ENT300 - Final Project _Hair Salon

Prepared by :

Muhammad Aizat bin Ishak (2007232678) Muhamad Syapiq bin Mat Nor (2007232696) Muhamad Azfar bin Mohd Sharipp (20072)

Nur Fatin binti Abdullah (20072) Nur Nadiati binti Ismail (20072)

-ACD6A5-

Arte de Pelo Hair Salon ETR 300 Business Plan

Arte de Pelo Hair Salon

Table of content

Contents Page

Executive

summary

1.0 Introduction 4

2.0 Purpose 5

3.0 Company background 6

3.1 Logo 7

4.0 Partners background 8-12

4.1 Partnership agreement 13-16

5.0 Location of business 17

5.1 Layout plan 18

5.2 Advantages 19

6.0 Marketing plan 20

6.1 Service

description

20

6.2 Target Market 21

6.3 Market size 22

6.4 Competition 23-24

6.5 Market share 25-30

6.6 Sales forecast 31-34

6.7 Marketing strategy and budget 35-44

6.8 Marketing budget 45

7.0 Operations plan 46

7.1 Process planning 46

7.2 Operations layout 47

7.3 Production planning 48

7.4 Material planning 49-55

7.5 Machines and equipment planning 56

7.6 Manpower planning 57-58

7.7 Overheads requirement 58

7.8 Location 59

7.9 Business and operations hours 60

7.10 Licence, permits and regulations required 61

7.11 Operations budget 62

7.12 Implementation schedule 63

8.0 Organizational

plan

64

8.1 Organization mission and vision 64

8.2 Organization chart 65

8.3 Manpower planning 66

8.3.1 Schedule of task and responsibilities 66-67

8.3.2 Schedule of remuneration 68-69

8.4 List of office equipment 70-71

8.5 Organizational/administration budget 72


9.0 Financial plan 73

9.1 Project implementation cost 74

9.2 Sources of financing 75

9.3 Pro forma cash flow statement 76-77

9.4 Pro forma income statement 78

9.5 Pro forma balance sheet 79

9.6 Financial Analysis 80-85

9.7 Budget 86-88

9.8 Depreciation schedule 89-90

9.9 Loan repayment schedule 91

9.10 Sales and purchases projection. 92-93

10.0 Appendices 94-100


Executive Summary

1.0 Introduction

Arte de Pelo is a hair salon located in 15, Jalan Telawi 4, Bangsar, 59100 Kuala

Lumpur that allows the entire family to have their hair needs satisfied in one convenient

location. Arte de Pelo serves men, women, and children and accepts appointments as well as

walk-ins. Arte de Pelo also sells retail hair care products. Arte de Pelo is able to serve the

entire family in one quick, convenient visit.

While there are many "quick salons" like Arte de Pelo, Arte de Pelo will excel due to

its attention to detail regarding customer service. Through unheralded customer attention,

Arte de Pelo will slowly but surely gain market share as it services the entire family, creating

long-term relationships. Lastly Arte de Pelo location will allow it to attract a lot of walk in

traffic.

People across Malaysia have decided to use our services when they want to fulfil their

hair need, for example to have their hair cut or to make over their appearance through

different hair style. Arte de Pelo has foreseen this opportunity to provide the finest and

highest quality of hair cut and styling to all people, despite their age or gender. This has

shown that Arte de Pelo has the calibre to be one of the most successful hair salons in

Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success

provided that it is handled efficiently. The people have always needed to take care of their

hair, as the hair reflects their personality, and to make them feel more confidence and

comfortable. Arte de Pelo sees this as a way to prosper in this market, by taking advantage of

all these people‟s need.


2.0 Purpose

This business plan is prepared because to convince venture capitalists, investors and

banker in order to raise capital and obtain support for the venture. We need investors to raise

fund for the purpose of company management and upgrading.

This business plan is also being drafted so that Arte de Pelo will get the financing it

needs in order to start its business. The loan is crucial in order to start the business, so the

presentation of this business plan is vital to gain the confident of the bank.

Arte de Pelo has asked from Maybank for a loan up to RM 50,000 so that it can build

itself in this business. The other RM 100,000 will be from the accumulated capital provided

by each shareholder in the company. Each shareholder has agreed to contribute RM 20,000

each.

The financing will be used to purchase a start up assets like salon equipments,

furniture and fittings, store front and artwork, advertising and many more. We can get all this

items from our trusted suppliers, and they have agreed to provide products with the best offer

ever.

We also use this business plan as a guideline to the manager in order to succeed in the

business. Arte de Pelo has all the ingredients to be one of the best in the business. We have

set out our entire target in order to be successful. This business plan will includes company

background, marketing strategy, operation plan, sales forecast and also the most important,

the financing plan of the business.

Arte de Pelo will fully utilize all the assets so that it can maximize the profit. The

profit that the company gets will be used to pay the loan that is given. Arte de Pelo is

completely confident that it will be able to pay the loan back including the interest payment

in the loan given.


3.0 Company background

Name of company : Arte de Pelo Enterprise.

Address : 15, Jalan Telawi 4,

Bangsar,

59100 Kuala Lumpur,

Wilayah Persekutuan.

Telephone number : 03-22827667

Fax number : 03-22827678

Email : [email protected]

Form of Business : Partnership

Main activity : Hair cutting and stylist

Date of Registration : 1 April 2010

Number of Registration : M0457129-D

Date of Commencement : 8 April 2010

Initial Capital : RM 100,000 (own)

RM 50,000 (loan)

Name of Bank : Maybank Bhd


3.1 Logo

This logo represents:

Image: beauty is essential to all people.

Black and grey colour: symbolize elegance and stylishness.


4.0 Owners or Partners background.

CHIEF EXECUTIVE OFFICER

Name: Muhammad Syapiq bin Mat Nor

Date of birth: 29 march 1987

Place of birth: Hospital Kuala Lumpur

Address: No 23, Lorong D/2, Kampung Pandan,

55100, Kuala Lumpur

Interest: Racing cars and drifting.

Qualification: BACC in year 2005

(Graduated in Uitm Shah Alam),

ACCA in year 2007

(Graduated in Dublin business school)

Position: Chief executive officer

Skills: 1. A visionary and full of energy to drive towards success

2. Ability to manage employees efficiently

Experiences: Has 4 years of working experiences in a corporate company and

worked as a finance department manager until he decided to pursue a

business in this market.

Details of the post: As the Chief executive officer of the company, this job requires the

manager to set up the mission, vision and objective for the long term of

the company. The Chief executive officer also needs to organize,

motivating and to control of his down liner to be always on top of their

job.


FINANCIAL MANAGER

Name: Muhammad Aizat b. Ishak

Date of Birth: 8th February 1989

Place of Birth: Hospital Muar, Johor.

Address: 45-15-12, Menara Orkid,Bandar Baru

Sentul,51000 Kuala Lumpur

Interest: Surfing, Thaiboxing, Singing.

Qualification: B.ACC in year 2007

(graduated in UiTM Shah Alam),

ACCA in year 2010

(graduated in Dublin Business School,

Ireland)

Position: Financial manager

Skills: 1. Very good accountability in doing his job.

2. A person with a broad view of management and corporation.

Experiences: Was an accountant for a very well known corporate company. He

worked there as an accountant for 2 years before he decided to be a

business partner in this project.

Details of the post: As financial manager, the main job in this post is to record everything

about finance of the company. This job also needs high experience of

evaluating and decision making about finance. More important, the

prediction of the future economic, with this ability, we can maintain

our company financial better.


MARKETING MANAGER

Name: Muhamad Azfar bin Mohd Sharipp

Date of birth: 29 June 1985

Place of birth: Hospital Besar, Klang

Address: No 3, Jalan Jeram,8/22,40000,Shah Alam,

Selangor Darul Ehsan

Interest: Soccer, rock climbing and sky diving

Qualification: Bachelor in Marketing

(University of Carnegie Mellon,

Pittsburgh US),

Certificate III in hairdressing

(UK Hair Academy, United Kingdom)

Position: Marketing Manager

Skills: 1. Able to market products effectively

2. Has a very good communication method

3. Very good in getting point across

Experiences: A very experienced marketer and hair dresser. Before agreeing to this

job, he was an assistant marketing executive at A Cut Above for 3

years. His experiences are very valuable to Arte de Pelo.

Detail of the post: As a Marketing Manager, the main role in this post is to gather

sufficient and reliable information from the public and current events

to ensure that the service we provide meets their expectation. More

importantly, marketing is an effective way to spread the word about the

outstanding service that we provide. For one day, Arte de Pelo will be

a major business in hair styling and salon.


PUBLIC RELATION / OPERATIONAL MANAGER

Name: Nur Fatin Binti Abdullah

Date of birth: 8 November 1985

Place of birth: Hospital Besar Kota Bharu Kelantan

Address: Q1-3, Jalan Lengkok Abdullah, Bangsar

59000 Kuala Lumpur

Interest: Shopping, dancing and

mountain climbing

Qualification: Bachelor in Business Admin,

(University of Surrey, United Kingdom)

Certificates III in Hair Dressing

( Brisbane School of Hairdressing,

Australia).

