ENT300 - Final Project _Hair Salon

Arte de Pelo Hair Salon ETR 300 Business Plan

Prepared by : Muhammad Aizat bin Ishak (2007232678) Muhamad Syapiq bin Mat Nor (2007232696) Muhamad Azfar bin Mohd Sharipp (20072) Nur Fatin binti Abdullah (20072) Nur Nadiati binti Ismail (20072) -ACD6A5-

Arte de Pelo Hair Salon

Table of content

1.0 2.0 3.0 4.0 5.0

6.0

7.0

8.0

Contents Executive summary Introduction Purpose Company background 3.1 Logo Partners background 4.1 Partnership agreement Location of business 5.1 Layout plan 5.2 Advantages Marketing plan 6.1 Service description 6.2 Target Market 6.3 Market size 6.4 Competition 6.5 Market share 6.6 Sales forecast 6.7 Marketing strategy and budget 6.8 Marketing budget Operations plan 7.1 Process planning 7.2 Operations layout 7.3 Production planning 7.4 Material planning 7.5 Machines and equipment planning 7.6 Manpower planning 7.7 Overheads requirement 7.8 Location 7.9 Business and operations hours 7.10 Licence, permits and regulations required 7.11 Operations budget 7.12 Implementation schedule Organizational plan 8.1 Organization mission and vision 8.2 Organization chart 8.3 Manpower planning 8.3.1 Schedule of task and responsibilities 8.3.2 Schedule of remuneration 8.4 List of office equipment 8.5 Organizational/administration budget

Page

4 5 6 7 8-12 13-16 17 18 19 20 20 21 22 23-24 25-30 31-34 35-44 45 46 46 47 48 49-55 56 57-58 58 59 60 61 62 63 64 64 65 66 66-67 68-69 70-71 72

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Arte de Pelo Hair Salon 9.0 Financial plan 9.1 Project implementation cost 9.2 Sources of financing 9.3 Pro forma cash flow statement 9.4 Pro forma income statement 9.5 Pro forma balance sheet 9.6 Financial Analysis 9.7 Budget 9.8 Depreciation schedule 9.9 Loan repayment schedule 9.10 Sales and purchases projection. 10.0 Appendices

73 74 75 76-77 78 79 80-85 86-88 89-90 91 92-93 94-100

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Executive Summary 1.0 Introduction Arte de Pelo is a hair salon located in 15, Jalan Telawi 4, Bangsar, 59100 Kuala Lumpur that allows the entire family to have their hair needs satisfied in one convenient location. Arte de Pelo serves men, women, and children and accepts appointments as well as walk-ins. Arte de Pelo also sells retail hair care products. Arte de Pelo is able to serve the entire family in one quick, convenient visit.

While there are many "quick salons" like Arte de Pelo, Arte de Pelo will excel due to its attention to detail regarding customer service. Through unheralded customer attention, Arte de Pelo will slowly but surely gain market share as it services the entire family, creating long-term relationships. Lastly Arte de Pelo location will allow it to attract a lot of walk in traffic.

People across Malaysia have decided to use our services when they want to fulfil their hair need, for example to have their hair cut or to make over their appearance through different hair style. Arte de Pelo has foreseen this opportunity to provide the finest and highest quality of hair cut and styling to all people, despite their age or gender. This has shown that Arte de Pelo has the calibre to be one of the most successful hair salons in Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success provided that it is handled efficiently. The people have always needed to take care of their hair, as the hair reflects their personality, and to make them feel more confidence and comfortable. Arte de Pelo sees this as a way to prosper in this market, by taking advantage of all these people‟s need.

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Arte de Pelo Hair Salon 2.0 Purpose This business plan is prepared because to convince venture capitalists, investors and banker in order to raise capital and obtain support for the venture. We need investors to raise fund for the purpose of company management and upgrading.

This business plan is also being drafted so that Arte de Pelo will get the financing it needs in order to start its business. The loan is crucial in order to start the business, so the presentation of this business plan is vital to gain the confident of the bank.

Arte de Pelo has asked from Maybank for a loan up to RM 50,000 so that it can build itself in this business. The other RM 100,000 will be from the accumulated capital provided by each shareholder in the company. Each shareholder has agreed to contribute RM 20,000 each.

The financing will be used to purchase a start up assets like salon equipments, furniture and fittings, store front and artwork, advertising and many more. We can get all this items from our trusted suppliers, and they have agreed to provide products with the best offer ever.

We also use this business plan as a guideline to the manager in order to succeed in the business. Arte de Pelo has all the ingredients to be one of the best in the business. We have set out our entire target in order to be successful. This business plan will includes company background, marketing strategy, operation plan, sales forecast and also the most important, the financing plan of the business.

Arte de Pelo will fully utilize all the assets so that it can maximize the profit. The profit that the company gets will be used to pay the loan that is given. Arte de Pelo is completely confident that it will be able to pay the loan back including the interest payment in the loan given.

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Arte de Pelo Hair Salon 3.0 Company background

Name of company

: Arte de Pelo Enterprise.

Address

: 15, Jalan Telawi 4, Bangsar, 59100 Kuala Lumpur, Wilayah Persekutuan.

Telephone number

: 03-22827667

Fax number

: 03-22827678

Email

: [email protected]

Form of Business

: Partnership

Main activity

: Hair cutting and stylist

Date of Registration

: 1 April 2010

Number of Registration

: M0457129-D

Date of Commencement

: 8 April 2010

Initial Capital

: RM 100,000 (own) RM 50,000 (loan)

Name of Bank

: Maybank Bhd

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Arte de Pelo Hair Salon 3.1

Logo

This logo represents: Image: beauty is essential to all people. Black and grey colour: symbolize elegance and stylishness.

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4.0 Owners or Partners background.

CHIEF EXECUTIVE OFFICER

Name:

Muhammad Syapiq bin Mat Nor

Date of birth:

29 march 1987

Place of birth:

Hospital Kuala Lumpur

Address:

No 23, Lorong D/2, Kampung Pandan, 55100, Kuala Lumpur

Interest:

Racing cars and drifting.

Qualification:

BACC in year 2005 (Graduated in Uitm Shah Alam), ACCA in year 2007 (Graduated in Dublin business school)

Position:

Chief executive officer

Skills:

1. A visionary and full of energy to drive towards success 2. Ability to manage employees efficiently

Experiences:

Has 4 years of working experiences in a corporate company and worked as a finance department manager until he decided to pursue a business in this market.

Details of the post:

As the Chief executive officer of the company, this job requires the manager to set up the mission, vision and objective for the long term of the company. The Chief executive officer also needs to organize, motivating and to control of his down liner to be always on top of their job.

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FINANCIAL MANAGER

Name:

Muhammad Aizat b. Ishak

Date of Birth:

8th February 1989

Place of Birth:

Hospital Muar, Johor.

Address:

45-15-12, Menara Orkid,Bandar Baru Sentul,51000 Kuala Lumpur

Interest:

Surfing, Thaiboxing, Singing.

Qualification:

B.ACC in year 2007 (graduated in UiTM Shah Alam), ACCA in year 2010 (graduated in Dublin Business School, Ireland)

Position:

Financial manager

Skills:

1. Very good accountability in doing his job. 2. A person with a broad view of management and corporation.

Experiences:

Was an accountant for a very well known corporate company. He worked there as an accountant for 2 years before he decided to be a business partner in this project.

Details of the post:

As financial manager, the main job in this post is to record everything about finance of the company. This job also needs high experience of evaluating and decision making about finance. More important, the prediction of the future economic, with this ability, we can maintain our company financial better.

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MARKETING MANAGER

Name:

Muhamad Azfar bin Mohd Sharipp

Date of birth:

29 June 1985

Place of birth:

Hospital Besar, Klang

Address:

No 3, Jalan Jeram,8/22,40000,Shah Alam, Selangor Darul Ehsan

Interest:

Soccer, rock climbing and sky diving

Qualification:

Bachelor in Marketing (University of Carnegie Mellon, Pittsburgh US), Certificate III in hairdressing (UK Hair Academy, United Kingdom)

Position:

Marketing Manager

Skills:

1. Able to market products effectively 2. Has a very good communication method 3. Very good in getting point across

Experiences:

A very experienced marketer and hair dresser. Before agreeing to this job, he was an assistant marketing executive at A Cut Above for 3 years. His experiences are very valuable to Arte de Pelo.

Detail of the post:

As a Marketing Manager, the main role in this post is to gather sufficient and reliable information from the public and current events to ensure that the service we provide meets their expectation. More importantly, marketing is an effective way to spread the word about the outstanding service that we provide. For one day, Arte de Pelo will be a major business in hair styling and salon.

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PUBLIC RELATION / OPERATIONAL MANAGER

Name:

Nur Fatin Binti Abdullah

Date of birth:

8 November 1985

Place of birth:

Hospital Besar Kota Bharu Kelantan

Address:

Q1-3, Jalan Lengkok Abdullah, Bangsar 59000 Kuala Lumpur

Interest:

Shopping, dancing and mountain climbing

Qualification:

Bachelor in Business Admin, (University of Surrey, United Kingdom) Certificates III in Hair Dressing ( Brisbane School of Hairdressing, Australia).

