A BUSINESS PLAN: AN OUTLINE

Name: Hair Care Corner D.O.O. The hair accessories center Owner: Marina Gavrilovic Address: 5, Carapiceva, Zajecar 19000, Serbia Phone number: +381 19 44 27 52, +381 64 20 60 151 E-mail: narcisss89@gmail.com 1.0 EXECUTIVE SUMMARY 1.1 OBJECTIVES The main objectives over the next 6 (six) years for Hair Care Corner are: - To import quality and renowned hair products from the official companies and distributors; - To present the best possible palette of hair products; - To offer other products concerning hair styling, such as: hats, caps, and other kinds of head-ware - To generally provide the highest quality products in the region of Eastern Serbia. 1.2. MISSION The mission of Hair Care Corner is to provide an excellent chance for people of all ages to buy products of the ultimate quality. Therefore, our mission is to become a leading hair product seller of the region. 1.3. KEYS TO SUCCESS The stores staff has pointed out the following key elements to success:
- To become the leading hair care center in the eastern part of the country first; - To do their best to spread successfully over Serbia over the time of 6 (six) years first; - To collect the feedback information in order to improve the organization as much as possible and as fast as possible; - To pay special attention exclusively to the costumers personal satisfaction from our products this should eventually bring the centers reputation and credibility to the very high level; - To work in collaboration with companies and retailers from the UK, the US, and various Balkan companies, such as those from: Romania, Greece, Croatia, Montenegro, Bosnia and Herzegovina, FYR of Macedonia, Hungary, Bulgaria and Slovenia. Working closely and constantly with them all in order to control the quality of the centers products quality would eventually improve and ensure the overall business.

2.0. COMPANY SUMMARY 2.1. COMPANY OWNERSHIP

Hair Care Corner is involved in numerous activities in connection with distribution of hair products thus improving its liability constantly. There are 5 (five) fulltime workers. However, the whole business lies in the hands of the centers owner, Ms. Marina Gavrilovic. Hair Care Corner will be owned by Ms. Marina Gavrilovic and will be set up as a Limited Liability based in Zajecar (Serbia). Product distribution in general is quite a responsible task to accomplish successfully since it requires significant dedication to work and time investment, among all, knowing that each costumer is different and needs to be advised and served differently. Also, selling is a highly sensitive endeavor itself; it is possible for a profit to be achieved during only a couple of months of the first year yet the expenses are spread out over the entire twelve months. It is hence important to have a significant amount of money at the beginning. The center itself will be financed by the assistance loan. This should eventually provide sufficient income for the center until it becomes able to make its own profit. 2.2. COMPANY LOCATIONS AND FACILITIES Ms. Marina Gavrilovic possesses three large rooms within her house in the downtown of Zajecar, Serbia. This is the best suitable area of the city and therefore the best possible location for a business center like this. Important city sights are in its neighborhood as well. In addition to this, this area is excellent for the reason that there is quite enough traffic, all the 4 (four) secondary schools, 2 (two) elementary schools and many other companies are situated here so the needs of different types of costumers will be satisfactorily fulfilled.
3.0. PRODUCTS AND SERVICES 3.1. PRODUCT AND SERVICE DESCRIPTION Hair Care Corner is planning to offer selling and distribution services concerning hair products. Once profitability is established by giving these basic services to the clients/costumers/buyers, the center will start to spread across the country. Also, the owner (together with other associates) will dedicate the time to the process of improving work conditions for the staff and the quality level of the services for the costumers. The grand opening should take place in February and there will be a few store sections depending on the number of hair products overall classification done by the staff and the level of their general popularity here in Zajecar (and whole East Serbia), which will be decided upon the survey done by the local media stations journalists and representatives.

Marketing will aim at the centers new distribution system promotion and introducing the new principles and types of services in selling the products. In addition, we have arranged to make contracts with foreign hair care companies, centers and stores. The intention is to ensure the quality our system is to give to our costumers as well as to

ensure the authentic environment for owning, improving and spreading this type of business.
3.2. TECHNOLOGY Since this is a selling store, this part will be dedicated primarily to the selling principle itself; the employees are about to give costumers all the needed information concerning the item they are about to purchase. The atmosphere is planned to be highly lively without waiting for the shop assistances to check an item first in the catalogue while the customers wait for the information they want to gain in order to decide whether to buy it or not. Here we are interested in our costumers complete satisfaction during the browsing experiences, expecting them to make the right choices and feel free to talk to our workers whenever in doubt about an item.

4.0. MARKET ANALYSIS SUMMARY 4.1. MARKET NEEDS

People purchase hair care products worldwide. There are numerous shops and sections within enormous supermarkets that are authorized to sell them. They give people a chance to test some of the products to decide more easiliy whether to buy the item or not. People from this region need to experience the possibility of tasting the product before deciding anything about it. High technology dictates todays world. Therefore, we want to promote such facilities here as well in order to improve ourselves and make progress so that we eventually make personal profit from it. Specialized hair products are being poorly sold and distributed in Serbia; there are just a few fully authorized centers Belgrade, Novi Sad and Nis, to be specific giving services of this kind. However, what people really need is a place to hear, see, watch and ask about the worlds newest trends that would eventually lead towards the both-sided success and satisfaction.

