Comprehensive Business Plan for Prince Klin Hair Salon: Project Report

This business plan outlines the strategy for Prince Klin Hair Salon, a full-service men's grooming establishment in Owerri, Imo State. It includes an executive summary detailing financial needs and loan terms, followed by an introduction emphasizing customer satisfaction and a gentlemen's atmosphere. The plan covers ownership, location, aims, and objectives, along with a comprehensive list of required materials and services offered. It analyzes the target market, competitive advantages, and a SWOT analysis. The marketing strategy focuses on referrals and special promotions. The operational section describes work hours and sales methodology, supported by detailed sales forecasts and personnel plans. Finally, the plan outlines the legal framework and business environment for the salon's operation.

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BUSINESS PLAN
FOR
HAIR STYLING
SALON

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EXECUTIVE SUMMARY
Name of Enterprise: Prince Klin Hair Saloon
Location of enterprise: 10 Douglas Road, Owerri, Imo State.
Total Required Money: N995,000
Owners contribution: N700,000 (60%)
Loan request: N295,000 (40%)
Proposed loan terms:
The loan shall be repaid under a year and six months. And also, the moratorium for the loan shall
be five (5) months.
Recommendation:
The loan and its terms applied above will help with start-up cost and smooth out delays between
expenditure and income as it will be initially difficult to negotiate credit term with lessor.
INTRODUCTION
The enterprise will be a full service provider business entity dedicated to providing high customer
satisfaction by rendering excellent service, quickly products and furnishing an enjoyable
atmosphere at an acceptable price/value relationship.
Every average citizen desires to be the best in outlook, Prince Klin Hair Saloon becomes an upscale
trendy world gentleman’s barber shop that offers today’s classic gentlemen a haven where he can
sit back, relax and experience the “peachy keen” art of grooming and service in a classical world
of gentlemen atmosphere.
OWNERSHIP/MANAGEMENT
Eleribe Uchenna Prince is a grounded innovator and has a lot of experience in the field of salon
services for 8years. Having wanted to enlarge the coast/horizon of his sole proprietorship business,
he decided to co-partner with Chinedu Obinna to pool both their knowledge and financial resources
together.
Chinedu Obinna on the other hand is a trained personality in the field of resources personnel
coupled with her physical and inherent abilities to services, he will co-partner with CeeJee to serve

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at the showcase outlet services where customers purchase their “after service needs” for self
satisfaction.
LOCATION AND ACCESSIBILITY
The enterprise is located at a strategic position along the Douglas Road for easier accessibility by
its customers and also where the business is clenched to its useful facilities for the upkeep and
smooth running of the business.
AIMS/OBJECTIVES OF THE BUSINESS
Our aim, beyond becoming a profitable business, will be a trusted destination where clients in the
state come, refresh their minds on their outlook and be the best they can be in outlook. Through
this, the mission will be accomplished which is
Mission: creating a serene and stimulating atmosphere where customers relax their body and mind.
Our vision: being the world class philanthropic business enterprise
Our motto: Be good, feel good, look good (3G dimension)
MATERIALS FOR THE ESTABLISHMENT OF THE SALOON
The following are some of the materials/equipment/tools needed for the smooth running of hair
saloon:
i) Dryer
ii) Hand dryer
iii) Flatonging machine/hot comb
iv) Wash hand basin/containers
v) Mirror
vi) Clippers
vii) Chairs and table
viii) Combs, Scissors/Brush
ix) Towels/hander
x) Cream/hair treatments and boosters
xi) Fan and air conditioner
xii) Television and magazines

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xiii) Generators
xiv) Heater/store/gas
xv) Shampoo/conditioner/relaxers, attachments, weavons of all kinds
xvi) Powder
xvii) Show glass for display
PRODUCT AND SERVICES
Services
Prince Klin Hair Saloon is considered an upscale full services enterprise that reaches the
expectation of its customers through provision of the following;
 A serene and stimulating environment for relaxation.
 Skillful competent and experienced workers for gainful desired services.
Various services and their prices
S/NO. NAME OF SERVICE(S) AMOUNT
1 Fades 350-1,000
2 Undercut/low cuts 300
3 Medium cuts 250
4 Dyeing 500
5 Shaving 100
6 Other services
Products
Showcase outlet services and products such as: stubble soft shave, razor glide, shave cream,
manual shaving machine, post shave balance balm, men undies etc from renowned reputable
company, which are at an affordable prices.

