Content

Title

1. Executive summery
1.1 Our Mission

1.2 Our vision

1.3 Location

1.4 Marketing

1.5 Team

1.6 Promotion

1.7 Environment

1.8 Convenience

1.9 Reputation

1.11 Return

1.10 Investment

2. Problem

3. Solution

1
4. Business model
4.1 The investor

4.2 Gathering Information about supplier

4.2.1Supplier Competence
4.2.2 Supplier analysis
4.2.3Financial
4.2.4Contract with supplier

4.2.5 Aspects which should be evaluated before contracting

4.3 Registering the Business

4.4 Choose location and set up

4.5 Target customer:

4.5.1Demand

4.6 Publicizing the Business

4.7 The Expenses and Cash flow

4.8 Future Goal

5. Secrets

6. Marketing & Sales

6.1 Market research

6.1.1 Determine the problem

6.1.2 Identify the target customers

2
 6.1.3Identify customer requirements

6.1.4 Create service list

6.1.5 Create database system for customers

6.1.6 Making unique techniques:

6.1.7 Decision making:

6.2 Marketing Strategy

6.2.1 Advertising

6.2.2 Personal Communication

6.2.3 Sales promotion

6.2.4 Online marketing:

6.2.5 Corporate design

6.3 SWOT Analysis

6.3.1 Strengths
6.3.2 Weaknesses
6.3.3Opportunities
6.3.4Threats
6.4 Marketing Mix

6.4.1 Customer Service (Product):

6.4.2 Price

6.4.3 Promotion
6.4.4Place
6.5 Value proposition

6.6 Competitors

3
 7. Management Plan

7.1 Management team

7.1.1Owner
7.1.2 Supervisor/Receptionist
7.1.3 Beauty & fairness expert
7.1.4 Barber

7.2 Management style

8. Operational Plan
8.1 Operational layout
8.2 Products & Services
8.2.2. Products
8.2.1. Services

9. Financial Analysis
9.1 Startup cost & Working capital

Table: 9.2 Total working capital

Table: 9.1 Total investment & source

9.2Cash Flow Forecast

Table: 9.4 Years 2, 3, 4, and 5 Cash Flow:

Table: 9.3 First Year, Monthly Cash Flow

10. Break-Even-Analysis
Table: 10.1Break Even Chart

11. Current Status

4
 Executive Summary |1
Bubbles gent’s parlor & Men’s wear is a full-service beauty salon dedicated to
consistently providing high customer satisfaction by rendering excellent service, quality
products, and furnishing an enjoyable atmosphere at an acceptable price/value
relationship. We will also maintain a friendly, fair, and creative work environment,
which respects diversity, ideas, and hard work. We will provide a very unique type of
services which includes normal haircut, fairness & hair treatment, ceremonial men
garments.

1.1 Our Mission

To provide services and products those enhance our client’s physical appearance and
mental relaxation.

1.2 Our vision

To provide the finest gent’s fairness & complete ceremonial garments accessories for
men. We expect our growing reputation to lead to new clients and attract more
beauticians to support our anticipated growth. The keys to success in our business are:

1.3 Location

Providing an easily accessible location for customers. Its location will be at Farmgate.

1.4 Marketing

1. Quality services.

2. Build partnership with event management organizations and fashion houses.

3. Suggestions of qualified fairness expert.

1.5 Team

4 owners, 7 employees

1.6 Promotion
Online & Social media

1.7 Environment

Providing an environment conducive to giving a relaxing and professional service.

5
1.8Convenience

Offering clients a wide range of services in one setting, and extended business hours.

1.9Reputation

The owner and other beauticians have a reputation for providing superior personal
service.

