((10123_pujitha Biz Plan

7/31/2019 ((10123_pujitha Biz Plan

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Business plan For

Saryu Cutie& beautie palace

for

women beaty care

(Lakshmi Pujitha.S)

(10123)


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Contents

EXECUTIVE SUMMARY .................................................................................................................................. 2

BUSINESS DESCRIPTION ................................................................................................................................ 3

ANALYSIS OF THE MARKET ................. ................. ................. .................. ................. ................. .................. ... 5

MANAGEMENT TEAM ................................................................................................................................. 10

OPERATIONS ............................................................................................................................................... 12

RISK AND UNCERTAINTY ............................................................................................................................. 13

FINANCIAL PROJECTIONS ............................................................................................................................ 13

EXECUTIVE SUMMARY

The Saryu Cutie & Beauty Palace for Women, it sells instant designing and stitching of

clothes, Herbal Beauty care Products for women. By providing more Infrastructural facilities,

new designs, Speed delivery, beauty care products by assuring safety, product and service

development, and marketing and geographic positioning.

Coming to the Beauty Care herbal products, these products include herbal therapy packs,

soaps, massage oil, face packs, moisturizers, herbal bath powder. We will get all the herbal

beauty products from trusted suppliers to ensure quality and safety in the beauty care products.

Herbal products have grown in popularity with consumers over the past ten years. Where once a

customer would have to go to a specialty shop to purchase herbal products, now those same

product are available at the local supermarkets. The demand has created a big opportunity for the

industry for supplying herbal products to companies.

Coming to women's clothing it is actually innovative thing here we will using instant

design and stitching process, and that will goes like this all customer will have some requirement

about their dress designs so we are providing that opportunity in our Saryu Cutie And Beauty

Palace like they will come to our showroom and they will explain their interested design to our

designers they will design that dress using computer or laptop and show that to the customer and

if they like it they give that to our tailors they will stitch that very fastly, mean while they will go

and do shopping our herbal beauty care products and know their importance from our companies


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beauticians. Ready to wear personal designing helps women to develop their personal styles and

they will enhance our reputation.

Saryu cutie n beauty palace will create awareness by campaigns, and improve sales by

maintaining public relations. Additionally we will meet our customers where they are by doing

mobile advertisement campaigns near apartments and shopping malls.

We will have one advisory team that consisting of expertise in accounting, legal

contracts, fashion and design and beauty care.

BUSINESS DESCRIPTION

Business Idea

Garments & Cosmetics business has become a very profitable business in India. This

business is growing day by day. People have become more style conscious nowadays. This has

provided a lot of scope for Garments & Cosmetics business in India. With increase in

competition we need to put in lot of efforts to come out with latest design and style. The better

your designs are, the newer your concepts are the brighter are your chances to flourish. Here we

will design the clothes by laptops and and using high technology scanners which involves RGB

colors in that.

Objective

Create, nurture, and enhance customer relationships through problem and opportunity

awareness, assessment of desired goals and results, and through routines and communications

that constantly reinforce target relationships.

Providing women garments and cosmetics products at an affordable price. Creating

awareness by advertising in local newspapers and magazines .

Vision

Our vision is quite simple. We work each and every day to help people live in stylish

way. We achieve our vision by helping people to discover their potential and achieve their goals


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by offering better brands and opportunities for the future, and by sharing generously with the

global community.

Mission

To deliver high-quality products in the areas like Garments and cosmetics. We want to be the vehicle for our customers employees to fulfill their dreams. We offer a way to look great and have fun by using our Garments & Cosmetic and make

it possible for dedicated people to realize their career dreams.

To provide women good quality, well-constructed fashions from prominent designers. To offer a variety of beauty care herbal products and highly fashionable clothing. To help women learn what clothing and styles go best with their unique personalities. To provide herbal products that heal, sooth and cleanse our customers.

Innovative Idea

Innovative ideas usually need some explanation before they turn into actual innovation.

Garments designing is one of those innovative projects thats worth explaining. Everyone will

benefit, both fashion lovers and customers. Now days everyone became health conscious and

want to be stylish, so we can catch that we can do it better by providing good quality.

Instant stitching and designing the clothes according to the customers requirement using

the technology for designing the clothes and delivering them on time, and in presence of

beauticians giving suggestions to the customers which herbal products suits to which customer.

My Capabilities

Promotions and Advertising strategies are in a innovative way. A targeted strategy that closes the sale and delivers results. Building loyalty programs for the customers. Inventory Management is done in an effective way. To differentiate the customers requirements by identifying their needs. Maintaining good relationship with suppliers, customers, Designers and Beauticians.


