8/8/2019 chuhiya

1/36

Face lookFace look

hair & skin beautyhair & skin beauty

saloonsaloon

8/8/2019 chuhiya

2/36

CERTIFICATE OF APPROVAL:-CERTIFICATE OF APPROVAL:-

This project titled face look is hereby approved as a Credible study of businessThis project titled face look is hereby approved as a Credible study of business

management carried out by Monika Sharma (7BBA/4068/08) student of BBA 5management carried out by Monika Sharma (7BBA/4068/08) student of BBA 5 thth

semester in satisfactory manner to warrant its acceptance as a pre-requisite to thesemester in satisfactory manner to warrant its acceptance as a pre-requisite to the

degree of bachelor of business administration for which it has been submitted.degree of bachelor of business administration for which it has been submitted.

SUMIT KULSHRESTHASUMIT KULSHRESTHA

(Faculty in management)(Faculty in management)

8/8/2019 chuhiya

3/36

CERTIFICATE OF GUIDANCE:-CERTIFICATE OF GUIDANCE:-

This is to certify that Monika Sharma (7BBA/4068/08) is a student of BBA 5This is to certify that Monika Sharma (7BBA/4068/08) is a student of BBA 5 thth semestersemester

has made project under my guidance.has made project under my guidance.

This project is bonafide work of student and has not been submitted elsewhere for theThis project is bonafide work of student and has not been submitted elsewhere for the

award of any other degree.award of any other degree.

SUMIT KULSHRESTHASUMIT KULSHRESTHA

(Faculty in management)(Faculty in management)

8/8/2019 chuhiya

4/36

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I take this opportunity to thank the management department of BIT jaipur for giving

me this opportunity to do this project.

I wish to express my gratitude and indebtness to our faculty member Mr..Sumit

Kulshretha who acted as a guide for us. It is because of his true and sincere efforts, which

helped us to complete the report on time. His continuous guidance, inspiration and

motivation helped us in every field while making the project report.

MONIKA SHARMA

(7BBA/4068/08)

8/8/2019 chuhiya

5/36

Preface:-

Humans have been very aware of their appearance frombeginning of the civilization. The

external beauty is very important for many. If you do not like the way you look now you

can change your look. In ancient times people used to use different things to beautify

themselves. Now the tools have changed but the desire to look beautiful is still the same.

The desire to look beautiful is responsible for beauty parlors or salons. A beauty parlor or

salon is a business that deals with the beauty treatment for men and women. In the beauty

parlor your face and body gets treatment or pampering.

Since ancient times men and women are experimenting with their looks. The hair styles

have seen major change over the years. In the ancient civilizations there was distinct

difference in the hair styling of Egypt men and women, The Greek women sported their

hair differently Romans followed the lead. The East had different styles.

In the 16th century Queen Elizabeth was a female icon. In those days her lily white

complexion and red hair was copied by women. The white powder that was used was

highly poisonous white lead and the glow on the cheeks was a result of lead based rough.

A thin layer of egg white was used to bind it together.

Since then the beauty business has come a long way. The beauty parlors use safer

cosmetic products and give many more treatments for the entire body .

8/8/2019 chuhiya

6/36

INDEX:-INDEX:-

S.NOS.NO PARTICULARSPARTICULARS PAGE.NOPAGE.NO

11 TITLE PAGETITLE PAGE

22 CERTIFICATE OF APPROVALCERTIFICATE OF APPROVAL

33 CERTIFICATE OF GUIDANCECERTIFICATE OF GUIDANCE

44 ACKNOWLEDGEMENTACKNOWLEDGEMENT

55 PREFACEPREFACE

66 EXECUTIVE SUMMARYEXECUTIVE SUMMARY

77 ENTREPRENEUR PLANENTREPRENEUR PLAN

88 MARKETING PLANMARKETING PLAN

99 FINANCIAL PLANFINANCIAL PLAN

8/8/2019 chuhiya

7/36

Executive SummaryExecutive Summary

Face look is a full-service beauty salon dedicated to consistently providing high customerFace look is a full-service beauty salon dedicated to consistently providing high customer