Position: Public Relation Manager and Operational Manager.

Skills: 1. Has the ability and confidence to face people

2. Speaks bilingually

3. Good in controlling products and planning.

Experiences: Before joining this venture, she had worked in Thomas n Guys as

senior hair cutter for 2 years and had worked as sales person at ZARA

Company for 8months.

Detail of the post: As a Public Relation Manager, the main role in this post is to maintain

a good relationship between customers and company, as the customers

will become loyal. And as an Operational Manager, the main role in

this post is to concerned with the production of goods and services and

ensuring that business operations are efficient in terms of using as little

resource as needed, and effective in terms of meeting customer

requirements.


HUMAN RESOURCE MANAGER

Name: Nur Nadiati binti Ismail

Date of birth: 20 November 1985

Place of birth: Hospital Uni. Sains Malaysia,Kelantan

Address: 201, Jalan 1, Taman Sekamat,

43000 Kajang, Selangor.

Interest: Play piano, sky diving and sewing.

Qualification: Bachelor in Accountancy

(UiTM Shah Alam),

Bachelor‟s Degree in Human Resource

Management (University of

Southampton, United Kingdom)

Position: Human Resource Manager

Skills: 1. Ability to find the right person for a job

2. Has a great conversing method

Experiences: Before joining this venture, she has worked as a human resource

executive in Celcom Communication for 2 years

Detail of the post: As a Human Resource Manager, the main roles in this post is to

recruiting and interviewing new potential staff as well as orientate new

staff, explaining job description, policy, and procedures of Arte de

Pelo Salon.


4.1 PARTNERSHIP AGREEMENT

This agreement will bind the partners with the following aspects:

4.1.1 Types of Business:

The business has been registered under the Register of Business using the

name of Arte de Pelo Enterprise. This business is a company that generally offers

Hair Salon services. The service line of this company is hair cut, hair colouring, hair

rebonding and hair perm.

4.1.2 Capital:

Each partner has contributed the capital as below:

Muhamad Syapiq bin Mat Nor RM 20,000

Muhammad Aizat bin Ishak RM 20,000

Muhamad Azfar bin Mohd Sharipp RM 20,000

Nur Fatin binti Abdullah RM 20,000

Nur Nadiati binti Ismail RM 20,000

RM 100,000


4.1.3 Period of Partner Agreement:

From the consent of all partners, we agreed that:

They had to run at least five years (5) and partners are prohibited from

dissolving the business without the consent of other partners resolutions to other

partners.

4.1.4 Distribution of Profits and Loss:

Every partner has belonging this business and the amount of the profit from

this business as well. The partners will distribute profit according to capital

distribution. Any losses will be liable among partner equally according Partnership

Act 1961.

4.1.5 Perquisite:

Any additional pay is to follow current profit and will be present in the end of

annual financial report.

4.1.6 Partnership Property:

Owned by the partnership and partners because it is not separate legal entity

(Partnership Act 1961 S.22)

4.1.7 Death:

The representive of the death partners can appoint to the business under the

Malaysian Law. The close member‟s of the family upon the entire death partner share

can make the transmission of the state.

4.1.8 Bankruptacy or Dissolution of Partnership:

When the partner is found lunatic, permanently unsound mind [Partnership

Act 1961 S.37 (a)]

When a partner permanently incapable of performing his part of the partnerhip

contract [ Partnership Act 1961 S.37 (b)]

When a partner calculated to affect prejudicially the carrying on the business [

Partnership Act 1961 S.37 (c)]


When the partner willfully or persistently commits a breach of the partnership

agreement or otherwise [ Partnership Act 1961 S.37 (d)]

When the businness of the partnership can only be carried on at a loss

[Partnership Act 1961 S.37 (d)]

Whenever in any case circumstances have arisen which in the opinion of the

court , render it just and equitable that the partnership be dissolve [Partnership

Act 1961 S.37 (f)]

4.1.9 Retirement:

If any partner who want to retire from the business must have consent from

others partners. They will get back their invets and the notice of retirement must be

given 3 months before the retirement date.

4.1.10 Others:

Each of the partners must act in good faith and respect other partners. Partners

must have willingness and interested to make the business more succesful and giving

full commitment for the business. They also must be honest and straight forward in

order to execute responsible as a partner.


___________________

(MUHAMAD SYAPIQ BIN MAT NOR)

CHIEF EXECUTIVE OFFICER

___________________

(MUHAMMAD AIZAT BIN ISHAK)

FINANCIAL MANAGER

____________________

(MUHAMAD AZFAR BIN MOHD SHARIPP)

MARKETING MANAGER

_____________________

(NUR FATIN BINTI ABDULLAH)

OPERATION/PUBLIC RELATION MANAGER

_____________________

(NUR NADIATI BINTI ISMAIL)

HUMAN RESOURCE MANAGER


5.0 Location of business.

Arte de Pelo

15, Jalan Telawi 4,

Bangsar,

59100 Kuala Lumpur,


We are

here!!


5.1 Layout plan.

40’ ft

BUILDING SIZE

40‟ft length X 60‟ft width

12‟ft height

60’ ft


5.2 Advantages

One of the advantages of setting up our shop in Jalan Telawi, Bangsar is that we have

a constant traffic of customers. People who get into the Megamall, Bangsar Village and

Bangsar Shopping Centre are bound to come to the shop if they see something from our

services that we provide that attracts their eyes. It is also are very close to housing area and

workplace area. We believe this will be one of the best reasons why this site of business will

be one of the best decisions that we have made.

Another reason is that Bangsar are the centre of attraction of people from many ages,

ethnics and foreigners as well. Foreigners are usually like to hang out at Bangsar as Bangsar

is commonly known as „Beverly Hills Malaysia‟. So this is one big advantage that our shop

can be highly known not only for resident in Malaysia but also the foreigners.

There are a-lot of shop lots especially boutiques and restaurant near to our shop. So

this will allow us to attract more customers to visit our shop when they pass by and if the

customers have their friends that wait for them, they can enjoy to window shopping or visits

the boutiques or other shops while waiting for their friend to finish the hair services if they do

not want to sit and relax at the waiting room.

Bangsar is located in the middle of Kuala Lumpur and very near to Damansara. It is

also near to KL Sentral, Midvalley Megamall, Bangsar Village 1 & 2, and also Bangsar

Shopping Centre. So, it is not possible to get public transport and it is easier to get to the

shop.

There are also many amenities available here. For example, mosque, restaurants,

boutiques, banks, sports centre, shopping malls, schools, public transportation like buses and

taxis, ATM machines and many more.

We believe that this premise is the best for our business to operate as it has so many

advantages around the location and this will increase our profit and made our shop highly

known to everyone.


6.0 Marketing plan

6.1 Service Description

6.1.1 Services

Arte de Pelo provides hair styling for the entire family. This includes hair cuts for men and

women, hair perm, hair rebonding and hair colouring for men and women, as well as hair cuts

for children. Shampoos will be offered for all adult services. Service is offered on a walk-in

basis or by appointment. Arte de Pelo will emphasize a customer-centric service where the

customer's needs are always the priority.

6.1.2 Service Descriptions

The following is an overview of our main services by category:

1) Hair cut – This is the main service that we offered here. There are levels of

hair cutter we have provide with from junior, senior and

professional to meet the customers budget and expectation.

2) Hair colouring – As this type of services, we provide various types of colour to be

match with customers demand.

3) Hair rebonding –We offer this service for those who want to straighten their hair

either women or men.

4) Hair perm – This is one of the services we provide for those who want to curl

their hair.


6.2 Target Market.

Arte de Pelo target markets will consist of the following groups:

6.2.1 Men will typically make up 70-75% of the clientele.

o Men have shorter hair requiring a faster, simpler job.

6.2.2 Females who cannot afford an upscale salon.

o Women tend to favor a female specific upscale salon if they can afford it. There

is not often a difference in quality of an upscale salon relative to a family hair

salon other than a upscale salon will tend to pamper you more, only accepts

appointments, and the facility is generally a bit plusher. Someone who is fiscally

responsible as opposed to someone who likes opulence will favor a family style

salon.

6.2.3 Young mothers with children.

o Most young children are notoriously difficult when it comes to getting haircuts.

A family style salon is a more laid-back place that allows the children to play

while they are waiting and then will work with the parents in calming the kids

nerves when they are ready for their shearing.

70%

20%

10%

Market Analysis

Males

Females

Mothers with Young Children


6.3 Market Size

Market size is total potential purchase that is expected from the target market.

Estimation of market size required information regarding the particular market the business

intends to enter. The potential purchase includes purchase of the competitor within the same

market.

Bangsar is develop city where there are many infrastructure and services provided to

its surrounding. Bangsar also surrounded with working place, universities, college and

housing area. Besides that, each of the area within Bangsar are provided with public

transportation such as busses, train and taxis. Furthermore, two of the established shopping

complex that is Bangsar Village and Bangsar Shopping Centre are situated in Bangsar. From

the seasonal factor, Bangsar will be crowded with people during seasonal event such as New

Year, Hari Raya, Chinise New Year and other event.

