This business plan is prepared to obtain financing in the amount of $10,000 to complete the service development, set up operations base, and implement an aggressive sales and marketing program.
The Hair Salon is a proposed new business. Principal has developed the skills and knowledge to manage and provide hair salon services for Fort Frances, and the surrounding area. The total market potential for the first year is $1,746,675. The business will be profitable in the first year of operation and conservatively expects to achieve sales of $53,392 with a net income of $12,352 by the end of the first year.
The market for this new business will be Tribal First Nation where the business will be located, Rainy River and Nicickousemenecaning First Nations, Fort Frances, Alberton and La Vallee Townships, Emo and the surrounding area. The market research has revealed a lack of hair salon services located within Tribal First Nation.
The Hair Salon is proposing that Indian Affair and Northern Development (INAC)’s Opportunity Fund program provide a grant contribution of 40 percent of the capital and working capital costs. Principal will contribute 40 percent cash equity which is consistent with INAC’s program mandate. The remaining 20 percent will be in the form of commercial financing from the Royal Bank of Canada.
The business will be self-sustaining after the first year of operation. The business can be fully operational eight weeks after financing has been arranged.
BUSINESS HISTORY AND ORGANIZATION
The principal is Principal, a longtime resident of the Tribal First Nation. Principal is a status Ojibway from the Tribal First Nation, near Fort Frances, Ontario. He is proposing to establish an hair salon business. The form of business ownership is a sole proprietorship, with Principal as the proprietor.
The company’s business address is:
123 Main Street
Fort Frances, Ontario
The business will be located on Tribal First Nation, and is scheduled to open on January 1, 2009. The principal will manage the operation, and receive the necessary business support to ensure sound fiscal business management. In relation to the development of aboriginal business, the principal has never received government assistance to start a business operation in the past.
The Hair Salon is being developed to provide a full range of hair salon services within the Tribal First Nation and the Town of Fort Frances, Ontario. The business plan is prepared in order to raise the financing necessary to develop the service, conduct business activities, and create an awareness of a service in a competitive target market.
The direct competition within the target market area specializes in hair care and styling. The most important aspect of this venture will be the ability to generate a steady clientele to offer an array of hair care services. The venture will have an established clientele because Principal’s wife Candace has been hairstyling in the area for the past 10 years, and has developed a clientele who come specifically to her for their hair care needs. The business will be able to offer competitive lower prices compared to the market competition because of the low overhead costs associated with the project.
The new business involves establishing a hair salon facility where people can meet their personal hair care needs. The facility will be located in the centre of the community with easy access for all customers. The facility will also be developed to create a stress free and pampered environment.
Principal will coordinate and provide these services.
The business will provide Hair Salon services on behalf of the clients and focus on the following services:
Hair Styling / Cutting
Washing / Drying
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