satisfaction by rendering excellent service, quality products, and furnishing an enjoyablesatisfaction by rendering excellent service, quality products, and furnishing an enjoyable

atmosphere at an acceptable price/value relationship. We will also maintain a friendly,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.fair, and creative work environment, which respects diversity, ideas, and hard work. NewNew

look is type of a hair salon that allows the entire family to have their hair needs satisfiedlook is type of a hair salon that allows the entire family to have their hair needs satisfied

in one convenient visit.in one convenient visit. Face look is salon that satisfies the unfulfilled customer neededFace look is salon that satisfies the unfulfilled customer needed

for a low-cost salon that provides maximum flexibility and strong customer attention.for a low-cost salon that provides maximum flexibility and strong customer attention.

Using this strategy, I will gain significant market share and create critical long-termUsing this strategy, I will gain significant market share and create critical long-term

relationships with clients.relationships with clients.

ObjectivesObjectives

The objectives for the first three years of operation include:The objectives for the first three years of operation include:

1.1. To create a service-based company whose goal is to exceed customer'sTo create a service-based company whose goal is to exceed customer's

expectations.expectations.

2.2. To increase the number of clients served by at least 20% per year through superiorTo increase the number of clients served by at least 20% per year through superior

performance and word-of-mouth referrals.performance and word-of-mouth referrals.

3.3. To develop a sustainable start-up business, contributing to increased employmentTo develop a sustainable start-up business, contributing to increased employment

of community residents.of community residents.

8/8/2019 chuhiya

8/36

8/8/2019 chuhiya

9/36

Mission & vision:-Mission & vision:-

Our Mission:-Our Mission:-

Face looks mission is to provide reasonably priced, convenient hair styling. We exist toFace looks mission is to provide reasonably priced, convenient hair styling. We exist to

attract and maintain customers. When we adhere to this maxim, everything else will fallattract and maintain customers. When we adhere to this maxim, everything else will fall

into place. Our services will exceed the expectations of our customers andinto place. Our services will exceed the expectations of our customers and to supplyto supply

services and products that enhanceservices and products that enhanceour clients' physical appearance and mental relaxationour clients' physical appearance and mental relaxation

Our vision:-Our vision:-

"The Trend Begins Here!""The Trend Begins Here!"

8/8/2019 chuhiya

10/36

8/8/2019 chuhiya

11/36

MANICURE & PADICUREMANICURE & PADICURE

8/8/2019 chuhiya

12/36

8/8/2019 chuhiya

13/36

8/8/2019 chuhiya

14/36

Fact sheet:-Fact sheet:-

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

the perfect location, one was finally found. As a new entrepreneur I have to work a lot tothe perfect location, one was finally found. As a new entrepreneur I have to work a lot to

find a perfect location. The demand from the owner's clients, and the procurement offind a perfect location. The demand from the owner's clients, and the procurement of

highly professional and qualified beauticians to support the salon, has made this businesshighly professional and qualified beauticians to support the salon, has made this business

one of great potential.one of great potential.

The talented team of beauticians is what it takes to make this venture an extremelyThe talented team of beauticians is what it takes to make this venture an extremely

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

to support our anticipated growth.to support our anticipated growth.

To achieve our objective Face look will arrange finance from its personal capital. meTo achieve our objective Face look will arrange finance from its personal capital. me

Monika Sharma will take some capital from my father and the rest will be on loan. ThisMonika Sharma will take some capital from my father and the rest will be on loan. This

loan will be paid from the cash flow from the business, and will be collateralized by theloan 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 guaranteesassets of the company, and backed by the character, experience, and personal guarantees

of the owners.of the owners.

Keys to Success:-Keys to Success:-

The keys to success in our business are:The keys to success in our business are:

Location: providing an easily accessible location for customers.Location: providing an easily accessible location for customers.

Environment: providing an environment conducive to giving relaxing andEnvironment: providing an environment conducive to giving relaxing and

professional service.professional service.

