Entrepreneurship & SME

(Term Project)

Instructor: Mr. Faizan Khalid

Submitted By: Khadija Naeem (16p00022)

Samia Mansoor (16p00029)

Shanzay Sadiq (16p00030)

Class: MBA 1-A

LAHORE SCHOOL OF ECONOMICS

Batch 20016-18

Contents
INDUSTRY ANALYSIS:.................................................................................................. 4

1
 Characteristics of our Industry:............................................................................ 5
Product and Services:........................................................................................... 5
Management Team and Our Company Structure........................................................5
Business Idea:................................................................................................ 5
Unique Selling Proposition:............................................................................6
Purpose of selecting this business:................................................................7
Companys name:.......................................................................................... 7
Initial Investment:.......................................................................................... 7
Mission Statement:........................................................................................ 7
Vision:............................................................................................................ 7
Problem.......................................................................................................... 8
Solution:......................................................................................................... 8
MARKET ANALYSIS...................................................................................................... 9
Targeted locations:............................................................................................. 10
Target Market (Who will be our customers):.......................................................10
When?................................................................................................................ 11
Where?............................................................................................................... 11
PORTFOLIOS OF OUR COUSTOMERS.........................................................................11
APPROACHING CUSTOMER BASE:.............................................................................13
PLACING OF PRODUCT.............................................................................................. 14
Operations plan:....................................................................................................... 14
Location:............................................................................................................ 15
Skincare products:.............................................................................................. 16
General Items:.................................................................................................... 16
Organogram of the company.............................................................................17
Job description................................................................................................... 17
IT manager:........................................................................................................ 17
DETAIL OF PRICING STRUCTURE............................................................................... 18
Problems................................................................................................................... 21
Solutions to the problem.......................................................................................... 22
Financial Statements................................................................................................ 24
Initial Investment Breakdown................................................................................24

Balance sheet........................................................................................................ 26

2
 Cash flows............................................................................................................. 27

Income statement................................................................................................. 28

Market Research....................................................................................................... 29
Future plan:........................................................................................................ 30

INDUSTRY ANALYSIS:

The industry that we have selected is beauty industry. Beauty industry has deep roots in the
historical times. Beauty industry basically deals from the manufacturing of the products like

3
perfume, skin and hair products extra and not only this providing salon services that includes
cutting, makeup, cosmetic surgeries extra also comes under this industry. Beauty industry is
gaining importance day by day as people are becoming more aware and conscious about their
appearance and have started to spend a lot in pursuit to look best. This industry is expanding
with the every passing minute because it is profit reaping .Women are more into this industry
than men and utilize the facilities provided by it much more than women. Many players are
already working in this industry on a large scale as well on a small scale. The area business that
we selected is related to this industry but is unique, with innovation and twist.
Industry is already saturating but this industry business related to this industry if done right,
never fails. There is already a pool of players working in this industry but the area that we are
working on has no significant players but only players that we might consider as our competitors
are:
Discounted Promotional Coupons and Voucher deals

Freelancers

Promotional coupons and voucher deals that are available on different sites with discount rates is
an industry player that we consider as our competitor and the player in the domain we are
working on.
Freelancers are self-employed people who can work on any domain on which they want and
provide services and can be hired to complete a specific task of the field they are working on.
Freelancers are also a threat and our competitors in the domain we are working.

4
Characteristics of our Industry:
Beauty is characteristic of a persons appearance that gives satisfaction as well as pleasure to the
person who has it.

Product and Services:

This industry is based on products as well on services. Products are primarily for skin, hair, nails
extra. Services provided in this industry are also in a wider range from hair services that includes
cutting, dyeing, hair styling extra to the skin services that includes wide range of facials, laser
treatments, and cosmetic surgery to numerous treatments.

