Operation Plan-1 (2).docx

ACKNOWLEDGEMENT

Assalamualaikum w.b.t. First and foremost, we would like to thank to our lecturer,

Miss Norafifa Binti Mohd Ariffin for the valuable guidance and advice. He inspired us greatly

to work in this project. His willingness to motivate us contributed tremendously to our

project. We also would like to thank him for showing us some example that related to the

topic of our project. We feel motivated and encouraged every time we attend his meeting.

Without his encouragement and guidance this project would not be materialized.

Besides, we would like to take this opportunity to thank to the InED (Institut

Pendidikan Neo) University Technology Mara (UiTM) for offering this subject, ENT 300

Fundamental of Entrepreneurship. It gave us an opportunity to participate, learn and

experiencing sophistication and convenience in entrepreneurship.

In addition, we would also like to thank our group members which provide us

valuable information as the guidance of our project. Apart from the efforts of us, the success

of any project depends largely on the encouragement and guidelines of many others. We

take this opportunity to express our gratitude to the people who have been instrumental in

the successful completion of this project.

Finally, an honorable mention goes to our families and friends for their

understandings and supports. We are grateful for their constant support and help. Without

helps of the particular that mentioned above, we would face many difficulties while doing

this. Last but not least, we hope that this project will fulfill the needs of this course and also

gives us the benefits and be a guideline in the future.

Thank you.

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EXECUTIVE SUMMARY

Twiggy Hair Salon is a full-service beauty salon dedicated to consistently providing high

customer satisfaction by rendering excellent service, quality products, and furnishing an

enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a

friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

This business is based on partnership where it consists of three (3) members who hold

important positions in the company such as General Manager, Administration/Financial

Manager, Marketing Manager and Operational Manager. The business capital is amounted

to RM 400,000.00 where the total contribution of each member is RM65,000.00 and the rest

RM 205,000.00 is from SME Bank loan.

All of us have worked in a prestigious, upscale salon in Bangsar, Kuala Lumpur for the past

two years. We have created a large client following through hard work and dedication. We

and our talented team of beauticians, has what it takes to make this venture an extremely

successful one. We expect our growing reputation to lead to new clients and beauticians to

support our anticipated growth.

At present, there are many salons that provide the services. Therefore, we want to introduce

our salon, and we want to beat other salon with high customer satisfaction by rendering

excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable

price/value relationship. We will also maintain a friendly, fair, and creative work environment,

which respects diversity, ideas, and hard work.

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PURPOSE OF BUSINESS PLAN

Hair salons provide men and women with services to clean condition, strengthen, cut, style

and color their hair.

Career Advancement

Hairstylists who have spent years working under the direction of other hair salon owners

may be motivated to open a salon for career advancement and to establish a brand. After

years of working in a salon, hairstylists know how they operate, including raising capital,

marketing themselves and hiring staff. Owning their own salons is a seemingly natural

transition.

Fulfill a Community Need

Some areas are heavily populated, but lack businesses that provide the services and

products residents want and need, including perhaps a hair salon. A prospective owner

could lure clients with easy access, convenient parking, a skilled staff and affordable pricing.

An owner in an under-served community can get first-mover's advantage and generate a

loyal clientele.

Entrepreneurial Dream

An interest in hair and a strong desire to be an entrepreneur leads individuals to open hair

salons, whether they're licensed stylists or hiring licensed stylists to work for them. Opening

a salon gives an aspiring entrepreneur a way to provide beauty services to the community

while fulfilling the desire to own and operate a business.

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Serve an Under-served Market

The area in which you plan to open your hair salon may already have salons but, if you have

a creative niche, the competition won't be a significant factor. For example, a prospective

owner might consider a hair salon that serves brides and their bridal parties, a place that

focuses on children or one that specializes in hair care for seniors.

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COMPANY BACKGROUND

NAME OF COMPANY TWIGGY HAIR SALON SDN. BHD.

BUSINESS ADDRESS TWIGGY HAIR SALON

PT7137 JALAN CASUARINA 4,

TAMAN DESA CASUARINA,

71800 SEREMBAN.

NEGERI SEMBILAN

EMAIL ADDRESS [email protected]

TELEPHONE NUMBER 06-798 0221 / 017-370 8386

FAX NUMBER 06-798 6044

FORM OF BUSINESS PARTNERSHIP

DATE OF COMMENCEMENT 6TH JANUARY 2015

DATE OF REGISTRATION 3rd February 2015

REGISTRATION NUMBER 0569811-T

NAME OF BANK MAYBANK

BANK ACCOUNT NUMBER 147008642154456

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mailto:[email protected]

SHAREHOLDER/PARTNER BACKGROUND

GENERAL MANAGER

Name of the partner Nor’ain Zainal Abidin

Identity card number 901102-14-6042

Permanent Address No. 78 Jalan 3/15

Panchor Jaya

43300 Seremban

Negeri Sembilan

Age 25

Marital status Married

Present occupation General Manager

Academic Qualification Master in Business Management

Courses Attended Business Administration, Entrepreneur Talk

2011 & 2012

Experience 3 years as Assistant General Manager at

Ilham Bina Resources

Skills Good in Leadership/Management Skills

Good time management, problem solving,

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organizational skills.

