Table of Content

1. Industry Overview

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

Our competitive advantage

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

14. Sustainability and Expansion Strategy

1
Why Start a Hairdressing Salon?

Have you ever wondered how much money hair dressers made in busy areas? If you
have, then chances are that you imagined they would be millionaires. Well, truth is
that indeed one could possibly become a millionaire by merely being a hair stylist
who owns a hair salon.

As a matter of fact, the art of looking good is one activity nearly all women love to
partake in. This is because of the point that they do not like to be seen as shabby
looking. It is for this reason that some women do not mind to go to any length to
look and feel good. One of the ways through which these women try to look their
best is by making sure they get all their beauty fantasies and desires adequately
met.

They see to it that they have the hair done, nails done; they get the best make up
and spa treatments amongst others. This is why the beauty salon business has come
to stay for a very long time to come.

There are countless number of women who have to change their hairstyles from
time to time. Some choose the once in a month option- especially if they have to
wear braids. Yet others want the two weeks or even weekly option. Whatever the
case may be, the reality is that there is mega cash in this trade.

The hair salon business is one business that you could start from just about
anywhere. It could be from a cubicle, a room, a kiosk, shop, or a gigantic building.
All that is highly required of you is the aim to make women beautiful with trending
hair styles. These women in turn wouldn’t mind to pay even if it costs an arm and a
leg. This is because they leave no stone unturned when it comes to staying beautiful
and attractive.

1. Industry Overview

Hair business in Africa, as well as in other parts of the world is a money making
venture. This is as a result of the seriousness that is being attached to the trade.

2
These days, more than ever before in the history of man, there are more people
who are taking to the trade. In Sierra Leone for instance, those who own hair salons
are considered as those who run essential services, since both men and woman are
known to want to care for their hair.

In Sierra Leone for instance; there are loads of women who have found a new lease
of life. These women try to make out a living for themselves, as such might not
readily be able to afford the luxury of hair making. This is because of the hair styles
that might be involved.

The hair styles that appeal to Africans are some of the very expensive arts that one
may want to shy away from. The white folks may so be exonerated from this, since
they are naturally endowed with very long and silky hair. The Africans on the other
hand may want to wear weaves, add hair extensions, weave the hair, and what have
you.

A beauty salon trade is one industry that promises to fulfill the fantasies and needs
of women who love to look and feel their best at all times. Some of the offerings at
a beauty salon include; hair perming, nail grooming, manicure, pedicure, fixing of
hair weaves, braiding, amongst many others.

It is important to note that most beauty salons also offer spa services. This is so that
they can give their clients an all-round beauty experience. There are around 50,000
beauty salons in Sierra Leone. Those who are employed to offer the services of the
nails are known as the hair stylists.

Beauty salons are also known to offer some skin beauty services. Some of these
services include; waxing, skin polishing, microderm abrasion and what have you.

Research has shown that those who work in the United States of America and other
advance countries make good money from it because of the teeming population of
people who seek the services of these beauty salons.

The training required for the beauty salon work is small and inexpensive; the work
does not require high level of qualification so far as you are able to communicate
with your clients without difficulty. In the same vein, the amount of capital is not

3
much compared with if you had to open some other businesses that needed a huge
capital base.

Many Africans for instance who reside in several parts in the world have taken to the
hair making trade. As such they set up hair salon businesses, so as to have a fair
share of the profits that this industry promises. It is without a shadow of doubt that
the business is oversaturated; as a matter of fact there are plenty of competitors
because nearly all Africans who reside in different part of the world get to make
their hair every now and then.

Overview

Patilad Hair Salon is set to redefine how neighborhood-based Hair Salon and beauty
business should be run, not just in Ikeja, but also in the whole of the Lagos. Hair
business in Nigeria, as well as in other parts of the world is a money-making
venture. This is as a result of the seriousness that is being attached to the trade.
These days, more than ever before in the history of man, there are more people
who are taking to the trade. In Nigeria for instance, those who own hair salons are
considered as those who run essential services, since both men and woman are
known to want to care for their hair.

The advent of hair making dates makes to time immemorial. Since the ancient times,
there has always been the need for women to look good. Fast forward today and
you will find that it hasn’t changed at all, and that is why there are several hair
salons that continue to crop up on a daily basis all over the world.

Our strongest selling point at Patilad Hair Salon is the unique strategy of offering
private services. We are passionate about putting smiles on the faces of our clients,
which is why we shall procure all equipment that will help us achieve just that. We
plan to launch out thoroughly, which is why we have also invested plenty of money
in making the environment where we plan to operate from very conducive. We
believe the aphorism that says ‘first impressions say a lot about a thing’ and that is
why our interior and exterior is well furnished to attract all and sundry.