Position:

Public Relation Manager and Operational Manager.

Skills:

1. Has the ability and confidence to face people 2. Speaks bilingually 3. Good in controlling products and planning.

Experiences:

Before joining this venture, she had worked in Thomas n Guys as senior hair cutter for 2 years and had worked as sales person at ZARA Company for 8months.

Detail of the post:

As a Public Relation Manager, the main role in this post is to maintain a good relationship between customers and company, as the customers will become loyal. And as an Operational Manager, the main role in this post is to concerned with the production of goods and services and ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements.

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HUMAN RESOURCE MANAGER

Name:

Nur Nadiati binti Ismail

Date of birth:

20 November 1985

Place of birth:

Hospital Uni. Sains Malaysia,Kelantan

Address:

201, Jalan 1, Taman Sekamat, 43000 Kajang, Selangor.

Interest:

Play piano, sky diving and sewing.

Qualification:

Bachelor in Accountancy (UiTM Shah Alam), Bachelor‟s Degree in Human Resource Management (University of Southampton, United Kingdom)

Position:

Human Resource Manager

Skills:

1. Ability to find the right person for a job 2. Has a great conversing method

Experiences:

Before joining this venture, she has worked as a human resource executive in Celcom Communication for 2 years

Detail of the post:

As a Human Resource Manager, the main roles in this post is to recruiting and interviewing new potential staff as well as orientate new staff, explaining job description, policy, and procedures of Arte de Pelo Salon.

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PARTNERSHIP AGREEMENT

This agreement will bind the partners with the following aspects: 4.1.1

Types of Business: The business has been registered under the Register of Business using the

name of Arte de Pelo Enterprise. This business is a company that generally offers Hair Salon services. The service line of this company is hair cut, hair colouring, hair rebonding and hair perm.

4.1.2 Capital: Each partner has contributed the capital as below: Muhamad Syapiq bin Mat Nor

RM 20,000

Muhammad Aizat bin Ishak

RM 20,000

Muhamad Azfar bin Mohd Sharipp

RM 20,000

Nur Fatin binti Abdullah

RM 20,000

Nur Nadiati binti Ismail

RM 20,000

RM 100,000

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Arte de Pelo Hair Salon 4.1.3

Period of Partner Agreement:

From the consent of all partners, we agreed that: They had to run at least five years (5) and partners are prohibited from dissolving the business without the consent of other partners resolutions to other partners. 4.1.4

Distribution of Profits and Loss: Every partner has belonging this business and the amount of the profit from

this business as well. The partners will distribute profit according to capital distribution. Any losses will be liable among partner equally according Partnership Act 1961. 4.1.5

Perquisite: Any additional pay is to follow current profit and will be present in the end of

annual financial report. 4.1.6

Partnership Property: Owned by the partnership and partners because it is not separate legal entity

(Partnership Act 1961 S.22) 4.1.7

Death: The representive of the death partners can appoint to the business under the

Malaysian Law. The close member‟s of the family upon the entire death partner share can make the transmission of the state. 4.1.8

Bankruptacy or Dissolution of Partnership: When the partner is found lunatic, permanently unsound mind [Partnership Act 1961 S.37 (a)] When a partner permanently incapable of performing his part of the partnerhip contract [ Partnership Act 1961 S.37 (b)] When a partner calculated to affect prejudicially the carrying on the business [ Partnership Act 1961 S.37 (c)]

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Arte de Pelo Hair Salon When the partner willfully or persistently commits a breach of the partnership agreement or otherwise [ Partnership Act 1961 S.37 (d)] When the businness of the partnership can only be carried on at a loss [Partnership Act 1961 S.37 (d)] Whenever in any case circumstances have arisen which in the opinion of the court , render it just and equitable that the partnership be dissolve [Partnership Act 1961 S.37 (f)] 4.1.9

Retirement: If any partner who want to retire from the business must have consent from

others partners. They will get back their invets and the notice of retirement must be given 3 months before the retirement date. 4.1.10 Others: Each of the partners must act in good faith and respect other partners. Partners must have willingness and interested to make the business more succesful and giving full commitment for the business. They also must be honest and straight forward in order to execute responsible as a partner.

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___________________ (MUHAMAD SYAPIQ BIN MAT NOR) CHIEF EXECUTIVE OFFICER

___________________ (MUHAMMAD AIZAT BIN ISHAK) FINANCIAL MANAGER

____________________ (MUHAMAD AZFAR BIN MOHD SHARIPP) MARKETING MANAGER

_____________________ (NUR FATIN BINTI ABDULLAH) OPERATION/PUBLIC RELATION MANAGER

_____________________ (NUR NADIATI BINTI ISMAIL) HUMAN RESOURCE MANAGER

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5.0 Location of business.

We are here!!

Arte de Pelo 15, Jalan Telawi 4, Bangsar, 59100 Kuala Lumpur, Wilayah Persekutuan.

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Arte de Pelo Hair Salon 5.1 Layout plan.

60’ ft

40’ ft

BUILDING SIZE 

40‟ft length X 60‟ft width



12‟ft height

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Arte de Pelo Hair Salon 5.2 Advantages One of the advantages of setting up our shop in Jalan Telawi, Bangsar is that we have a constant traffic of customers. People who get into the Megamall, Bangsar Village and Bangsar Shopping Centre are bound to come to the shop if they see something from our services that we provide that attracts their eyes. It is also are very close to housing area and workplace area. We believe this will be one of the best reasons why this site of business will be one of the best decisions that we have made. Another reason is that Bangsar are the centre of attraction of people from many ages, ethnics and foreigners as well. Foreigners are usually like to hang out at Bangsar as Bangsar is commonly known as „Beverly Hills Malaysia‟. So this is one big advantage that our shop can be highly known not only for resident in Malaysia but also the foreigners. There are a-lot of shop lots especially boutiques and restaurant near to our shop. So this will allow us to attract more customers to visit our shop when they pass by and if the customers have their friends that wait for them, they can enjoy to window shopping or visits the boutiques or other shops while waiting for their friend to finish the hair services if they do not want to sit and relax at the waiting room. Bangsar is located in the middle of Kuala Lumpur and very near to Damansara. It is also near to KL Sentral, Midvalley Megamall, Bangsar Village 1 & 2, and also Bangsar Shopping Centre. So, it is not possible to get public transport and it is easier to get to the shop. There are also many amenities available here. For example, mosque, restaurants, boutiques, banks, sports centre, shopping malls, schools, public transportation like buses and taxis, ATM machines and many more. We believe that this premise is the best for our business to operate as it has so many advantages around the location and this will increase our profit and made our shop highly known to everyone.

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6.0 Marketing plan 6.1 Service Description 6.1.1 Services Arte de Pelo provides hair styling for the entire family. This includes hair cuts for men and women, hair perm, hair rebonding and hair colouring for men and women, as well as hair cuts for children. Shampoos will be offered for all adult services. Service is offered on a walk-in basis or by appointment. Arte de Pelo will emphasize a customer-centric service where the customer's needs are always the priority.

6.1.2 Service Descriptions The following is an overview of our main services by category: 1) Hair cut

– This is the main service that we offered here. There are levels of hair cutter we have provide with from junior, senior and professional to meet the customers budget and expectation.

2) Hair colouring – As this type of services, we provide various types of colour to be match with customers demand. 3) Hair rebonding –We offer this service for those who want to straighten their hair either women or men. 4) Hair perm

– This is one of the services we provide for those who want to curl their hair.

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6.2 Target Market. Arte de Pelo target markets will consist of the following groups:

6.2.1 Men will typically make up 70-75% of the clientele. o

Men have shorter hair requiring a faster, simpler job.

6.2.2 Females who cannot afford an upscale salon. o Women tend to favor a female specific upscale salon if they can afford it. There is not often a difference in quality of an upscale salon relative to a family hair salon other than a upscale salon will tend to pamper you more, only accepts appointments, and the facility is generally a bit plusher. Someone who is fiscally responsible as opposed to someone who likes opulence will favor a family style salon.

6.2.3 Young mothers with children. o Most young children are notoriously difficult when it comes to getting haircuts. A family style salon is a more laid-back place that allows the children to play while they are waiting and then will work with the parents in calming the kids nerves when they are ready for their shearing.

Market Analysis

10%

Males

20% Females 70%

Mothers with Young Children

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6.3 Market Size Market size is total potential purchase that is expected from the target market. Estimation of market size required information regarding the particular market the business intends to enter. The potential purchase includes purchase of the competitor within the same market. Bangsar is develop city where there are many infrastructure and services provided to its surrounding. Bangsar also surrounded with

working place, universities, college and

housing area. Besides that, each of the area within Bangsar are provided with public transportation such as busses, train and taxis. Furthermore, two of the established shopping complex that is Bangsar Village and Bangsar Shopping Centre are situated in Bangsar. From the seasonal factor, Bangsar will be crowded with people during seasonal event such as New Year, Hari Raya, Chinise New Year and other event. We consider that 30% of population in Bangsar as total buyers that will use hair services. Usually people like childrens, students, families, business person and others are in bangsar because of work, school, shopping and spending their time with family. Our business has identified our target market that is mainly on male and female. Therefore, from the 30% of the population that use hair services, Arte de Pelo target around 24% from the total people who use hair services. Thus, other competitors will conquer the balance of the population.

