation of project report

0 2 4 6 8 10 12

Financial Projections

Year 1:

Family Saloon Income Statement

Net Sales $592,194.00

Less: Cost of Goods Sold $100,000.00
Gross Income $492,194.00

Operating Expenses

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 Salary $150,000.00
Labor $30,000.00
Utilities $5,000.00
Insurance $3,600.00
Sales Promotion $25,000.00
Delivery and Transportation $16,500.00
Miscellaneous $1,500.00
Total Expenses $233,100.00

Net Income Before Taxes $259,094.00

Less: Income Taxes $50,066.40
Net Income After Taxes $209,028.00

Assumptions:
1.Net sales based on price category for each
service:
Hair Cutting: $60 (lowest)
Shave: $40
Facial: $69
Massage: $100
Bleach: $58
Body message: $70
Comfort Pack: $83
2.Cost of goods sold includes the weekly maintenance cost for the saloons to ensure that they are in
perfect condition for the next service. Further, the cost of goods involves the material cost which
will be provided for the services. Note that in every category, the company intends to include
clients for those that need them.
In the first year, we intend to hire out at least 3 workers in the saloons. Thus it will imply that in a
month, the saloons will get service out 1000 people. Further, in the luxury saloon category, the
company will hire them out at a rate of at least 2 a day, meaning that the company will hire out

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 the saloons to 60 people a month.
1.Salary will be drawn by the owners/managers in the third year.

Year 2:

Net Sales $700,500.00

Less: Cost of Goods Sold $150,000.00

Gross Income $550,500.00

Operating Expenses

Salary $120,000.00

Labor $30,000.00

Utilities $6,000.00

Insurance $5,000.00

Sales Promotion $50,000.00

Miscellaneous $1,500.00

Total Expenses $212,500.00

Net Income Before Taxes $338,000.00

Less: Income Taxes $50,066.40

Net Income After Taxes $287,944.00

Assumptions:

Net sales based on price category for each

service:
Hair Cutting: $60 (lowest)
Shave: $40
Facial: $69
Massage: $100

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 Bleach: $58
Body message: $70
Comfort Pack: $83

Sales estimates based on 10%sales increase from previous year.

3.Cost of goods sold includes the weekly maintenance cost for the saloons to ensure that they are in
perfect condition for the next service. Further, the cost of goods involves the material cost which
will be provided for the services. Note that in every category, the company intends to include
clients for those that need them.
In the first year, we intend to hire out at least 3 workers in the saloons. Thus it will imply that in a
month, the saloons will get service out 1000 people. Further, in the luxury saloon category, the
company will hire them out at a rate of at least 2 a day, meaning that the company will hire out the
saloons to 60 people a month.

Salary will be drawn by the owners/managers in the third year.

Cash Flow Statement

Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
Revenues $40,00 $40,0 $40,0 $40,0 $40,0 $40,0 $60,0 $60,0 $60,0 $60,0 $60, $60, $540,00
0 00 00 00 00 00 00 00 00 00 000 000 0
Expense
Cost of $8333. $8333 $8333 $8333 $8333 $8333 $8333 $8333 $8333 $833 $833 $833 $100,00
goods 3 .3 .3 .3 .3 .3 .3 .3 .3 3.3 3.3 3.3 0
Labor $250 $250 $250
Utilities $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 $2500 0 0 0 $30,000
$466.6 $466. $466. $466. $466. $466. $466. $466. $466. $466. $466 $466 $5,000
Insurance 6 66 66 66 66 66 66 66 66 66 .66 .66
$300 $300 $300 $3600
Sales $300 $300 $300 $300 $300 $300 $300 $300 $300

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Promotion $208 $208 $208 $25,000
$2083. $2083 $2083 $2083 $2083 $2083 $2083 $2083 $2083 3.33 3.33 3.33
Miscellan 33 .33 .33 .33 .33 .33 .33 .33 .33
eous $125 $125 $125 $1500
$125 $125 $125 $125 $125 $125 $125 $125 $125

Total Cash $26,19 $26,1 $26,1 $26,1 $26,1 $26,1 $46,1 $46,1 $46,1 $46,1 $46, $46, $46,191
Flow 1.71 91.71 91.71 91.71 91.71 91.71 91.71 91.71 91.71 91.71 191. 191. .71
71 71
Balance Sheet

Current Assets
Cash $7,054.00
Accounts Receivable $60,484.00
Inventory $80,042.00
Pre-Paid Expenses $1,046.00
Total Current Assets $148,626.00

Fixed Assets
Building $100,500.00
Equipment $40,950.00
Gross Fixed Assets $141,450.00
Less Accumulated Depreciation $16,900.00
Net Fixed Assets $124,550.00

Total Assets $273,176.00

LIABILITIES AND OWNERS EQUITY

Liabilities
Current Liabilities
Accounts Payable $51,343.00

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 Accrued Payables $3,060.00
Total Current Liabilities $54,408.00

Long Term Liabilities

Mortgage Payable $20,708.00
Total Liabilities $75,116.00

Owner's Equity $198,060.00

Total Liabilities and Owner's Equity $273,176.00

Ratios – Forecasted

We would hire and train our employees within the first months; employees will help to set up the

hair salon. The table below will review the salon project sales. We have anticipated that our sales

will increase in the next three years a 30%.

Chart Title
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Owner Stylist 1 Assistant Stylist 2 Stylist 3 Products Sales Total Sales

First Year 1 Year 2 ($) 20% Year 3 ($) 30%

Family’s Hair Salon will provide growth sales due to their natural hair care products every time the

customer is in the styling chair. We offer to regular customer discounts on products that we are

selling. This gives the client a chance also to tell others about their own experiences. The salon also

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provides commissions and bonus to the hair stylist for selling the products to the customer. We

booked appointments by phone to make it easier to our customers. Some of the customers want to

make sure their appointments are settled, which makes their visit more comfortable. Strategy

implementation remains an area of limited attention in the market of higher education literature”

(Na, 2011).

As a start-up salon, Family’s Hair Salon needs to increase its perceptibility during the first quarter

and keep working hard to recoup inversions during the first years plus make $100,000 more to

reach our annual goal. Our expenses are limited, Rent, water, power and supplies, plus employee

salary as part of our monthly expenses.

Risk and Difficulties

 Cash flow can be affected on the first four months of opening.

 Missing hair products (like hair dye, brushes, lotions, shampoos etc.).

Worst Case Risks

 Verifying that Bella’s Hair Salon can't support itself on a daily basic.

 Having to liquidate gear or scholarly money to cover liabilities

 Not generate revenue projected.

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https://smallbusiness.chron.com/beauty-salon-industry-analysis-70660.html

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Kuwait Market Research - Edison Research. (2020). Retrieved February 11, 2020, from Edison

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pricing-strategies-which-is-right-for-your-business/

‌Bhasin, H. (2018, May 25). What are the various distribution strategies for a company?

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