4
Patilad Hair Salon will at all times demonstrate her commitment to sustainability,
both individually and as a firm, by actively participating in our communities and
integrating sustainable business practices wherever possible. We will ensure that we
hold ourselves accountable to the highest standards by meeting our customers’
needs precisely and completely. We will cultivate a working environment that
provides a human, sustainable approach to earning a living, and living in our world,
for our partners, employees and for our customers.

Business Description

Patilad Hair Salon is a unisex salon that allows the entire family to have their hair
needs satisfied in one convenient visit. Our services are offered on a walk-in basis or
by appointment. We will emphasize a customer-centric service where the customer’s
needs are always the priority. We also have a training arm where we train people on
how to run a successful Hair Salon business. It comprises of 5 weeks of lectures,
practical and hands-on training. The first company will be located in Ikeja, Lagos
state with aggressive growth plans of one new company every 12 months. By so
doing, we intend to cover the major cities in south-western Nigeria in ten (10) years.

Patilad Hair Salon is a new business and is about to start the business registration
process with Corporate Affairs Commission in Lagos.

Form of business:      Limited Liability Company

Owners of business:   Akinyemi Sarah, Ojulewa Femi

State of business:       New business

Opening days:             8:00 AM -10: 00 PM, Monday to Saturday.        

Business Development

Consultant:                  Shola Fakorede

Legal Adviser:             Ifepe Chambers.

5
2. Executive Summary

Introduction

Augusta HairDo is a hair salon that allows the both male and female folks to have
their hair needs satisfied in one convenient visit. Without disputing, there are quite a
number of quick fix salons like Augusta HairDo and we are set to make a difference.
We shall be offering private services where our hair stylists and barbers can go to
the homes of clients to have their hair problems solved. We know that home service
in a place like Freetown will generate a whole lot of profit that is why we want to
key into the trend.

Simply Cute Beauty salon is a classy beauty salon that will be opened in
Manhattan, New York, America. We have chosen New York because we think that it
would be an amazing opportunity to have the crème de la crème in the society and
in showbiz visit our nail hub.

The business will be run as a very standard beauty salon coy, and we shall see it
that all clients from old to young are given the very best of services. Our services
will cover areas such as; hair perming, relaxing of hair, manicure, pedicure, nail
painting, nail fixing, nail trainings, fixing of weaves, braiding, and the sales of other
beauty related stuff.

We are aware that businesses these days require diverse and sophisticated
approaches. This is why we will be sure to be abreast with the creativity and trend
which the trade is exposed to. We shall also be involved in the training of budding
entrepreneurs who may want to venture into this industry. Even though starting a
nail salon might look really pretty easy to start,   we intend to bring in strict
professionalism that will make up stand out.

Simply- Cute Beauty salon is primarily focused to help its clients look their very best
at all times. We would try as much as lies within our power to surpass the
expectations of people. Our prices would also be very affordable; we do not want to
scare our new clients away with our pricing. As a matter of fact, we plan to lower
our pricing so that we can gain good grounds within our startup period.

6
We plan to hire the best hands in the city of New York to help us drive our biasness.
This is one of the reasons why     who do not mind to pay our employees well
because we know that we are striving for a goal and that is the goal of gaining loads
of clients. In addition, much more than just satisfying our clients, we also want to
see new entrepreneurs empowered by us, as they emerge to start their own nail
salon business.

We shall also be involved in the sponsoring of various programs that are hosted in
the locality which we are located. Shows like fashion shows, hair exhibitions,
entertainment shows, amongst many others. This is o that we are able to give a
good account of ourselves as we launch out.

At Augusta HairDo beauty Salon, it is a different ball game altogether, as maximum

flexibility and sturdy customer attention is to a large extent guaranteed. Augusta
HairDo without mincing has plans in place to become the one stop hair salon when
satisfying her clients comes to mind. As such, we will sure gain significant market
share and create serious long-term relationships with our clients.

Keys to Success
The keys to success in our business are:

 Location: providing an easily accessible location for customers.

 Environment: providing an environment conducive to giving relaxing and

professional service.

 Convenience: offering clients a wide range of services in one setting, and

extended business hours.

7
  Reputation: reputation of the owner and other "beauticians" as providing

superior personal service.

The Company

Augusta HairDo is a hair business corporation, which is owned fully by Ms. Augusta
Abibatu Songo. It is located 10 Regent Road, Lumley. Ms. Augusta Songo is a
seasoned beautician who has many year experience in hair styling, and have serves
in countless of salons all around Sierra Leone. She will be responsible for the day to
day operations at the salon.

