ADDIS ABABA UNIVERSITY

College of education and behavioral studies

Section 2
Course Title: Entrepreneurship

Assignment Topics: Business plan

Group member ID
1. Abiy Demise ……………………………………………………………………………………..UGR/0409/16
2. Abigel Fikru…………………………………………………….…………………………………..UGR/9265/16
3. Amanuel Teferi…………………………………………….……………………………………..UGR/6107/16
4. Ayantu Tibebu…………………………………………………………………………………….UGR/7251/16
5. Habetewold Assefa…………………………………………………………………………..UGR/3334/16

Submitted to: - Mr. ALI E.

Submission Date: MARCH 8, 2024G.C.

Table of Contents
1. Executive Summary.................................................................................................................................2

1
 1.1 Mission:.............................................................................................................................................3
1.2 Vision:................................................................................................................................................4
1.2.1. Key Elements of Our Vision:......................................................................................................4
1.2.3. How We'll Achieve Our Vision:..................................................................................................5
1.3 Objectives:.........................................................................................................................................5
1.4 core Values:.......................................................................................................................................6
1.4.1. Professionalism:.........................................................................................................................6
1.4.2.Customer Satisfaction:................................................................................................................6
1.4.3. Hygiene and Cleanliness:...........................................................................................................6
1.4.4. Innovation:.................................................................................................................................7
1.5 Keys to success..................................................................................................................................7
2. Product/service description.....................................................................................................................7
3. Swot analysis...........................................................................................................................................8
3.1.Strengths:..........................................................................................................................................8
3.2.Weaknesses:......................................................................................................................................8
3.3.Opportunities:...................................................................................................................................9
3.4.Threats:.............................................................................................................................................9
4. Marketing Strategy:...............................................................................................................................10
4.1.Pricing Strategy:...............................................................................................................................10
4.2.Product Strategy:.............................................................................................................................10
4.3. Promotion Strategy:........................................................................................................................11
4.4. Distribution Strategy:......................................................................................................................11
4.5. Operational plan.............................................................................................................................12
5. Exit Strategy:..........................................................................................................................................13
6. Balance sheet........................................................................................................................................14
7. Appendix...............................................................................................................................................15

2
OWNER: Amanuel teferi

Business Name: Konjit beauty and makeup salon

Address: Addis Ababa, Near 6 KILO

Telephone: +25140140965

Cell Phone: 0973880699

Email: konjitbeautyandmakeup@gmail.com

1
1. Executive Summary

Konjit Beauty Salon is poised to become the premier destination for female hair styling in Addis
Ababa specifically around the 6-kilo campus. Our mission is to offer top-quality hairstyle and
makeup services tailored to the needs of female students and workers, emphasizing
convenience, professionalism, and a welcoming atmosphere. With a vision to be the go-to salon
in the community, we aim to establish a profitable and sustainable business within the first year
of operation, while prioritizing customer satisfaction, hygiene, and innovation.

The CEO of konjit beauty salon is Amanuel, he noticed that there is a lot of demand for 6 kilo for
girl's beauty salons. So Amanuel took a loan from his parents and his friends and decided to
open a konjit beauty salon of around 6 kilo.

Our competitive edge lies in our skilled stylists and makeup artists, personalized service, and
commitment to staying updated with the latest women's hair and makeup styles. We
differentiate ourselves in the market by focusing exclusively on female clientele and offering
them specialized services. Our marketing strategy includes leveraging social media and local
advertising to attract and retain customers.

Operationally, we will ensure efficient payment collection, proper inventory management, and
the creation of a comfortable salon environment that reflects our brand identity. Staffing will
involve hiring experienced stylists and makeup artists who share our dedication to customer
service and providing regular training to stay abreast of industry trends.

Financially, we have outlined detailed projections covering startup costs, revenue forecasts, and
expense breakdowns. We have also identified critical risks such as economic downturns,
competition, staff turnover, and regulatory challenges, and developed contingency plans to
mitigate these risks. In the event of unforeseen circumstances, our exit strategy involves selling
the business as a going concern or liquidating assets to minimize losses for stakeholders. Konjit
Beauty Salon is committed to becoming the leading choice for female hair styling and makeup
in the 6-kilo campus area, offering exceptional service and creating a positive impact on the
community.

2
1.1 Mission:

At the konjit beauty salon, our mission is simple yet profound: to provide high-quality hairstyles
and makeup services that are tailored specifically for the discerning women from children to
the elderly found in Addis Ababa. We understand the unique needs and preferences of our
clientele, and we are committed to delivering exceptional beauty experiences that exceed their
expectations.