Good in Planning/Organizing

ADMINISTRATIVE & FINANCIAL MANAGER

Name of the partner Yuniza Binti Baharom

Identity card number 810311-14-5552

Permanent Address No. 12, Seksyen 1/4, Perkeliling Aman 3,

Taman Kajang Utama, 43000 Kajang,

Selangor

Age 34

Marital status

Present occupation

Academic Qualification Degree in Business Administration

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Courses Attended

Experience

Skills Good in Leadership/Management Skills

Good time management, problem solving,

organizational skills.

Good in Planning/Organizing

MARKETING MANAGER

Name of the partner

Identity card number

Permanent Address

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Age

Marital status

Present occupation

Academic Qualification

Courses Attended

Experience

Skills

ADMINISTRATIVE PLAN

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ORGANIZATION CHART

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Nor'ain Zainal AbidinGeneral Manager

Administrative & Financial Manager Operation Manager

LIST OF ADMINISTRATION PERSONNEL

POSITION NO. OF STAFF

General manager 1

Administration& Financial Manager 1

Operation Manager 1

Hair Stylist 4

TOTAL 7

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SCHEDULE OF TASK AND RESPONSIBILITIES

RESPONSIBILITIES POSITION TASKS

General Manager

To plan, implement and control the overall

management of the business

To plan and monitor the strategic progress of

the business

To be accountable for the overall performance

of the business

Operation Manager

To manage all the business flow during

operation

Order product

Responsible for the overall performance of the

general workers assigned to them.

Delegate duties according to the schedule

given.

Financial Manager

Prepared cash flow, trading profit and loss

account and also the balance sheet for the

company.

To manage all financial management.

Handle the administration, operations and

marketing expenses.

Responsible to the entire activities that involves

the company finance.

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RESPONSIBILITIES POSITION TASKS

Hair Stylist

Hairstyling Services

Client Consultation

Customer Relations

Manage daily transactions.

Arrange stock

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REMUNERATION FOR ADMINISTRATIVE STAFF

POSITIONNO.

MONTHLY SALARY

(RM)

EPF

CONTRIBUTION

(12%) (RM)

SOCSO

(2.5%) (RM)

AMOUNT

(RM)

General Manager 1 2,500.00 300.00 62.50 2,862.50

Operation Manager 1 2,000.00 240.00 50.00 2,290.00

Financial Manager 1 2,000.00 240.00 50.00 2,290.00

Hair Stylist 4 6,400.00 768.00 140.80 7,308.80

TOTAL 14,751.30

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LIST OF OFFICE EQUIPMENT

NO. ITEM QUANTITY

COST

PER

UNIT

TOTAL

1 Computer 1 1500 1500

2 Printer 2 400 400

3 Telephone 1 100 100

4 First Aid Box 1 130 130

5 Fire Extinguisher 1 300 300

6 Dustbin 2 5 10

7 Broom set 3 10 30

8 Air-Conditioner 1 1800 1800

9 Fax Machine 1 400 400

10 Water Dispenser 1 300 300

Total 14 4,945 4,970

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LIST OF FURNITURE, FIXTURE AND FITTING

No. Item Quantity Cost Per

Unit

Total

1 Square table 3 unit 300 900

2 Office chair 3 unit 100 300

3 Meeting table + 6 chair 1 set 1,200 1,200

4 File document rack 3 unit 50 150

Total 2,550

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LIST OF STATIONERY

NO. ITEM QUANTITYCOST PER

TOTALUNIT

1 A4 paper 3 rim 9 18

2 Calculator 3 pcs 5 15

3 File 10 pcs 10 100

4 Pen 10 pcs 1.5 15

5 Pencil 10 pcs 1 10

6 Glue 5 pcs 0.8 4

7 Marker pen 2 pcs 2 4

8 Eraser 5 pcs 0.5 2.5

9 Cop 3 pcs 15 45

10 Rubber stamp 3 pcs 3 9

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ADMINISTRATIVE BUDGET

PARTICULARS FIXED

ASSETS

MONTHLY

EXP.

