Hair Salon Business Plan

Name

Course

Institution

Date
 Executive Summary

The business plan shall cover the name of the company description, Industry analysis and

trend, The target market, competition, strategic positioning and risk management, marketing plan

and sales strategy, operations, technology plan, management and organization, community

involvement and social responsibility and the financial projections.

Chapter 1. COMPANY DESCRIPTION

Name

Queentex hair salon is a one-person suite of 500 square feet located in Bartlett, Tn

38134.

Our Mission Statement

Queentex is founded on the idea of transformational beauty by use of hair products to

both the men and women with the best expertise of gifted and trained hair specialists. Queentex

main object is to provide customer satisfying services in the salon industry. Other objectives

include: To offer the most quality hair products, and to provide an avenue for job opportunities

to young and talented youths, to provide clients with the best and affordable new hair styles, to

offer clients with advice on how to treat and maintain their hair, and to give the best digitalized

ecofriendly salons services to our and to be the most competing hair salon in the location.

Form of Business
 Queentex will be a sole proprietor business owned, run and managed by me. All the

finances, profits and loses shall be incurred directly by me. The business was formed out of

passion and love for the beauty and hair industry.

Trademarks, copyrights and other legal issues.

Queentex is a brad on its own still in the process of registering for a trademark. The

proposed trademark is as follows:

QX

Queentex hair salon is also in the process of acquiring license to start operation in Bartlett, Tn

38134.

Products or services

Our main activity will be provision of hair services such as blow dry, haircuts, formal

and informal hair designs, hair coloring, weaves and wigs, braiding, hair relaxing, and hair

extensions. Other services include nail servicing and facials services. Our main good s will be

hair gels, creams, oils and perfumes and different types of hair.

Management and Leadership

Queentex hair salon shall be managed and led by one person since it is a sole proprietor

business and has just started. The salon aims to hire three talented and gifted hair specialists with

experience of three years whom they will be paid on a fifty bases commission from the income
generated from them. The basic leadership style that will be used is the participative one since all

the employees are specialists in hair and beauty products

Location and Geographical location

Queentex hair salon will be located at Bartlett, Tn 38134 on a 500 square meters’ land.

Bartlett is a city in the southwest of Tennessee located in the Shelby county. Being one of the

most growing cities, Bartlett, Tn 38134 will expose our salon to a number of advantages such as

customers and good infrastructure. The location of the salon gives it a competitive advantage

since its close to the road and has ample parking space for clients.

Development stage

Queentex hair salon was always a dream since my days in High school. I really wanted

to major into the beauty industry and mainly in a hair salon. My motivation was derived from my

mother who used to make my hair in different styles each week as I was going to school. In high

school I could not control my desire to make my fellow classmates hair. One time my friend

joked to me and said that I should be using my energy better by charging small amounts to any

job done. This is how I grew my yearning to work and own a hair salon and I therefore started a

part time hustle of doing door to door salon services to my classmates and even some of my

teachers. My classmates started referring me as the queen of hair. This was the origin of

Queentex hair salon. Balancing work and school was not an easy job that way I did not open a

salon again starting a salon needed high capitals for the equipment, space and labor and that why

I did not open a permanent location till now.

Milestones Achieved to date

 The main achievement that Queentex has achieved to now is the ability to mitigate

through school work and visiting clients. Another milestone is how I managed to come up with

new ideas to my clients even without going through a hairdressing college. Ability to maintain

door to door ties with my client was also another milestone I achieved. The journey is still on

and with the opening of a permanent location I can be assured of passing through other

milestones and bringing excellence into the hair and beauty industry.

Specialty business information

A specialty businesses are the already existing businesses that will help and provide

materials for your start up business Queentex hair salon will have specialty businesses to support

its operations and it will include: Aquableu.com to provide with natural shampoos and hair

conditioners on a wholesale amounts, Sally Beauty supply to provide with hair braids, hair

perfumes and oils, and Smell me good soaps to provide with all soaps and facials creams. We

shall also have three hair specialist working in the in the salon.

Financial status

The initial capital will be contributed by the owner with the help with the family and

some borrowing. We are aiming at borrowing a loan of 12,000 dollars from a bank. I have also

made contributions from my savings, friends and family of up to 36,000 dollars. Queentex loses

and profits shall be directly incurred by the owner that is the owner takes in all the risks involved

with the business. The salon is anticipating in making profits from the first year.