Management Team and Our Company Structure

Business Idea:
We are 3 business partners working on a project and primarily we have planned to launch our
website that will help the people specifically women who needs parlor services but are too busy
to go and avail them as they are busy fulfilling their responsibilities, daily chores and find it hard
to get out time and take care of themselves. Our business proposition is to develop a website and
mobile application where users can book their appointments. Online portals will help the users to
choose a time and location where they want their services. This will help the users from
demarcated zones to utilize our services at their door step and the women we will hire would be
through a reliable channel to ensure safety and would be charged reasonably and we will provide
them ease at their doorstep while providing services in reasonable prices. Our Plan is to hire
female staff who is trained from well renowned parlors and as well as the females who are
currently working in the renowned parlors and are free on weekends and want to utilize their
time. Once we receive a booking, trained workers along with their essentials depending on the
type of services they are going to provide will reach at their doorstep, all the products would be
of best quality along with affordable prices. We will be offering them on demand service plus

5
monthly subscription. Along with bridal makeup, we will also offer other mini services like
facials in discounted prices. Generally, when you go to a parlor its time consuming and
expensive whereas we are providing services at your step keeping in view our customers safety,
affordability and the quality of work, so we are offering a solution where you dont need to leave
your home and our trained staff will come at their home to detail it.

Unique Selling Proposition:

All of us are living in an era where time is flying and people are busy earning for their living,
even the women either house wives, working, or students they dont have time to visit a parlor on
regular basis. That results in lack of grooming. We are offering them value for their time and
money. With our solution they can utilize our services without any hassle. All you have to do is
just book an appointment with us we will be there at your doorstep while being at home we will
provide you with the best quality services. The products that we are using are all branded in
affordable prices to ensure quality as we dont play with any ones skin our customers are
valuable. Plus, our staff is trained from renowned parlors and the best part is that they know their
work in the best capacity.

Purpose of selecting this business:

We have chosen this industry (beauty) and in this industry we have chosen the area i.e. providing
home based parlor services that are in best quality and in reasonable prices by the well trained
staff as no there is no major player in the market who is providing these services we have
identified this thing as a market gap. Looking at the market gap and the potential in this industry
we have chosen this business. Beauty industry is huge and profit margins are high and growth
opportunities are high as well in the domain we are working on (providing home based
services).We are working through a proper channel and success is for sure because this industry
has potential that if the work is done in right way success will eventually come.

Companys name:

6
Vanity Box
We have chosen this name as this name indicates womens box. This box holds the stuff like
cosmetics and all other beauty related products. So whosoever will hear this name will easily
understand what our business is all about.

Initial Investment:
Investment is the most important part of any business. Initially we are investing 25 lac Rupees.

Mission Statement:
Our mission is to change the stereotypical way of parlor services and bring it to a whole new
level. Vanity box is born with an ideology to provide your parlor services at the ease of your
location.

Vision:
At Vanity box, our vision is to make home salon services as easy, reliable and delightful as online
shopping. We connect you with best beauty professionals near your area so that you get the
quality of service that you are so used to at your favorite salons and spas but now at comfort of
your home. You can select from numerous choices of beauticians and stylists based their
experience, price, reviews and ratings. We are looking forward to help you get your next hair
style, facial, waxing, threading, spa, massage, manicure, pedicure, haircut, bridal makeup,
makeover or other parlor services at your doorstep. So go ahead! Order stylist at home today by
downloading our android app.

Problem
Nowadays, considering the busy lifestyle and schedule of the people in Pakistan women want
quality services in affordable prices at their doorstep. Most of the people are busy with their
hectic routines, which makes it difficult for them even to go to their nearest parlor and get their
required services. That is not only time consuming but at times it also hectic for the working
women as well as for the students. Sometimes people do take out time to go to the parlor but if
the parlor is saturated they have to wait for hours that working women and students cant afford

7
it. After waiting for so long at times they even dont get they deserves. Products used at some
parlors are substandard and are of low quality. That not only damages the skin but also there is a
wastage of a lot of money and time as well. This is a serious problem faced by most the
customers.

Solution:
We have come up with a solution, which will provide individuals an efficient way to deal with
their problems. Our solution is smart enough to give them ease and saves people from the
various problems. Just like going to parlor that is time consuming process. Vanity box provides
its customers with the well trained staff and quality services. They dont need to go to the service
parlor in fact with Vanity box; you can turn your home into a mini parlor. We offer an online
solution to these problems. Once you fix the time and location, Vanity box will send their highly
trained female staff to your location. World dynamics has totally changed and if you want to lead
you need to change with it. This is our philosophy; we are changing with time and looking at the
current change everything is virtual so why cant be home based parlor services?

