Business plan For Saryu Cutie& beautie palace for women beaty care

(Lakshmi Pujitha.S) (10123)

Contents
EXECUTIVE SUMMARY .................................................................................................................................. 2 BUSINESS DESCRIPTION ................................................................................................................................ 3 ANALYSIS OF THE MARKET............................................................................................................................ 5 MANAGEMENT TEAM ................................................................................................................................. 10 OPERATIONS ............................................................................................................................................... 12 RISK AND UNCERTAINTY ............................................................................................................................. 13 FINANCIAL PROJECTIONS ............................................................................................................................ 13

EXECUTIVE SUMMARY
The Saryu Cutie & Beauty Palace for Women, it sells instant designing and stitching of clothes, Herbal Beauty care Products for women. By providing more Infrastructural facilities, new designs, Speed delivery, beauty care products by assuring safety, product and service development, and marketing and geographic positioning. Coming to the Beauty Care herbal products, these products include herbal therapy packs, soaps, massage oil, face packs, moisturizers, herbal bath powder. We will get all the herbal beauty products from trusted suppliers to ensure quality and safety in the beauty care products. Herbal products have grown in popularity with consumers over the past ten years. Where once a customer would have to go to a specialty shop to purchase herbal products, now those same product are available at the local supermarkets. The demand has created a big opportunity for the industry for supplying herbal products to companies. Coming to women's clothing it is actually innovative thing here we will using instant design and stitching process, and that will goes like this all customer will have some requirement about their dress designs so we are providing that opportunity in our Saryu Cutie And Beauty Palace like they will come to our showroom and they will explain their interested design to our designers they will design that dress using computer or laptop and show that to the customer and if they like it they give that to our tailors they will stitch that very fastly, mean while they will go and do shopping our herbal beauty care products and know their importance from our companies
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beauticians. Ready to wear personal designing helps women to develop their personal styles and they will enhance our reputation. Saryu cutie n beauty palace will create awareness by campaigns, and improve sales by maintaining public relations. Additionally we will meet our customers where they are by doing mobile advertisement campaigns near apartments and shopping malls. We will have one advisory team that consisting of expertise in accounting, legal contracts, fashion and design and beauty care.

BUSINESS DESCRIPTION
Business Idea Garments & Cosmetics business has become a very profitable business in India. This business is growing day by day. People have become more style conscious nowadays. This has provided a lot of scope for Garments & Cosmetics business in India. With increase in competition we need to put in lot of efforts to come out with latest design and style. The better your designs are, the newer your concepts are the brighter are your chances to flourish. Here we will design the clothes by laptops and and using high technology scanners which involves RGB colors in that. Objective Create, nurture, and enhance customer relationships through problem and opportunity awareness, assessment of desired goals and results, and through routines and communications that constantly reinforce target relationships. Providing women garments and cosmetics products at an affordable price. Creating awareness by advertising in local newspapers and magazines . Vision Our vision is quite simple. We work each and every day to help people live in stylish way. We achieve our vision by helping people to discover their potential and achieve their goals

by offering better brands and opportunities for the future, and by sharing generously with the global community. Mission To deliver high-quality products in the areas like Garments and cosmetics. We want to be the vehicle for our customers employees to fulfill their dreams. We offer a way to look great and have fun by using our Garments & Cosmetic and make it possible for dedicated people to realize their career dreams. To provide women good quality, well-constructed fashions from prominent designers. To offer a variety of beauty care herbal products and highly fashionable clothing. To help women learn what clothing and styles go best with their unique personalities. To provide herbal products that heal, sooth and cleanse our customers.

Innovative Idea Innovative ideas usually need some explanation before they turn into actual innovation. Garments designing is one of those innovative projects thats worth explaining. Everyone will benefit, both fashion lovers and customers. Now days everyone became health conscious and want to be stylish, so we can catch that we can do it better by providing good quality. Instant stitching and designing the clothes according to the customers requirement using the technology for designing the clothes and delivering them on time, and in presence of beauticians giving suggestions to the customers which herbal products suits to which customer. My Capabilities Promotions and Advertising strategies are in a innovative way. A targeted strategy that closes the sale and delivers results. Building loyalty programs for the customers. Inventory Management is done in an effective way. To differentiate the customers requirements by identifying their needs. Maintaining good relationship with suppliers, customers, Designers and Beauticians.
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ANALYSIS OF THE MARKET

Market Analysis Summary Herbal products have grown in popularity with consumers over the past ten years. Where once a customer would have to go to a specialty shop to purchase herbal products, now those same products are available at the local supermarket. Currently, the industry can be divided into two segments: Herbal Health Products Herbal Beauty Products. There are various economic forces that affect garment retailers. Consumer confidence is the most important people don't shop when they are not feeling comfortable with shopping environment. Unemployment also has an effect, in that fewer women out in the workforce means less disposable income for high-end quality clothing. Thus, the large discounters are now working with top designers to bring designer apparel to the masses. Although they can't compete on quality, their continued development of the trend could have a direct impact on retailers who sell designer clothing during tough economic times.

