BUSINESS PLAN

FOR

D-AMAZING BARBING SALOON

Prepared by:
Akinbode Oladele Joel
D-Amazing Barbing Saloon
Obantoko, Fajol,
Abeokuta.
askoladele@[Link]
07063563430
TABLE OF CONTENT

EXECUTIVE SUMMARY

1.0 BUSINESS OVERVIEW

2.0 MARKETING PLAN

3.0 OPERATIONAL PLAN

4.0 ORGANIZATIONAL AND MANAGEMENT PLAN

5.0 FINANCIAL PLAN

 EXECUTIVE SUMMARY.

D-AMAZING BARBING SALOON is a start-up business that will provide hair care service for
men, with style and class, appealing to the youths. The service provided will be packaged with
sports television. We will be located in Obantoko road, Fajol, Abeokuta, Ogun State.

The business is to be owned by Mr Akinbode Oladele Joel. The service provided by D -Amazing
Barbing Saloon will be unique in packaging and the complementary service will help make it a
success.

The total start-up capital estimated for the business is put at N1,298,920.00 It is estimated that the
sum of N1,010,230 will be used as pre-operating expenses while N150,000 will be used to purchase
the opening stock and the sum of N138,690 as initial operating expenses for the period of two
months.

The estimated gross profit for the 36 months is put at N4,692,500 while the net profit is put at
N1,281,339

The risk associated with the business will be lack of modern barbing skills and leakages due to
inadequate supervision by the entrepreneur. This will be mitigated by training with a professional
barber and regular and impromptu checks on the business and finances, respectively.
1.0 BUSINESS OVERVIEW:
1.1 DESCRIPTION.

The name of the business is “D-AMAZING BARBING SALOON”. This business

enterprise is going to be a brand name in the fashion industry (specifically barbing), providing
services in hair care while giving entertainment in sports television.

The business will be located at No 35, Obantoko road, Fajol, Abeokuta. Ogun State. We
will provide services to youths and adults living in Obantoko, Osiele and its environs, which will
form the core of our customers.

1.2 VISION AND MISSION STATEMENT

 VISION
To be an icon in the hair salon business in Obantoko and Osiele area in the next five years.

 MISSION
Providing good services to customers while satisfying their passion for sports in a customer
friendly environment.

1.3 BUSINESS OBJECTIVE

The business objectives are.

 To have a sales turnover of N10,000,000 in the first three years of operation

 To have outlets in 2 neighbouring local governments in the second year of operation.

1.4 VALUE PROPOSITION

The business aims at creating an experience different from just going to have a haircut. We
aim at boosting the morale of our customers through quality hair-cut, giving them a superb look and
appearance. The D-AMAZING BARBING SALOON environment will be friendly with football
gist flowing; so with every visit the customer has the impression he is hanging out with friends of
common interest. Our prices will be very competitive, we will also provide hair care tips to our
customers while embracing health-conscious strategies.

1.5 SUCCESS FACTORS OF THE BUSINESS

 Provision of quality and unique hair-cuts to the customer.

 Constant power supply which will be achieved through the use of a generator.
  The entrepreneur is also a trained barber who will also deploy his skills to the running of the
business; and will constantly avail himself of barbing trends.
2.0 MARKETING PLAN:

2.1 DESCRIPTION OF SERVICE

The business will provide hair services which include:

I. Haircut
II. Blow out
III. Hair dyeing
IV. Shaving

There is a variety of hair services to be chosen from, which will provide the unique look most of the
youthful customers will want.

2.2 DELIVERY STRATEGY

The barbers will be uniformed in football jerseys and jeans. This will appeal to the passion of most
of the customers and it will give the barbers a youthful and friendly look. Customers will be ushered
in politely by the staff. The shop will be opened for business between 8am and 10pm Mondays to
Sundays.

2.3 THE OPPORTUNITY

The opportunity that needs to be addressed is the need for more barbing salons to reduce queues and
to create a brand name in the hair salon business in Obantoko. This will be an advantage to the
business as we will be a fore-runner. The need for creativity in the salon business in the
environment will also be addressed.

2.4 TARGET MARKET

The target market is the youth or the young at heart and adults residing in the business location.