MARKET ANALYSIS

We are strictly dealing in beauty salon industry and providing servicing. In Pakistan there is a
fast growing beauty salon industry which is built on products and services that help us look our
best. Consumers driven by social media trends have led to the evolution of the concept of
grooming and beauty for both males and females. The beauty salon industry can be segmented
into hair, skin, nail, and makeup. The growth potential of beauty salons depends on a variety of
factors including demographics, population growth, and latest beauty techniques. Cosmetic
markets of the developing countries Brazil, Russia, India, Pakistan China. have been growing
very fast and accounted for approximately 25% of the market. Small salons contribute heavily to
the industry while the 50 largest companies draw just 15% of overall revenue.

According to the census, population of Pakistan is over 190M and female population in Pakistan
was at 48.61 %, out of which 1.5 million are educating working women facing time issues and

8
they want good quality products and services at an affordable cost. Whereas 1.5 is a huge
number. This depicts a really humongous Total Available market (TAM).

Purpose of choosing Lahore for our initial execution phase, is the density and internet
penetration rate. Lahore is the second most densely populated area of Pakistan. As we our
offering our services online so we need to analyze our target market based on the internet
penetration rate. Currently Lahore leads other cities in generating Internet traffic. Apart of that in
Lahore there are more than 1.5M cars, alone. According to Dawn news 600 new beauty salons
add to the of Lahore back in two months, which makes it really feasible for execution of the
plan as it is enriched with more than 1.5M potential customers. Pakistan currently leads the
Asian countries with highest internet penetration rate. With the licensing of 3G and
4G in Pakistan internet users are increasing day by day. According to a research by Tribune,
every month 1Million new subscribers are added to our telecommunication industry, which
increases the usage of internet. Till date in Pakistan we have more than 30 Million internet users
and this amount is growing rapidly.IT industry in Pakistan is at its verge there are a lot of start-
ups are appearing on the screen which are using the power of digital media to sell their products.
In first quarter of 2015, investment of more than $8 Million has been recorded most of this
investment came from foreign investors.Daraz.pk and Kamyu are two major online stores in
Pakistan. They are receiving more than 1000 orders a day. A part from two giants there are lots of
small players who are receiving bulk of orders on daily basis. All these facts make it clearer and
through these facts we can see that trend has been developed that people are ordering different
products/services through online shops. This further validates the idea and confirms the
Acceptability by Pakistani market.

Targeted locations:
Our targeted locations on the beginning stages will be:

Iqbal town
Model town
Johar town
Wabda town

9
 Gulberg
Calvary
Garden town
Canal view
deface

Target Market (Who will be our customers):

Ladies:
There are lots of working women who face issue regarding appointment they cannot go to a
salon because of lack of time or due to no availability of a good saloon in their area. So we will
target s and sell our services to them.

Students in university:
In Pakistan a huge chunk of girls in Lahore came for their higher studies from other cities and
other than that female students in university find it difficult to waste whole day at parlor so they
dont even have time to go to a hair salon to get a haircut. So we will provide them a haircut and
other facilities at their doorstep.

Beauty conscious women:

We came across a lot of women who are really touchy about their skin and want quality products
for facial at an affordable price. They are not satisfied by the products used in local salon on the
other hand branded salon are very costly so we will target them.
When?
Though the dot com bubble has busted all across the globe but in Pakistan, the era has just
started. We are moving towards online business and people have started ordering service online
because everyone is so busy earning for their basic necessities that they want everything
delivered at their doorstep. Seeing this growth in the e-business side, we believe its the right
time to jump into this industry, as there is no one else who has done this so far. It will be easy for

10
us to set standards and raise the entry to barriers in this industry. We will have much more time to
penetrate in the market and make a brand before someone else does.

Where?
Lahore is ranked on second, based on the Internet penetration. Plus, Lahore is the major
metropolitan city of Pakistan. Population is growing tremendously, along with Internet users.
With that the acceptance rate of new product is much higher in Lahore as compared to the other
cities of Pakistan. These are the reasons due to which we believe, starting from Lahore will be
much more beneficial for us. Plus, the most important factor is that the founders are from
Lahore, this will give us an edge to penetrate into Lahore market more easily.

PORTFOLIOS OF OUR COUSTOMERS

Mrs. ALI
She lives in model town, mother of two kids, aged between 25 -35
Require salon services and already availing them at home from random women but
facing security issues. Product use by her are not of good quality.
She is an unsatisfied customer, we will provide her our makeup artist at her door step
with security and responsibility at agreed time.