1.10Investment: 30 Lakhs

1.11Return: Within 2.5 year

Problem |2
In our country there is very few gent’s parlour and most of them are incapable of
providing quality services. Ceremonial men garments and fairness related services are
very rare to be found in the same place. From our survey and research we have found
several problems:

1. Poor skilled barber: Most of saloons and gent’s parlour have inexperienced
or poor skilled barber. As a result they cannot provide desired haircut of
customers.
2. Dirty and unhygienic ambience: Dirty or unhygienic environment is a
common sight in the gent’s parlours of our country. As the customers feel
discomfort in this type of ambience.
3. Ceremonial costume & fairness services rare to be found in same
place: It is very rare to find ceremonial costume and fairness services under the
same roof. As a result customers have to move here and there for those
products and services.
4. Keep customers waiting for long time: In most of the gent’s parlours or
saloons often keep customers waiting for very long time. So the customers feel
bored.
5. Use of improper fairness cosmetics: Various types of fairness cosmetics
are used without knowing its effects. As a result customers suffer from several
types skin diseases.

6
 Solution |3
To overcome the above problems we have decided the following solutions:

1. Hire skilled & experienced barber: To provide customer desired

haircut properly qualified barber can be hired.

2. Neat & clean ambience: Our gent’s parlour will have a neat and clean
environment for customer relaxation.

3. Ceremonial men’s wear & Fairness services at a same place:

Fairness services like haircut, facial, etc and ceremonial garments with other
accessories for men will provided under the same roof.

4. Hire highly qualified fairness expert: To provide reliable suggestions

on fairness, hair treatment and body massage highly qualified experts will be
hired.

5. Earlier appointment with customers: To reduce waiting time for

customers’ earlier appointment will be done. Customers will be
communicated by text message or social media.

7
 Business Model |4
4.1 Overview of business

We are going to start a Gent’s parlour which contains some certain type of men’s wear
with beauty fairness services named “Mongol’s gent’s parlour & Men’s wear”. We
consider the immense demand of fairness, beauty and appearance related services by
the different classes of people as it is very rare to find beauty fairness services along
with some specific type of men garments at the location of Farmgate.

4.1 The investor

The four owners of this business will invest 52 percent and we hope that XYZ bank will
invest 48 percent to our business.

4.2 Gathering Information about supplier

In this business, we need to have wide knowledge of supplier hair and skin cosmetics
along with electronic equipment. Measuring the performance of suppliers is vital to
ensuring a well-functioning supply chain. We will seek suppliers who support our
strategic goals and objectives while continually looking for ways to manage our costs.
We will evaluate suppliers with regard to best value with a particular emphasis on
quality, total cost, delivery, time requirement, location and management expertise to
meet mongol’s gent’s parlour & men’s wear requirements.

Suppliers will be evaluated on their ability to meet the following criteria:

4.2.1Supplier Competence
Compliance to specifications
 Meets specification requirements
 Meets standards
Customer service
 Policy and practice

8
 Backup and advice
 Expert suggestions
Quality system for deliverables
 Earlier appointment
 Scheduled deliveries
 Computerized Documented system
Capability
 Fairness related services
 Beauty solutions
 Ceremonial costume Provider
Strategy
 Strategic Location
 Strategic Networking
 Advanced advertisement

4.2.2 Supplier analysis

Financial viability
 Satisfies key financial ratios
 Full financial disclosure from supplier will be required.
Risk and insurance
 Adequate insurance
 Allocate and acceptance of risk
Legal review
 Complies to the terms and conditions
Legal proceedings
 Legal proceedings related to contractual issues - past or present

9
4.2.3Financial
Total cost of ownership/best value
 Ability to propose an innovative financial approach (gain-sharing, etc.)
 Price breaks and quantity discounts
 Satisfies best value analysis
Financial review
 Tax
 Accounting
 Payment terms and methods
 Insurance
 Net present value analysis

4.2.4Contract with supplier:

After supplier evaluation we will contract with suppliers who can provide high
standards of product and service levels.

