TITLE: BLINK BOUTIQUE:NOVEAU EYELASHES

INTRODUCTION

This component of the business plan describes, its address and location,

and overall finance requirements as well as potential financing sources.

1. Description of the Business

Queen of Nails is a nail salon and beauty studio aimed at providing high-

quality nail care services in a relaxing and luxurious environment. The salon

offers a range of services including manicures, pedicures, nail extensions, and

nail art, to cater to the diverse needs of our clients. We prioritize customer

satisfaction by using premium nail products, maintaining strict hygiene standards,

and employing skilled nail technicians who stay updated with the latest trends

and techniques in the industry. Our goal is to create a welcoming and

rejuvenating experience for our customers, ensuring they leave feeling pampered

and confident in their appearance. Our commitment extends to ensuring a

comfortable and inviting atmosphere within our salon, where clients can unwind

and indulge in a pampering experience that leaves them feeling not just beautiful,

but also relaxed and rejuvenated.

2. Location of the Business

Queen of Nails is situated at 93 Osmeña Street, Cebu City, Central

Visayas, prides itself on providing a sophisticated and inviting atmosphere for

clients. The salon's interior design is carefully curated with elegant furnishings,

incorporating soothing color schemes and subtle lighting to create a calming and

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luxurious ambiance. Clients can expect a high level of comfort during their visit,

thanks to plush seating areas that allow them to unwind while receiving their

treatments. Attention to detail is a cornerstone of our approach, ensuring that

every aspect of the salon contributes to a serene and rejuvenating experience for

our clients. From the moment they enter, they are immersed in a world of beauty

and relaxation, making each visit not just about nail care but also about indulging

in a premium spa-like experience.

3. Funding Requirement and Source of Funds

1. Start-up Costs:

* Lease deposit: ₱5,000.00

* Renovation and remodeling: ₱20,000.00

* Equipment (UV Lamp, Nail Art Paint, UV Light, Arm Rest, etc.)

₱40,000.00

* Furniture and Fixtures: ₱50,000.00

* Initial Marketing and branding: ₱5,000.00

* Licenses and Permits: ₱15,000.00

* Legal and Accounting fees: ₱5,000.00

* Contingency (10% of total start-up costs): ₱14,000.00

Total Startup cost: ₱140,000.00

2. Working Capital;

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 * Salaries (including nail technician, and staffs): ₱20,000.00 per month

* Rent and Utilities: ₱15,000.00 per month

* Inventory replenishment: ₱10,000.00 per month

*Maintenance and repairs: ₱5,000.00 per month

Total Monthly Working Capital: ₱ 50,000.00

Source of Funds:

1.Personal Investment:

*Owner’s savings: ₱300,000.00

2. Loans and Financing:

*Small Business Administration (SBA) loan: ₱25,000.00

*Commercial bank loan: ₱25,000.00

3. Crowdfunding or Investor:

* Crowdfunding campaign: ₱5,000.00

* Angel Investor: ₱15,000.00

Total Source of Funds: ₱370,000.00

Creating a solid foundation for Queen of Nails outlines the business' goals,

strategies, and financial projections, serving as a roadmap for success. It helps

identify potential challenges and opportunities, providing a framework for

decision-making and guiding the salon's growth. By adhering to a well-thought-

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out Business Plan, entrepreneurs can effectively communicate their vision to

stakeholders, including employees, investors, and lenders. Securing the

necessary Licenses and Permits, and Compliance with legal and regulatory

requirements are crucial steps. This not only helps avoid penalties and legal

issues but also builds trust with customers and partners.

Additionally, acquiring the appropriate equipment and supplies is essential

for a nail salon. This could range from nail care tools and products to salon

furniture and technology. By investing in high-quality equipment and supplies,

Queen of Nails can enhance productivity, improve efficiency, and deliver a better

customer experience.

In terms of funding, Queen of Nails plans to utilize personal savings as a

demonstration of commitment and control. Exploring bank loans can offer access

to additional capital without diluting ownership, especially for larger equipment

purchases or salon expansions. Seeking investments from potential partners or

investors can provide substantial funding and expertise but requires careful

evaluation and alignment with long-term goals.

Strategically considering various sources of funds is essential for Queen

of Nails' success. Utilizing personal savings, and exploring bank loans are all

viable options depending on the salon's specific needs and growth plans.

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 Table 1.1. Start-up Expenses (in PHP)

Legal PHP 10,000

Marketing Promotion PHP 10,000

Website PHP 5,000

Building PHP 50,000

Other start-up costs PHP 60,000

Total start-up expenses PHP 185,000

Table 1.2. Start-up Assets (in PHP)

CASH REQUIRED PHP 500,000

START-UP INVENTORY PHP 40,000

EQUIPMENT PHP 40,000

TOTAL START-UP ASSETS PHP 580,000

Table 1.3. Start-up Funding Sources

Planned Investment PHP 500,000

Mortgage PHP 0

Total Funding Required 5 PHP 500,000

 Table 1.4. Planned Investment Breakdown

Sophia Quintin Castro PHP 500,000

Total Planned Investment PHP 500,000

EXECUTIVE SUMMARY

In concise and informative manner, this section explains our vision,

mission, goals, objectives, business and product position, and wealth

improvement approaches.

1. Vision

“Our vision is to provide our teeming clients with the best of nail services,

such that is hard to experience. We strive to achieve this with our overly trained

nail attendants and the ambiance with our salon has to offer.”

2. Mission

“Our mission is to provide professional and creative service to our clients

thereby meeting their beauty needs at all times.”

3. Goals

A. To become the go-to destination for high-quality nail care services in our local

community.

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B. To maintain a strong customer-centric approach, ensuring exceptional

customer satisfaction and loyalty.

C. To continually enhance our expertise and offerings through ongoing training

and staying updated with industry trends.

D. To establish a profitable and sustainable business model that supports growth

and expansion opportunities.