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6.4 Competition At our location, Arte de Pelo has some competitors as same business like us. Arte De Pelo looks three competitors as the major competitors in salon market which is Hair Concept, Inspiration Alan Salon and La – Bell Hair and Beauty Salon . We look competitors as an incentive to improve our company to be good in providing the best services to customer. Arte de Pelo also takes the competitors as healthy challenge. It just wants to make a variety in market competitors especially at Jalan Telawi, Bangsar. So, customer can also have many choices to meet their preferences. At the same time, Arte de Pelo will also provide good and quality services to meet their expectation and satisfying their wants.

The similarities with the competitors are same which is providing services related to salon. The difference of our company with the competitors are our company provides sub services that differentiate our salon from other competitors like offering drinks to customers, surf internet on laptop while colouring their hair, membership card and private room for female muslim and artist. Our company also overcomes the competitors by providing hair cutting services for big event such fashion show and runaway, reality tv show and wedding ceremony.

6.4.1 Competitors list  Major Inspiration Alan Salon 20 Jalan Telawi, 59100 Bangsar, Kuala Lumpur. Strength: a) The company has established early than Arte de Pelo Salon. b) Strategic place which is continuous people passes by their salon c) It is commonly known in east Malaysia.

Weaknesses: a) All types of services provided are too expensive compared to Arte de Pelo salon . b) Newly introduce in peninsular Malaysia.

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Arte de Pelo Hair Salon  Minor La-Bell Hair & Beauty Salon 62 Jalan Telawi, 59100 Bangsar, Kuala Lumpur.

Strength: a) The company has established early than Arte de Pelo Salon. b) Business focus on hair and other services such as pedicure and medicure. Weaknesses a) Location is not strategic because is not continous people passes their salon. b) Services that provided are too expensive c) Lack of promotion.

Hair Concepts 9a Jalan Telawi 2, 59100 Bangsar, Kuala Lumpur.

Strength: a) The company has established early than Arte de Pelo salon. b) Good promotion deal. Weaknesses a) All types of services provided are to expensive compared to Arte de Pelo salon. b) Inexperience labour force.

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6.5 Market Share 6.5.1 Market Share before

Hair Colouring Inspiration Alan

La Bell

Hair Concept

25% 45%

30%

Hair Cut Inspiration Alan

La Bell

Hair Concept

20%

25%

55%

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Hair Rebonding Inspiration Alan

La Bell

30%

Hair Concept

40%

30%

Hair Perm Inspiration Alan

La Bell

32%

Hair Concept

35%

33%

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Arte de Pelo Hair Salon 6.5.2 Market share after the entry of Arte de Pelo.

Hair Cut Arte de Pelo

Inspiration Alan

12%

La Bell

Hair Concept

30%

15%

43%

Based on our study, Arte de Pelo will conquer some of this section from other competitors by providing 30% in offering hair cut services for the market share. Arte de Pelo salon provides special services for Muslim women and also artist by preparing a private room for them. These services are rarely seen in other salon like La - Bell and Hair Concept. They only give 15% and 12% respectively.

Inspiration Alan also gets slightly higher ranking

compare to Arte de Pelo which provides 43%. Generally, people seek for hair salon to cut their hair in order to make over their appearance through different hair style.

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Hair Colour Arte de Pelo

Inspiration Alan

20%

La Bell

Hair Concept

22%

23% 35%

As the major competitor, Inspiration Alan contributes more on hair colouring services which carry out 35% of the total percentage. This is because, people are more confident to go there as their experience in handling their customers. La – Bell contribute to 23% from the market share since the salon established earlier than Arte de Pelo. Arte de Pelo manage to beat Hair Concept by 2% and slightly lower than La – Bell by only 1%. In general, both men and women will use this service in order to change their hairstyle with different colour.

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Hair Rebonding Arte de Pelo

Inspiration Alan

20%

25%

La Bell

Hair Concept

20%

35%

As we can see every salon that stated above provide hair rebonding services to customers. We conclude that Inspiration Alan 35%, La - Bell 25%, Arte de Pelo 20% and Hair concept 20%.

The differences percentage of The Arte de Pelo with others is based on

experience and influence of the salon because the other salon on the above are established earlier than Arte de Pelo. Hair rebonding is services that both men and women use in order to straighten their hair to meet their demand.

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Hair Perm Arte de Pelo

Inspiration Alan

23%

25%

La Bell

Hair Concept

24%

28%

Arte de Pelo also offers its customer with hair perm service. So, customer will choose either one of the salon stated from above in order to perm their hair. The percentages of the entire salon are slightly different that is Inspiration Alan 28%, La - Bell 25%, Arte De Pelo 24% and Hair Concept 25%. Hair perm service are offered from the entire salon above because the customers mostly women that want to curl their hair.

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6.6 Sales Forecast

Month

Haircut (RM)

Hair coloring

Hair rebonding (RM)

Hair perm (RM)

Sales Collection (RM)

(RM) 1

6000

4000

5000

5000

20000

2

6500

4625

6500

4875

22500

3

7100

4750

6000

6150

24000

4

6750

5000

6250

5750

23750

5

7000

5250

6500

5250

24000

6

6900

5100

6750

6750

25500

7

7300

5500

7000

6700

26500

8

7600

5900

7500

7750

28750

9

7900

5800

7650

7650

29000

10

8400

6100

8000

8500

31000

11

8500

6200

8350

8500

31550

12

9500

6975

8500

9025

34000

Year 1 (TOTAL)

320550

Year 2 (TOTAL)

364060

Year 3 (TOTAL)

441700

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Sales Forecast Analysis Hair styling is a major world industry, from the salon itself to products, advertising, and even magazines on the subject. It is primarily specialize in certain areas of hair care, such as coloring, up-dos for formal occasions, cutting or styling. Which salon one chooses will determine the level of expertise being performed for the service. These establishments are characterized by quality and type of services provided to the customer.

People across Malaysia have used hair salon services when they are in search of hairstyle that meets their expectation and our services proven to be popular amongst its receiver. The feedbacks that we got from them were mostly impressed with our services. This has shown that Arte de Pelo has the calibre to be one of the most successful hair salons in Malaysia.

We, Arte de Pelo, saw the opportunity that this business has the potential of success provided that it is handled efficiently. People have always needed hair services to bring benefits to them. Hair will grow day by day. Therefore, people will seek for salon in order to manage their hair. Arte de Pelo sees this as a way to prosper in this market, by taking advantage of the people‟s need for hair services.

As for the place information, Bangsar, is an affluent residential suburb on the outskirts of Kuala Lumpur, lying about 4 kilometres (2.5 mi) south-west of the city centre. It is part of the Lembah Pantai parliamentary constituency. Bangsar is administered by Dewan Bandaraya Kuala Lumpur (DBKL) unlike other townships in the Klang Valley such as Petaling Jaya and Subang Jaya which have their own municipal councils. Neighbourhood residents' associations and business councils play a part in communicating with the local authority but they exercise no legal or administrative power. As geographic description, Bangsar situated At 3°7′51″N 101°40′10″E Coordinates: 3°7′51″N 101°40′10″E, Bangsar lies respectively to the north and south of the neighbouring areas of Pantai Dalam and Damansara, and 4 kilometres (2.5 mi) south-west of Kuala Lumpur city centre.

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Arte de Pelo Hair Salon Bangsar is bounded by Jalan Bangsar and Jalan Pantai Baharu to the south, Universiti Malaya to the west, Jalan Damansara (Sprint Expressway and Bukit Damansara) to the north and Bukit Persekutuan to the east. It has the following neighbourhoods or housing estates: Bangsar Utama, Bukit Bangsar, Bangsar Park Bukit Bandaraya, Taman SA, Bangsar Baru, Lucky Garden, Pantai Hills, and the areas off Jalan Bangsar. Jalan Maarof is Bangsar's main thoroughfare, dividing Bangsar into two main areas: east and west. On the east side lies Taman SA, Bangsar Park, Bukit Bangsar, Bangsar Utama and one-half of Bukit Bandaraya. The remainder of the other neighbourhoods lies on the west.

Bangsar is rather flat at the southern neighbourhoods of Bangsar Utama, Bangsar Park and the Off Jalan Bangsar area. This makes Jalan Bangsar in the south prone to flooding during heavy downpours. The terrain progressively rises towards the north up Bangsar Baru, before making a steep drop in elevation after Bukit Bandaraya.

As for demographic description, its earliest settlers were railway workers living next to the KL-Klang railway track and rubber estate workers. Starting with a community of mostly Indian civil servants, comprising teachers, firemen, telecommunications officers and the police,

Bangsar

grew

to

include

young

professionals

of

various

races

including Malays, Chinese, Indian and expatriates, bringing its population to some 40,000 people by 2005.

