NAME Bamlak Tamene ID 7880

Submitted to ;Ins Ousman S

Submitted date Juiy 29
1 Introduction ................................................................................................... 3

2 Executive Summary.................................................................................... 3

3 Name of the Business................................................................................ 4

4 Type of Business ........................................................................................... 4

5 Owner of the Business............................................................................... 4

6 Start-up capital............................................................................................ 5

7 Source of capital......................................................................................... 5

8 Company summary .................................................................................... 5

8.1 Mission Statement............................................................................... 5

8.2 . Start-Up Summary............................................................................. 6

9 Management summary.............................................................................. 6

10 Organizational and Staff ........................................................................ 6

11 Business idea and market ...................................................................... 7

12 Description of Market ................................................................................ 7

13 Marketing Plan Product ............................................................................ 7

14 Marketing plan Promotion ......................................................................... 8

15 Market Segmentation ............................................................................. 8

16 Positioning strategies ................................................................................. 8

17 SWOT Analysis ......................................................................................... 8

18 Monthly Sales Plan ............................................................................... 10

19 Market Analysis ..................................................................................... 11

20 Risk Analysis .......................................................................................... 11

21 Exit Strategy .............................................................................................. 11

22 Monitoring .............................................................................................. 11
1 Introduction
Barber is defined as a person who cuts men’s hair and shaves or trims
beards as an occupation .additionally ,hair dresser is defined as a person
who cuts and styles hair as an occupation .barbershop is a hair cutting
shop for men and hairdressing salon could be haircutting and styling store
for both men and women. barbering and hairdressing industry offers
personal care, especially hair care services .as the industry is developing,
the service offered to the customers include haircutting, hairdressing,
beard trimming, hair dying, face and head massage etc. due to the growing
number of service types the market is gradually filled with specialized hair
care shops, such as beauty salons, barbershops, and hairdressing salons
to service various types of customer

2 Executive Summary
Bami barber shop shall be established as a private limited company in
inside AAU university type of business is service delivery business. The
capital required to start the business shall be acquired through bank loan
and partners contribution.

The startup capital for investment and working capital is birr 12 0,000.the
primary service delivered by this business shall be haircutting, hairdressing,
beard trimming, hair drying, face and head massage.

Since, AAu contain many students currently. Students need barber house.
albeit there is barber shop service in AAu town ,students are not
satisfied, due to the distance of barber shop to university, the price,
availability and

3
quality of the current services. To overcome these just we focus on this
creative business plan .The financing needed for our business plan is
basically on our equity and the rest we get from banks, as loans and deal
with them to return after three years of our launched business plan.

Finally, the successfulness of our business is service type which we give to

customer, cost reduction, quality service relative to competitors.

3 Name of the Business

The business will be known as BAMI Barber Shop

4 Type of Business
My business is service providing. Service
The purpose of my business is to give the special services to our
customers. Most of our customer is AAu university students and resident
in AAu university.

5 Owner of the Business

The business will be formed by me a profit making enterprise is individual
paid in capital. T o b e success I to pass every challenges. The
formal charter and the agreement accordance with the law of AAu
and will be drawn up by the authorized body.
 Name Address Qualification Function in the Relevant experience
business
Bamlak 0901712186 Management Manager 0 year
tamene

6 Start-up capital
Investment 70,000 birr Working capital 50,000birr

Total 120,000 birr

7 Source of capital
The source of our start-up capital is from own saving and bank loan.
In order to accomplish the lone we have borrowed from
commercial bank of Ethiopia in AAu branch.

8 Company summary
The barber shop opened in collection of different partners to
see the customer need doesn’t get full service around that area
and build this company proper service for the customer.

8.1 Mission Statement

 Our Mission is to provide a better service for our customers need.

 To provide many kinds of services for all customers
with satisfactory costs, particularly to students and the
resident in AAu university. Creating accessibility of all
necessary services at the area with affordable price to solve
our customer’s costs, time, and money.
 Increasing service profit of the owner of the business by the
higher rate.
 Be the first and most competent supplier of the barber
 shop service in AAu university.

8.2 . Start-Up Summary

The cost to open the barber shop is 120,000. The majority of the
expenses are in full filling the necessary material and equipment
totally 80,000. And the working capital to continue current capital on
work is 40,000 and will require approximately 50 days to complete.
50,000 of the start-up costs will be funded by the owners. The
owner’s source of funds is a combination of liquid assets and
marketable securities, primarily from their existing catering business.

9 Management summary
The business will be in compliance regarding the rule and regulations of
AAu town and also with countries’ business laws. The owner will obtain
the required operating license issued by the Trade and Industry and the
work permission granted. Contractual agreements and other legal services
will be provided by the law of AAu town ordinary court with
representative
Location and Hours of Operation
The proposed business will be located in inside AAu University. This
area will be a good location that may invite a large amount of
customers towards and services. The reason why we select the area is that
there is no other barber shop inside in university and to provide this
service to students. The Service will not be closed except in a day of
New Year, Christmas’s, Easter, Ramadan, Arefah and Meskel

10 Organizational and Staff

In this business expects to hire at list 5 employees. We’ve adopted an
effective interview process designed to this service with highly qualified
people for each position. Each applicant will be rated and evaluated
according to a pre-defined set of standards designed for each position.
Background checks will be utilized for designated positions. Recruiting
efforts will always center on referrals.
 P o sit io n Ta sk ,re sp o n sib ilit y a n d Qu a lific a t io n
M a n a g e r A person has at list diploma ,qualified management, who can manage
The all day to day activity, and look how the service are go on.

