Beauty is one of the prime concerns for the modern women and they are very much sensitive

and
caring about it. Almost every woman who has little affordability goes to nearby beauty parlors for
their beautification. Among them who are affluent, they go to some renowned beauty shops, which
are situated in different region of Dhaka city. Some of the beauty conscious women travel a long way
to go to their desired and proffered beauty shops. In case of beauty conscious women of
Bashundhara and Baridhara, they are one of them. Saloon industry in our country has high intensity
of rivalry, customers also have high bargaining power though threat of substitutes & barraging power
of suppliers are low; but the threat of new entrants are moderate. To capture the opportunity as
beauty parlor business is in the growing stage, we will rent a 3,000 square feet shop in a commercial
building just beside the International school of Dhaka in Bashundhara Residential Area. The name of
our beauty parlor and spa is “Freya’s” having a tagline “Promise of Heavenly Beauty” As we are
five persons who will invest so each of us will invest 11,50,000 BDT totaling 57,50,000 BDT. We will
create a club like environment for the enjoyment of our customers. In our salon we will have TV,
WiFi, Virtual Hair Style Display and also with refreshment services. So while at our salon our
customers will enjoy every second of it. Our salon interior will also be innovative which will provide a
pleasing experience. Another reason to provide these things is to make customers feel that they are
not waiting. We will focus on several things in case of conducting the business like hygiene, quality
and perfection. We will hire two specialists who will revamp our parlor to a very high level. We will
also provide some other value added services as well. We will also focus on hygiene very strictly.
For a salon hygiene is a very important factor. To clean our salons hair cutting and other tools we
will use sterilize machine. So our salon name indicates the exceptional services and the tag line
reflects our superior quality. We will have six types of employees and among them there will be 1
manager, 1 receptionist and cashier, 8 Operating Employees, 2 specialists, 1 security guard and 2
cleaners. Among the specialists, one will be a Skin Specialists and one will be a hair specialists.
Freya’s long-term objective is to increase the sales by 15% in 2nd year, 20% in 3rd year, 25% in 4th
year, 30% in 5th year and 6th year considering 1st year as the base year. We will have different
promotional strategy which will include Newspaper & Magazine, posters & pamphlets, kiosk and
Opening Day Promotion. To check our business feasibility we have selected 5 years as our
evaluation time frame. Based on percentage of sales method we have forecasted our income
statements and balance sheet. Our business has NPV of ৳5,474,000 and discounted payback
period is 5 years. Thus, we can say that our salon “Freya’s” has a very promising future.

Beauty is one of the prime concerns for the modern women and they are very much sensitive and
caring about it. Almost every woman who has little affordability goes to nearby beauty parlors for
their beautification. Among them who are affluent, they go to some renowned beauty shops, which
are situated in different region of Dhaka city. Some of the beauty conscious women travel a long way
to go to their desired and proffered beauty shops. In case of beauty conscious women of
Bashundhara and Baridhara, they are one of them. Saloon industry in our country has high intensity
of rivalry, customers also have high bargaining power though threat of substitutes & barraging power
of suppliers are low; but the threat of new entrants are moderate. To capture the opportunity as
beauty parlor business is in the growing stage, we will rent a 3,000 square feet shop in a commercial
building just beside the International school of Dhaka in Bashundhara Residential Area. The name of
our beauty parlor and spa is “Freya’s” having a tagline “Promise of Heavenly Beauty” As we are
five persons who will invest so each of us will invest 11,50,000 BDT totaling 57,50,000 BDT. We will
create a club like environment for the enjoyment of our customers. In our salon we will have TV,
WiFi, Virtual Hair Style Display and also with refreshment services. So while at our salon our
customers will enjoy every second of it. Our salon interior will also be innovative which will provide a
pleasing experience. Another reason to provide these things is to make customers feel that they are
not waiting. We will focus on several things in case of conducting the business like hygiene, quality
and perfection. We will hire two specialists who will revamp our parlor to a very high level. We will
also provide some other value added services as well. We will also focus on hygiene very strictly.
For a salon hygiene is a very important factor. To clean our salons hair cutting and other tools we
will use sterilize machine. So our salon name indicates the exceptional services and the tag line
reflects our superior quality. We will have six types of employees and among them there will be 1
manager, 1 receptionist and cashier, 8 Operating Employees, 2 specialists, 1 security guard and 2
cleaners. Among the specialists, one will be a Skin Specialists and one will be a hair specialists.
Freya’s long-term objective is to increase the sales by 15% in 2nd year, 20% in 3rd year, 25% in 4th
year, 30% in 5th year and 6th year considering 1st year as the base year. We will have different
promotional strategy which will include Newspaper & Magazine, posters & pamphlets, kiosk and
Opening Day Promotion. To check our business feasibility we have selected 5 years as our
evaluation time frame. Based on percentage of sales method we have forecasted our income
statements and balance sheet. Our business has NPV of ৳5,474,000 and discounted payback
period is 5 years. Thus, we can say that our salon “Freya’s” has a very promising future. Economies
of Scale
Since our salon will be a service based salon, our efficiency will be measured in terms of our
employees’ capability to serve the clients up to their satisfaction. As a result, first of all we would be
hiring very efficient and experienced beauticians for our saloon. We are predicting that the demand
for our hair saloon would be quite high. We would be delivering high quality service; therefore we will
be charging moderately high price so that we can keep up with our target customers. As our
customer base increases due to superior quality services and differentiated techniques of
advertising, our salon will be able to keep per unit cost down and thus achieve economies of scale.

Employee Training
In our hair saloon beauticians are a major input in providing the promised service. Those who are
highly skilled and multi skilled can perform tasks faster and more accurately than individuals with
lesser skills. So, we won’t only hire skilled beauticians but also assure training upgrades as
consumers’ preference for certain changes so as to bring our salon productivity-related efficiency
gains from learning and experimentation.
1.2.2. Quality Service:

The service provided by our salon will be of very high quality. The salon will be very comfortable for
the customer with a gorgeous looking interior. At Analysis in Hair, we believe communication is the
key. With a personal touch, we’ll get to know our clients every need, and apply the best suited
technique and style for them. Moreover, the waiting room of the saloon will have a large LCD
monitor, music jukebox, magazines, newspapers and light fast food corner so that customer can
relaxed in the waiting room. Waiting will become much more easy and fun. The full saloon will have
air conditioners. Quality style starts with a quality product. We will use high quality products. This is
our strength. The barbers will be highly efficient to provide services to the clients. They will be
trained very well before they serve a customer. This training eventually improves our service in a
quality great deal.
1.2.3. Customer Responsiveness:
Customer Focus

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. One research has shown that word of
mouth is the best advertising for this type of business. Therefore we want to achieve superior
responsiveness to clients and for that our salon would need to provide the clients with what they
want and when they want it. We would attain this firstly by our mission statement that puts our clients
first. This would send a clear message to the managers and beauticians and other employees about
the desired focus. We would drill it into all our employees to see the customer as the focus of their
activity. Beauticians would be trained to put themselves in customer’s shoes to be better able to
identify ways to improve the quality of a beautician’s experience with the hair salon. This feat would
be achieved by listening to what the clients have to say and bring in their opinions by soliciting
feedback from clients on the services and building information systems that communicate the
feedback to the relevant people.
Satisfying Customer Needs