4.2.5 Aspects which should be evaluated before contracting:

 Capacity (Does they have the capacity to deliver the order)

 Competency (Is the supplier, its people or its process competent)
 Consistency (Does they produce a consistent output)
 Control of process (Can they control its process and offer flexibility)
 Commitment to Quality (Does they effectively monitor and manage quality)
 Cash (Has the supplier got a strong enough financial base)
 Cost (Is the product or service offered at a competitive price)
 Culture (Are the supplier and buyer cultures compatible)
 Clean (is the organization ethical, funded legitimately, doesn't engage Child labor,
etc.)
 Communication efficiency (Does the organization have support technology of
information integration) to support collaboration and co-ordination in the supply
chain.

10
4.3 Registering the Business:

At first we will do on-line verification of the uniqueness of the proposed company

name. Then we will pay adhesive stamp fees at a designated bank.

The following documents to be submitted to the registrar:

(a) Name clearance certificate;

(b) Articles of business;

(C) Forms I, VI, IX, X, and XII,

(d) Proof of payment (i.e. receipt from the designated bank) for Treasury Stamps;

(e) Encashment certificate (for nonresident subscribers); and

(f) Tax identification number (for resident subscribers).

We will register with the VAT and tax authority. Then we may obtain a trade license
from the City Corporation.

4.4 Choose location and set up:

Choosing a business location is the most important decision a business owner or

startup will make, so it requires precise planning and research. It involves looking at
demographics, assessing supply chain, scoping the competition, staying on budget and
much more. Considering all these criteria and analyzing the location layout we decided
that our parlour should beat Farmgate which is a high profile area, with easy access
from all parts of the Dhaka city so that we can attract maximum number of customer.

4.5 Target customer:

In Farmgate area, people of different classes are moving around regularly. Also it is a
commercial area. There is also some educational institute. As a result we can capture
customers of different ages.

11
4.5.1Demand:

We anticipate our demand will be 75 percent of total approximate population of

16,500.

4.6 Publicizing the Business

To catch attraction of wide range of customers towards us we have to publicize the

business. We can publicize our business by doing advertisement, creating personal
communication and sales promotion. We have to introduce our self to them in a way
that they will be interested to purchase books from us. After finishing all the formalities
we need to do this.

4.7 The Expenses and Cash flow

We have to keep track of every expense. We have to calculate every single penny of the
cash flow as it will help us to understand whether we have been profited or not.

4.8 Future Goal

Initially we start a gent’s parlour only at one location. But in future we have a plan to
expand the area of business by establishing several numbers of branches of at different
locations of Dhaka city.

Secrets |5
1. First priority for customer desire.
2. Utilization of newest fairness techniques.
3. Unique and fashionable men’s wear.
4. Highest use of technological equipments.

12
 Marketing and sales |6
6.1 Market research

Market research is the function that links the consumer, customer and public to the
marketer through information.Information that is used to identify and define marketing
opportunities and problems; generate, refine and evaluate marketing actions.

As we are going to start the business so we conduct market research on the basis of
present situation, our target customers, source of information and problems we are
going to face just before start the business. We develop a market research model which
first define the problem and at the end provide a solution on the basis of the
information.

The model of our market research is given below:

Determine
the problem

Identify the
Decision
target
Making
customers

Making Identify
Unique customer
techniques requirments

Create
database Create
system for service list
customers

Fig: Market research plan

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6.1.1 Determine the problem
To determine the core problem, we are going to face before starting the business,
we have to focus on the factors need to consider at that moment. In our business,
first thing we have to identify how to allocate, how many individuals to hire, how
many varieties of equipments we need to purchase to fulfill the demand of our
customer.

6.1.2 Identify the target customers

As we have already determined our problem, now we are going to identify the
target customers. As our business focusing on the several classes of people .A
classification of target customer based on the age is given below:

 Young people (age18-32): This age range contains mainly students, those

are conscious about newest fashion and smart look. Also some young corporate
people included in this age range.

 Mid-aged people (age33-50): People of different occupations such as

service holder, corporate, business men with high class requirement are
included under this age range.