Convenience: offering clients a wide range of services in one setting, andConvenience: offering clients a wide range of services in one setting, and

extended business hours.extended business hours. Reputation: reputation of the owner and other "beauticians" as providingReputation: reputation of the owner and other "beauticians" as providing

8/8/2019 chuhiya

15/36

Entrepreneur plan:-Entrepreneur plan:-

EntrepreneurEntrepreneur description:-description:-

Face lookFace lookwill, upon commencement of operations, sell a wide range of beauty serviceswill, upon commencement of operations, sell a wide range of beauty services

and products. We will provide quality hair, nail, and skin services, for ladies as well asand products. We will provide quality hair, nail, and skin services, for ladies as well as

children along with top lines of beauty products. What will set face look apart from thechildren along with top lines of beauty products. What will set face look apart from the

competition is our commitment to providing all of these services in one convenientcompetition is our commitment to providing all of these services in one convenient

location and at a reasonable price which can b afforded by most of the ladies as well aslocation and at a reasonable price which can b afforded by most of the ladies as well as

college girls. Face look is basically looking for setting a boys parlor as well which willcollege girls. Face look is basically looking for setting a boys parlor as well which will

help face look to expand its work in the short span of time.help face look to expand its work in the short span of time.

The salon will be located in a area known as jagathpura where there no such type ofThe salon will be located in a area known as jagathpura where there no such type of

parlor, mainly most of the ladies will b the main target. It is a area which is on parlor, mainly most of the ladies will b the main target. It is a area which is on

construction many new factories, houses, schools are under construction these days theconstruction many new factories, houses, schools are under construction these days the

area is on the developing stage.area is on the developing stage.

Start-up SummaryStart-up Summary

After spending two months searching for a place to set up my saloon decided to start aAfter spending two months searching for a place to set up my saloon decided to start a

salon from the ground up. The start-up capital will be used for the design, leaseholdsalon from the ground up. The start-up capital will be used for the design, leasehold

improvements, and equipment of the salon.improvements, and equipment of the salon.

Leasehold improvements will amount to approximately Rs.5000 as this is not a posh areaLeasehold improvements will amount to approximately Rs.5000 as this is not a posh area

and in the jagathpura area I easily found a low cost place to set up my saloon, and salonand in the jagathpura area I easily found a low cost place to set up my saloon, and salon

equipment will cost about 10 lakh which will include the interior, furniture, and theequipment will cost about 10 lakh which will include the interior, furniture, and the

machines.machines.

8/8/2019 chuhiya

16/36

expenditure

assets

inv

loan

0

10000

20000

30000

40000

50000

60000

amount

expenditure inv

category

start up

Start-up

Requirements

Start-up Expenses

Rent deposit 5000

Other 0

Total Start-up Expenses 5000

Start-up Assets

Cash Required 5000

Other Current Assets 600

Long-term Assets 59,500

8/8/2019 chuhiya

17/36

Total Assets 60,600

Total Requirements 62,417

Start-up Funding

Start-up Expenses to Fund 5000

Start-up Assets to Fund 60,6000

Total Funding Required 62,4170

Assets

Non-cash Assets from Start-up 60,1000

Cash Requirements from Start-up 50000

Additional Cash Raised 0

Cash Balance on Starting Date 5000

Total Assets 60,6000

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 61,9170

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

Total Liabilities 61,9170

Capital

Planned Investment

8/8/2019 chuhiya

18/36

Owner 50000

Investor 0

Additional Investment Requirement 0

Total Planned Investment 50000

Loss at Start-up (Start-up Expenses) (50000)

Total Capital (53570)

Total Capital and Liabilities 60,6000

Total Funding 62,4170

8/8/2019 chuhiya

19/36

OrganisationOrganisation

Hair & Beauty SalonHair & Beauty Salon will be organized and managed in a creative and innovativewill be organized and managed in a creative and innovative

fashion to generate very high levels of customer satisfaction, and to create a workingfashion to generate very high levels of customer satisfaction, and to create a working

climate conducive to a high degree of personal development and economic satisfactionclimate conducive to a high degree of personal development and economic satisfactionfor employees.for employees.

Training classes to help improve employee product knowledge and skills will beTraining classes to help improve employee product knowledge and skills will be

conducted on a regular basis. As the business grows, the company will consider offeringconducted 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.an employee benefit package to include health and vacation benefits for everyone.