Ms. Sidra Masood

A doctor in her last year of medical collage
Lives in Iqbal Town Lahore, as being a medical student its very hard for her to get time
out of studies for parlor and thats why she is not able to groom herself she always
wanted her parlor beautician to come at her place.
Ms. Mehreen Mehmood
Is sister of groom his brother is getting married to girl living out of Lahore she need a makeup
artist plus hair dresser early at 6 am. We will target her as she need quality service and time
value.

Ms. Sabeen Haider

11
A working women work from 9 to 5, living in Johar town. She is facing problem regarding
appointment at parlor. And she is very lazy regarding self-grooming we will target her.

Mrs. Ahmed
A beauty conscious women of middle age , always looking for coupon and discount on online
beauty palour we will provide her beauty services at cheap rate and on her door step .

Mrs. Faraz
She lives in Wapda town, mother of three kids, aged between 25 -35
Require salon services and already availing them at home from random women but
Facing security issues. Product use by her are not of good quality.
She is an unsatisfied customer, we will provide her our makeup artist at her door step
with security and responsibility at agreed time.

Ms.Sadia Baig
An engineer in her last year of engineering collage
Lives in model town, as being a medical student its very hard for her to get time out of studies
for parlor and thats why she is not able to groom herself she always wanted her parlor beautician
to come at her place.

Ms.fatima Ijaz
She is a very religious women who dont go out. She like staying home her family is a bit rigid
and dont like her going out its her wedding next week and we will target her.

Ms.Yumna Fiaz
A working women work from 9 to 5, living in Deface town. She is facing problem regarding
appointment at parlor. And she is very lazy regarding self-grooming we will target her.

Zunaira Ali

12
HRM manager at packages Lahore Pakistan and mother of two kids she have time management
issues she has a very hectic life routine. She will approach us as we provided quality products
and services.

APPROACHING CUSTOMER BASE:

We are living in a digitized world where everything is digital world. Today we spend hours on
internet and social media, we are all obsessive users of our phones, another review has found.
The most frequent smartphone users click, tap or swipe on their phone 5,427 times per day.
Thats the top 10% of the mobile phone users, so one would suppose it to be extreme. Though,
the rest of us still touch the addictive device 2,617 times per day on average. (Network World,
n.d.) These are big numbers, and considering these statistics, we have decided:

To approach our customers, we will be adopting digital media marketing. Mostly social media
like Facebook but also others like Instagram and Snap Chat.
We are new entrepreneurial firm, and one of the catch of our idea is money saving. Therefore, we
just cannot afford main stream marking like, billboards, and television commercials at the
beginning stage of our business Primarily we will use sponsored advertisement service on
Facebook and Instagram, because these are the most popular social networks, and most of our
customers have them as part of their daily life. Moreover, it will help us to the targeted marketing
within the reach of our selected geographical segment (that is broader is Lahore), and to the
people closet to our customer profile. We will maintain active Facebook, Instagram and Snap
Chat accounts, creating a highly interactive space between us and our customers. Once we get
our prospective customer follow our page, we will make it our priority to establish visual bond
with them, through promotional posts any programs.

PLACING OF PRODUCT

13
Well our product is a website therefore we would not have to place it on any particular location it
will be accessible across the globe.
According to a recent report total number of internet users in Pakistan in year 2016 is
34,342,400 people which is 17.8% of Pakistans total population, and 1% of World
Internet Users i.e. 3,424,971,237. Most of Pakistani users are people in urban areas like
Lahore,

The Age Range that has highest Online of Pakistans is 20-24 years, girls from this age
group are apart of customers profile as well as their mothers and elder sisters (most of
grooming related decisions in a Pakistani house are made by the girls of this same age
group. As their mothers and sisters trust them to be mature yet young enough to be
updated on new trend.

Operations plan:
Planning is prerequisite to carry out any business. It is the most important of any
business. For a business to be successful preplanning for conducting its operations
should be there. If a business is carried out without planning it would definitely lead
to failure and if not a failure then definitely will not be that fruitful and not that
smooth as if a preplanning is there.

Planning of the operations is the important thing to carry out the business. For the
business operations are preplanned then the business day to day activities would be
conducted properly and smoothly. It basically provides the guideline how to run the
business on day to day basis in an effective and efficient way. And it not only
ensures the success of the business but preplanning also provides the freedom of
mind.