We would try to customize our services by differentiating our services through customization and
reduced response time. We will use a data base system to develop an information page customized
for each individual client, so that we can send information about new styles, new offering and many
more to the customers immediately. We would also try to incorporate customization in service
packages by designing them as per customer specification. The speed of response in our business
would be meet clients’ demands as quickly as possible. We would hire the best beauticians and spa
experts possible to ensure that clients have the service which they are interested in as early as
possible. The increased speed would allow us to choose a premium pricing option.
1.3. Business Level Strategy
1.3.1. Generic Business Level Strategy:
We will provide quality service in an underserved area where potential customer base creation
opportunity is very high and almost obvious.
1.3.2. Strategies in Fragmented Industry:
Chaining:
We have every intention of pursuing a chaining strategy in the near future. This would facilitate the
realization of economies of scale from sharing managerial skills across the chain and from using
nationwide, rather than local advertising.
1.3.3. Competitive Positioning:
Share-Building Strategy:
We would try to build market share by developing a stable and distinct competitive advantage to
attract customers who have no knowledge of our services. We would demonstrate a sustainable
distinctive competency to attract outside investors. With the available resources we will develop a
distinctive competency to have a competitive position in the market.

1.3.4. Strategies to manage rivalry:

Product Development:
Product development would be crucial for us to maintain product differentiation and building market
share. We would be always on the lookout for new and invest in R&D to replace existing ones that
has lost customers interest and search for better ways of serving the clients.

1.3.5. Game Theory:

Game Theory is a tool that will help us to understand how our competitors will react to each move or
strategy we make in a particular competitive environment. For our industry we will be following a
strategy to play the game, which is known as look forward and reason back before implementing the
strategy. This strategy is very important to us because we face risk in every move we make. So
whatever strategy we choose we have to understand the strategy first and the chances of
implementing the strategy in a proper way that will result in having a positive effect on the market
and will benefit the saloon. Thus, first we need to think how our rivals will respond to our strategy
and then reason back to determine which strategic moves to pursue.
2. Company value chain analysis & operating plan

2.1. Value chain

VALUE CHAIN
Primary Activities:
Training– We are hiring well trained employees. This would enable us to add more value to our
products.
Service Delivery- Hair cutting is our core service and by performing it in a way that is consistent with
superior service quality, we would be differentiating our products.
Marketing function– will help us create need in the market and add value to our service through
brand positioning and advertising.
Customer Service– Here we will focus on providing exceptional customer service and the main focus
will be on being responsive, empathic and reliable.

Support Activities:
Our saloon’s organizational structure, control systems, culture would shape the attitudes of our
employees. Within this context all other value creation activities would take place.
We, the top management, through strong leadership would shape the infrastructure of our hair salon.
Our information system is largely used for managing information of employees’ and clients.
1.1. Existing Competencies
1.1.1. Physical Evidence:

Physical Evidence is our major core competencies. We have managed to create a posh outlook, a
clean place and a luxurious environment where our clients can get the total beauty-care experience.
The design of the hair saloon is done in such a way that it facilitates each of our activities. The
waiting room is delicately designed, so that our customers can get the full advantage of relaxation. In
such way our physical evidence acts a core competency. Apart from all this, we have well decorated
interior and equipments to attract customers.
1.1.2. Location
The location of our hair salon is another core competency. Our location will be at banani which will
be more convenient for our target customers. This location will give us a unique identity, attract
customers and will create brand awareness and boost up our SBU to a large extent.
1.1.3. Employees:
Our foreign experts and skilled beauticians are our main core competency. They have been trained
from foreign beauty experts to facilitate our unique hair cutting procedure. The beauticians are well
trained and we have managed to select the best people. They are multi skilled in a sense that a
single beautician is capable to train a number of employees. This has resulted in low operating
expenses and adds more profit. Our beauticians are affluent and master in their personal sector.
1.1.4. Use of new equipments and training method
Here we have managed to bring every new equipment and instruments possible and new innovative
cutting method to give the service to our clients. Use of equipments and training method is acting as
a core competency because in Bangladesh very few hair saloons have such equipments and service
program.
1.2. Future Core Competencies
1.2.1. Improvement of equipments and training method:
In future we will update our software and equipments along with the technological change in the
market. The major changes will be the change in hair cutting instruments, equipments for cutting,
grooming, and spa instruments. With our efficient research and development system we will come
up with new ways of training and add value to our service.
1.2.2. Individualized Counseling, Physiotherapy and Meditation Services:

This is a diversification plan that we have within our long term plan. We would like to use this system
for adding value to our services. These procedures will be used for free for our clients if we think that
they need them. This will be considered as a value added service and will act as our core
competency because none of the hair salon uses this system for their customers.

1.3. Service overview

In our company overview segment it has already been described about the basic service of our
organization. In the marketing part we will discuss in details the services in our product planning
segment.
1.4. Quality Assurance:
We have an extensive program for managing quality of our services. We will maintain quality and
assure it by identifying some of the major gaps and minimizing them.
GAPGAP2

1. Marketing Plan
1.1. The Marketing Mix of “Freya’s”
The strategy that we will be following is by targeting the market we will give the most convenient
price with the ultimate quality services. That will obviously enhance the sale and also it will create
our brand as the most genuine one. We have already identified one slogan for “Freya’s” brand as we
all know just after the brand itself it plays the most vital role in the market for maximizing the profit.
The slogan is “Promise of Heavenly beauty”.

Certainly, we will create awareness through our brand name that wherever you go doesn’t matter but
come here and check out the combination of quality and the convenience together. We will not only
give our customer beauty treatment but also will give them a way to stress out their tiredness
through spa. If brand keeps a far way from our target consumers they will be unwilling to come here
to buy their desired product unless the brand is close to their mind. So it will be a great challenge for
us to handle this critical issue. As we are a start-up company, we should market our services in a
systematic manner to grab total attention of out targeted segment. If we can’t target the market in a
proper way then it will be only normal brand and nothing else which will hamper our overall purpose
of the brand.
Our main target is establishing our brand in our targeted segment’s mind through proper marketing
strategy. An explicit Market Strategy will allow us to grow rapidly a have higher market share, which
will eventually fulfill our objective. As we have already said that we will be providing ultimate services
and can be standardized as “world class” art of beauty segment in every woman’s mind. We will try
our best to add tremendous value to our society. Therefore we can portrait our self as the best in the
view of our customers.
Beginning with the importance of the reason of including the marketing mix in our report is that, the
‘marketing mix’ is a set of controllable, tactical marketing tools that work together to achieve
company’s objectives. Therefore in order to achieve the company’s objectives we need to analyze
the 8P’s at first.
Product Elements

The product of our business is that we are offering is the core service of “Freya’s”. And the core
service is beauty treatment and spa services. Under the marketing mix of the product category we
have various types of brand services. Our main objective is to attract our customers in different ways
like:
We will maintain product variation through delivering the best service in the city and a service by
which we can create brand recognition of our own.
We are also reluctant to differentiate our product form our competitors as we have already said that
we will be offering the best value to our targeted customers therefore by the advantage of owing a
pool of skilled employees and related attribute we can achieve differentiation.
Continuous innovation is needed in order to retain and attracts the customers in order to run the
business.