 Old people (age51 -70): High corporate individuals, businessman etc

occupational people are included in this age range with requirements of spa,
body massage, skin care etc.

6.1.3Identify customer requirements

As we have a wide range of customers we have to analyze broad varieties of

requirements.

6.1.4 Create service list

To attract a broad range of customers with very different demands we have to

make a service list which will contain very clear information about all the services,

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privileges, discount offer and packages, cosmetic products, garments products etc
with their price.

Men's Services
Shampoo, Cut, Style, Blow-dry 300 tk
Hair and Scalp Treatments 350 tk
Color Blending or Highlights 800 tk above
Moustache and Beard Trim 200tk
Moustache Trim 50tk
Stately Shave (Hot towels, Balm) 100 (30 minutes)
Hair Style and Stately Shave 300tk
Natural Nail Grooming 150tk
Royal Pedicure 200tk
Essential Facial 400tk
Deep Face Tissue Massage 500tk (1 hour)
Laser Hair Removal 500 above
Mexican olive spa, 1500 tk
Regular spa, 1200 tk
Baliness spa. 2000 tk
European facials 350 tk
Body waxing 550 tk
Regular massages 250 tk
Complete Marriage ceremonial package 20000 tk
Ceremonial outfit package 10000 tk

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6.1.5 Create database system for customers

Create a complete website with database system for the customers where all of
them will have a personal account. The website will also contain information

about all the services, products, privileges etc.

6.1.6 Making unique techniques:

To capture customer attention we have to make some unique techniques such
as, We can bring some unique changes in our services, providing the customers
special quality services, earlier appointment and proper time management to get-
rid of waiting time etc. These techniques will imply the difference between ours
and other parlours.

6.1.7 Decision making:

After conducting the market survey, we have found that initially the total
approximate population of our target market area is around 1,50,000. From the
survey determined that 65% of total population is willing to pay for the services
from us. So the amount of customers is going to purchase our services and
products 97,500.

After determining the number of customers desired to have our services and
products and creating the list of them we can focus on the purchasing procedure
as well as how to make customers interested to be our client. The process

16
 discussed above is a continuous process where data can be changed in any time
and the survey will have done again after certain time. Information flow have to
be smooth to modify the list of the services and products. So it is necessary to get
the information from the customers.

6.2 Marketing Strategy

We complete our market research and determined which services we need to provide
and which equipments we have to purchase to fulfill the demand of our customer. But
now another question arises “Why people should come to us for fairness, beauty and
physical appearance related services?” Considering this question we have to follow a
strategy so that customers will come to us for those services, otherwise our business
will fail eventually. So, to attract customers towards us we have to do the marketing.
We have to introduce our self to them in a way that they will interested to pay for the
services from us

Our key marketing strategies will be:

1. Emphasize our name and unique services and environment through advertising.

2. Focus on the convenience of our location.

3. Build community relationships and corporate relationships through unique and

quality service, a friendly caring atmosphere, and delivering world class service.

To do the marketing we can follow some detailed strategies those are discussed
below-

6.2.1 Advertising

 We can hang posters at the main points of Dhaka city.

 We can give add in the weekly or monthly magazines.
 We can give offer as well as add in the social media like Facebook, Twitter.

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6.2.2 Personal Communication:

 Individual will convince while distributing the leaflets in front of the universities
and medical colleges.
 We can send specimen copy of most important books to the individual
professor, assistant professor and lecturer.
 We can collect cell phone number of students and send them SMS about our
book shop and invite them to visit us.

6.2.3 Sales promotion:

 We can give some exclusive offers to attract several types of customers.

 We can provide some percent off price to our regular customers.

