DESCRIPTION OF THE PROJECT

Nickys Beauty Salon and Day Spa offers services that will enhance your beauty. Nickys Beauty Salons and Spa competitors will be Touch of Heaven Beauty Shop and Express Beauty Salon. Nickys Beauty Salon will be located in the community of Morant Bay. The market area will be Duhaney Pen , Red Hills, Leith Hall, Prospect, Retreat, Lyssons, Yallahs and almost the whole of St. Thomas because of the location in the capital of the parish . Nickys Beauty Salon and Spa will be a sole proprietor, its marketing strategy will be pricing and it will attract customers from far and near.

DESCRIPTION OF THE PRODUCTS / SERVICES

Nickys Beauty Salon offers services that will enhance your beauty. Nickys Beauty Salon and Spa will offer all that it takes to make you beautiful. Hairstyling will be done in all different and latest styles that there is. Nickys Beauty Salon will also offer manicure, pedicure and facial done to your satisfaction. Nickys Beauty Salon and Spa is a friendly environment that will offer comfort and relaxation while at your service. The employees at Nickys Beauty Salon are professionals that will make you actually feel the difference.

COMPETITOR ANALYSIS
1. Touch of Heaven Beauty Shop 2. Express Beauty Salon

SWOT ANALYSIS STRENGTHS: Nickys Beauty Salon offers comparatively cheap price as against its competitors. Quality services will be given at a very low price. Nickys Beauty Salon will also have a good network with customers and this will be greatly attractive. WEAKNESSES: Nickys Beauty Salon might face the weakness of having no control over raw materials. OPPORTUNITIES: Nickys Beauty Salon have only a few and very weak competitors. Their services will not be of a much quality as that of Nickys Beauty Salon.

THREATS: Nickys Beauty Salon might face the threat of rising raw material cost.

MARKETING PLAN

LOCATION Nickys Beauty Salon will be located in the community of Port Morant in Style Hutt District St.Thomas. In this area, there wont be much competition, as the other beauty shop does not offer the quality services, and the level of professionalism in hair, facial manicure and pedicure which is a plus for the business cause by the upgrading of our education towards our level of profession. The friendly employees and comfortable surroundings. With this locaton Nickys Beauty Salon is bound to be a success. There will be a quality of support because of the quality services it has to offer.

MARKET AREA & MARKET SIZE Nickys Beauty Salon market area will comprise of the following: Bath, Airy Castle, Leith Hall, Prospect, Retreat, Lyssons & Morant Bay.

CUSTOMERS Nickys Beauty Salon and Spa will attract customers from all over. They will come from far and near because of the quality services that will be offered. The customers will come from Bath, Port Morant, Leith Hall, Prospect and Morant Bay and other surrounding areas. The quality of service will be greatly attractive.

SELLING PRICES
SERVICES PRICES

Crme Curling Cut & Curl Bleach Color Jheri Curls Steam Steam & Treat Braid Hair Extensions Manicure Pedicure Facial

$800.00 $500.00 $1000.00 $700.00 $600.00 $900.00 $700.00 $900.00 $1000.00-up $700.00-up $500.00-up $700.00-up $1000.00 $1500.00

MARKETING STRATEGY A marketing strategy is anything that is used to gain market attention. The strategy that Nickys Beauty Salon will be using is pricing. The pricing will be below that of its competitors.

SALES FORECAST MONTH

MAY

SALES VOLUME 100*800= 80*500= 80*1000= 20*700= 20*600= 50*900= 100*700= 100*900= 50*1000=

SALES AMOUNT $8000 $4000 $80000 $14000 $12000 $45000 $70000 $90000 $50000 5

Crme Curling Cut & Curl Bleach Color Jheri curls Steam Steam & Treat Braid

Hair extensions Manicure Pedicure Facial TOTAL

50*700= 100*500= 50*700= 50*1000=

$35000 $5000 $35000 $50000 $498000.00

PROMOTIONAL ACTIVITIES Promotional activities are those that include informing people about the products or services. Nickys Beauty Salon will use Informative advertising, Personal Selling and Public Relations.

MARKETING BUDGET Advertising Music Total $3000 $2500 $5500

PRODUCTION PLAN Executive Summary

LIST OF MACHINERY/TOOLS REQUIRED
TOOLS PRICES

Dryer Hot iron set Setters Comb Brush Mirror

TOTAL

$5000.00 $10,000.00 $3000.00 $700.00 $1000.00 $10,000.00

$29,700.00

RAW MATERIALS NEEDED Relaxing Crme Jheri Curls Crme Hair Oil Styling Gel Hair Glue Hair Spray Treatments Shampoo Conditioner

COST OF RAW MATERIALS

RAW MATERIAL QUANTITY UNIT COST TOTAL COST

Relaxing Crme Jheri curls Crme Hair Oil Styling Gel Hair Glue Hair Spray Treatments Shampoo Conditioner

4 5 3 2 5 5 3 1 1

$1700 $1500 $700 $500 $300 $300 $800 $1500 $1500

$6800 $7500 $2100 $1000 $1500 $1500 $2400 $1500 $1500

TOTAL

$25800.00

SOURCE OF RAW MATERIALS

RAW MATERIALS SOURCE

Relaxing Crme Jheri curls Crme Hair Oil Styling Gel Hair Glue Hair Spray Treatments Shampoo Conditioner

Wholesale Wholesale Supermarket Supermarket Supermarket Supermarket Wholesale Wholesale Wholesale

LABOUR
NAME TASK NO. OF PERSONS INVOLVED

Nickesha Grant Tameka Watson Yashieka McFarlane Jessica Francis

Hairdressing Hairdressing Hairdressing Facial, Manicure, Pedicure

3 3 3 1

COST OF LABOUR
LABOUR COST

Hairdressing Manicure Pedicure Facial

TOTAL

$5500 per week $4500 per week $4500 per week $4500 per week
$19000.00

OVERHEAD EXPENSES
EXPENSES COST

Electricity Water

$7500 $4000

Telephone
TOTAL

$3500
$15000.00

ORGANIZATION AND MANAGEMENT

FORM OF BUSINESS Nickys Beauty Salon will be a sole proprietor and this form of business is owned and controlled by one person. This means that only one person will be responsible for all the expenses, profit or loss.