Chapter 2. INDUSTRY ANALYSIS AND TREND

Size and growth rate of Industry

 Queentex hair salon is operating in the beauty and hair industry. This is one of the most

growing industry with more than one hundred salons in Bartlett. The growth rate of hair industry

is so high with many people moving digital and contacting their clients directly via the internet at

their convenience. The industry is growing towards digitalization and many salons are embracing

the use of modern technology equipment and hair styles in their shops as well as digital

marketing tactics.

Industry maturity

The hair salon industry is fast growing industry with new emerging trends and

introduction of new hair styles. This is an industry which has been maturing for a long period of

time. To cope with the maturity in the industry Queentex hair salon is going hand in hand with

the upcoming trends.

Sensitivity to Economic Cycles

Economic cycles occur due to the change in the demand and supply of products and

services which can either result into a boom or a recession in the economy. Due to the corona

virus covid 19 pandemic the hair industry has been going through cycles of boom and recession.

Many clients are staying at home and visit the salons once in a while. Others have undertaken

self-training courses of hair services. During holidays the hair industry is on its boom, while out

of holidays it goes to recession. Queentex hair salon is sensitive to such cycles and we shall be

offering both onsite and door to door services to our clients.

Seasonal factors
 Season vary from environmental, political, economic and social factors. Some

environmental changes will see into boom of hair industry such as the winter seasons many

people will consider making their hair than during summer. Social changes such as Halloween

will make many people to get Halloween kind of hair styles. Economic changes such as end

month salaried people will tend to make their hair when they are paid. Political changes such as

during elections many people prefer getting hair services at their comfort. Queentex is aware of

all seasonal factors and how to mitigate through them. Seasons are very unpredictable and that is

why the salon has undertaken a lot of research on how to mitigate through seasons.

Regulation and Certification

The hair industry is charged with the responsibility to take care of salons and protect its

clients. The salon should provide follow up for complaints raised by clients. They should also

follow all the safety measured provided by the occupational safety and health administration and

the environmental protection agency. Queentex have applied for health inspection certificate and

business owners license. The salon is also adhering to the corporate social responsibility towards

the society. We also have a company policy with cited rules and regulations to be observed in the

salon. We also adopt to the code of conduct and professionalism of hairdressers.

Supply and Distribution

Queentex hair salon will be receiving supply of soaps, oils, perfumes, creams, shampoos

and other salon items. The suppliers are already known and their physical location is known as

well. The suppliers stream pattern has been monitored and its been confirmed to be steady

despite the economic and seasonal factors. The suppliers are distributed close to the salon and

some of them deliver their products at the doorsteps of the salons. The bargaining power of
suppliers has been brought down due to the existence of so many hair products suppliers in

Bartlett city with quality hair products. Spotting a hair product supplier in the city is very easy

since they are located strategically around malls and rounder about.

Financial Characteristics

The industry is mainly characterized by the middle group class with people earning the

minimum wage. It also has the wealthy and poor. Queentex is determined to reach all the group

of people with different services according to one’s financial strengths. Queentex is an

accommodating hair salon and everyone in the society is guaranteed excellent services despite

their financial characteristics.

Anticipated Changes and Trends in Industry

The hair industry is radically changing with many women preferring natural and short

hair and men keeping their hair long. Many salon appliances are available to the people with

manuals on how to use them thus making many clients to shift to doing their hair services.

Another trend in the hair industry is the use of wigs and thus leaving salons with less work and

services to offer. Many salons are also adopting the use of after sales services to attract more

customers such as massage, facials and manicures. Another trend in the hair industry is the use of

ecofriendly hair products. Queentex is working hand in hand with the trends in order to remain

relevant in the market.

Global Industry concerns

The main global concern currently is the effects covid 19 pandemic will have in the hair

industry. The pandemic has seen into many lockdowns thus preventing clients from going to
salons. Another global concern is use of social corporate responsibility in salons and owners

providing a safety health avenue for its clients/Another global issues is the effect the growth of

internet will have to salons. These concern has challenged many hair salons to go digital in their

operation and involve their clients digitally. Queentex is in the process of developing a website

for its clients.

Chapter 3. THE TARGET MARKET

Demographics and Geographic’s

The target market is both the men and women, children youths and adults living and

visiting Bartlett. My clients are located in Bartlett city and some of them we have their physical

address. My clients include both the employed and unemployed, educated and uneducated,

wealthy, middle class and the poor. With the digitalization of operations, it is easy to reach

clients because they book appointments online.