Market Segmentation Herbal Heath Products: Here it is home to a number of small-to-medium size herbal heath product companies. All of these companies buy raw or finished product from thirdparty vendors. Their products are sold in health and natural food stores on the East Coast and Midwest. Herbal Beauty Products: Again here it is also home to a number of small-to-medium size herbal beauty product companies. All of these companies buy raw or finished product from third-party vendors. Most of their product are sold in health and natural food stores only on the East Coast. Garments: It is a huge and innovative market the more the designs you create innovatively and effectively the more customers will show interest to buy at our shop.

Market Needs Nowadays women are becoming more health conscious and they are preferring more of herbal products, so it is good to know us we can serve them to get better results. If you were to overhear women talking in a dressing room, you would more than likely hear them comment on something they've tried on and question how they should wear it or what it will go with in their closet. Research has shown that women are stressed, have little time to shop, and would generally like help in determining the right clothes and styles to wear. Television shows such as BBC's "What Not to Wear" and Style's "Fashion Emergency" clearly speak to a woman's confusion about what looks best on her. Even women who can afford a professional stylist feel helpless and often jokingly request that their stylist come to their home every morning to help them get dressed. One gender in particular influences the majority of the retail marketplace: women. Women comprise 51% and control or influence 81% of all household purchase decisions. [2] Women are now earning more college and master's degrees than men, which translates into more senior positions & higher pay. Balancing work and family are the concerns for women and almost half hardly ever take care of their personal needs one out of five women would like to have time to do a little shopping. Research indicates that women approach retail shopping uniquely by evaluating purchases based on product and company information derived from both personal and expert sources. Additionally, surveys consistently reveal that women buy based on the relationship they forge with a brand. Statistics, studies, and our own personal experiences show us again and again that excellent customer service lowers customer attrition rates, fosters excellent word of mouth and most importantly, increases sales. The table below shows that out of the ten characteristics consumers find important in deciding where to shop, four were attributed to customer service.

Target Market Segment Strategy Herbal health products dominate sales but herbal beauty products have been growing in popularity each year. There are lots of herbal health product companies that are competing for market share among consumers. Most of these companies are regionally focused but some
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percent of these companies distribute their products nationally. Most of these companies also only compete regionally though there are a handful that dominate the national market. As sales grow in herbal beauty product, more new companies will enter the marketplace.

Customers will learn about the our company through the following sources: Neighborhood. Friends & Customers (word of mouth and email) Personal shoppers and stylists Women's Fashion Magazines articles and reviews. Local press mentions & ads.

The Primary Customer The primary customer is a professional woman with a household income over 20000. Her main characteristics are listed below: Demographics

Professional woman (ages 30-55). Household income over 20,000. College-educated. Lives in a higher-income in our neighborhood.

Psychographics

Looks for bargains (seasonal fashion) but willing to spend money on quality, core items. Would like more time or help in understanding what clothing or what herbal products are right for her.

She wants to look her best because she wants to feel good about herself as well as make a good impression at her job.

Customer needs, expectations and buying patterns Our customer loves to shop and enjoys going to boutiques. She is knowledgeable about designer fashions and tends to shop for seasonal wardrobes and picks up various fashion and basic pieces throughout the year. By offering fashionable accessories and wardrobe organization items, Saryu will be able to grab a larger share of her wardrobe budget. She is used to coming into the store and browsing through the clothing items and trying on what interests her. She
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expects a warm and comfortable environment and nice dressing rooms. She enjoys being left alone but also enjoys the special touches of personal shopping assistance and having the ability to special order items.

Current Trends

People are shopping online for convenience & value growth of sales on the Internet. Overbuilding by specialty stores and other chains. Repositioning of full-price/multi-line department stores. Category-killer superstores. Continuous changes in demographics, tastes and fashions. Easy availability of consumer credit.