Activities such as hiring and training, purchasing, and retail sales are what she will
look into. She will also be responsible for hiring all the employees like the
receptionist, who will be responsible for receiving guests as they come in, the hair
stylists, the accountant/ cashier and what have you. There will also be other
workers- precisely six of them.

She will also use the incentive methods to reward hair stylists who are able to bring
in customers, as well as attend promptly and satisfactorily to the needs of the
clients. It is pertinent to state that at Augusta HairDo salon, we do not want to leave
any stone unturned, which is the reason why we shall meet all the hair needs of our
clients – both male and female. We will be in the trade of fixing weaves, braiding,
locking the hair, barbing the hair, as well as engaging in other things that makes the
hair beautiful.

As a way to keep attracting ample clients, we shall do well to always train our
stylists; this is so that they can continue to be abreast with all the styles that
abound. It is also vital to note that we shall open our doors to all status of people
(rich, poor, young, old or bi-sexual)

We are passionate about putting smiles on the faces of our clients, which is why we
shall procure all equipment that will help us achieve just that. We plan to launch out
thoroughly, which is why we have also invested plenty of money in making the

8
environment where we plan to operate from very conducive. We believe the saying
that says ‘first impressions say a lot about a thing’ and that is why our interior and
exterior is well furnished to attract all and sundry.

Augusta HairDo is owned by a seasoned hair stylist- Ms. Augusta Abibatu Songo and
she has all the right plans and projections for the business. From the very first time
she thought of owing a saloon, she began to garner skills about the hair salon trade.
These trainings have gone a long way to broaden her horizon, as well as train her to
be one the best hair stylists in the whole of Freetown.

3. Our Products and Services

At Augusta HairDo, the look is what matters to us, and we know that one couldn’t
possibly achieve the type of look they wanted, except they wore a nice hair Do. This
is why we have done our homework well and have come up with the type of services
that we will be offering the public. The services we shall render include;

Fixing of artificial nails

Braiding of hair

Fixing of weaves

Skin waxing

Skin polishing

Perming of hair

Manicure

Pedicure

Training of budding entrepreneurs

Sale of nail accessories

9
Sale of women accessories

Sale of makeup stuff

Fixing of Weaves

Braiding

Relaxing the hair

Barbing the hair

Dying of Hair

Manicure

Pedicure

perms

Curling

Reconstructing

Weaving

Waving

4. Our Mission and Vision Statement

Our vision is to provide our teeming clients with the best of beauty services, such
that is hard to experience in Manhattan, New York.

We strive to achieve this with our overly trained stylists and attendants and the
ambience which our beauty salon has to offer.

Our mission is to provide professional and creative service to our clients- thereby
meeting their beauty needs at all times.

10
Our aim in business is to be your one stop shop, where the hair and appearance of
our customers is uttermost.

Our mission is to build a very creative hair salon brand, where all and sundry can
turn to so that their appearance can be enhanced.

Our Business Structure

Augusta HairDo as stated earlier upon commencement is supposed to be a small

scale business, however, there are plans to upgrade as the business booms and
births other branches in and around Freetown. We intend to operate with the best of
structures in place, so that we can give our clients optimal satisfaction.

As a matter of importance, we plan to have a structure with the best combination

ever. This is because we are really particular about the quality of service that gets
offered. We know that the success of the business to a very large extent would also
be hinged on the type of people that are being hired to carry out services. It is for
that reason that we hire people to occupy the following positions.

Chief Executive Officer – Owner

Salon Manager – Hair Stylist

Receptionist

Accountant/ Cashier

Barber

Hair stylist 1

Hair Stylist 2

Cleaner

Greeter/ Security Man

5. Job Roles and Responsibilities

11
Chief Executive Officer (Owner):

 Responsible for providing direction for the business

 Creates, communicates, and implements the organization’s vision, mission,

and overall direction – i.e. leading the development and implementation of

the overall organization’s strategy.

 Responsible for fixing prices

 Responsible for recruitment

 Responsible for payment of salaries

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

 Prepares budget and reports for the organization

 Responsible for Training and Development in the organization

 Defines job positions for recruitment and managing interviewing process

 Carries out staff induction for new team members

Manger – Hair Stylist

 Carries out the vision, mission, and overall direction – i.e. leading the

development and implementation of the overall organization’s strategy

 Responsible for managing the daily activities in the salon

 Ensures that the facility is in tip top shape and conducive enough to welcome

customers

 Interfaces with vendors

 Handles procurement

 Supervises all activities in the salon

 Makes sure that customers are satisfied before leaving the salon
12
Receptionist:

 Makes sure that all clients waiting to make their hair are comfortable and well

attended to

 Welcomes potential and old clients into the salon

 Carries all other duties as directed by the manager

Accountant / Cashier:

 Collects payment for the services rendered

 Prepares financial report at the end of every working week

 Handles all financial transaction on behalf of the company

 Interfaces with our bankers

 Responsible for payment of tax, levies and utility bills

 Handles any other duty as assigned by the manager

Hair Stylist

 Sees to it that all clients are promptly attended to

 Makes nice hair styles for clients

 Carries out all other duties as assigned by the manager

Barber

 Manages the barbing arm of the saloon

 Handles any other duty as assigned by the manager

 Carries out all other duties as directed by the manager or CEO

Cleaner

 Sees to it that the salon environment is spic and span

13
  Opens up the office for business every day

 Is always on ground to clean and maintain the interior and exterior of

business.

Greeter/ Security Man

 Welcomes people as they make way into the salon.

 Opens up the door for those coming in

6. SWOT Analysis

At Augusta HairDo, we understand the need to be at the top of one’s game, which is
why we have gone ahead to identify our areas of strength and weaknesses. To a
very large extent, being conversant with this means that we have the opportunity to
up the ante when our services are involved.

We therefore thought that it was going to be a very nice idea if we employed the
best of consultant’s to help us carry this poll out, so as to be conversant with our
strengths , weaknesses , as well as the opportunities that we are faced with.

As such we got hold of Mr. Alhaji Daramy who is a renowned business consultant to
help us carry out these activities. It is pertinent to note that he did a very thorough
job. Here is the result we got from the SWOT analysis that was conducted on behalf
of Augusta HairDo Hair salon, Freetown.

Strength:

Augusta HairDo Hair salon is centrally located in Lumley, Freetown; our location is in
fact one of our major strengths because we have invested quite a lot in seeing that
we have the best hair stylists, as well as a top notch facility that can attract new
clients ( celebrities and non-celebrities) to us on a continual basis.

14
We believe that with our strength, we will be able to attract a good number of
people. The type of equipment that is procured is such that makes our work pretty
easy.

Weakness:

It is no longer news that the competition rate in the hair salon business is one of the
highest all over the world. It is for this reason that our weakness was realized. As
such; our weakness is solely hinged on the fact that there are loads of other
business owners who have delved into the hair making business in Freetown.

This means that we have to brace up for ample competition. Nonetheless, we shall
continue to do our best to see that we bridge a gap between our strength and
weakness.

Opportunities

Without mincing words, Lumley is one business centre that boasts of an avalanche
of clients. This is why we are located in such an area to start with. We know without
reservation that we shall attract all and sundry when we kick start operation.

Already the number of salons that are located in the vicinity where we plan to
operate doesn’t meet the full needs of the people. As a result, we know that with us
being there, and with the type of services we want to offer, and how we want to
offer them, we shall break even pretty soon.

Threat:

Some of the threats that are likely going to confront Augusta HairDo Salon might be
losing our clients to other competitors. If we win them over and are not able to give
them the best of services, then there might be likelihood that we lose them again.

15
This is one of the aims of wanting to even surpass the needs of the people so that
we can gladly continue to be at the top always.

7. MARKET ANALYSIS

Market Trend

It is true that lots of people want to look good, this is one of the major essences the
hair salon business came into existence. From the past times till now the number of
people who start this type of business daily, have continued to be on the rise.

This is because of the rewarding nature of the job and also the point that people
want to look good nearly all year round. As such, it can be said that this is one
business that when well located, can experience massive patronage all year round.

The Hair Salon market is a market that is solely dependent on one vital factor; and
that factor is that at least people- especially the female folk visit the salon nearly all
weekend. This is because of the need to wear different looks. These days’ salons
also incorporate other services like the manicure and pedicure services.

In other words, they kill more than a bird with just a stone. When a hair salon is well
positioned and have sent out the right words, plus have well trained workers, then
there will always be success achieved.

Quite a number of distinct trends have emerged in recent times in the beauty
industry which is why beauty salons are positioning their organizations to attract all
and sundry. As a matter of fact, this is one of the things that makes most nail
studios to spruce up their creativity level so that they

In this type of business, one of the things that could possibly make one stand out
from the competitive crowd is having a top notch customer service. If possible there
is the need to place a follow up calls to all clients from time to time. Those who are
known to   engage in such exercises have come to know that they attract more and
more clients as the days go by.

16
In addition, no matter how bad the economy may be, people still fund or rather still
deem it very important to have their nails done. This simply means that there would
be more money coming into the coffers of those who operate the business, even
though the economy bites hard at the people.

