Face look

hair & skin beauty

saloon
 CERTIFICATE OF APPROVAL:-

This project titled “face look” is hereby approved as a Credible study of business
management carried out by Monika Sharma (7BBA/4068/08) student of BBA 5th
semester in satisfactory manner to warrant its acceptance as a pre-requisite to the
degree of bachelor of business administration for which it has been submitted.

SUMIT KULSHRESTHA

(Faculty in management)
 CERTIFICATE OF GUIDANCE:-

This is to certify that Monika Sharma (7BBA/4068/08) is a student of BBA 5th semester
has made project under my guidance.

This project is bonafide work of student and has not been submitted elsewhere for the
award of any other degree.

SUMIT KULSHRESTHA

(Faculty in management)
 ACKNOWLEDGEMENT

I take this opportunity to thank the “management department” of BIT jaipur for giving
me this opportunity to do this project.

I wish to express my gratitude and indebtness to our faculty member Mr..Sumit

Kulshretha who acted as a guide for us. It is because of his true and sincere efforts, which
helped us to complete the report on time. His continuous guidance, inspiration and
motivation helped us in every field while making the project report.

MONIKA SHARMA

(7BBA/4068/08)
 Preface:-

Humans have been very aware of their appearance from beginning of the civilization. The
external beauty is very important for many. If you do not like the way you look now you
can change your look. In ancient times people used to use different things to beautify
themselves. Now the tools have changed but the desire to look beautiful is still the same.

The desire to look beautiful is responsible for beauty parlors or salons. A beauty parlor or
salon is a business that deals with the beauty treatment for men and women. In the beauty
parlor your face and body gets treatment or pampering.

Since ancient times men and women are experimenting with their looks. The hair styles
have seen major change over the years. In the ancient civilizations there was distinct
difference in the hair styling of Egypt men and women, The Greek women sported their
hair differently Romans followed the lead. The East had different styles.

In the 16th century Queen Elizabeth was a female icon. In those days her lily white
complexion and red hair was copied by women. The white powder that was used was
highly poisonous white lead and the glow on the cheeks was a result of lead based rough.
A thin layer of egg white was used to bind it together.

Since then the beauty business has come a long way. The beauty parlors use safer
cosmetic products and give many more treatments for the entire body.
 INDEX:-

S.NO PARTICULARS PAGE.NO

1 TITLE PAGE

2 CERTIFICATE OF APPROVAL

3 CERTIFICATE OF GUIDANCE

4 ACKNOWLEDGEMENT

5 PREFACE

6 EXECUTIVE SUMMARY

7 ENTREPRENEUR PLAN

8 MARKETING PLAN

9 FINANCIAL PLAN
 Executive Summary

Face look is a full-service beauty salon dedicated to consistently providing high customer
satisfaction by rendering excellent service, quality products, and furnishing an enjoyable
atmosphere at an acceptable price/value relationship. We will also maintain a friendly,
fair, and creative work environment, which respects diversity, ideas, and hard work. New
look is type of a hair salon that allows the entire family to have their hair needs satisfied
in one convenient visit. Face look is salon that satisfies the unfulfilled customer needed
for a low-cost salon that provides maximum flexibility and strong customer attention.
Using this strategy, I will gain significant market share and create critical long-term
relationships with clients.

Objectives

The objectives for the first three years of operation include:

1. To create a service-based company whose goal is to exceed customer's

expectations.
2. To increase the number of clients served by at least 20% per year through superior
performance and word-of-mouth referrals.
3. To develop a sustainable start-up business, contributing to increased employment
of community residents.
 Mission & vision:-

Our Mission:-

Face looks mission is to provide reasonably priced, convenient hair styling. We exist to
attract and maintain customers. When we adhere to this maxim, everything else will fall
into place. Our services will exceed the expectations of our customers and to supply
services and products that enhance our clients' physical appearance and mental relaxation

Our vision:-

"The Trend Begins Here!"

MANICURE & PADICURE
 Fact sheet:-

The timing is right for starting this new venture. Patiently searching for two months for
the perfect location, one was finally found. As a new entrepreneur I have to work a lot to
find a perfect location. The demand from the owner's clients, and the procurement of
highly professional and qualified beauticians to support the salon, has made this business
one of great potential.

The talented team of beauticians is what it takes to make this venture an extremely
successful one. We expect our growing reputation to lead to new clients and beauticians
to support our anticipated growth.

To achieve our objective Face look will arrange finance from its personal capital. me
Monika Sharma will take some capital from my father and the rest will be on loan. This
loan will be paid from the cash flow from the business, and will be collateralized by the
assets of the company, and backed by the character, experience, and personal guarantees
of the owners.