We consider that 30% of population in Bangsar as total buyers that will use hair

services. Usually people like childrens, students, families, business person and others are in

bangsar because of work, school, shopping and spending their time with family. Our business

has identified our target market that is mainly on male and female. Therefore, from the 30%

of the population that use hair services, Arte de Pelo target around 24% from the total people

who use hair services. Thus, other competitors will conquer the balance of the population.


6.4 Competition

At our location, Arte de Pelo has some competitors as same business like us. Arte De

Pelo looks three competitors as the major competitors in salon market which is Hair Concept,

Inspiration Alan Salon and La – Bell Hair and Beauty Salon . We look competitors as an

incentive to improve our company to be good in providing the best services to customer. Arte

de Pelo also takes the competitors as healthy challenge. It just wants to make a variety in

market competitors especially at Jalan Telawi, Bangsar. So, customer can also have many

choices to meet their preferences. At the same time, Arte de Pelo will also provide good and

quality services to meet their expectation and satisfying their wants.

The similarities with the competitors are same which is providing services related to

salon. The difference of our company with the competitors are our company provides sub

services that differentiate our salon from other competitors like offering drinks to customers,

surf internet on laptop while colouring their hair, membership card and private room for

female muslim and artist. Our company also overcomes the competitors by providing hair

cutting services for big event such fashion show and runaway, reality tv show and wedding

ceremony.

6.4.1 Competitors list

Major

Inspiration Alan Salon

20 Jalan Telawi, 59100

Bangsar, Kuala Lumpur.

Strength:

a) The company has established early than Arte de Pelo Salon.

b) Strategic place which is continuous people passes by their salon

c) It is commonly known in east Malaysia.

Weaknesses:

a) All types of services provided are too expensive compared to Arte de Pelo

salon .

b) Newly introduce in peninsular Malaysia.


Minor

La-Bell Hair & Beauty Salon

62 Jalan Telawi, 59100


Strength:

a) The company has established early than Arte de Pelo Salon.

b) Business focus on hair and other services such as pedicure and medicure.

Weaknesses

a) Location is not strategic because is not continous people passes their salon.

b) Services that provided are too expensive

c) Lack of promotion.

Hair Concepts

9a Jalan Telawi 2, 59100


Strength:

a) The company has established early than Arte de Pelo salon.

b) Good promotion deal.

Weaknesses

a) All types of services provided are to expensive compared to Arte de Pelo

salon.

b) Inexperience labour force.


6.5 Market Share

6.5.1 Market Share before

45%

30%

25%

Hair Colouring

Inspiration Alan La Bell Hair Concept

55%25%

20%

Hair Cut



40%

30%

30%

Hair Rebonding


35%

33%

32%

Hair Perm



6.5.2 Market share after the entry of Arte de Pelo.

Based on our study, Arte de Pelo will conquer some of this section from other

competitors by providing 30% in offering hair cut services for the market share. Arte de Pelo

salon provides special services for Muslim women and also artist by preparing a private room

for them. These services are rarely seen in other salon like La - Bell and Hair Concept. They

only give 15% and 12% respectively. Inspiration Alan also gets slightly higher ranking

compare to Arte de Pelo which provides 43%. Generally, people seek for hair salon to cut their

hair in order to make over their appearance through different hair style.

30%

43%

15%

12%

Hair Cut

Arte de Pelo Inspiration Alan La Bell Hair Concept


As the major competitor, Inspiration Alan contributes more on hair colouring services

which carry out 35% of the total percentage. This is because, people are more confident to go

there as their experience in handling their customers. La – Bell contribute to 23% from the

market share since the salon established earlier than Arte de Pelo. Arte de Pelo manage to beat

Hair Concept by 2% and slightly lower than La – Bell by only 1%. In general, both men and

women will use this service in order to change their hairstyle with different colour.

22%

35%

23%

20%

Hair Colour



As we can see every salon that stated above provide hair rebonding services to

customers. We conclude that Inspiration Alan 35%, La - Bell 25%, Arte de Pelo 20% and Hair

concept 20%. The differences percentage of The Arte de Pelo with others is based on

experience and influence of the salon because the other salon on the above are established

earlier than Arte de Pelo. Hair rebonding is services that both men and women use in order to

straighten their hair to meet their demand.

20%

35%25%

20%

Hair Rebonding



Arte de Pelo also offers its customer with hair perm service. So, customer will choose

either one of the salon stated from above in order to perm their hair. The percentages of the

entire salon are slightly different that is Inspiration Alan 28%, La - Bell 25%, Arte De Pelo

24% and Hair Concept 25%. Hair perm service are offered from the entire salon above because

the customers mostly women that want to curl their hair.

24%

28%25%

23%

Hair Perm



6.6 Sales Forecast

Month Haircut (RM) Hair

coloring

(RM)

Hair

rebonding

(RM)

Hair perm

(RM)

Sales

Collection

(RM)

1 6000 4000 5000 5000 20000

2 6500 4625 6500 4875 22500

3 7100 4750 6000 6150 24000

4 6750 5000 6250 5750 23750

5 7000 5250 6500 5250 24000

6 6900 5100 6750 6750 25500

7 7300 5500 7000 6700 26500

8 7600 5900 7500 7750 28750

9 7900 5800 7650 7650 29000

10 8400 6100 8000 8500 31000

11 8500 6200 8350 8500 31550

12 9500 6975 8500 9025 34000

Year 1 (TOTAL) 320550




Sales Forecast Analysis

Hair styling is a major world industry, from the salon itself to products, advertising,

and even magazines on the subject. It is primarily specialize in certain areas of hair care, such

as coloring, up-dos for formal occasions, cutting or styling. Which salon one chooses will

determine the level of expertise being performed for the service. These establishments are

characterized by quality and type of services provided to the customer.

People across Malaysia have used hair salon services when they are in search of

hairstyle that meets their expectation and our services proven to be popular amongst its

receiver. The feedbacks that we got from them were mostly impressed with our services. This

has shown that Arte de Pelo has the calibre to be one of the most successful hair salons in

Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success

provided that it is handled efficiently. People have always needed hair services to bring

benefits to them. Hair will grow day by day. Therefore, people will seek for salon in order to

manage their hair. Arte de Pelo sees this as a way to prosper in this market, by taking

advantage of the people‟s need for hair services.

As for the place information, Bangsar, is an affluent residential suburb on the outskirts

of Kuala Lumpur, lying about 4 kilometres (2.5 mi) south-west of the city centre. It is part of

the Lembah Pantai parliamentary constituency. Bangsar is administered by Dewan Bandaraya

Kuala Lumpur (DBKL) unlike other townships in the Klang Valley such as Petaling

Jaya and Subang Jaya which have their own municipal councils. Neighbourhood residents'

associations and business councils play a part in communicating with the local authority but

they exercise no legal or administrative power.

As geographic description, Bangsar situated At 3°7′51″N 101°40′10″E Coordinates:

3°7′51″N 101°40′10″E, Bangsar lies respectively to the north and south of the neighbouring

areas of Pantai Dalam and Damansara, and 4 kilometres (2.5 mi) south-west of Kuala

Lumpur city centre.


Bangsar is bounded by Jalan Bangsar and Jalan Pantai Baharu to the south, Universiti

Malaya to the west, Jalan Damansara (Sprint Expressway and Bukit Damansara) to the north

and Bukit Persekutuan to the east. It has the following neighbourhoods or housing estates:

Bangsar Utama, Bukit Bangsar, Bangsar Park Bukit Bandaraya, Taman SA, Bangsar Baru,

Lucky Garden, Pantai Hills, and the areas off Jalan Bangsar. Jalan Maarof is Bangsar's main

thoroughfare, dividing Bangsar into two main areas: east and west. On the east side lies

Taman SA, Bangsar Park, Bukit Bangsar, Bangsar Utama and one-half of Bukit Bandaraya.

The remainder of the other neighbourhoods lies on the west.

Bangsar is rather flat at the southern neighbourhoods of Bangsar Utama, Bangsar Park

and the Off Jalan Bangsar area. This makes Jalan Bangsar in the south prone

to flooding during heavy downpours. The terrain progressively rises towards the north up

Bangsar Baru, before making a steep drop in elevation after Bukit Bandaraya.

As for demographic description, its earliest settlers were railway workers living next

to the KL-Klang railway track and rubber estate workers. Starting with a community of

mostly Indian civil servants, comprising teachers, firemen, telecommunications officers and

the police, Bangsar grew to include young professionals of various races

including Malays, Chinese, Indian and expatriates, bringing its population to some 40,000

people by 2005.

Bangsar has grown rapidly in recent years, but has paid a price in terms of traffic jams

and a shortage of parking places. Developments in neighbouring Bukit Damansara and Mid

Valley Megamall have caused increased traffic to pass through Bangsar, especially along

Jalan Maarof.

