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UZURI UZURI INSTITUTE

DEPARTMENT

:

COSMETOLOGY

FACULTY

:

DIPLOMA IN COMETOLORY

ADM NO

:

094

NAME OF THE PRESENTER

:

ANN MUEMA

COURSE

:

BUSINESS PLAN

LECTURER

:

MR KINITY

SUGGESTED BUSINESS NAME

:

CYNDY CLASSIC BEAUTY SPA

DATE OF PRESENTATION

:

SIGN

:

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DECLARATION I Ann 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 cosmetology Presented by ……….ANN MUEMA SIGNATURE………………………….. 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 course.

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ACKNOWLEDGEMENT

I would like to express the deepest appreciation to MR Kinity for his encouragement and guidance in the course of preparing my business plan .My very special tribute goes to my parents for their financial support during my study time .In addition a thank you to the cosmetology head of department madam Roseline Kamau for encouraging me to academically excel, for making me who I am and continue making me match toward my dream .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 Entry And Growth Strategy...........................................................................................................1 1:3 Business Location..........................................................................................................................2 1.4 Forms Of Ownership.....................................................................................................................2 1.5 Type Of Business...........................................................................................................................3 1.6 Product And Services.....................................................................................................................3 Chapter Two................................................................................................................................................4 2:0 Introduction.......................................................................................................................................4 2.1market Plan Strategy.......................................................................................................................4 2:2 Customer Identification.................................................................................................................4 2:3 Competitor Analysis......................................................................................................................4 2:4 Market Share.................................................................................................................................5 2:5 Promoting And Adverting..............................................................................................................5 2:6 Pricing Strategy.............................................................................................................................6 2:7 Sales Tatics And Sales Target........................................................................................................6 2:8 Distruction Strategies....................................................................................................................7 2:9 Customer Service...........................................................................................................................7 Chapter Three..............................................................................................................................................8 3:0 Introduction.......................................................................................................................................8 3:1 Organization Structure...................................................................................................................8 3:2 Management Team.........................................................................................................................9

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3:3 Recruitment, Training And Promotion.........................................................................................11 3:4 Remunaration And Incentive.......................................................................................................11 3:5 Licences 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 Introduction........................................................................................................................................... 15 5.0 Financial Plan..............................................................................................................................15 5.1 Proposed Capilization..................................................................................................................15 5.2 Pre Operational Cost....................................................................................................................15 5.3 Working Capital Potential Sales...................................................................................................15 5.4 Potential Risks.............................................................................................................................16 5.5. Profoma Income Statement.........................................................................................................17 5.6 Profoma Statements Financial.....................................................................................................18

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CHAPTER ONE 1.0 INTRODUCTION Cyndy classic beauty spa is new upscale destination in Nairobi Moi Avenue offering a complete beauty spa experience. We offer massage in variety of styles, traditional Swedish massage, Indian head, hot stone massage, and pregnancy among others .We also offer facial, makeup, manicure, waxing and pedicure. The spa has the latest products and techniques but does not offer services on hair such as cutting, styling and coloring. Our mission is to provide the highest level of customer service therefore establishing a long lasting relationship of trust and commitment. 1.1 OWNER BACKGROUND According to my likes and hobbies concerning beauty, I therefore went to school and gained more skills. I also decided to come up with this spa’s they are expensively selling their products on the other hand I knew people prefer cheap things than expensive ones so I lowered the prices Initially I had the idea of opening Cyndy classic beauty spa and due to inadequate funds to facilitate my own spa, was employed at Vera beauty spa and gained more interest and experience and saved more for my current spa. 1.2 ENTRY AND GROWTH STRATEGY Online marketing will be one strategy by joining sites and online groups by connecting with people and presenting your opportunity then come up with decision even meeting with people help you to share decision and experiences Social media is another strategy,: Facebook, instagram and twitter by posting pictures of your spa or a video of your new makeup techniques and tutorials and nail art will help get potential customers who are into social media therefore more shares and likes will help us to create a free marketing platform on the other hand our research has shown that a word of mouth is the best advertising ,however we run specials throughout the week .also when a client leaves our business with a new look he/she is broadcasting our name and quality to the public

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1:3 BUSINESS LOCATION Cindy classic is located in Nairobi county River road next to Simba coach booking office. It is 15 km from Machakos country bus station .The reason for choosing this location is because their many clients walking around the booking office and some heading to town, therefore some people might be passing by or coming to the booking office and spot the spa and will be interested and attracted to the spa without plans only to see what we offer and once interested .They can pay of the particular service. There is also room of expansion as the business grows. CYNDY CLASSIC BEAUTY SPA P O BOX 1081-012 NAIROBI TEL: 0798080130 EMAIL:[email protected] BUSINESS NAME The legal name for my spa is Cyndy classic beauty spa. We choose this name because my partners name is hard to pronounce so the reason for the name is because it is memorable by even the old clients and therefore the classic name in it makes it more classic hence increasing the number of clients by them visiting the spa regularly to have different services done to them. 1.4 FORMS OF OWNERSHIP I had a client at renal beauty spa who finally became a close friend, one of her friend consulted her on how to manage a beauty spa, and once she heard about me talking about starting my own spa, she directed her to me via email and planned for a meet up, we met up and talked a lot concerning the business and realized that we had the same intentions for the spa. We partnered and opened Cyndy classic beauty spa and employed five workers , for both gender one for facial and makeup ,one for manicure and pedicure ,another two for massage and the other as the cashier and we became founders and managers of the spa. I chose partnership form of business because two are better than one .The business is easy to establish and start because you are sharing the profit and loss you will have a greater borrowing capacity and there is more capital available for the business.