In pursuit of our mission, we prioritize convenience, ensuring that our services are readily
accessible to our busy clientele. Whether it's quick hair care during a lunch break or a relaxing
beauty session after a long day at work, we strive to accommodate our customers' schedules
with flexible appointment options and efficient service delivery.

Professionalism is at the core of everything we do at konjit Beauty Salon. From our skilled
stylists to our customer service team, every member of our staff is dedicated to upholding the
highest standards of professionalism at all times. We take pride in our craft and are committed
to providing our clients with top-notch stylist services that leave them looking and feeling their
best.

Atmosphere matters, and we believe in creating a welcoming environment where our clients
can relax and unwind while receiving our services. Our salon is designed to be a sanctuary away
from the hustle and bustle of daily life, with comfortable seating, soothing music, and a warm
ambiance that puts our clients at ease from the moment they walk through our doors.

3
In line with our mission, we adhere to the following guiding principles:

 Prioritizing customer satisfaction above all else.

 Maintaining a clean and hygienic salon environment.
 Staying updated with the latest grooming trends and techniques.
 Fostering a culture of professionalism and continuous improvement among our staff.

At Konjit Beauty Salon, our mission is not just a statement—it's a commitment to excellence in
women's hairstyle and makeup services for the female community of Addis Ababa.

1.2 Vision:

At Konjit Hair Salon, our vision is crystal clear: we aim to be the premier destination for all
women's hair styling needs in the 6-kilo campus area of Addis Ababa. We are dedicated to
setting the standard for service excellence, renowned for our talented stylists who exhibit an
unmatched passion for their artistry. Our steadfast dedication to customer satisfaction forms
the foundation of our identity, ensuring that each client who enters our salon departs not only
with impeccably styled hair but also with a sense of being valued and cherished.

1.2.1. Key Elements of Our Vision:

1. Exceptional Service: We are committed to surpassing expectations at every touchpoint,
providing a level of service that transcends mere contentment. From the moment our clients
step into our salon to the moment they leave, we aim to deliver an unparalleled hair styling
experience characterized by warmth, professionalism, and meticulous attention to detail.

2. Skilled Stylists: Our team of stylists consists of some of the most proficient and seasoned
professionals in the industry. Armed with state-of-the-art techniques and an unwavering love
for their craft, they are devoted to achieving results that not only meet but exceed our clients'
visions.

3. Dedication to Customer Satisfaction: At konjit Hair Salon, customer satisfaction is not

merely a target—it's an essential commitment. We recognize that our prosperity hinges on the

4
joy and loyalty of our clients, which is why we go above and beyond to ensure that every
interaction, service, and experience is nothing short of extraordinary.

1.2.3. How We'll Achieve Our Vision:

 Continuous Improvement: We uphold a culture of perpetual enhancement, continuously
exploring fresh avenues to enrich our services, hone our skills, and elevate the overall
salon experience for our clients.
 Community Engagement: Fostering strong connections within the 6-kilo campus area
community is pivotal to our vision. Through active involvement, participation in local
events, and meaningful contributions, we endeavor to evolve into not just a salon but a
cherished member of the community we cater to.
 Investment in Training and Development: We acknowledge that our stylists are the
lifeblood of our salon. Therefore, we are dedicated to investing in their ongoing training
and development, equipping them with the tools and knowledge necessary to stay at
the forefront of trends and deliver consistently exceptional outcomes.

1.3 Objectives:
1. Establishing Profitable and Sustainable Business: Our primary objective is to establish a
profitable and sustainable business within the first year of operation. We aim to achieve this by
carefully managing our expenses, maximizing revenue streams, and continuously monitoring
our financial performance. By implementing efficient operational processes and strategic
marketing initiatives, we will strive to achieve profitability while ensuring the long-term
sustainability of konjit Hair Salon.

2. Building a Loyal Customer Base: Another key objective is to build a loyal customer base by
providing exceptional hair styling services. We understand that customer satisfaction is
paramount to the success of our business, and therefore, we are committed to delivering top-
quality services that meet and exceed the expectations of our clients. By focusing on
personalized care, attention to detail, and a customer-centric approach, we aim to earn the
trust and loyalty of our clientele, establishing long-lasting relationships that drive repeat
business and positive word-of-mouth referrals.