Vanity box Services helps you discover the best beauty trained staff available nearby your home who
will come at your doorstep to beautify you. Just download our app, select stylist near you basis
reviews, ratings, and price to book appointment and relax.

Most of the times that we are thinking pampering ourselves change the way we look and similarly
want a relaxing massage or need makeup help for getting ready for the wedding ceremony or just
feel like pampering ourselves with a manicure or pedicure in short when we want to groom and have
a relaxing moment. But then the problem arises that the salon or beauty parlor is too far away from
our home and we dont have enough time to go and spend time in waiting in the salon. We will

14
ensure such a marvelous experience that you will enjoy every moment that you will spend with us
we are to regular eyebrow threading and waxing without leaving comfort of your home.

Key features of Vanity Box app:

* Growing list of beauticians, stylists and beauty professionals.
* Book appointment in just few taps as per your schedule.
* Services offered are Facial, Clean Up, Bleach, Hair Cut, Hair Styling, Hair Coloring, Massage,
Manicure, Pedicure, Bridal Makeup, Make Over, Hair Spa, Waxing, Threading, Hair Rebonding and
much more. And you choose who, what, when and where.

* Parlour services at Home

* Salon Services at Home
* Doorstep Beauty Services

On day to day basis following procedure would be followed:

Every employee will report on the assigned date in the office

Employee punctuality, performance everything would be recorded on the daily basis
Once the booking is confirmed our It manager will give the details to the trained staff about
the location and the kind of the services demanded by the customer
After receiving the guide lines the trained member of the staff along with the our driver will
reach the destination point, will perform the duties and after that will come back to the office
Report any partner of the business and then he will enter the services and the amount been
received
12 pm to 8pm is our office timing

Location:
Location plays an important so while selecting the location of your office it should be given
importance and should be easily accessible
We have chosen Johar town as our Location as it is one of central locations in Lahore and is
easily accessible and is well know place.

Equipment needed:
Hair equipment:

15
 Scissors
Hair dryers
Hair Curlers
Haier dyes
Pins
Hair straighteners

Skincare products:
Scrubs
Masks
Toner cleansers
Skin bleaching products
Concealer
Primer
Bronzer
Foundation
Lip colors
Eye lash curlers
Eyeliners
Mascaras
Make up brushes
Make up removers

General Items:
Towels
Gloves
Combs
Bags
Nail clippers and filers

16
Organogram of the company

CEO
(marketing
head)

IT manager HR manager

Employees

Job description
IT manager:
To update the app
Keep in touch with the app
Inform the employees about the bookings
To review customer feedback
To respond efficiently to the employees

HR manager:
To deal with employees
Increase their productivity
To respond to the customer queries
To handle employee issues
To maintain their record
To motivate the employees

Marketing manager:
To develop an effective marketing plan
To implement the plan in an effective manner
To market the brand
We are 3 business partners performing different roles and we will enter into
the partnership through proper channel and system and we will register our
company legally and our partnership agreement is as below:

17
 Similarly our staff would be hired through a proper channel with an
employment contract that is as below:

DETAIL OF PRICING STRUCTURE

Our pricing strategy is our Unique Selling Preposition. We have kept it low. Initially we are
changing 30 to 50 percent the price of branded saloons in Lahore, and 10 to 30 % below of the
prices of an above average beauty salon located in Lahore.
The reason to adopt low price strategy was because everyone wants to look and feel good and
desires high quality services at low price. Our staff is trained by the best saloons in Lahore but
what makes our services attractive is that we are charging far below them.

Vanity box
Initial price list
Service Chargers
Manicure 500
Pedicure 500
Threading 50
Upper lip 20
Eyebrow 50
Full face 100
Depends
Waxing
500-3000
Hair cut 1000-2500
Hair styling 850
Hair color 1000-2500
Party makeup 5000-7000

Facials 1000-3500

PROMOTION & ADVERTISEMENT

18
We a have allocated a budget of 2,00,000 Pakistani Rupee for our promotion that will be done
through sponsored advertisement on Facebook and Instagram, and another 200,000 Pakistani
Rupee for the Luck draw done on our social media pages.
Techniques

1. One Time Free Services:

For promotional purposes we will facilitate our clients with one-time free service.
It will encourage them to try our services.