Keys to Success:-

The keys to success in our business are:

• Location: providing an easily accessible location for customers.

• Environment: providing an environment conducive to giving relaxing and
professional service.
• Convenience: offering clients a wide range of services in one setting, and
extended business hours.
• Reputation: reputation of the owner and other "beauticians" as providing
 Entrepreneur plan:-

Entrepreneur description:-

Face look will, upon commencement of operations, sell a wide range of beauty services
and products. We will provide quality hair, nail, and skin services, for ladies as well as
children along with top lines of beauty products. What will set face look apart from the
competition is our commitment to providing all of these services in one convenient
location and at a reasonable price which can b afforded by most of the ladies as well as
college girls. Face look is basically looking for setting a boys parlor as well which will
help face look to expand its work in the short span of time.

The salon will be located in a area known as jagathpura where there no such type of
parlor, mainly most of the ladies will b the main target. It is a area which is on
construction many new factories, houses, schools are under construction these days the
area is on the developing stage.

Start-up Summary

After spending two months searching for a place to set up my saloon decided to start a
salon from the ground up. The start-up capital will be used for the design, leasehold
improvements, and equipment of the salon.

Leasehold improvements will amount to approximately Rs.5000 as this is not a posh area
and in the jagathpura area I easily found a low cost place to set up my saloon, and salon
equipment will cost about 10 lakh which will include the interior, furniture, and the
machines.
 start up

assets loan
60000
50000
40000
amount 30000
20000
10000 expenditure
inv
0
expenditure inv
category

Start-up

Requirements

Start-up Expenses
Rent deposit 5000
Other 0
Total Start-up Expenses 5000

Start-up Assets
Cash Required 5000
Other Current Assets 600
Long-term Assets 59,500
Total Assets 60,600

Total Requirements 62,417

Start-up Funding

Start-up Expenses to Fund 5000

Start-up Assets to Fund 60,6000
Total Funding Required 62,4170

Assets
Non-cash Assets from Start-up 60,1000
Cash Requirements from Start-up 50000
Additional Cash Raised 0
Cash Balance on Starting Date 5000
Total Assets 60,6000

Liabilities and Capital

Liabilities
Current Borrowing 0
Long-term Liabilities 61,9170
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 61,9170

Capital

Planned Investment
Owner 50000
Investor 0
Additional Investment Requirement 0
Total Planned Investment 50000

Loss at Start-up (Start-up Expenses) (50000)

Total Capital (53570)

Total Capital and Liabilities 60,6000

Total Funding 62,4170

Organisation
Hair & Beauty Salon will be organized and managed in a creative and innovative
fashion to generate very high levels of customer satisfaction, and to create a working
climate conducive to a high degree of personal development and economic satisfaction
for employees.

Training classes to help improve employee product knowledge and skills will be
conducted on a regular basis. As the business grows, the company will consider offering
an employee benefit package to include health and vacation benefits for everyone.

IN THE NEXT 3 T0 4 YEARS HOW I WILL EXPAND MY BUSINESS

 Marketing plan

Market description:-

Skill at what we do, good customer service, and creating a pleasant environment for our
customers will be important to implementing our business plan.

Hair & Skin Care Beauty Salon face look’s marketing strategy is a simple one: satisfied
clients are our best marketing tool. When a client leaves our business with a face look,
he or she is broadcasting our name and quality to the public. Most of our clients will be
referrals from existing clients.

As we have selected an area where there is some collages like seedling and gyan vihar
some hostels are also there I have targeted mainly the ladies and girls of the particular
area living in hostel n homes. There will b a minimum 20 o 25 customers a day as upon
the estimation. It will start getting a profit of 20 to 30% in the next few months.
Designing a marketing campaign specifically to target new customers for our saloon is an
excellent way to get business. Once a first time customer has visited our salon, it is smart
to follow up their visit with a phone call, e mail, or postcard. We will Take the
opportunity to thank them for their business and to ask a few questions about how they
liked the service they received. Besides gathering valuable information we will use to
improve our services, such a follow up contact also sends a strong message to our
customers that you care about their business and want to see them back in your salon
again.

Creating a business plan for our hair and beauty salon is an important step in building a
stronger, more profitable business.we will do targeted marketing campaigns that reach
the right customers who are most likely
likely to give our salon a try.