6.2.4 Online marketing:

 Open a page in the Facebook and keep updating the recent inclusion in our
business.
 Use online survey to determine the importance of the fairness related services
and men’s wear.
 Create a review system in every medium so that customer feedback can be
received.
 Develop and launch an interactive website-
 Where our customers can create individual accounts
 Can give the rating of our services
 Can write review of our services
 Can provide valuable information about employees and fairness beauty
expert personnel’s.

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 6.2.5 Corporate design:

Our interactive name and logo will attract students to visit out store.

6.3 SWOT Analysis

Men’s parlour is involved in a competitive industry with diverse target markets. With
such diversity in an ever-changing industry, men’s parlour must have an aggressive and
strategic approach to maintaining a competitive edge. The SWOT analysis is a tool for
building these strategies. SWOT stands for strengths, weaknesses, opportunities and
threats. It helps businesses, including men’s parlour to identify the areas in which they
excel while classifying areas that require improvements and adjustments .

Fig: SWOT analysis of Bubbles gent’s parlour

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6.3.1 Strengths
Identifying the strengths of a men’s parlour can, at times, be as easy as looking at the
clientele. A men’s parlour with an abundant clientele list is a sign of successful
marketing, good operations and strong client management. Still, a strong analysis will
identify the reasons that those strengths are strengths. Factors like a well-trained team
and a high traffic location may be the core strengths of the salon.

6.3.2 Weaknesses
Weaknesses can be reflected in the men’s parlour register receipts, but not always. For
instance, lack of proper stylist training and poor customer care can hinder the men’s
parlour income, but still not limit it. Identifying the weaknesses is the first step to
making strategic improvements. It is important to take an unbiased look at the salon
while completing this section. Weaknesses can be as simple as a lack of inventory, or as
challenging as having the wrong location with limited space and parking.
6.3.3Opportunities
While the strengths and weaknesses are internal aspects of the men’s parlour analysis,
the opportunities and threats portion of the SWOT evaluate the external aspects of the
salon. The ever-evolving hair trends and styles can present many opportunities for the
men’s parlour. Opportunities can include introducing new hair styles and styling
methods, introducing new product lines and brands in the salon's inventory and
attracting a new client market.
6.3.4Threats
A man’s parlour threats are things that threaten the livelihood of the business. These
can range from new competition to changes in the industry's laws and regulations.
While many threats cannot be changed, the parlour should identify threats in order to
create strategic adaptations to overcome impending challenges. For instance, the
men’s parlour customer base may be threatened by a new men’s parlour that enters
the area. Although you cannot force the new men’s parlour to move, you can create
new strategies to counteract the competition, retain your customer base and bring in
new customers. These might include introducing new styles, providing new promotions
and specials, and promoting the parlour customer benefits.

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6.4 Marketing Mix

6.4.1 Customer Service (Product): All of our employees will have training in exceptional
customer service. All employees have discretion to remedy any problems encountered
on their own without having to first receive permission from a supervisor. To attract
customer attention we will have to increase the quality of our services. Also we will
introduce some new services with the help of newest technological equipments.

Fig: Marketing mix of bubbles gent’s parlour.

6.4.2 Price

We will have to follow suitable strategies for pricing to maximize the sales and profit
of our business. Also we have to consider some discount offers. Bubbles pricing scheme
will be based on a competitive pricing model with other similar service providers.
6.4.3 Promotion
A targeted advertising campaign will also communicate Bubble's desired messages. To
conduct suitable promotions we have to maintain a very good relationship with the
customers. Also we have to develop our own website to conduct exclusive promotional
activities.

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6.4.4Place
Place is a very vital point in marketing mix. Locating the store in a high density area will
significantly increase visibility.

6.5 Value proposition

1. Our services are for those men who desire to be smart & handsome with the
specific suggestions of our beauty and fairness expert.
2. Unlike from other gent’s parlour our gent’s parlour will provide complete
classy appearance for me.

6.6 Competitors

In order to establish a new business there are always a number competitors.

We also have some competitors against our business.Our main competitors are
the general saloons at Farmgate area and branded Gent’s parlour around the
whole city. As we will provide ceremonial men garments and related
accessories some fashion houses are also our competitors.