IN THE NEXT 3 T0 4 YEARS HOW I WILL EXPAND MY BUSINESSIN THE NEXT 3 T0 4 YEARS HOW I WILL EXPAND MY BUSINESS

8/8/2019 chuhiya

20/36

Marketing planMarketing plan

Market description:-Market description:-

Skill at what we do, good customer service, and creating a pleasant environment for ourSkill at what we do, good customer service, and creating a pleasant environment for our

customers will be important to implementing our business plan.customers will be important to implementing our business plan.

Hair & Skin Care Beauty SalonHair & Skin Care Beauty Salon face looks marketing strategy is a simple one: satisfiedface looks marketing strategy is a simple one: satisfied

clients are our best marketing tool. When a client leaves our business with a face look,clients are our best marketing tool. When a client leaves our business with a face look,

he or she is broadcasting our name and quality to the public. Most of our clients will behe or she is broadcasting our name and quality to the public. Most of our clients will be

referrals from existing clients.referrals from existing clients.

As we have selected an area where there is some collages like seedling and gyan viharAs we have selected an area where there is some collages like seedling and gyan vihar

some hostels are also there I have targeted mainly the ladies and girls of the particularsome hostels are also there I have targeted mainly the ladies and girls of the particular

area living in hostel n homes. There will b a minimum 20 o 25 customers a day as uponarea living in hostel n homes. There will b a minimum 20 o 25 customers a day as upon

the estimation. It will start getting a profit of 20 to 30% in the next few months.the estimation. It will start getting a profit of 20 to 30% in the next few months.

Designing a marketing campaign specifically to target new customers for our saloon is anDesigning a marketing campaign specifically to target new customers for our saloon is an

excellent way to get business. Once a first time customer has visited our salon, it is smartexcellent way to get business. Once a first time customer has visited our salon, it is smart

to follow up their visit with a phone call, e mail, or postcard. We will Take theto follow up their visit with a phone call, e mail, or postcard. We will Take the

opportunity to thank them for their business and to ask a few questions about how theyopportunity to thank them for their business and to ask a few questions about how they

liked the service they received. Besides gathering valuable information we will use toliked the service they received. Besides gathering valuable information we will use to

improve our services, such a follow up contact also sends a strong message to ourimprove our services, such a follow up contact also sends a strong message to our

customers that you care about their business and want to see them back in your saloncustomers that you care about their business and want to see them back in your salon

again.again.

Creating a business plan for our hair and beauty salon is an important step in building aCreating a business plan for our hair and beauty salon is an important step in building a

8/8/2019 chuhiya

21/36

stronger, more profitable business.we will do targeted marketing campaigns that reachstronger, more profitable business.we will do targeted marketing campaigns that reach

the right customers who are most likethe right customers who are most likely to give our salon a try.ly to give our salon a try.

Competition analysis:-Competition analysis:-

Face look wants to set itself apart from other beauty salons that may offer only one orFace look wants to set itself apart from other beauty salons that may offer only one or

two types of services. Having suryed from such types of salon, I have realized, fromtwo types of services. Having suryed from such types of salon, I have realized, from

talking with their clients, that they desire all of the services that we are proposing, buttalking with their 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 donethey remain frustrated because they must get their hair done at one place, and nails done

at another. Although the focus of face look is hair services, we do wish to offer ourat another. Although the focus of face look is hair services, we do wish to offer our

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

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

of jaipur like rajapark, tonk road, malviya nagar and surrounding areas. We do not intendof jaipur like rajapark, tonk road, malviya nagar and surrounding areas. We do not intend

to compete with these so called "Day Spas." We wish to offer a middle ground for thoseto 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.clients who can't quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and beOur 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 willpampered. Soft drinks will be offered to clients as they enter for service. Televisions will

be located in the waiting and hair-drying area.be located in the waiting and hair-drying area.

