Final N & S Business Plan

N & S HAIRDRESSING SALON
Business Plan
Ben Jones Street

Grenville,
St. Andrew, Grenada
1473-533-8232
May 24th, 2013
Developed with the assistance of: Grenada Industrial Development Corporation

Frequente Industrial Estate, Frequente St. George's
Tel: (473) 444-1035-1040
Fax: (473) 444-4828
Email: invest@grenadaidc.com
Contents
Contents.............................................................................................................................2
Disclaimer .........................................................................................................................2
1.0 Executive Summary ..................................................................................................3
2.1 Objectives..................................................................................................................4
2.2 Mission......................................................................................................................4
2.3 Keys to Success.........................................................................................................4
4.0 Start-Up Summary.....................................................................................................5
5.0 Market/Industry Analysis..........................................................................................6
5.1 Competitive Analysis & Competitive edge ..............................................................6
6.5 Marketing Strategy....................................................................................................7
6.6 Sales Strategy.............................................................................................................7
6.7 Pricing Strategy.........................................................................................................8
6.8 Distribution Strategy..................................................................................................8
6.9 Sales Forecast............................................................................................................8
6.10 SWOT Analysis.......................................................................................................9
6.10.1 Strengths...............................................................................................................9
6.10.2 Weakness..............................................................................................................9
Inexperience in the hairdressing business........................................................................9
Lack of management skills..............................................................................................9
6.10.3 Opportunities .......................................................................................................9
7.0 Management Summary............................................................................................10
8.0 Financial Plan...........................................................................................................12
8.2 Projected Profit & Loss ..........................................................................................15
8.3 Projected Cash Flow................................................................................................17
Disclaimer
This business plan represents the ideas and intentions of the owner of the business; it is
based on projections and the current state of the economy including buyer trends,
2

patterns, an analysis of the industry and other uncertainties. Although such projections are
believed to be realistic, no declaration can be made as to their accuracy and attainability.
This business plan does not guarantee the receipt of any loan or grant neither does it
constitute an offer to sell, nor a solicitation of an offer to buy securities. In this regard, the
GIDC shall not be held liable for business plans that are not approved by financial
institutions or grant agencies.
1.0 Executive Summary

N & S Hairdressing Salon will be operated as a high quality salon in the town of
Grenville. The business will be specialised in quality services to all customers at a
reasonable price. Its founders are two energetic young ladies who are highly motivated
with a desire to succeed and expand in the future.
The business is aimed to provide customers with a wider choice of obtaining the products
and services offered by N & S Salon but at the same time
Business Plan Highlights
Total Income
Growth in Income (%)
2013 (6 months) 2014

2015
17,700.00
48,868.00
62,365.00
176%
27.6%
Total Expenditure
Growth in expenditure (%)
Anticipated Profit/(Loss)
Profit as a % of Total Income
Total Assets
Growth in Assets (%)

2.1 Objectives
To be able to have at least ten percent (10%) of the market share by the end of
year three
To be able to reach forty thousand dollars ($40,000) income (sales and services)
in the first year and an increase of ten per cent (10%) each year following
To be able to earn a profit of fifteen thousand dollars ($15,000) in the first year
and an increase of 10% each year following
2.2 Mission
To provide a unique experience to all customers by offering excellent hair services at an
affordable price in a relaxing environment.
2.3 Keys to Success

1. A comfortable, pleasant and refreshing environment where clients would be
relaxed.
2. A clientele that would ensure profitability and guarantee success
3. Providing a reliable and efficient service at a competitive price
4.0 Start-Up Summary
N & S Hairdressing Salon

Business Start Up Budget
% Equity
% Loan
12.96%
87.04%
Total Cost
Equity
Loan
Water
400.00
200.00
200.00
Electricity
400.00
200.00
200.00
Rent
1,000.00
500.00
500.00
Business registration
60.00
60.00
Advertisements (Flyers)
400.00
400.00
Subtotal
2,260.00
1,360.00
900.00
Hair Accessories
9,024.00
1,000.00
8,024.00
Direct Materials
1,500.00
1,500.00
Total Current Cost of

