SKARF BARBING SALON

A Feasibility Study

Presented to

The Faculty of Mount Carmel College of Escalante, Inc.

Escalante City, Negros Occidental

In Partial Fulfillment of

the Requirements for the Degree of

Bachelor of Science in Business Administration

Presented By:

Bersabe, Fernaline

Leones, Ragine

Mahilum, Kint

Tanguyan, Shinny

Villacastin, Aikha

2nd Semester A.Y. 2018-2019

March 2019
 INTRODUCTION

It has been a long process of thinking of what will be the most feasible and best business

to establish in this feasibility study. After the long time of brain storming the researchers

come up to the point of building a barbing salon. The researchers chose this kind of

business for the reason that this business is the reliable one and the most appropriate for

the project.

Entering this type of business does not only aim for profit but to extend quality service and

give satisfaction. Having this business and giving quality service takes the big risk

especially in controlling and maintaining the product. Best decision should be made and

high level of marketing, management strategy and technique must be put.

Establishment of barbing salons is probably the main source of self-employment for many

youths in the country today. Everywhere one goes within a city or local community,

barbing salons are a common feature, and they are owned by youths, most of whom are

secondary school leavers. They go into the business believing that they have no requisite

qualifications to secure gainful employment while waiting to gain admission into

institutions of higher learning in the country.

Adeleke Adeyemi is the Proprietor of Divine Grace Barbing Salon. Fondly called Yemi

amongst his teeming customers, he has been in the business of barbing for not less than

eight years. Before setting up his own barbing salon, six years ago, Yemi, who is in his late

twenties, had worked under somebody for about two years as a barber, having learnt the

art of barbing under another man for six months. He decided to go into the venture rather
than staying idle while waiting to be admitted into one of the institutions of higher learning

in Nigeria. He combines the business with his part time studies in Lagos.

https://allafrica.com/stories/200612270281.html

BACKGROUND OF THE STUDY

There will always be the need for men and women alike to have a haircut,
this is because the need to look good. Barbing Salon will be always in business
because they are always in demand. Therefore, it is important to state that starting
a barbing salon is a very good business. As a matter of fact, it is profitable trade that
sure guarantees good returns on investment.

The researchers make this proposal for the purpose that they want to serve
their valued customers in a good cut, dress and style of hair that they give them
satisfaction of their looks.

Our target market will be a barbing salon services for the male and female
criminology students.

Skarf Barbing Salon can help customers to become well groomed and
comfortable to their haircuts. The services offer to the customers are to style, trim,
shave and cut not only for boys but also for the girls who keep low cut. They are
free to order what kind of hair style they like.

Since, the target market of our business are the criminology students of
NONESCOST, Escalante campus, the proponents will follow the proper cut of their
hair. It is advantage to the business because there is no competitors existing in the
area and also for the students. The students can save their time and money because
the barbing salon is near in their school and offer affordable prices.
 Skarf Barbing Salon is a business to be established in Barangay Hda. Fe,
Escalante City. It is an opportunity to penetrate the market since there are no direct
competitors existing in the area. Skarf Barbing Salon will offer a unique, quality
service and we will provide a unique atmosphere. The researchers will build a
community and corporate relationship-oriented business.

The name of the barbing salon will be derived from the first letter of the researchers
name and that is “SKARF Barbing Salon” the management has carefully planned the
operation of the business.

CHAPTER I

PROJECT SUMMARY

I. PROJECT BACKGROUND

1. BUSINESS NAME AND LOGO

The first thing that attracts the customer is the name of the business.
Name is one of the essential things to be prepared in starting a business.
The name of the business is “Skarf Barbing Salon”. The proponents have decided
this name. Skarf came from the combination of the first letters of the name of
the proponents. Skarf Barbing Salon gives satisfaction because the services
that the business offer will surely suit the taste of the target market.
 Figure 1.1

BUSINESS LOGO

The logo is a visual representation of the business and for the customer to
easily determine our services.

1.2 LOCATION

Skarf Barbing Salon is located at theBrgy. Hda. Fe, Escalante City, front of the
Escalante Coliseum, left side of the NONESCOST campus. The researchers have
chosen this location because it can easily be seen by the target market. It is
advantage also for the business because this site is a very high profile area with
easy access to the passers. Brgy. Hda. Fe is highly travelled highway and there are
no other salon in the neighbourhood and a lot of people live nearby.
 1.3 TYPES OF BUSINESS

Skarf Barbing Salon is a service partnership type of business. In accordance with

the partnership agreement, the co-partners will contribute their money, knowledge,
time, skills, efforts and other resources to operate the said business.

