RAnGeLeigh Beauty Wellness

A Project Feasibility Study

Group 7

PROJECT SUMMARY

Name of the Business

Thinking for a unique and catchy name that would attract customers, the owners
decided to name their business from the combination of their names. From Regine Delos Santos,
Angelli Lamique, Angel Pates and Leigh Lester Pilapil, they’d created “RAnGeleigh”. The project is
to be established for the community of Pioneer Avenue, General Santos City and the firm workers
of RanGeLeigh Beauty Wellness. It will be a partnership having a one- stop salon business. It
focuses on customer-centric service where the customer's needs are the priority.

Spa, body massage, skin treatment, special events’ preparation, and hair salon alone
may serve as the main income earning activities of the business. Comprehending the market in its
strategic area, the business will surely profit enormously from this endeavor.

In addition, the business will be selling hair care and beauty products which are
forecasted to account for 30% of main income earning activities of the business. It should be done
by acquiring and setting beauty products from local suppliers at a certain profit mark-up. These
products shall supplement the product lines of the firm.

Location
The RAngeLeigh Beauty Wellness is located at the 3rd floor of Philippine American
Life Insurance Company at Pioneer Avenue in General Santos City.

Descriptive Definition of the project

RAnGeLeiGh Beauty Wellness is to be housed in a rented area in the locale of the
project. The space area for the said business is which composes of four rooms in different
dimensions. Outside the space room we can find the comfort room and fire exit in terms of any
inconvenience, emergencies and other. It’s also accessible for the customers to reach the third floor,
the building has an elevator so we don’t need to climb up stairs unless of any difficulties with it.

It offers a range of services, including hair styling, cutting and coloring, skin
treatments, manicures, pedicures and special events' preparation, such as prom or wedding hair
styling or make-up. To supplement these procedures, salon offers the products used during these
services such as shampoos, conditioners and other hair care products, nail products, and other
miscellaneous products. Although often more expensive than similar products in retail stores, salon
products are higher quality, and can be purchased with the advice of a trained professionals.

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

Within the store, skilled beauticians, cashiering, senior and junior hair dresser, physical
therapist and marketing makers shall be provided and adequately equipped.

Project’s Objectives

RAnGeLeigh beauty wellness is a one-stop salon that is to be established as a livelihood

business outfit that is projected for the entire family to have their hair and body need be satisfied in
just one visit. This project has these following objectives:

To maximize customer’s choice.

To satisfy the need of its customers.

Insights in giving the costumer the service they are longing and what they expected
for.

Its decisive objective is to help improve life quality of an individual.

Project’s Timetable

Project’s timetable
Numbers of days
Activities required
Organizing 6
Pre-feasibility study 4
Project Feasibility 7
Evaluation and Analysis 5
Financing Sources 7
Building Clearing, arranging and furnishing 21
Project Registration 5
Promotion 7
Dry Run 3
Start of normal operation/project implementation 3
Project Formation Period 68

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

Total Project Costs

Total Project Costs

Building Improvements Php 500000

Supplies and Additional Equipment 1,800,000
Working Capital 1,000,000
Total Php 3,300,000

PROJECT’S FEASIBILIY CRIERIA

A. Market Feasibility

Our project feasibility study is located at Pioneer General Santos City near at RCBC.
Our target market is all ladies, gentlemen, young or old that has been there in the locale, specifically
the students of Ramon Magsaysay Memorial College (RMMC), Golden State College (GSC),
religious workers of Our Lady of Peace and Good Voyage and other individuals that have gone in
the park , since our project location is near in the plaza, so we have expected that there are many
groups of people have gone there. The jeepney, tricycle drivers and the passengers that are passing
in parked of the locale. The workers in the different stalls near in the buildings where we are located
and also the workers that have their other business near in our place. The professors, teachers,
instructors that are working in RMMC and Golden State College are one of our target market.

B. Technical Feasibility

In the 3rd floor of Sun Life Building is where the office and store of Rangeleigh
Beauty Wellness situated. The store space shall be used for services like Hair Dressing, Foot Spa,
Pedicure, Manicure, and Massage. There will be 12 chairs provided for the hair dressing area, 9 beds
for the massage area, 4 chairs for the pedicure/ manicure area as well as the foot spa area, 2
shampoo bowls for the shampoo area, and 1 counter where the products for sale are also be found.