Lifestyle

The main lifestyle of the people in Bartlett city is modern lifestyle with some people still

living in the traditional lifestyle. Queentex hair salon is giving services to the both kinds of

lifestyles with hair styles fitting the traditional and modern styles. The sexuality basis Queentex

is offering services to everyone regardless of their sexuality. Bartlett city is characterized by

Open marriages, celibacy, gays and lesbianism.

Purchasing Pattern
 The purchasing pattern of hair products and salon services in Bartlett city is unpredictable

with many people getting hair services once they have been paid their salaries and others all

throughout the months. Some clients pay via cash while others write cheques, send directly to

bank and others on credit. Other clients are frequent customer’s others are just visiting Bartlett

city. Other clients buy in bulk while others buy as their demand falls short. Some other clients

purchase online only for deliveries others come in person and select whatever they want. There

are some who have to bargain for a products others pay for what has been quoted thus making

the purchasing pattern to be so diverse.

Buying sensitivities

People in Bartlett city are much more concerned at the quality of hair products and

services offered compared to the prices. The more quality hair products and services the more

purchases they make. The demand is inelastic and prices do not affect the majority of people as

long as the quality is not compromised. Queentex is offering the best services ever in the hair

salons in Bartlett city.

Market size and trends

The market size is around ten thousand people as a target population in Bartlett city. The

main trends in the hair industry here is the usage of wigs more than natural hair. And people

shifting to using homemade styles and procedures for treating their hair. Other trends include

digitalization of booking appointments, use of eco-friendly hair products and observing corporate

social responsibility towards the community.

Chapter 4. THE COMPETITION

 Competition position

The major competitors of Queentex hair salon are: Vanity salon, Hair savy, Premier hair

studio, Styling castle, Take one salon, New you salon, Eclectic Mane and Pastille salon and spa.

All these salons are located in Bartlett therefore, Queentex is diversifying in the services offered

in order to pace with the competition. The competition is very high and it will require our salon a

lot of inventions in hair styling and treatments in order to remain competitive.

Market Share distribution

Due to the levels of competition Queentex is anticipated to have a 5% market share in

the salon industry at Bartlett city in the first year of its operations. There are so many and

established salons in the cities which are taking up to 90% of market share. The market share

will correlate into how the salon will be competing with other salons the market.

Global competition

There is also an aspect of global competition given that Queentex hair salon anticipates

giving the best hair services in the market. With so many innovations in the hair industry

Queentex is empowering itself with skills that match with the global competitions. Global

competition has also been enhanced through digitalization of operations and companies having

website and marketing software’s.

Future competition

The future and anticipated competition will be coming from the upcoming hair salon and

the commercialized digital hair products companies. Technological competition is also a future
concern since new appliances and techniques are daily been made in the hair industry. Queentex

is up with technology and we have the latest technologies in the hair industry.

Barriers to entry

Queentex hair salon is expected to be affected by several barriers to entry due to the

already existing hair salons and beauty shops. The barriers to entry will consist of: Economies of

scale, the existing firms have already used all the economies of scale existing salons in the

industry. High starting capital, the salon requires a lot of capital to start such as rent, purchase of

equipment and labor charges, Queentex hair salon have savings and they are expecting to borrow

from friends and family to start up. Lack of possession to raw materials, Queentex is depending

on already manufactured hair products since we do not have our own raw materials. Marketing

barriers, Queentex is expected to open an online platform to help in advertising since the cost of

advertising is so high for the new entrants. Pricing, the existing salons are setting extremely low

prices in order to discourage new firms from entering the hair industry.

Chapter 5. STRATEGIC POSITIONING AND RISK MANAGEMENT

Industry trends

The salon industry is rapidly growing and strategic positioning to such trends is very

crucial to a business. The industry trends are: salon digitalization, many salons have digitalized

their operations, likewise, Queentex hair salon have come up with a digital booking platform

where its clients can book for appointments without first coming to the salon. Salon after sales

services, many salons have extra services they give to their clients, Queentex hair salon has

incorporated giving massage after the hair session to their clients. The Eco-friendly salon,
Queentex is determined to ensure that the salon sells products which are environmentally

friendly, recyclable and hair product which can be reused. We have also planted trees and

flowers outside our premises. The social media salon, with the extensive use of social media

such as Instagram, twitter Facebook, tiktok and WhatsApp, Queentex hair salon have been

created accounts with the social media platform for accessibility and advertisement.

