BUSINESS PLAN FOR

HOTEL AND TOURISM

FACIAL TREATMENT AND REFASHION BEAUTY

MELES ZENAWI MIMORIAL

TVET COLLEGE

JUNE, 2005 E.C

DIRE DAWA (Ethiopia)
 Executive summary
Name of business; ILILEE BEAUTY SALON
Legal form---------------------- Sole proprietorship

Contact address ------------ Dire Dawa

Tel------------------------0915753038

Type of business ------ ----Service provider

Brief description of the business idea: This business is a service of Make up giving and Treatment in a better and
reasonable price for those who needs to be served by this service opportunity, Especially During Holidays And Weeding ceremony in
reasonable price

Customers/ target group

The customers are Local Community, Hotels Customer and especially Graduation day for students ,Offices Workers, Bank Workers
etc.

Owner
(Name, Address, Qualificaion, Function in the business, Relevant experience)

1. Etenesh Deneke degree management 10 years

Business idea and Market
Description of the business idea:

This business provides service for those who requires Facial treatment to improve any disorder of facial problem, Such as
White Head, Black head, pimple and acne. So Youngsters and middle age people for both Male and female need this service.
Promoting this service by using poster, Brochure, flyer etc.

Geographical area: It is near to the seido building, on the left side of the Com. Bank

Type of customers: Hotels, City dwellers, Foreigners and offices Workers.

Size of the total market: 80% of the total society of the dwellers

Description of the competitors: The competitors could be those who give traditional service with no skill of
professionally treating & Refashioning face, low customer handling techniques.

Market share of the business: Among 5000 people over 80% of market share could be for our business because of
the legality given by the government, our price to the service will be reasonable, so nothing will hinder our business
from having the line share.

Market plan product/Service: The service given will be Facial treatment, Make up.

Special about Service/unique about characteristics

The service is unique in that of:

- Service givers are professional

-The quality of service

_ modern and home made

After sales Service: We treat the side affect of Cosmetics.

Marketing plan price

How much are customers willing to pay?

 Highest

 Average X

 Lowest

How much are competitors price

 Highest X

 Average

 Lowest

How much is your price

 Highest

 Average X

 Lowest

What are the reasons for setting your price?

. Our price based on the customers’ capacity to pay and on our reasonable price

Compared to the service.

Product/service Type(1) Type(2)

Highest ;
Average;
Facial treatment
Lowest

Highest ; Highest ;
Average;
Refashion beauty Average;
Lowest
Lowest

Highest ; Highest ;

Average; Average;

Lowest Lowest

No
Margin for discount? No Yes(__ %) Yes(--%)

Marketing plan place:

Location of the business

Description of the planned location for the business

- The business location will be near Seido Building.

Reason for choosing the location:

-It can be easy for transportation

-It is nearby to university.

Reaching the customers by selling to:
Individuals Retailers Wholesalers Others

Marketing plan promotion:

-Printed information

-Posters

-brochures

-Opening ceremony

Legal form:
Legal form of the business will be:

Sole proprietorship Partnership Limited company Corporation

Reason for choosing this legal form:

-To make ease the hardship of the working condition .

-To increase income.

Start-Up Capital

Estimation of start-up Amount

capital
INVESTMENT
Land
Building 1000
Equipment 20500
Total Investment 21500
WORKING CAPITAL
____ months of staff 3500
costs
____ months of 3000
operational costs
Total working capital 6500
TOTAL START-UP CAPITAL 28000
Sources of Start-Up Capital

Sources of funding

Type Source Conditions Amount

(duration/interest)
Equity capital 􀂉 Own savings 10000

􀂉 Partner
Loan 1 􀂉 Family

􀂉 Friends

􀂉 Money lender
Loan 2 􀂉 Credit cooperative

􀂉 Government
scheme

􀂉 Bank loan
1 year 18000
TOTAL FUNDING 28000
Information about funding sources

Loan 1

Name and address of creditor or credit institution

Credit agreement 􀂉 under discussion 􀂉 finalized

 Money available on (date) ________

Loan 2

Name and address of creditor or credit institution

Commercial Bank Of Ethiopia Dire Dawa Branch

Credit agreement 􀂉 under discussion 􀂉 finalized

􀂉 Money available on (date) ________

Debt Service

Repayment 1 2 3 4 5 6

period Amount Amount Amount Amount Amount Amount

Loan 1

Installment/principa
l

Interest

Loan 2

Installment/ 18000 16500 15000 13500 12000 10500

principal

Interest 1800.00 1650 1500 1350 1200 1050

Debt service Sum 19000 17150 16500 14850 13200 11550

of Installments
 Staff costs/Month

S No Position Qualification Salary Per Experience Total staff

month cost
(ETB) (ETB)
1 Manager Degree 2000 10 Years 2000
2 Cosmetologist Diploma 1500 2 Years 1500
Total Staff Cost 3500