A storage room will also be constructed within the area that will contain the supplies
to be sold and all the supplies to be used by the entity. The storage room will be under the care of
the owners.

The Salon Office shall be manned by the owners.

The whole area occupied by the Store and the Salon Office has the total area of 127
sq. m.

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

C. Financial Feasibility

The business started from the project cost of Php 3,300,000 projecting an estimated
daily income of Php16, 000 during peak seasons and Php10, 000 during normal operations if the
cost of sales is 30% of total sales and operating expenses are most likely 50% of the total sales. With
the same sales trend continuing and with the expanding services and product lines, the entity is
expected to earn Php6,252,000 in the first year and a projected increase rate of 50% in total revenue
per year, so in five years’ time, the entity will have a projected sales of Php31,650,750 with the net
income of Php18,735,203.60 as based on conservative projections.

Cost of sales and operating expenses are expected to be continually controlled at the
same rate. The operating expenses will consist of salaries, electric and water bills, depreciation for
equipment, furniture and fixtures, rent, interest and other miscellaneous expense such as adverting
expense and interest payable.

Cost of sales would grow proportionately with sales growth. Operating expenses are
expected to be continually controlled at the same rate.

When the amount of net income warrants the feasibility of granting dividends as a
form of returns of investment to partners, they may decide to grant interests on capital as income to
them.

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

D. Management Feasibility

RAngeLeigh Beauty Wellness is a partnership of the four individuals namely Regine Delos
Santos, Angel Pates, AngelliLamique and Leigh Lester Pilapil who invest funds by contributing
money from themselves and lending from a bank to build this kind of business project.

This Project aims to earn and increase revenues to have an increasing profit by rendering
different services and selling their own made beauty product. From the chart below represents the
organizational structure of the RAngeLeigh Beauty Wellness.

ORGANIZATIONAL STRUCTURE

Manager

Marketing-In Service-In Finance-In

Charge Charge
Charge

Cashier

Senior Spa
Hairdresser Consultant

Junior Spa
Hairdresser Attendant

Spa
Therapist

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

These are the following persons in charge in major positions in running the said business:

 Manager - Angel Pates

 Marketing-In Charge - Regine Delos Santos
 Services-In Charge – Angelli Lamique
 Finance-In Charge - Leigh Lester Pilapil

a. Manager

Manager is the head of total operations in the business. The one leads the business in
terms of planning, organizing, staffing, controlling and coordination among its members. Planning
involves determining the missions and objectives of an organization, choosing future courses of
action from the available alternatives and the development of effective steps to achieve those
objectives. Organizing by establishing an internal structure, assigning the roles to the people in an
organization which best suit them and in doing this to make sure, that all the tasks that are required
in the fulfillment of the objectives are assigned to persons who are most suited for that task. Staffing
involves identifying the required work force to carry out the tasks envisaged, inventorying &
assigning the most suited tasks to the available human resources and recruiting for additional work
force required, in case of a deficit. Controlling, as a function of a manager, is a systematic effort to
compare performance to predetermined standards, plans and objectives, to ascertain whether such
performance is in line with these standards or in case of deviations, take such steps to correct them.
The function of coordination is to synchronize and harmonize the activities of all departmental units
of an organization towards the accomplishment of organizational objectives.

b. Marketing- In Charge

Marketing –In Charge is responsible for the planning and implementation of

marketing strategies to promote the company’s services to the target market and maximize client
acquisition. Maintaining an organization’s competitive edge means understanding and implementing
an effective marketing logistics strategy regarding product, price, place and promotion.

c. Services- In Charge
Service- in Charge is the one who leads its members in rendering services that
requested by the customers. Supervises and checking the performance of the head dressers,
masseurs, dermatologist, manicurists and pedicurists. Guide its members by giving some techniques
or strategies that will result to a more efficient and effective services or performance.

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

 Senior Hairdresser
As a senior hairdresser, you would talk to clients about how they want their hair
done, and give them advice and suggest style ideas. Senior hairdresser is hired from outside of the
organization that has the appropriate competence and skills needed for the job.