3. Creating a Positive and Inviting Atmosphere: Additionally, we aim to create a positive and
inviting atmosphere that fosters relaxation and rejuvenation for our clients. We recognize the
importance of ambiance in enhancing the overall hair styling experience, and therefore, we will
pay meticulous attention to the salon's interior design, decor, and amenities. From soothing
music and comfortable seating to complimentary beverages and attentive staff, every aspect of
our salon will be carefully curated to ensure that our clients feel welcomed, comfortable, and

5
pampered during their visit. By prioritizing their comfort and well-being, we aim to create a
tranquil oasis where they can unwind, de-stress, and leave feeling refreshed and revitalized.

1.4 core Values:

1.4.1. Professionalism:

At konjit Hair Salon, we hold professionalism as a cornerstone of our service philosophy. Our
commitment is unwavering when it comes to delivering top-notch service to every customer
who walks through our doors. Our stylists, trained in the latest grooming techniques, strive to
provide an experience that goes beyond mere hair care. We prioritize a professional
atmosphere where clients can trust in our expertise and leave feeling confident in their
appearance.

1.4.2.Customer Satisfaction:

Customer satisfaction is at the heart of everything we do at konjit Hair Salon. We understand

that each client is unique, with specific needs and preferences. Our dedicated team takes the
time to listen, ensuring that every haircut, shave, or grooming service is tailored to meet and
exceed our clients' expectations. Building lasting relationships and providing an exceptional
experience is our commitment, to fostering a sense of trust and loyalty among our valued
clientele.

1.4.3. Hygiene and Cleanliness:

Maintaining a clean and sanitary environment is non-negotiable at konjit Hair Salon. We
recognize the importance of hygiene not only for the well-being of our clients but also for
creating a comfortable and welcoming space. Rigorous cleanliness standards are upheld
throughout our salon, from sanitized tools to regularly cleaned workstations. Our clients can
relax and enjoy their grooming experience knowing that their health and safety are our utmost
priorities.

1.4.4. Innovation:

6
 In the dynamic world of grooming, innovation is key to staying ahead, and at konjit Hair Salon,
we embrace it wholeheartedly. Our commitment to innovation extends beyond just trends; we
strive to stay at the forefront of the latest grooming techniques and technologies. By
continuously updating our skills and integrating innovative approaches, we ensure that our
clients receive not only timeless grooming but also services that reflect the cutting edge of the
industry.

1.5 Keys to success

The key to success for a woman's hair salon lies in providing exceptional customer service,
personalized care, and high-quality hair styling services. Building a loyal customer base through
positive word-of-mouth referrals and repeat business is essential. Creating a welcoming and
inviting atmosphere that promotes relaxation and rejuvenation is crucial in ensuring client

satisfaction. Additionally, staying up-to-date with the latest trends in hair styling, investing in
continuous training for staff, and using high-quality products are important factors for success.
Developing strong relationships with clients, understanding their needs and preferences, and
consistently exceeding their expectations will help establish a reputable and trusted brand in the
industry. Effective marketing strategies, social media presence, and community engagement can
also play a significant role in attracting new clients and expanding the salon's reach.

2. Product/service description
Konjit Beauty Salon is poised to make a mark in the vibrant 6-kilo campus area of Addis
Ababa, strategically positioning itself to cater to the hairstyling needs of female students and
workers in the vicinity. Situated in a prime location, our salon aims to become the ultimate
destination for individuals seeking top-notch hair styling services tailored specifically for
women.

At konjit Beauty Salon, we take pride in offering a wide array of hairstyling services to meet the
diverse needs of our clientele. From trendy haircuts and vibrant hair colors to elegant updos,
luxurious hair treatments, and professional styling, our skilled and experienced stylists are
dedicated to delivering exceptional results with every appointment.

Our salon transcends beyond just a hairstyling hub; it's a haven where clients can relax and
indulge in a pampering experience customized to their preferences. Focused on creating a warm
and inviting ambiance, konjit beauty Salon strives to provide a sanctuary where clients can
escape the stresses of daily life and emerge feeling rejuvenated and renewed.

7
With a team of passionate professionals who are dedicated to their craft, konjit beauty Salon is
committed to surpassing client expectations and setting new benchmarks for excellence in female
hairstyling. Our stylists stay abreast of the latest trends and techniques in the industry to ensure
that our clients always leave looking and feeling their absolute best.

Whether you're looking for a subtle change or a dramatic makeover, konjit beauty Salon is
devoted to delivering top-tier hairstyling services that empower our clients to exude confidence
and beauty, both inside and out. Discover the difference at Konjit beauty Salon, where
hairstyling is not just a service but a personalized journey tailored to your unique needs and
preferences.

