INDEPENDENT BUSINESS PLAN

SAN LEANDRO DECA CHAPTER

SAN LEANDRO HIGH SCHOOL

2200 BANCROFT AVENUE

SAN LEANDRO, CA 94577

CHINONYE OSUJI

NOVEMBER 28, 2016

 TABLE OF CONTENT

I. EXECUTIVE SUMMARY

II. PROBLEM

III. CUSTOMER SEGMENTS

IV. UNIQUE VALUE PROPOSITION

V. SOLUTION

VI. CHANNELS

VII. REVENUE STREAMS

VIII. COST STRUCTURE

IX. DETAILED FINANCIALS

X. KEY METRICS

XI. COMPETITIVE ADVANTAGE

XII. CONCLUSION

XIII. BIBLIOGRAPHY

XIV. APPENDIX
 EXECUTIVE SUMMARY

Lady L Braiding Outlet will provide full hair service including hair cut, perms, reconstructing,
colours, shampoo, conditioning, curling, weaving, braiding and more. The salon service both
men, women as well as children. It offers its services in an attractive, clean and friendly
environment and will have the latest state-of-the-art hair salon equipment. Lady L Braiding
Outlet expects to gain a profitable market share within a very short period of time.
Determinations have been made for the size of the market, amounts of budgeted advertising
and promotional dollars and the competitive landscape.

PROBLEM

Lady L Braiding Outlet is addressing three major problems in the braiding industry. These
problems include time consumption, convenience and affordability.
Not many people want to sit for the 2-3 hours braiding his or her hair. This is problematic
because some people have problems booking appointment due to their schedule so they just
want to rush into the salon braiding their hair quickly and leave for the next person to braid his
or her hair. This is impossible because hairdressers waste a lot of hours braiding a particular
person's hair depending on the type of braid.
Some salons do not have enough seats to keep the customers waiting comfortable, it does not
have enough equipment to expedite the braiding of customers hair. This is one of the reasons
why hairdressers take their time braiding a person's hair and it is also inconvenient,
uncomfortable for the customers. The customers would also feel insecure because if their is
less equipment it means sharing equipments with the next person beside you knowingly.
Theyre salons that are so expensive for people with low income to afford so they just leave
their hair the way it is feeling discouraged as to other salons may be as expensive as others.

CUSTOMER SEGMENT

My target market would both be from young teenagers to adult from the age range of 7-40. It
would be both black and white and would be located at my neighbourhood. I would be braiding
both men and women hairs. Lady L Braiding Outlet are targeting lower to middle class families
and the quality of my service would be low.

UNIQUE VALUE PROPOSITION

The one thing that separates Lady L Braiding Outlet from their competitors is free wifi. Lady L
Braiding Outlet would provide free wifi to all its location such that everyone coming in can have
access to internet. It would provide in-depth data that help people keep their hair safe and
clean.
 SOLUTION

Lady L Braiding Outlet recognizes three major problem in braiding industry. These problems as
stated above, includes time consumption, convenience and affordability. We can braid your hair
as fast as possible giving you chance to do all other things.
It would be convenient for all customers, enough seats and enough braiding tools.
It would be affordable for all customers with low income.

CHANNELS

In order to reach the wide range of customers Lady L Braiding Outlet seeks to serve
multichannel marketing will be necessary. The channels through which these customers will be
reached include social media, television, and printed advertising. This three-prong approach
covers the widest range of potential customers in the most efficient way.
The social media channel, it is possible to make these advertisements appear for members of
Facebook and Twitter in specific geographic locations.

REVENUE STREAMS

Lady L Braiding Outlet will depend solely on sales revenue generated from day-to-day
business operations. Although starting capitals from investors is needed to begin operation,
projected revenues are expected to maintain solvency and provide profitable returns. Granted
projecting customer volume at this stage is difficult, Lady L Braiding Outlet to braid around 6
customers daily in the first year of operation. However, Lady L Braiding Outlet seeks to increase
the number as year pass. Assuming 6 customer per day at an average expenditure of $9.50 per
visit, Lady L Braiding Outlet projects to bring in $760 per day in the first year. This would support
a projection of $227,400 in the first year of operation.

COST STRUCTURE

The customer acquisition costs entail all expenses incurred to convince potential customers to
come to Lady L Braiding Outlet. These cost include advertising and market research, which
focus on what a customer is looking and how they can be most effectively reached through
different mediums of advertisement. Under the current cost structure, projections suggest an
allocation of $19,325 would be appropriate to cover customer acquisition cost for one store. The
most efficient and effective way to use the advertising budget includes the use of three main
campaigns: television advertisements, billboard advertisements and social media
advertisement.
Local television stations charge $300 to $500 for 30 seconds television ad. Along with
cost to air the commercial, there is a cost involved with the creation of the ad. Local PR firms
offer basic commercial production for $2000. Lady L Braiding Outlet plans to spend
approximately half of the $19,325 budget on television ads. That is $10,500 to allocate towards
these ads. Billboard Ads: $4000 and social media ads: $4825.

DETAILED FINANCIAL

GENERAL ASSUMPTIONS

YEAR 1 YEAR 2 YEAR 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00%

Other 0 0 0

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $37,470 $43,440 $48,500

Bill Payments $89,500 $100,150 $120,240

SUBTOTAL SPENT ON OPERATIONS $126,970 $143,590 $168,740

KEY METRICS

Lady L Braiding Outlet will measure essential components to business operation including
sales, monthly profit, customer preferences, variable costs, overhead costs, and pricing. This
information allows the company to evaluate and improve factors productivity, development, and
efficiency. Measuring variable and overhead costs will help Lady L Braiding Outlet become
more productive and grow. Overhead costs include costs that aren't dependent on the amount
of business operation like rent. Tracking overhead costs separately will allow the business to
more clearly evaluate the spending associated with variable costs. Keeping tabs on variable
costs will assure that the pricing of ingredients and wages are consistent with competitive
industry norms.