New shops and attractions are sprouting up in Bangsar, but many do not survive long,

especially food and entertainment outlets. Other long-standing outlets have been very

successful, opening up a second branch in Bangsar itself. Examples are Alexis and La

Bodega, Coffee Bean, and McDonald's which can be found on Jalan Telawi, also Bangsar

Shopping Centre and Bangsar Village.


For the first month and second month of the business, our company gain RM20000

and RM 22500 of the sales collection from our four services line which are hair cut, hair

colour, hair rebonding and hair perm. Even though the sales are a bit low, but we are satisfied

with it and keep trying to increase the sales collection. We are doing sales promotion during

the grand opening of our salon which is located at Bangsar for 1week to promote our hair

salon to the public. We will give free hair cut for first 15 person who enter our salon and also

15% discount for other services provided by our salon. Many customers satisfied with it. This

is important for us to attract as many as possible customers thus to gain their loyalty to

become our loyal customers.

The third month shows an increasing amount that is RM 24 000. The service which

getting the highest sales collection is main service that is hair cut. The prices of the services

are also affordable for our customers to purchase it without taking more time to think either

to buy or not. These are one of the advantages that the customers cannot get from the other

hair salon. But fourth month sales are slightly decreasing compared to the third month that is

RM 23750. Although the sales are slightly decrease, Arte de Pelo still can run the business

without any problem and try to be more productive in the future.

For the fifth month onwards till the twelfth month, the sales are keep on increasing

from RM 24 000 to RM 34 000. This is because Arte de Pelo already gain the customers trust

by providing best services to them. By giving reasonable price, good service and additional

sub service that boost the quality of the salon, it gives impact to the customers‟ perception

towards Arte de Pelo. Therefore, customers are satisfied and become a loyal customer to our

salon. Thus, this shows that Arte de Pelo is gaining its experience to be better in the future.

As for the next two years, Arte de Pelo estimate that the sales of the salon on the

second year will be increase to 13% from the first year that is RM 364 060 and for the third

year, the salon sales will be budgeted to increase by 13% from the second year that is

RM 441,700. By the sales forecast analysis, it shows that Arte de Pelo is evolving into an

established salon and well known in Bangsar. By the effort of the management of Arte de

Pelo, the salon itself has proven to become one of the most outstanding salons in Bangsar

Area.


6.7 Marketing Strategies

Marketing strategy is one of the important elements to market the organization services.

The organization must use many strategies to promote our services to the customer. To Arte

de Pelo the marketing strategy is our strength to provide our services to the customer to make

them always remembers and we also provide the best services that is at the utmost quality,

where nobody would find any services better than our salon. The marketing strategies that we

use in term to our services to market level are:

6.7.1 Quality

Arte de Pelo salon only offer good quality of services, so that we can get many

customers since the customers always seek for the best quality provided to the

customers. Quality plays a main role in marketing strategies. The main thing that

always we think before offering our services to the customer is the quality. From the

quality we can know that our customer will satisfied with our services. When they are

satisfied of the quality of the services, they will come again to us and yet, we can get

the regular customer to our salon. To offer the best quality services to our customers,

we provide various level of hair cutter with different skills and talent in order to meet

the customer expectation and choose the quality products to be use which will satisfy

our customers wants. To boost up the quality on our services, we are using

SCHWARZKOPF as our main product to comply with our services. This brand has

been established all around the world. Therefore, this will enhance the influence of

the customers to attract them from the quality perspective.

6.7.2 Pricing

Although Arte de Pelo Sdn Bhd services are high-end and stylish in terms of

quality of the workers and quality product that we had been used, our pricing structure

remains affordable and in-line with other hair salon. Our pricing structure is also

based on the type of services provided to the customers. For hair cut, we provide from

junior to professional that each level of the hair cutter have different price for each

services that meet the customers budget and demand. As for the hair rebonding, hair

perm and hair colour, we will provide budgeted price that will attract customers.

Thus, our salon gives the reasonable price to our services compare to the other salon.

The prices of our services are more affordable. Our pricing structures are based on the

survey that had been done plus the count of all cost that include from the supplier to


us. Our pricing structure is also based on the value the customers place on these

services. To attract more people to be our customers, we set the affordable price. Only

when the quantity and the quality of product are satisfied, then the payment will be

made.

6.7.3 Sub services

There are some of sub services that have been provided by Arte de Pelo in

order to create extra ordinary position to be compared from other salon. Unlike other

salon that only provided magazine for those who are waiting for their turn or friends

who accompany them, we provide them with internet wifi and also television to

prevent them to be bored or stress while waiting. Furthermore, we will offer the

customers with drinks before they cut their hair. We also give laptop services for

those who colour or rebonding their hair because it takes time a long hours to be

finish so they can online or do something with the laptop while waiting for their hair

to be complete. Furthermore, we provide a private room for the purpose of offering

services to the muslims women and artists who need privacy. With this method, we

completely sure that we will attract a lot of customers because of our extra services

that made exclusively to meet customers wants.

6.7.4 Place

Arte de Pelo is allocated at 15, Jalan Telawi 4, Bangsar. This building has

already completed with basic amenities such as water and electricity. Bangsar is a

strategic place to open up our business because it is located in middle of a city where

surrounded with elite community and foreigners. Besides that, many customers from

many other areas will come to Bangsar such as from Damansara, Shah Alam, Subang

Jaya, Petaling Jaya and other area in Kuala Lumpur because of the strategic location.

Therefore, it is suitable to open Arte de Pelo since the surrounding is good for our

salon development.


6.7.5 Promotions

We start our marketing plan during the launching day by giving free hair cut for the

first 15 person who enter the salon. Besides that, we also provide discounts for every service

on the same day. Customers who come during the launching day will be given our pamphlets.

By giving pamphlets, customer will be expose about the background of salon and at the same

time will recognize our services. As for the free hair cut, it is to attract customer first

attention so that they will come again. Therefore, our goals to introduce our services to public

and maintain customer loyalty will be achieve.

Membership cards are the best alternatives to maintain customer loyalty and one of

the ways to businessperson to shows their appreciation to customer. Most of the hair salon

will use membership card as marketing plan. We also use the same ways but in different

concepts. We will provide 4 types of card that is green, yellow, blue and red. Each of the

cards will be filling with 10 boxes. If all the boxes are full, the user of the card will be given

free services. As for the green, yellow, blue and red we will give a free hair cut, hair colour,

hair rebonding and hair perm respectively.

Promotion of Arte de Pelo also can be done either by promoting through media or

non-media channel. To our company it is more efficient to promote our services to the public

by promoting through the non-media channel which is Business Card, Bunting, Flyers, Word-

of-Mouth, and Advertising Literature. From the media channel, we can use blog and

Facebook to support public with our salon information. This will make them easier to reach

our area of promotion and maintain our relationship with customers only by internet services.

We choose to use the high cost on advertising because it is an introduction of the business to

the public. As for the introduction, we must expose our business in the early stage in order to

influence customers as much as we could. Thus, with high promotion in the early stage of

business, Arte de Pelo will incurred high cost but will cover the expenses in future as soon as

possible with the effort done by heavy promotion that leads to increase of sales.

The important method in term to promote our company disseminates our business

card to the customer because this is an easy way for them to know our salon. In the business

card stated the name of our salon, telephone number, address and any details of our salon can

get it from the business card. So customer can easily contact, ask or deal with our salon.


Besides that, we use bunting to promote our salon. To make people aware to the

bunting, we use the attractive colour and writing. We also locate our bunting at the strategic

places so that people can see the bunting clearly without any obstacles. We locate our bunting

near to the main road and strategic location that people passes around. This will help our

customers to locate our shop.

Moreover, we also use Word-of-Mouth, and Advertising Literature. Word-of-Mouth

is a networking through friends, family, and business associates which is an inexpensive and

effective marketing tool which Arte de Pelo utilizes to broaden our clientele base.

Furthermore, we also will distribute our literature to various local community businesses and

establishments such as restaurants, coffee shops, book stores, and universities.

During seasonal time such as Chinese New Year, Hari Raya, Christmas, Deepavali,

New Year we also provides promotion for customer. We will provide discounts for every

services that we had offer to the customers. This is because during seasonal period, people

will seek for hair salon as they want their hair to be proper and meet their physical

appearance. Therefore, we provide discount to influence them to come to our salon.

Therefore, high sales can be achieved with no doubt.


6.7.5.1 Business Cards.


6.7.5.2 Bunting


6.7.5.3 Flyers


6.7.5.4 Brochures


6.7.5.5 Membership cards


6.8 Marketing Budget

Item Fixed Asset Monthly Expenses Other Expenses

Signboard 4,000

Salaries + EPF + SOCSO 2,290

Advertising 200

Grand opening 5,000

Bunting 500

Flyers 300

Business cards 200

Total 4,000 2,490 6,000


7.0 Operations Plan

7.1 Service Planning

Flow chart of process of service

Invite the client to waiting room to discuss.

Greet the customer.

Get the information from the client

Brief the client about the conditions and consult whether is it suitable

for them or not on the services they want and get the agreement from

them.

Assist the client to the hair dressing room. Please them with offering

drinks, magazines, or online.