This is the process which comprises of the following:

Product Development:
Product development would be vital for us to maintain product differentiation and gaining high
market share. We would be always on the lookout for new and invest in R&D to replace existing
ones that has lost customers interest and search for better ways of training the to trainees. The
developments also comprises of the investment on the high-tech technologies and machines which
will make sure that the process of delivering value in intact and the quality is up to the mark and also
will help Freya’s to gain high competitive advantage.
Product Proliferation:

To manage rivalry and to discourage new entry, we must have a high class product in each market
segment. Besides this, our promotion will make sure that we are providing the equal amount of effort
to helping customers to brush their personality and look.
Place and Time
To select the location where the service will be provided and where the whole operation will be
performed is very important in terms of customer’s ease. Place or location makes a lot difference in
order to become successful and more popular in the view of the customers. We have selected the in
a prime location of Dhaka city which is in Bashundhara Residential Area. We will rent a 3,000 square
feet shop in a commercial building just beside the International school of Dhaka. Monthly rent for this
shop will be TK. 60,000. The reason for this selection is because we have identified that
Bashundhara currently became one of the busy areas and there is not a single beauty parlor here.
We already have near about 10000 customers from North South University and a huge portion of
customers who are permanent resident of Bashundhara, guardians and female teachers of ISD and
Play Plane School. Another reason behind choosing this location is from next month Independent
University of Bangladesh will starts its classes in their own campus of Bashundhara. Besides,
GrameenPhone will shift its major portion of employees to it’s headquarter which is in Bashundhara.
Moreover, we are going to get a huge number of quality customers for our Freya’s.
Price and other user outlays
Price is the driving factor in terms of profit margin. By price we mean the amount a customer pays
for the product or service. It is determined by a number of factors including market share,
competition, material costs, product identity and the customer’s perceived value of the product.
Therefore in order to sustain in the market place we need to maintain an effective pricing strategy,
by which we can achieve a break-even as early as possible and on the other hand we can compete
and transfer value to our customers as well. As we have verified the prices of our services as shown
below:
Services
Price

Cost
Estimated No. of Customers Per Month
Revenue Per Month
Annual Revenue

Estimated Annual Cost

Hair Segment
Hair Cut (Normal)
400

0
60
24,000
288,000

960
Hair Cut (Stylist)
800
480
50
40,000

480,000
288000
Hair Setting
400

20
54
21,600
259,200

12960
Hair Treatment
Oil Massage
350
20
20
7,000
84,000

4800
Protein Treatment
600
60

13
7,800
93,600
9360

Spa Treatment
800
100
13
10,400
124,800
15600

Herbal Treatment
400
50
30

12,000
144,000
18000
Shampoo

200
10
25
5,000
60,000
3000
Hair Coloring
Per Streak

200
40
15
3,000

36,000
7200
Full Hair (Short)
3500

500
5
17,500
210,000
30000
Full Hair (Medium)
5000

1000
3
15,000
180,000

36000
Full Hair (Long)
6500
1500

2
13,000
156,000
36000
Hair Straightening
Temporary
450
0

20
9,000
108,000
10000

Permanent (Short)
5000
1500
1

5,000
60,000
18000
Permanent (Medium)
10000
2500
2

20,000
240,000
60000
Permanent (Long)

15000
3500
1
15,000

180,000
42000
Full Bridal Package
18000
2500
1
18,000
216,000

30000
Party Makeup
1500
100

15
22,500
270,000
18000

Bridal Makeover
Gaye Holud
4000
200
10
40,000
480,000

24000
Wedding
6000
250

5
30,000
360,000
15000

Reception
6000
250
5
30,000
360,000
15000
Skin Segment

Facials
Normal
350
50

20
7,000
84,000
12000

Herbal
450
80
30
13,500
162,000
28800

Pearl
600
100
12

7,200
86,400
14400
Gold

800
120
4
3,200
38,400
5760
Fruit
600

100
15
9,000
108,000

18000
Whitening
1000
120

12
12,000
144,000
17280
Oxygen
1200
150

5
6,000
72,000
9000

Ozone
1200
150
5

6,000
72,000
9000
Spa
Body Wrap
5000
1000
2

10,000
120,000
24000
Body Massage

3000
500
14
42,000

504,000
84000
Aroma Therapy
2000
400
13
26,000

312,000
62400
Body Scrub
1500

300
5
7,500
90,000

18000
Firming Body Detox
8000
2000
1
8,000
96,000
24000

Others
Eye Brow Pluck
50
0

300
15,000
180,000
600

Upper Lip Pluck

50
0
200
10,000
120,000
600

Pedicure
350
20
30

10,500
126,000
7200
Manicure

350
20
30
10,500
126,000
7200
Waxing
Hand

300
50
65
19,500

234,000
39000
Leg
500

50
45
22,500
270,000
27000
Nose Piercing
450

100
2
900
10,800

2400
Ear Piercing
600
150

5
3,000
36,000
9000
As we have already said that we are following a value based pricing strategy, Where the core
process is to transfer value by creating a satisfied customer.

The pricing strategy is shown in the figure beside:

PRICING STRATEGY
Promotion and education
Freya’s long term objective is to increase the sales by 15% in 2nd year, 20% in 3rd year, 25% in 4th
year, 30% in 5th year and 6th year considering 1st year as the base year. It will be impossible with
out the sufficient amount of effective promotional campaign (The IMC Campaign). Promotion
represents all of the communications that a marketer may use in the marketplace. Promotion mainly
has some distinct elements like advertising, public relations, word of mouth, sponsorship etc. A
certain amount of crossover occurs when promotion uses these principal elements together. We will
mainly go for promotion through printing media and sponsorship as we have limited budget to invest
much on the promotional sector, therefore we need to allocate the budget to get the most out of it.
As for promotion, we have assumed to invest vastly in the 1st year which is Tk. 11, 50, 000
and Tk. 4, 00, 000 for each of the next 5 years.
Therefore in order to achieve a target on which we can overcome the barrier of being a late comer in
the market, we have come up with an effective promotional strategy which can overcome these
obstacles. The strategy defines various stages on which we will be going through, and the time line
will be attached with the life-cycle of our company. The cost has been modified and has been given
in such away so that we can accumulate perfectly and effectively, in a limited budget we have.
The promotional strategy has been divided into different stages shown in the following:
Promotion (IMC Campaign):
Our total budget for first year is 11, 50,000. We allocated this total budget among our all promotional
activities. Promotional media’s are given below:
Newspaper and Magazines:
It is a frequent and a very popular mode of medium of promotion as per our industry if concerned.
Therefore we are focusing to invest heavily on the newspaper and magazines in this stage. As we
said before our industry is so conscious they don’t seem to invest more on the television
advertorials. As it is a very expensive mode of medium of promotion to invest. Therefore we are
focusing on investing on this sector not regularly.
In terms of newspaper, we will give advertisement of our salon on last page before opening our
parlor. We will give it for two times which will cost TK 1, 60,000.