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MARKET AND CLIENTS
Skill and implementation strategy
Our USP (unique selling proposition) which is our perspective of strategizing is being skillful at
what we do. Good customer service, and creating a pleasant environment for our customers will
be very crucial to implementing our business plan.
Customers
We have tried to envisage a situation where all and sundry that desire to look good to his best taste
or preference be satisfied. This entails the students and workers at the institution that is few
kilometer from the location of the enterprise, working class personnel in the town where the
enterprise is located, the travelers who stops by at the mart for some hours during a long journey
and as well for families living around who desire the best for their male family members. The
enterprise customers are expected to grow by 10% per annum.
Competitive Edge
There are other few number of salon around but they are located at the outskirt of town where it is
inaccessible to clients. More also, some of the enterprise existing before, happens to be a ‘unisex
saloon’ thereby not concentrating intently on the other cure vital services desired by men before
and after ‘service transactions’. Most importantly, most men in the business locality are reputable
workers in institutions and government parastals and therefore desire not to associate themselves
in the salon where ladies do their luxury ungrounded services. These men request to be given their
own services in a grounded atmosphere in order not to jeopardize their reputation by being attended
to in the same room with mere ladies who are their subjects.
Our business atmosphere will be a relaxing one where clients are highly attended to and pampered.
Free chilled can water will be served at the waiting room opposite to the services room with glass
door, air condition as they enter for service. Television and audio sets will be located in the waiting
room with well selected relaxed music and comedies for energizing the mind and body after and
during the day’s activities.
Also, needful products are displayed at the showcase room adjacent to the waiting room where
clients can purchase products needful for their after service upkeep at home. Most clients are

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working class and have no time to go after these products they need to have for their ‘self service’
at home. Therefore, the enterprise through this medium reaches the expected needs of their clients.
SWOT ANALYSIS
 Strength:
We are for humanitarian services. We will have personalized services. Emphasis is laid on quality
of services and concentration on a niche market allows a potential high mark up. We have excellent
premises and new equipment, flexibility with employees and low running cost.
The employment of part-time workers will allow us to adjust to more enlarge services and output
in short term as required.
 Weakness:
A 30 – day credit services required on our products will be necessary to gain clients, but cash
purchase of equipments, machines and leasing charges means that the business needs external
finance in the early stages. This may reduce our daily working target and also meeting up with the
projected returns per annum.
 Opportunities:
According to our field survey and statistics collected, there will be influx of population into the
locality where the enterprise is based due to the establishment of tertiary5 institutions and
government set-ups around, due to this nature of set-ups, the population invariable will be more or
men of high caliber. Demand for our services therefore is expected to rise. Only one existing
service of this nature can be obtained but at an outskirt of the town and no personalized services
are available.
The premises and strategic position will allow for further expansion and possible outdoor
recreation centre. There is always demand among our worker-clients and students in the vicinity
for skillful entrepreneur worker experience placements on holiday work in this type of operation.
 Threats:
The strategic position may be taken over by the government for erection of structure or high tax
imposition due to the excellent nature of the place, marketing is the grounded experienced worker
of the enterprise and may be travelling overseas for workshop presentations due to the bodies he