Goods
10,524.00
2,500.00
8,024.00
Long Term Assets
Total Costs
Equity
Loan
Television
1,000.00
Items
Expense:
Current Assets:
1,000.00

Refrigerator
1,900.00
1,900.00
Radio
100.00
100.00
Hair Dryer
1,000.00
1,000.00
Equipment
7,000.00
7,000.00
Sink
800.00
800.00
Shelves
1,500.00
1,500.00
Large Mirror
700.00
700.00
Furniture
3,000.00
3,000.00
Total long term assets
17,000.00
0.00
17,000.00
Total Start up costs
29,784.00
3,860.00
25,924.00
5.0 Market/Industry Analysis
N & S Hairdressing Salon will focus on ladies between the ages of fifteen to seventy in
the parish of St. Andrew.
The business main target group will be young ladies who are keener to keep themselves
beautiful. These will be teen girls who will soon be leaving school in the next year or
two; young working ladies and older women who are willing to maintain their hair even
at their age.
5.1 Competitive Analysis & Competitive edge
The main competitors of N & S hairdressing Salon will be the well-established salons in
the areas of Grenville. These salons are operated by well experienced and competent
hairdressers.
6

N & S Hairdressing Salon will concentrate on quality, reliability and flexibility. The
owners intend to ensure that they learn and keep up to date with new styles and
information in the cosmetology area. The internet will be a good source of free education
where a number of styles are taught on YouTube. Every effort will be made to educate
ourselves further whenever training opportunities are available.
The Salons opening hours will be very flexible and a shift system will be organised to
accommodate customers who may visit late in the evening for our services.
6.5 Marketing Strategy

N & S Hairdressing Salon will promote its business by the use of flyers for the opening.
The opening will include special price for the first week of operation. Schools will be
targeted during the months of July. Each young lady graduating from secondary schools
in St. Andrews will be given a ten dollar ($10) coupon for which she will receive a ten
dollar ($10) discount on any hairstyle before the end of July. It is anticipated that most of
the young ladies will make use of the discount for their graduation ceremony.
The targeted number of persons will be as follows:

Table 3
Schools
St. Josephs Convent
Grenville Secondary
St. Andrews Secondary School
Total
Number of young ladies graduating

58
31
29
118
Business places with high percentage of ladies will also be visited and given discount
coupons.
Flyers will be stuck on buildings and on lamp poles throughout Grenville.
6.6 Sales Strategy
The business will be opened six days per week from 9:00 a.m. to 6:00 p.m. A shift
system will be used by the two operators in order to accommodate late customers and to
be more flexible. Later appointments for hair styles can be made and these customers will
be accommodated as well.
Persons who use the services of the salon would get all products at a 10% discount while
customers who only make purchases will pay the full price.

6.7 Pricing Strategy
The price of the hair dressing services will be very competitive with those of other
hairdressers in the parish. The ten dollar ($10) coupons will be distributed to secondary
school graduates on the day of their graduation. This strategy will be used to introduce
the clients to the salon. During that that we will concentrate on quality services and
ensuring that customers are satisfied.
Hair and beauty products will be priced by using a 25% mark up. N& S Hairdressing
salon would purchase most of the hair products from Trinidad and Tobago where the
items are much cheaper than in Grenada. This will allow us to sell at a lower price than
our competitors in order to build up our market share.
6.8 Distribution Strategy
All products will be sold at the salon on Ben Jones Street, Grenville.
All hair services will be done at the hair salon also.
6.9 Sales Forecast
The selling price of all hair accessories are shown in the table below. It is estimated that
half of the starting inventory will be sold in 2013.
Items
Braids
Weavon (synthetic)
Weavon (human)
Hair extensions
Manekene
Hair pins
Hair clips
Weaveon thread
Weaveon needles
Weaveon glue
Nail remover
Eye lashes
Acrylic
Nail polish
Hair dye
Combs
Hair brush
Selling Price
$5.00
$50.00
$80.00
$50.00
$150.00
$5.00
$5.00
$5.00
$3.00
$5.00
$8.00
$5.00
$20.00
$5.00
$5.00
$5.00
$10.00
Sale of Accessories
Hair Braiding
Hair Weaving
Hair Relaxing
Hair Treatment
Total
2013
5,440.00
3,600.00
3,600.00
3,000.00
2,100.00
17,700.00
2014
11,968.00
10,800.00
10,800.00
9,000.00
6,300.00
48,868.00
2015
13,165.00
14,400.00
14,400.00
12,000.00
8,400.00
62,365.00
Table 5: Income
It is assumed that half of the inventory of hair accessories will be sold in 2013. Since this
is for half of the year the amounts in 2014 is doubled plus an increase of 10%. This 10%
increase continues in 2015.
Hair services are estimated to be ten (10) persons per service per month in 2013. Also, it
is anticipated that there will be fifteen (15) persons per month in 2014 and twenty (20)
persons per service per month in 2015.
6.10 SWOT Analysis