3. Swot analysis

3.1.Strengths:
One of the key strengths of the female hair salon business idea is the growing demand for
professional hairstyling services among women. With an increasing focus on personal grooming
and self-care, women are willing to invest in high-quality hair treatments and styling services.
By catering specifically to the needs of female clients, the salon can create a niche market for
itself and build a loyal customer base.

Another strength of the business idea is the availability of skilled and experienced hairstylists
who can deliver exceptional results. Hiring talented professionals with expertise in cutting-edge
hairstyling techniques can set the salon apart from competitors and attract clients seeking top-
notch services. Additionally, offering a wide range of hairstyling services, including haircuts,
coloring, treatments, and styling, can appeal to clients looking for comprehensive solutions to
their haircare needs.

3.2.Weaknesses:
One potential weakness of the female hair salon business idea is the high level of competition
in the beauty industry. With numerous salons and hairstylists vying for clients' attention, it can
be challenging to differentiate the salon and attract new customers. Developing a unique brand
identity, offering innovative services, and providing exceptional customer service can help
overcome this weakness and establish a strong presence in the market.

8
Another weakness of the business idea is the initial investment required to set up and equip the
salon. From leasing a suitable location to purchasing salon furniture, equipment, and products,
starting a hair salon can be a capital-intensive venture. Entrepreneurs need to carefully budget
and plan their finances to ensure they have the resources needed to launch and sustain the
business.

3.3.Opportunities:

The female hair salon business idea presents several opportunities for growth and expansion.
With a focus on providing personalized and high-quality hairstyling services, the salon can
attract a loyal clientele and benefit from positive word-of-mouth referrals. Building strong
relationships with clients and offering promotions or loyalty programs can help increase
customer retention and generate repeat business.

Additionally, leveraging digital marketing strategies, such as social media advertising and online
booking platforms, can help reach a broader audience and attract new customers. Establishing
an online presence through a professional website and engaging with clients on social media
platforms can enhance brand visibility and attract tech-savvy consumers seeking convenient
and accessible hairstyling services.

3.4.Threats:
Like any business venture, the female hair salon business idea faces certain threats that may
impact its success. One significant threat is economic downturns or fluctuations in consumer
spending patterns, which can affect discretionary spending on beauty services. During periods
of economic uncertainty, consumers may cut back on non-essential expenses, including salon
visits, leading to a decline in revenue for the business.

Another threat to the salon is changing trends in the beauty industry and evolving consumer
preferences. To stay competitive and relevant, the salon must stay abreast of emerging trends
in hairstyling, beauty products, and customer preferences. Adapting to changing market
dynamics, and updating services to meet clients.

Business Idea: Creating Female Hair Salons

9
4. Marketing Strategy:
The marketing strategy for the female hair salons will focus on targeting the specific needs and
preferences of female clients. This will involve conducting market research to understand the

latest trends in hairstyling, hair care products, and customer preferences. The salons will
position themselves as premium establishments offering personalized and high-quality services
tailored to meet the individual needs of each client.

To attract and retain customers, the salons will leverage digital marketing channels such as
social media platforms, email marketing, and online advertising. Engaging content, including
hairstyling tips, before-and-after transformations, and client testimonials, will be shared to
showcase the salon's expertise and build brand awareness. Additionally, partnerships with
beauty influencers and collaborations with local fashion events or women's organizations can
help increase visibility and reach a broader audience.

4.1.Pricing Strategy:
The pricing strategy for the female hair salons will be based on a tiered pricing model that
reflects the complexity and time required for different hairstyling services. Basic services such
as haircuts and blowouts will be priced competitively to attract new customers, while premium
services like coloring, treatments, and special occasion styling will be priced higher to reflect
the skill and expertise of the stylists.

To incentivize repeat business and encourage loyalty, the salons will offer promotions such as
discounted packages, referral rewards, and loyalty programs. Special discounts for first-time
clients and seasonal promotions for holidays or special occasions can also help attract new
customers and generate buzz around the salon.

4.2.Product Strategy:
The product strategy for the female hair salons will focus on offering a wide range of high-
quality haircare products that cater to different hair types and concerns. The salons will partner
with reputable brands known for their effective and innovative haircare solutions to provide
clients with access to professional-grade products that deliver exceptional results.