2.5 PRICING STRATEGY

Pricing of services will be competitive. Convenience and quality will also be used as an attraction
for customers. Meanwhile, the rules in the community will not be violated.
3.0 OPERATIONAL PLAN:

3.1 Description

The Proposed location would be easily accessible in a busy, yet neat environment. The building
will be a shopping complex. There would be enough space for the comfortable seating of waiting
customers. The business office will be painted in green, which is the colour of a football pitch. The
wall will be decorated in pictures of football stars.

3.2 Consumables needed

The major consumables needed are after shave lotion, sulphur ointment, and cotton wool. This will
be bought from cosmetic stores around.

3.3 Capital Equipment

Equipment Unit Unit Cost Cost N Life span in Monthly

Description Required months Depreciation
3 clippers Whal Clippers 3 15,000 45,000 18 2500.00
Sterilizer U-V light Sterilizer 1 29000 29,000 24 1208.33
Hair Dryer Hand Hair- Dryer 1 10000 10,000 24 416.67
Satellite TV Hi TV Satellite Television 1 10000 10,000 36 277.78
Generator A 3.5 kva Elepaq 1 96800 96,800 36 2688.89
Swi vel Ba rbi ng Cha i r 2 leather Chairs 2 58000 116,000 36 3222.22
Ba rbi ng Cl oth White polyester material 5 500 2,500 12 208.33
2 Hair Brush Wood Hair Brush 2 500 1,000 12 83.33
Towel Warmer sterilizer 1 40000 40,000 24 1666.67
Fan 1 45000 45,000 36 1250.00
Wall glass Front and Back 2 20000 40,000 24 1666.67
Sound system Lg Home Theatre 1 64000 64,000 36 1777.78
TV set LG 32 inch TV set 1 110000 110,000 60 1833.33
TOTAL 609,300 18,800

3.4 Service Method

D-AMAZING BARBING SALOON will employ two professional barbers which will be the
direct labour of the business; they will be uniformed in football jerseys of their choice. They are
required to be polite so as to form a formidable relationship with the customers. There will be
training of apprentices; these apprentices will handle minor task of the business. The staff will be
motivated with their salary which will be flexible and negotiable as the business grows.

The working hours will be 8:00 am to 9: 30 pm from Monday to Saturday; and 2:00 pm to 9:30 pm
on Sundays. Our standard is that after every cut, we wash and apply the necessary treatment except
for special cases requiring added treatment and consultation.
3.5 Legal Environment

Licensing will be done with the barber’s association of the locality and relevant government
agencies.

3.6 Pre-Operating Expenses

Items Description Amount

Rent This will be for two years 200,000
Equipment Total value of equipment 670,230
plus 10% inflation
allowance
Utilities The Power supply will be 60,000
from PHCN
Advertising Banners will be made 30,000
along with awareness
concept
Interior This will include painting 50,000
and furniture
Total 1,010,230

5.0 FINANCIAL PLAN

Financial Assumptions
The estimates in this business plan are made on the assumption that inflation rate will not increase
in the next one year, the fashion industry will continually grow alongside the entertainment
industry, there will not be increase in competition and the salary will not be increased in the first
year of operation.

Start-up Capital Estimation

The table below show estimates needed to start the business and includes description for the source
of the capital.

Table 5.1: Required Startup Capital Estimate

ITEMS AMOUNT COMMENT
Pre-operating Expenses 1,010,230.00
Opening Stock 150,000.00
Initial operation expenses (3 138,690.00
Total Startup Capital Estimated 1,298,920.00
SOURCES OF FUNDS AMOUNT %
Personal Fund /Equity - 0%
Bank Loan 1,298,920.00 100%
Total Funds Sourced 1,298,920.00 100%