Distribution:-Distribution:-

Our way of distribution is a simple one: satisfied clients are our best marketing tool.Our way of distribution is a simple one: satisfied clients are our best marketing tool. When a client leaves our business with a face look, he or she is broadcasting our nameWhen a client leaves our business with a face look, he or she is broadcasting our name

and quality to the public. Most of our clients will be referrals from existing clients. Ourand quality to the public. Most of our clients will be referrals from existing clients. Our

research has shown that word of mouth is the best advertising for this type of business.research has shown that word of mouth is the best advertising for this type of business.

8/8/2019 chuhiya

22/36

Advertising:-Advertising:-

No major advertising campaigns are anticipated. business. We will, however, run specialsNo major advertising campaigns are anticipated. business. We will, however, run specials

throughout the week. We will also ask clients for referrals, and reward them withthroughout 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 alsodiscounted 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 lotteryoffer discounts to the new clients who have been referred. There are plans for a lottery

that will offer a free trip to, say, banglore. A client would simply refer new clients to us,that will offer a free trip to, say, banglore. A client would simply refer new clients to us,

and we will place a card in a box for each client she brings. The more they bring, theand we will place a card in a box for each client she brings. The more they bring, the

more chances they have of winning the trip.more chances they have of winning the trip.

Products and Services:-Products and Services:-

Face look is considered an upscale full-service beauty salon. We will offer a wide rangeFace look is considered an upscale full-service beauty salon. We will offer a wide range

of services that include:of services that include:

Hair:Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling,cuts, relaxers, perms, colors, shampoo, conditioning, curling,

reconstructing, weaving, waving.reconstructing, weaving, waving.

Nails:Nails: manicures, pedicures, polish, sculptured nails.manicures, pedicures, polish, sculptured nails.

Skin Care:Skin Care: European facials, body waxing, massage.European facials, body waxing, massage. Silk wrap and fiberglass full set

Eyelash and eyebrow tinting

Full skin & body care service

Full-day pampering

Permanent makeup

Eye brow eye line and lip line

Wedding make up

8/8/2019 chuhiya

23/36

Hair cut Lip lineHair cut Lip line

Hair wash n conditioning massageHair wash n conditioning massage

8/8/2019 chuhiya

24/36

Sales ForecastSales Forecast

The following table and charts show our projected sales. We expect income to increaseThe following table and charts show our projected sales. We expect income to increase

steadily over the next three years, as the reputation of the salon, its stylists and servicessteadily over the next three years, as the reputation of the salon, its stylists and services

become apparent to the general public. Second year revenues also anticipate the additionbecome apparent to the general public. Second year revenues also anticipate the addition

of one new stylist.of one new stylist.

Note that we list no direct cost of sales here for services, only for products, since ourNote that we list no direct cost of sales here for services, only for products, since our

service costs are more accurately tracked as regular monthly expenses for supplies in theservice costs are more accurately tracked as regular monthly expenses for supplies in the

Profit and Loss table.Profit and Loss table.

Management SummaryManagement Summary

FACE LOOK will be organized and managed in a creative and innovative fashion toFACE LOOK will be organized and managed in a creative and innovative fashion to

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

conducive to a high degree of personal development and economic satisfaction forconducive to a high degree of personal development and economic satisfaction for

employees.employees.

Training classes to help improve employee product knowledge and skills will beTraining classes to help improve employee product knowledge and skills will be

conducted on a regular basis. As the business grows, the company will consider offeringconducted 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.an employee benefit package to include health and vacation benefits for everyone.

Personnel PlanPersonnel Plan

The personnel plan calls for a receptionist who will greet customers and receiveThe personnel plan calls for a receptionist who will greet customers and receivepayments for services and products. There will be two hair stylists, one beautician,onepayments for services and products. There will be two hair stylists, one beautician,one

techniction. Future plans include the hiring of a shampoo technician as the businesstechniction. Future plans include the hiring of a shampoo technician as the business

expands.expands.

8/8/2019 chuhiya

25/36

After few months.In the first year, assumptions are that there will only be three hairAfter few months.In the first year, assumptions are that there will only be three hair

stylists, a barber, and part time nail, facial, and massage technician until the business canstylists, a barber, and part time nail, facial, and massage technician until the business can

build a reputation that will attract others to work there.build a reputation that will attract others to work there.