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is associated with. Competitors may enter the market because of the fast growing nature of the
environment.
MARKETING STRATEGY
The enterprise marketing strategy is a simple one satisfied clients are at best marketing tool. When
a client leaves our business premises with a new look, he is broadcasting our name and quality to
the public.
Most of our clients will be referrals from existing clients. The only physical advertising will be the
small few pages leaflets consisting of styles made by the business workers which is being given to
each customer as he leaves the premises.
No major advertising campaigns are anticipated except for the wall posters for our new prospective
customers. Our research has shown that word of mouth is the best advertising medium for this type
of business.
We will however, run specials throughout the month, and also ask clients for referral and reward
them with discounted or free services depending on the number of clients they bring. There will
be plans for lottery to offer free trip to Canada for new exhibition workshops that will be offered
for specific range o time say 2 months for a client with maximum number of referrals say 25
persons.
BUSINESS OPERATIONS AND ORGANIZATION
DURATION OF WORK TIME
The business will run daily at early hours of the day for those who may wish to shave up to look
good before going to work and throughout the day and even far into the night for those who wants
services after their day’s activities.
MARKETING/SELLING METHODOLOGY
The enterprise is at a strategic position along the major metro highway road and also located just
close to the mall where travellers stop-by for relaxation during a long journey. The constant
attention driven music and steady power with serene environment creates an attractive haven for
all who passes or stops by thereby making them desire our services even if when they do not budget
for it.

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SALES FORECAST
The following tables show projected sales. We expect income to increase steadily over the next
three (3) years, as the reputation of the salon, its workers become apparent to the general public.
Second year revenue also anticipate for the addition of a new partner.
Note: That we list no direct cost of sales here for our services, only for products, since our service
costs re more accurately tracked as regular monthly expenses for supplies in the profit and loss
table.
Sales monthly (N)
S/NO. Name of Service(s) Services
monthly (No.
of persons
patronizing
on monthly
basis)
Cumulative units
(N)
Earnings
(N)
1 Fades
Under cuts
Medium cuts
Dyeing
Shaving
Total
200
230
200
100
300
400
300
250
300
150
80,000
69,000
50,000
30,000
45,000
274,000
2 Income made from
Shampoo/conditioner/relaxers,
attachments, weavons of all
kinds
- - 800,000
3 Income from sales of drinks - - 150,000
4 Income from training of
trainees
- - 250,000
Total Income - - 1,474,000

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MANAGEMENT/HUMAN RESOURCES
Management
Prince Klin Hair Saloon will be organized and managed in a creative and innovative trend to
generate very high levels of customers’ 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 enterprise will consider offering benefits package to include health and
vacation benefits for employers.
Salaries
The personnel plan calls for a receptions that will greet customers and receive payments for
services and products. There will be five (5) workers, one technician. Everyone both 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 comedians as the business expands.
Personnel plan Year 1 (N) Year 2 (N) Year 3 (N)
Receptionist 20,000 25,000 30,000
Barber 1 20,000 25,000 30,000
Barber 2 20,000 25,000 30,000
Stylist 1 20,000 25,000 30,000
Stylist 2 20,000 25,000 30,000
Total people 5 5 5
Total payroll 100,000 125,000 150, 000
LEGAL FRAMEWORK/BUSINESS ENVIRONMENT
Legal Framework
The enterprise will be fully registered under the CAC-Corporate Affairs Commission which will
give it full access as a legal entity to operate and run on its own. It will also be recognized under
the legal authoruities of the state to avoid unwarranted confrontations by unrecognized bodies.
Business Environment
The business shall operate in recognition of its following environments.