We will promote Freya’s first year of its starting through one of the best fashion magazine “Mirror”.
Mirror which is a weekly magazine is very popular among women. We will place our advertisement
on first page of the magazine and for full year promotion it will take total 5, 76,000 (48000*12)
Pamphlets and posters:
Freya’s is planning to distribute lift lets among 10000 students of North South University which is in
Bashundhara before opening our salon. It will cost almost TK 5000. We will do postering in some
major place besides our location to grab the customer’s attention. For than we have selected
Bashundhara area, Baridhara, Banani, Gulshan and Uttara. We are going to do promotion through
posters for four times in first year and for each time it will take TK 43,500 and total amount for 1 year
will be TK 1, 74,000. Poster is a very effective tool for a start-up company. So, by that we can
straightforwardly grab customer’s attention.
Kiosks:
As we are a start up company, so we need to force our customer to believe that we will serve them
with quality product and service in reasonable price. We are planning to make kiosk for three days in
North South University’s student in their own campus within first month of our salon. Students can
get our services like hair cutting, hair coloring, hair straightening, hair treatments, eye brow pluck,
pedicure & manicure, facials & spa services. We will give them discount coupons for further services
in our parlor. For kiosk, NSU will charge us by TK 15,000 for each day and our kiosk will be in Girl’s
Lounge.
Opening Day Promotion:
Promotion strategy for opening day of Freya’s mainly focused on make a good reputation from day
first in customer’s mind. We already planned to invite 100 people consist of some TV personalities,
journalists, students and housewives in our opening ceremony. We will invite them through invitation
card. In the opening day, there will be huge number of promotional festoons of Freya’s through out
the total road of Bashundhara gate to Freya’s salon. In the opening ceremony, we are planning to
give free herbal packs from our two specialist beautician and free spa massage and also every guest
will get a 15% discount card for three months.
For endorsement in opening ceremony, we will bring famous TV actress and model Joya Ahsan to
cut the ribbon of Freya’s. As our industry is so much concerned, they will take her as role model and
this will going to benefit us for future function. Joya Ahsan is also going to shoot for our parlors with
our different types of make-up schemes.
Total promotional cost for opening day promotion will be TK 1, 00,000 for endorsement, TK 70000
for promotional festoons and food & beverage and TK 11,000 for invitation cards
Total budget allocation for Promotional tools:
Promotion Tools
Cost for each tool

(Currency: ৳)

Newspaper & Magazine

7,36,000
Posters & Pamphlets

1,79,000
Kiosk
45,000
Opening Day Promotion
1,81,000
Total
11,41,000
Therefore, we are allocating TK 11, 50,000 for our first year promotional activities and for next five
years we are planning to invest TK. 4, 00, 000 for each year.
1.1.2. Process
Process refers the steps of procedures, mechanisms and flow of activities which lead to an
exchange of value from us to our customers. Every operational activity that we are going through is
an activity which comprises of transferring the ultimate value to our customers and also to our
potential customers. Being a service provider in the market place we are emphasizing on the
process of establishing our-self as the ultimate value transferred mechanism in the market place.
Our every activity is dedicated to the process of transferring the ultimate value top our customers like
starting from taking a call from our potential customers to delivering the services with the ultimate
value attaching with it. The overall process of our services has already been described before. The
easy, user friendly and convenient procedure is the main designing attributes of our service
processes. We have managed to simplify the way the trainees will be enrolled, the way they will be
trained and the way their classes will be scheduled and informed. Apart from that we will also have
easy check in, and check out procedure, reservation procedure for buying the service hours.
Physical Evidence
The direct sensory experience of a product or service is that permit a customer to measure whether
he or she has received value through a operation. Examples might include the way a customer is
treated by a staff member, or the length of time a customer has to wait or the environment in which a
product or service is delivered. All in all we can conclude it in this way is that, the consumers will go
through in an experience, just by the stepping into our shop. The places for different recreational
activities will be set in such a way that none of them hampers the others. We planned our every
section like hair section, facial section, spa section etc individually and also with privacy in terms of
spa massage and facial section. This is the overall description of our service process centre and we
hope it will portray good image of us to our customers.
People
Consist of the human resource and individuals related with our process of transferring value and
providing services, weather the service is core or supplementary. Our impendent own human
resource department are responsible to manage a skilled pool of labor who are dedicated to perform
in their best to satisfy each and every customers individually. Human Resource Manager Mr. M.
Mahfuz Amin has taken the responsibility and he is managing the human resource department
effectively and efficiently.
In our progression center, specialists are a major input in providing the promised service. Those who
are highly skilled and multi skilled can perform tasks faster and more accurately than individuals with
lesser skills. We hired two foreign consultants and one of them is specialist in hair and another one
is in skin. So, we won’t only hire skilled consultants but also assure training upgrades as consumers’
preference for certain changes so as to bring our company productivity-related efficiency gains from
learning and experimentation.

Productivity & Quality

“Freya’s” is not only a salon shop; it will be a brand that ensures the best productivity which defines
the best outputs which is the result of quality input with skilled and professional labor force and
consultants. In our salon industry we have identified and analyzed that we are differentiating us from
our competitors in segmentation and targeting a niche market and with the ultimate quality of
services on which our customers are paying for. We know at the end of the day we can find a
satisfied customer with value received form our company “Freya’s”.

Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By offering
the product with the right combination of the product, price, place, promotion and additional 4 P’s
marketers can improve their results and marketing effectiveness. Making small changes in the
marketing mix is typically considered to be a tactical change. Making large changes in any of the 8
P’s can be considered strategic. These 8 P’s are fundamental marketing issues that always need to
be addressed. They are the primary actions that marketing requires whether determined explicitly or
by default.
By our marketing planning and strategies, we will become the market leader in few years because
we will serve our customers with up-to-date, innovative & high quality product and services which
also include technical supports and consisting offerings at lower possible cost.
Human resource strategy & planning
Human resource planning of our company at a glance
Human Resource Planning Process is an essential part of managing the Human Resource
effectively. Human resource planning is first component of human resource management strategy.
Human resource planning is the process of carrying out the movement of people into, within and out
of an organization. Human resource planning determines the future employment need of an
organization as well as ensuring that the organization has the right number of qualified people in the
right place and at the right time.
Effective human resource planning process determines how to pursue the organizations long –term
goal. For determining the long-term goal it has to have an effective Human Resource Planning
Model. The model forecasts demand, which consists internal and external considerations,
techniques and some other factors related with organization’s long-term goal. Effective human
resource planning also involves the key elements that are forecasting the demand for potential
employees, and the supply analysis. Basically means the process of balancing the demand and
supply of work force within and out the organization by internal and external consideration.

Consideration
Product or service demand is the organization internal consideration based on which it simply design
its human resource planning strategy. The demand for a manufacturing company is simply its
finished product where as service is that of a service based company. Considering the demand, the
company or the organization predict its human resource planning and determine the strategy. So
before forecasting demand for future, organization should consider its product or service demand.
This is what we are also doing. So we are doing the same thing as well. What we are doing here is
that, though there are so many companies are available in business but we will be unique because
of our superior and exclusive services. So we will need some of the most efficient and effective
employees who has to be educated and knowledgeable so that we can achieve our goal.
Techniques for forecasting demand
Trend Analysis (Quantitative Approach)
In order to determine the demand for employee and products the company use trend analysis. The
trend analysis basically forecasts employee needs based on a business factor such as sales
revenue and ratio of the labor productivity. It really depends on the historical data to calculate
productivity ratio, which is measured through dividing business factor by productivity. Suppose the
organization wants to predict the next year sales, for that it will have to calculate the last three to five
years productivity ratio to forecast demand of sales for the organization. It is one of the techniques
that management uses to forecast demand.
Management Estimate (Qualitative Approach)
It is the qualitative approach to demand forecasting. It is the opinions (judgments) of supervisors,
department managers, experts, or others knowledgeable about the organization’s future employment
needs. So the decision of management plays a vital role in the forecasting of demand. If they are
wrong in estimating the needs of employment then the whole organization process of determining
demand will be worthless and the organization will suffer as a whole. Again the management’s
failure can lead towards poor growth for the organization. Now –a-days organizations are more
flexible enough to respond to the changes in the environment. As per the direction of the
environment, which can be positive or negative, affect the organization not to a great extent because
of this management estimation that is done correctly for the organization.
Delphi Technique