4. Objectives

A. Increase customer base by 20% within the first year of operations.

B. Achieve a customer satisfaction rating of 95% or higher based on feedback

surveys.

C. Conduct monthly training sessions for nail technicians to ensure skill

enhancement and knowledge of the latest trends.

D. Expand our service offerings to include new nail art techniques and

specialized treatments.

E. Implement cost-effective marketing strategies to reach a wider audience and

increase brand visibility.

F. Develop partnerships with beauty influencers and local businesses to enhance

brand recognition and customer engagement.

5. Business and Product Position

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A. Queen of Nails positions itself as a premium nail salon offering a wide range of

high-quality nail care services, including manicures, pedicures, nail extensions,

and nail art. We differentiate ourselves through our skilled nail technicians,

luxurious ambiance, use of premium products, and strict hygiene standards.

6. Wealth Improvement Approaches

Queen of Nails adopts several strategies to improve wealth and financial stability:

A. Revenue Diversification: In addition to nail services, we offer retail sales of

premium nail care products and accessories. This diversification of revenue

streams enhances profitability and sustainability.

B. Cost Management: We implement cost-effective practices without

compromising on quality, such as efficient inventory management, optimized

staffing, and strategic pricing strategies.

C. Customer Retention: Our emphasis on exceptional service and customer

satisfaction leads to repeat business and positive word-of-mouth referrals, driving

revenue growth.

D. Marketing and Branding: We invest in targeted marketing campaigns, social

media presence, and collaborations with beauty influencers to increase brand

visibility and attract new clients.

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 E. Financial Planning: We prioritize sound financial management, including

budgeting, cash flow analysis, and regular financial reviews to identify areas for

improvement and capitalize on growth opportunities.

ENVIRONMENTAL ANALYSIS

This part involves assessing the strengths, weaknesses, opportunities,

and threats. This analysis also considers the political, economic, social, and

technological factors.

I. SWOT Analysis

Strengths:

1. Specialization in nail care and design caters to a niche market with specific

beauty needs.

2. Reputation for creativity and trendsetting in nail art attracts clients seeking unique

designs.

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3. Repeat business due to regular need for nail maintenance fosters a loyal

customer base.

4. Potential for additional services like hand massages, enhancing customer

experience.

Weaknesses:

1. Limited services range to nails might restrict the client base.

2. Health and safety concerns due to the use of chemicals can increase operational

complexities.

3. High reliance on skilled technicians, challenging to keep a team of experienced

and creative professionals.

4. Vulnerability to seasonal fluctuations with certain times of the year possibly

seeing reduced business.

Opportunities:

1. Growing interest in nail aesthetics offers a chance to attract a wider client base

with innovative designs.

2. Retailing specialized nail care products can improve an additional revenue

source.

3. Expanding service offerings to include new nail care technologies and

treatments.

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4. Strategic use of digital marketing and social media to showcase work and attract

younger clients.

Threats:

1. Intense competition from other nail salons and at-home nail care products.

2. Economic downturns may lead to a decrease in discretionary spending on beauty

services.

3. Changing health and beauty regulations could impact operational procedures

and costs.

4. Rapidly evolving fashion trends require constant adaptation to stay current and

appealing.

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II. PEST Analysis

Political Factors

1. Regulations: Changes in health and beauty regulations could impact your

operational procedures and costs, especially regarding the use of chemicals and

hygiene standards.

2. Taxation: Any changes in tax policies related to beauty services or retailing

could affect your financial planning and pricing strategies.

Economic Factors:

1. Economic Downturns: During economic downturns, there may be a decrease

in discretionary spending on beauty services, impacting your revenue.

2. Disposable Income: Fluctuations in disposable income levels can influence

customer spending on luxury beauty treatments like nail care and design.

3. Inflation: Rising inflation can lead to increased costs for supplies, potentially

affecting your profit margins.

Social Factors:

1. Trends and Preferences: Rapidly evolving fashion trends and customer

preferences in nail aesthetics require constant adaptation to stay current and

appealing.

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2. Demographics: Understanding your target demographics' preferences and

lifestyle choices can help tailor your services and marketing strategies effectively.

3. Health and Wellness Trends: Growing awareness of health and wellness may

influence demand for natural and eco-friendly nail care products and services.

Technological Factors:

1. Digital Marketing: Strategic use of digital marketing and social media can be a

significant opportunity to showcase your work, attract younger clients, and stay

connected with your customer base.

2. Nail Care Technologies: Advancements in nail care technologies and

treatments offer opportunities to expand your service offerings and attract tech-

savvy customers.

3. Point-of-Sale Systems: Utilizing efficient point-of-sale systems and digital tools

for appointment booking and customer management can enhance operational

efficiency and customer experience.

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 BUSINESS DESCRIPTION

This section highlights the organization’s nature, the product or service

that it intends to produce or offer, various equipment and materials and personnel

requirement.

1. Nature of the Organization

Queen of Nails operates as a premier nail salon and beauty studio

dedicated to exceptional customer experiences. At the heart of its organization is

a customer-centric approach, where every detail, from personalized services to

the use of premium nail products, is meticulously designed to ensure client

satisfaction. The salon's team comprises skilled nail technicians who stay abreast

of the latest industry trends, guaranteeing top-quality services that meet and

exceed customer expectations. This commitment to excellence extends to the

salon's ambiance, characterized by elegant furnishings, soothing color schemes,

and subtle lighting, creating a luxurious and welcoming environment for clients to

indulge in.

Central to the salon's organization is its unwavering focus on nail care

excellence. While offering a range of services such as manicures, pedicures, nail

extensions, and intricate nail art, "Queen of Nails" emphasizes mastering the art

of nail care to enhance the natural beauty of every client's nails. The salon's

dedication to innovation ensures that it continually introduces new services and

products that resonate with customer preferences and reflect industry

advancements. By combining premium services, skilled professionals, luxurious

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ambiance, and a passion for nail care, "Queen of Nails" strives to establish itself

as a premier destination for those seeking top-tier nail care experiences.