1.4 SOURCES OF FUNDS

 SkarfBarbingSalon has an initial capital of one hundred thousand pesos
(₱100,000.00). This capital shall be obtained through the contribution of among five
(5) members.It will be use for operating the business.

1.5 PROPONENT OF THE PROJECT

Skarf Barbing Salon is owned and managed by five (5) members with the
individual contribution of twenty thousand pesos as their investment in the
business and twenty percent of the ownership. The contribution will be used to
create and operate the business.

CHAPTER II

MARKETING ASPECT

The marketing is considered the most important area. This is because its
describes market situations where the product can be identified through the demand
analysis. This includes study the Marketing Analysis, Target Market, Growth,
SWOT Analysis. In this area it talks about the structured questionnaires given to
 the respondents and the results being determined. Researchers know whether their
product will provide the target market.

2.1 MARKETING ANALYSIS

The purpose of this chapter is to provide quantitative information that

will reflect the status of the market in the area of business. It aims to create a
research on the demand of the service that can achieve the target market.

For the business to prosper, it should be given time and effort. The
proponent of this business must have the desired creativity so as to be able to
provide quality service to its customers.

Skarf Barbing Salon shown a potential growth because of the location

that it is very suitable for the criminology students of NONESOST in Hda. Fe,
Escalante City. Skarf Barbing Salon cut, shave and trim hair for male and female
criminology students. Every two weeks the criminology students will be check
of their proper haircut and that is high impact to Skarf Barbing Salon.

TARGET MARKET

If the management is aiming to achieve some business, the company must

certainly information to analyse and developing strategy for barbing salon business
planning. It must be clear the customer target are the students group. The target
population shall be the criminology students of North Negros State College,
Escalante Campus, ages 15 and above.

GROWTH
 As a new business venture, the growth of it shall be first slowly until it will
reach the peak or success.

Based on the data gathered for population growth rate in the chosen
location. The school’s population is growing at an annual rate of 2%. The
annual growth rate of the school is still increasing due to the zero tuition
program of all state colleges of the government. Skarf Barbing Salon tend to
be a successful business through the success of this feasibility study.

COMPETITORS

We have gathered the data of the list of the Barbershop and Salon registered in
Escalante City. Below are the lists.

2.2 SWOT ANALYSIS

 STRENGTHS
- Accessible location
- Affordable Price
- Friendly staff, easy to approach
- Does not have any direct competitors
- The partners are the one who managing the business the day to day
operation of the business
- Location is just a walking distance

 WEAKNESSES
- Criminology students are not from Escalante
- Other criminology students are loyal to other barbing salons,
barbershops and to their friends who does haircuts.
 OPPORTUNITY
- Can generate other branch within Escalante
 - Expansion of the business
- No competitors

 THREATS
- Other business has loyal customers
- No one will appreciate
- Our capital will not grow

MARKET PROGRAM

Skarf Barbing Salon will offer a hair cutting. In business, marketing strategy should
be really appropriate to the customers that can imitate them the research they offer.
Customers can appreciate the strategies. The Skarf Barbing Salon will serve customer to
the highest level of satisfying their needs.

 Product

To establish a product that is equivalent to service. We will give satisfaction to the

customers by giving a quality service. The management develops a positive outlook
towards that they can give the customers satisfaction.

 Price
 Promotion

It is the kind of communication that encourage the decision making to buy of

customer and our business have to set a promotion for attract the interest of customer.
Our business have three ways for advertisement. The first way, we will promote by
using Facebook and website. The second way, we will provide our employee to
promote and distribute the flyers around the school campus. The last way, we will
promote by use of our tarpaulin to hang in front of our shop.
  Place

Place and location are very important for business because if we choose good location,
it can make the customer convenience to go the shop. Our business is located near the
NONESCOST campus. We choose this place because this area doesn’t have a barbing
salon. The most students in NONESCOST are men and they need to cut their hair.

Demand Determinants

The demand determinants are the total population of customers, the income of the
customers, the expectation of the customer, the number of consumers, the number of
customer can consume, and rate of investments.

2.3 CONSUMER DEMAND OR FINAL DEMAND

Determination of demand is the priority of the conducted survey. During the

survey period, the researchers asked the respondents various questions that will
determine the need of the proposed business. To identify the specific number of
respondents the researchers used Slovin’s formula.

n = -----------------------------------

1 + Ne2

where: n = the sample size

 N = the total population

1 = constant

E = the margin of error set to 5% or 0.05

914
n = ---------------------------------------
1 + [914(0.05)2]
n = 278

The 278 respondents will represent 914, current population of criminology

students of North Negros State College of Science and Technology, Escalante Campus
as of the second semester of the year 2019.