N&S is a new business and based on the fact that it is entering an existing market it will
face opportunities and threats.
The resources and competencies that are present at N&S Hairdressing Salon would allow
it to have a number of strengths.
The strengths of the business would be used to exploit the opportunities existing and
reducing the threats it faces.
6.10.1 Strengths
Young, energetic and adventurous young entrepreneurs who are willing to
succeed in the hairdressing business.
Competitive prices of hair styles and hair products
Comfortable and relaxing atmosphere with emphasis on quality services
Flexible working hours
6.10.2 Weakness
Inexperience in the hairdressing business
Lack of management skills
6.10.3 Opportunities
To expand the clientele to neighbouring parishes
To expand the services provided to the clients
9
To further the educational level of the hairdressers by using the internet and
attending training courses whenever they are available
To develop management knowledge and skills through the use of the internet and
local training opportunities available
6.10.4 Threats
Competitors who are already established and who have an established clientele
The state of the economy where the unemployment level is high
The demand by clients for credit rather than paying cash
7.0 Management Summary

N & S Hair Salon will be operated by two persons. Ms. Nazinga Charles will be the
Hairdresser and Manager while Ms Shinnelle Mc Intosh will be the Sales Clerk. Miss Mc
Intosh will also serve as the cleaner.
Manager (Ms. Nazinga Charles)
Cleaner/Sales Clerk (Ms. Shinnelle Mc Intosh)

7.1 Job Descriptions
Manager
Preparation of all financial records

Ensure all payments due to suppliers and all outstanding bills are paid on a timely
basis
Ensure the collection and recording of all income
Preparation of all stock records
Sales Clerk/Cleaner
Sell products to clients and other members of the public

Inform the Manager of the demand for certain products
10
Assist the Hairdresser in areas that are not technically difficult
Have the salon in a neat state that is comfortable for the customers
7.2 Personnel Background

Miss Nazinga has a Diploma in Cosmetology and has business knowledge from her
studies of Principles of Business at the CXC level. Both Ms. Charles and Ms. Mc Intosh,
have completed a 3 month training Programme at GIDC under the Caribbean Youth
Empowerment Program, where they attained adequate entrepreneurial training which will
assist them in managing and running the business.
7.3 Personnel Plan
During the first three year of operation N&S Hairdressing Salon would be staffed by just
two person. Miss Nazinga Charles who will serve as Manager and Hairdresser and Miss
Shinelle Mc Intosh will serve as Sales Clerk and Cleaner. Other staff members would be
considered based on the growth and success of the business.
Table 5: Personnel:
Manager/Hairdresser Nazinga Charles
Sales Clerk/Cleaner Shinelle Mc Intosh
Total Persons
Total Payroll
Year 1
6,000.00
4,200.00
2
$10,200.00
11
Year 2
14,400.00
10,800.00
2
$25,200.00
Year 3
16,800.00
13,200.00
2
$30,000.00
8.0 Financial Plan
8.1 Important Assumptions (This section contains a sample of assumptions)