Bangsar has grown rapidly in recent years, but has paid a price in terms of traffic jams and a shortage of parking places. Developments in neighbouring Bukit Damansara and Mid Valley Megamall have caused increased traffic to pass through Bangsar, especially along Jalan Maarof.

New shops and attractions are sprouting up in Bangsar, but many do not survive long, especially food and entertainment outlets. Other long-standing outlets have been very successful, opening up a second branch in Bangsar itself. Examples are Alexis and La Bodega, Coffee Bean, and McDonald's which can be found on Jalan Telawi, also Bangsar Shopping Centre and Bangsar Village.

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Arte de Pelo Hair Salon For the first month and second month of the business, our company gain RM20000 and RM 22500 of the sales collection from our four services line which are hair cut, hair colour, hair rebonding and hair perm. Even though the sales are a bit low, but we are satisfied with it and keep trying to increase the sales collection. We are doing sales promotion during the grand opening of our salon which is located at Bangsar for 1week to promote our hair salon to the public. We will give free hair cut for first 15 person who enter our salon and also 15% discount for other services provided by our salon. Many customers satisfied with it. This is important for us to attract as many as possible customers thus to gain their loyalty to become our loyal customers.

The third month shows an increasing amount that is RM 24 000. The service which getting the highest sales collection is main service that is hair cut. The prices of the services are also affordable for our customers to purchase it without taking more time to think either to buy or not. These are one of the advantages that the customers cannot get from the other hair salon. But fourth month sales are slightly decreasing compared to the third month that is RM 23750. Although the sales are slightly decrease, Arte de Pelo still can run the business without any problem and try to be more productive in the future. For the fifth month onwards till the twelfth month, the sales are keep on increasing from RM 24 000 to RM 34 000. This is because Arte de Pelo already gain the customers trust by providing best services to them. By giving reasonable price, good service and additional sub service that boost the quality of the salon, it gives impact to the customers‟ perception towards Arte de Pelo. Therefore, customers are satisfied and become a loyal customer to our salon. Thus, this shows that Arte de Pelo is gaining its experience to be better in the future. As for the next two years, Arte de Pelo estimate that the sales of the salon on the second year will be increase to 13% from the first year that is RM 364 060 and for the third year, the salon sales will be budgeted to increase by 13% from the second year that is RM 441,700. By the sales forecast analysis, it shows that Arte de Pelo is evolving into an established salon and well known in Bangsar. By the effort of the management of Arte de Pelo, the salon itself has proven to become one of the most outstanding salons in Bangsar Area.

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6.7 Marketing Strategies Marketing strategy is one of the important elements to market the organization services. The organization must use many strategies to promote our services to the customer. To Arte de Pelo the marketing strategy is our strength to provide our services to the customer to make them always remembers and we also provide the best services that is at the utmost quality, where nobody would find any services better than our salon. The marketing strategies that we use in term to our services to market level are: 6.7.1 Quality Arte de Pelo salon only offer good quality of services, so that we can get many customers since the customers always seek for the best quality provided to the customers. Quality plays a main role in marketing strategies. The main thing that always we think before offering our services to the customer is the quality. From the quality we can know that our customer will satisfied with our services. When they are satisfied of the quality of the services, they will come again to us and yet, we can get the regular customer to our salon. To offer the best quality services to our customers, we provide various level of hair cutter with different skills and talent in order to meet the customer expectation and choose the quality products to be use which will satisfy our customers wants. To boost up the quality on our services, we are using SCHWARZKOPF as our main product to comply with our services. This brand has been established all around the world. Therefore, this will enhance the influence of the customers to attract them from the quality perspective.

6.7.2 Pricing Although Arte de Pelo Sdn Bhd services are high-end and stylish in terms of quality of the workers and quality product that we had been used, our pricing structure remains affordable and in-line with other hair salon. Our pricing structure is also based on the type of services provided to the customers. For hair cut, we provide from junior to professional that each level of the hair cutter have different price for each services that meet the customers budget and demand. As for the hair rebonding, hair perm and hair colour, we will provide budgeted price that will attract customers. Thus, our salon gives the reasonable price to our services compare to the other salon. The prices of our services are more affordable. Our pricing structures are based on the survey that had been done plus the count of all cost that include from the supplier to

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Arte de Pelo Hair Salon us. Our pricing structure is also based on the value the customers place on these services. To attract more people to be our customers, we set the affordable price. Only when the quantity and the quality of product are satisfied, then the payment will be made.

6.7.3 Sub services There are some of sub services that have been provided by Arte de Pelo in order to create extra ordinary position to be compared from other salon. Unlike other salon that only provided magazine for those who are waiting for their turn or friends who accompany them, we provide them with internet wifi and also television to prevent them to be bored or stress while waiting. Furthermore, we will offer the customers with drinks before they cut their hair. We also give laptop services for those who colour or rebonding their hair because it takes time a long hours to be finish so they can online or do something with the laptop while waiting for their hair to be complete. Furthermore, we provide a private room for the purpose of offering services to the muslims women and artists who need privacy. With this method, we completely sure that we will attract a lot of customers because of our extra services that made exclusively to meet customers wants.

6.7.4 Place

Arte de Pelo is allocated at 15, Jalan Telawi 4, Bangsar. This building has already completed with basic amenities such as water and electricity. Bangsar is a strategic place to open up our business because it is located in middle of a city where surrounded with elite community and foreigners. Besides that, many customers from many other areas will come to Bangsar such as from Damansara, Shah Alam, Subang Jaya, Petaling Jaya and other area in Kuala Lumpur because of the strategic location. Therefore, it is suitable to open Arte de Pelo since the surrounding is good for our salon development.

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Arte de Pelo Hair Salon 6.7.5 Promotions We start our marketing plan during the launching day by giving free hair cut for the first 15 person who enter the salon. Besides that, we also provide discounts for every service on the same day. Customers who come during the launching day will be given our pamphlets. By giving pamphlets, customer will be expose about the background of salon and at the same time will recognize our services. As for the free hair cut, it is to attract customer first attention so that they will come again. Therefore, our goals to introduce our services to public and maintain customer loyalty will be achieve.

Membership cards are the best alternatives to maintain customer loyalty and one of the ways to businessperson to shows their appreciation to customer. Most of the hair salon will use membership card as marketing plan. We also use the same ways but in different concepts. We will provide 4 types of card that is green, yellow, blue and red. Each of the cards will be filling with 10 boxes. If all the boxes are full, the user of the card will be given free services. As for the green, yellow, blue and red we will give a free hair cut, hair colour, hair rebonding and hair perm respectively.

Promotion of Arte de Pelo also can be done either by promoting through media or non-media channel. To our company it is more efficient to promote our services to the public by promoting through the non-media channel which is Business Card, Bunting, Flyers, Wordof-Mouth, and Advertising Literature. From the media channel, we can use blog and Facebook to support public with our salon information. This will make them easier to reach our area of promotion and maintain our relationship with customers only by internet services. We choose to use the high cost on advertising because it is an introduction of the business to the public. As for the introduction, we must expose our business in the early stage in order to influence customers as much as we could. Thus, with high promotion in the early stage of business, Arte de Pelo will incurred high cost but will cover the expenses in future as soon as possible with the effort done by heavy promotion that leads to increase of sales.

The important method in term to promote our company disseminates our business card to the customer because this is an easy way for them to know our salon. In the business card stated the name of our salon, telephone number, address and any details of our salon can get it from the business card. So customer can easily contact, ask or deal with our salon.

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Besides that, we use bunting to promote our salon. To make people aware to the bunting, we use the attractive colour and writing. We also locate our bunting at the strategic places so that people can see the bunting clearly without any obstacles. We locate our bunting near to the main road and strategic location that people passes around. This will help our customers to locate our shop.

Moreover, we also use Word-of-Mouth, and Advertising Literature. Word-of-Mouth is a networking through friends, family, and business associates which is an inexpensive and effective marketing tool which Arte de Pelo utilizes to broaden our clientele base. Furthermore, we also will distribute our literature to various local community businesses and establishments such as restaurants, coffee shops, book stores, and universities.

During seasonal time such as Chinese New Year, Hari Raya, Christmas, Deepavali, New Year we also provides promotion for customer. We will provide discounts for every services that we had offer to the customers. This is because during seasonal period, people will seek for hair salon as they want their hair to be proper and meet their physical appearance. Therefore, we provide discount to influence them to come to our salon. Therefore, high sales can be achieved with no doubt.

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6.7.5.1

Business Cards.

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6.7.5.2

Bunting

Page 40


6.7.5.3

Flyers

Page 41


6.7.5.4

Brochures

Page 42


Page 43


6.7.5.5

Membership cards

Page 44


6.8

Marketing Budget Item

Signboard

Fixed Asset

Monthly Expenses

Other Expenses

4,000

Salaries + EPF + SOCSO

2,290

Advertising

200

Grand opening

5,000

Bunting

500

Flyers

300

Business cards

200

Total

4,000

2,490

6,000

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7.0 Operations Plan 7.1 Service Planning Flow chart of process of service

Greet the customer.

Invite the client to waiting room to discuss.