During the survey period, the respondents answered survey questionnaires

that contains questions about the demand for this kind of business in the specified
area.

 Do you prefer having a barbing salon near at school?

YES 241 87% INTERPRETATION

NO 37 13.3% Agree
TOTAL 278 100%
Table 1.1 The table shows that 241 or 87% of respondents agreed of having a
barbing salon near at school, 37 or 13.3% of disagreed. It means that the final demand
of consumer who agreed of having a barbing salon is higher than who disagreed.
2.3 DEMAND ANALYSIS

ESTIMATING PAST AND PRESENT DEMAND

Table 1.2 Past demand of a barbershop they went to have a haircut for three (5)
years.

YEAR PER DAY PER WEEK PER MONTH PER YEAR

2014 15 105 3,150 37,800
2015 27 189 5,670 68,040
2016 35 245 7,350 88,200
2017 80 560 16,800 201,600
2018 150 1,050 31,500 378,000

Table 1.3 Past demand of a salon they went to have a haircut for three (5) years.

YEAR PER DAY PER WEEK PER MONTH PER YEAR

2014 5 35 1,050 12,600
2015 9 63 1,890 22,680
2016 13 91 2,730 32,760
2017 17 119 3,570 42,840
2018 22 154 4,620 55,440

Table 1.4 Present demand of a barbershop they want to have a haircut for three 3
(years).
 YEAR PER DAY PER WEEK PER MONTH PER YEAR
2019 33 231 6, 930 83, 160
2020 37 259 7,770 93, 240
2021 40 280 8, 400 100, 800
2022 47 329 9,870 118,440
2023 52 364 10,920 131,040

Table 1.5 Present demand of a salon they want to have a haircut for three (5) years.

YEAR PER DAY PER WEEK PER MONTH PER YEAR

2019 44 308 9,240 110,880
2020 49 343 10,290 123,480
2021 53 371 11,130 133,560
2022 58 406 12,180 146,160
2023 65 455 13,650 163,800

PRODUCER DEMAND OR INTERMEDIATE DEMAND

The demand for the inputs that the researchers needed in order for them to
produce their own service is very high, since the inputs that the researcher need is
high and affordable.

SOURCES OF DATA

The proponents use the most common way of gathering data through the use
of survey.The 278 will represents the 914 respondents, the current population of
Northern Negros State College of Science and Technology, Escalante Campus as of
2nd
the semester of the year 2018-2019.

TECHNIQUES FOR DEMAND ESTIMATION

Predicting or forecasting the likely demand of a product. This estimation is based

on the past behaviour patterns and the continuing trends in the present. But it is not simply
guessing the future demand that is estimating the demand scientifically and objectively.
There are various methods of demand estimation, that the proponents agreed to perform or
conduct a survey for this proposed business. The result of the survey that we conducted
shows that 87% of our respondents are prefer of having a barbing salon and only 13% of
our respondents are not prefer.

TECHNIQUES IN PROJECTING DEMAND

The proponents conducted a survey on their target market for the projection
of the demand of our service. Through the use of survey questionnaire the proponent
gather reliable data that could help them project the demand of their project.
 Chapter III

Management Aspect

Management aspect is one of the most important aspect in dealing a business. To

achieve this management must be able to plan all activities to become productive and
competitive in the community. Management aspect consist of Project Originator, Investor
and Manager, Pre-operating Cycle, Conducting Feasibility Study, Putting up Equity,
Registration, Plan, Rental and Renovation, Canvasing and Acquiring Period, Canvasing
and Purchasing a Raw Materials, Hiring and Training of Employees, Promotional
Campaign, Start a Normal Operation and Gantt Chart.

Project Originator, Investor, and Manager

This refers to the person who are responsible for making the business run in way
that is appropriate to the plans to be established. The proponents of the business are also
the one who invest their resources for the success of the business.

Pre- Operating Cycle

customer

take the
customer's haircutting
payment
PROJECTED SCHEDULE

Time Allotted

October 1-31, 2018

Conducting a Feasibility study
In conducting a feasibility study, it takes long period of time to prepare. Because
the researcher will conduct a study about their proposed business. Researcher will gather
data or survey questionnaire to identify that the proposed business is feasible or not.