8. Our Target Market

Before choosing a location for Augusta HairDo Hair salon, we conducted our
feasibility studies and market survey and we were able to identify those who will
benefit greatly from our service offerings. Every detail is written in our hair salon
marketing plan.

Basically, those who will benefit from our service offering are adults- both male and
female, as well as children. This type of folks cut across various sectors of the
economy. Our target customers can be classified into different groups. We are set to
market our services in our neighborhood, talk to different people, corporate
executives, business owners, celebrities, amongst many others.

The target market which we are all out to serve are primary the female folks. This is
because of the fact that they are the ones who will leave no stone unturned in
seeing that they look their best. Whilst some may do this to continue to be attractive
to their partners, yet others cannot just do without looking good.

As such, our target market cuts across all sectors.  Also our beauty salon will have a
variety of practice areas to help budding nail manicurists grow. Our target market
cuts across women of different class and people from all walks of life, local and
international organizations as well.

We are coming into the industry with a business concept that will enable us work
with the highly placed people and celebrities in the country and at the same with the
lowly placed people and smaller businesses.  In other words, our target market is
the whole of the United States of America and subsequently other parts of the
world. Below is a list of the people and organizations that we have specifically
designed our services for;

17
Females in the Banks, Insurance Companies and other related Financial Institutions

Females in Businesses and Entrepreneurs

Mothers

Teenagers

College students

Corporate Executives

Business People

Parents and Guardian

Celebrities

Politicians

Teenagers

Students

Our competitive advantage

Starting a hair salon business might not be a huge task after all. As a matter of fact,
it is an easy to set up business that does not require formal training to achieve. This
means that you might even decide to get into this trade without training, provided
you will hire expert stylists.

Anybody can set this business up, if they have the required startup capital. It means
that the possibility of having countless hair salons is high, since getting the skill of
hair making can be maneuvered.

18
We aware of this which is why we are leaving no stone unturned in making our shop
a one stop arena. It is for that reason that we have decided to come up with a
business concept that will position us to become the leader in Freetown.

Our competitive edge is that we are a standard hair salon that has loads of expert
stylists that are on standby to meet the needs of the clients. Our business offerings
also will easily assist us in attracting the various clients that will look to attract.

We can confidently say that the location of Augusta HairDo will definitely count as a
positive for us, because we have decided to come to Lumley, where we intend to
attract the crème de la crème in the society, as well as all and sundry. Our services
will be customized to meet the needs of all our customers because we are aware
that there is loads of competition. That is why we shall keep training our team so
that \they can continue to give our clients the best at all times all year round.

Trend Setters wants to set itself apart from other beauty salons that may offer only
one or two types of services. Having come from such a salon, Curley has realized,
from talking with her clients, that they desire all of the services that we are
proposing, but they remain frustrated because they must get their hair done at one
place, and nails done at another. Although the focus of Trend Setters is hair
services, we do wish to offer our clients the convenience of these other services in
one location.

There are a number of salons like ours, but they are mainly in the very high income
parts of MyTown and surrounding areas. We do not intend to compete with these so
called "Day Spas." We wish to offer a middle ground for those clients who can't quite
afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where clients can kick back and be
pampered. Soft drinks will be offered to clients as they enter for service. Televisions
will be located in the waiting and hair-drying area.

A close study of the beauty industry reveals that the market has become much more
intensely competitive over the last decade. As a matter of fact it is becoming really
tough to break even in this market because of the number of people who are in it.

19
However, we are also aware that this hasn’t deterred people from braking even and
smiling to the bank. This is one of the reasons why we have added other services
that are beauty related, this is so that we do not miss out in any way.

Beauty salon may be a new entrant into the business beauty industry in the United
States of America, but the management staffs and board members are considered
gurus. They are people who are core professionals and licensed and highly qualified
beauticians in the United States. These are part of what will count as a competitive
advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category in the industry meaning ;that they will be more
than willing to build the business with us and help deliver our set goals and achieve
all our aims and objectives.

9. SALES AND MARKETING STRATEGY

Our marketing strategy is a simple one: satisfied clients are our best marketing tool.
When a client leaves our business with a new look, he or she is broadcasting our
name and quality to the public. Most of our clients will be referrals from existing
clients.

No major advertising campaigns are anticipated. Our research has shown that word
of mouth is the best advertising for this type of business. We will, however, run
specials throughout the week. We will also ask clients for referrals, and reward them
with discounted or free services depending on the number of clients they bring. We
will also offer discounts to the new clients who have been referred. There are plans
for a lottery that will offer a free trip to, say, Cancun. A client would simply refer
new clients to us, and we will place a card in a box for each client he or she brings.
The more they bring, the more chances they have of winning the trip.