2. Product Description

Queen of Nails offers a comprehensive range of high-quality nail care

services designed to enhance the natural beauty of nails and provide a

rejuvenating experience for clients. Our product lineup includes:

1.Manicures: We offer a variety of manicure options, including classic, gel, and

acrylic manicures, tailored to suit individual preferences and nail health.

2. Pedicures: Our pedicure services are designed to pamper and revitalize tired

feet, with options such as classic pedicures, spa pedicures, and specialized

treatments for cracked heels and dry skin.

3. Nail Extensions: For those looking to add length and elegance to their nails,

we provide professional nail extension services using high-quality materials for a

natural look and durable finish.

4. Nail Art: Our skilled nail technicians excel in creating intricate and stunning nail

art designs, from minimalist patterns to elaborate themes, using a range of

techniques like hand painting, stamping, and embellishments.

5. Premium Nail Products: We exclusively use premium nail care products known

for their quality, safety, and long-lasting results, ensuring that our clients receive

the best possible care for their nails.

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6. Hygiene Standards: We maintain strict hygiene standards throughout our

salon, including regular sterilization of tools and equipment, disposable items for

single-use, and a clean and sanitized environment for our clients' peace of mind.

7. Customer Experience: At "Queen of Nails," we prioritize customer satisfaction,

providing a comfortable and luxurious ambiance where clients can relax and

enjoy personalized services from our skilled and friendly team of professionals.

3. Equipment and Materials

Queen of Nails is equipped with state-of-the-art tools and premium

materials to ensure the highest standards of nail care and customer satisfaction.

Our salon invests in top-quality equipment and materials, including:

1.Nail Stations: Each nail station is equipped with high-quality manicure and

pedicure tools, including nail files, buffers, cuticle pushers, and sterilization

equipment to maintain hygiene standards.

2.UV/LED Nail Lamps: We use professional-grade UV/LED nail lamps for gel

manicures and nail extensions, ensuring efficient curing and long-lasting results.

3.Nail Extension Materials: Our nail extension services utilize premium materials

such as acrylics, gels, and fiberglass for durable and natural-looking nail

enhancements.

4.Nail Art Supplies: We offer a wide range of nail art supplies, including nail

polishes, nail decals, rhinestones, glitter, and specialty nail art brushes, allowing

our technicians to create intricate and personalized designs.

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5.Premium Nail Products: We partner with reputable brands that offer high-quality

nail care products, including nail polishes, base coats, topcoats, cuticle oils, and

moisturizers, ensuring optimal nail health and long-lasting manicures.

6.Sanitization and Hygiene: Our salon adheres to strict sanitization protocols,

using hospital-grade disinfectants for all tools and surfaces, disposable items for

single-use, and implementing regular cleaning schedules to maintain a clean and

hygienic environment for our clients.

7.Comfortable Seating: We provide ergonomic and comfortable seating for

clients during their nail care treatments, enhancing their overall experience and

relaxation.

4. Personnel requirement

The personnel requirements for Queen of Nails encompass a team of skilled

professionals dedicated to delivering exceptional nail care services and ensuring

a positive customer experience. Our personnel needs include:

1. Nail Technicians: Experienced and certified nail technicians proficient in

manicures, pedicures, nail extensions, and nail art techniques. They should have

a strong understanding of nail health, product knowledge, and the ability to

create customized designs based on client preferences.

2. Nail Artists: Creative and artistic individuals with a passion for nail artistry,

capable of designing intricate and unique nail art designs using various

techniques and materials.

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3. Receptionist: A friendly and efficient receptionist to manage appointments,

handle client inquiries, process payments, and maintain a welcoming atmosphere

for clients.

4. Sanitation Specialist: A dedicated staff member responsible for maintaining

strict hygiene standards, sterilizing tools and equipment, and ensuring a clean

and sanitized environment for clients and staff.

5.Customer Service Representatives: Supportive and knowledgeable staff

members to assist clients with product recommendations, aftercare instructions,

and addressing any concerns or feedback to ensure high customer satisfaction.

6. Manager: An experienced salon manager to oversee daily operations, manage

inventory, schedule staff, implement policies and procedures, and uphold the

salon's standards of excellence and professionalism.

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 ORGANIZATIONAL PLAN

This section covers the form of business organization, liability of owners,

organizational structure, roles and responsibility, and salary requirements.

1. Form of Business Organization

Queen of Nails operates as a sole proprietorship, wherein the proprietor

exercises full control and responsibility over all facets of the salon's operations.

As the sole proprietor, one assumes personal liability for any debts or obligations

incurred by the business. This organizational structure offers a streamlined

approach to management and decision-making, facilitating direct oversight of

daily activities, customer interactions, financial transactions, and overall

performance. It also provides flexibility in responding to market trends,

implementing innovative concepts, and tailoring services to meet client

preferences. Nonetheless, it is imperative to acknowledge and carefully consider

the potential risks and obligations associated with personal liability inherent in

sole proprietorships.

2. Liability of owners

In a sole proprietorship, the owner is personally liable for the liabilities and

debts of the business. This means that in the case of Queen of Nails, the

CEO/Owner, as the sole proprietor, would bear the primary liability for any legal

issues, debts, or obligations of the business.

The liability extends to the scope of te business operations and the actions of the

individuals involved. The liability of each role within Queen of Nails.

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CEO/Owner:

Liability: One significant aspect of being a sole proprietor is that you can be

held personally liable for any legal or financial obligations, debts, lawsuits, or

damages arising from the business operations. This means that your personal

assets, such as savings, investments, or property, could be at risk if the

business incurs liabilities that it cannot cover.

Marketing Manager:

Liability: The Marketing Manager's liability primarily relates to the accuracy

and legality of marketing materials and campaigns. They must ensure that

promotions are truthful, comply with advertising regulations, and do not

mislead consumers. Any claims or disputes related to marketing practices

could impact the manager's liability.