Target market

Queentex hair salon has been located strategically close to the target market in Bartlett

city. It is using billboard, posters and flyers to advertise its operations. Also through the digital

booking platform it has been connected to its target market.

Competitive environment

The environment is very competitive in Bartlett city due to the high number of salons

available. Queentex hair salon is facing the threat of substitute hair products, bargaining power

of supplier’s and clients. Queentex hair salon will be looking for substitute suppliers of quality

hair products who are charging relatively low prices for the same quality hair products. We will

also provide higher quality products and services to our clients than the existing salons.

Company strengths

Queentex has the advantage of talented and skilled owner, who has had experience on

hairdressing since I was a young girl. Another strength is that the salon is located strategically at

a location accessible to clients with ample parking amenities. Another strength is the ability of its

staff to work and offer door to door services more so during this covid 19 pandemic, the salon

has one of the most talented hair specialists in the market therefore giving us an upper end to
getting a greater market share. Another strength of the salon is the ability to give our clients

emerging and trendy hairstyles unlike other salons.

Company weakness

The main weakness of the salon it is that the salon is a new entrant and has not yet

established a good supplier base. We still don’t know how effective and efficient the hair product

suppliers are. Another weakness is that the startup capital is solely depended on one person. The

owner too does not have experience working with the new hairdressers.

Risk assessment

Queentex hair salon have done a risk assessment into the salon industry, the risks

associated with salons comprise of: Chemical reactions in hair dyes resulting to injury of clients,

Cuts resulting from shaving machines, slippery floors, blow-dry burns and dissatisfied client.

Queentex hair salon have taken a business insurance cover and all the three staff have been

trained on how to handle different types of products and clients. The following is the risk

assessment form done by the salon.

RISK LIKELIHOOD(1 CONSEQUENCES RISK ACTION

-5) RATING
1 Chemical 3 Injury to 42% Insurance
spillage employees and cover
clients
2 Cuts from 1 Injury to the clients 14% Employees
cutting to be more
razors careful
3 Dissatisfied 1 Reduction in !4% Customer
customers market share follow up
4 Slippery 2 Injury to the 28% Insurance
floors customers cover
Definition of a strategic position

A strategic position is a way in which a business packages itself in alignment

with its competitors in order to gain a competitive edge and advantage and ensure that its

clients gets value to their money. The salon is strategically located in a good

infrastructure area with ample parking for its clients. Its location also gives a competitive

advantage from the other competing salons. From the above discussions Queentex has

strategically positioned itself in the market.

Chapter 6. MARKETING PLAN AND SALES STRATEGY

Company´s Message

A company message places it in an arena where it can be captured by suppliers

and clients. Queentex hair salon will use the following Company’s message.

QUEENTEX HAIR SALON

WELCOME TO THE EXPERTISE YOU WILL

NEVER REGRET

RELAX AND ENJOY YOUR HAIR IS IN THE BEST HANDS

LOCATION: BARTLETT, TN 38134

CONTANT: queentex@gmail.com
 Marketing strategy

Queentex hair salon will be combining different marketing strategies which will comprise

of the following methods: Word of mouth advertising whereby I will advertise to my friends,

relatives, co-worker’s potential clients of the existence of the salon and the services it offers in

and out of college. printing of flyers and stickers, i will share printed flyers and stickers to my

friends, relatives and clients, referral method whereby I will encourage my existing clients to

refer their friends and family to my salon. Social media content creation, by creating

advertisements in our social media platforms such as WhatsApp, Facebook, tiktok, Instagram

and YouTube. The salon is also anticipating in creating bill boards advertisements in the present

future.

Marketing tactics
 Queentex hair salon will use the following marketing tactics: Commendation from

influential classmates to their platforms I already have friends who are willing to run an

advertisement for us in their blogs, References from current clients to their friends using their

social media platforms. The employees will also be encouraged to spread the news about the

salon to their friends and families. Good marketing tactics will lead to increased market share of

the salon.

Strategic partnership

A strategic partnership is a special mutual arrangement between two or more firms to

help each other with referral of customers. Queentex hair salon is having partnership with hair

products suppliers who have been in the market for a long period of time to refer their clients

who wants hairdressing services to us. A partnership between the salon and the neighboring nail

parlor for exchange of clients who need hair services to us and for us to refer clients who wants a

nail technician services. We have also entered in an agreement with other shops in the building

to contribute towards the hygiene of pavements and washrooms.