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ANALYSIS OF THE MARKET

Market Analysis Summary

Herbal products have grown in popularity with consumers over the past ten years. Where

once a customer would have to go to a specialty shop to purchase herbal products, now those

same products are available at the local supermarket.

Currently, the industry can be divided into two segments:

Herbal Health Products Herbal Beauty Products.

There are various economic forces that affect garment retailers. Consumer confidence isthe most important people don't shop when they are not feeling comfortable with shopping

environment. Unemployment also has an effect, in that fewer women out in the workforce means

less disposable income for high-end quality clothing. Thus, the large discounters are now

working with top designers to bring designer apparel to the masses. Although they can't compete

on quality, their continued development of the trend could have a direct impact on retailers who

sell designer clothing during tough economic times.

Market Segmentation

Herbal Heath Products: Here it is home to a number of small-to-medium size herbalheath product companies. All of these companies buy raw or finished product from third-

party vendors. Their products are sold in health and natural food stores on the East Coast

and Midwest.

Herbal Beauty Products: Again here it is also home to a number of small-to-medium sizeherbal beauty product companies. All of these companies buy raw or finished product

from third-party vendors. Most of their product are sold in health and natural food stores

only on the East Coast.

Garments: It is a huge and innovative market the more the designs you createinnovatively and effectively the more customers will show interest to buy at our shop.


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percent of these companies distribute their products nationally. Most of these companies also

only compete regionally though there are a handful that dominate the national market. As sales

grow in herbal beauty product, more new companies will enter the marketplace.

Customers will learn about the our company through the following sources:

Neighborhood. Friends & Customers (word of mouth and email) Personal shoppers and stylists Women's Fashion Magazines articles and reviews. Local press mentions & ads.

The Primary Customer

The primary customer is a professional woman with a household income over 20000. Her

main characteristics are listed below:

Demographics

Professional woman (ages 30-55). Household income over 20,000. College-educated. Lives in a higher-income in our neighborhood.

Psychographics

Looks for bargains (seasonal fashion) but willing to spend money on quality, core items. Would like more time or help in understanding what clothing or what herbal products are

right for her.

She wants to look her best because she wants to feel good about herself as well as make agood impression at her job.

Customer needs, expectations and buying patterns

Our customer loves to shop and enjoys going to boutiques. She is knowledgeable about

designer fashions and tends to shop for seasonal wardrobes and picks up various fashion and

basic pieces throughout the year. By offering fashionable accessories and wardrobe organization

items, Saryu will be able to grab a larger share of her wardrobe budget. She is used to coming

into the store and browsing through the clothing items and trying on what interests her. She


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expects a warm and comfortable environment and nice dressing rooms. She enjoys being left

alone but also enjoys the special touches of personal shopping assistance and having the ability

to special order items.

Current Trends

People are shopping online for convenience & value growth of sales on the Internet. Overbuilding by specialty stores and other chains. Repositioning of full-price/multi-line department stores. Category-killer superstores. Continuous changes in demographics, tastes and fashions. Easy availability of consumer credit.

Economic, Cultural and Environmental Conditions

Weather, seasonal events, holiday shopping, competitor marketing, tourism can affect the

performance of garments and herbal products business. On a macro-economic level, consumer

confidence, interest rates and inflation rates all have an effect. Rising unemployment, political

concerns and deflation also pose risks.

Positive Factors:

Clothing Industry Impact on Business

Very low interest rates Cost of financing low

Easy availability of consumer credit Higher ticket sizes on credit card purchases

Relatively low unemployment, and very low

inflationStable employees & businesses

A relatively low personal savings rate Increased consumer spending


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Negative Factors:

Clothing Industry Impact on De Kliek

Weakening consumer confidence (influenced by

global terrorism, tension & uncertainty)Decreased sales

Slowly increasing unemployment Value and sale shopping

Competition and Buying Patterns

Quality and timeliness are the essential factors in being successful as a supplier to an

herbal product company. A delay in delivery will impact the company's ability to meet delivery

deadlines. Quality is also an important factor because word of mouth is one of the strongest

marketing tools with herbal products and clothing business. The local success of an herbal

product many times leads to a larger company procuring the product for their line. The

popularity and customer satisfaction of these products was an important selling point.

Products

The product line of Herbal products in Saryu palace are:

Herbal Therapy Packs for back and neck pain and relief of muscle aches, filled withwheat berries and flax seed and 10 herbs. These are made of natural cotton or patterned

flannel and can be heated in the microwave oven or cooled in the freezer for optimum

benefit.