Work on the style of the hair or the services that the client wants.

Show them the results.

Get the feedback from client.

Make the amendment accordingly.


7.2 Operations Layout.

BUILDING SIZE

40‟ft length X 60‟ft width

12‟ft height

60’ ft

40’ ft


7.3 Service Planning

Our service plan starts with greeting the customer that comes, walk in to the shop.

This is because when we greet the customers, they will feel comfort and appreciated and

make them want to come more to the shop.

After they walk in, we will invite the customers to the waiting room, so it will be

easier to discuss what services they want in comfortable place.

We will obtain information from the client, about what hair style they want to do, or

any other services that they want. We will consult and advice the client whether the hair style

is suitable for them and the condition of their hair if they want to do any other services like

colouring, perm, rebonding or so on.

After the discussion, we will get the agreement from the client on the final decision of

what services they want. Then we will assist them to the hair dressing room. We will offer

the sub service to customers any drinks, magazines to read or maybe if they want to online

and we can give them laptop and the sub services is for free. That is for entertain the client so

that they will not get bored while waiting for the services to be done.

Next step would be, transferring the idea, the requested hair style or other services

that has been discussed earlier into work. We will work it on with due care and professional

so that the outcome will satisfy the customers.

When the work has finished, we will show the result to the client. We will touch up

the part that is not right or if the customers requested to add some services or to re-style their

hair into another. For example the length for hair that has been cut is not short enough, so we

will cut the hair shorter a bit, or to re-style the hair, maybe into Mohawk hair style for men

instead of spiky hair style.

After sales, feedback will be obtained from the customer. That‟s state in our company

policy to provide outstanding after sale services. Then we will improve our service based on

that comments and feedback.


7.4 Material Planning

When we started our business, we budget the materials cost would be RM40, 000 for

all products. So we ordered the products within the amount that we estimated and we

managed to get low prices for the products from Schwarzkopf and Schwarzkopf is our main

dealer for our hair products.

From the products that we ordered when we start our business within RM40, 000 cost

budgets, for 1st to 2

nd month, the quantity of the products is still enough to cover our

operation cycle since we just open our salon, so the usage is still little. So we did not order

the products to add up into our store. Plus, Schwarzkopf products are a very good quality

products and it can be use for a long time period.

For 3rd

months and following months, we will start to order and replace the products

by monthly order. We set up the budget cost will be RM3, 000 per month for all products.

We have estimated our order to be in some quantity for the products per month and it is fixed.

We will replace the products based on the fixed quantity so that it will be easier for us to

order and our store will not have lack of products to be use to customers.


7.4.1 Materials

HENKEL (MALAYSIA) SDN BHD

SCHWARZKOPF PROFESIONAL DIVISION

EFFECTIVE DATE : SEPTEMBER 2009

DEPARTMENT : MARKETING

SALON PRICE LIST – MALAYSIA

IDH

NUMBER DESCRIPTION SIZE PRICE

BC REPAIR RESCUE

1299281 BC Bonacure Repair Rescue Shampoo 1250 ml RM161

250 ml RM53

1260417 BC Bonacure Repair Rescue Conditioner 1000 ml RM142

1259395 BC Bonacure Repair Rescue Treatment 200 ml RM79

1259274 BC Bonacure Repair Sealed Ends 250 ml RM64

BC COLOUR SAVE

1259319 BC Bonacure Colour Save Shampoo 250 ml RM64

1259396 BC Bonacure Colour Save Conditioner 1000 ml RM161

200 ml RM68

1259252 BC Bonacure Colour Save Spray Conditioner 200 ml RM68

1259402 BC Bonacure Colour Save Treatment 750 ml RM194

1259575 BC Bonacure Colour Save Colored Ends 75 ml RM46

BC MOISTURE KICK

1259641 BC Bonacure Moisture Kick Shampoo 1250 ml RM161

250 ml RM53

1255373 BC Bonacure Moisture Kick Spray Conditioner 200 ml RM57

400 ml RM98

1266994 BC Bonacure Moisture Kick Treatment 150 ml RM34

BC HAIR & SCALP EXPERT

1259257

BC Hair & Scalp Deep Cleansing Shampoo ( For Oily

Scalps ) 1250 ml RM161

1258007

BC Hair & Scalp Hair Growth Shampoo (For

Thinning Hair) 250 ml RM53

1259264 BC Dandruff Control Shampoo 250 ml RM53

1259268 BC Hair & Scalp Control Fluid 100 ml RM64

1259407 BC Hair Growth Serum 100 ml RM368

14 x 2 ml RM283

1259270 BC Hair & Scalp Deep Cleansing Pre-Shampoo 200 ml RM98

BC OSIS

1259406 Osis Magic Anti-Frizz Gloss Serum 50 ml RM79


1259870 Osis Upload Volume Creme 200 ml RM68

1259877 Osis Thrill Fiber Gum 100 ml RM79

1259254 Osis Buff Styling Cream 150 ml RM68

1259340 Osis Rough Up Modeling Clay 75 ml RM79

BC ALOE ESSENCE SENSITIVE SOOTHE

1257888

BC Aloe Essence Sensitive Soothe Calming Scalp

Serum 8 x 7 ml RM135

1267170 BC Aloe Essence Sensitive Soothe Conditioner 1000 ml RM161

200 ml RM68

1259394 BC Aloe Essence Sensitive Soothe Shampoo 1250 ml RM183

250 ml RM64

1259318 BC Aloe Essence Sensitive Soothe Treatment 750 ml RM194

BC TIME RESTORE

1259243 BC Time Restore Q10 Treatment 200 ml RM94

750 ml RM238

1258278 BC Time Restore Q10 Shampoo 250 ml RM72

1259218 BC Time Restore Q10 Conditioner 200 ml RM83

1259745 BC Time Restore Scalp Balm 8 x 7 ml RM135


7.4.2 Catalog

BC Bonacure Repair Rescue

Shampoo


Conditioner


Treatment

BC Bonacure Repair Sealed

Ends

BC Bonacure Color Save

Shampoo

Bonacure Color Save

Conditioner


Spray Conditioner


Treatment


Colored Ends

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BC Bonacure Moisture Kick

Shampoo


Spray Conditioner


Treatment

BC Hair & Scalp Deep

Cleansing Shampoo (For Oily

Scalps)

Osis Magic Anti-Frizz Gloss

Serum

Osis Upload Volume Crème

Osis Thrill Fiber Gum

Osis Buff Styling Cream

Osis Rough Up Modeling

Clay

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BC Time Restore Q10

Shampoo

BC Time Restore Q10

Conditioner

BC Time Restore Q10

Treatment

BC Time Restore Scalp Balm

BC Dandruff Control

Shampoo

BC Hair & Scalp Hair

Growth Shampoo (For

Thinning Hair)

BC Dandruff Control

Shampoo

BC Hair & Scalp Control

Fluid

BC Hair & Scalp Deep

Cleansing Pre-Shampoo

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7.4.3 Types of Colours


7.5 Machines and Equipment planning

No Machine Quantity Price/Unit

(RM)

Total Price

(RM)

1. Cash Register Machine 1 755 755

2. Reception table 1 450 450

3. Styling Station 8 50 400

4. Styling Chair 10 250 2500

5. Shampoo chairs & bowl 2 100 200

6. Stool 6 150 900

7. Heater 1 3000 3000

8. Micromist 1 4000 4000

9. Hair Iron 3 250 750

10. Hair dryer 6 250 1500

11. Air Condition 2 1500 3000

12. Hair Steaming Machine 1 700 700

13. Digital Perm Machine 1 2000 2000

14. Water hair Spray 8 15 120

15. Hair comb (per set) 8 500 4000

16. Television Set 1 1899 1899

17. Sofa set 1 800 800

18. Water Dispenser 1 450 450

19. Glass & Cup (per set) 1 30 30

20. Retail display Shelf 1 200 200

21. Magazine Rack 1 300 300

22. 3 Level Supply Trolley 3 189 567

23. Curtain Privacy Screen 1 119 119

24. Aprons 8 30 240

TOTAL 28880


7.6 Manpower Planning

We discussed that the worker is from our partner, some of them and outsiders. This is

because we manage small salon and some of our partner are qualified to work as a cutter and

for the rest we hired from outsiders. For those who are working, the duties are only cashier,

receptionist and senior/professional cutter.

Nadia as Human Resource manager was set the duties for the workers including some

of our partner. Azfar and Fatin will be the professional cutters and Nadia will be the

receptionist and cashier as she will always be around at the shop. We hired 5 workers from

outside, which are two junior cutters, two is professional and another worker will work as

fortune-wash hair and craftsman hair color. Means the two professional cutters is permanent

workers and another three workers is part time workers.

Syapiq or Aizat will replace the position for Nadia if she in break time or she cannot

attend to work. Nadia will make sure that all the workers come to work on time and rotating

queue for their break time. We will tell the customers to make appointment so that it will be

easier for the workers to scheduling their work. They can just walk in but only the workers

who available for that time can cut hairs and so on. So it is better for the customers to make

an appointment and choose their favourite cutters. Their break times are not fixed as the time

for cutting hair and doing the stylish are within unpredictable length of time. So, when there

are no customers, they can go for their break for 2 hours.

