Executive Summary of Hair Salon Business in Nigeria.
Overview
Patilad Hair Salon is a start-up company located at Ikeja, Lagos. Patilad is a unisex salon that expect to catch the interest of a regular loyal customer base with its full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products and furnishing an enjoyable atmosphere at an acceptable price/value relationship. The company plans to build a strong market position in the town due to the partners’ industry experience and mild competition in the area. Patilad Hair Salon aim to offer its products and services at a competitive price to meet the demand of the middle-to higher-income local market area residents. We will also maintain a friendly, fair and creative work environment which respects diversity, ideas and hard work.
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The Company
Patilad Hair Salon will be established as a limited liability company owned by Akinyemi Sarah and Ojulewa Femi. The company will be managed and overseen by Akinyemi Sarah, a seasoned beautician who has sixteen years’ experience in hair styling and have served in countless of salons all around Nigeria. The company’s main office is located at Ikeja, Lagos State. The leased office space should be sufficient for planned staff size growth within the first few years.
VISION
Our vision as a standard salon is to a one-stop location for accessing high quality, reasonably priced and convenient hair styling in a desirable and conducive environment while offering products at the best possible prices.
MISSION
To provide reasonably priced, convenient hair styling. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
By utilizing this multi-channel approach, we will be able to reach the niche market for quality personal care products rapidly and efficiently. We aim to build a very creative hair salon brand, where all and sundry can turn to so that their appearance can be enhanced.
Executive Summary of Hair Salon Business Plan in Nigeria
OBJECTIVES
- To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals.
- To satisfy the needs of our target market and support our company goals within six months.
- To generate a return on equity by the end of year 2020.
- To develop a sustainable start-up business, contributing to increased employment of community residents.
- Achieve an above median maintained margin rate by the end of year 4.
- To achieve net profit in year one, increasing in year two, by containing costs and meeting sales goals.
- To provide quality sales service and products at fair and best possible prices.
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.
- Reputation: reputation of the owner and other “beauticians” as providing superior personal service.
Products and Services
Patilad Hair Salon is a salon that allows both male and female folks to have their hair needs satisfied in one convenient visit. 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 Ikeja will generate a whole lot of profit that is why we want to key into the trend. We 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. We also offer consultancy service on any of our products and services. The benefits our products and services are high quality, varieties of products, prompt delivery services, excellent customer care service, online ordering for both training and products.
The Market
Everyone loves looking good and making one’s hair is one of the major pillars of looking good, there is hardly anyone who does not visit a salon or require their services at one point in time or the other. The Hair Salon industry in Lagos has recently experienced rapid growth and Patilad Hair Salon will position itself to cater for this fastidious market. The local customers are looking for high quality services in a relaxing atmosphere, where they can meet friends and refer family to. Patilad Hair Salon wants to establish a large regular customer base and will therefore concentrate its business and marketing on local residents, which will be the dominant target market. This will establish a healthy, consistent revenue base to ensure stability of the business. In addition, customer traffic is expected to comprise approximately 35% of the revenues. High visibility and competitive products and service are critical to capture this segment of the market. Without a shadow of doubt, a Hair Salon business is indeed a profitable business because it is a fact that people all over the world make use of Salon, and other hair products. The running cost for this type of business is pretty low and if you are able to secure a strategic high traffic location or a good shop in a shopping mall, you can be rest assured to take in good returns from your business. The industry is a thriving sector of the economy of Nigeria and most countries of the world and is responsible for the employment of well over 230, 572 people.
Executive Summary of Hair Salon Business Plan in Nigeria
Competition
In the true sense of the word, so many other competitors are in the same town, a couple of other Salon also exist in the neighbouring towns. Despite the similar business in the area, Patilad Hair Salon will contain a few beneficial strengths to make it more desirable than its competitors. The central location of our Patilad will be an additional value aspect of the company.
Patilad Hair Salon is launching a standard Salon that will indeed become the preferred choice of Ikeja residents. Our company is located in a corner piece property on a busy road and we have enough parking space that can accommodate well over 10 cars per time. At Patilad Hair Salon, it is a different ball game altogether, as maximum flexibility and sturdy customer attention is to a large extent guaranteed. without mincing words, we have 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. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.
Management Team
Akinyemi Sarah is highly knowledgeable in the hair salon business. She has over 16 years’ experience in the industry. The experience gathered will prove of immense value to her in the running of her business. She’s a graduate of vocational science from Yaba College of Technology, Lagos. She will be in-charge of day to day activities of the business.
Ojulewa Femi– is highly knowledgeable in the Hair Salon business. He has over 7 years’ experience in the industry. Moreover he is a graduate of Yaba College of Technology, Lagos. He is a Project Management Professional and certified Business Consultant. He will be in-charge of sales, management and distribution.
Mr Dayo Adetiloye – (B. Agric., MBA, and PMP): He has over 15 years’ experience in business management, business start-up dynamics, financial management of business and overall business growth and development. He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan African University (PAU). He is our business development strategist and a strategic partner.
We brought to the business:
- Educational skill and practical experience in Hair Salon business.
- Capacity to produce on a large scale.
- Valuable processing skills that make us own the value chain to a good extent.
- Our experience in the industry brings competence and credibility.
- Our staffs bring operational, marketing and promotional skills to the business.
Financial Considerations
Patilad Hair Salon seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business will be provided primarily by equity from the partners and investors.
Our market survey and research show that Patilad Hair Salon holds the promise of reaching positive cash flow in its 12th month of operation. The advantage of this is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.
Revenue is expected to amount to N12, 984,326 and profit N3, 592,736 in our first year of operation.
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