Personnel PlanPersonnel Plan

20112011 20122012 20132013

StylistStylist(2)(2) 80008000 90009000 10,00010,000

beauticianbeautician 40004000 4,5004,500 50005000

helperhelper 30003000 40004000 45004500

ShampooShampoo

TechTech30003000 3,5003,500 45,0045,00

Total PeopleTotal People 55 55 55

Total PayrollTotal Payroll 1800018000 2100021000 2400024000

8/8/2019 chuhiya

26/36

Financial PlanFinancial Plan

Summary of financial need:-Summary of financial need:-

Our goal is to be a profitable business beginning in the first month. The business will notOur goal is to be a profitable business beginning in the first month. The business will not

have to wait long for clients to learn about it since the stylists will already have anhave to wait long for clients to learn about it since the stylists will already have an

existing client base.existing client base.

To assure the start-up funds lender that the owners are financially stable, a personalTo assure the start-up funds lender that the owners are financially stable, a personal

financial statement is enclosed illustrating other sources of income that include interestfinancial statement is enclosed illustrating other sources of income that include interest

and dividend income from investments.and dividend income from investments.

Important AssumptionsImportant Assumptions

The financials that are enclosed have a number of assumptions:The financials that are enclosed have a number of assumptions:

Revenues will grow at an annual rate of 15%, increasing 20% in November andRevenues will grow at an annual rate of 15%, increasing 20% in November and

December due to a historical jump in revenues at this time of year. We anticipate thisDecember due to a historical jump in revenues at this time of year. We anticipate this

increase to stay steady throughout the following year to account for the normal flow ofincrease to stay steady throughout the following year to account for the normal flow of

new clients coming into the salon. Estimates for sales revenue and growth arenew clients coming into the salon. Estimates for sales revenue and growth are

intentionally low, while anticipated expenses are exaggerated to the high side to illustrateintentionally low, while anticipated expenses are exaggerated to the high side to illustrate

a worst case scenario.a worst case scenario.

We did not use cost of goods sold in our calculations of net service sales, but included allWe did not use cost of goods sold in our calculations of net service sales, but included all

related recurring expenses, such as payroll and supplies, in the operating expenses area ofrelated recurring expenses, such as payroll and supplies, in the operating expenses area of

the profit and loss table. The only direct costs in the sales forecast are for projectedthe profit and loss table. The only direct costs in the sales forecast are for projected

product sales.product sales.

Product sales are a minimal part of our market. We are not quite sure how much revenueProduct sales are a minimal part of our market. We are not quite sure how much revenue

will be derived from products, so we took a low-ball approach and estimated sales ofwill be derived from products, so we took a low-ball approach and estimated sales of

8/8/2019 chuhiya

27/36

Rs.10000a month.Rs.10000a month. Also in the sales projections table are services such as nails andAlso in the sales projections table are services such as nails and

massages. We are not quite sure how much revenue these two services will generate. Wemassages. We are not quite sure how much revenue these two services will generate. We

are certain that in time these services will be a large part of our revenue, but to err on theare certain that in time these services will be a large part of our revenue, but to err on the

conservative side, we estimate revenues from these services to be only Rs 20000 a monthconservative side, we estimate revenues from these services to be only Rs 20000 a month

for the first year.for the first year.

General AssumptionsGeneral Assumptions

20102010 20112011 20122012

Plan MonthPlan Month 11 22 33

Current Interest RateCurrent Interest Rate 10.00%10.00% 10.00%10.00% 10.00%10.00%Long-term Interest RateLong-term Interest Rate 10.00%10.00% 10.00%10.00% 10.00%10.00%

Tax RateTax Rate 30.00%30.00% 30.00%30.00% 30.00%30.00%

OtherOther 00 00 00

8/8/2019 chuhiya

28/36

Projected Cash FlowProjected Cash FlowWe expect to manage cash flow over the next three years simply by the growth of theWe expect to manage cash flow over the next three years simply by the growth of the

cash flow of the business. The business will generate more than enough cash flow tocash flow of the business. The business will generate more than enough cash flow to

cover all of its expenses.cover all of its expenses.