Day On Duties Off Duties

Monday Azfar, Nadia, Aizat, Syapiq,

one permanent, two part time

workers.

Fatin, one permanent and

part time worker.

Tuesday Fatin, Nadia, Aizat, Syapiq,

one permanent and three part

time workers.

Azfar and one permanent

Wednesday Fatin, Azfar, Syapiq, Aizat,

two permanent and two part

time workers.

Nadia and one part time

worker.


Thursday Fatin, Azfar, Aizat, Nadia,

two permanent and part time

workers.

Syapiq and one part time

worker.

Friday Everyone except Aizat Aizat

Saturday ALL -

Sunday ALL -

7.7 Overhead Requirement

Overhead requirement that Arte de Pelo needs is electricity, waters, telephones and

WIFI. Electricity is very important to the operation of Arte de Pelo because it will be

operated from 10 a.m. until 10 p.m. That‟s why cost of electricity is very high for every

month. . It will be the same as water expenses as water is important elements in cutting and

stylising hair. So, it is important to the managers to calculate the estimate amount of all the

overhead incurred.

For wifi, the cost is fixed per month. For telephone bills, we already limit RM200 per

month because usually the customer will call us for appointment.


7.8 Location

Arte de Pelo

15, Jalan Telawi 4,

Bangsar,

59100 Kuala Lumpur,


We are

here!!


7.9 Business and Operations Hours

Arte de Pelo Hair Salon will open every day, but the time is varying for weekday and

weekend. The business is open from 10am to 10pm from Monday to Friday. For Saturday,

the business is open from 11am to 10pm meanwhile for Sunday; it is open from 11am to

9pm. Public holidays are holidays for worker including their off days per week. We provide

2 hours rest. The rest hour is not straight 2 hours. We give 1 hour for first rest and 1 hour for

another rest. On Friday, the male worker will be given 1 hour and half break at 1pm until

2.30pm, so that they can perform their Jumaat prayer. Means, they will have another 30

minutes break left. For Saturday and Sunday, there will be no staff takes their day off due to

many customers.

Day Hour

Monday to Friday 10am – 10pm

Saturday 11am – 10pm

Sunday 11am – 9pm


7.10 License, Permits and Regulations Required

Arte de Pelo has to get licenses from the related bodies and authority in order to run the

business smoothly. The licenses that are required are:

1. Premise and sign board license from DBKL

(Form DBKL-JPL-KP-01-A1)

2. License for outdoor advertising from DBKL

(Form DBKL-JPL-KP-01-B1)

3. Music Authors Copyright Protection License (MACP)

4. License for Performers and Artiste Rights (PRISM)


7.11 Operations Budget

Item Fixed Asset

(RM)

Monthly

Expenses

(RM)

Other Expenses

(RM)

Machine and Equipment 28880

Salaries, EFP & SOCSO 12138

Salon Product 40000

TOTAL 28880 12138 40000


7.12 Project Implementation Schedule

Activities Deadlines Durations

Incorporation of business March - May 2009 3 months

Application for permits and

license

March - May 2009 3 months

Searching for business

premise

June - July 2009 2 months

Renovation of premise August 2009 3 weeks

Setting Fixtures and fittings August 2009 5 days

Procurement of stocks and

materials

September 2009 1 month

Searching for workers October - November 2009 1 months

Final Checklist December 2009 1 day

Grand Opening January 2010 -


8.0 Organizational plan.

8.1 Mission and Vision

Arte de Pelo 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.

Arte de Pelo vision is to create a harmonious, productive, profitable salon environment, and also

supplying the community with a retail centre.

Motto

“We strive to make you look best” “We strive to make you look best.” This motto represents the determination of our company

to provide the best hair cut with a touch of art to our precious customer. It also magnifies the

need of our company to give people the best services that we can offer. With the best

services, it will guarantee our customer satisfaction. Beauty comes from within, but a good

haircut definitely helps.


8.2 Organization chart

Structure Based on Functions

Structure based on functions is a line organizational structure based on functions is suitable

for business organizations that emphasize functional specialties to perform tasks. Activities

may be divided into marketing, public relation, human resource, administration and finance.

Chief Executive Officer

Mr Mohd Syapiq

Financial Manager

Mr Mohd Aizat

Marketing Manager

Mr Mohd Azfar

Public Relation Manager

Ms Nur Fatin

Human Resouce Manager

Ms Nur Nadiati


8.3 Manpower planning

8.3.1 Schedule of tasks and responsibilities

Position Tasks and responsibilities

1. Chief

executive

officer

1. Responsible in managing the company towards the vision,

mission, and the objectives of the company

2. Act as a decision maker and cooperate in gaining ideas to

improve the business

3. Identify and plan the business objective, highlight the

regulations and business procedures in order to achieve the

objective.

4. Monitor the activities to ensure that all are being

accomplished as plan

5. Always alert to organization and business operation

6. Oversee the operations of the retail area. This includes

inventory, stocking, and displays.

7. Handle payroll operations.

8. Participate with interviewing.

9. Develop color specialization.

10. To ensure office equipment is available and in good

condition

2. Financial

manager

1. Responsible of the cash flow and budgeting plan of the

business

2. Analyzing, controlling, and record the money cash flow of

the business

3. Preparing annual account and advisor in financial aspects

4. Preparing salary slips, business receipt, and paid salary

5. Using efficient and effective ways to increase sales and profit

to make sure good development of business

3. Marketing

manager

1. Marketing planner.

2. Develop Arte de Pelo newsletter.

3. Develop artedepelo.com web page

4. Responsible to set the 4P‟s

5. Find the strategic place

6. Find the target market

7. Decide the product to sell

8. Set the promotion of the product

4. Public

relation /

Operational

manager

1. Making sure that clients are getting the best customer

service.

2. Ensure all staff is supplied with business cards.

3. Handle customer complaints and suggestions in a pleasant,

efficient, and professional manner.

4. Operation manager basically concerned with the production

of goods and services.

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5. Operation manager also have responsibility of ensuring that

business operations are efficient in terms of using as little

resource as needed, and effective in terms of meeting

customer requirements.

6. It is concerned with managing the process that converts

inputs (in the forms of materials, labour and energy) into

outputs (in the form of goods and services).

5. Human

Resource

manager

1. Active involvement in recruiting and interviewing potential

staff.

2. Orientation of new staff, job description, policy, and

procedures of Arte de Pelo Salon.

3. Forecast the next turnover of the company

4. Do the job analysis

6. Receptionist 1. Give good customer service by greet all clients and

customers with a smile. Offer a beverage, reading material,

and take their coat. Direct them to a dressing area if

appropriate.

2. All new clients are given a menu and tour of the facilities.

3. Handle all phone calls politely and professionally.

4. Booking and confirming appointments.

5. Communicate product knowledge to clients with confidence.

Have knowledge of all services offered and their prices.

6. Check in clients.

7. Responsible for handling all financial transactions of clients.

8. It is the receptionist's duty to close out the POS terminal and

credit card terminal at the end of the day or shift.

9. Maintenance of the reception area, waiting area, and display

units are also responsibilities.

10. Inform technicians when their clients have arrived or

cancelled.

7. Hair

cutter/hair

stylist and

other

employees

1. Focusing on clients' needs .

2. Be involved within the community.

3. Communicate product knowledge and service knowledge to

the clients you service.

4. Incorporate stress-relieving treatments and finishing touches

with each client.

5. Encourage and educate clients on new trends focusing on the

total look.

6. Encourage client referrals.

7. Identify professional goals annually.

8. Participate with daily cleaning.

9. Enhance the image of the industry maintaining a professional

relationship with the clientele.

10. Actively participate with the team.

http://en.wikipedia.org/wiki/Business_operations

http://en.wikipedia.org/wiki/Efficient

http://en.wikipedia.org/wiki/Effective


8.3.2 Schedule of remuneration.

Monthly based remuneration.

No. Position Monthly

Salary

(RM)

EPF, 12%

(RM)

SOCSO,

2.5% (RM)

Total

Amount

(RM)

1. CEO 2500 300 63 2863

2. Financial Manager 2000 240 50 2290

3. Marketing Manager/

senior hair stylist

2000 240 50 2290

4. Public Relation Manager/

senior hairstylist

2000 240 50 2290

5. Human Resource

Manager/receptionist

2000 240 50 2290

6. Full time hair stylist 1500 180 38 1718

7. Full time hair stylist 1500 180 38 1718

8. Part time hair stylist 1200 144 30 1374



TOTAL 17100 2052 429 19581


Yearly based remuneration.