Financial Manager:

Liability: The Financial Manager's liability is associated with financial

management practices and compliance. They must accurately record

financial transactions, maintain proper documentation, adhere to accounting

standards, and ensure tax compliance. Any discrepancies, errors, or financial

misconduct could result in liability for the manager.

Manager:

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Responsibilities: The salon manager is responsible for overseeing daily

operations, managing inventory, scheduling staff, implementing policies, and

upholding standards of excellence and professionalism.

Liability: While the manager is crucial for the salon's smooth functioning, their

liability is typically limited to their professional responsibilities within the

business. However, they may be held accountable for negligence or

misconduct in their managerial duties.

Nail Technicians:

Liability: Nail technicians may be liable for any errors, injuries, or damages

that occur during the provision of their services. This includes issues such as

allergic reactions to products used, injuries from equipment, or dissatisfaction

with the results. Professional liability insurance can help mitigate risks for nail

technicians.

Receptionist:

Liability: Receptionists typically have limited liability related to their job duties,

such as scheduling errors or miscommunication with clients. However, they

must still adhere to professional standards and ensure accurate handling of

client information and transactions.

Sanitation Specialist:

Liability: Their liability primarily involves adherence to sanitation protocols and

ensuring a hygienic environment. Failure to maintain proper hygiene

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standards could lead to health-related issues for clients and staff, potentially

resulting in liability claims.

3. Organizational Structure

The organizational structure plays a crucial role in the success and

efficient functioning in Queen of Nails. The structure helps define the

hierarchy, roles, and responsibilities within the organization, ensuring smooth

coordination, effective decision-making, and optimal utilization of resources.

By establishing a clear structure, Queen of Nails can enhance operational

efficiency, productivity, and ultimately achieve its business goals.

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4. Roles and Responsibilities

 Sophia Quintin M. Castro as CEO/Owner

-Has complete control and responsibility for all aspects of the business,

including decision-making, financial management, legal compliance, and

day-to-day operations.

 Gian F. Camarillo as Marketing Manager

- Responsible for developing and implementing marketing strategies to

attract and retain customers. This includes advertising campaigns, social

media management, promotional events, and brand positioning to

enhance the salon's visibility and customer engagement.

 Jake Harl L. Tabay as Financial Coordinator

- Oversees financial planning, budgeting, accounting, and reporting

functions of the salon. They manage cash flow, monitor expenses, handle

financial transactions, prepare financial statements, and ensure

compliance with financial regulations.

 Shelly Beb B. Pardillo as Receptionist

- Receptionists manage appointments, handle client inquiries, process

payments, and maintain a welcoming atmosphere in the salon.

 Junalyn R. Borado as Nail Technician

- Nail technicians provide a range of nail care services, including

manicures, pedicures, nail extensions, and nail art. They must ensure

quality services, prioritize nail health, and customize designs based on

client preferences.

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  Tresha A. Baculta as Nail Technician

-Dedicated to delivering high-quality services while prioritizing the health

and well-being of your nails and also specialize in creating customized

designs tailored to each client's preferences, ensuring a unique and

personalized experience.

 Vianne Kaye U. Montejo as Nail Technician

- Delivering high-quality services while prioritizing the health and well-

being of the client's nail and also personalize designs according to each

client's preferences, ensuring a unique and satisfying experience for every

visit.

 Kc C. Deresas as Nail Technician

- Nail technicians provide a range of nail care services, including

manicures, pedicures, nail extensions, and nail art. They must ensure

quality services, prioritize nail health, and customize designs based on

client preferences.

 Queza A. Caparida as Nail Technician

-Dedicated to delivering high-quality services while prioritizing the health

and well-being of your nails and also specialize in creating customized

designs tailored to each client's preferences, ensuring a unique and

personalized experience.

5. Salary Requirements

At Queen of Nails, we prioritize fair treatment and compensation for our

valued personnel. We believe that recognizing and rewarding their skills and

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contribution is essential for a motivated and dedicated team. Queen of Nails

salary requirements and additional benefits we offer:

1. Salary and Wages: Each personnel will receive a salary that is commensurate

with their position, roles, and level our salary structure is competitive within the

industry and reflects the value our employees bring to the business.

2. Working Hours: Our standard working hours 8 A.M to 5 P.M., Monday to

Saturday, with an 8-hour workday. We take into account factors such as under

time, overtime, absence, and presence during working hours to ensure accurate

and fair compensation.

3. Medical Allowances: We provide emergency medical allowances to all

employees. This benefit aims to support our team members during unforeseen

health-related situations, ensuring their well-being and peace of mind.

4. Personal Development: We believe in investing in the growth and development

of our employees. As part of our commitment to their professional advancement,

we offer various training programs, including nail technician training and

cusyomer service workshops. These opportunities allow our personnel to

enhance their skills and expertise, contributing to their personal and career

growth.

5. Compensation and Benefits: In addition to competitive salaries, we offer

various compensation and benefits to our workers. This includes performance-

based bonuses to recognize outstanding achievements, employee discounts on

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Queen of Nails design, and paid time off allow for work-life balance and personal

rejuvenation.

At Queen of Nails, we understand the importance of a satisfied and motivated

workface. By providing fair for professional development, and attractive benefits,

we aim to create a supportive and rewarding environment that fosters long-term

employee and engagement.

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 PRODUCTION PLAN

This section involves the production schedule, production process, processing

plant and equipment, source of materials and production cost.

1. Production Schedule

This table illustrates the anticipated Monthly Demand and Nail services for

Book Journals.

Month Projected Nail Services

Demand
January High 500
February Medium 300
March High 400
April High 500
May Medium 300
June High 400
July High 500
August Medium 300
September High 400
October High 500
November Medium 300
December High 400
TOTAL 4800

2. Production Process
The production process for Queen of Nails involves several steps to

ensure high-quality nail care services. Here's an overview of the production

process:

1. Client Consultation:

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 Understand the client's preferences, nail health concerns, and desired

outcome.