November 1-30, 2018

Putting up Equity
Capitalization is crucial in establishing a business as the business will not be
materialized without it. Finances of the proposed business must be planned wisely during
the period. The researchers decided to contribute an equal amount that will be used as a
starting capital of the proposed business. The researcher agreed to contribute P20, 000.00
each and a total of the P100, 000.00.
December 1-31, 2018
Registration
The legal procedures and requirements for the start of the business must be
accomplished during this period. In registration to our Skarf Barbing Salon, we get an
application for business permit. A photocopy of DTI registration, cedula (CTC) of business
owners, cedula(CTC) and official receipts of occupational tax of all employees.

January 1- 31, 2019

Plant, Rental, and Renovation
The researcher will going to locate the proposed business at the Brgy. Had Fe,
Escalante City, Negros Occidental and left side of NONESCOST building.
 February 1-28, 2019
Canvasing and Acquiring Period
The researcher will start to canvas and acquire for the materials and equipment will
be used to provide the business.

March 1- 31, 2019

Canvasing and Purchasing a raw material
The researcher will examine properly the amounts of raw materials in order to
acquire the materials at a lower cost. Searching the suppliers is also taken into a
consideration in order to avoid negative fluctuations of the prices.

April 1- 30, 2019

Hiring and training of employees
Selection of the qualified applicants will be done in this period. After being
qualified, orientations will be given to employees to have knowledge regarding the
business.

May 1- 31, 2019

Promotional Campaign
As a small business owner’s we likely don’t have a big marketing and advertising
budget, but we can implement a marketing strategy that connects with the customers.
We choose social media marketing for our business. Marketing through social media
can low cost way to raise awareness and provide information about the business or
products services to customers you don’t already know or have to access to. We used
this platform include:

 Facebook Account
 Instagram Account
 Tarpaulin
 June 1- 31, 2019

Start a Normal Operation

After accomplishing all necessary requirements, the business will start to operate.
Continuous promoting the business is still needed and meeting the demands of the
customers to obtained for the customer’s satisfaction.

Form of Business Ownership

Skarf Barbing Salon is a partnership form of ownership. The researchers choose

this form of ownership due to the following consideration. Being a partnership, the business
owners necessarily share the profit, the liabilities and the decision making. This is because
a partner is responsible for the business acts of his partner, when the acts are within the
scope of the partnership, and a partnership is ultimately liable for the debt of his partner.
The disadvantages of a partnership are limited life, mutual agency, yet a partnership has
advantages over a single proprietorship and is much easier to organize.

Internal Organization

This is a discussion that will be used for the proposed business and it includes man
power requirements/ job analysis, organizational chart and compensation scheme.

Job Analysis

Deals with bringing together and evaluating the information about the content and
requirements of individual regarding the specific job in terms of activities involved and
attributes needed to perform the activities. The manpower is composed of the partners only
from the partnership.
Job analysis provides information of organization to determine which employees are best
fit for specific job. Through Job Analysis, analyst needs to understand what the important
task of the job, human qualities needed to complete the job successfully.

Job description and Specification

Owner/ manager- he/ she directly in charge in the over all of the business. Leads the
employees in any transaction of the business operation.

Cashier- he/ she must collect the payments for the customer.

Barbers- must responsible for using scissors or clippers to trim, cut, shave, or shape hair
in barbing salon.

Qualification

Barbers- High school graduates or with an experience.

Organizational Chart

SHINNY FERNALINE AIKHA RAGINE KINT

OWNER/
CASHIER
 _______________________________________________________________________

BARBER 3
BARBER 1 BARBER 2

Figure 1.2

Starting the business “Skarf Barbing Salon” the co- partners decided to personally
manage the business Skarf barning Salon have five personal owners. Skarf Barbing Salon
decided to hire at least 3 barbers.

Activities Oct Nov Dec Jan Feb Mar April May June
1-31 3-30, 1-31, 1-31, 1-28, 1-31, 1-30, 1-31, 2019
2018 2018 2018 2019 2019 2019 2019 2019 Onwards
1.Conduct Feasibility Study
2.Putting up Equity
3.Registration
4.Plant rental and
Renovation
5.Canvassing and Acquiring
Period
6.Canvassing and
Purchasing of Raw Materials
7.Hiring and Training
Employees
8.Promotional Campaign
9.Start of Normal Operation

GANTT CHART
Table 1.6

COMPENSATION SCHEME

Table 1.7: Compensation Scheme for the First year Operation

POSITION STUDENTS 0WNER TOTAL

BARBER 1 ₱20.00 ₱15.00 ₱35.00

BARBER 2 ₱20.00 ₱15.00 ₱35.00

BARBER 3 ₱20.00 ₱15.00 ₱35.00