Get the information from the client

Brief the client about the conditions and consult whether is it suitable for them or not on the services they want and get the agreement from them.

Assist the client to the hair dressing room. Please them with offering drinks, magazines, or online.

Work on the style of the hair or the services that the client wants.

Show them the results.

Get the feedback from client.

Make the amendment accordingly.

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7.2 Operations Layout.

60’ ft

40’ ft

BUILDING SIZE 

40‟ft length X 60‟ft width



12‟ft height

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Service Planning Our service plan starts with greeting the customer that comes, walk in to the shop.

This is because when we greet the customers, they will feel comfort and appreciated and make them want to come more to the shop. After they walk in, we will invite the customers to the waiting room, so it will be easier to discuss what services they want in comfortable place. We will obtain information from the client, about what hair style they want to do, or any other services that they want. We will consult and advice the client whether the hair style is suitable for them and the condition of their hair if they want to do any other services like colouring, perm, rebonding or so on. After the discussion, we will get the agreement from the client on the final decision of what services they want. Then we will assist them to the hair dressing room. We will offer the sub service to customers any drinks, magazines to read or maybe if they want to online and we can give them laptop and the sub services is for free. That is for entertain the client so that they will not get bored while waiting for the services to be done. Next step would be, transferring the idea, the requested hair style or other services that has been discussed earlier into work. We will work it on with due care and professional so that the outcome will satisfy the customers. When the work has finished, we will show the result to the client. We will touch up the part that is not right or if the customers requested to add some services or to re-style their hair into another. For example the length for hair that has been cut is not short enough, so we will cut the hair shorter a bit, or to re-style the hair, maybe into Mohawk hair style for men instead of spiky hair style. After sales, feedback will be obtained from the customer. That‟s state in our company policy to provide outstanding after sale services. Then we will improve our service based on that comments and feedback.

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7.4 Material Planning When we started our business, we budget the materials cost would be RM40, 000 for all products. So we ordered the products within the amount that we estimated and we managed to get low prices for the products from Schwarzkopf and Schwarzkopf is our main dealer for our hair products. From the products that we ordered when we start our business within RM40, 000 cost budgets, for 1st to 2nd month, the quantity of the products is still enough to cover our operation cycle since we just open our salon, so the usage is still little. So we did not order the products to add up into our store. Plus, Schwarzkopf products are a very good quality products and it can be use for a long time period. For 3rd months and following months, we will start to order and replace the products by monthly order. We set up the budget cost will be RM3, 000 per month for all products. We have estimated our order to be in some quantity for the products per month and it is fixed. We will replace the products based on the fixed quantity so that it will be easier for us to order and our store will not have lack of products to be use to customers.

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Arte de Pelo Hair Salon 7.4.1 Materials HENKEL (MALAYSIA) SDN BHD SCHWARZKOPF PROFESIONAL DIVISION EFFECTIVE DATE : DEPARTMENT :

SEPTEMBER 2009 MARKETING

SALON PRICE LIST – MALAYSIA IDH NUMBER 1299281 1260417 1259395 1259274 1259319 1259396 1259252 1259402 1259575

DESCRIPTION BC REPAIR RESCUE BC Bonacure Repair Rescue Shampoo BC Bonacure Repair Rescue Conditioner BC Bonacure Repair Rescue Treatment BC Bonacure Repair Sealed Ends BC COLOUR SAVE BC Bonacure Colour Save Shampoo BC Bonacure Colour Save Conditioner

1259641

BC Bonacure Colour Save Spray Conditioner BC Bonacure Colour Save Treatment BC Bonacure Colour Save Colored Ends BC MOISTURE KICK BC Bonacure Moisture Kick Shampoo

1255373

BC Bonacure Moisture Kick Spray Conditioner

1266994

BC Bonacure Moisture Kick Treatment BC HAIR & SCALP EXPERT BC Hair & Scalp Deep Cleansing Shampoo ( For Oily Scalps ) BC Hair & Scalp Hair Growth Shampoo (For Thinning Hair) BC Dandruff Control Shampoo BC Hair & Scalp Control Fluid BC Hair Growth Serum

1259257 1258007 1259264 1259268 1259407 1259270 1259406

BC Hair & Scalp Deep Cleansing Pre-Shampoo BC OSIS Osis Magic Anti-Frizz Gloss Serum

SIZE

PRICE

1250 ml 250 ml 1000 ml 200 ml 250 ml

RM161 RM53 RM142 RM79 RM64

250 ml 1000 ml 200 ml 200 ml 750 ml 75 ml

RM64 RM161 RM68 RM68 RM194 RM46

1250 ml 250 ml 200 ml 400 ml 150 ml

RM161 RM53 RM57 RM98 RM34

1250 ml

RM161

250 ml 250 ml 100 ml 100 ml 14 x 2 ml 200 ml

RM53 RM53 RM64 RM368 RM283 RM98

50 ml

RM79

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Arte de Pelo Hair Salon 1259870 1259877 1259254 1259340

1257888 1267170

Osis Upload Volume Creme Osis Thrill Fiber Gum Osis Buff Styling Cream Osis Rough Up Modeling Clay BC ALOE ESSENCE SENSITIVE SOOTHE BC Aloe Essence Sensitive Soothe Calming Scalp Serum BC Aloe Essence Sensitive Soothe Conditioner

1259394

BC Aloe Essence Sensitive Soothe Shampoo

1259318 1259243

BC Aloe Essence Sensitive Soothe Treatment BC TIME RESTORE BC Time Restore Q10 Treatment

1258278 1259218 1259745

BC Time Restore Q10 Shampoo BC Time Restore Q10 Conditioner BC Time Restore Scalp Balm

200 ml 100 ml 150 ml 75 ml

RM68 RM79 RM68 RM79

8 x 7 ml 1000 ml 200 ml 1250 ml 250 ml 750 ml

RM135 RM161 RM68 RM183 RM64 RM194

200 ml 750 ml 250 ml 200 ml 8 x 7 ml

RM94 RM238 RM72 RM83 RM135

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Arte de Pelo Hair Salon 7.4.2 Catalog BC Bonacure Repair Rescue Shampoo

BC Bonacure Repair Rescue Conditioner

BC Bonacure Repair Rescue Treatment

BC Bonacure Repair Sealed Ends

BC Bonacure Color Save Shampoo

Bonacure Color Save Conditioner

BC Bonacure Color Save Spray Conditioner

BC Bonacure Color Save Treatment

BC Bonacure Color Save Colored Ends

Page 52


BC Bonacure Moisture Kick Spray Conditioner

BC Bonacure Moisture Kick Treatment

BC Hair & Scalp Deep Osis Magic Anti-Frizz Gloss Cleansing Shampoo (For Oily Serum Scalps)

Osis Upload Volume Crème

Osis Thrill Fiber Gum

Osis Rough Up Modeling Clay

BC Bonacure Moisture Kick Shampoo

Osis Buff Styling Cream

Page 53


BC Time Restore Q10 Shampoo

BC Time Restore Q10 Conditioner

BC Time Restore Q10 Treatment

BC Time Restore Scalp Balm

BC Dandruff Control Shampoo

BC Hair & Scalp Hair Growth Shampoo (For Thinning Hair)

BC Dandruff Control Shampoo

BC Hair & Scalp Control Fluid

BC Hair & Scalp Deep Cleansing Pre-Shampoo

Page 54

Arte de Pelo Hair Salon 7.4.3 Types of Colours

Page 55


7.5 Machines and Equipment planning No

Machine

Quantity

Price/Unit

Total Price

(RM)

(RM)

1. Cash Register Machine

1

755

755

2. Reception table

1

450

450

3. Styling Station

8

50

400

4. Styling Chair

10

250

2500

5. Shampoo chairs & bowl

2

100

200

6. Stool

6

150

900

7. Heater

1

3000

3000

8. Micromist

1

4000

4000

9. Hair Iron

3

250

750

10. Hair dryer

6

250

1500

11. Air Condition

2

1500

3000

12. Hair Steaming Machine

1

700

700

13. Digital Perm Machine

1

2000

2000

14. Water hair Spray

8

15

120

15. Hair comb (per set)

8

500

4000

16. Television Set

1

1899

1899

17. Sofa set

1

800

800

18. Water Dispenser

1

450

450

19. Glass & Cup (per set)

1

30

30

20. Retail display Shelf

1

200

200

21. Magazine Rack

1

300

300

22. 3 Level Supply Trolley

3

189

567

23. Curtain Privacy Screen

1

119

119

24. Aprons

8

30

240

TOTAL

28880

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7.6 Manpower Planning We discussed that the worker is from our partner, some of them and outsiders. This is because we manage small salon and some of our partner are qualified to work as a cutter and for the rest we hired from outsiders. For those who are working, the duties are only cashier, receptionist and senior/professional cutter. Nadia as Human Resource manager was set the duties for the workers including some of our partner. Azfar and Fatin will be the professional cutters and Nadia will be the receptionist and cashier as she will always be around at the shop. We hired 5 workers from outside, which are two junior cutters, two is professional and another worker will work as fortune-wash hair and craftsman hair color. Means the two professional cutters is permanent workers and another three workers is part time workers. Syapiq or Aizat will replace the position for Nadia if she in break time or she cannot attend to work. Nadia will make sure that all the workers come to work on time and rotating queue for their break time. We will tell the customers to make appointment so that it will be easier for the workers to scheduling their work. They can just walk in but only the workers who available for that time can cut hairs and so on. So it is better for the customers to make an appointment and choose their favourite cutters. Their break times are not fixed as the time for cutting hair and doing the stylish are within unpredictable length of time. So, when there are no customers, they can go for their break for 2 hours.