Ba r be r A person who can skill,and responsibility to give service to customer

Cle a ne r A person who can responsibility to clean the house.

11 Business idea and market

Even if there are other barber shop around this town which can
deliver service for the needs of the customers, our barber shop aimed at
providing services as match as possible in fair price and high quality.

12 Description of Market

This barber shop service is going to be opened in AAu town in

inside the university. Reaching the customer by providing services to
get more profit.

13 Marketing Plan Product

Our barber shop offers the services stated

above.
 Since it gives the better service ever with fair price customers
choose to come to our barber shop service.
 It offers the most advanced services on time.
14 Marketing plan Promotion

We found it better to promote our Barber shop service by using

different posters, opening ceremony, distributing fliers and through
putting barber’s pole in university and also advertising through
university adverting board etc.

15 Market Segmentation
Bami barber shop service will appeal to a broad base of consumers in
university. The location selected for barber shop was chosen primarily
to appeal to the growing number of students.

16 Positioning strategies
We position the service in a suitable manner for our work as well as
the customer. The customer can get service in our barber shop.
Since our target customer are AAu university student.

17 SWOT Analysis

The environmental analysis of the business consists of both external

and internal aspect of the environment. From external, opportunities and
threat will be analyzed while internal environment contains analysis of
strength and weakness of barber shop service in its working time
periods.

These all analysis is called as SWOT analysis.

a/ Strength:The strength of this project marketing, finance, manufacturing

and organizational structure .it includes the positive attributes of the
people involved in the business their knowledge, available
capital, established customers, etc..

B / Weakness: Difficult to expand the barber shop service because of the

 place that is not much enough in the present location, shortage of
capital, lack of access to skill or technology inferior service offering in
location of the business.
 Recruiting and retaining quality
employees
C / Opportunities: customers, it can easily meet demand of different
level of customers; it can provide all the service provide by barber shop
service.
D / Threats: Since most of our customer is AAu students and
resident in university, There will be decreased and few number of
customer during summer season.
Productio
n
In our business, we use the modern technology like, modern chair,
cosmetics and also hair machine etc. The source of this device will be
from well-known company that can deliver those devices.
Start-up
Capital
This business plan is prepared to obtain supporting in the amount
of
120,000 birr The supplemental financing is required to begin work on site
preparation and modifications, equipment purchases, and to cover costs
in the First year of operations

Information about funding source

Loan:
Commercial bank of Ethiopia which founds in AAU
Credit agreement
Finalized

9
Staff costs

Position Qualifications Salary Per month Social security T otal

Manger D e g r e e 3000 J/0 0 4 5 2000

Barber Diplom a 2500 J / 6 5 7 1500
staff cost
Barber Diplom a 1500 J / 0 3 5 1500
Barber 10 + 2 1000 J/0 0 4 5 2000
Cleaner 10 + 2 1000 J/0 2 2 5 2000

18 Monthly Sales Plan

M o n t 1 2 3
h
P r i c e 4 0 4 2 4 3
pe rm Qu a n t it y 6 0 6 5 7 5
Turno ve r 2400 2730 3 2 2 5
Shampo P r ic e 6 0 6 5 7 0
o
Qu a n t it y 5 0 7 0 7 0
Turno ve r 3000 4550 4 9 0 0
P ric e 1 5 2 0 3 0
je ll Qu a n t it y 5 0 6 0 5 0
Turno ve r 750 1200 1500
So ft P ric e 7 8 8.5
Qu a n t it y 100 110 1 2 0
Turno ve r 700 8 8 0 1020
All Turno ve r 6850 9360 10645
Product

10
19 Market Analysis
The barber shop service is rapidly expanding its services and number
of services from time to time. The barber shop has many visible
comparative advantages than its competitor. In terms of services
an overwhelming advantage than the barber shop that is found in the
inside of AAu building which is called "BamI Barber Shop”. In addition
to this, it may have the ability to provide services with low costs and
have capacity to serve the customers appropriately in a better manner
than its competitor.

20 Risk Analysis
Even if we try to open Bami Barber Shop service, there may be a
problem besides from what we expect. It may from our
competitors. The material for our service may be increase in price.

21 Exit Strategy
By any means our business may fail. The failure is may occur due to
the external factors. Before our business fail we made audit in each
month. In the audit If there is a threat we try to balance it. If it is
impossible we try to out from the business according to our
agreement when we start the business. We should exit from the
business before we lost the original business.

22 Monitoring
Since the business is formed has the responsibility to monitor all
day to day activity. But most of the time our business is controlled by the
manager. Manager should observe day to day employees activity. see
whether the materials in our business are used appropriately. And the
manager looks all the employee how, they currently work, and what
challenge the employee get. Generally the manager control how the
business is continue.

11
 Appendix:
Finacial Loan from
o Commercial Bank of Ethiopia Bank

KeyWord
SWOT:- Strength Weakness Opportunity and Testing
AAu; university

12