General
All monetary figures in this assumption section are quoted in Eastern Caribbean
Currency (EC currency);
All services and sales are for cash. No credit was provided for
The business financial year begins January and ends in December;
It is assumed that products will be sold locally on an on-going basis directly to

major retail customers.
No increases in the cost of services are projected in the first three years.
Revenue
Service income is based on the assumption that N&S Hairdressing Salon would have ten
(10) clients per month for each different type of service offered. This will be increased to
fifteen persons per service in 2014 and twenty persons per month in 2015.
Table 4: Service Price
Service
Braiding
Weaving
Relaxing
Treatment
Price
$60
12
$60
$50
$35
Expenses
NIS Contribution for employees is calculated at four per cent (4%) of their
respective salaries and five (5%) per cent from the employer
Depreciation is calculated at 10% on all furniture, equipment and other fixed

assets.
The straight line depreciation method is used.
Assumptions are made on variable cost which is taken to be the average variable
cost of producing and selling pork and chicken. Selling price is also assumed as
an average of all products and services provided by the business
13
Inventory Turnover: Since this is a product based business primarily engaged in

purchasing animals for meat production minimum inventory is expected to be on
hand at the end of each month. For example, for a farm the main inventory will be
the animals maintained for breeding which will yield greater inventory growth
over the long run
Additional Notes and Assumptions:
Fixed Costs
Monthly Amount
Salaries
1,700.00
NIS Contributions
153.00
Rent
500.00
Loan Repayment
563.65
Cable
57.50
Total Fixed Costs
2,974.15
Cost of Goods
NIS is calculated at 9% for all employees
Inventory is calculated based on the assumption that 50% of the start up inventory
will be sold by the end of 2013. The opening stock for 2014 will therefore be 50%
of the start up inventory.
8.2 Break-even Analysis

Break-even is the point at which your revenues cover your fixed and variable costs and is
now contributing to profits. The list of costs considered as fixed are as follows:
14
Average Per cent variable cost: 60%

Breakeven amount = 2974.15/35% = $8,497.57.
This indicates that N&S Salon would have to generate $8,497.57 before it can start to
generate profits.
8.2 Projected Profit & Loss
15

N&S Hairdressing Salon
Pro forma Profit & Loss
Income:
Sale of Hair Accessories
Braiding
Weaving
Relaxing
Treatment
Total Income
Expenses:
Water
Electricity
Flow (Cable)
Rent
Salaries
NIS contribution
Miscellaneous expenses
Advertisements
Depreciation
Direct Material purchase
Total Expenses
FY 2013
5,400.00
3,600.00
3,600.00
3,000.00
2,100.00
17,700.00
FY 2014
11,968.00
10,800.00
10,800.00
9,000.00
6,300.00
48,868.00
FY 2015
13,165.00
14,400.00
14,400.00
12,000.00
8,400.00
62,365.00
1,000.00
1,300.00
690.00
3,000.00
10,200
918.00
200.00
60.00
400.00
850.00
1,500.00
20,118.00
1,100.00
1,980.00
1,380.00
6,000.00
25,200.00
2,268.00
200.00
0.00
0.00
1,700.00
1,200.00
40,848.00
Profit/(Loss) before interest and taxes
(2,418.00
)
8,020.00
1,210.00
2,178.00
1,380.00
6,000.00
30,000.00
2,700.00
200.00
0.00
100.00
1,700.00
1,400.00
46,868.0
0
15,497.00
Interest expense (loans)

Net Profit/(Loss)
1,158.02
(3,576.02
)
-23.03%
2,456.13
5,563.87
1,957.65
13,539.35
11.39%
21.71%
(3,576.02
)
0.00
(3,576.02
)
(3,576.02)
8,020.00
4,443.98
13,539.35
0.00
4,443.98
0.00
17,983.33
Net profit as a % of income

Retained Earnings
Add Net Income/Loss
Less Dividends
Ending Retained Earnings
16
8.3 Projected Cash Flow
N&S Hairdressing Salon

Pro forma Cash Flow
2013
2014
2015
Cash Inflows
Cash Sales & Service Income
17,700.00
48,868.00
62,365.00
Subtotal from cash from operations
17,700.00
48,868.00
62,365.00
Additional Cash Received