Pro Forma Cash FlowPro Forma Cash Flow

20102010 20112011 20122012

Cash ReceivedCash Received

Cash from OperationsCash from Operations

Cash SalesCash Sales 166,4000166,4000 211,0220211,0220 239,9750239,9750

Subtotal Cash from OperationsSubtotal Cash from Operations 166,4000166,4000 211,0220211,0220 239,9750239,9750

Additional Cash ReceivedAdditional Cash Received

Sales Tax, VAT, HST/GSTSales Tax, VAT, HST/GST

ReceivedReceived00 00 00

New Current BorrowingNew Current Borrowing 00 00 00

New Other Liabilities (interest-free)New Other Liabilities (interest-free) 00 00 00

New Long-term LiabilitiesNew Long-term Liabilities 00 00 00

Sales of Other Current AssetsSales of Other Current Assets 00 00 00

8/8/2019 chuhiya

29/36

Sales of Long-term AssetsSales of Long-term Assets 00 00 00

New Investment ReceivedNew Investment Received 00 00 00

Subtotal Cash ReceivedSubtotal Cash Received 166,4000166,4000 211,0220211,0220 239,9750239,9750

ExpendituresExpenditures 20102010 20112011 20122012

Expenditures from OperationsExpenditures from Operations

Cash SpendingCash Spending 46,400046,4000 52,520052,5200 54,876054,8760

Bill PaymentsBill Payments 99,540099,5400 128,7300128,7300 147,2850147,2850

Subtotal Spent on OperationsSubtotal Spent on Operations 145,9400145,9400 181,2500181,2500 202,1610202,1610

Additional Cash SpentAdditional Cash Spent

Sales Tax, VAT, HST/GST PaidSales Tax, VAT, HST/GST Paid

OutOut00 00 00

Principal Repayment of CurrentPrincipal Repayment of Current

BorrowingBorrowing00 00 00

Other Liabilities PrincipalOther Liabilities Principal

RepaymentRepayment00 00 00

Long-term Liabilities PrincipalLong-term Liabilities Principal

RepaymentRepayment12,000012,0000 12,000012,0000 12,000012,0000

Purchase Other Current AssetsPurchase Other Current Assets 00 00 00

8/8/2019 chuhiya

30/36

Purchase Long-term AssetsPurchase Long-term Assets 00 00 00

DividendsDividends 00 00 00

Subtotal Cash SpentSubtotal Cash Spent 157,9400157,9400 193,2500193,2500 214,1610214,1610

Net Cash FlowNet Cash Flow 8,46008,4600 17,772017,7720 25,814025,8140

Cash BalanceCash Balance 8,96008,9600 26,733026,7330 52,547052,5470

8/8/2019 chuhiya

31/36

Break-even AnalysisBreak-even Analysis

The break-even analysis shows that Trend Setters has a good balance of fixed costs andThe break-even analysis shows that Trend Setters has a good balance of fixed costs and

sufficient sales strength to remain healthy. This calculation is focused on service sales,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 justand 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 salespassing the break-even point throughout most of the first year, but we expect actual sales

to be higher.to be higher.

Break-even AnalysisBreak-even Analysis

Monthly Revenue Break-evenMonthly Revenue Break-even 12,990512,9905

Assumptions:Assumptions:

Average Percent Variable CostAverage Percent Variable Cost 5%5%

Estimated Monthly Fixed CostEstimated Monthly Fixed Cost 123460123460

8/8/2019 chuhiya

32/36

Projected Profit and Loss:-Projected Profit and Loss:-

The following table shows our very conservative profit and loss projections for the nextThe following table shows our very conservative profit and loss projections for the next

three years. The table includes the payments for all independently contracted stylists andthree years. The table includes the payments for all independently contracted stylists and

technicians, as well for all regularly occurring supply expenses associated with servicetechnicians, as well for all regularly occurring supply expenses associated with service

sales.sales.