Year 1 Year 2 Year 3

Chief executive officer RM 30,000 RM 36,000 RM 36,000

Financial manager RM24,000 RM 30,000 RM 30,000

Marketing manager RM 24,000 RM 30,000 RM 30,000

Public relation manager RM 24,000 RM 30,000 RM 30,000

Human resource manager RM 24,000 RM 30,000 RM 30,000

Full-time hair stylist RM 18,000 RM 20,400 RM 20,400

Full time hair stylist RM 18,000 RM 20,400 RM 20,400

Part time hair stylist RM14,400 RM 16,800 RM 16,800



Total Payroll RM 205,200 RM 247,200 RM 247,200


8.4 List of Office Equipment

Office furniture &fittings

No Items description Quantity Price per

quantity

Total price

1 Desktop computer 1 RM 2500 RM 2500

2 Printers 1 RM 200 RM 200

3 Fax and telephone 1 RM 380 RM 380

4 Chair 3 RM 65 RM 195

5 Locker 3 RM 130 RM 390

6 Table 1 RM 250 RM 250

7 Multi purpose rack 1 RM 200 RM 200

8 Cabinet 1 RM 350 RM 350

9 Air conditioner 1 RM 1500 RM 1500

TOTAL RM 5965

List of Stationeries

No Items description quantity Price per

quantity

Total price

1 Account book 3 RM 3 RM 9

2 Address book 1 RM 2.50 RM 2.50

3 Book keeping(hard cover) 3 RM 5 RM 15

4 Cash bill book 3 RM 5 RM 15

5 Cheque record book 3 RM 3.50 RM 10.50

6 Note book 7 RM 2.50 RM 17.50

7 Soft exercise book 7 RM 1.50 RM 10.50

8 Casio desktop calculator 2 RM 8.00 RM 16

9 CD-R/CD-RW 1 sets RM 10 RM 10

10 DVD-R/DVD-RW 1 sets RM 15 RM 15

11 Envelope 2 sets RM 2 RM 4

12 Box file/document case 2 RM 6 RM 12

13 Clip board file 4 RM 4 RM 16

14 Expanding file 3 RM 8 RM 24

15 Magazine holder 5 RM 5 RM 25

16 Ring file 2 RM 6 RM 12

17 Examination pad 3 RM 4.50 RM 13.50

18 Voucher pad 5 RM 3 RM 15

19 A4 paper 2 RM 8.90 RM 17.80

20 Color simili paper 5 RM 9.90 RM 49.50

21 Computer form 5 RM 6.90 RM 34.50

22 Fancy card 5 RM 7.50 RM 37.50

23 Fax paper 5 RM 8 RM 40

24 Inkjet & glossy paper 3 set RM 15 RM 45

25 Battery 5 RM 7.50 RM 37.50


26 Clips 3 boxes RM 3.50 RM 10.50

27 Date chop 3 RM 7.50 RM 22.50

28 Document tray 3 RM 10 RM 30

29 Eraser 8 RM 0.20 RM 1.60

30 Glue & gum 8 RM 0.50 RM 4

31 Pin 3 RM 1.50 RM 4.50

32 Puncher 3 RM 4.00 RM 12

33 Ruler 5 RM 0.60 RM 3

34 Scissors 6 RM 1.20 RM 7.20

35 Stamp pad 5 RM 5.00 RM 25

36 Stapler 5 RM 4.50 RM 22.50

37 Canon ink cartridge 4 RM 21.00 RM 84

38 Notice board 2 RM 50 RM 100

39 Ball pen 2 dozens RM 4 RM 8

40 Correction pen 5 RM 5 RM 25

41 Highlighter marker 3 RM 5 RM 15

42 Permanent marker 1 dozens RM 12.00 RM 12.00

43 Mechanical pencil 5 RM 3 RM 15

TOTAL RM 906


8.5 Organizational/administration budget

Administration Budget

Items Fixed Asset

(RM)

Monthly

Expenses

(RM)

Other

Expenses

(RM)

Furniture & Fittings 5965

Renovation 20000

Salary (EPF & SOCSO) 5153

Rent 4000

Utilities 900

Office Supplies 906

Business Registration 2000

Deposit (Rent) 8000

Professional Fees 1000

Total 25965 10959 11000


9.0 Financial plan

9.1 Project implementation cost

Arte de Pelo Enterprise

PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE

Project Implementation Cost Sources of Finance

Requirements Cost Loan Hire-Purchase Own Contribution

Fixed Assets Cash Existing F. Assets

Land & Building

Office furniture & fittings 5,965 5,965

Renovation 20,000 20,000

Signboard 4,000 4,000

Machineries 28,880 28,880

Working Capital 1 months

Administrative 10,959 10,959

Marketing 2,490 2,490

Operations 12,138 9,273 2,865

Pre-Operations & Other Expenditure 57,000 21,200 35,800

Contingencies 5% 7,072 7,072

TOTAL 148,503 48,503 100,000


9.2 Sources of financing

Sources of Finance

Requirements Loan Hire-Purchase Own Contribution

Fixed Assets Cash Existing F. Assets

Land & Building

Office furniture & fittings 5,965

Renovation 20,000

Signboard 4,000

Machineries 28,880

Working Capital

Administrative 10,959

Marketing 2,490

Operations 9,273 2,865

Pre-Operations & Other Expenditure 21,200 35,800

Contingencies 7,072

TOTAL 48,503 100,000


9.3 Pro forma cash flow statement


PRO FORMA CASH FLOW STATEMENT

MONTH Pre-Operations 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL YR 1 YEAR 2 YEAR 3

CASH INFLOW

Capital (Cash) 100,000

100,000

Loan 48,503

48,503

Cash Sales

20,000 22,500 24,000 23,750 24,000 25,500 26,500 28,750 29,000 31,000 31,550 34,000 320,550 384,060 441,700

Collection of Accounts Receivable

TOTAL CASH INFLOW 148,503 20,000 22,500 24,000 23,750 24,000 25,500 26,500 28,750 29,000 31,000 31,550 34,000 469,053 384,060 441,700

CASH OUTFLOW

Administrative Expenditure

Office supplies

906 906 906 906 906 906 906 906 906 906 906 906 10,872 10,872 10,872

Rent

4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 48,000 48,000

Utilities

900 900 900 900 900 900 900 900 900 900 900 900 10,800 10,800 10,800

Salary, EPF & Socso

5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 5,153 61,830 61,830 61,830

Marketing Expenditure

Salary, EPF & Socso

2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 27,480 27,480 27,480

Advertising

200 200 200 200 200 200 200 200 200 200 200 200 2,400 2,400 2,400


Operations Expenditure

Cash Purchase

1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 12,000 12,800 13,600

Payment of Account Payable

1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 16,200 18,000 19,200

Carriage Inward & Duty

Salaries, EPF & SOCSO

12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 12,138 145,656 145,656 145,656

Other Expenditure

Pre-Operations

Deposit (rent, utilities, etc.)

Business Registration & Licences 1,500

1,500

Insurance & Road Tax for Motor Vehicle

Other Pre-Operations Expenditure 55,500

55,500

Fixed Assets

Purchase of Fixed Assets - Land & Building

Purchase of Fixed Assets - Others 58,845

58,845

Hire-Purchase Down Payment

Hire-Purchase Repayment:

Principal

Interest

Loan Repayment:

Principal

404 404 404 404 404 404 404 404 404 404 404 404 4,850 4,850 4,850

Interest

202 202 202 202 202 202 202 202 202 202 202 202 2,425 2,183 1,940

Tax Payable

0 0 0 0

TOTAL CASH OUTFLOW 115,845 26,193 26,193 27,393 29,193 29,193 29,193 29,193 29,193 29,193 29,193 29,193 29,193 458,358 344,871 346,628

CASH SURPLUS (DEFICIT) 32,658 (6,193) (3,693) (3,393) (5,443) (5,193) (3,693) (2,693) (443) (193) 1,807 2,357 4,807 10,695 39,189 95,072

BEGINNING CASH BALANCE 32,658 26,465 22,772 19,380 13,937 8,744 5,051 2,359 1,916 1,723 3,530 5,887 10,695 49,884

ENDING CASH BALANCE 32,658 26,465 22,772 19,380 13,937 8,744 5,051 2,359 1,916 1,723 3,530 5,887 10,695 10,695 49,884 144,955


9.4 Pro forma income statement


PRO-FORMA INCOME STATEMENT


Sales 320,550 384,060 441,700

Less: Cost of Sales

Opening stock 9,000 8,600

Purchases

30,000 32,000 34,000

Less: Ending Stock 9,000 8,600 8,000

Carriage Inward & Duty

21,000 32,400 34,600

Gross Profit 299,550 351,660 407,100

Less: Enpenditure

Administrative Expenditure 131,502 131,502 131,502

Marketing Expenditure 29,880 29,880 29,880

Other Expenditure

Business Registration & Licences

1,500


Other Pre-Operations Expenditure

55,500

Interest on Hire-Purchase

Interest on Loan 2,425 2,183 1,940

Depreciation of Fixed Assets 11,769 11,769 11,769

Operations Expenditure 145,656 145,656 145,656

Total Expenditure 378,232 320,990 320,747

Net Profit Before Tax (78,682) 30,670 86,353

Tax 0 0 0

Net Profit After Tax (78,682) 30,670 86,353

Accumulated Net Profit (78,682) (48,012) 38,341

9.5 Pro forma balance sheet


PRO-FORMA BALANCE SHEET


ASSETS

Non-Current Assets (Book Value)