Long Term borrowings
25,924.00
Equity
3,860.00
Subtotal Cash Held
47,484.00
48,868.00
62,365.00
Loan payments
3,381.90
6,763.80
6,763.80
Total financing cash outflows
3,381.90
6763.80
6763.80
Expenditures
Principal repayments on loans
Operating cash flows
17

Water
1,000.00
1,100.00
1,200.00
Electricity
1,300.00
1,980.00
2,178.00
Cable
690.00
1,380.00
1,380.00
Rent
3,000.00
6,000.00
6,000.00
Salaries (Sales Clerk)
4,200.00
10,800.00
13,200.00
NIS Contributions
918.00
2,268.00
2,700.00
Miscellaneous expenses
200.00
200.00
200.00
60.00
Advertisements
400.00
Total Cash Operating outflow
11,768.00
23,728.00
26,958.00
Direct labour (Hairdressers salary)
6,000.00
14,400.00
16,800.00
Direct materials purchase
1,500.00
1,200.00
1,400.00
7,500.00
15,600.00
18,200.00
Subtotal cash spent
22,649.90
46,091.80
51,921.8
Net Cash flow
24,834.10
2,776.20
10,443.20
Opening Balance
24,834.10
27,610.30
Closing cash Balance
24,834.10
27,610.30
38,053.50
100.00
Cost of Products and Purchases
Projected Balance Sheet N & S Hairdressing Salon
18

Pro Forma Balance Sheet
ASSETS
2013
2014
2015
24,834.10
27,610.30
38,053.50
Refrigerator (cost less depreciation)
1,805.00
1,615.00
1,425.00
Equipment (cost less depreciation)
6,650.00
5,950.00
5,250.00
Furniture (cost less depreciation)
2,850.00
2,550.00
2,250.00
Television (cost less depreciation)
950.00
850.00
750.00
Radio (cost less depreciation)
95.00
85.00
75.00
Hair Dryer (cost less depreciation)
950.00
850.00
750.00
Shelves (cost less depreciation)
1,425.00
1,275.00
1,125.00
Sink (cost less depreciation)
760.00
680.00
600.00
Mirror (cost less depreciation)
665.00
595.00
525.00
Total Long Term Assets
16,150.00
14,450.00
12,750.00
Current Assets
Cash
Inventory
Total Current Assets
Long Term Assets
Total Assets
LIABILITIES & EQUITY
Current Liabilities
Long Term Liabilities:
19

Long Term Loan
24,263.77
19,956.09
15,149.94
4,443.98
17,983.33
Owners Equity
Capital
3,675.00
Retained Earnings
(4,076.02)
Total Capital
Loan Payments
Enter Values
Loan Summary
Scheduled Payment $
Scheduled Number of Payments
Actual Number of Payments
Total Early Payments $
Total Interest $
TotalLoan
Liabilities
Amount $& Capital
18,353.70
Annual Interest Rate
Loan Period in Years
Number of Payments Per Year
Start Date of Loan
Optional Extra Payments $
11.00 %
3
12
1/1/2013
-
600.88
36
36
3,277.86
Lender Name:
Pmt
No.
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
26
27
28
Payment Date BeginningBalance