Sources of Income

20
It is the wish of every business to generate income at all times and our beauty salon
is one of such businesses. Simply – Cute beauty Salon is established with the aim of
maximizing profits in the beauty industry and we are going to go all the way to
ensure that we do all it takes to attract clients on a regular basis and sign retainer –
ship with most of our clients.

Hence, there are several ways through which we plan to make this money at all
times. Simply- Cute beauty salon will generate income by offering the following
services;

Augusta HairDo Salon business will generate income from the following service
offerings;

 Perming

 Weaving

 Braiding

 Washing and dressing of hair

 Fixing of artificial nails

 Hair cuts

 Manicure

 Pedicure

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during
our feasibility studies and also some of the assumptions readily available on the
field. We render hair services to about 50 people a day, and about 350 people every
week.

There will always be a need to do some business and sales forecasting as a

business. This is because of the drive it gives one to achieve it. In the same vein,

21
simply- Cute beauty salon has several sale projections that we will be all out to
achieve. For as long as there are female folks in New York, we know that we will be
able to reach our sales goals in no distant time.

We are well positioned to take on the available market in the U.S. and we are quite
optimistic that we will meet our set target of generating enough income / profits
from the first six month of operations and grow the business and our clientele base
beyond New York City, New York to other states in the U.S. and even the global
market.

We have been able to critically examine the beauty market and we have analyzed
our chances in the industry and we have been able to come up with the following
sales forecast. The sales projection is based on information gathered on the field
and some assumptions that are peculiar to startups in New York.

Then about 1, 500 people in a month and then about 20,000 people in the first year.
Apart from the hair services for male and female, our additional manicure and
pedicure services will also help generate more income. Below is the sales projection
for Augusta HairDo Salon, it is based on the location of our business and the
services and products that we will be offering;

First Year-: Le 100,000,000

Second Year-: Le 250,000,000

Third Year-: Le 400,000,000

N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any salon offering same additional services within
4.5 miles radius from our salon.

Marketing Strategy and Sales Strategy

22
The marketing strategy for Augusta HairDo salon is going to be driven basically by
excellent customers service and quality service delivery. We will ensure that we build
a loyal customer base. We want to offer the best services to our customers, so that
they can readily help refer folks who might be in need of our services.

We are not undermining the fact that first impressions lasts a great deal which is
why we have put everything in place to see that we give each client a wow moment
so that they can unreservedly ell others.

We are a salon that is strategically located in Freetown and we are going to

maximize the opportunities that are available, which is why we spend more to locate
the business in a location that will be visible and accessible to plenty of people. We
will adopt the following means to attract the kind of people that we look forward to
be our clients. Part of the marketing and sales strategies that we will adopt is;

We are mindful of the fact that there is stiffer competition amongst nail salons in
United States of America; hence we have been able to hire some of the best
business developer to handle our sales and marketing. Our sales and marketing
team will be recruited based on their vast experience in the industry and they will be
trained on a regular basis so as to be well equipped to meet their targets and the
overall goal of the organization.

We will also ensure that our excellent job deliveries speak for us in the market place;
we want to build a standard beauty business that will leverage on word of mouth
advertisement from satisfied clients (both individuals and organizations).

Our goal is to grow our beauty salon to become one of the top 20 salons in the
United States of America which is why we have mapped out strategy that will help
us take advantage of the available market and grow to become a major force to
reckon with not only in the U.S but in the world stage as well.

Simply – Cute beauty salon is set to make use of the following marketing and sales
strategies to attract clients;

23
 Introduce our business by sending introductory letters alongside our brochure
to organizations and key stake holders in New York and other parts of the
U.S.

 Advertise our business in relevant business magazines, newspapers, TV

stations, and radio station.

 List our business on yellow pages ads (local directories)

 Attend relevant international and local expos, seminars, and business fairs et
al

 Create different packages for different category of clients.

 Leverage on the internet to promote our business

 Engage direct marketing approach

 Encourage word of mouth marketing from loyal and satisfied clients

 Open our Augusta HairDo Salon with a big shindig.

 Advertise our salon business on Newspaper for men and women, in business

directories and local radio station

 Promote our business online via our official website and all available social

media platforms

 Continuously improve the performance of our services

 Hire the services of experts to make our Augusta HairDo salon brand known

in Freetown.

 Deliver consistent customer experiences to all our guest; making our first

impression count positively

24
  Make use of attractive hand bills to create awareness and also to give

direction to our salon

 Position our signage / flexi banners at strategic places

 Create a loyalty plan that will enable us reward our regular customers

 Engage on road shows within our neighborhood to create awareness for our

salon business.

