Barbershop
From Startup
The Thousand Rand Challenge Business Plan Template
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.
This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying
[edit] Description of the business
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done?
- He is going to provide a servece of cutting people's hair and beards.
Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost?
- The skill needed to provide this service is that of knowing people's hair and what styles suit them.
- The client has been cutting people's hair for for a long time, he therefore has experience in the field.
What tools or equipment are needed? Where can they be bought, and how much will they cost?
- Tools needed to do this are: shaving kit R300 at Makro
Hand mirror,he has
scissors R 50
How much space is needed to work from?
- A small place is needed to do this job.
Where will the space be found, and how much will it cost to rent?
- The client will contribute in the renting of a small container the rent will cost more or less R100
What sort of people will buy the product? Who are they and where do they live?
- Males who want to cut and shave their beads, females who want to cut as well as their children.
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- The frequency of the clients depends on the individual thus some may come every two weeks or others once a month.If the client cannot come to the shop the client will provide a service, whereby he will go to their house and provide the service.
[edit] Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
[edit] Downstream Businesses
A list of businesses and ideas that this business could provide products for.
[edit] Competitors
What major competitors will attract clients' spending away from the business' products?
- The only competition that exists is in my community,from Kwa Mzwala
What prices and products do these companies have?
- They cut hair with R 10 and shave with R5
What makes them popular / unpopular?
- They are popular because they have been in existance for many years, and unpopular because they are unprofessional.
What do they do to attract customers? Specials? Interesting marketing / advertising?
- They don't offer any specials or do interesting marketing, people know about them through the word of mouth.
Which of the competitors stand out as being particularly good at what they do?
- NO competitors stand as good
What can be done to stand out against them? What can be done that is more exciting / more interesting?
- He will provide customers with the best customer service.
- He will research new trends in the hair industry therefore offering his clientshis clients the trediests styles possible.
[edit] Marketing the business to clients
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
- Men,women and children.Consistency is very important to these client and the clients shall do the best to ensure clients satisfaction
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
- It is an all year long business,it is neither seasonal nor fashion dependent.
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
- Very high in quality
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- The client believes in a word of mouth, so if he does the best the people will tell others about him.
Do the clients want the same things sold in the same way, or do they want things to change all the time?
- They prefer consistancy
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
- He will advertise through at the community hall other popular places( phone containers)frequented by the community members
- He will provide the latest treands and
- on the the day of the opening of the store he will have specials and demonstrations of his work.
- It will cost around R100
[edit] The business inputs and outputs
List all of the inputs (products that are required to produce the products):
- The following are needed:
-Quality cutters -Quality scissors -Hand mirror -Dust cloth
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
- Makro in Milnerton,it will take a day to get them.
List all of your outputs (products created by your business):
- The outputs will be the best hair cuts and shaving customers to perfect precision.
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- Haircuts R10
- Special hair cuts R15
- Shaving R5
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
- none of my outputs have a shelf life.
[edit] Setting up the business
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
- Advertising
- A container
- Change,R50 to for cash flow if it is neccessary to provide change for the customers.
How long will it take to get all of these things and how much will they cost to get?
- It will a day, R1000 will enough to get the business started.
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- The only cost it will be electrictity
Total amount for fixed costs: R_______________
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
- He will be working on his own
What training will they need, how long will it take and how much will it cost?
- He has the experience
[edit] The manufacturing or production process
List every step, from start to finish, to produce the product
- Showing the customers the styles and trends offered.
- finding out what styles they prefer
- Then proceed with the cutting of the hair
- After cutting the hair show them the finished product
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
- All the processess will be conducted by the client
What possible problems may happen during each step of the manufacturing process?
- The possible problem could be the customer may not be satisfied with the final product
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- The solution is to be accurate and precise in every hairdo he provides
- If the customer is dissatisfied a money back guarantee is offered.
What is the maintenance program for all the equipment?
- The cutting utensils will be maintained by being wiped after each customer use.
- Weekly soaking in warm soapy water.
- Buying new blades every month.
What safety requirements are important for production?
- In case of an emergency the client will provide anti-septic and plastars
How will quality control and client feedback be handled?
- He will ensure he cuts the client's hair to their satisfaction.
[edit] Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
- I expect between 1-10 clients a day to cut their hair or get a shave.
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
- Business is consistant but it is beter in summer and school holidays
What sort of pricing strategy will be chosen (cheapest or best)?
- the best
What profit margin will be chosen for the products
- cutting hair will be R15 and profit will be R11
- shaving will be R5 profit will be R3
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Cost Margin
Shaving R5 R2 Cutting R15 R4
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? Yes
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
Set out the products, costs, margins and selling prices:
|
Item |
Daily Target |
Monthly Target |
Cost Price |
Margin |
Selling Price |
Total per Month |
|
Item A |
X |
X x number of working days in a month |
R y.yy |
R z.zz |
R y.yy + R z.zz |
= monthly target x selling price |
What trends are included in the projections?
[edit] Running the business
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
Who will act as backup should the person responsible not be there? What do they need to act as backup?
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
What is the schedule for training and motivating staff?
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
[edit] Before beginning
List some of the support services available (legal, business and other) that might be needed
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
[edit] Related articles
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
[edit] External links
List links to outside websites that may be useful for anyone starting this business
[edit] Business Trials
List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile) Retrieved from "http://startup.wikicities.com/wiki/TRC_templates"