It is an attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments
of a preselected group of individuals. Here the organizations try their level best to avoid any kind of
biasness in the organization. So the organizing committee selects members from different groups to
determine the demand in the future for the organization’s product or service. Basically the team
approach is applied here. The final forecast of demand will represent a composite group of judgment
that in essence indicating the similarity of thinking about the core need of the organization in
advance. Delphi technique in this current situation maybe hart to find but yet it closes to the team
building approach. As a result the organizations applying that are capable enough to meet the need
for the customer, which is the primary objective of the organization. By following this process we will
be able to understand that the organization will need to be very identical and it will create immense
pressure for us.
Supply Analysis
Supply analysis is concerned with the number of people required both internally and externally. The
company will first find out the employment need within the organization to staff any projected group
member for vacancies. Then the external evaluation is carried out if current employees are not
available. The organization also uses techniques to balance with the supply and demand of the
service and product of the organization. As we are not having so many employees so we will have a
easy way to analyze our supply of labor. So we can do it easily and in an effective method.
Supply analysis

Staffing Tables:

Name of the Position

Number of employees
1. Managers 1 person
2. Receptionist & Cashier 1 person
3. Specialists 2 persons

4. Operating Employees 8 persons

5. Security guard 1 person
6. Cleaners 2 persons
Markov analysis:

A method for tracking the pattern for employee movement through various jobs is markov analysis. It
is helpful in the case that through this we can easily project that who is going to get the new post that
has been opened just. The movements of employee tracked upwardly and horizontally not
downwardly. He or she can be very competent for any post upcoming but their past performance on
the job through movements who is to be fitted for. This thing is really necessary for our company
because our main strength will be our human resource and the future recruiting processes will be
needed through this. Because the core competencies will be that our consultants will be the most
multi-skilled person who can train the trainee very well.
Internal Demand forecasting Tools:
Internal demand forecasting tools refers the technique through which the internal need of employee
arisen from vacancies can be categorized. The organization use these different techniques to find an
efficient employee to make him proper training. It includes the skill inventories, replacement chart,
and succession planning.
Skill Inventories:
Skill inventories represents the file of personnel education, experience, interests skill etc. that allow
managers to quickly match job openings with employee backgrounds. Whatever skill an employee
has based on that the organization hires employees within the organization.
Replacement Chart:
Listing of concurrent jobholders and persons who are potential replacement if an opening occurs.
The word replaces itself self-explanatory. By this time, organization selects the right people at the
right time at the right places.
Succession planning:
The process of identifying, developing and tracking the key individual for future executive position is
succession planning. For this kind of strategy very highly trained people is required. An executive
replacement chart contains the data about a person promo table now, needing development, above
average performance.
Forecasting supply employee (internal labor supply)

After searching internally the organization will go for external consideration. The external thing is not
under the control of the organization. It has to change according to the changes in the external
condition.
External consideration of labor supply
Demographic Changes:
The labor supply of an organization is influenced by the demographic factor in the population. It is
also very important for our organization. The factor includes age, income, gender, and status as
transition occurs from time to time. The youth of today will be the future leader of the nation. School
children become college graduates and who eventually become managers and lead as CEO of an
organization. Demographic factors are really important for an organization because based on these
external factors the organization will determine the labor supply. If the organization finds that, there
will be a great demand for their product or service in the coming season they will be looking for hiring
people. As people grows demographic changes occurs. Income of individual influences the labor
supply. When people have low earning, they struggle to get employed somewhere that pays high
wages. It is also necessary for our organization also. So the recreating process of our organization
will also very be dependent on ht country people of our country.

Education of the work force:

Organization should possess efficient worker to perform better than their competitors. The efficiency
depends on the literacy level of the employee. When the employee doesn’t know what to do and
how to do, then it indicates that the employee is ignorant of their doing. So the literacy rate of the
organization is an important to be considered by every organization. The better the skill and
knowledge of the workforce, the better they would be able to perform. Professional could be
recruited in order to occupy top-level managerial positions. If all employees of an organization have
equity on education, organizational discipline and behavior will be established in more effective way.
It will be our core competencies that the consultants will be the multi skilled person that will save the
employees.

Labor Mobility:
Labor mobility means the people movement from and within the organization. Labor mobility is a
crucial factor in determining the labor supply. It indicates to what extent the people willing to move or
willing to take new challenge. If they are willing to do so then only they will exert outstanding
performance. Labor mobility is considered as an external factor because labor mobility has impacts
on the organization HR planning process as it is dealing with mobility of labor on specifics factor.
The factors include many departments in the organization. The organization will first think that who is
going to do what. After seeing the labor mobility within the organization the top of the organization
decide the following steps in determining the need of the labor supply.
Government Policy:

Government policies and regulations are important in determining the labor supply. Government
decides the salary range, wage rate of labor, the employment requirement for an organization.
Organization has to abide by the rules and regulation of the government. The organization
considered being illegal; if they try to go beyond the limitation of the organization. Govern set the
criteria to hire people. Government also sets the criteria about the labor employment to which the
organization is given a limit. The organization may look for liaison with the government to be
benefited in the organizations area among the competitors.
Unemployment Rate (High):

Unemployment means the scarcity of jobs in the job market and people are there for job but they do
not find any place for them. It is basically because of the competition is increasing day by day. If the
rate is high then it will have an impact on the organization planning resources. The organization will
have the advantage of cheap labor at that time and production will be cost effective because people
would be looking forward to work at any cost. In our country the unemployment rate is very high that
will help us to recruit employees on low wage.

Organogram
MANAGING PARTNER
Basic principles of the HR policy
We have divided our principles in to two basic ways. One is salary structure and the other is legal
aspect.
Salary structure:

We will have some employees. Among them there will be 1 manager, 1 receptionist and cashier, 8
Operating Employees, 2 specialists, 1 security guard and 2 cleaners. So each of them will get
different compensation. Their salary structure will be different. Some of them will be paid in monthly
basis and some of them will be paid in percentage basis. There will be consideration of some factors
in the compensation.
The whole salary structure are shown in the table below:
Name of the Position Number of employees Salary per month
1. Managers 1 persons 12,000 each per month
2. Receptionist & Cashier 1 person 7,000 each per month
3. Specialists 2 persons 60% profit sharing Each
4. Operating Employees 8 persons 8,000 each per month
6. Security guard 1 person 3000 each per month
7. Cleaners 2 persons 4000 each per month

Legal Aspect:
In the legal aspect we will cover some of the laws regarding our business. It is just because of to
ensure the correct working environment to our employees. We will ensure all the labor laws that has
been passed and maintained in our country like 1931 Davis‑Bacon Act, Walsh‑Healey Public
Contract Act, The Equal Pay Act, Age Discrimination in Employment Act, The Family and Medical
Leave Act, The National Labor Relations Act of 1935.