Work would include:

 shampooing and conditioning
 cutting and styling
 coloring, perming or straightening
 advising on minor hair and scalp problems
 making appointments

 Junior Hairdresser

Junior Hairdresser is hired from outside of the organization that has the appropriate
competence and skills needed for the job.

Work would include:

 greeting customers
 shampooing hair
 simple cutting
 making sure towels and supplies are ready for use
 keeping the salon clean and tidy

 Spa Consultant

A spa consultant identifies problems, offers solutions and helps the staff implement
them. He may work with architects and designers in the creation and decor of a new spa. He may
help the owner come up with a menu of services that potential clients will find appealing. Some spas
want him to ensure that proper equipment is on hand for each spa process and work with the staff
to implement training plans and the general policies. Spa Consultant is hired from outside of the
organization that has the appropriate competence and skills needed for the job.

 Spa Attendant

Spa attendants play a primary role in selling products and services and ensuring guest
satisfaction. Basic services include answering any questions, responding to requests and helping
customers get acclimated to the spa. When a guest first arrives, the attendant usually introduces her
to the services available, shows her around the facilities and tries to sell a treatment package. Spas

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

also routinely sell products and lotions. Some attendants are paid commissions on the amount of
products and packages they sell. Spa attendant is hired from outside of the organization that has the
appropriate competence and skills needed for the job.

 Spa therapist

Performs massage therapy techniques to control pain, reduce stress, and promote
relaxation in a day spa facility. Obtains the basic medical history for a client, assesses any problems
or conditions, and suggests appropriate massage techniques based on current health of client. Spa
therapist is hired from outside of the organization that has the appropriate competence and skills
needed for the job.

 Manicurists and Pedicurist

A manicurist applies cosmetic beauty treatment for
the fingernails and hands performed at home or in a nail salon. A manicure consists of filing,
shaping of the free edge, treatments, massage of the hand and the application of polish. A pedicurist
does cosmetic care of the feet and toenails, cosmetic treatment of the feet and toenails. Manicurists
and Pedicurist is hired from outside of the organization that has the appropriate competence and
skills needed for the job.

d. Finance-In Charge

Finance-In Charge is responsible for the use of credit or the extension of existing
credit. Make financial reports regarding the sales, revenues, cash payments, cash receipts and
disbursements.

 Cashier

The Cashier receives payment by cash, check, credit cards, vouchers or automatic
debits. Issue receipts, refunds, credits, or change due to customers. Count money in cash drawers at
the beginning of the shifts to ensure that amounts are correct and that there is adequate change.
Greet customers entering establishments. Maintain clean and orderly checkout areas. Establish or
identify prices of goods, services or admission and tabulate bills using calculators, cash registers or
optical price scanners. Cashier is hired from outside of the organization that has the appropriate
competence and skills needed for the job.

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 RAnGeLeigh Beauty Wellness
A Project Feasibility Study
Group 7

E. Socio-economic Feasibility

The business has a goal to be profitable and also to help the community in such ways. The
study attempts to determine economic impacts on society or GNP. The study tries to determine the
contribution of the business to the improvement of living standards, community development and
the impact on the following: employment and income, taxes, supply of commodities and demand for
materials.

The RAnGeLeigh Beauty Wellness will definitely have good role in the community. This will
create employment and income especially to those residents of the city. The business will have 22
employees where the entity provides a steady source of income that eventually improve their
standards of living that will affect the growth of the economy. The project provides significant
economic and social contribution to Filipino families and to the country as a whole.

RAnGeLeigh Beauty Wellness is to be a large growing and unique industry in the

Philippines. In connection to this, the entity will obviously help the economy by being a good tax
payer. These taxes are the revenues that we will earn. The maximum rate that a city municipality may
impose is 12%, the owners has the option to pay the tax in four equal installments on or before the
last day of each calendar quarter.

The production of the laundry shop favorably affects the supply of the industry in different
ways. The pricing of our service significantly depends on the quantity that the business will acquire.
Special prices of the competitors will perhaps influence the pricing of the business-RAnGeLeigh.
There is lots of beauty wellness within the city that will result in cheaper prices. And the existence of
the entity will eradicate local domination of only one Beauty Wellness in the vicinity.

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