Day Monday

On Duties

Off Duties

Azfar, Nadia, Aizat, Syapiq, Fatin, one permanent and one permanent, two part time part time worker. workers.

Tuesday

Fatin, Nadia, Aizat, Syapiq, Azfar and one permanent one permanent and three part time workers.

Wednesday

Fatin, Azfar, Syapiq, Aizat, Nadia and one part time two permanent and two part worker. time workers.

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Arte de Pelo Hair Salon Thursday

Fatin, Azfar, Aizat, Nadia, Syapiq and one part time two permanent and part time worker. workers.

Friday

Everyone except Aizat

Aizat

Saturday

ALL

-

Sunday

ALL

-

7.7 Overhead Requirement Overhead requirement that Arte de Pelo needs is electricity, waters, telephones and WIFI. Electricity is very important to the operation of Arte de Pelo because it will be operated from 10 a.m. until 10 p.m. That‟s why cost of electricity is very high for every month. . It will be the same as water expenses as water is important elements in cutting and stylising hair. So, it is important to the managers to calculate the estimate amount of all the overhead incurred. For wifi, the cost is fixed per month. For telephone bills, we already limit RM200 per month because usually the customer will call us for appointment.

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7.8 Location

We are here!!

Arte de Pelo 15, Jalan Telawi 4, Bangsar, 59100 Kuala Lumpur, Wilayah Persekutuan.

Page 59


7.9 Business and Operations Hours Arte de Pelo Hair Salon will open every day, but the time is varying for weekday and weekend. The business is open from 10am to 10pm from Monday to Friday. For Saturday, the business is open from 11am to 10pm meanwhile for Sunday; it is open from 11am to 9pm. Public holidays are holidays for worker including their off days per week. We provide 2 hours rest. The rest hour is not straight 2 hours. We give 1 hour for first rest and 1 hour for another rest. On Friday, the male worker will be given 1 hour and half break at 1pm until 2.30pm, so that they can perform their Jumaat prayer. Means, they will have another 30 minutes break left. For Saturday and Sunday, there will be no staff takes their day off due to many customers. Day

Hour

Monday to Friday

10am – 10pm

Saturday

11am – 10pm

Sunday

11am – 9pm

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7.10 License, Permits and Regulations Required Arte de Pelo has to get licenses from the related bodies and authority in order to run the business smoothly. The licenses that are required are: 1. Premise and sign board license from DBKL (Form DBKL-JPL-KP-01-A1) 2. License for outdoor advertising from DBKL (Form DBKL-JPL-KP-01-B1) 3. Music Authors Copyright Protection License (MACP) 4. License for Performers and Artiste Rights (PRISM)

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7.11 Operations Budget Item

Machine and Equipment

Fixed Asset (RM)

Monthly Expenses (RM)

28880

Salaries, EFP & SOCSO

12138

Salon Product TOTAL

Other Expenses (RM)

40000 28880

12138

40000

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7.12 Project Implementation Schedule Activities

Deadlines

Durations

Incorporation of business

March - May 2009

3 months

Application for permits and

March - May 2009

3 months

June - July 2009

2 months

license Searching for business premise Renovation of premise

August 2009

3 weeks

Setting Fixtures and fittings

August 2009

5 days

Procurement of stocks and

September 2009

1 month

Searching for workers

October - November 2009

1 months

Final Checklist

December 2009

1 day

Grand Opening

January 2010

-

materials

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8.0 Organizational plan.

8.1 Mission and Vision Arte de Pelo 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 fall into place. Our services will exceed the expectations of our customers. Arte de Pelo vision is to create a harmonious, productive, profitable salon environment, and also supplying the community with a retail centre.

Motto

“We strive to make you look best” “We strive to make you look best.” This motto represents the determination of our company to provide the best hair cut with a touch of art to our precious customer. It also magnifies the need of our company to give people the best services that we can offer. With the best services, it will guarantee our customer satisfaction. Beauty comes from within, but a good haircut definitely helps.

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8.2 Organization chart Structure Based on Functions Structure based on functions is a line organizational structure based on functions is suitable for business organizations that emphasize functional specialties to perform tasks. Activities may be divided into marketing, public relation, human resource, administration and finance.

Chief Executive Officer Mr Mohd Syapiq

Financial Manager

Human Resouce Manager

Mr Mohd Aizat

Ms Nur Nadiati

Marketing Manager

Public Relation Manager

Mr Mohd Azfar

Ms Nur Fatin

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8.3 Manpower planning 8.3.1 Schedule of tasks and responsibilities Position

Tasks and responsibilities

1. Chief executive officer

1. Responsible in managing the company towards the vision, mission, and the objectives of the company 2. Act as a decision maker and cooperate in gaining ideas to improve the business 3. Identify and plan the business objective, highlight the regulations and business procedures in order to achieve the objective. 4. Monitor the activities to ensure that all are being accomplished as plan 5. Always alert to organization and business operation 6. Oversee the operations of the retail area. This includes inventory, stocking, and displays. 7. Handle payroll operations. 8. Participate with interviewing. 9. Develop color specialization. 10. To ensure office equipment is available and in good condition

2. Financial manager

1. Responsible of the cash flow and budgeting plan of the business 2. Analyzing, controlling, and record the money cash flow of the business 3. Preparing annual account and advisor in financial aspects 4. Preparing salary slips, business receipt, and paid salary 5. Using efficient and effective ways to increase sales and profit to make sure good development of business

3. Marketing manager

1. 2. 3. 4. 5. 6. 7. 8.

4. Public relation / Operational manager

1. Making sure that clients are getting the best customer

Marketing planner. Develop Arte de Pelo newsletter. Develop artedepelo.com web page Responsible to set the 4P‟s Find the strategic place Find the target market Decide the product to sell Set the promotion of the product

service. 2. Ensure all staff is supplied with business cards. 3. Handle customer complaints and suggestions in a pleasant, efficient, and professional manner. 4. Operation manager basically concerned with the production of goods and services.

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Arte de Pelo Hair Salon 5. Operation manager also have responsibility of ensuring that

business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. 6. It is concerned with managing the process that converts inputs (in the forms of materials, labour and energy) into outputs (in the form of goods and services).

5. Human Resource manager

1.

6.

1. Give good customer service by greet all clients and

Receptionist

Active involvement in recruiting and interviewing potential staff. 2. Orientation of new staff, job description, policy, and procedures of Arte de Pelo Salon. 3. Forecast the next turnover of the company 4. Do the job analysis

2. 3. 4. 5. 6. 7. 8. 9. 10.

7. Hair cutter/hair stylist and other employees

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

customers with a smile. Offer a beverage, reading material, and take their coat. Direct them to a dressing area if appropriate. All new clients are given a menu and tour of the facilities. Handle all phone calls politely and professionally. Booking and confirming appointments. Communicate product knowledge to clients with confidence. Have knowledge of all services offered and their prices. Check in clients. Responsible for handling all financial transactions of clients. It is the receptionist's duty to close out the POS terminal and credit card terminal at the end of the day or shift. Maintenance of the reception area, waiting area, and display units are also responsibilities. Inform technicians when their clients have arrived or cancelled. Focusing on clients' needs . Be involved within the community. Communicate product knowledge and service knowledge to the clients you service. Incorporate stress-relieving treatments and finishing touches with each client. Encourage and educate clients on new trends focusing on the total look. Encourage client referrals. Identify professional goals annually. Participate with daily cleaning. Enhance the image of the industry maintaining a professional relationship with the clientele. Actively participate with the team.

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Arte de Pelo Hair Salon 8.3.2 Schedule of remuneration. Monthly based remuneration. No.