Oil for use as an anti-inflammatory or for burns. Eye packs in eye-pleasing patterns that help relieve sinus discomfort and eyestrain. Moisturizer for face and hands with various scented oils. Soaps created with such herbs as powdered balsam and rose petals marbleized throughout

each cake, gently scented.

Herbal bath bags of lavender, peppermint, oatmeal and herbs. Bath powder made from arrowroot, cornstarch, rose petals and other herbs

The product line of Garment collection in Saryu palace are:


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It will carry Ready to wear designer diffusion lines and casual apparel & accessories for

women.

Fashion Accessories: Designer jewelry, Handbags, Belts Sachets, Hangers Designer garments. Different Cloth materials for instant designing and other products for decorating dress

after stitching.

Various brands of jeans including, Lee Cooper, Levis, Denizen, Pepe Jeans, etc.

Competitive Edge

The competitive advantage of Saryu palace is the consistent quality of the herbs that are

at the core of each product. The products have been tested locally for years developing and

establishing the customer satisfaction level demanded by Saryu palace.

Coming to the designing of clothes its a huge and developing market if we have

innovative idea and new designs then only we can survive in the market.

Marketing Strategy

Positioning Statement

We provide professional women with upscale designer clothing and exclusive personal

services. Our main competitive advantage is the unique Style Assessment and education

emphasis in helping women develop their personal style.

Brand Positioning

Style Centre is added to the overall name to suggest that women can come to the boutique

to learn about themselves and experiment with their personal style. Style Center looks to be the

leader in providing exceptional service and assistance for women's fashion needs. The elegance

of the name suggests the types of clothing and accessories that will be featured.

MANAGEMENT TEAMManagement TeamKey Personnel

There will be 3 designers who design the garments according to the customer needs and 2

beauticians to take care of beauty care and giving suggestions about precautionary issues.

Managers who looks after the showroom. Four employees by the end of the first year who looks


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after the showroom and can be increased in the next year. The manager will also be responsible

for the taking the requirement of customers their interest for designing dress and their problem

with the cosmetics. The Assistant Manager will be paid at a rate of Rs.20,000 and the two

employees will be paid at a rate of Rs.15,000, plus benefits. Designers will be paid based on the

price of the dress.

Personnel Plan

Year 1 Year 2 Year 3

Partners Rs.2,500,000 Rs.3,000,000 Rs.4,000,000

Assistant

Manager

Rs.2,40,000 Rs.2,40,000 Rs.3,00,000

Employees Rs.1,80,000 Rs.1,80,000 Rs.2,40,000

Total People 13 13 17

Tailors Rs.1,50,000 Rs.1,80,000 Rs.3,00,000

Total Payroll Rs.2,910,000 Rs.3,000,000 Rs.4,060,000

Description of the team

As a small business, we have a small staff. All partners will assume leadership roles

within the company and will be responsible for daily operations, overseeing marketing efforts,

buying merchandise and managing inventory and taking care of suppliers of herbal products

which ensures safety to the customers and all other administrative duties. We will manage the

day-to-day operations including supervising staff, maintaining inventory and bookkeeping. They

will also work with our public relations firm to ensure superior marketing plans are in place andimplemented.

Organizational structure:

DesignersBeauticians

EmployeesTailorsAsst Manager

Managing Director

Manager

Employees


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OPERATIONS

Location and Facilities

The location of the showroom will be in an upscale area of Hyderabad, in Hi-tech City.

The advantages of this location are that it is situated around the upper scale households and

corporate, so it has easy accessibility to the target market. It will also attract women from

throughout other areas of Hyderabad as well as the few women who come to Hyderabad from

out of town to shop.

Technology Requirements

It will require basic computer equipment to maintain customer database and to design

women clothing . Apart from that it will require a system of bar coding and retrieval for all the

labels on the apparel and accessories.

Operating Methods / Procedures

The operations of the business will be to service walk-in customers and any customers

and their own designer dress will be delivered within less time. The customers will be

approached by the Designers in the style centers to give them styling tips and beautician to give

beauty tips and how to take care of that. At the back-end, our team of tailors will make the

clothes based on designs given by the partners.

Capital Expenditure

The capital expenditure is Rs.5,,72,000 which is divided into: Furniture Rs. 3,50,000 and

Office EquipmentRs.2,22,000.