2. Preparation:

 Set up the workstation with necessary tools, equipment, and products for the

chosen service (manicure, nail art, or nail extensions).

3. Sanitization and Hygiene:

 Ensure proper sanitization of tools, equipment, and the workspace to maintain

hygiene standards.

4. Manicure:

 For manicures, start by shaping the nails, trimming cuticles, and buffing the

nail surface.

 Apply base coat, nail polish (if desired), and topcoat. Finish with hand

massage.

5. Nail Art and Design:

 Based on the client's preferences, create intricate nail designs using nail art

tools, paints, stickers, and embellishments.

 Allow time for designs to dry and set properly.

6. Nail Extensions:

 Prepare artificial nail tips or forms based on the desired length and shape.

 Apply acrylic or gel to create extensions, ensuring a natural look and

comfortable fit.

 Sculpt and shape the extensions, then apply nail polish or nail art as per the

client's choice.

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7. Final Inspection:

 Inspect the finished nails for any imperfections, ensuring a flawless and

professional look.

8. Client Satisfaction:

 Communicate with the client to ensure they are satisfied with the results.

 Provide aftercare instructions and recommendations for maintaining nail

health and prolonging the longevity of the service.

9. Clean-Up and Sanitization:

 Clean and sanitize all tools, equipment, and the workstation after each client

to maintain cleanliness and hygiene.

10. Record Keeping:

 Maintain records of client preferences, services provided, products used, and

any notes for future appointments.

This production process ensures that each client receives personalized and

high-quality nail care services at Queen of Nails, enhancing customer

satisfaction and loyalty.

3. Processing Plant and Equipment

Queen of Nails operates as a nail salon, focusing on providing specialized

nail care services rather than traditional manufacturing processes. The salon

relies on a range of specialized equipment and tools to deliver high-quality

services to its clients. These tools include UV lamps, essential for curing gel nail

products, which activate chemicals in gel polishes and extensions, ensuring a

durable and long-lasting finish. Additionally, a variety of nail art paints are used to

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create intricate designs and artwork on nails, catering to diverse client

preferences.

UV lights serve as an additional curing source for specific nail products,

ensuring thorough curing and setting for professional results. Comfort is

prioritized with arm rests provided for clients during treatments, enhancing their

overall experience. Nail technicians utilize nail drills for shaping and refining

extensions, while clippers, files, cuticle pushers, and nippers play crucial roles in

maintaining nail health and aesthetics during nail care procedures.

The salon's offerings extend to acrylic and gel products used for creating

nail extensions and overlays, providing clients with customizable options. A wide

array of nail polish colors and finishes further enhances the salon's service

range, allowing for versatile and personalized nail treatments. Nail brushes of

varying sizes and types are employed for nail art and detailing work, adding

intricate designs and finishing touches to nail enhancements.

In addition to tools, Queen of Nails prioritizes hygiene and safety by

maintaining a stock of sanitation supplies such as disinfectants, sanitizers, and

disposable tools. These measures uphold strict hygiene standards and create a

safe, professional environment for clients. Regular equipment maintenance and

proper sanitation practices are integral to ensuring a comfortable and high-quality

experience for customers, reflecting the salon's commitment to excellence in nail

care services.

4. Source of Materials

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 Queen of Nails prioritizes sourcing materials from reputable distributors,

both through traditional channels and online platforms. These distributors are

well-known in the beauty and nail care industry for their commitment to quality

and reliability. By partnering with established distributors, the salon ensures

access to genuine products that meet industry standards and regulatory

requirements.

Utilizing traditional distribution channels allows Queen of Nails to establish

direct relationships with distributors, ensuring prompt deliveries and personalized

support. These distributors often have physical stores or warehouses where

salon owners can visit, view product samples, and make informed purchasing

decisions. This hands-on approach enables the salon to select the best materials

for its services, ranging from nail products and polishes to tools, equipment, and

sanitation supplies.

In parallel, leveraging online platforms offered by these distributors

expands Queen of Nails' reach and convenience. Through e-commerce

channels, the salon can browse extensive product catalogs, compare

specifications, and place orders seamlessly. Online platforms often provide

detailed product descriptions, customer reviews, and ordering options that

streamline the procurement process. This digital accessibility enhances efficiency

and flexibility in managing material acquisitions, ensuring timely restocking and

inventory management.

By combining traditional distribution channels with online sourcing, Queen

of Nails benefits from a diverse supply network that caters to its specific needs.

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This dual approach not only guarantees access to genuine and high-quality

materials but also fosters a dynamic and adaptable procurement strategy. As a

result, the salon can uphold its commitment to delivering exceptional nail care

services while staying abreast of industry trends and innovations.

5. Production Cost

The production cost for Queen of Nails encompasses various expenses

associated with delivering nail care services and maintaining salon operations.

These costs can be categorized into direct and indirect expenses:

a. Labor

At Queen of Nails, the salary structure reflects the roles and

responsibilities of each staff member. Managers play a crucial role in overseeing

salon operations, including staff management, customer service, inventory

control, and financial management. Their monthly salary of ₱30,000 reflects their

experience, expertise, and leadership in ensuring the salon runs smoothly and

efficiently.

Receptionists are the frontline staff who greet clients, manage

appointments, handle inquiries, process payments, and maintain the salon's

administrative tasks. Their monthly salary of ₱25,000 acknowledges their pivotal

role in providing excellent customer service, managing client bookings, and

creating a welcoming environment for clients.

Nail technicians at Queen of Nails has earning structure based on their

performance and productivity. Their monthly salary is ₱20,000 per month. This

arrangement incentivizes nail technicians to deliver high-quality services, cater to

32
more clients, and enhance their earning potential based on their skills and

efficiency.