Position

Monthly

EPF, 12%

SOCSO,

Total

Salary

(RM)

2.5% (RM)

Amount

(RM)

(RM)

1. CEO

2500

300

63

2863

2. Financial Manager

2000

240

50

2290

3. Marketing Manager/

2000

240

50

2290

2000

240

50

2290

2000

240

50

2290

6. Full time hair stylist

1500

180

38

1718

7. Full time hair stylist

1500

180

38

1718

8. Part time hair stylist

1200

144

30

1374


1200

144

30

1374


1200

144

30

1374

17100

2052

429

19581

senior hair stylist 4. Public Relation Manager/ senior hairstylist 5. Human Resource Manager/receptionist

TOTAL

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Yearly based remuneration. Year 1

Year 2

Year 3

Chief executive officer

RM 30,000

RM 36,000

RM 36,000

Financial manager

RM24,000

RM 30,000

RM 30,000

Marketing manager

RM 24,000

RM 30,000

RM 30,000

Public relation manager

RM 24,000

RM 30,000

RM 30,000

Human resource manager

RM 24,000

RM 30,000

RM 30,000

Full-time hair stylist

RM 18,000

RM 20,400

RM 20,400

Full time hair stylist

RM 18,000

RM 20,400

RM 20,400

Part time hair stylist

RM14,400

RM 16,800

RM 16,800


RM14,400

RM 16,800

RM 16,800


RM14,400

RM 16,800

RM 16,800

Total Payroll

RM 205,200

RM 247,200

RM 247,200

Page 69


8.4 List of Office Equipment Office furniture &fittings No

Items description

Quantity

1 2 3 4 5 6 7 8 9

Desktop computer Printers Fax and telephone Chair Locker Table Multi purpose rack Cabinet Air conditioner

1 1 1 3 3 1 1 1 1

Price per quantity RM 2500 RM 200 RM 380 RM 65 RM 130 RM 250 RM 200 RM 350 RM 1500

Total price

Price per quantity RM 3 RM 2.50 RM 5 RM 5 RM 3.50 RM 2.50 RM 1.50 RM 8.00 RM 10 RM 15 RM 2 RM 6 RM 4 RM 8 RM 5 RM 6 RM 4.50 RM 3 RM 8.90 RM 9.90 RM 6.90 RM 7.50 RM 8 RM 15 RM 7.50

Total price

TOTAL

RM 2500 RM 200 RM 380 RM 195 RM 390 RM 250 RM 200 RM 350 RM 1500 RM 5965

List of Stationeries No

Items description

quantity

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Account book Address book Book keeping(hard cover) Cash bill book Cheque record book Note book Soft exercise book Casio desktop calculator CD-R/CD-RW DVD-R/DVD-RW Envelope Box file/document case Clip board file Expanding file Magazine holder Ring file Examination pad Voucher pad A4 paper Color simili paper Computer form Fancy card Fax paper Inkjet & glossy paper Battery

3 1 3 3 3 7 7 2 1 sets 1 sets 2 sets 2 4 3 5 2 3 5 2 5 5 5 5 3 set 5

RM 9 RM 2.50 RM 15 RM 15 RM 10.50 RM 17.50 RM 10.50 RM 16 RM 10 RM 15 RM 4 RM 12 RM 16 RM 24 RM 25 RM 12 RM 13.50 RM 15 RM 17.80 RM 49.50 RM 34.50 RM 37.50 RM 40 RM 45 RM 37.50 Page 70

Arte de Pelo Hair Salon 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Clips Date chop Document tray Eraser Glue & gum Pin Puncher Ruler Scissors Stamp pad Stapler Canon ink cartridge Notice board Ball pen Correction pen Highlighter marker Permanent marker Mechanical pencil

3 boxes 3 3 8 8 3 3 5 6 5 5 4 2 2 dozens 5 3 1 dozens 5 TOTAL

RM 3.50 RM 7.50 RM 10 RM 0.20 RM 0.50 RM 1.50 RM 4.00 RM 0.60 RM 1.20 RM 5.00 RM 4.50 RM 21.00 RM 50 RM 4 RM 5 RM 5 RM 12.00 RM 3

RM 10.50 RM 22.50 RM 30 RM 1.60 RM 4 RM 4.50 RM 12 RM 3 RM 7.20 RM 25 RM 22.50 RM 84 RM 100 RM 8 RM 25 RM 15 RM 12.00 RM 15 RM 906

Page 71

Arte de Pelo Hair Salon 8.5 Organizational/administration budget Items

Furniture & Fittings Renovation Salary (EPF & SOCSO) Rent Utilities Office Supplies Business Registration Deposit (Rent) Professional Fees Total

Administration Budget Fixed Asset Monthly (RM) Expenses (RM) 5965 20000 5153 4000 900 906

25965

10959

Other Expenses (RM)

2000 8000 1000 11000

Page 72


Page 73


Financial plan 9.1

Project implementation cost Arte de Pelo Enterprise PROJECT IMPLEMENTATION COST & SOURCES OF FINANCE Project Implementation Cost Requirements

Fixed Assets Land & Building Office furniture & fittings Renovation

Sources of Finance Cost

Loan

Hire-Purchase

Own Contribution Cash

5,965 20,000

5,965 20,000

4,000

4,000

Machineries

28,880

28,880

months Working Capital 1 Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies 5%

10,959 2,490 12,138 57,000 7,072

10,959

148,503

48,503

Signboard

TOTAL

9,273 21,200 7,072

Existing F. Assets

2,490 2,865 35,800

100,000

Page 74


9.2

Sources of financing Sources of Finance

Requirements

Loan

Hire-Purchase

Fixed Assets Land & Building Office furniture & fittings Renovation

5,965 20,000

4,000

Machineries

TOTAL

Existing F. Assets

Cash

Signboard

Working Capital Administrative Marketing Operations Pre-Operations & Other Expenditure Contingencies

Own Contribution

28,880

10,959 9,273

2,490 2,865

21,200 7,072

35,800

48,503

100,000

Page 75


9.3

Pro forma cash flow statement Arte de Pelo Enterprise PRO FORMA CASH FLOW STATEMENT MONTH

Pre-Operations

1

2

3

4

5

6

7

8

9

10

11

12

TOTAL YR 1

YEAR 2

YEAR 3

CASH INFLOW Capital (Cash) Loan

100,000

100,000

48,503

Cash Sales

48,503 20,000

22,500

24,000

23,750

24,000

25,500

26,500

28,750

29,000

31,000

31,550

34,000

320,550

384,060

441,700

20,000

22,500

24,000

23,750

24,000

25,500

26,500

28,750

29,000

31,000

31,550

34,000

469,053

384,060

441,700

Collection of Accounts Receivable TOTAL CASH INFLOW

148,503

CASH OUTFLOW Administrative Expenditure Office supplies Rent Utilities Salary, EPF & Socso

906

906

906

906

906

906

906

906

906

906

906

906

10,872

10,872

10,872

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

4,000

48,000

48,000

48,000

900

900

900

900

900

900

900

900

900

900

900

900

10,800

10,800

10,800

5,153

5,153

5,153

5,153

5,153

5,153

5,153

5,153

5,153

5,153

5,153

5,153

61,830

61,830

61,830

2,290

2,290

2,290

2,290

2,290

2,290

2,290

2,290

2,290

2,290

2,290

2,290

27,480

27,480

27,480

200

200

200

200

200

200

200

200

200

200

200

200

2,400

2,400

2,400

Marketing Expenditure Salary, EPF & Socso Advertising

Page 76

Arte de Pelo Hair Salon Operations Expenditure Cash Purchase

1,200

Payment of Account Payable

1,200

1,200

1,200

1,200

1,200

1,200

1,200

1,200

1,200

12,000

12,800

13,600

1,800

1,800

1,800

1,800

1,800

1,800

1,800

1,800

1,800

16,200

18,000

19,200

12,138

12,138

12,138

12,138

12,138

12,138

12,138

12,138

12,138

145,656

145,656

145,656

Carriage Inward & Duty Salaries, EPF & SOCSO

12,138

12,138

12,138

Other Expenditure Pre-Operations Deposit (rent, utilities, etc.) Business Registration & Licences

1,500

1,500

55,500

55,500

58,845

58,845

Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Fixed Assets Purchase of Fixed Assets - Land & Building Purchase of Fixed Assets - Others Hire-Purchase Down Payment Hire-Purchase Repayment: Principal Interest Loan Repayment: Principal

404

404

404

404

404

404

404

404

404

404

404

404

4,850

4,850

4,850

Interest

202

202

202

202

202

202

202

202

202

202

202

202

2,425

2,183

1,940

0

0

0

0

Tax Payable TOTAL CASH OUTFLOW CASH SURPLUS (DEFICIT)

115,845

26,193

26,193

27,393

29,193

29,193

29,193

29,193

29,193

29,193

29,193

29,193

29,193

458,358

344,871

346,628

32,658

(6,193)

(3,693)

(3,393)

(5,443)

(5,193)

(3,693)

(2,693)

(443)

(193)

1,807

2,357

4,807

10,695

39,189

95,072

32,658

26,465

22,772

19,380

13,937

8,744

5,051

2,359

1,916

1,723

3,530

5,887

10,695

49,884

26,465

22,772

19,380

13,937

8,744

5,051

2,359

1,916

1,723

3,530

5,887

10,695

49,884

144,955

BEGINNING CASH BALANCE ENDING CASH BALANCE

32,658

10,695

Page 77


Pro forma income statement Arte de Pelo Enterprise PRO-FORMA INCOME STATEMENT Year 1

Sales

Year 2

Year 3

320,550

384,060

441,700

30,000

9,000 32,000

8,600 34,000

9,000

8,600

8,000

21,000

32,400

34,600

299,550

351,660

407,100

131,502

131,502

131,502

29,880

29,880

29,880

Less: Cost of Sales Opening stock Purchases Less: Ending Stock Carriage Inward & Duty Gross Profit Less: Enpenditure Administrative Expenditure Marketing Expenditure Other Expenditure Business Registration & Licences Insurance & Road Tax for Motor Vehicle Other Pre-Operations Expenditure Interest on Hire-Purchase Interest on Loan