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1.5 TYPE OF BUSINESS We decided to start the business from the ground up and the startup capital will be used to buy for new products and furniture. Cyndy classic beauty spa will amount to approximately 32,500 and the spa equipment will cost 27,000.The owner will interest 5500 cash on hand at starting hand. 1.6 PRODUCT AND SERVICES At Cyndy classic beauty spa will offer a wide variety of services and products that include Nails: Manicure, pedicure, nail polish and stickons Skincare: facial (cleansing exfoliation, massage, masking) Waxing=: tweezing, threading, depilatory, electrolysis Massage: Indian head, full body, Swedish, deep tissue. We also have Cinderella surgery .this is a rare treatment which will make my spa unique and classy Cinderella surgery is the fixation for the correction of hanux raigus .this cosmetic procedure reshapes feet so that women can easily slay and walk in high heels.

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CHAPTER TWO 2:0 INTRODUCTION 2.1MARKET PLAN STRATEGY The business will offer products of high quality and also discount to all products, therefore a good business requires people who need some products and services and are willing to purchase. Cyndy classic beauty spa can deliver highly promising services in affordable prices to shape up the look and styles. The business mainly aims all style conscious people in an age group. We also maintain attractive friendly and nice work environment which respects customer opinions and services. 2:2 CUSTOMER IDENTIFICATION The main aim of the business is making profit and gaining more customers .the customers are major aspects for business growth .therefore Cyndy classic beauty spa target customers are a) Individual customers These are clients who are passerby and will need our products and services. The location of the business makes it more busy and with a lot of clients who came unexpected .These customers or clients are characterized by, they need variety of products and they mostly improvise buyers and they identity themselves to a certain social class among many b) Institutional customers These are institutions that will be using our products and services and they characterized by, they buy products in plenty and their buying process is complex. 2:3 COMPETITOR ANALYSIS Competition will be from business enterprises which offer the same products and services to our spur. I will consider the strength and weakness in my business. Strength and weakness of competitors STRENTH 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.

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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 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 Fay beauty spa Their prices are fairly lower and stock high quality of products but they are of small scale Lillian cosmetics and spa They offer both high quality and low quality products but their prices are too high. 2:4 MARKET SHARE This is to follow up the recent treads and adopting the good idea. The business targets an approximation of about 2000 individuals and limited to have and maintain a minimum market share of 55% as there will be more population and also the business will cater the need of all clients. 2:5 PROMOTING AND ADVERTING Advertisement will regularly come in the daily newspaper also posters will be fixed up in the local areas to advertise our spar. The nearest shops will be referring the people for use of Cyndy classic beauty spa services. At Cyndy classic beauty spa, promotion and advertising strategy will be taking the clients pictures after service and advertise the service via whatsapp. We will also ask clients for referrals and reward them with discounted or free services depending on the number of clients they bring. We will also offer discounts to the new clients who have been referred. There are plans for a lottery that will offer a free trip to India. A client would simply refer new clients to use, and we will place a card box for each client he / she brings. The more they bring the more they have a chance of winning a trip.

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2:6 PRICING STRATEGY Choosing the right price for a product will allow me to maximize profit margins. A good rule to remember when pricing products is that, your customers won’t purchase your products if your price is too high but your business won’t be able to cover expenses if your price is too low. As a small business owner, I am looking for ways to enter the market so that my products and services become more well known. Cyndy classic beauty spa will do with penetration strategy as a pricing method. Example of the laid down strategy which will be used to price the services and products; TABLE 1 PRODUCT Moisturizer

PRICES (KSH) 100

Cleanser

150

Toner

200

Facial scrubber

150

Massage oil

170

Enamel

100

TABLE 2 SERVICE Massage

PRICES( KSH) 1000

Makeup

1000

Manicure

900

Pedicure

600

Waxing

100

2:7 SALES TATICS AND SALES TARGET A sales tactics is any action you take to put your sales strategy into action where, as strategy explains your purpose tactics show the process you use to move forward. The sales tactic and targets used at Cyndy classic spa are, will be giving my clients a glass of wine to drink while the service is ongoing, also maintaining good interaction and been keen with the clients, and also

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develop the ability to actively listen to the client, and also use polite terms while talking to them. Adhering to strict deadlines of each customer makes sales professionals lose credibility by attaining this tactics, I will acquire more than expected customers. 2:8 DISTRUCTION STRATEGIES 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. i.

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. ii.

Indirect selling

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 Cyndy classic 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.

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CHAPTER THREE 3:0 INTRODUCTION Cyndy classic beauty spa intends to have a simple structure since it’s a startup business grows as the business grows since 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 staff...