2. We discount for recommendations:

We will provide a discount to our existing costumers if they make
recommendation. We will give them 20% on their one time grooming session for
every three recommendations they make.

3. Short video:
We will encourage our clients to make short video sharing their experience with
Vanity Box by doing this will become a part of our luck draw being held at our
pages where every weak best video will we awarded with a branded suit.

19
20
Problems
1. Employee loyalty

The costs incurred when maintaining any small business add up as weeks and months
progress. As we are dealing with beauticians their loyalty is the major issue if the start
catering customers by them on channel this will cause a big loss and failure of the idea .

2. Converting customer on a mobile App

In Pakistan people dont find app user friendly they hesitate downloading app. the
process of downloading app and using it seems hard to them. Moreover, not everyone
knows how to order on app

3. Schedules

Supple scheduling is another worker incentive that allows beauticians feel more in
control of their world. It can as well let create a greater following, allowing return clients
come in when they are available. Scheduling shows your workers that you have great
concern about their needs. The point of sale software for beauty shops lets you keep both
client and employee incentives in order with the click of a mouse.

4. lack of trust

Security concern is the major issue. women are afraid of inviting a mobile beautician at
their place due to security concern and it is hard to trust strangers.as in Pakistan there is a
high rate of crime people dont trust strangers.

5 Harassment and timing issue:

As we are working with females there can be harassment issue faced by our employee as
working environment of Pakistan is always hostile. More over female workers dont
work after 8 so our service is going to be time bounded which is not liked by many
customers.

Solutions to the problem

EASY TO USE

21
 Just few taps and you are done! Vanity box Android App is intuitive, simple and easy to
use. We also make it easy for you to select the service or beautician by providing relevant
information and trusted reviews.

VERIFIED AND TRUSTED

Choose from the vetted and verified beauty professionals basis their training, experience
and genuine customer reviews.

SAVES TIME AND EFFORT

Too hot or cold to step outside to go to salon? Have a baby at home? A very busy
working woman? Or simply too lazy to leave home? We understand that and hence
Vanity box for those lazy, busy moments!

Creating customer and employee loyalty

We will create employee and customer loyalty by paying them slightly higher then
market rates we will compensate them in all possible way. as customer is the king and
employee are the key to make customer happy in service business.

Why vanity when we have plenty of parlors, salons and spas?

We give you four reasons: i) why go to salon when salon can come to you? ii) No waiting
time iii) Choose your own stylists with verified reviews yourself. When was the last time
you were told by the Salon that the beautician at your service is just 2 months old and has
made 3 mistakes in past one month! We tell you all about our stylist from their specialty,
work experience to our customers feedback iv) Last but not the least for the same quality
of service our stylists are much better priced compared to your nearest salon. In fact most
probably best priced amongst your nearby salons.

2.Can I trust the beauty professional coming to my house vanity?

Ans. In one word Absolutely! We do three different kind of background checks of any
stylist that we enroll. We have their verified ID card details, address proofs, education
and past employment proofs. We also assess quality of service of all our beauty
professionals.

3.What about the products they are using?

22
 Ans. We guarantee products used by our stylists are all genuine branded products. Vanity
will offers 100% satisfaction guaranteed or money back promise. Some of the brands used
by our professionals are VLCC, Lotus, Shahnaz Husain, LOral Professional.

Financial
Statements

Initial Investment
Breakdown
QT
Type Specifications Y Cost Total
Initial Inventory
100,00

23
 0

205,00
Rent 1 month advance 50,000 0

3 month security 150,000

10% commission for agent 5,000

Development and 150,00

Website management cost 1 0
Advertising Dev. & Dist. Cost

400,00
Live sampling 4 100,000 0
20
Brochure 0 15 3,000
20
Pamphlet 0 20 4,000

Digital 200,00
marketing 200,000 0

160,00
Magazine ad 4 40,000 0

Equipment

150,00
Furniture 1 150,000 0

2.0 60, 120,00

Air Conditioner 0 000 0
Laptops 5

24
 200,00
40,000 0

Office supplies

Printer HP 2 4,500 9,000

Phone connection PTCL Landline 2 1,200 2,400

Notice board 1 1,000 1,000

Pens, Writing pads, thumb
stationary pins, paper clips etc. 1 10,000 10,000

Printing Paper 2 500 1,000

Misc. expenses
Phone and
internet
connection Optix 20 mbps 3,000
10
Recruitment cost 0 10,000