Competition analysis:-

Face look wants to set itself apart from other beauty salons that may offer only one or
two types of services. Having suryed from such types of salon, I have realized, from
talking with their clients, that they desire all of the services that we are proposing, but
they remain frustrated because they must get their hair done at one place, and nails done
at another. Although the focus of face look is hair services, we do wish to offer our
clients the convenience of these other services in one location.

There are a number of salons like ours, but they are mainly in the very high income parts
of jaipur like rajapark, tonk road, malviya nagar and surrounding areas. We do not intend
to compete with these so called "Day Spas." We wish to offer a middle ground for those
clients who can't quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be
pampered. Soft drinks will be offered to clients as they enter for service. Televisions will
be located in the waiting and hair-drying area.

Distribution:-

Our way of distribution is a simple one: satisfied clients are our best marketing tool.
When a client leaves our business with a face look, he or she is broadcasting our name
and quality to the public. Most of our clients will be referrals from existing clients. Our
research has shown that word of mouth is the best advertising for this type of business.
 Advertising:-

No major advertising campaigns are anticipated. business. We will, however, run specials
throughout the week. 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, say, banglore. A client would simply refer new clients to us,
and we will place a card in a box for each client she brings. The more they bring, the
more chances they have of winning the trip.

Products and Services:-

Face look is considered an upscale full-service beauty salon. We will offer a wide range
of services that include:

• Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling,

reconstructing, weaving, waving.
• Nails: manicures, pedicures, polish, sculptured nails.
• Skin Care: European facials, body waxing, massage.
• Silk wrap and fiberglass full set
• Eyelash and eyebrow tinting
• Full skin & body care service
• Full-day pampering
• Permanent makeup
• Eye brow eye line and lip line
• Wedding make up
 Hair cut Lip line

Hair wash n conditioning massage

Sales Forecast

The following table and charts show our projected sales. We expect income to increase
steadily over the next three years, as the reputation of the salon, its stylists and services
become apparent to the general public. Second year revenues also anticipate the addition
of one new stylist.

Note that we list no direct cost of sales here for services, only for products, since our
service costs are more accurately tracked as regular monthly expenses for supplies in the
Profit and Loss table.

Management Summary

FACE LOOK will be organized and managed in a creative and innovative fashion to
generate very high levels of customer satisfaction, and to create a working climate
conducive to a high degree of personal development and economic satisfaction for
employees.

Training classes to help improve employee product knowledge and skills will be
conducted on a regular basis. As the business grows, the company will consider offering
an employee benefit package to include health and vacation benefits for everyone.

Personnel Plan

The personnel plan calls for a receptionist who will greet customers and receive
payments for services and products. There will be two hair stylists, one beautician,one
techniction. Future plans include the hiring of a shampoo technician as the business
expands.
After few months.In the first year, assumptions are that there will only be three hair
stylists, a barber, and part time nail, facial, and massage technician until the business can
build a reputation that will attract others to work there.

Personnel Plan
2011 2012 2013
Stylist(2)
Stylist(2) 8000 9000 10,000
beautician 4000 4,500 5000
helper 3000 4000 4500
Shampoo
3000 3,500 45,00
Tech
Total People 5 5 5

Total Payroll 18000 21000 24000

 Financial Plan

Summary of financial need:-

Our goal is to be a profitable business beginning in the first month. The business will not
have to wait long for clients to learn about it since the stylists will already have an
existing client base.

To assure the start-up funds lender that the owners are financially stable, a personal
financial statement is enclosed illustrating other sources of income that include interest
and dividend income from investments.

Important Assumptions

The financials that are enclosed have a number of assumptions:

Revenues will grow at an annual rate of 15%, increasing 20% in November and
December due to a historical jump in revenues at this time of year. We anticipate this
increase to stay steady throughout the following year to account for the normal flow of
new clients coming into the salon. Estimates for sales revenue and growth are
intentionally low, while anticipated expenses are exaggerated to the high side to illustrate
a worst case scenario.

We did not use cost of goods sold in our calculations of net service sales, but included all
related recurring expenses, such as payroll and supplies, in the operating expenses area of
the profit and loss table. The only direct costs in the sales forecast are for projected
product sales.

Product sales are a minimal part of our market. We are not quite sure how much revenue
will be derived from products, so we took a low-ball approach and estimated sales of
Rs.10000a month. Also in the sales projections table are services such as nails and
massages. We are not quite sure how much revenue these two services will generate. We
are certain that in time these services will be a large part of our revenue, but to err on the
conservative side, we estimate revenues from these services to be only Rs 20000 a month
for the first year.

General Assumptions
2010 2011 2012
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
 Projected Cash Flow
We expect to manage cash flow over the next three years simply by the growth of the
cash flow of the business. The business will generate more than enough cash flow to
cover all of its expenses.