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 Management plan |7
7.1 Management team

In this section, the management personnel who will be continuously monitoring the
progression of our business will be discussed.

Owner

Receptionist /Supervisor

Beauty & fairness expert

Barber

7.1.1Owner

‘A’ ‘B’ ‘C’ ‘D’ is the owner of the parlour. The owners have completed B.S.c in IPE
from Ahsanullah University of Science & Technology

7.1.2 Supervisor/Receptionist

‘D’ is the supervisor of the parlour. The supervisor worked as a manager before for
another beauty parlour.

7.1.3 Beauty & fairness expert

There will be a beauty and fairness expert who has a cosmetology diploma from a
reputed institute.

7.1.4 Barber

In this parlour there will be five barbers. Each of them is S.S.C passed and have
experienced of four years.

23
7.2 Management style

Bubbles gent’s parlour & men’s wear will be organized and managed in a creative and
innovative fashion to generate high levels of customer satisfaction. This will also create
a working climate conducive to a high degree of personal development and economic
satisfaction for employees.

The owners of the parlour who will look up that whether everyone is working on their
sector sincerely or not. Owners will also give feasible suggestions when it’s needed.
Suggestion will help for improving the profit of the parlour. To motivate the supervisor,
beauty and fairness expert, barbers the owners will encourage them, will give them
appraisal, and will give them bonus if the amount of profit increases.

The supervisor will pass the information from lower level to the owner or from owner
to lower level. After the owners the supervisor will be head of the business.

The beauty and fairness expert of our parlour has a vital role in this business. He will
provide exclusive and specific suggestions about all the services we will have. He will
convince the customers to purchase our services at a high frequency.

The barbers we will have high skills and vast experienced to provide desired haircut for
the customers. They will also follow the instructions of the beauty and fairness expert.

24
 Operational Plan |8

8.1 Operational layout

Considering the demand, we have decided to rent a shop of 40x30 ft. It will contain a
waiting room at the front; there will be also a chamber for our receptionist/supervisor.
There will be the haircut solution chamber and spa room beside the waiting room. Also
there will be a skincare center. Then there will two washrooms. Beside the wash room
there will be the beauty expert chamber. Our parlour will also contain an extra facility
for the ceremonial men’s wear.

Fig: Layout of bubbles gen’s parlor.

25
8.2 Products and Services

Bubbles Gent’s parlor will be providing both services and products to better meet our
customers’ needs.

8.2.1. Services:

Bubbles gent’s parlor & Men’s wear is a upscale, full-service for gent’s
beauty &fairness with attractive ceremonial outfit and costume.

Hair: cuts, relaxers, perms, colors, shampoo, conditioning, curling; reconstructing,

weaving and waving.

Nails: manicure, pedicures, polish, sculptured nails.

Skin Care: European facials, body waxing, massages.

Spa: Regular spa, Mexican olive spa, Baliness spa.

Men’s wear: we provide complete men’s wear in any kind of ceremonial.

8.2.2. Products:

Bubbles gent’s parlor & Men’s wear will, upon commencement of operations, sell a
wide range of beauty products. We will be providing quality hair, nail, and skin care
products. In addition we will have other name-brand products for sale to meet
customer needs, such as: Dove, Olay, Lux, kool, Gellete, Nivea, and Unilever. The
products will include shampoos, conditioners, hair spray, nail polish, nail files, skin
conditioners, and cleansers, facial masks, and other such beauty products. What will set
Penny’s Hair Salon apart from the competition is our commitment to providing all of
these products and services in one convenient location.