ORGANIZATIONAL STRUCTURE

FINANCIAL PLAN
PROJECT COST Fixed Assets Tools Furniture Administrative Cost Total Pre-operating expenses Registration fees & Licenses Cost of preparing business plan Trips to raw material suppliers Total Working capital Cost of raw material Cash needed Total Capital Requirement . PROFIT AND LOSS STATEMENT Profit and Loss Statement (one year) Sales (498,000*12) Raw Material: (258000*12) $3,096,000.00 Labour:(19000*12) $228,000.00 Overheads:(15000*12) $180,000.00 Gross Profit Marketing & Administrative $114,000.00 Cost: (5500+4000*12) Operating Profit Net Profit Before Tax LC $5,976,000.00 $29,700.00 $15000.00 $4000.00 $48,700.00 $2000.00 $2000.00 $3000.00 $20000.00 $25800.00 $112,500.00 $207,000.00

$3,504,000.00 $2,472,000.00 $2,358,000.00 $2,358,000.00

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CASH FLOW STATEMENT (first year) Cash Flow Cash sales Collection of accounts receivable Total Cash Inflow Cash Outflow Direct materials Direct labour Operational overheads Marketing expenses Administrative expenses Loan Total Cash Outflow Net Cash Inflow (Outflow) LC $5,976,000.00 $3,422,000.00 $9,398,000.00 $3,096,000.00 $228,000.00 $180,000.00 $66,000.00 $48,000.00 $750,000.00 $4,368,000.00 $5,030,000.00

BALANCE SHEET AS AT THE END OF THE YEAR ASSETS Current Assets Cash Raw materials (RM) Accounts Receivable Total Current Assets Fixed Assets Tools Total Fixed Assets Pre-operating expenses TOTAL ASSETS LIABILITIES Current Liabilities Accounts Payable Loans Payable Total Current Liabilities Long Term Liabilities Loans Payable Total Long Term Liabilities OWNERS Equity Capital Beginning Net Profit after Tax Total Owners Equity TOTAL LIABILITIES AND EQUITY LC $5,976,000.00 $3,096,000.00 $3,422,000.00 $12,494,000.00 $29,700.00 $29,700.00 $20,000.00 $12,543,700.00 $2,950,00.00 $750,000.00 $3,700,000.00 $3,550,000.00 $3,550,000.00 $4,000,000.00 $1,293,700.00 $5,293,700.00 $12,543,700.00

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BREAK EVEN POINT Annual Sales Annual Fixed Costs: Owners salary Other overheads Marketing administrative cost LC $5,976,000.00 $264,000.00 $3,504,000.00 and $114,000.00 $3,882,000.00 Annual Variable Costs: Raw materials Direct labour $3,096,000.00 $228,000.00 $3,324,000.00 $3,882,000.00

$3,324,000.00

Annual Sales * Annual Fixed Costs Annual Sales- Annual Variable Costs

= BEP (Annual Sales)

5,976,000 * 3,882,000 5,976,000 - 3,324,000

= LC 8,747,674.21

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Mission Statement
To provide a relaxing and personal experience. A salon where you can count on being pampered and your idea's respected. We pride ourselves on the ability to listen and execute our clients needs to showcase their own personal style and beauty. Our professional stylists are highly skilled and creative. We believe in continuing our education to stay current with styles and trends, to know and understand the latest innovations and healthy hair-care. Nickys Beauty Salon and Day Spa is a diverse salon that caters to men, women and children.

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Industry Analysis & Industry Trends The Day Spa and Nail Salon , like most of the economy, experienced difficult conditions during recessions. However, industry operators recovered quickly, and revenue will grow consistently despite of all of the different obstacles that may arise . Business will expand with the services that the firm would offer with the growing acceptance of convenience options like online reservations and walk-ins, has allowed the industry to expand rapidly. Industry Report - Industry Products The Day Spa and Salon provides a wide array of beauty care and relaxation services to consumers. During the past five years, with the downturn in the economy, value-oriented day spas and Salons benefited from rising demand from consumers who in the past frequented luxury destination spas and this is what Nickys Day Spa and Salon will try to offer. Services offer Salons and Day Spa operators garner the majority of their revenue through facials and elegant hairstyles which contribute an estimated 70% of revenue. The most common types of celebrity hairstyles offered includes Liberty spikes, Waves, Sister locks Mohawk, French twist Cornrows, Beehive and Braids of every description. However, facial services are estimated to have decreased as a share of revenue over the past five years, with fewer Jamaicans indulging in facial. Industry Products Facial Hair Care Pedicure Manicure Industry Activities Creame Curling Cut& Curl Bleach Colour Jheri Curl Steam Steam &Treat Braid Hair Extension Manicure Pedicure Facial

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Target Market
Nickys Day Spa and Salon is located in the town centre. This gives it an advantage for every person to visit. The Day Spa and Salon is a diverse salon that caters to men, women and children. It is placed in a strategic location so that business persons and others that have to do business in Morant Bay can have an easy access. Most person will take the opportunity to do their business and having their beauty enhance at the same time. Persons will take advantage of the services that is offered by Nickys Day Spa and Salon because it will offer services such as debit and credit card payments. So if they are without cash the business can accommodate them.

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