Staffing plan and requirements

As we have mentioned before we will have six types of employees and their responsibilities are
different. Some of them do need to have certain graduation and some of educational qualification.
Besides, all of them need to have certain level of work experience too.
Position details

We will have six types of employees. They are manager, receptionist & cashier, Specialists,
operating employees, security guard and cleaner. Besides these each of the investor will have some
of the posts. The posts are managing partner, administrative manager, human resource manager,
marketing manager and financial manager.

Number of positions
The manager will lead the business and will look after all the things of the business. Besides, we will
have 1 cashier & receptionist, 2 specialists, 8 operating employees, 1 security guard and 2 cleaners.

Responsibilities
Each of them has specific responsibilities and they need to complete their tasks in a decent manner.
We will have an managing partner and four main managers in our saloon. After that we will have our
regular employees. All of the positions of our organizations are described below.
Selection & recruitment process

We will follow some basic procedures in case of training & development. They are listed below.
Recruitment:
In case of recruitment we will also follow some techniques. We will hire two specialists, eight
operating employees, two cleaners, one managers and one security guards. At first we will hire two
experienced and renowned hair and skin specialists. Afterwards we will have internal recruiting with
the help of those specialists in case of measure and hair dressers. But the person who will be
recruited must need to have 4 years experience at least. Besides we will hire one trustworthy person
who will act as both cashier and receptionist We will also hire two managers, four cleaners and two
security guards and will take the help of external recruiting process.
Training & development:
We will hire two hair stylists who will have higher degree on hair cut. And afterwards they will teach
the rest of the employees about all the skills that they have learnt. Besides, the stylists will also get
involved in hair cutting and some other process.
Leaves and holidays:
The leaves of the employees will depend on some issues. We will have a weekly holiday on each
Sunday. But during the peak times of the business like different festivals, government holidays and
peak period of marital ceremony (November to February) it will be kept open. Each employee can
take 15 days leave in each year without the peak periods of the year. Each employee will have the
festival and religious holidays too. Besides, the emergency conditions like sick leave and death of
the relatives and some other emergency conditions of the employees will also be considered.
Performance appraisal:
We will take different performance appraisal techniques methods. We will use some techniques like
BARS (Behaviorally Alternation ranking method), Paired comparison method & Forced distribution
method. The appraisals will be done by the immediate supervisor, Peers, Rating committees, Self-
ratings, Subordinates, 360-Degree feedback. We will try to get rid of problems like unclear
standards, Bias, Strictness/leniency, Halo effect & Central tendency.

Risk analysis
Foreseeable risk
High expected profit will encourage other new entrants to come to the industry.
Already established competitors may show high resistance.

Competitors may try to copy our business plan.

Competitors may try to capture our beauticians by offering higher payments.
Unpredictable political situation of the country is another threat to our business. Political instability
has always hampered business of all types in Bangladesh.
Unforeseeable risk
A sudden change in government policy about business or tax can hamper the operation.
The natural calamities may suddenly take place and that will hinder the operation.

Economic downturn can hamper overall income level.

Sudden trend change is a great challenge for the business.
Market risk:
Demand may change drastically over the time. In addition to that, different external environmental
causes like political and legal issues may results in highly risky market situation. For example,
increasing inflation can increase the cost of the company.
Operational risk:
The salon has only 10 employees. The absence of any beautician or specially the experts will cause
big crisis for our business.
Liquidity Risk:
In the first year we are expecting net loss of 342,420. So we will face high liquidity risk for the 1st
year and also the 2nd year.
Financial Management Plan
Women parlor in Dhaka city is not a new concept. There are already some good players in the
market. To compete successfully in the market we have to manage our financial plan efficiently &
effectively to provide best experience with standard price.

The initial investment varies based on the class of parlor that one wants to give. To open a very high
class parlor in Dhaka city it will be costly and as we are focusing on providing a new level of
experience we will have to bare some high investment cost though not exceptionally high. Reducing
cost efficiently will be a challenge for us, as we don’t want to compromise with our quality grooming
experience.
Assumptions

General Assumptions
For this business all five of us will invest 11, 50,000 TK each totaling 57, 50,000 TK.
We will rent a 3,000 square feet shop with advance payment of 600,000 TK and monthly rent of
60,000 TK.
We have decided to invest 2,200,000 TK for the interior designing and other furniture and
equipments.

As for promotion, we have assumed to invest vastly in the 1st year, i.e. Tk. 11, 50, 000 and to invest
Tk. 4, 00, 000 for each of the next 5 years.
During the first year of operation we plan to hire 10 operative employees and 2 administrative
employees along with a security guard and 2 cleaners.
Among the 10 operating employees one will be a hair stylist and another skin specialist, both with
foreign training. We will share our profit with them on a 60-40 basis (Our 40% and their 60%).
Down the road we plan to hire 2 more operating employees in each of the 2nd, 3rd and 4th year and
1 each in the 5th and 6th year.
Forecasting is based on percentage of sales.
6 years projection period.

NPV, Discounted Payback Period and Break even will be calculated by Excel.
Revenue & Cost assumptions
Cost of equity is 12%; Bangladesh Govt. Treasury Bonds of 5 years provide 7.5% interest and
assumed risk premium of this business is 5.5%, which totals to 13%.
Fixed assets will be depreciated using straight line method assuming no salvage value.
Most of our assets needs to be replaced after the 5th year as they will become obsolete that is why a
large amount of cash that is at around 2,000,000 TK will be invested both for renovation and as well
as for purchasing assets.
Sales will increase by 20% in 2nd year, 25% in 3rd year, 30% in 4th year, 40% in 5th year and 6th
year considering 1st year as the base year.
Fixed and variable cost will increase by 5% in every year.
Tax rate in partnership business is calculated as follows:
First 1, 65,000/- Nil
Next 2, 75,000/- 10%
Next 3, 25,000/- 15%
Next 3, 75,000/- 20%
Rest Amount 25%

Source: National Board of Revenue

Income retention will be as follows:
Withdrawal Retention
Year 1

0%
100%
Year 2
20%

80%
Year 3
20%
80%
Year 4
30%
70%
Year 5

30%
70%
Year 6
30%

70%
Range of Services offered and Price List
Services
Price
Cost

Estimated No. of Customers Per Month

Revenue Per Month
Annual Revenue
Estimated Annual Cost

Hair Segment
Hair Cut (Normal)
400
0

60
24,000
288,000
960
Hair Cut (Stylist)
800
480
50

40,000
480,000
288000
Hair Setting

400
20
54
21,600

259,200
12960
Hair Treatment
Oil Massage
350
20
20

7,000
84,000
4800
Protein Treatment

600
60
13
7,800

93,600
9360
Spa Treatment
800
100
13
10,400
124,800

15600
Herbal Treatment
400
50

30
12,000
144,000
18000

Shampoo
200
10
25
5,000
60,000
3000

Hair Coloring
Per Streak
200
40

15
3,000
36,000
7200

Full Hair (Short)

3500
500
5
17,500
210,000
30000
Full Hair (Medium)