Organization of business premises

Rest room

Store
Washing Area

Reception Area Business Operation and Costs

Treatment Room
Monthly Sales Plan1

Powder Room All products, product range or services

Month 1 2 3 4 5 6 7 8 9 10 11 12

Facial Price 500 500 500 500 500 500 500 500 500 500 500 500
treatment
Quantity 300 300 300 300 300 300 300 300 300 300 300 300

Turnover 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000

Make up Price 300 300 300 300 300 300 300 300 300 300 300 300
 Quantity 30 30 30 30 30 30 30 30 30 30 30 30

Turnover 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000

All products Turnover 2400 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000

Monthly Operational Cost Plan

Planning is based on the monthly sales plan

Month 1 2 3 4 5 6 7 8 9 10 11 12

Product 1 Quantity 300 300 300 300 300 300 300 300 300 300 300 300

Materials All costs 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000

Product 2 Quantity 300 300 300 300 300 300 300 300 300 300 300 300

Materials All costs 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000

Materials Total costs 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000

+ Staff Total costs 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500
 + Others Total costs 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

Operation Total costs 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000

+ Capital Interest 1800 1650 1500 1300 1200 1050 900 750 600 450 300 150
cost
Depreciation 29 29 29 29 29 29 29 29 29 29 29 29

= Grand Total 11829 11679 11529 11329 11229 11079 10929 10779 10629 10479 10320 10179
costs

Cash Flow Plan

Monthly Cash Flow Plan

Month Pre 1 2 3 4 5 6 7 8 9 10 11 12

operatio
n

Cash 28000 3745 1444 2529 3629 47495 5879 7024 81945 93695 10559 11764 129845
beginning of 5 5 5 7 5 5 5 5
the month

+ Equity 10000 - - - - - - - - - - - -

+ Loans 18000 - - - - - - - - - - - -

+ Sales 2400 2400 2400 2400 24000 2400 2400 24000 24000 24000 24000 24000
0 0 0 0 0 0
+ Any other - - - - - - - - - - - -

I: Total 28000 2774 3844 4929 6029 71495 8279 9424 10594 11769 12959 14164 153845
cash in 5 5 5 5 5 5 5 5 5 5

+ 21255 - - - - - - - - - - - -
Investment

+Operationa 1150 1150 1150 1150 11500 1150 1150 11500 11500 11500 11500 11500
l cost 0 0 0 0 0 0

+ Interest 1800 1650 1500 1300 1200 1050 900 750 600 450 300 150

+ Any other 3000 - - - - - - - - - - - -

II: Total 24255 1330 1315 1300 1280 12700 1255 1230 12250 12100 11950 11800 11450
cash out 0 0 0 0 0 0

I –II Cash 3745 1444 2529 3629 4749 58795 7024 8194 93695 10559 11764 12984 142195
at the end 5 5 5 5 5 5 5 5 5
of the
month

Profit Margin

Monthly Estimation of Net Profit

Month 1 2 3 4 5 6 7 8 9 10 11 12

Product Quantity 300 300 300 300 300 300 300 300 300 300 300 300
1
Turnover 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500

Product Quantity 300 300 300 300 300 300 300 300 300 300 300 300
2
Turnover 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000

I. Total 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000 24000
Sales
- Total 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500 11500
Operation costs

Interest 1800 1650 1500 1300 1200 1050 900 750 600 450 300 150

II. Total 13300 13150 13000 12800 12700 12550 12300 12250 12100 11950 11800 11450
Costs

I–II Profit 10700 10850 11000 11200 11300 11450 11700 11750 11900 12050 12200 12550

(before
tax)

- Income 15% 1605 1627.5 1650 1680 1695 1717.5 1755 1762.5 1785 1807.5 1830 1882.5
tax 0

Net profit 9095 9222.5 9150 9520 9605 9732.5 9945 9987.50 10115 10242.5 10370 10667.50
0
(after tax)

Opening Balance

Opening Balance of My Business (Date)

Assets Value Liabilities Value

Fixed Assets Equity 10000

Long-Term Liabilities

Building 1000

Equipments 20500 Loans 18000

Total Fixed Assets 21500 Total Long-Term Liabilities 18000

Cash and bank 6500

Total Current 6500

Total Assets 28000 Total Liabilities and Net 28000

Worth

Profit & loss statement

Annual projected profit & loss statement
sales 288000
Net Sales 288000
Less: Cost of production 138000
Less: Administrative & Selling Expenses 42000
Less: Interest Expense 11650
Net profit Before Tax 138650
Less: Estimated Income Tax 17422.50
Net profit After Tax 117652.5

Break-even point
Breakeven Quantity = Total fixed cost
(price per unit - variable cost per unit)

Breakeven point = Total fixed cost x price per unit

(price per unit - variable cost per unit)
(breakeven sales level in dollar terms)

Return on investment

Rate of return = Amount received - Amount invested x 100

Amount invested