4.2. MARKET TRENDS

The Hair Care Corner staff plans to spread the business first in the eastern area of Serbia and later on to spread it all across the country including first the bigger cities and then as many as possible, depending on the countrys political, economical and financial position in the period to come. We also plan to make high-quality commercials and advertisements for the local television and radio stations which would both help us and our future costumers to step into the world of hair care, especially the ones who are unable to find us on their own. Also, we are in the process of creating our official website as a way of our permanent public presentation apart from radio and TV commercials/advertisements and presentations/promotions.

4.3. MARKET GROWTH

Our center intends to offer its services to the people of this region only at first since we consider Serbia to be a key country in the whole Balkan region. We have a long-lasting cooperation with many companies outside Serbias borders and hair specialists and professionals; therefore, for the time being, we do not experience any difficulties concerning the ways and approaches to different types of people and their taste. Hair Care Corner started this business in

order to achieve the highest standards of quality for the introduction of hair products is a major development opportunity and a significant business challenge for both us and the people, our future (potential) clients.

4.4. MAIN COMPETITORS (GOOD AND BAD SIDES)

The largest and quite successful stores of this kind in Serbia are located in Belgrade, Novi Sad and Nis. Some of those stores exist for more than 10 (ten) or even 15 (fifteen) years and are approved by the big sellers. Our potential collaboration with some of them would be a step into the system of the hair products distribution in Serbia yet that is not enough for us to have many costumers, so our center has to give its best to improve and prove its credibility and proficiency.

5.0. STRATEGY AND IMPLEMENTATION SUMMARY 5.1. MARKETING STRATEGY (TARGET MARKET AND POSITIONING) Marketing is a crucial factor to consider before stepping into a business like this one. A certain new approach needs to be in accordance with the peoples needs. In view of current prices at our market, this business may face difficulties in justifying itself and trying to reach a certain level of credibility because of the risk involved. However, since this is a company business, it provides better returns than the regular ways of making copies and selling them which is, first of all, illegal and subdued to law privacy policy. For getting better work done and higher profit made, the location itself is very important and needs to be in relation to an adequate population base. 5.2. PRICING STRATEGY We aim at becoming accepted by costumers, regardless of our competitors, be they more or less experienced and/or successful. Our goal is to win with a low cost but the highest possible quality of selling/distribution. 5.3. PROMOTION STRATEGY In order that our services reach our (future) costumers successfully, the center will bring the message about our services through various media to create a positive image of our center. By stepping into it, the possible costumers will make the best and right choice. 5.4. DISTRIBUTION PATTERNS
Since hair products are being sold and needed all around the globe, our main objective is to attract as many business associates as possible; this means that we are planning to attract people from various layers in order for them to present our center later. For instance, amateur and professional hair stylists are in great need of quality hair products today; they tend and are also required to learn more and improve themselves daily and constantly. Therefore, we will be tending to attract different people like them since they will be able to present our center the way it

is supposed to be and their type/area of work is the most suitable for our quality presentation. That would eventually lead to our spreading across the country; Serba is a country that is in the process of rising and services like ours will be needed in the years to come. Our owner, Ms. Marina Gavrilovic already has been contacted by a few local stylists, which means that many professionals are to be our potential costumers and thus spread the word about us later on through their public work and within their private circles.

6.0. MANAGEMENT SUMMARY 6.1. ORGANIZATIONAL STRUCTURE Hair Care Corner will be led by Ms. Marina Gavrilovic and the 4 (four) associates/co-workers: Mr. Milan Milojkovic an IT professional, Ms. Milica Jovanovic, an hair stylist, Ms. Marija Randjelovic, an accountant and Mr. eljko Gavrilovic a shop assistant/salesman all of them being the full-time workers. If in need, the center will hire contract workers or undergraduate students as part-time workers to assist them at minimum wage. These part-time workers will probably number no more than 4 (four) in such situations again if/when needed. All accounting and bookkeeping will be outsourced. 7.0. FINANCIAL PLAN 7.1. PROJECTED START-UP COSTS Owning a hair-care-center store is a capital intensive type of business that requires significant investment in long-term assets such as the overall equipment. However, this is not by nature a seasonal endeavor that experiences a profit during only a few months of the year, while expenses are spread out over the entire twelve months. It is hence necessary to have a significant amount of money and cash equivalent assets at the beginning. The center itself will be financed with the assistance loan and a significant amount of owners equity. This will provide sufficient income and overall money flow for the center until it is able to make a profit on its own.

Gavrilovic Marina A/098/08