This compensation model fosters a collaborative and performance-driven

environment at Queen of Nails, where each staff member is motivated to

contribute their best and provide exceptional nail care services to clients. It also

ensures fairness and transparency in earnings while rewarding productivity and

customer satisfaction, contributing to the overall success and reputation of the

salon.

b. Materials

MONTHLY

 Projected no. of base coat (20 pieces): PHP 2000

 Projected no. of top coat (10 pieces): PHP 1000

 Projected no. of nail tips (20 packs): PHP 6000

 Projected no. of gel manicure (assorted colors) (100 pieces): PHP 10000

 Projected no. of nail tips glue (20 pieces): PHP 3000

 Projected no. of Nail Primer (20 pieces): PHP 1600

 Projected no. of Sanitizer (1 galloon): PHP 300

 Projected no. of Acetone (1 galloon): PHP 220

 Projected no. of Nail Polish remover (10 pieces): PHP 800

 Projected no. of dehydrator (5 pieces): PHP 400

 Projected no. of Cuticle oil and creams (20 pieces): PHP 1500

 Projected no. of gloves (20 packs): PHP 4000

 Projected no. of Sunding buffer band drill file (2 packs): PHP 130

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  Total Monthly material cost: PHP 30, 950.00

c. Manufacturing Process

The manufacturing process at Queen of Nails involves several key aspects:

1. Equipment Maintenance and Repair: Regular maintenance of nail care

equipment is crucial to ensure optimal performance and longevity. This includes

nail drills, UV lamps for curing gel polish, manicure and pedicure stations,

sterilizers for tools, and other machinery. Technicians conduct routine checks,

cleanings, and minor repairs as needed. For major repairs or replacements,

professional technicians or specialized service providers may be engaged.

2. Utilities: Queen of Nails utilizes various utilities to support its operations.

Electricity powers equipment such as nail drills, UV lamps, and salon lighting.

Water is essential for manicures, pedicures, and cleaning purposes. Gas or

electric heating may be used for hot towel treatments or foot baths. The salon

ensures efficient use of utilities to minimize costs and environmental impact.

3. Cleaning and Sanitation: Hygiene and sanitation are paramount in a nail salon

to maintain a safe and healthy environment for clients and staff. Cleaning

procedures include disinfecting tools and surfaces between clients, washing

towels and linens, and regularly sanitizing floors and furniture. Sterilization

equipment like autoclaves or UV sterilizers may be used for tools that require

high-level disinfection.

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By prioritizing equipment maintenance, efficient utility usage, and rigorous

cleaning and sanitation protocols, Queen of Nails upholds high standards of

quality and safety in its manufacturing process.

Queen of Nails exemplifies a strategic and meticulous approach to various

aspects of its operations. The salon emphasis on labor cost management is

evident through its careful allocation of salaries and commitment to fair

compensation. By maintaining an optimal balance between the number of

workers, their wages, and production targets, Queen of Nails ensures efficient

operations while controlling expenses. The salon recognizes the value and

expertise of its skilled nail technician, receptionist and managers. This dedication

to fair compensation fosters a motivated workforce, contributing to the salon

overall success.

In terms of materials, Queen of Nails demonstrates a systematic approach

to procurement and cost management. The passage outlines the projected

quantities and costs for essential items. By accurately estimating the monthly

materials costs, the salon ensure a steady supplies of materials necessary for its

daily operations. This meticulous approach to material procurement allows

Queen of Nails to maintain product quality while effectively managing expenses,

ultimately contributing to the salon profitability and sustainability.

Queen of Nails commitment to operational excellence extends beyond

labor and materials. The passage mentions the importance of equipment

maintenance and repair, utilities, and cleaning/sanitation processes. By investing

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in the maintenance and servicing of salon equipment, sandwich-making

equipment, and other machinery, the salon ensures their proper functioning,

minimizing downtime and disruptions. The allocation of expenses for utilities,

such as electricity, demonstrates the salon understanding of the necessary

resources for operating its equipment and facilities. Additionally, Queen of Nails

priorities hygiene standards through the allocation of costs for cleaning supplies,

sanitation processes, and waste disposal. These measures collectively contribute

to a smooth manufacturing process and the delivery of high-quality culinary

experiences to customers.

Overall, Queen of Nails strategic approach to labor cost management,

material procurement, and overall operational processes allows it to maintain

efficient operations, deliver high-quality products, and remain competitive in the

market. The salon commitment to fair compensation fosters a motivated

workplace. Additionally, the salon investment in equipment maintenance, utilities,

and cleaning/sanitation processes contributes to optimal production standards.

Through these measures, Queen of Nails embodies a dedication to profitability,

sustainability, and customer satisfaction.

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 OPERATIONAL PLAN

This presents the evaluation of supplies, material requisition and receiving

procedure, storage and inventory control system, and function and support

services.

1. Evaluation of Suppliers

Evaluating suppliers is crucial for Queen of Nails to ensure consistent quality,

timely delivery, and cost-effectiveness.

1. Quality of Products: Suppliers must provide high-quality nail care products,

including polishes, tools, sanitizers, and disposables. Quality assurance

processes, certifications, and customer feedback can indicate the reliability of

suppliers in delivering superior products.

2. Reliability and Timeliness: Suppliers should demonstrate reliability in meeting

deadlines and fulfilling orders promptly. On-time delivery is essential to maintain

inventory levels and meet customer demands without delays.

3. Cost and Pricing: Competitive pricing is important, but it should align with the

quality of products and services offered. Transparent pricing structures, discounts

for bulk purchases, and cost-saving initiatives benefit Queen of Nails in

managing expenses effectively.

4. Supplier Reputation: Investigating suppliers' reputations through industry

reputation, client testimonials, and reviews can provide insights into their

reliability, customer service, and ethical practices.

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5. Customer Support: A supplier's responsiveness, willingness to address issues

or concerns, and effective communication channels contribute to a positive

business relationship. Proactive customer support enhances collaboration and

resolves issues promptly.