Loan Repayment
Quarterly
Schedule
Quarterly
Quarter Principal Principal Interest Principal + Interest Cumulative
1 1,298,920.00 - 29,225.70 29,225.70 29,225.70
2 1,298,920.00 29,225.70 29,225.70 58,451.40
3 1,298,920.00 129,892.00 29,225.70 159,117.70 217,569.10
4 1,169,028.00 129,892.00 29,225.70 159,117.70 376,686.80
5 1,039,136.00 129,892.00 23,380.56 153,272.56 529,959.36
6 909,244.00 129,892.00 23,380.56 153,272.56 683,231.92
7 779,352.00 129,892.00 23,380.56 153,272.56 836,504.48
8 649,460.00 129,892.00 23,380.56 153,272.56 989,777.04
9 519,568.00 129,892.00 11,690.28 141,582.28 1,131,359.32
10 389,676.00 129,892.00 11,690.28 141,582.28 1,272,941.60
11 259,784.00 129,892.00 11,690.28 141,582.28 1,414,523.88
12 129,892.00 129,892.00 11,690.28 141,582.28 1,556,106.16
GRAND TOTAL 1,298,920.00 257,186.16 1,556,106.16
 Quarterly Cash flow Plan
Components Pre Q1 Q2 Q3 QQuarterly
4 QProfit
1 andQLoss
2 Statement
Q3 Q4 Q1 Q2 Q3 Q4
Componen Q1 Startup
CASH INFLOW
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total
Cash at Hand (beginning of
t
month) TOTAL 311,500 338,000 138,690367,000
282,274 395,000
449,268 365,000
512,128 371,000
599,807 401,000
616,143 427,500 398,500 696,624
637,518 677,642 402,000 706,124
431,000 717,114
485,000750,862
4,692,500
SALES
Cash Sales
311,500 338,000 367,000 395,000 365,000 371,000 401,000 427,500 398,500 402,000 431,000 485,000
TOTAL - - - - - - - - - - - - -
Equity
COST OF -
SALES
Loan Proceed
GROSS 311,500 338,000 367,000 395,000 365,000 371,000 401,000 427,500 398,500 402,000 431,000 485,000 4,692,500
1,298,920
PROFIT
Total Cash Inflow
EXPENSE 1,298,920 450,190 620,274 816,268 907,128 964,807 987,143 1,038,518 1,105,142 1,095,124 1,108,124 1,148,114 1,235,862 -
CASH OUTFLOW
S
Pre-operating Expenses
Operating 138,690
1,010,230141,781 145,022 148,203 149,404 149,765 153,066 156,157 157,643 157,854 161,095 167,336 1,826,016
Opening Expenses
inventory Total
Cost
Interest 29,226150,00029,226 29,226 29,226 23,381 23,381 23,381 23,381 11,690 11,690 11,690 11,690 257,186
Operating Expenses
Depreciatio 56,400 56,400138,69056,400
141,781 56,400
145,022 56,400
148,203 56,400
149,404 56,400 56,400 156,157
149,765 153,066 56,400 157,643
56,400 157,854
56,400 161,095
56,400 167,336676,800
Interest Rent
n 25,000 25,00029,22625,00029,226 25,000 25,000 25,000 25,000 25,000 25,000 11,690
25,000 11,690
25,000 11,690
25,000 11,690300,000
29,226 29,226 23,381 23,381 23,381 23,381
TOTAL
Loan Repayment 249,316 252,407 255,648 258,829 254,185 254,546 257,847 260,938 250,733 250,944 254,185 260,426 3,060,002
EXPENSE - - 129,892 129,892 129,892 129,892 129,892 129,892 129,892 129,892 129,892 129,892
Income Tax
SNET 62,184 85,593 - 111,352 - 136,171 - 110,815- 116,454 45,988 143,153
46,588 166,562
54,538 147,767
99,088 151,056 91,575
89,775 176,815 94,575
224,574 95,625
1,632,498
Total CashPROFIT
Outflow
1,160,230 167,916 171,007 304,140 307,321 348,664 349,625 360,876 408,517 389,000 391,011 397,252 404,543
BEFORE
Income Tax
Cash Balance (end of the 33,245 34,936 42,946 49,969 44,330 45,317 53,044 67,372 489,749
month) NET 62,184138,69085,593282,274111,352
449,268 136,171
512,128 77,571
599,807 81,518
616,143 100,207
637,518 116,594 103,437 706,124
677,642 696,624 105,739 717,114
123,770 750,862
157,202831,319
1,261,339
PROFIT
AFTER