Economic, Cultural and Environmental Conditions Weather, seasonal events, holiday shopping, competitor marketing, tourism can affect the performance of garments and herbal products business. On a macro-economic level, consumer confidence, interest rates and inflation rates all have an effect. Rising unemployment, political concerns and deflation also pose risks. Positive Factors: Clothing Industry Very low interest rates Easy availability of consumer credit Relatively low unemployment, and very low inflation A relatively low personal savings rate Impact on Business Cost of financing low Higher ticket sizes on credit card purchases

Stable employees & businesses

Increased consumer spending

Negative Factors: Clothing Industry Weakening consumer confidence (influenced by global terrorism, tension & uncertainty) Slowly increasing unemployment Competition and Buying Patterns Quality and timeliness are the essential factors in being successful as a supplier to an herbal product company. A delay in delivery will impact the company's ability to meet delivery deadlines. Quality is also an important factor because word of mouth is one of the strongest marketing tools with herbal products and clothing business. The local success of an herbal product many times leads to a larger company procuring the product for their line. The popularity and customer satisfaction of these products was an important selling point. Impact on De Kliek

Decreased sales

Value and sale shopping

Products The product line of Herbal products in Saryu palace are:

Herbal Therapy Packs for back and neck pain and relief of muscle aches, filled with wheat berries and flax seed and 10 herbs. These are made of natural cotton or patterned flannel and can be heated in the microwave oven or cooled in the freezer for optimum benefit.

Oil for use as an anti-inflammatory or for burns. Eye packs in eye-pleasing patterns that help relieve sinus discomfort and eyestrain. Moisturizer for face and hands with various scented oils. Soaps created with such herbs as powdered balsam and rose petals marbleized throughout each cake, gently scented.

Herbal bath bags of lavender, peppermint, oatmeal and herbs. Bath powder made from arrowroot, cornstarch, rose petals and other herbs

The product line of Garment collection in Saryu palace are:

It will carry Ready to wear designer diffusion lines and casual apparel & accessories for women. Fashion Accessories: Designer jewelry, Handbags, Belts Sachets, Hangers Designer garments. Different Cloth materials for instant designing and other products for decorating dress after stitching. Various brands of jeans including, Lee Cooper, Levis, Denizen, Pepe Jeans, etc.

Competitive Edge The competitive advantage of Saryu palace is the consistent quality of the herbs that are at the core of each product. The products have been tested locally for years developing and establishing the customer satisfaction level demanded by Saryu palace. Coming to the designing of clothes its a huge and developing market if we have innovative idea and new designs then only we can survive in the market. Marketing Strategy Positioning Statement We provide professional women with upscale designer clothing and exclusive personal services. Our main competitive advantage is the unique Style Assessment and education emphasis in helping women develop their personal style. Brand Positioning Style Centre is added to the overall name to suggest that women can come to the boutique to learn about themselves and experiment with their personal style. Style Center looks to be the leader in providing exceptional service and assistance for women's fashion needs. The elegance of the name suggests the types of clothing and accessories that will be featured.

MANAGEMENT TEAM
Management Team Key Personnel
There will be 3 designers who design the garments according to the customer needs and 2 beauticians to take care of beauty care and giving suggestions about precautionary issues. Managers who looks after the showroom. Four employees by the end of the first year who looks
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after the showroom and can be increased in the next year. The manager will also be responsible for the taking the requirement of customers their interest for designing dress and their problem with the cosmetics. The Assistant Manager will be paid at a rate of Rs.20,000 and the two employees will be paid at a rate of Rs.15,000, plus benefits. Designers will be paid based on the price of the dress.
Personnel Plan Partners Assistant Manager Employees Total People Tailors Total Payroll Year 1 Year 2 Rs.2,500,000 Rs.3,000,000 Rs.2,40,000 Rs.2,40,000 Rs.1,80,000 13 Rs.1,50,000 Rs.2,910,000 Rs.1,80,000 13 Rs.1,80,000 Rs.3,000,000 Year 3 Rs.4,000,000 Rs.3,00,000 Rs.2,40,000 17 Rs.3,00,000 Rs.4,060,000

Description of the team

As a small business, we have a small staff. All partners will assume leadership roles within the company and will be responsible for daily operations, overseeing marketing efforts, buying merchandise and managing inventory and taking care of suppliers of herbal products which ensures safety to the customers and all other administrative duties. We will manage the day-to-day operations including supervising staff, maintaining inventory and bookkeeping. They will also work with our public relations firm to ensure superior marketing plans are in place and implemented. Organizational structure: Managing Director