6. Sustainability Practices: Suppliers committed to sustainable practices, such as

eco-friendly packaging, ethical sourcing, and waste reduction, align with Queen

of Nails' values and contribute to environmental responsibility.

7. Financial Stability: Evaluating suppliers' financial stability ensures they can

sustain their operations, invest in quality improvements, and maintain

consistency in product availability and service levels.

By evaluating suppliers based on these criteria, Queen of Nails can forge

partnerships that support its commitment to quality, efficiency, sustainability, and

customer satisfaction in the nail care industry.

2. Material Requisition and Receiving Procedure

At Queen of Nails, the material requisition and receiving procedure are

integral to efficient inventory management and quality control. The process

begins with salon staff, including nail technicians and managers, identifying

material needs based on service demands and existing stock levels. A

standardized requisition form is then used to document these requirements,

specifying quantities, descriptions, and any special instructions. This form

undergoes an approval process, where it is submitted to the designated authority,

typically the salon manager or procurement officer, to ensure alignment with

budgetary constraints and operational needs.

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 Once materials are requisitioned and approved, the procurement team

engages with suppliers to place orders, negotiate pricing, and confirm delivery

schedules. Order confirmations received from suppliers are meticulously verified

against the requisition form to ensure accuracy regarding quantities, prices,

delivery dates, and terms of supply.

Upon material delivery, designated staff conduct a thorough inspection to

check for quantity accuracy, quality standards, and adherence to specifications

outlined in the order confirmation. This includes checking for defects, expiration

dates (if applicable), and proper packaging. A detailed receiving report is then

prepared, documenting the received materials' details, supplier information, and

any discrepancies noted during inspection.

The approved materials are subsequently stored in designated inventory

locations, organized for efficient retrieval during service delivery. Inventory

management systems are updated with data from the receiving report, facilitating

real-time tracking of stock levels, usage patterns, and reordering when inventory

reaches predefined thresholds. Throughout this process, effective communication

channels ensure relevant stakeholders are informed of material receipts,

inventory updates, and any issues requiring attention or follow-up.

By adhering to this meticulous material requisition and receiving

procedure, Queen of Nails maintains a seamless flow of high-quality materials,

optimal inventory levels, cost control, and adherence to stringent quality

standards in delivering exceptional nail care services.

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3. Storage and Inventory Control System

Queen of Nails employs a comprehensive storage and inventory

control system to efficiently manage its nail salon operations. Within the salon,

materials and products are organized into categories such as nail polishes, tools,

sanitizers, disposables, and accessories, each allocated to designated storage

areas with clear labeling for easy identification and retrieval. Safety measures are

in place to ensure hazardous materials are stored according to regulations,

prioritizing a safe working environment.

The salon leverages inventory management software integrated with

barcoding or tagging systems to track stock levels, monitor usage patterns, and

generate actionable reports for informed decision-making. Reorder points are

established for each material category, triggering automatic replenishment orders

when inventory falls below predefined thresholds. Regular inventory audits

reconcile physical counts with system records, ensuring accuracy and

addressing discrepancies promptly.

To optimize inventory, Queen of Nails utilizes demand forecasting based

on historical data and trends, maintains strong supplier relationships for timely

deliveries and favorable terms, and implements waste reduction strategies by

avoiding overstock situations and using perishable items efficiently. Staff

members are trained on inventory management protocols, with clear roles and

accountability to uphold established procedures.

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 This robust storage and inventory control system not only optimizes

resource utilization and reduces costs but also minimizes stock shortages,

enhances service delivery standards, and fosters a well-organized and efficient

operational environment at Queen of Nails.

4. Function and Support Services

Function and support services play a crucial role in ensuring the smooth

operation and customer satisfaction at Queen of Nails

1. Nail Care Services:

- Manicures and Pedicures: Offering a range of manicure and pedicure

services, including basic treatments, gel polish applications, nail extensions, nail

art, and spa treatments.

- Nail Enhancements: Providing nail enhancements such as acrylic nails, gel

nails, and nail extensions to fulfill client preferences and style choices.

- Nail Art: Skilled nail technicians create customized nail art designs,

incorporating trends, colors, and themes based on client preferences.

2. Customer Support:

- Appointment Management: Efficient appointment scheduling and

management to accommodate client preferences, avoid waiting times, and

maximize salon capacity.

- Client Consultations: Personalized consultations to understand client needs,

recommend suitable services, and ensure a positive salon experience.

- Feedback Mechanisms: Soliciting client feedback and suggestions to improve

service quality, address concerns, and enhance overall customer satisfaction.

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3. Sanitation and Hygiene:

- Sterilization Protocols: Strict adherence to sterilization protocols for tools,

equipment, and workstations to maintain a clean and hygienic environment.

- Disposable Supplies: Utilization of disposable supplies where appropriate to

minimize cross-contamination and ensure client safety.

- Sanitation Practices: Regular sanitation of surfaces, equipment, and common

areas to prevent the spread of germs and promote a healthy salon environment.

4. Staff Training and Development:

- Skill Enhancement: Continuous training and development programs for staff

to enhance technical skills, stay updated with industry trends, and deliver quality

services.

- Customer Service Training: Training sessions focused on customer service

excellence, communication skills, and handling client inquiries or concerns

professionally.

5. Retail Products and Upselling:

- Product Offerings: Retailing high-quality nail care products, including polishes,

treatments, and accessories, for client convenience and home care maintenance.

- Upselling Opportunities: Identifying upselling opportunities during client

interactions to promote additional services or products that complement their

preferences and enhance their salon experience.

6. Salon Ambiance and Comfort:

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 - Ambiance: Creating a welcoming and relaxing ambiance with elegant decor,

soothing color schemes, comfortable seating, and subtle lighting to enhance the

overall salon experience.

- Comfort Amenities: Offering amenities such as refreshments, magazines, Wi-

Fi access, and entertainment options to ensure client comfort and satisfaction

during their visit.