2/1/2013 $
18,353.70 $
3/1/2013
17,921.07
4/1/2013
17,484.47
5/1/2013 APPENDIX
17,043.86
6/1/2013
16,599.22
7/1/2013
16,150.50
8/1/2013
15,697.67
9/1/2013
15,240.69
10/1/2013
14,779.52
11/1/2013
14,314.13
12/1/2013
13,844.46
1/1/2014
13,370.49
2/1/2014
12,892.18
3/1/2014
12,409.48
4/1/2014
11,922.36
5/1/2014
11,430.77
6/1/2014
10,934.67
7/1/2014
10,434.03
8/1/2014
9,928.80
9/1/2014
9,418.94
10/1/2014
8,904.40
11/1/2014
8,385.15
12/1/2014
7,861.14
1/1/2015
7,332.32
2/1/2015
6,798.66
3/1/2015
6,260.10
4/1/2015
5,716.61
5/1/2015
5,168.13
Scheduled
Payment ExtraPayment
600.88 $
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
Total Payment
$
20
600.88 $
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
600.88
Principal
Interest EndingBalance
432.63 $
436.60
440.60
444.64
448.72
452.83
456.98
461.17
465.40
469.66
473.97
478.31
482.70
487.12
491.59
496.09
500.64
505.23
509.86
514.54
519.25
524.01
528.82
533.66
538.56
543.49
548.47
553.50
168.24 $
164.28
160.27
156.24
152.16
148.05
143.90
139.71
135.48
131.21
126.91
122.56
118.18
113.75
109.29
104.78
100.23
95.65
91.01
86.34
81.62
76.86
72.06
67.21
62.32
57.38
52.40
47.37
17,921.07 $
17,484.47
17,043.86
16,599.22
16,150.50
15,697.67
15,240.69
14,779.52
14,314.13
13,844.46
13,370.49
12,892.18
12,409.48
11,922.36
11,430.77
10,934.67
10,434.03
9,928.80
9,418.94
8,904.40
8,385.15
7,861.14
7,332.32
6,798.66
6,260.10
5,716.61
5,168.13
4,614.63
Cumulative
Interest
168.24
332.52
492.79
649.03
801.19
949.23
1,093.13
1,232.84
1,368.31
1,499.53
1,626.44
1,749.00
1,867.18
1,980.93
2,090.22
2,195.00
2,295.23
2,390.88
2,481.89
2,568.23
2,649.86
2,726.72
2,798.78
2,866.00
2,928.32
2,985.70
3,038.10
3,085.48

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Final N &amp; S Business Plan

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N & S HAIRDRESSING SALON

Ben Jones Street

May 24th, 2013

Developed with the assistance of: Grenada Industrial Development Corporation

N & S HAIRDRESSING SALON

N & S HAIRDRESSING SALON

1.0 Executive Summary

2013 (6 months) 2014

N & S HAIRDRESSING SALON

2.3 Keys to Success

N & S HAIRDRESSING SALON

4.0 Start-Up Summary

N & S Hairdressing Salon

Total Current Cost of

Long Term Assets

N & S HAIRDRESSING SALON

Total long term assets

Total Start up costs

5.0 Market/Industry Analysis

N & S HAIRDRESSING SALON

6.5 Marketing Strategy

The targeted number of persons will be as follows:

Number of young ladies graduating

N & S HAIRDRESSING SALON

N & S HAIRDRESSING SALON

6.10 SWOT Analysis

N & S HAIRDRESSING SALON

7.0 Management Summary

Cleaner/Sales Clerk (Ms. Shinnelle Mc Intosh)

Preparation of all financial records

Ensure the collection and recording of all income

Preparation of all stock records

Sell products to clients and other members of the public

N & S HAIRDRESSING SALON

Assist the Hairdresser in areas that are not technically difficult

7.2 Personnel Background

N & S HAIRDRESSING SALON

8.0 Financial Plan

8.1 Important Assumptions (This section contains a sample of assumptions)

The business financial year begins January and ends in December;

It is assumed that products will be sold locally on an on-going basis directly to

N & S HAIRDRESSING SALON

Depreciation is calculated at 10% on all furniture, equipment and other fixed

The straight line depreciation method is used.

N & S HAIRDRESSING SALON

Inventory Turnover: Since this is a product based business primarily engaged in

Additional Notes and Assumptions:

Total Fixed Costs

NIS is calculated at 9% for all employees

8.2 Break-even Analysis

N & S HAIRDRESSING SALON

Average Per cent variable cost: 60%

N & S HAIRDRESSING SALON

Profit/(Loss) before interest and taxes

Interest expense (loans)

Net profit as a % of income

N & S HAIRDRESSING SALON

8.3 Projected Cash Flow

N&S Hairdressing Salon

Subtotal from cash from operations

Additional Cash Received

Subtotal Cash Held

Total financing cash outflows

Operating cash flows

Final N & S Business Plan

Final N & S Business Plan