0

10000

20000

30000

40000

50000

60000

amount

1 2 3

years

profit and los

Series1

8/8/2019 chuhiya

33/36

Pro Forma Profit and LossPro Forma Profit and Loss

yearsyears 20102010 20112011 20122012

ExpensesExpenses

PayrollPayroll 46,400046,4000 52,520052,5200 54,876054,8760

Marketing/PromotionMarketing/Promotion 22,800022,8000 24,000024,0000 26,000026,0000

DepreciationDepreciation

8,1468,146

00 8,14608,1460

8,14608,1460

RentRent 22,740022,7400 22,740022,7400 22,740022,7400

UtilitiesUtilities 4,20004,2000 4,20004,2000 4,20004,2000

InsuranceInsurance 1,20001,2000 1,20001,2000 1,20001,2000

Payroll TaxesPayroll Taxes 00 00 00

Independently contractedIndependently contracted

stylistsstylists40,400040,4000 55,000055,0000 69,000069,0000

SuppliesSupplies 6,00006,0000 6,00006,0000 6,00006,0000

OtherOther 00 00 00

Total Operating ExpensesTotal Operating Expenses 151,8860151,8860 173,8060173,8060 192,1620192,1620

Profit Before Interest andProfit Before Interest and

TaxesTaxes10,194010,1940 32,916032,9160 43,413043,4130

8/8/2019 chuhiya

34/36

EBITDAEBITDA 18,340018,3400 41,062041,0620 51,559051,5590

Interest ExpenseInterest Expense 5,54205,5420 4,39204,3920 3,19203,1920

Taxes IncurredTaxes Incurred 1,39601,3960 8,55708,5570 12,066012,0660

Net ProfitNet Profit 3,25703,2570 19,967019,9670 28,155028,1550

Net Profit/SalesNet Profit/Sales 1.96%1.96% 9.46%9.46% 11.73%11.73%

8/8/2019 chuhiya

35/36

Projected Balance SheetProjected Balance SheetAs shown in the balance sheet, we expect a healthy growth in net worth.As shown in the balance sheet, we expect a healthy growth in net worth.

Pro Forma Balance SheetPro Forma Balance Sheet

20102010 20112011 20122012

AssetsAssets

Current AssetsCurrent Assets

CashCash 8,96008,9600 26,733026,7330 52,54752,547

Other Current AssetsOther Current Assets 60006000 60006000 60006000

Total Current AssetsTotal Current Assets 9,56009,5600 27,333027,3330 53,14753,147

Long-term AssetsLong-term Assets

Long-term AssetsLong-term Assets 59,500059,5000 59,500059,5000 59,50059,500

Accumulated DepreciationAccumulated Depreciation

8,14608,1460

16,2920016,29200 24,438024,4380

Total Long-term AssetsTotal Long-term Assets 51,354051,3540 43,208043,2080 35,062035,0620

Total AssetsTotal Assets 60,914060,9140 70,541070,5410 88,209088,2090

Liabilities and CapitalLiabilities and Capital 20102010 20112011 20122012

Current LiabilitiesCurrent Liabilities

8/8/2019 chuhiya

36/36

Accounts PayableAccounts Payable 9,05709,0570 10,717010,7170 12,230012,2300

Current BorrowingCurrent Borrowing 00 00 00

Other Current LiabilitiesOther Current Liabilities 00 00 00

Subtotal Current LiabilitiesSubtotal Current Liabilities 9,05709,0570 10,717010,7170 12,230012,2300

Long-term LiabilitiesLong-term Liabilities 49,917049,9170 37,917037,9170 25,917025,9170

Total LiabilitiesTotal Liabilities 58,974058,9740 48,634048,6340 38,147038,1470

Paid-in CapitalPaid-in Capital 5000050000 5000050000 5000050000

Retained EarningsRetained Earnings (1,8170)(1,8170) 1,44001,4400 21,407021,4070

EarningsEarnings 3,25703,2570 19,967019,9670 28,155028,1550

Total CapitalTotal Capital 1,94001,9400 21,907021,9070 50,062050,0620

Total Liabilities and CapitalTotal Liabilities and Capital 60,914060,9140 70,541070,5410 88,209088,2090

Net WorthNet Worth Rs.1,9400Rs.1,9400 Rs.21,9070Rs.21,9070 Rs.50,0620Rs.50,0620