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Internal Environment
This consists of the controllable factors inherent in the enterprise which consist of our weakness
and strengths as shown in our SWOT analysis.
Micro (External) Environment
This takes care of our immediate external uncontrollable factors which include our suppliers,
customers, competitors etc.
Macro (External) Environment
This is our larger uncontrollable external factors which influences the enterprises operations and
regulations. They include our political system, legal environment, technological environment etc.
FINANCIAL PLAN
Assumptions
The start-up financial plan will be used not only as initial plan but as a working document to
facilitate monitoring of actual progress. The vital conception of increase in cash flow spurs to the
fact of initiating, maintaining and improving the factors that create, stabilize and increase over
cashflow, and it encompasses the following:
1) We must create visibility so as to create customer flow
2) We must maintain a dependable, cheerful employers’ force so as to maximize turnover
3) Create fast-making trendy turn-around on over retail products, always maintain viable
stock levels.
General financial assumptions
Yr 1 Yr 2 Yr 3
Plan month 1 2 3
Current interest rate 10.00% 10.00% 10.00%
Long term interest 9.5% 9.5% 9.5%
Tax rate 15% 15% 15%

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BREAK-EVEN ANALYSIS
We assume monthly estimated operational costs which include payroll, rent, utilities and other
running costs. Payroll is only estimated we need to generate monthly revenues which its major
source should come from a barber’s client average per day, N2580 to reach the general expectation
(see appendix 1).
Projected Profit And Loss
There are two important assumptions with our projected profit and loss statement:
a) Our revenue is based on minimum estimated averages against highest expense
expectations.
b) Our major expense of rent and utilities is fixed for the next five years (see appendices)
PROJECTED CASH FLOW ANALYSIS
Our business is luxury, retail oriented business with clients who will pay primarily with cash.
Therefore, more accruals as the year advances is prominent (see above tables and appendices)
PROJECTED BALANCE SHEET
In the projected balance sheet of the Prince Klin Hair Saloon enterprise. It shows that the enterprise
will not have any difficulty meeting its debt obligations as long as our revenue projections are met
(See above tables and appendices).
Conclusion
Since the business was targeted to start operation at the rate of N995,000 and the income project
is 1,474,000. The business is said to be profitable considering the balance at hand.

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APPENDIX 1
FIXED ASSETS
S/N Items Quantity Value N(000)
1 Buildings/structure 1 350
2 Plant 3 650
3 Machineries 2 520
4 Furniture’s and
fixtures
Assorted 630
5 Appetences 3 50
Subtotal 2200
Working capital
Labour 50
Utilities 38
Grand total 2288
APPENDIX 2
Break-even analysis
(N)
Monthly revenue 77,5000
Assumptions:
Average percent variable cost 40%
Estimated monthly fixed cost 15,973.15K

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APPENDIX 3
PRO FORMS PROFIT AND LOSS
Yr 1 (N000) Yr 2 (N000) Yr 3 (N000)
Sales 292,250 419,200 487,930
Direct cost of sales 30 32 52
Other cost of goods 2 5 18
Total cost of goods 292,282 419,237 488,000
Gross margin 35 42 66
Gross margin % 38 52% 75%
Expenses 50 35 22
Personal plan:
Payroll 50 57 69
Sales and marketing (other
xps.)
35 20 10
Utilities (included in exps.
Above)
Total operating expenses 22 15 10
Taxes incurred 10 12 8
Net profit 202,325 420,000 502,395
Net profit/sales 15.2% 16% 17.3%

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APPENDIX 4
PRO-FORMS CASH FLOW
Yr 1 (N000) Yr 2 (N000) Yr 3(N000)
Cash received 50 - 35
Cash from operators 5 10 22
Cash sales 22 25 30
Sub-total cash from
operators
77 35 87
APPENDIX 5
PERFORMANCE BALANCE SHEET’
Yr 1 (N000) Yr 2 (N000) Yr. 3 (N000)
ASSETS
Current assets 60 75 80-
Cash 50 66 58
Inventory 35 40 58
Other current assets 20 26 44
Sub total assets 165 207
LIABILITIES AND CAPITALS
Yr (N000) Yr 2 (N000) Yr 3 (N000)
Current liabilities 40 32 15
Current borrowing - - -
Other current liabilities 15 5 5
Sub-total 55 37 20
Total liabilities/capital 40 33 20
Net worth 150 550 650