26
 Financial analysis |9
Financial analysis is the process of evaluating businesses, projects, budgets and other
finance-related entities to determine their performance and suitability. Typically,
financial analysis is used to analyze whether an entity is stable, solvent, liquid or
profitable enough to warrant a monetary investment. In this paper we are going to
show the incomes & expenses in details of “Bubbles gent’s parlor & men’s wear”. As it
is a new business so it is divided five quadratic periods to achieve its full shine. Suppose
the actual demand for the first month is 25% of its survey demand. Later on it will be
50% after that it will be 75% and finally will reach to its top notch. We classified our
total investment into two major segments. i) Start-up cost ii) Working capital iii) Cash
flow. Moreover the product cost will be incurred as variable cost. Amount of total
purchase also vary during the four quadratic periods also.

Table: 9.1 Total investment & source

Money Amount E or A Source (Where Amount

Estimated
or actual the money will
Needed for come from)
Start up costs 2223000/- E Personal Cash 1300000/-

Working Capital 186300/- E CFDC Loan 1200000/-

Total 2408500/- Total 2500000/-

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9.1 Startup cost & Working capital

Table: 9.2 Total working capital

Description Y/N Cost

Start-up costs
Salaries – pre-opening N
Shop securities Y 500000/-
Instrumental Fees Y 150000/-
Licenses/Permits Y 3000/-
Insurance N
Office Supplies Y 180000/-
Furniture/Display Y 200000/-
Advertising/Marketing N
Utilities Y 70000/-
Inventory Y 20000/-
Ceremonial men’s wear Y 200000/-
Renovations (leasehold improvements) Y 800000/-
Vehicles N
Special Equipment Y 100000/-
Total ( Start-up Cost in TK) 2223000/-
Working Capital (first month)
0)))00expenses)
Salaries Y 92000/-
Insurance Premiums Y 2000/-
Rent Y 50000/-
Subscriptions Y 500/-
Total Loan Payments Y 20000/-
Advertising/Marketing Y 2300/-
Professional Fees N
Supplies Y 5000/-
Utilities Y 6000/-
Taxes Y 5000/-
Repair and Maintenance Y 2500/-
Miscellaneous Expenses Y 1000/-

Total(Working Capital) 186300/-

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 9.2 Cash Flow Forecast

Table: 9.3 First Years, Monthly Cash Flow

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
***************** ***** ***** ***** ***** INCOME ***** ***** ***** ***** ***** ***** *****
Gross Sales 256300/- 260500/ 248600/- 217300/ 277100/- 255800/ 248400/- 271900/- 257900/- 250200/- 245100/- 258100/
- - - -
Receivables
Total Income 256300/- 260500/ 248600/- 217300/ 277100/- 255800/ 248400/- 271900/- 257900/- 250200/- 245100/- 258100/
****** -****** ****** -****** EXPENSES -****** ****** ****** ****** ****** ****** -******
*****************
Supplies 5000/- 5200/- 4800/- 4700/- 5500/- 5000/- 4700/- 5500/- 5000/- 4700/- 4500/- 4500/-

Salaries 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/- 92000/-

Rent 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/- 50000/-

Utilities 6000/- 5800/- 5700/- 5500/- 6200/- 5800/- 5500/- 6000/- 5800/- 5500/- 5600/- 5500/-

Advertising/Marketing 2300/- 2500/- 2100/- 2100/- 2400/- 2000/- 2200/- 2400/- 2100/- 2000/- 2000/- 2100/-

Insurance 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000/- 2000//-

Subscriptions 500/- 500/- 500/- 500/- 500/- 500/- 500/- 500/- 500/- 500/- 500/- 500/-

Owner Withdrawal 40000/- 42000/- 35000/- 37000/- 45000/- 40000/- 38000/- 45000/- 40000/- 40000/- 40000/- 43000/-

Repair & Maintenance 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/- 2500/-
2500/-
Taxes 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/- 5000/-
2500/-

Loan Payments 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/- 20000/-

Miscellaneous 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/- 1000/-

Total Expenses 226300/- 228500/ 220600/- 222300/ 232100/- 225800/ 223400/- 231900/- 225900/- 225200/- 225100/- 228100/
- - - -