proprietary rights 50,000

Riksha 1 45,000 45,000

Utilities

Electricity 75,000

1,898,
TOTAL 400

25
 Balance sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash 1,493,200 2,740,000 8,050,720
Inventory -
Fixed Assets
website 150,000 150,000 150,000
Equipment 245000 245000 245000
Accumulated depreciation 24500 49000 73500
Net Equipment 220,500 196,000 171,500
Total Fixed Assets 370,500 346,000 321,500
Total Assets 1,863,700 3,086,000 8,372,220
Liabilities
Accounts Payable - - -
Total Current Liabilities - - -
Long-term liabilities
Long-term debt - - -
Total Liabilities - - -
Equity
Partners' Equity 2,000,000 2,000,000 2,000,000

Retained Profit (136,300) 1,086,000 6,372,220

Total Equity 1,863,700 3,086,000 8,372,220
Total Liabilities and Equity 1,863,700 3,086,000 8,372,220

Cash flows
Operating Activities Year 1 Year 2 Year 3

Operating Income (136,300) 1,222,300 5,286,220

Depreciation expense 24,500 24,500 24,500

Increase in A/R - - -
Decrease in Prepaid expenses - - -
Decrease in A/P - - -
Decrease in Accrued Payments - - -

Net flow from Operating Activities (111,800) 1,246,800 5,310,720

Investing Activities
Equipment - -
26
 (200,000)

Purchase of website (150,000) - -

Purchase of bike (45,000) - -

Net flow from Investing Activities (395,000) - -

Financing Activities
Debt - - -
Net flow from Financing Activities - - -

Net Change in Cash (506,800) 1,246,800 5,310,720

Beginning Cash 2,000,000 1,493,200 2,740,000

Ending Cash 1,493,200 2,740,000 8,050,720

Income statement
Year 2 Year 3
Revenue 4,500,000 7,200,000 14,400,000
Less cost of sales 1,800,000 2,880,000 5,760,000
Gross Profit 2,700,000 4,320,000 8,640,000

Expenses
Salary Expense 1,080,000 1,188,000 1,260,000
Advertising Expense 767,000 920,400 1,104,480
Internet and Phone 64,800 64,800 64,800
Depreciation Expense: 24,500 24,500 24,500
General Expenses 900,000 900,000 900,000
Total 2,836,300 3,097,700 3,353,780

Profit before Tax (136,300) 1,222,300 5,286,220

Tax (25%) - - -

Net Profit (136,300) 1,222,300 5,286,220

27
 Market Research

At Vanity, our vision is to make home salon services as easy, reliable and delightful as online
shopping. We connect you with best beauty professionals near your area so that you get the
quality of service that you are so used to at your favorite salons and spas but now at comfort of
your home. You can select from numerous choices of beauticians and stylists based their
experience, price, reviews and ratings. We are looking forward to help you get your next hair
style, facial, waxing, threading, spa, massage, manicure, pedicure, haircut, bridal makeup,
makeover or other parlor services at your doorstep. To accomplish our goal, we have used
questioner research.

According to which mostly women are spending above 4000 Rs monthly on beauty care which is
a positive sign. There are lots of working women who face issue regarding appointment they
cannot go to a salon because of lack of time or due to no availability of a good saloon in their
area. These women are willing for mobile beautician service at their door step moreover people
who are living far from commercial area are more likely to avail our service. As our main focus
is
Genuine Products
All our beauticians use only branded and genuine products because you deserve the best!

o Trained Beauticians
We have very high bar on allowing beauty professionals to list on. All beauticians need to pass
our standard of service and cosmetics test.

o Background Checked

28
All our beauty professionals are vetted and background checked before they become part of
Vanity box family.

o Satisfaction Guaranteed
If you feel you are not satisfied with our services, treat them as free because your hard-earned
money deserves 100% satisfaction.

Future plan:
When we are able to achieve a decent number of clicks on our website, and made our customer
know about our service, we will develop a mobile application.
Mobile applications give a significantly speedier option than web browsing, and fortify your
image by snowballing your visibility. An application offers a business more manifestation on a
mobile than a browser bookmark because of its continuous presence in the phone. This helps
build customer loyalty by being there for them, and will make is easier for us to retain our
customers.
We plan to develop a Vanity Box application after 6 month of our initial launch.

29