NATIONAL OPEN UNIVERSITY OF NIGERIA

HAIR AND BEAUTY SALON BUSINESS PLAN

PREPARED BY

FULL NAME: CHIAMAKA CHIKAODILI

MATRIC NUMBER: NOU171025396

DEPARTMENT: ENVIRONMENTAL SCIENCE & RESOURCE

MANAGEMENT

FACULTY: SCIENCE

SEMESTER: 2019/2

LEVEL: 300

INCUBATION CENTRE: NORTH CENTRAL

STUDY CENTRE: WUSE 2 STUDY CENTRE

PRESENTED IN PARTIAL FULFILMENT FOR PASSING

GST 302 – BUSINESS CREATION AND GROWTH

INTRODUCTION

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

Business Overview

Hair business in Nigeria, as well as in other parts of the world is a money making venture. This
is as a result of the seriousness that is being attached to the trade. These days, more than ever
before in the history of man, there are more people who are taking to the trade. In the United
States for instance, those who own hair salons are considered as those who run essential services,
since both men and woman are known to want to care for their hair.

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

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

Executive Summary

 Introduction

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

At Talia Touch beauty Salon, it is a different ball game altogether, as maximum flexibility and
sturdy customer attention is to a large extent guaranteed. Talia Touch without mincing has plans
in place to become the one stop hair salon when satisfying her clients comes to mind. As such,
we will sure gain significant market share and create serious long-term relationships with our
clients.
  The Company

Talia Touch is a hair business corporation, which is owned fully by Ms. Chiamaka Chikaodili. It
is located in 450 Garki, Abuja. Ms. Chiamaka Chikaodili is a seasoned beautician who has six
year experience in hair styling, and have serves in countless of salons, She will be responsible for
the day to day operations at the salon.

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

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

As a way to keep attracting ample clients, we shall do well to always train our stylists; this is so
that they can continue to be abreast with all the styles that abound. It is also vital to note that we
shall open our doors to all races (black, white, Caucasian, and all what not)

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

Talia Touch is owned by a seasoned hair stylist- Ms. Chiamaka Chikaodili and she has all the
right plans, and projections for the business. From the very first year she stepped her foot on an
impresive salon where she once worked, she began to garner skills about the hair salon trade.
These trainings have gone a long way to broaden her horizon, as well as train her to be one the
best hair stylists.

 Our Service Offering

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

 Fixing of Weaves
 Braiding
  Relaxing the hair
 Barbing the hair
 Dying of Hair
 Manicure
 Pedicure
 perms
 Curling
 Reconstructing
 Weaving
 Waving

Our Vision Statement

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

 Our Mission Statement

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

 Our Business Structure

Talia Touch as stated earlier upon commencement is supposed to be a small scale business,
however, there are plans to upgrade as the business booms and births other branches in and
around Nigeria. We intend to operate with the best of structures in place, so that we can give our
clients optimal satisfaction.

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

 Chief Executive Officer – Owner

 Manager – Hair Stylist
 Receptionist
 Accountant/ Cashier
 Barber
 Hair stylist 1
 Hair Stylist 2
 Cleaner
 Greeter/ Security Man
Roles and Responsibilities

Chief Executive Officer (Owner):

 Responsible for providing direction for the business.

 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for fixing prices.
 Responsible for recruitment
 Responsible for payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Prepares budget and reports for the organization
 Responsible for Training and Development in the organization
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members

Manger – Hair Stylist

 Carries out the vision, mission, and overall direction – i.e. leading the development and
implementation of the overall organization’s strategy.
 Responsible for managing the daily activities in the salon.
 Ensures that the facility is in tip top shape and conducive enough to welcome customers
 Interfaces with vendors
 Handles procurement
 Supervises all activities in the salon
 Makes sure that customers are satisfied before leaving the salon

Receptionist:

 Makes sure that all clients waiting to make their hair are comfortable and well attended
to.
 Welcomes potential and old clients into the salon.
 Carries all other duties as directed by the manager.

Accountant / Cashier:

 Collects payment for the services rendered.

 Prepares financial report at the end of every working week
 Handles all financial transaction on behalf of the company
 Interfaces with our bankers
 Responsible for payment of tax, levies and utility bills
 Handles any other duty as assigned by the manager
 

Hair Stylist

 Sees to it that all clients are promptly attended to.

 Makes nice hair styles for clients
 Carries out all other duties as assigned by the manager.

Barber

 Manages the barbing arm of the saloon

 Handles any other duty as assigned by the manager
 Carries out all other duties as directed by the manager or CEO.

Cleaner

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

 Opens up the office for business every day.
 Is always on ground to clean and maintain the interior and exterior of business.

 Greeter/ Security Man

 Welcomes people as they make way into the salon.

 Opens up the door for those coming in.