Management Summary

Trend Setters will be organized and managed in a creative and innovative fashion to
generate very high levels of customer satisfaction, and to create a working climate
conducive to a high degree of personal development and economic satisfaction for
employees.

Training classes to help improve employee product knowledge and skills will be
conducted on a regular basis. As the business grows, the company will consider
offering an employee benefit package to include health and vacation benefits for
everyone.

Personnel Plan

The personnel plan calls for a receptionist who will greet customers and receive
payments for services and products. There will be five hair stylists, one barber, one
nail technician, one facialist, and a massage therapist. Everyone but the receptionist
will be contract workers, and will be paid a sliding commission scale based on the
amount of revenue created. Future plans include the hiring of a shampoo technician
as the business expands.

In the first year, assumptions are that there will only be three hair stylists, a barber,
and part time nail, facial, and massage technician until the business can build a
reputation that will attract others to work there.

25
11. Publicity and Advertising Strategy

We know the importance of having our business in the faces and on the lips of every
one: that is why we shall continue to work at ways to have the best marketing plans
that can sure help us beak even within a short period of time. Already, there are
tons of hair salons in Freetown that have become a household name. This is why we
have got to look at ways to matchup the strategies of these competitors.

Augusta HairDo Salon is set to create a standard for hair salon business in Freetown
and through Sierra Leone, which is why we will go all the way to adopt best
practices to promote our business. Good enough there is not hard and fast rule on
how to advertise or promote our brand. One of the difficulties being encountered
might be that hair salons might not have the required money to pump into publicity
and advertising.

We will ensure that we leverage on all conventional and non – conventional publicity
and advertising technique to promote our business. Here are the platforms we
intend leveraging on to promote and advertise Augusta HairDo Salon in Freetown;

 Encourage our loyal customers to help us use Word of Mouth mode of

advertisement (referrals)

 Advertise our hair salon business in automobile magazines, local newspaper,

local TV stations and local radio station

 Promote our business online via our official website

 Sponsor community pageants and fashion shows

 Leverage on the internet and social media platforms like; Instagram,

Facebook, twitter, Whatsapp, Tiktok et al to promote our brand

 Install our Bill Boards on strategic locations

 Engage in road show from time to time

 Distribute our fliers and handbills in target areas

26
12. Our Pricing Strategy

We know the importance of gaining entrance into the market by lowering our pricing
so as to attract all and sundry that is why we have consulted with experts and they
have given us the best of insights on how to do this and effectively gain more clients
soon.

Our pricing system is going to be based on what is obtainable in the industry, we

don’t intend to charge more (except for premium and customized services) and we
don’t intend to charge less than our competitors are offering in Freetown.

Be that as it may, we have put plans in place to offer discount services once in a
while and also to reward our loyal customers especially when they refer clients to us.
The prices of our products will be same as what is obtainable in other places. On the
average, our hair services will cost between Le 50,000 to L 200,000 per service
rendered. Do bear in mind that this depends on the service rendered.

One of the ways through which we know that we will be able to get more clients
within a short period of time is when our pricing is on the moderate level. Being on
the moderate level means that we are able to maximize profit in a ways that doesn’t
put holes in the pocket of pour clients.

As such, we are looking at lowering our price a bit below that of our competitors, so
that we can gain good grounds in the market and become a house hold name and a
force to reckon with. This is very important because when our pricing becomes too
high, the clients may have the options of switching over to our competitors and we
do not want that to happen in any way.

So, we are poised to keep our fees below the average market rate for all of our
clients by keeping our overhead low and by collecting payment in advance. In
addition, we will also offer special discounted rates to newbies and clients who have
some special occasions like Birthdays.

This means that for clients whose special days we remember, we will invite them
over to the salon on that special day and then offer our services for free to them.

27
We will also make sure that we do not lower our quality in any way because we are
offering these services for free.

We are also aware that there are some clients that would need regular home
services, as well as need some consultancy and advisory services and assistance on
how they can launch their own beauty salon business, we will offer flat rate for such
services that will be tailored to take care of such clients’ needs.

Payment Options

Our payment policy is all inclusive because we are quite aware that different people
prefer different payment options as it suits them. Here are the payment options that
will be available in every of our pub;

Payment by cash

Payment via Point of Sale (POS) Machine

Payment via online bank transfer (online payment portal)

Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve
our payment plans without any difficulty.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital on;

The Total Fee for Registering the Business Lumley, Freetown: Le2m.

Legal expenses for obtaining licenses and permits: Le1.5m.

Marketing promotion expenses (2,000 flyers at Le2,000 per copy) for the total
amount of Le500,000.