OTHERS TOTAL

Fixed Assets

Land and Building - -

Office Equipment

- -

- -

Working Capital

Salaries

Utilities

EPF

SOCSO

Stationery

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- -

- -

Pre-Operations and Other

Expenditure

Other Expenditure - -

Deposit (rent, utilities, etc)

Business registration & Licenses

Insurance & Road Tax Motor Vehicle - -

Other Pre-Operation Expenditure - -

Total

MARKETING

PLAN

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INTRODUCTION TO MARKETING PLAN

Marketing can be defines as ‘satisfying needs and wants through an exchange process’.

Marketing Plan helps to evaluate market acceptance, develop strategies to market products

or services of the business, identify required resources to execute the marketing strategy

and estimate marketing financial requirement.

The marketing concept is the philosophy that firms should analyze the needs of the

customers and then make decisions to satisfy those needs, the better than the competition.

In our business, we allow the entire family to have their hair needs satisfied in one

convenient location. We serve men, women, and children and accept appointments as well

as walk-ins.

Our marketing strategy is the key to our success:-

1. Emphasize our name and unique services and environment through advertising.

2. Focus on the convenience of our location.

3. Build community relationships and corporate relationships through unique and quality

service, a friendly caring, and delivering good service.

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PROFILE OF SERVICE

Twiggy Hair Salon Sdn. Bhd. give a variety services from styling and cutting to extensions,

coloring, perms and relaxers, Twiggy Hair Salon stylists can manage all of your hair care

needs and desires as well as haircuts for children. When you walk out of our door, we want

you to be completely satisfied with the look and style of your hair. Our stylists will consult

with you about the perfect style for the type of hair you have.

TARGET MARKET

Target market is defined as the group of customer, which has needs, and wants that can be

satisfied by the business through the supply of goods or services.

There are several strategies can be followed to divide the market into segments. Those are

presented as Geographic segmentation, Demographic segmentation, Psychographic

segmentation and Behavioral segmentation.

We can conclude that the best segmentation technique for this salon is Demographic

Segmentation. There are several criteria used to divide the market under Demographic

Segmentation. Those are:-

1. Age

2. Gender

3. Family size

4. Family life cycle

5. Income

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6. Occupation

7. Education

This is because the Seremban area is considered as a big town. The people are from all

level of incomes.

A typical consumer from this target group is:-

1. A professional woman

2. Very hair conscious and always wants to look her best

3. Wants professional, salon quality products

4. Buys hair care products from shops and hairdressing salons

5. Relies on recommendations from friends when making hair care purchase decisions

6. Makes buying decisions based on clinical evidence.

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MARKET SIZE

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COMPETITION

This fact is inevitable and actually, every business must face competition for the sake

of delivering the best to clients. Imagine a city with just a few hair salons that are always

congested with clients seeking attendance. That could not only be boring but tedious too

since clients strain to wait in turns. The long queues in hair salons are outdated, thanks to

the competitive nature in the hair industry. Competition is triggered by so many factors and it

has resulted to the emergence of more equipped and well established hair salons which has

also resulted to the improvement of the old salons.

Appearance the hair salon that has a presentable outlook will surely win clients.

Some clients are likely to judge the performance of a salon by just looking at the outlook of

the structure. Hair salons must have a presentable look to remain in business.

Professionalism is most the important thing once a hair salon settles on having

skilled and qualified personnel; it makes it easy to move clients. When it comes to services

on beauty, everyone looks forward to getting the best attendance and an appropriate service

delivery

The varieties for the customer to choose when hair salon offers diverse services, it

becomes so simple to penetrate since our salon is seen to be advanced and modern in

nature.

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MARKET

SHARE

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SALE

FORECAST

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MARKETING STRATEGY

Sell the Experience

Whether the salon is stand-alone or attached to a spa, we will draw new customers

through the lure of a particular experience. In our website have a feature high-quality image

of the location, which are inviting and promote our business' featured services. Appeal to our

target market feature creative styles for a younger demographic and time away from a busy

life for mid-life professionals.

Focus on Customer Retention

A large portion of salon revenue comes from repeat business. We will provide our

Stylists new clients with the salon's card and the stylists name so they can easily make

another appointment for the next visit. Keeping in contact with customers through the use of

an e-mail list, promotional cards or a monthly newsletter is a way to ensure customers

remember our location. Incentives for repeat business, including discounts for subsequent

visits or free product after 10 cuts, are good ways to keep our customer coming back.