Online marketing tactics

Queentex hair line is operating its own social media platform advertisements in

Facebook, Instagram, tiktok, WhatsApp in order to connect with potential clients. We also have

influential friends and families running our adverts in their platforms. We have also created bulk

emails to our current potentials reminding them of our services and products and encouraging

them to refer to their friends and relatives.

Sales force and structure

 Queentex hair salon is using the sales force and structure by putting into cooperation the

following aspects: competitive policy, sales capacity, sales administration, sales enablement and

consumer commitment. Correct sales structure will enable the salon in meeting its expectations

and staying in the market. The salon will be having a competitive policy to benchmark with other

salons how they tally in the operations. Having sales projections every month will motivate the

employees to work extra smart and hard. Our employees are committed into ensuring customer

satisfaction and even offering services at the comfort of the clients.

Chapter 7. OPERATIONS

Plant and facilities

Queentex hair salon is located in Bartlett, Tn 38134 in 500-meter square property. Its

located on a rental apartment with rent payments accruing the beginning of every month.

Manufacturing/ production plan

Queentex hair salon will use a combination of production plan as follows: capacity

planning to determine what dimensions the salon can meet the varying demands and supply,

sales and operations planning to define and match the salons supply with prevailing demand.

Planning will make the salons operation to effective and efficient.

Labor requirements

Any hair salon requires to have well trained hair dressers and specialists/ Queentex has a

labor force of three hair specialist, well trained, gifted and with experience. They have all met

the labor requirements and they have the necessary attires for job such a uniform and shoes and
they have been trained on how to work and interact with different machines and chemical in the

salons and how to interact with the clients. Each time there is need for training and development

of the employee the salon takes the responsibility.

Capacity utilization

The salon space can accommodate up to five clients per session and all the equipment

have been provided. With digital bookings it is easy to control the number of clients per session

depending on the type of services they want.

Quality control

Queentex hair salon has put a lot of professionalism, effectiveness, consistency, customer

relations, integrity and sensitivity in ensuring quality control. Clients are served by a very

professional body of hair specialist, customers are well informed of the advantages and

disadvantages of using hair products. In Queentex we believe in quality over quantity. Quality

control is important in gaining customer satisfaction and also in avoiding legal suits from

supplying hazardous products. Quality control also builds a good image and goodwill from the

general public.

Equipment and furniture

Queentex hair salon will have a variety of equipment and furniture such as: combs and

brushes; wide-toothed comb, tail-end comb, two vent brushes, paddle brush, thermal brush, two-

tail comb, pitchfork, rake hair brushes and combs. Electronic grooming equipment; trimming

scissors, hair clippers, curling iron, hair straightener, curling comb hair dryer, barber scissors.

Hair styling tools; hair straighteners, blow dryers, diffusers, hair curlers, hot rollers, aprons,
mixing bowls, towels, water sprayers, rubber and plastic gloves. Furniture such as: hair styling

chairs, hair styling station (mirror, storage drawers, tools holders’ electric sockets) and waiting

chairs.

Inventory management

Inventory management is the act of ensuring that a firm has stock in order to avoid costs

relating to stock outs in the market. Queentex hair salon will use the Just in time technique to

manage its inventory since the suppliers of the hair products are closely located for slow moving

items like the weaves, wigs and braiding hair. Just in time technique is an inventory management

technique which means that goods are ordered just as they are needed. For the recurrent items

like shampoos, soaps and oils we shall be using the reorder point formula to always place order

once certain level has been reached. In reorder point formula the organization keeps a reorder

point which is usually higher than the buffer stock. We shall also use the demand forecasting

technique to forecast expected customer demands in order to prompt supply.

Supply and Distribution

We shall be receiving the supply of material such as shampoos, soaps, oils, perfumes and

hair products from the selected suppliers in our salon and distributing the same to our client once

they are demanded. We shall use door to door delivery distribution and also we shall distribute

from the salon.

Order fulfilment and Customer service

Order fulfilment is a basic and fundamental factor in customer service and satisfaction.

Due to the digitalized program the customers can place their orders and book appointments
directly without coming to the salon, likewise, the salon can pick orders and deliver services at

the doorstep of the clients. In ability to supply results will result to a bad customer relation.