Manager

Designers

Beauticians

Asst Manager

Tailors

Employees

Employees
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OPERATIONS
Location and Facilities The location of the showroom will be in an upscale area of Hyderabad, in Hi-tech City. The advantages of this location are that it is situated around the upper scale households and corporate, so it has easy accessibility to the target market. It will also attract women from

throughout other areas of Hyderabad as well as the few women who come to Hyderabad from out of town to shop. Technology Requirements It will require basic computer equipment to maintain customer database and to design women clothing . Apart from that it will require a system of bar coding and retrieval for all the labels on the apparel and accessories. Operating Methods / Procedures The operations of the business will be to service walk-in customers and any customers and their own designer dress will be delivered within less time. The customers will be approached by the Designers in the style centers to give them styling tips and beautician to give beauty tips and how to take care of that. At the back-end, our team of tailors will make the clothes based on designs given by the partners. Capital Expenditure The capital expenditure is Rs.5,,72,000 which is divided into: Furniture Rs. 3,50,000 and Office Equipment Rs.2,22,000. Particulars Salaries Electricity Maintenance Total Operating cost Year 1 Rs.2,910,000 Rs.1,00,000 Rs.45,000 Rs.3,055,000 Year 2 Rs.3,000,000 Rs.1,00,000 Rs.45,000 Rs.3,145,000 Year 3 Rs.4,060,000 Rs.1,00,000 Rs.45,000 Rs. 4,205,000

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RISK AND UNCERTAINTY

Potential problems Potential problems may rise are: Salary issues with the employees. Job satisfaction level of employees. Working environment conditions. Competitors may imitate our innovative ideas. Safety issues about herbal products.

Obstacles and risks Economic risks which could impact demand for clothing and herbal products. Changing market trends. Changing fashion and needs. Satisfying our customers with our innovative idea.

Uncertainty The sales forecasts projected are uncertain. They depend on a number of external factors like economy, industry growth etc, and they also include internal factors like inventory control, quality maintenance, good design and product delivery.

FINANCIAL PROJECTIONS
PRO FORMA PROFIT & LOSS(in Rs) Year 1 Sales 513,003 Direct Cost of Sales 205,320 Other Costs of Goods 0 Total Cost of Sales 205,320 Gross Margin 308,683 Gross Margin % 60.17% Expenses Payroll 130,500 Advertising 5,300
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Year 2 598,903 238,020 0 238,020 361,883 60.42% 122,000 4,800

Year 3 608,902 240,396 0 240,396 369,507 60.68% 137,500 4,800

Depreciation Interest Expense License & Permits Maintenance - Office Marketing and PR Miscellaneous Rent Repairs Security Supplies - Office & Store Telephone / Internet Access Utilities Payroll Taxes Employee Benefits Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

4,889 4,716 110 2,500 9,900 3,300 36,300 700 338 4,100 1,440 2,050 10,090 9,050 2,400 227,683 81,000 85,889 6,753 15,916 58,331 28.40%

4,889 4,716 0 2,500 10,500 3,300 36,300 700 345 4,100 1,440 2,050 10,515 9,150 2,400 219,705 142,178 147,067 5,963 31,329 104,886 44.07%

4,889 4,716 0 2,500 10,500 3,300 36,300 700 345 4,100 1,440 2,050 10,890 9,050 2,400 235,480 134,027 138,,916 5,138 28,891 99,998 41.6%

PRO FORMA CASH FLOW(IN RS.) Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
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Year 2

Year 3

420,500 420,500

455,300 455,300

543,300 543,300

0 0 0 0 0 0 0 420,500

0 0 0 0 0 0 0 455,300

0 0 0 0 0 0 0 543,300

Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance

Year 1

Year 2

Year 3

91,000 209,075 300,075

110,000 195,000 305,000

127,500 389,000 516,500

0 0 0 8,900 0 0 900 309,875 110,625 12,320

0 0 0 8,900 0 0 900 314,800 140,500 152,820

0 0 0 8,900 0 0 900 526,300 17,000 169,820

Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing
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Year 2

Year 3

66,300 20,618 4,991 0 91,909 0 0 0 91,909 Year 1 19,270 1,550

152,650 30,090 5,975 0 188,715 0 0 0 188,715 Year 2 17,836 2,680

306,368 42,812 6,665 0 355,845 0 0 0 355,845 Year 3 20,550 3,164

Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

0 20,820 0 20,820 3,665 ( 3,365) 8,862 9,162 31,982 59,927

0 20,516 0 20,516 3,665 7,497 28,510 39,672 60,188 128,527

0 23,714 0 23,714 3,665 30,007 34,216 67,888 91,602 264,243

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