Encourage Word-of-Mouth Promotion

It's not unusual for women to go to the salon together. If they come to our salon,

that's two customers instead of one. That's the idea behind a "Bring a Friend" promotion

where a client gets 50 percent off their cut if they bring a friend, or gets 10 percent off for

every friend who comes to the salon and mentions the client's name. Tying these promotions

with full-priced sales ensures our customers get a bonus, but on the same times our profit

remains stable.

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Partner With Other Businesses

Hotels near our salon might keep our marketing material on-hand in case a guest

asks for a referral to a local stylist. Other businesses in the hospitality industry, including

restaurants, fitness and community centers might also have a bulletin board with advertising

from local businesses. Our city's tourism information center will stock brochures about the

sites around your town, and might also agree to set a place aside for our advertising.

Encourage Product Sales

Product is a second revenue stream for salons and is a useful strategy to get

customers in the door and to spend more once they are there. Advertise sales on products in

combination with a service; for example, 50 percent off a shampoo and conditioner combo

with any cut. Stylists can also contribute to this strategy during the cut by describing the

product they are using to the client and encouraging its continued use.

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MARKETING

BUDGET

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OPERATION

PLAN

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INTRODUCTION TO OPERATION PLAN

Operations plan is the one of the section that is included in the business plan. This section

will demonstrate the operational aspect of the business that is crucial in transforming the

business input and output. The operations plan will ensure the business is able to produce

the product or to provide the services that the business had planned in the marketing plan.

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OPERATION DEPARTMENT STRATEGIES

We try our best to emphasize quality, originality, and "World Class Service" to our

customer. We will differentiate ourselves from our competitors by offering a staff of

practitioners who are not only certified in their professions, but will be trained in

understanding the dynamics of customer service so as to maximize the connection to their

clients and more easily meet their clients expectations.

We will provide a unique atmosphere. From our professional staff to our ambience of

our barber shop, TWIGGY’s will distinguish itself as a completely trustworthy and soothing

setting where clients can enjoy being pampered, escape the stress of their everyday lives

and enjoy the camaraderie of friends and colleagues.

Build a community or corporate relationship-oriented business. We will focus on

strengthening the trust of our customer base, and providing not only services, but

information that will aid everyone in the progression of obtaining a balanced and healthy

lifestyle.

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OPERATION PROCESS

PROCESS FLOWCHART

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Supervisor orders all the hair products from

supplier.

All hair products needed being delivered by the

supplier.

Check hair products based on what we

ordered once arrival and payment by cash or

credit.

Hair products will be put on the cabinet area.

Arrange the product based on their type and

function.

Hair product will be taken out upon requirements.

CAPACITY PLANNING

MONTHTYPE OF

PRODUCTPERSON MONTH

TYPE OF

PRODUCTPERSON

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Customer come in to the salon

Greet customer

Request

Serve

Pay

JANUARY

Shampoo &

Conditioner244

JULY

Shampoo &

Conditioner220

Treatment 189 Treatment 183

Styling 150 Styling 160

FEBRUARY

Shampoo &

Conditioner215

AUGUST

Shampoo &

Conditioner235



MARCH

Shampoo &

Conditioner222

SEPTEMBER

Shampoo &

Conditioner223



APRIL

Shampoo &

Conditioner200

OCTOBER

Shampoo &

Conditioner234



MAY

Shampoo &

Conditioner232

NOVEMBER

Shampoo &

Conditioner231



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MONTHTYPE OF

PRODUCTPERSON MONTH

TYPE OF

PRODUCTPERSON

JUNE

Shampoo &

Conditioner240

DECEMBER

Shampoo &

Conditioner245



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MATERIAL REQUIREMENT

ITEMPRICE / UNIT

(RM)

NO.

REQUIREMENT

TOTAL COST

(RM)