Research and development

Queentex hair salon is in the forefront of ensuring that it is up to date with the changing

global trends in the hair industry through intensive research on customer changing needs and

consumption patterns, keeping up to date with internet by digitalization of their operations and

operating in an eco-friendly environment. The salon would also need to grow and develop,

therefore we shall conduct an intensive research on expansion with limited resources. Anyone

wishing to venture in our salon is rest assured of value for their money.

Financial control

Queentex hair salon is careful on its expenditure since they have a limited capital with

unlimited expenses. The forecast of financial obligations makes it easy on the salon to control

their finances and avoid buying unnecessary tools and equipment. We shall also ensure that our

services and products are not overpriced or underpriced.

Contingency planning

It is a plan B in case there is uncertainties in the industry. It is done by analyzing possible

uncertainties, the probability of happening, the impact they will have and how to prevent them.

Queentex hair salon have put in place a plan to change its operations and add another line of

beauty product in the future in case of any unforeseen events that might lead to losses beyond

control in the salon. Our contingency plan is to enter into nail business and selling of beauty

products in the beauty industry.

 Other operational concerns

The other operational concerns that the salon has taken into consideration include:

Monitoring performance of our products and services from our clients by taking surveys on

customer satisfaction in regards to performance of the hair products, managing costs of hair

products and other running expenses such as electricity, rent, insurance and miscellaneous, the

salon aims at maintaining a minimum cost in the salon. imitation risks of services offered and

products, with the use of digitalization, cybercrimes such as frauds and hacking of websites and

social platforms have been on the rise, the salon has put measures to protect its services from

being imitated and have put in place strong security on our website and social platforms.

Chapter 8. TECHNOLOGY PLAN

Technology goals and position

Queentex hair salon uses the modern technology equipment in its operations. In a fast

growing technology city the salon is doing extensive research on any technological changes and

how they can incorporate them to the salons operations. Our technological goal is to remain

competitive with other salons using the modern technology equipment.

Internet Goal and plan

We are currently using the digitalized appointment platform, where clients can directly

book for hair service appointment online. We are also using our social media platforms such as

Facebook, YouTube, Instagram and Tiktok to patronize our products and services to our clients.

Our internet goal is to increase our fan page and content creation about the salon.
 Software needs

We are in the process of creating our website, the salon has the need to have its own

software for customer management and inventory management. We also need a general saloon

software where we can follow all the operations of the salon. With raise in cybercrimes the salon

is planning on putting strong security passwords on its pages to protect and maintain privacy of

its clients.

Telecommunication needs

We shall be establishing a salon telephone where we shall be receiving and calling our

clients bring to their attention emerging hair styles, new products and seasons of discount. We

are also planning on installing work Wi-Fi both for the clients and the staff.

Technology Personnel Needs

The salon will be taking the responsibility to educate its staff and clients on the changing

technologies in relation to the services provided. Hair specialists will have the need to be trained

on how to use the digital platforms and how to use new equipment and tools. The hairdressers

will also be taught on how to approach and offer feedback to clients in the digitalized booking

flat form.

Chapter 9. MANAGEMENT AND ORGANIZATION

Key employees and principles.

Queentex hair salon is a sole proprietor business and it shall be led by me. I am a

continuing student in college with experience of beauty and hairdressing for a period of five
years. I will be giving directives and ensuring that all the other employees are paid. Queentex

hair salon will have three hair specialist with all of them having three years’ experience in the

hair industry. The employees will work as hairdressers in and out of the salon, advise experts to

the clients, marketing team of the salon, ensuring cleanliness in the premise and any other duties

as allocated. The salon has a principle of employing other hairdressers from the community once

we start expanding.

Compensation and incentives

The employees will work on a commission basis. For every client allocated to them they

will receive 50% of the income generated from the clients till the salon establishes its operations.

The employees are entitled to their sick leaves; any other leave will be unpaid. Employees will

be provided with uniforms and working shoes. Employees who do not follow the laid company

policy risks their compensations being reduced. The employees are entitled to loans depending

on the performance of the salon as per the given month.

Board of directors and advisory committee

Since the salon is a sole proprietor business the owner will be the director assisted by

family and the employees. Advisory committee will include my friends and family having

businesses in the same industry. All the employees have a right to advice on the products and

services we offer to our clients.