5000
1000
3
15,000

180,000
36000
Full Hair (Long)
6500

1500
2
13,000
156,000
36000
Hair Straightening
Temporary

450
0
20
9,000

108,000
10000
Permanent (Short)
5000

1500
1
5,000
60,000
18000
Permanent (Medium)
10000
2500

2
20,000
240,000
60000

Permanent (Long)
15000
3500
1

15,000
180,000
42000
Full Bridal Package
18000
2500
1

18,000
216,000
30000
Party Makeup

1500
100
15
22,500

270,000
18000
Bridal Makeover
Gaye Holud
4000
200
10
40,000

480,000
24000
Wedding
6000

250
5
30,000
360,000

15000
Reception
6000
250
5
30,000
360,000

15000
Skin Segment
Facials
Normal

350
50
20
7,000

84,000
12000
Herbal
450
80
30
13,500
162,000

28800
Pearl
600
100

12
7,200
86,400
14400

Gold
800
120
4
3,200
38,400
5760

Fruit
600
100
15

9,000
108,000
18000
Whitening

1000
120
12
12,000
144,000
17280
Oxygen
1200

150
5
6,000
72,000

9000
Ozone
1200
150

5
6,000
72,000
9000
Spa
Body Wrap
5000

1000
2
10,000
120,000

24000
Body Massage
3000
500

14
42,000
504,000
84000
Aroma Therapy
2000
400
13

26,000
312,000
62400
Body Scrub

1500
300
5
7,500

90,000
18000
Firming Body Detox
8000
2000
1
8,000

96,000
24000
Others
Eye Brow Pluck

50
0
300
15,000

180,000
600
Upper Lip Pluck
50
0
200
10,000
120,000

600
Pedicure
350
20

30
10,500
126,000
7200

Manicure
350
20
30
10,500
126,000
7200

Waxing
Hand
300
50

65
19,500
234,000
39000

Leg
500
50
45
22,500
270,000
27000
Nose Piercing

450
100
2
900

10,800
2400
Ear Piercing
600

150
5
3,000
36,000
9000
* Note: Sales will increase by 20% in 2nd year, 30% in 3rd year, 35% in 4th year, 40% in 5th year
and 6th year considering 1st year as the base year.
Initial investments
Initial Investment
Total Cost
Interior
2,200,000
(Furniture, Lighting, fixtures, etc.)

Air Conditioner 200000*4

800,000
Generator
250,000

Advance Payment
500,000
Other Operating Assets
350,000

Computer 25000*2
50,000
Accounting software
20,000
Telephone Connection
5,000
Printer
25,000

Internet Connection
4,000
Website
20,000

Beauty Products
100,000
Launching Cost
1150,000
(Signboard, leaflets, other promotional campaigns)

Total
5,474,000
Cash in Hand
276,000

Income Statement
Freya’s
Income Statement (Forecasted)
For the Year 2011 – 2016

Items
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Revenue

7,381,200
8,857,440
9,595,560
9,964,620

10,333,680
10,333,680
Total Cost of Service
1,113,520

1,336,224
1,447,576
1,503,252
1,558,928
1,558,928
Gross profit
6,267,680

7,521,216
8,147,984
8,461,368
8,774,752

8,774,752
Operating expenses:
Selling, General and Administrative expenses
4,042,000

3,338,900
3,482,645
3,753,577
3,895,656
4,044,839
Miscellaneous expense
240,000
252,000

264,600
277,830
291,722
306,308

Depreciation
539,280
539,280
539,280

539,280
539,280
539,280
Total operating expense
4,821,280
4,130,180
4,286,525

4,570,687
4,726,658
4,890,426
EBT

1,446,400
3,391,036
3,861,459
3,890,681

4,048,094
3,884,326
Less: Tax
392,850
879,009
996,615
1,003,920
1,043,274

1,002,332
Net income/ Loss
1,053,550
2,512,027

2,864,844
2,886,761
3,004,821
2,881,994

Profit Drawing

502,405
572,969
866,028
901,446

864,598
Retained Earnings
1,053,550
2,009,622

2,291,875
2,020,732
2,103,375
2,017,396

Additional Information
Tax Schedule
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
EBT
1,446,400
3,391,036
3,861,459
3,890,681

4,048,094
3,884,326
Less Exemption:
165,000

165,000
165,000
165,000
165,000

165,000
EBT after exemption
1,281,400
3,226,036
3,696,459
3,725,681
3,883,094

3,719,326
Next Tk. 275000 @ 10%
27,500
27,500

27,500
27,500
27,500
27,500

Next Tk. 325000 @ 15%

48,750
48,750
48,750
48,750
48,750
48,750
Next Tk. 375000 @ 20%

75,000
75,000
75,000
75,000

75,000
75,000
Rest @ 25%
76,600

562,759
680,365
687,670
727,024
686,082
Total taxation
392,850

879,009
996,615
1,003,920
1,043,274

1,002,332
Net Income
1,053,550
2,512,027

2,864,844
2,886,761
3,004,821
2,881,994
OPERATING EXPENSES
Per Month
Year 1
Year 2

Year 3
Year 4
Year 5
Year 6

Rent (3,000 sqft)

60,000
720,000
720,000

720,000
840,000
840,000
840,000
Employees
64,000
768,000

822,400
879,520
939,496
994,471

1,052,194
Managers
12,000
144,000

151,200
158,760
166,698
175,033
183,785
Receptionist & Cashier
7,000
84,000

88,200
92,610
97,241
102,103

107,208
Cleaners (2 persons)
4,000
48,000

50,400
52,920
55,566
58,344
61,262
Security
3,000

36,000
37,800
39,690
41,675

43,758
45,946
Bonus (2 Yearly)

180,000

111,300
133,665
157,148
173,406

190,476
Maintenance
15,000
180,000

189,000
198,450
208,373
218,791

229,731
Stationary
6,000
72,000

75,600
79,380
83,349
87,516
91,892

Utilities (Telephone, Internet, Water, Electricity and Gas)

55,000
660,000
693,000

727,650
764,033
802,234
842,346

Depreciation
44,940
539,280
539,280
539,280
539,280
539,280
539,280

Miscellaneous Expenses
20,000
240,000
252,000

264,600
277,830
291,722
306,308

Promotion

1,150,000
400,000
400,000
400,000

400,000
400,000
Total
4,821,280

4,130,180
4,286,525
4,570,687
4,726,658

4,890,426
Note: Fixed and variable costs are assumed to increase by 5% every year
Rent will be Tk. 60,000 per month for 3 years. From the 4th year, after contract renewal the rent will
be Tk. 70,000
Balance Sheet
Freya’s

Balance Sheet
For the Year 2011 – 2016
Items
Year 1
Year 2
Year 3
Year 4
Year 5

Assets
Current Assets
Cash
353,830

3,405,137
6,809,261
10,235,302
11,779,403
Other Operating assets

1,000,000
1,200,000

Advance Payment
500,000

Other Working Capital

1924006
1120462
Beauty Products

200,000
250,000
300,000
380,000

400,000
Total Current Assets
3,977,836
5,975,599

7,109,261
10,615,302
12,179,403
Long-Term Assets
Tangible Assets
Interior (Furniture, Lighting, fixtures, etc.)