SWOT ANALYSIS

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

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

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

 Strength:

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

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

 Weakness:

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

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

 Opportunities

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

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

 Threat:

Some of the threats that are likely going to confront Talia Touch Salon might be losing our
clients to other competitors. If we win them over and are not able to give them the best of
services, then there might be likelihood that we lose them again. This is one of the aims of
wanting to even surpass the needs of the people so that we can gladly continue to be at the top
always.

Market Analysis

 Market Trend

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

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

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

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

 Our Target Market

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

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

 Corporate Executives
 Business People
 Parents and Guardian
 Celebrities
 Teenagers
 Students

Our Competitive Advantage

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

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

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

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

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

SALES AND MARKETING STRATEGY

 Marketing Strategy and Sales Strategy

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

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

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

 Open our Talia Touch Salon with a big shindig.

 Advertise our salon business on magazines for men and women, in business directories
and local radio station
 Promote our business online via our official website and all available social media
platforms
 Continuously Improve the performance of our services
 Hire the services of experts to make our Talia Touch salon brand known in Abuja.
 Deliver consistent customer experiences to all our guest; making our first impression
count positively
 Make use of attractive hand bills to create awareness and also to give direction to our
salon
 Adopt direct mailing coupon marketing approach
 Position our signage / flexi banners at strategic places
 Create a loyalty plan that will enable us reward our regular customers
 Engage on road shows within our neighborhood to create awareness for our salon
business.

Sources of Income
Talia Touch Salon business will generate income from the following service offerings;

 Perming
 Weaving
 Braiding
 Washing and dressing of hair
 Fixing of artificial nails
 Hair cuts
 Manicure
 pedicure

Sales Forecast

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

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

 First Year-: #650,000

 Second Year-: #900,000
 Third Year-: #1,300,000

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

 Our Pricing Strategy

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

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to
charge more (except for premium and customized services) and we don’t intend to charge less
than our competitors are offering.

Be that as it may, we have put plans in place to offer discount services once in a while and also
to reward our loyal customers especially when they refer clients to us. The prices of our products
will be same as what is obtainable in other places. On the average, our hair services will cost
between #35,000 to #120,000 per service rendered. Do bear in mind that this depends on the
service rendered.
  Payment Options

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

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money

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

Publicity and Advertising Strategy

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

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

We will ensure that we leverage on all conventional and non – conventional publicity and
advertising technique to promote our car was business. Here are the platforms we intend
leveraging on to promote and advertise Talia Touch Salon in Abuja;

 Encourage our loyal customers to help us use Word of Mouth mode of advertisement
(referrals)
 Advertise our hair salon business in automobile magazines, local newspaper, local TV
stations and local radio station
 Promote our business online via our official website
 List our business on local directories (yellow pages)
 Sponsor community pageants and fashion shows
 Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
et al to promote our brand
 Install our Bill Boards on strategic locations
 Direct coupon mailing approach
 Engage in road show from time to time
 Distribute our fliers and handbills in target areas
Start – Up Expenditure (Budget)

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

 The Total Fee for Registering the Business Garki, Abuja : #75,000.
 Legal expenses for obtaining licenses and permits: #165,500.
 Marketing promotion expenses (2,000 flyers at #20.00 per copy) for the total amount of
#43,580.
 Cost for hiring Consultant – #42,000.
 Insurance (general liability, workers’ compensation and property casualty) coverage at a
total premium – #30,800.
 Cost of accounting software, CRM software and Payroll Software – #93,000
 Cost for leasing facility for the salon: #670,000.
 Cost for facility remodeling – #850,000.
 Other start-up expenses including stationery – #18000)
 Phone and utility deposits (#63,500).
 Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
#640,000
 The cost for Start-up inventory – #105,000
 Storage hardware (bins, utensil rack, shelves, glasses case) – #2,720
 Cost for serving area equipment ( glasses, flatware) – #5,000
 Cost for store equipment (cash register, security, ventilation, signage) – #13,750
 Office equipment (vacuum cleaner et al)- #213,600
 The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs,
Sound System, hair dryers, steamers, clippers, and chairs et al): #400,000.
 The cost of Launching a Website: #60,000
 The cost for our grand opening party: #750,500
 Miscellaneous: #2,000

We would need an estimate of #4.2 million to successfully launch our all-round saloon business.

Generating Funding / Startup Capital for Talia Touch salon

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

 Generate part of the start – up capital from personal savings and sale of his stocks
 Generate part of the start – up capital from family members and friends (soft loans)
 Generate a larger chunk of the startup capital from the bank.

Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Talia Touch business is to ensure that we continue to
deliver quality services, improvise on how to do things faster and cheaper. We are not going to
relent in providing conducive environment for our workers and also the required trainings that
will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug
financial leakages, the management of Talia Touch salon will adopt the use of payment machine
and accounting software to run the business.

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

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