Land & Building

Office furniture & fittings 4,772 3,579 2,386

Renovation 16,000 12,000 8,000

Signboard 3,200 2,400 1,600

Machineries 23,104 17,328 11,552

Other Assets

Deposit

47,076 35,307 23,538

Current Assets

Stock of Raw Materials 0 0 0

Stock of Finished Goods 9,000 8,600 8,000

Accounts Receivable

Cash Balance 10,695 49,884 144,955

19,695 58,484 152,955

TOTAL ASSETS 66,771 93,791 176,493

Owners' Equity

Capital

100,000 100,000 100,000

Accumulated Profit

(78,682) (48,012) 38,341

21,318 51,988 138,341

Long-Term Liabilities

Loan Balance

43,653 38,802 33,952

Hire-Purchase Balance

43,653 38,802 33,952

Current Liabilities

Accounts Payable

1,800 3,000 4,200

TOTAL EQUITY & LIABILITIES 66,771 93,791 176,493


9.6 Financial Analysis


FINANCIAL RATIO ANALYSIS


LIQUIDITY

Current Ratio 11 19 36

Quick Ratio (Acid Test) 6 17 35

EFFICIENCY

Inventory Turnover 2 4 4

PROFITABILITY

Gross Profit Margin 93.45% 91.56% 92.17%

Net Profit Margin -24.55% 7.99% 19.55%

Return on Assets -117.84% 32.70% 48.93%

Return on Equity -369.09% 58.99% 62.42%

SOLVENCY

Debt to Equity 213.21% 80.41% 27.58%

Debt to Assets 68.07% 44.57% 21.62%

Time Interest Earned (33) 13 44


0

5

10

15

20

25

30

35

40

1 2 3

Rati

o

Year

Current Ratios

0

5

10

15

20

25

30

35

40

1 2 3

Rati

o

Year

Quick Ratios


0

1

1

2

2

3

3

4

4

5

1 2 3

Tim

es

Year

Inventory Turnover

90,50%

91,00%

91,50%

92,00%

92,50%

93,00%

93,50%

94,00%

1 2 3

Percen

t

Year

Gross Profit Margin

90,50%

91,00%

91,50%

92,00%

92,50%

93,00%

93,50%

94,00%

1 2 3

Percen

t

Year

Gross Profit Margin

90,50%

91,00%

91,50%

92,00%

92,50%

93,00%

93,50%

94,00%

1 2 3

Percen

t

Year

Gross Profit Margin

90,50%

91,00%

91,50%

92,00%

92,50%

93,00%

93,50%

94,00%

1 2 3

Percen

t

Year

Gross Profit Margin


-30,00%

-25,00%

-20,00%

-15,00%

-10,00%

-5,00%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

1 2 3Percen

t

Year

Net Profit Margin

-140,00%

-120,00%

-100,00%

-80,00%

-60,00%

-40,00%

-20,00%

0,00%

20,00%

40,00%

60,00%

1 2 3

Percen

t

Year

Return on Assets


-400,00%

-350,00%

-300,00%

-250,00%

-200,00%

-150,00%

-100,00%

-50,00%

0,00%

50,00%

100,00%

1 2 3

Percen

t

Year

Return on Equity

0%

50%

100%

150%

200%

250%

1 2 3

Percen

t

Year

Debts to Equity

Series1


0%

10%

20%

30%

40%

50%

60%

70%

80%

1 2 3

Percen

t

Year

Debts to Assets

-40

-30

-20

-10

0

10

20

30

40

50

1 2 3

Tim

es

Year

Times Interest Earned


9.7 Budget

9.7.1 Administrative budget

ADMINISTRATIVE BUDGET

Particulars F.Assets

Monthly Exp. Others Total

Fixed Assets

Land & Building -

-

Office furniture & fittings 5,965

5,965

Renovation 20,000

20,000

-

-

-

-

Working Capital

Office supplies 906

906

Rent 4,000

4,000

Utilities 900

900

Salary, EPF & Socso 5,153

5,153

-

-

-

-

-

-

Pre-Operations & Other Expenditure

Other Expenditure -

Deposit (rent, utilities, etc.) -

-

Business Registration & Licences 1,500

1,500


-

-


9,500

Total 25,965

10,959

11,000

47,924


9.7.2 Marketing budget

MARKETING BUDGET

Particulars F.Assets

Monthly Exp. Others Total

Fixed Assets

Signboard 4,000

4,000

-

-

-

-

-

-

Working Capital

Salary, EPF & Socso 2,290

2,290

Advertising 200

200

-

-

-

-

-

-

-

-

-

-


Other Expenditure -


-

Business Registration & Licences -

-


-

-


6,000

Total 4,000

2,490

6,000

12,490


9.7.3 Operations budget

OPERATIONS BUDGET

Particulars F.Assets Monthly

Exp. Others Total

Fixed Assets

Machineries 28880 28,880

-

-

-

Working Capital

Raw Materials -

-

Carriage Inward & Duty -

-

Salaries, EPF & SOCSO 12,138

12,138

-

-

-

-

-

-

-

-


Other Expenditure -


-

Business Registration & Licences -

-


-

-


40,000

Total 28,880

12,138

40,000

81,018


9.8 Depreciation schedule

Fixed Asset Office furniture & fittings

Cost (RM) 5,965

Method Straight Line

Economic Life (yrs) 5

Annual Accumulated Year Depreciation Depreciation Book Value

- -

5,965

1 1,193 1,193

4,772

2 1,193

2,386

3,579

3 1,193

3,579

2,386

4 1,193

4,772

1,193

5 1,193

5,965

-

6 0 0

-

7 0 0

-

8 0 0

-

9 0 0

-

10 0 0

-

Fixed Asset Renovation

Cost (RM) 20,000



Annual Accumulated Year Depreciation Depreciation Book Value

- -

20,000

1 4,000

4,000

16,000

2

4,000

8,000

12,000

3

4,000

12,000

8,000

4

4,000

16,000

4,000

5

4,000

20,000

-

6 0 0

-

7 0 0

-

8 0 0

-

9 0 0

-

10 0 0

-


Fixed Asset Signboard

Cost (RM) 4,000



Annual Accumulated

Year Depreciation Depreciation Book Value

- -

4,000

1 800

800 3,200

2 800

1,600

2,400

3 800

2,400

1,600

4 800

3,200

800

5 800

4,000

-

6 0 0

-

7 0 0

-

8 0 0

-

9 0 0

-

10 0 0

-

Fixed Asset Machineries

Cost (RM) 28,880



Annual Accumulated

Year Depreciation Depreciation Book Value

- -

28,880

1 5,776 5,776

23,104

2 5,776

11,552

17,328

3 5,776

17,328

11,552

4 5,776

23,104

5,776

5 5,776

28,880

-

6 0 0

-

7 0 0

-

8 0 0

-

9 0 0

-

10 0 0

-


9.9 Loan repayment schedule

LOAN REPAYMENT SCHEDULE

Amount 48,503

Interest Rate 5%

Duration (yrs) 10

Method Baki Tahunan

Year Principal Interest Total Payment Principal Balance

- -

48,503

1 4,850

2,425

7,275

43,653

2 4,850

2,183

7,033

38,802

3 4,850

1,940

6,790

33,952

4

4,850

1,698 6,548

29,102

5

4,850

1,455 6,305

24,252

6

4,850

1,213 6,063

19,401

7

4,850

970 5,820

14,551

8

4,850

728 5,578

9,701

9

4,850

485 5,335

4,850

10 0 0 - 4850


9.10 Sales and purchases projection.

SALES PROJECTION

Month 1 20,000

Month 2 22,500

Month 3 24,000

Month 4 23,750

Month 5 24,000

Month 6 25,500

Month 7 26,500

Month 8 28,750

Month 9 29,000

Month 10 31,000

Month 11 31,550

Month 12 34,000

Total Year 1 320,550

ToTal Year 2 384,060

Total Year 3 441,700

PURCHASE PROJECTION

Month 1 -

Month 2 -

Month 3 3,000

Month 4 3,000

Month 5 3,000

Month 6 3,000

Month 7 3,000

Month 8 3,000

Month 9 3,000

Month 10 3,000

Month 11 3,000

Month 12 3,000

Total Year 1 30,000

ToTal Year 2 32,000

Total Year 3 34,000

ENDING STOCK OF FINISHED GOODS RM

End of Year 1

9,000

End of Year 2

8,600

End of Year 3

8,000

TERMS OF LOAN (if required)

Interest rate 5%

Loan duration 10

Interest payment method* 2

* Method: 1 = flat rate 2 = annual rest


PAYMENTS FOR PURCHASES

In the month of purchase 40%

1 month after purchase 60%

2 months after purchase

Total 100%

COLLECTIONS FOR SALES

In the month of sale 100%

1 month after sale

2 months after sale

Total 100%

ENT300 - Final Project _Hair Salon

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Transcript of ENT300 - Final Project _Hair Salon