Pro Forma Cash Flow

2010 2011 2012

Cash Received

Cash from Operations

Cash Sales 166,4000 211,0220 239,9750

Subtotal Cash from Operations 166,4000 211,0220 239,9750

Additional Cash Received

Sales Tax, VAT, HST/GST

0 0 0
Received

New Current Borrowing 0 0 0

New Other Liabilities (interest-free) 0 0 0

New Long-term Liabilities 0 0 0

Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0

New Investment Received 0 0 0

Subtotal Cash Received 166,4000 211,0220 239,9750

Expenditures 2010 2011 2012

Expenditures from Operations

Cash Spending 46,4000 52,5200 54,8760

Bill Payments 99,5400 128,7300 147,2850

Subtotal Spent on Operations 145,9400 181,2500 202,1610

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid

0 0 0
Out

Principal Repayment of Current

0 0 0
Borrowing

Other Liabilities Principal

0 0 0
Repayment

Long-term Liabilities Principal

12,0000 12,0000 12,0000
Repayment

Purchase Other Current Assets 0 0 0

Purchase Long-term Assets 0 0 0

Dividends 0 0 0

Subtotal Cash Spent 157,9400 193,2500 214,1610

Net Cash Flow 8,4600 17,7720 25,8140

Cash Balance 8,9600 26,7330 52,5470

 Break-even Analysis
The break-even analysis shows that Trend Setters has a good balance of fixed costs and
sufficient sales strength to remain healthy. This calculation is focused on service sales,
and excludes costs related to product sales. Our conservative forecast shows the salon just
passing the break-even point throughout most of the first year, but we expect actual sales
to be higher.

Break-even Analysis

Monthly Revenue Break-even 12,9905

Assumptions:

Average Percent Variable Cost 5%

Estimated Monthly Fixed Cost 123460

 Projected Profit and Loss:-
The following table shows our very conservative profit and loss projections for the next
three years. The table includes the payments for all independently contracted stylists and
technicians, as well for all regularly occurring supply expenses associated with service
sales.

profit and loss

60000
50000
40000
amount 30000
20000 Series1
10000
0
1 2 3
ye ars
Pro Forma Profit and Loss

years 2010 2011 2012

Expenses

Payroll 46,4000 52,5200 54,8760

Marketing/Promotion 22,8000 24,0000 26,0000

8,146
Depreciation 8,1460 8,1460
0

Rent 22,7400 22,7400 22,7400

Utilities 4,2000 4,2000 4,2000

Insurance 1,2000 1,2000 1,2000

Payroll Taxes 0 0 0

Independently contracted
40,4000 55,0000 69,0000
stylists

Supplies 6,0000 6,0000 6,0000

Other 0 0 0

Total Operating Expenses 151,8860 173,8060 192,1620

Profit Before Interest and

10,1940 32,9160 43,4130
Taxes
EBITDA 18,3400 41,0620 51,5590

Interest Expense 5,5420 4,3920 3,1920

Taxes Incurred 1,3960 8,5570 12,0660

Net Profit 3,2570 19,9670 28,1550

Net Profit/Sales 1.96% 9.46% 11.73%

 Projected Balance Sheet
As shown in the balance sheet, we expect a healthy growth in net worth.

Pro Forma Balance Sheet

2010 2011 2012

Assets

Current Assets

Cash 8,9600 26,7330 52,547

Other Current Assets 6000 6000 6000

Total Current Assets 9,5600 27,3330 53,147

Long-term Assets

Long-term Assets 59,5000 59,5000 59,500

Accumulated Depreciation 16,29200 24,4380

8,1460

Total Long-term Assets 51,3540 43,2080 35,0620

Total Assets 60,9140 70,5410 88,2090

Liabilities and Capital 2010 2011 2012

Current Liabilities
Accounts Payable 9,0570 10,7170 12,2300

Current Borrowing 0 0 0

Other Current Liabilities 0 0 0

Subtotal Current Liabilities 9,0570 10,7170 12,2300

Long-term Liabilities 49,9170 37,9170 25,9170

Total Liabilities 58,9740 48,6340 38,1470

Paid-in Capital 50000 50000 50000

Retained Earnings (1,8170) 1,4400 21,4070

Earnings 3,2570 19,9670 28,1550

Total Capital 1,9400 21,9070 50,0620

Total Liabilities and Capital 60,9140 70,5410 88,2090

Net Worth Rs.1,9400 Rs.21,9070 Rs.50,0620