SHARON CHEBET

HB100/G/5550/18

HAIR AND BEAUTY SALON: TREND SALON AND BEAUTY

Executive Summary

Introduction

Trend Salon and Beauty 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.

The timing is right for starting this new venture. Patiently searching for six months for

the perfect location, one was finally found. The demand from the owner's clients, as well as

the ambitions of the owner to one day start her own salon, and the procurement of highly

professional and qualified beauticians to support the salon, has made this business one of

great potential.

To achieve our objectives, Trend Salon and Beauty is seeking additional loan

financing. This loan will be paid from the cash flow from the business, and will be

collateralized by the assets of the company, and backed by the character, experience, and

personal guarantees of the owners.

1.0: Business description

1.1 The sponsor

Trend Salon and Beauty will, upon commencement of operations, sell a wide range of

beauty services and products. We will provide quality hair, nail, and skin services, along with

top lines of beauty products. What will set Trend Setters apart from the competition is our

commitment to providing all of these services in one convenient location. The salon will be

located in a retail strip mall at 1234 Thika Road, Nairobi. The salon will utilize 1,540 square

feet. The location is strategically situated on one of the busiest streets in Nairobi. It is a high

profile area, with easy access from all parts of town.

1.2 The business

What will set Trend Salon and Beauty apart from the competition is our commitment

to providing all of these services in one convenient location. The salon will be located in a

retail strip mall at 1234 Thika Road, Nairobi. The salon will utilize 1,540 square feet. The

location is strategically situated on one of the busiest streets in Nairobi. It is a high profile

area, with easy access from all parts of town.

1.3 The industry

Trend Salon and Beauty is a personal care service. This industry primarily offer hair-

care services such as haircutting, hair coloring, hairstyling, nail and skin services, along with

top lines of beauty products.

Trend Salon and Beauty is considered an upscale full-service beauty salon. We will

offer a wide range of services that include: Hair (Cuts, relaxers, perms, colors, shampoo,

conditioning, curling, reconstructing, weaving and waving). Nails (Manicures, pedicures,

polish and sculptured nails). Skin care (European facials, body waxing and massage).

1.5 Entry & Growth Strategy

Trend Salon and Beauty wants to set itself apart from other beauty salons that may

offer only one or two types of services. Having come from such a salon, Kurley has realized,

from talking with her clients, that they desire all of the services that we are proposing, but

they remain frustrated because they must get their hair done at one place, and nails done at

another. Although the focus of Trend Salon and Beauty is hair services, we do wish to offer

our clients the convenience of these other services in one location.

CHAPTER TWO

2.0 Marketing Plan

2.1 Customers

Customers will include both gender target eco-conscious, unmarried, college-educated

women and men, primary, secondary students who are between the ages of 3-60 years.

2.2 Competitors

There are a number of salons like ours, but they are mainly in the very high income

parts of Nairobi and surrounding areas. We do not intend to compete with these so called
"Day Spas." We wish to offer a middle ground for those clients who can't quite afford those

high-end luxury salons.

2.3 Pricing strategy

We will also ask clients for referrals, and reward them with discounted or free services
depending on the number of clients they bring. We will also offer discounts to the new clients
who have been referred.

2.4 Sales strategies

Our sales strategy is a simple one: satisfied customers are our best marketing tool.

When a customer leaves our business with a new look, he or she is broadcasting our name and

quality to the public. Most of our customers will be referrals from existing clients.

2.5 Advertisements and promotion strategy

No major advertising campaigns are anticipated. Our research has shown that word of

mouth is the best advertising for this type of business. We will, however, run specials

throughout the week. We will also ask clients for referrals, and reward them with discounted

or free services depending on the number of clients they bring. We will also offer discounts to

the new clients who have been referred. There are plans for a lottery that will offer a free trip

to, say, Cancun. A client would simply refer new clients to us, and we will place a card in a

box for each client he or she brings. The more they bring, the more chances they have of

winning the trip.

2.6 Distribution strategy

The distribution strategy of Trend Salon and Beauty is divided into two different

categories: Selling your cosmetics to hair care professionals (hairdressers, independent hair
salons, and hair salon chains) which guarantees a certain quality and reputation and selling to

retailers offers more visibility and allows you to reach a larger number of customers.

CHAPTER THREE

3.0 Organization Plan

3.1 Organization

Trend Setters will be organized and managed in a creative and innovative fashion to

generate very high levels of customer satisfaction, and to create a working climate conducive

to a high degree of personal development and economic satisfaction for employees. Training

classes to help improve employee product knowledge and skills will be conducted on a

regular basis. As the business grows, the company will consider offering an employee benefit

package to include health and vacation benefits for everyone.

3.2 Key Management Personnel

The personnel plan calls for a receptionist who will greet customers and receive

payments for services and products. There will be five hair stylists, one barber, one nail

technician, one facialist, and a massage therapist. Everyone but the receptionist will be

contract workers, and will be paid a sliding commission scale based on the amount of revenue

created. Future plans include the hiring of a shampoo technician as the business expands.

CHAPTER 4

4.0 Operational or Production Plan

Our business atmosphere will be a relaxing one where clients can kick back and be

pampered. Soft drinks will be offered to clients as they enter for service. Televisions will be

located in the waiting and hair-drying area. Customers visit salons to receive a service, but

along with that pedicure, haircut or dye job.

4.2 Production/Operational Facilities

Trend Salon and Beauty will have these types of equipment: salon facial machines,

beauty beds, hair steamers, trolleys, beauty salon chair, hair stylist tools, electric massage

beds and any other required tool.

CHAPTER FIVE

5.0 Break-Even Level

The break-even analysis shows that Trend Salon and Beauty has a good balance of

fixed costs and sufficient sales strength to remain healthy. This calculation is focused on

service sales, and excludes costs related to product sales. Our conservative forecast shows the

salon just passing the break-even point throughout most of the first year, but we expect actual

sales to be higher.