Consultants and specialists

Having a consultant will help the salon to keep ahead of changing tastes and preferences

in the hair industry as well as gaining knowledge on how to use different types of hair products.
The salon shall engage online consultants in order to know the best quality hair products in the

market at the moment. The employees will act as the specialists in the salon and they shall offer

ideas and advices on different hair styles and hair products.

Organizational chart

The salon has the basic chart since it’s a sole proprietor and the employees are few

experts. The following is the Queentex hair salon organizational chart.

Mrs. Burry Collins

(Owner-hair
specialist).

Ms. Catherine Mr. Joe bucker

Samar (braid specialist)
(Chief hair Mrs. Dorcas
dresser) Patel(Hairdresser)

The owner is the director and gives all the directives to the staff in the salon.
 Management style and corporate culture

Queentex hair salon will use the democratic management style when the director wants

to gain new insights from the employees point of view but the role of final decision will be made

by the owner. In times of hair styles to client the owner will us participative management style so

that both the client and the employee can ensure that their needs are met. We shall be using

horizontal corporate culture since all of us are hair specialists this means that titles do not have

any meaning in the salon and we treat each other in equal measures.

Chapter 10. COMMUNITY INVOLVEMENT AND SOCIAL RESPONSIBILITY

Social Responsibility goals

Social responsibility means that businesses have a duty to act in the best interest of the

community and location they are operating in (Abbas, 2020). It is the role of Queentex hair salon

to provide its clients with quality services and products. The demands of the clients must be met.

The salon has the responsibility to provide its client with the trending and emerging hairstyles in

the industry. The salon has a mandate to ensure the safety of its client and that they have met the

hygiene standards. Queentex hair salon should provide an avenue to change to its clients. The

salon is also undertaking training on different clients on the impacts and importance’s of

corporate social responsibility.

Company policy

The salon operates on the stipulated general work rules and regulations which includes

the following.
 QUEENTEX HAIR SALON COMPANY POLICY
The following is the company policy for Queentex hair salon and anyone violating
them stands a disciplinary hearing.
1. The salon is built on the grounds of providing the best quality in the hair
industry.
2. Transparency, honesty and integrity are key to the salon.
3. All material facts about hair chemicals and products should be disclosed
before using them on a client.

4. The salon discourages employees from Coming late to work without

permission
5. Destroying and stealing of salons tools and equipment by employees is a
crime
6. Gossiping clients by employees is not cordoned.
7. Refusing to adhere to clients tastes and preferences can cause one to be fired.
8. Giving wrong advices to clients in order to attract large sums of money
9. Fighting and abusing fellow employees or even clients shall be punished.
10. Coming to the salon while drunk or under the influence of alcohol and drugs
11. Failure to wear provided uniforms and shoes attracts a fine.
12. Using salons equipment for one’s benefits outside the salon.

Social Responsibility certifications

Organizations must be in line with social impact their business have on the society. A

firm should use a mature and appropriate manner of acquiring products, labor and services from

the community they are operating in. Bureau Veritas Certification aids in verification and

communicating your business to ethics and community sourcing. The salon has not yet applied

for social responsibility certification but its operating in a responsible and ethical manner.

Community involvement

Community determines whether a business will flourish or not. If the community has not

accepted your operations, it would be so difficult to succeed in such a community. Queentex hair

salon involves all the members of the community by giving hair products and services to all the

classes in the community. The employees of the salon have also been selected from the
community. The salon observes community guidelines and activities. The salon is also planning

to start helping in cleaning of the community they are operating in. The salon will be giving

seasonal gifts and discounts to the community as a way of showing gratitude for the coexistence.

Chapter 11. THE FINANCIALS

Income statements

The main importance of income statement projection is to know whether the firm will

make losses or generate income. the following is the income statement projection for the salon.