Net Cash 30000/- 32000/- 28000/- (5000) 45000/- 30000/- 25000/- 40000/- 32000/- 25000/- 20000/- 30000/-

Cumulative Cash Flow 30000/- 62000/- 90000/- 85000/- 130000/- 160000/ 185000/- 225000/- 257000/- 282000/- 302000/- 332000/
- -

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Table: 9.4 Years 2, 3, 4, and 5 Cash Flow:

Year 2 Year 3 Year 4 Year 5

*************** INCOME ******* ******** *********
*
Cash Sales 3246500/- 3438500/- 3648000/- 3786500/-
Receivables
Total Income 3246500/- 3438500/- 3648000/- 3786500/-
*************** EXPENSES ******** ********* **********

Supplies 64000/- 68000/- 75000/- 78000/-

Salaries 1200000/- 1300000/- 1350000/- 1400000/-
Rent 600000/- 600000/- 600000/- 600000/-
Utilities 72000/- 72000/- 73000/- 73500/-
Advertising/ 26500/- 26500/- 28000/- 28000/-
Marketing

Insurance 24000/- 24000/- 24000/- 24000/-

Subscriptions 6000/- 6000/- 6000/- 6000/-
Owner Withdrawal 500000/- 500000/ 500000/- 500000/
Repair and 30000/- 30000/- 30000/- 30000/-
Maintenance
Taxes 60000/- 60000/- 62000/- 62000/-
Loan Payments 240000/- 240000/ 240000/- 240000/
Miscellaneous 12000/- 12000/- 12000/- 12000/-
Expenses

Total Expenses 2834500/- 2938500/- 2998000/- 3051500/-

Net Cash 412000/- 500000/- 650000/- 735000/-
Cumulative Cash 412000/- 912000/- 1562000/- 2297000/-
Flow

30
 Break-even analysis |10

It is very difficult to determine the break-even point of this business with lots of
parameters. But we can simplify the problems by using “P/V ratio”.

For the 1st year,

Total sales = 3047200 BDT

Total variable cost=1995200 BDT

Contribution= (3047200-1995200) =1052000 BDT

Total profit or Remaining loss margin= (1052000-2223000) = -1171000 BDT

P/V ratio=contribution/sales= (1052000/3047200)*100=34.52%

Break-Even-Point= (2223000/34.52)*100=6439745 BDT

So the break-even-point will be achieved after the total sales of 6439745 BDT

For the 2nd year,

Total sales = 3246500 BDT

Total variable cost=2114500 BDT

Contribution= (3246500-2114500)=1132000 BDT

So after 1st 2 years (24 months),

Total contribution = (1052000+1132000) =2184000 BDT

Total profit or remaining loss margin= (2184000-2223000) = -39000 BDT

31
For the 3rd year 1st month,

Sales=286541 BDT

Cost=184875 BDT

Contribution= (286541-184875) =101666 BDT

So after 25 months,

Total Contribution= (2184000+101666) =2285666 BDT

Total profit or remaining loss margin= (2285666-2223000)=62666 BDT

So the break-even point is achieved at the no of 25th month.

Table: 10.1Break Even Chart

Cost Break even chart of Bubbles Men's parlour

20000000
18000000
16000000
14000000 unit
12000000
Fixed cost
10000000
Variable cost
8000000
Total cost
6000000
sales
4000000
2000000
0
1 2
2000 3
4000 4
6000 5
8000 6
10000

32
 Current status |11
As our business is not established yet we are targeting some objectives to be achieved.
We are hopeful about our strategy from our market research and survey. We are
planning about how we can improve our business policy.

We will apply our gathered knowledge and information into our business. The
management team of other this type of businesses lack in knowledge and skills. We are
graduated from AUST under IPE discipline. As a result we have some specific knowledge
on business and management.

The current status of our business is under planning. We are gathering investment and
working capital to start our business.

33