10
In addition to retailing haircare products, the salons will offer customized hair treatments and
services using premium products tailored to meet each client's unique needs. This personalized
approach to product selection and service delivery will enhance the overall client experience
and differentiate the salons from competitors.

4.3. Promotion Strategy:

The promotion strategy for the female hair salons will involve a mix of online and offline
marketing tactics to build brand awareness, drive customer engagement, and increase foot
traffic. In addition to digital marketing efforts, traditional advertising channels such as print ads,
local partnerships, and community events will be utilized to reach target audiences and
promote the salon's services.

To generate buzz and excitement around the launch of the salons, grand opening events, VIP
nights, and exclusive offers will be organized to attract media attention and create a sense of
anticipation among potential clients. Collaborations with local influencers, beauty bloggers, and
fashion magazines can also help amplify the salons' visibility and establish them as go-to
destinations for premium hairstyling services.

4.4. Distribution Strategy:

The distribution strategy for the female hair salons will focus on creating a seamless and
convenient booking experience for clients through online booking platforms, mobile apps, and
phone reservations. Clients will have the flexibility to schedule appointments at their
convenience, view stylist availability, and select services based on their preferences.

Additionally, the salons will implement efficient inventory management systems to ensure a
steady supply of haircare products and accessories. Retail displays showcasing featured
products, promotions, and seasonal offerings will be strategically placed within the salons to
encourage impulse purchases and drive retail sales.

In conclusion, by implementing a comprehensive marketing strategy that targets female clients'

specific needs, a competitive pricing strategy that balances affordability with premium services,
a product strategy that emphasizes high-quality haircare solutions, a promotion strategy that

11
leverages both online and offline channels, and a distribution strategy that prioritizes
convenience and accessibility, the female hair salons can establish themselves as leading
destinations for top-notch hairstyling services tailored to meet the diverse needs of modern
women.

4.5. Operational plan

Operational plan start-up capital estimation of start-up capital amount
Investment……………………………………………………………1000000
Land…………………………………………………………………..300kare
rent……………………………………………………………………10000 Building
g+1………………………………………………………….20000 Office
equipment…………………………………………………….172900 Total
investment……………………………………………………..202900 working
capital………………………………………………………70000 Months of staff cost…………………………………………………
20000 Months of operational
costs………………………………………..1000 Total working
capital………………………………………………..21000 total startup
capital…………………………………………………223900

List fixed assets needed and their cost.

5. Exit Strategy:

12
In the event of unforeseen circumstances or changes in market conditions, Konjit Beauty Salon
has devised an exit strategy to minimize losses for stakeholders. This strategy may involve two
primary options: selling the business as a going concern or liquidating assets. Selling the
business as a going concern would involve finding a suitable buyer who is willing to acquire the
salon along with its assets and continue its operations. This option aims to preserve the value of
the business and ensure continuity for employees and customers.

Alternatively, if selling the business as a going concern is not feasible, the salon may opt for
liquidating assets. This involves selling off the salon's assets, such as equipment, furniture, and
inventory, to convert them into cash. The proceeds from the asset liquidation would then be
distributed among stakeholders to minimize financial losses.

By having a well-defined exit strategy in place, Konjit Beauty Salon aims to safeguard the
interests of its stakeholders and mitigate potential risks associated with unforeseen
circumstances or changes in market conditions.

6. Balance sheet

13
asset Value in birr Liability & Equity Value in birr
Fixed asset Equity

Own Saving 350,000

Partner’s 400,000
Total Equity 750,000
Building 350,000 Long term liabilities
Equipment’s 172,900 loans 250,000
Total fixed asset 422,900 Total long-term 250,000
liabilities
Current asset Current liabilities
Cash 300,000 Tax payables 50,000
Accounts receivable 277,100 Account payable 50,000
Total current asset 577,100 Total Current Liabilities 100,000
Total asset 1,100,000 Total liabilities and 1,100,000
equity

7. Appendix

14
In this section, we have attached a short resume about the owner of the company since our company is
a proprietary company and owned by a single person it might be helpful to include this as additional
information.

Short resume about the owner

Name Amanuel Teferi

Address 6 kilo, Addis Ababa

Phone 0940140965

Email amanuel@gmail.com

Professional Experience:

Hair stylist[20013-2016]

Educational background:
Undergraduate in Addis Ababa University

Skills:
- Strong leadership and communication skills

- Ability to work effectively in a fast-paced environment

- Proven track record of driving growth and profitability

- Strong understanding of marketing principles and strategies

15