Particulars Year 1 Year 2 Year 3

Salaries Rs.2,910,000 Rs.3,000,000 Rs.4,060,000

Electricity Rs.1,00,000 Rs.1,00,000 Rs.1,00,000

Maintenance Rs.45,000 Rs.45,000 Rs.45,000Total Operating cost Rs.3,055,000 Rs.3,145,000 Rs. 4,205,000


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RISK AND UNCERTAINTY

Potential problems

Potential problems may rise are:

Salary issues with the employees. Job satisfaction level of employees. Working environment conditions. Competitors may imitate our innovative ideas. Safety issues about herbal products.

Obstacles and risks

Economic risks which could impact demand for clothing and herbal products. Changing market trends. Changing fashion and needs. Satisfying our customers with our innovative idea.

Uncertainty

The sales forecasts projected are uncertain. They depend on a number of external factors

like economy, industry growth etc, and they also include internal factors like inventory control,

quality maintenance, good design and product delivery.

FINANCIAL PROJECTIONS

PRO FORMA PROFIT & LOSS(in Rs)

Year 1 Year 2 Year 3

Sales 513,003 598,903 608,902

Direct Cost of Sales 205,320 238,020 240,396

Other Costs of Goods 0 0 0Total Cost of Sales 205,320 238,020 240,396

Gross Margin 308,683 361,883 369,507

Gross Margin % 60.17% 60.42% 60.68%

Expenses

Payroll 130,500 122,000 137,500

Advertising 5,300 4,800 4,800


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PRO FORMA CASH FLOW(IN RS.) Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales 420,500 455,300 543,300

Subtotal Cash from

Operations

420,500 455,300 543,300

Additional Cash Received

Sales Tax, VAT, HST/GST

Received

0 0 0

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 420,500 455,300 543,300

Depreciation 4,889 4,889 4,889

Interest Expense 4,716 4,716 4,716

License & Permits 110 0 0

Maintenance - Office 2,500 2,500 2,500

Marketing and PR 9,900 10,500 10,500

Miscellaneous 3,300 3,300 3,300Rent 36,300 36,300 36,300

Repairs 700 700 700

Security 338 345 345

Supplies - Office & Store 4,100 4,100 4,100

Telephone / Internet Access 1,440 1,440 1,440

Utilities 2,050 2,050 2,050

Payroll Taxes 10,090 10,515 10,890

Employee Benefits 9,050 9,150 9,050

Other 2,400 2,400 2,400

Total Operating Expenses 227,683 219,705 235,480

Profit Before Interest andTaxes

81,000 142,178 134,027

EBITDA 85,889 147,067 138,,916

Interest Expense 6,753 5,963 5,138

Taxes Incurred 15,916 31,329 28,891

Net Profit 58,331 104,886 99,998

Net Profit/Sales 28.40% 44.07% 41.6%


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Expenditures Year 1 Year 2 Year 3

Expenditures fromOperations

Cash Spending 91,000 110,000 127,500

Bill Payments 209,075 195,000 389,000

Subtotal Spent onOperations

300,075 305,000 516,500

Additional Cash Spent

Sales Tax, VAT, HST/GST

Paid Out

0 0 0

Principal Repayment of

Current Borrowing

0 0 0

Other Liabilities Principal

Repayment

0 0 0

Long-term Liabilities

Principal Repayment

8,900 8,900 8,900

Purchase Other CurrentAssets

0 0 0

Purchase Long-term Assets 0 0 0

Dividends 900 900 900

Subtotal Cash Spent 309,875 314,800 526,300

Net Cash Flow 110,625 140,500 17,000

Cash Balance 12,320 152,820 169,820

Balance SheetYear 1 Year 2 Year 3

Assets

Current Assets

Cash 66,300 152,650 306,368

Accounts Receivable 20,618 30,090 42,812

Inventory 4,991 5,975 6,665

Other Current Assets 0 0 0

Total Current Assets 91,909 188,715 355,845

Long-term Assets

Long-term Assets 0 0 0

Accumulated Depreciation 0 0 0

Total Long-term Assets 0 0 0

Total Assets 91,909 188,715 355,845

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable 19,270 17,836 20,550

Current Borrowing 1,550 2,680 3,164


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Other Current Liabilities 0 0 0

Subtotal Current Liabilities 20,820 20,516 23,714

Long-term Liabilities 0 0 0

Total Liabilities 20,820 20,516 23,714

Paid-in Capital 3,665 3,665 3,665

Retained Earnings ( 3,365) 7,497 30,007Earnings 8,862 28,510 34,216

Total Capital 9,162 39,672 67,888

Total Liabilities and Capital 31,982 60,188 91,602

Net Worth 59,927 128,527 264,243

((10123_pujitha Biz Plan

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