2,200,000
2,200,000
2,200,000
2,200,000

2,200,000
Less: Accumulated Depreciation
314,286
628,572

942,858
1,257,144
1,571,430
Air conditioner
800,000
800,000
800,000
800,000

800,000
Less: Accumulated Depreciation
160,000
320,000

480,000
640,000
800,000
Generator

250,000
250,000
250,000
250,000
250,000
Less: Accumulated Depreciation
50,000

100,000
150,000
200,000
250,000

Printer
25,000
25,000
25,000

25,000
25,000
Less: Accumulated Depreciation
5,000
10,000
15,000
20,000
25,000

Computer
50,000
50,000
50,000

50,000
50,000
Less: Accumulated Depreciation
10,000

20,000
30,000
40,000
50,000
 Total Tangible Assets
2,785,714
2,246,428

1,707,142
1,167,856
628,570
Intangible Assets

Website
20,000
20,000
20,000

20,000
20,000
Accounting Software
20,000
20,000
20,000
20,000
20,000

Total Intangible Assets

40,000
40,000
40,000

40,000
40,000
Total Long-Term Assets
2,825,714

2,286,428
1,747,142
1,207,856
668,570
 Total Assets
6,803,550
8,262,027

8,856,403
11,823,158
12,847,973
Liabilities & Capital

Long & Short Term Liabilities

Accounts Payable to Suppliers

241,559
3,186,397

2,093,152
Owner’s Equity
Capital
5,750,000
5,750,000
5,750,000
5,750,000
7,750,000

Net Profit
1,053,550
2,512,027
2,864,844

2,886,761
3,004,821
Drawings

502,405
572,969
866,028
901,446

Total Liabilities & Capital

6,803,550
8,262,027
8,856,403

11,823,158
12,847,973
* Note: Capital rose by Tk. 20, 00, 000 in the 5th year due to renovation
Additional Information:

Fixed Assets & Depreciation

Fixed Assets
Depreciation

Cost
Year
Per Month
Per Year

Interior (Furniture, Lighting, fixtures, etc.) 2,200,000

7
26,190 314,286
Air Conditioner 800,000

5
13,333 160,000
Generator 250,000
5

4,167 50,000
Computer 50,000
5
833 10,000
Printer 25,000
5
417 5,000

Total 3,325,000
Total
44,940 539,286
Cash Flow Statement

Cash Flow Statement

Year 1
Year 2
Year 3

Year 4
Year 5
Year 6
Operating Cash Flow
EBT
1,446,400
3,391,036
3,861,459

3,890,681
4,048,094
3,884,326
Depreciation

539,280
539,280
539,280
539,280

539,280
539,280
Less: Tax
392,850
879,009
996,615
1,003,920

1,043,274
1,002,332
Total Operating Cash Inflow
1,592,830

3,051,307
3,404,124
3,426,041
3,544,101

3,421,274
Cash Flow from Investment Activity
Purchase of Other Operating Assets
350000
0
0
0
0

0
Purchase of Printer
25000
0

0
0
0
0

Purchase of Air Conditioner

800000
0
0
0
0
0

Purchase of Generator
250000
0
0

0
0
0
Purchase of Software

20000
0
0
0
0
0
Purchase of Website
20000

0
0
0
0

0
Purchase of Computer
50000
0

0
0
0
0
Expansion & Renovation
2000000
Total Cash Outflow from Investment Activities

1515000
2,000,000
Total Cash Flow
77,830

3,051,307
3,404,124
3,426,041
1,544,101

3,421,274
Opening Balance
276,000
353,830
3,405,137
6,809,261
10,235,302
11,779,403

Closing Balance
353,830
3,405,137
6,809,261

10,235,302
11,779,403
15,200,677
Discounted Cash Flow

Year
Undiscounted Free Cash Flows
PVIF12%,n
Discounted Free Cash Flows
Cumulative Discounted Free Cash Flows
0
(5,474,000)

(5,474,000)
(5,474,000)
1
77,830

0.89285714
69,491
(5,404,509)
2

3,051,307
0.79719388
2,432,483
(2,972,026)
3
3,404,124
0.71178025
2,422,988

(549,037)
4
3,426,041
0.63551808

2,177,311
1,628,273
5
1,544,101

0.56742686
876,164
2,504,438
TV at 5th Year
3,054,709
0.56742686
1,733,324

4,237,762
Break Even Analysis
Break Even Analysis
Year 1

Year 2
Year 3
Year 4
Year 5

Year 6
Fixed Cost
Rent
720,000
720,000
720,000
840,000
840,000

840,000
Salary
1,080,000
1,150,000

1,223,500
1,300,675
1,373,709
1,450,394

Bonus
180,000
111,300
133,665
157,148
173,406
190,476

Tax
392,850
879,009
996,615

1,003,920
1,043,274
1,002,332
Total Fixed Cost

2,372,850
2,860,309
3,073,780
3,301,744
3,430,388
3,483,202
Variable Cost
Cost Of Goods Sold

1,113,520
1,336,224
1,447,576
1,503,252

1,558,928
1,558,928
Maintenance Expenses
180,000

189,000
198,450
208,373
218,791
229,731
Utility
660,000

693,000
727,650
764,033
802,234

842,346
Stationery
72,000
75,600

79,380
83,349
87,516
91,892
Miscellaneous
240,000
252,000
264,600

277,830
291,722
306,308
Total Variable Cost

2,265,520
2,545,824
2,717,656
2,836,836

2,959,191
3,029,204
Total Expected Revenue
7,381,200
8,857,440
9,595,560
9,964,620

10,333,680
10,333,680
Break Even Point
Tk. 285,307.14

(5 Months)
From the break even analysis we have found that our sales are well over break even, which
indicates strong feasibility of our business plan.
Discounted Pay Back Period and NPV
NPV

৳ 5,474,000

Discounted Payback Period

5 Months
Discounted Pay Back Period: From the above calculation we can see that the discounted payback
period is only 5 months which is within our business valuation time frame, 5 years. So based on the
discounted payback period we can say that our business plan is acceptable.
Net Present Value (NPV): We have calculated NPV with terminal value. Considering the value we
can see that the NPV is ৳ 5,474,000 of our business. This NPV indicates that our business is highly
profitable, so it is very much acceptable. So considering both NPVs we can conclude that our
business plan is more than acceptable.
From above analysis we can say that our business plan is proven to be financially successful.

Promotional Expenses
Freya’s long term objective is to increase the sales by 15% in 2nd year, 20% in 3rd year, 25% in 4th
year, 30% in 5th year and 6th year considering 1st year as the base year.
Promotional Expenses
1st Stage (Opening Day)

Endorsement
1,00,000
Promotional Festoons & Food & Beverage
70,000
Invitation cards
11,000

2nd Stage (Promotion for 1st year)

Newspaper (In “Prothom Alo”, “Noksha”, colored half page advertise 2 times) 80,000*2
1,60,000
Magazine (“Mirror” for each month) 48,000*12 5,76,000
Pamphlets and Posters 1,74,000

Kiosk (For 3 days) 15,000*3 45,000

Total

11,41,000

Therefore, we are allocating TK 11, 50,000 for our first year promotional activities and for next five
years we are planning to invest TK. 4, 00, 000 for each year.
Long term sustainability

With our unique club like environment and customer centered focus we will be compete in the
market strongly. We will go extra mile for our customers as we already providing lots of extra
facilities to our customers. We will make sure that our employees, environment, equipment &
machineries all focuses on providing best beautification experience. We will enhance our existing
competencies and achieve the future competencies. We will take the beauty experience one step
beyond anything else. Through our uniqueness we will be able to sustain in the long run.
Conclusion
The main purpose of our business is to provide the best beautification experience for today’s
women. We not only focused on trained employees to achieve this but we will incorporate unique
environment with lots of facilities that can be enjoyed by our customers. For us our saloon will not be
place for just for consuming our service rather here they will come to enjoy, take pleasure and relax
while getting the service. For our salon “Freya’s” service is not just a service it is an experience to be
enjoyed.