1,500

55,500

2,425

2,183

1,940

11,769

11,769

11,769

Operations Expenditure

145,656

145,656

145,656

Total Expenditure

378,232

320,990

320,747

Net Profit Before Tax

(78,682)

30,670

86,353

Tax Net Profit After Tax Accumulated Net Profit

0 (78,682) (78,682)

0 30,670 (48,012)

0 86,353 38,341

Depreciation of Fixed Assets

Page 78

9.5

Pro forma balance sheet Arte de Pelo Enterprise PRO-FORMA BALANCE SHEET Year 1

Year 2

Year 3

ASSETS Non-Current Assets (Book Value) Land & Building Office furniture & fittings Renovation

Signboard

Machineries

4,772 16,000

3,579 12,000

2,386 8,000

3,200

2,400

1,600

23,104

17,328

11,552

47,076

35,307

23,538

0 9,000

0 8,600

0 8,000

10,695

49,884

144,955

19,695

58,484

152,955

66,771

93,791

176,493

100,000 (78,682) 21,318

100,000 (48,012) 51,988

100,000 38,341 138,341

43,653

38,802

33,952

43,653

38,802

33,952

1,800

3,000

4,200

66,771

93,791

176,493

Other Assets Deposit

Current Assets Stock of Raw Materials Stock of Finished Goods Accounts Receivable Cash Balance

TOTAL ASSETS Owners' Equity Capital Accumulated Profit Long-Term Liabilities Loan Balance Hire-Purchase Balance Current Liabilities Accounts Payable TOTAL EQUITY & LIABILITIES


Financial Analysis Arte de Pelo Enterprise

FINANCIAL RATIO ANALYSIS Year 1

Year 2

Year 3

LIQUIDITY Current Ratio Quick Ratio (Acid Test)

11 6

19 17

36 35

EFFICIENCY Inventory Turnover

2

4

4

PROFITABILITY Gross Profit Margin Net Profit Margin Return on Assets Return on Equity

93.45% -24.55% -117.84% -369.09%

91.56% 7.99% 32.70% 58.99%

92.17% 19.55% 48.93% 62.42%

213.21% 68.07% (33)

80.41% 44.57% 13

27.58% 21.62% 44

SOLVENCY Debt to Equity Debt to Assets Time Interest Earned

Page 80


Current Ratios 40

35

30

Ratio

25

20

15

10

5

0 1

2

3

Year

Quick Ratios 40 35 30

Ratio

25 20 15 10 5 0 1

2

3

Year

Page 81


Inventory Turnover 5 4 4

Times

3 3 2 2 1 1 0 1

2 Year

3

Gross Profit Margin 94,00%

93,50%

93,00%

Percent

92,50%

92,00%

91,50%

91,00%

90,50% 1

2 Year

3

Page 82


Net Profit Margin

25,00% 20,00% 15,00% 10,00%

Percent

5,00% 0,00%

-5,00%

1

2

3

-10,00% -15,00% -20,00% -25,00% -30,00% Year

Return on Assets 60,00% 40,00% 20,00% 0,00% 1

2

3

Percent

-20,00% -40,00% -60,00% -80,00%

-100,00% -120,00% -140,00% Year

Page 83


Return on Equity 100,00% 50,00% 0,00% 1

-50,00%

2

3

Percent

-100,00% -150,00% -200,00% -250,00% -300,00% -350,00% -400,00% Year

Debts to Equity 250%

200%

Percent

150% Series1

100%

50%

0% 1

2 Year

3

Page 84


Debts to Assets 80% 70% 60%

Percent

50% 40% 30% 20% 10% 0% 1

2 Year

3

Times Interest Earned 50 40 30

Times

20 10 0 1

2

3

-10 -20 -30 -40 Year

Page 85


Budget 9.7.1

Administrative budget ADMINISTRATIVE BUDGET

Particulars

Monthly Exp.

F.Assets

Others

Total

Fixed Assets Land & Building

-

-

Office furniture & fittings

5,965

5,965

Renovation

20,000

20,000

-

-

-

-

Working Capital Office supplies

906

906

Rent

4,000

4,000

Utilities

900

900

Salary, EPF & Socso

5,153

5,153

-

-

-

-

-

-

Pre-Operations & Other Expenditure Other Expenditure

-

Deposit (rent, utilities, etc.)

-

-

Business Registration & Licences Insurance & Road Tax for Motor Vehicle

1,500

1,500

-

-

Other Pre-Operations Expenditure

9,500

9,500

11,000

47,924

Total

25,965

10,959

Page 86


Marketing budget MARKETING BUDGET

Particulars

Monthly Exp.

F.Assets

Others

Total

Fixed Assets Signboard

4,000

4,000

-

-

-

-

-

-

Working Capital Salary, EPF & Socso

2,290

2,290

Advertising

200

200

-

-

-

-

-

-

-

-

-

-


-


-

-


-

-

-

-


6,000

6,000

6,000

12,490

Total

4,000

2,490

Page 87


Operations budget OPERATIONS BUDGET

Particulars

Monthly Exp.

F.Assets

Others

Total

Fixed Assets Machineries

28880

28,880 -

Working Capital Raw Materials

-

-

Carriage Inward & Duty

-

-

Salaries, EPF & SOCSO

12,138

12,138

-

-

-

-

-

-

-

-


-


-

-


-

-

-

-


40,000

40,000

40,000

81,018

Total

28,880

12,138

Page 88


Depreciation schedule Fixed Asset Cost (RM) Method Economic Life (yrs) Year

Office furniture & fittings 5,965 Straight Line 5

Annual Depreciation

Accumulated Depreciation

-

Book Value

-

5,965

1,193

4,772

1

1,193

2

1,193

2,386

3,579

3

1,193

3,579

2,386

4

1,193

4,772

1,193

5

1,193

5,965

-

6

0

0

-

7

0

0

-

8

0

0

-

9

0

0

-

10

0

0

-

Fixed Asset Cost (RM) Method Economic Life (yrs) Year

Renovation 20,000 Straight Line 5

Annual Depreciation


1

4,000

Book Value

-

20,000

4,000

16,000

2

4,000

8,000

12,000

3

4,000

12,000

8,000

4

4,000

16,000

4,000

5

4,000

20,000

-

6

0

0

-

7

0

0

-

8

0

0

-

9

0

0

-

10

0

0

-

Page 89



Signboard 4,000 Straight Line 5

Annual Depreciation


-

Book Value

-

4,000

1

800

800

2

800

1,600

2,400

3

800

2,400

1,600

4

800

3,200

800

5

800

4,000

-

6

0

0

-

7

0

0

-

8

0

0

-

9

0

0

-

10

0

0

-


Machineries 28,880 Straight Line 5

Annual Depreciation


-

3,200

Book Value

-

28,880

5,776

23,104

1

5,776

2

5,776

11,552

17,328

3

5,776

17,328

11,552

4

5,776

23,104

5,776

5

5,776

28,880

-

6

0

0

-

7

0

0

-

8

0

0

-

9

0

0

-

10

0

0

-

Page 90


Loan repayment schedule LOAN REPAYMENT SCHEDULE Amount Interest Rate

48,503 5%

Duration (yrs)

10 Baki Tahunan

Method Year

Principal

-

Interest

Total Payment

-

Principal Balance

48,503

1

4,850

2,425

7,275

43,653

2

4,850

2,183

7,033

38,802

3

4,850

1,940

6,790

33,952

4

4,850

1,698

6,548

29,102

5

4,850

1,455

6,305

24,252

6

4,850

1,213

6,063

19,401

7

4,850

970

5,820

14,551

8

4,850

728

5,578

9,701

9

4,850

485

5,335

4,850

10

0

0

-

4850

Page 91


Sales and purchases projection.

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total Year 1 ToTal Year 2 Total Year 3

SALES PROJECTION 20,000 22,500 24,000 23,750 24,000 25,500 26,500 28,750 29,000 31,000 31,550 34,000 320,550 384,060 441,700

PURCHASE PROJECTION Month 1 Month 2 Month 3 3,000 Month 4 3,000 Month 5 3,000 Month 6 3,000 Month 7 3,000 Month 8 3,000 Month 9 3,000 Month 10 3,000 Month 11 3,000 Month 12 3,000 Total Year 1 30,000 ToTal Year 2 32,000 Total Year 3 34,000

ENDING STOCK OF FINISHED GOODS

RM

End of Year 1

9,000

End of Year 2

8,600

End of Year 3

8,000

TERMS OF LOAN (if required) Interest rate Loan duration Interest payment method*

5% 10 2

* Method: 1 = flat rate 2 = annual rest

Page 92

Arte de Pelo Hair Salon PAYMENTS FOR PURCHASES In the month of purchase 1 month after purchase 2 months after purchase Total

COLLECTIONS FOR SALES In the month of sale 1 month after sale 2 months after sale Total

40% 60% 100%

100%

100%

Page 93

ENT300 - Final Project _Hair Salon

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