Queentex hair salon

Pro forma income statement

April 2021 to March 2022

AMOUNT(USD) AMOUNT(USD)
Net sales 50,000
Less: cost of goods sold 20,000
Gross income 30,000
Operating expenses: labor 3,000
Rent 6,300
Transportation 1000
Insurance 1,200
Advertising 2000
Electricity and lighting 1500
Interest on loan 1200
Total expenses 16,200
Net income before taxes 13,800
Less: income tax 7.75% 1035
Income after taxes 12,765

Queentex Hair salon

Pro forma income statement

 April 2022 to March 2023

AMOUNT(USD) AMOUNT(USD)
Net sales 55,000
Less: cost of goods sold 22,000
Gross income 33,000
Operating expenses: labor 3300
Rent 6300
Transportation 1100
Insurance 1,200
Advertising 2000
Interest on loan 1200
Electricity and lighting 1500
Total expenses 16,600
Net income before taxes 16,400
Less: income tax 7.75% 1230
Income after taxes 15,170

Queentex Hair salon

Pro forma income statement

April 2023 to March 2024

AMOUNT(USD) AMOUNT(USD)
Net sales 59,400
Less: cost of goods sold 23,760
Gross income 35,640
Operating expenses: labor 3564
Rent 6930
Transportation 1100
Insurance 1,200
Advertising 2000
Interest on loan 1200
Electricity and lighting 1500
Total expenses 17,494
Net income before taxes 18146
Less: income tax 7.75% 1,361
Income after taxes 16,785

Assumptions:
The sales increased by 10% in the second year and 8% in the third year

Rent was increased by 10% in the third year

Sales originated from hair services and sell of hair products in the whole year

Cost of goods sold includes all products, oils, soaps and perfumes used during the offering of the

services.

No salary was collected by the owner in that first year.

Cash flows projections: the cash flows are tabulated as follows

Queentex Hair Salon

Cash flow projections statement

April 2021 to March 2022

Ap M Ju Jul Aug Septe Octo Nove Dece Janu Febru Mar

ril ay ne y ust mber ber mber mber ary ary ch
Revenue 41 41 41 41 416 4167 4167 4167 4167 4167 4167 416
s 67 67 67 67 7 70
Cost of 16 16 16 16 160 1600 1600 1600 1600 1600 1600 160
goods 00 00 00 00 0 0
sold
Labor 25 25 25 25 250 250 250 250 250 250 250 250
0 0 0 0
Rent 52 52 52 52 525 525 525 525 525 525 525 525
5 5 5 5
transport 80 80 80 80 80 80 80 80 80 80 80 80
ation
Insuranc 10 10 10 10 100 100 100 100 100 100 100 100
e 0 0 0 0
Advertis 16 16 16 16 160 160 160 160 160 160 160 160
ing 0 0 0 0
Electrici 12 12 12 12 125 125 125 125 125 125 125 125
 ty and 5 5 5 5
lighting
Loan 10 10 10 10 100 100 100 100 100 100 100 100
interest 0 0 0 0
Total 12 12 12 12 122 1227 1227 1227 1227 1227 1227 122
cash 27 27 27 27 7 7
flow

Financial statement / balance sheet: The projections are as follows

Queentex Hair Salon

Pro forma Balance sheet

As at March 2022

Amount(Usd) Amount(Usd) Amount (Usd)

Non-current assets Cost Dep Total
Equipment 40000 4000 36000
Current assets
Cash at hand 600
Cash at bank 1400
Total cash 2000
Receivables 1000
Stock 10000
Total current assets 13000
Total Assets 49000
Current Liabilities
Accounts payable 1000
Long term liabilities
Loan 12000
Total liabilities 13000
Equity 36,000
Total liabilities and 49,000
equity

The financial projections for the business in the coming years will be affected by the real time

results and performance of the business in this first year

Sources and use of funds

 Queentex hair salon will majorly derive its sources from the owner through savings,

borrowing from friends, contributions from family and sale of household items to raise capital,

the owners’ contribution capital adds up to 36,000 dollars. The owner has also applied for a loan

of 12, 000 dollars from a commercial bank with an interest rate of 10 %p.a. The anticipated

capital sums up to 48,000 dollars. The capital is allocated to be used as follows:

Equipment =$25,000

Rent and two months Deposit=$1,575

Setting up of the salon= $15,000

Hair products (oils, perfumes, hairs, soaps, shampoos)= $6,425

Break even analysis: Queentex Hair salon will use the following analysis to break even

BEP= Fixed costs/contribution margin

Contribution margin=selling price per unit-variable cost per unit

Variable costs from the Income statements= 20,000/12=1,667

Fixed costs from the income statement=16,200

Selling price from the income statement=50000/12=4167

Contribution margin=4167-1667=2,500

BEP=16200/2500= 6.48 months

Reference

Abbas, J. (2020). Impact of total quality management on corporate green performance through

the mediating role of corporate social responsibility. Journal of Cleaner Production, 242,

118458.