28
Cost for hiring Consultant – Le1m.

Insurance (general liability, workers’ compensation and property casualty) coverage

at a total premium – Le5m

Cost for leasing facility for the salon: Le20m.

Cost for facility remodeling – Le10m.

Other start-up expenses including stationery – Le2m

Phone and utility deposits Le2m

Operational cost for the first 3 months (salaries of employees, payments of bills et
al) – Le10m

The cost for Start-up inventory – Le5m

Storage hardware (bins, utensil rack, shelves, glasses case) – Le2m

Cost for serving area equipment ( glasses, flatware) – Le1m

Cost for store equipment (cash register, security, ventilation, signage) – Le2.5m

Office equipment (vacuum cleaner et al)- Le500,000

The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone,
TVs, Sound System, hair dryers, steamers, clippers, and chairs et al): Le5m.

The cost of Launching a Website: Le1m

The cost for our grand opening party: Le3m

Miscellaneous: Le6m

We would need an estimate of Le80 million to successfully launch our all-round Hair
saloon business in Freetown.

Generating Funding / Startup Capital for Augusta HairDo salon

29
This salon is a family business and it will be financed by the owner who is also a hair
stylist. These are the areas where we intend sourcing for fund for our business.
They include;

Generate part of the start – up capital from personal savings and sale of his stocks

Generate part of the start – up capital from family members and friends (soft loans)

Generate a larger chunk of the startup capital from the bank.

Financial Plan

Our goal is to be a profitable business beginning in the first month. The business will
not have to wait long for clients to learn about it since the stylists will already have
an existing client base.

To assure the start-up funds lender that the owners are financially stable, a personal
financial statement is enclosed illustrating other sources of income that include
interest and dividend income from investments ($2,840), salary income ($29,658),
and commission income ($15,000).

Important Assumptions

The financials that are enclosed have a number of assumptions:

Revenues will grow at an annual rate of 15%, increasing 20% in November and
December due to a historical jump in revenues at this time of year. We anticipate
this increase to stay steady throughout the following year to account for the normal
flow of new clients coming into the salon. Estimates for sales revenue and growth
are intentionally low, while anticipated expenses are exaggerated to the high side to
illustrate a worst case scenario.

We did not use cost of goods sold in our calculations of net service sales, but
included all related recurring expenses, such as payroll and supplies, in the operating
expenses area of the profit and loss table. The only direct costs in the sales forecast
are for projected product sales.

30
Product sales are a minimal part of our market. We are not quite sure how much
revenue will be derived from products, so we took a low-ball approach and
estimated sales of $800 a month.  Also in the sales projections table are services
such as nails and massages. We are not quite sure how much revenue these two
services will generate. We are certain that in time these services will be a large part
of our revenue, but to err on the conservative side, we estimate revenues from
these services to be only $1,500 a month for the first year.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Augusta HairDo business is to ensure
that we continue to deliver quality services, improvise on how to do things faster
and cheaper. We are not going to relent in providing conducive environment for our
workers and also the required trainings that will help them deliver excellent services
at all times.

From our findings, another factor that kills new businesses is financial leakages. In
order to plug financial leakages, the management of Augusta HairDo salon will adopt
the use of payment machine and accounting software to run the business.

We are quite aware that our customers are a key component to the growth and
survival of our business; hence we are going to continuously engage them to give us
ideas on how to serve them better. We will not waste time in diversifying our
services; expand our product and service offerings once the need arises.

We shall make sure we get it really right first with our first branch of Augusta HairDo
in Lumley, Freetown, before we delve into replicating the same standard in other
places. It is so important to take that step so that we are able to see the success
rate first.

Check List / Milestone

Business Name Availability Check: Completed

31
Business Registration: Completed

Opening of Corporate Bank Accounts: Completed

Opening Mobile Money Accounts: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payer’s ID: In Progress

Application for business license and permit: Completed

Purchase of Insurance for the Business: Completed

Acquiring facility and remodeling the facility: In Progress

Conducting Feasibility Studies: Completed

Generating capital from family members: Completed

Applications for Loan from the bank: In Progress

writing of business plan: Completed

Drafting of Employee’s Handbook: Completed

Drafting of Contract Documents and other relevant Legal Documents: In Progress

Design of The Company’s Logo: Completed

Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In

Progress

Recruitment of employees: In Progress

Purchase of the Needed equipment, electronic appliances, office appliances and bar
accessories: In progress

Creating Official Website for the Company: Completed

Creating Awareness for the business both online and in the neighborhood: In
Progress

32
Health and Safety and Fire Safety Arrangement (License): Secured

Opening party / launching party planning: In Progress

Establishing business relationship with vendors – suppliers of all our needed carwash
accessories, drinks, and tobacco et al: In Progress

33