Professional Shampoo 50.00 30 1,500.00

Volume Shampoo 50.00 30 1,500.00

Moisture Shampoo 50.00 30 1,500.00

Deep Conditioner 47.00 30 1,410.00

Colored Hair Conditioner 47.00 30 1,410.00

Daily Conditioner 40.00 30 1,200.00

Hair Styling Product 38.00 30 1,140.00

Hair spray 48.00 30 1,440.00

Hair Serum 67.00 30 2,010.00

Hair Protection 50.00 30 1,500.00

Color Treated Hair Care 50.00 30 1,500.00

Hair Product for Curly Hair 48.00 30 1,440.00

Damage Hair Product 65.00 30 1,950.00

Dry Hair Product 48.00 30 1,440.00

Dull Hair Product 48.00 30 1,440.00

Fine Hair Product 48.00 30 1,440.00

Frizzy Hair Product 48.00 30 1,440.00

Moisturizing Hair Product 48.00 30 1,440.00

Thinning Hair Product 48.00 30 1,440.00

Straitening cream 72.00 30 2,160.00

Curling cream 32.00 30 960.00

Color cream 20.00 30 600.00

Cutting cape 15.00 14 210.00

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Towel 5.00 50 250.00

Hair roller 15.00 10 150.00

Hair clip 12.00 20 240.00

Straitening brush 20.00 6 120.00

Tint bowl 4.00 20 80.00

Perm rod 5.00 10 50.00

TOTAL (RM) 32,960.00

LIST OF MACHINE AND EQUIPMENT

ITEM

(MACHINERY)

PRICE / UNIT

(RM)

NO.

REQUIREMENT

TOTAL COST

(RM)

Electronic grooming set 290.00 4 1,160.00

Ridged curling iron 280.00 4 1,120.00

Curling iron 300.00 4 1,200.00

Hair straightener 580.00 4 2,320.00

Big barrel curler 150.00 4 600.00

Curling comb 230.00 4 920.00

Hair Dryer 280.00 4 1,120.00

Hair steamer 425.00 4 1,700.00

Hood Dryer 400.00 4 1,600.00

TOTAL (RM) 11,740.00

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ITEM

(EQUIPMENT)

PRICE/UNIT

(RM)

NO.

REQUIREMENT

TOTAL COST

(RM)

Hair styling chairs 500.00 14 7,000.00

Shampoo chairs 830.00 8 6,640.00

Styling mirror 310.00 14 4,340.00

Stool 140.00 4 560.00

Sofa 300.00 6 1,800.00

Coffee table 280.00 1 280.00

Product cabinet 700.00 2 1,400.00

Reception desk 650.00 1 650.00

Carts and trolleys 185.00 4 740.00

Scissors set 125.00 4 500.00

TOTAL (RM) 23,910.00

OPERATION LAYOUT

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BUSINESS HOUR

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DAY WORK REST WORK REST WORK

Monday -CLOSE -

Tuesday10.00a.m.-

1.00 p.m.

1.00 p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

Wednesday10.00 a.m.-

1.00 p.m.

1.00p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

Thursday10.00 a.m.-

1.00 p.m.

1.00 p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

Friday10.00 a.m.-

1.00 p.m.

1.00 p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

Saturday10.00 a.m.-

1.00 p.m.

1.00 p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

Sunday10.00 a.m.-

1.00 p.m.

1.00 p.m.-

2.00 p.m.

2.00 p.m. -

5.00 p.m.

5.00 p.m.-

6.00 p.m.

6.00 p.m.-

10.00 p.m.

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Business hour

Business hour refer to the time of business is open to the workers. The workers will dotheir

job based on the timetable that had stated. The business hour will start from 10.00 am to

10.00 pm which is 12 hours. Normally, the workers will work only for 8 hours and extra job

known as part time job. The work shift will start from 10am until 1pm, 2pm until 5pm and

6pm until 10pm. Thus, the rest time for the workers is on 1pm until 2pm and 5pm until 6pm.

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OPERATION OVERHEAD

ITEMMONTHLY EXPENSES

(RM)

Water 1,000.00

Electricity 1,500.00

Telephone/Wi-Fi 300.00

Rental on Premise 2,500.00

TOTAL (RM) 5,300.00

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OPERATION BUDGET

PARTICULARSFIXED

ASSET

MONTHLY

EXPENSESOTHERS TOTAL

Fixed Assets

Machine 11,740

Equipment 23,910

35,650

Expenses

Utilities 1,500

Materials 32,960

Salary 6,400

EPF 768

SOCSO 140.80

41,768.80

Pre-Operation & Other Expenditure

Other Expenditure

Deposit (rent, utilities, etc.) 2,500

Business Registration &Licenses

Insurance & Road Tax for Motor Vehicle

Other Pre-Operation Expenditure

2,500

TOTAL 35,650 44,268.80 79,918.80

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SUMMARY

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Summary

The major problem hindering TWIGGY growth is sufficient capital to hire more employees,

increase inventory, and attend more trade shows. Hair care already has thousands of

clients in an area. We already have loyal suppliers. We have a staff with a combined a few

year industry experience. They already have a three-pronged system of service in place that

is distributed through multi-channels. They have all of the tough problems solved and can

put the new capital to immediate, productive use.

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Operation Plan-1 (2).docx

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Transcript of Operation Plan-1 (2).docx