These functions and support services collectively contribute to Queen of

Nails' reputation for quality nail care, exceptional customer service, hygiene

standards, staff professionalism, and a welcoming salon atmosphere.

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 MARKETING PLAN

This section outlines the product, place price, promotion, people, designs,

and positioning.

1. Product:

Queen of Nails takes pride in offering a diverse range of high-quality nail

care products and services to cater to the unique preferences and needs of its

clients. Our product lineup includes an array of nail care services such as

manicures, pedicures, gel polish applications, nail enhancements like extensions

and acrylic nails, and creative nail art designs that reflect the latest trends and

client preferences.

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 In complementing our services, we retail a selection of premium nail care

products including nail polishes in a wide range of colors and finishes, nail

treatments for strength and hydration, and an assortment of nail care accessories

for at-home maintenance. These retail offerings not only enhance the longevity

and beauty of our clients' nails but also empower them to maintain their nail

health between salon visits.

By combining professional expertise with top-notch products, Queen of

Nails ensures that every client receives a personalized and exceptional nail care

experience, positioning us as a go-to destination for quality nail services and

products in our market.

4. Place:

Queen of Nails strategically selects a location in the 93 Osmeña Street in

Cebu City, Central Visayas, Philippines. The location is carefully chosen to

provide convenience and accessibility to clients in the bustling city center. Cebu

City, known for its vibrant culture and lifestyle, offers a diverse clientele seeking

quality nail care services in a sophisticated environment.

The salon's physical space is designed to reflect its commitment to luxury

and relaxation. Upon entering, clients are greeted by an elegant and inviting

atmosphere created by the carefully curated interior design. The layout features

spacious and comfortable seating areas adorned with plush furnishings,

contributing to a sense of comfort and indulgence. The color schemes are

45
chosen to be soothing and calming, enhancing the overall ambiance and

promoting a tranquil experience.

Subtle lighting fixtures add to the ambiance, creating a warm and

welcoming environment that encourages relaxation. Attention to detail is evident

in every aspect of the salon, from the decor to the layout, ensuring that each

client feels pampered and cared for during their visit.

Overall, Queen of Nails' place is designed to be more than just a nail

salon; it's a sanctuary where clients can escape the hustle and bustle of daily life

and immerse themselves in a premium spa-like experience focused on beauty,

relaxation, and rejuvenation.

3. Price:

Queen of Nails adopts a pricing strategy that focuses on offering good

value for money. The prices are set at a reasonable level to appeal to a broad

customer base, including students and individuals on a budget, while still

ensuring profitability for the business. By providing customers with affordable

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options without compromising on quality, Queen of Nails aims to establish itself

as an accessible and reliable choice for nails designs enthusiasts. This pricing

approach also helps to attract new customers and encourages repeat visits, as

customers recognize the quality they receive at a fair price.

4. Promotion:

Queen of Nails employs a multi-faceted promotional approach to create

awareness and attract customers. Social media platforms play a crucial role in

the salon’s marketing strategy. Engaging and visually appealing content is

created to showcase the salon’s products, atmosphere, and unique offerings.

Through platforms like Instagram, facebook, and twitter Queen of Nails shares

enticing image of its nail designs, captivating captions, and updates on

promotions or events. By levering the power of social media, the salon aims to

reach a wider audience and engage with potential customers.

In addition to social media, Queen of Nails implements promotional offers

to entice customers. These promotions include special discounts on services

during specific periods, such as holidays or salon anniversaries. The salon also

offers referral discounts, where existing clients can receive benefits for referring

new customers. Furthermore, Queen of Nails participates in local events and

collaborates with influencers or bloggers to expand its reach and attract new

clients.

Moreover, Queen of Nails prioritizes customer loyalty through a rewards

program. Regular clients earn points for each visit or purchase, which can be

47
 redeemed for discounts or complimentary services. This incentivizes repeat

business and fosters long-term relationships with clients.

Overall, Queen of Nails’ promotional strategies are designed to create

buzz, drive foot traffic, reward loyalty, and ultimately, position the salon as a

premier destination for quality nail care services in the market.

5. People:

Queen of Nails targets a diverse range of customers, including fashion-

forward individuals seeking the latest trends in nail art and designs, beauty

enthusiasts focused on self-care and grooming, busy professionals valuing

convenience and quality services, special occasion clients looking for elegant nail

styles for events, spa lovers seeking relaxation and rejuvenation, and social

media influencers who can amplify the salon's brand presence. By catering to

these distinct customer segments, Queen of Nails aims to provide a personalized

and luxurious experience, offering top-notch nail care services, innovative

designs, premium products, and a tranquil salon ambiance that aligns with the

preferences and lifestyles of its clients.

6. Designs

Queen of Nails offers a diverse range of nail designs to cater to various tastes

and preferences. Here are some of the design options available:

1. Classic and Timeless Designs: Elegant and understated designs such as

French tips, nude nails, and classic red or pink manicures that never go out of

style.

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2. Trendy and Fashionable Designs: Current and trendy designs inspired by the

latest fashion trends, including ombre nails, geometric patterns, metallic finishes,

and matte nail art.

3. Artistic and Creative Designs: Intricate and artistic nail designs such as floral

patterns, abstract art, intricate lace designs, and 3D nail art using

embellishments like rhinestones, pearls, and studs.

4. Seasonal and Holiday Designs: Special designs tailored for different seasons

and holidays, including festive themes like Christmas nail art, Halloween-inspired

designs, and summer-themed nail art with vibrant colors and beach motifs.

5. Customized and Personalized Designs: Tailored designs based on client

preferences, allowing for personalized touches, initials, names, or specific

themes chosen by the client for a unique and customized nail look.

6. Minimalist and Chic Designs: Clean and minimalist nail art with subtle accents,

negative space designs, and minimalist nail patterns for a chic and sophisticated

appearance.

Queen of Nails' skilled nail technicians are proficient in creating a wide range of

designs, ensuring that clients can express their individual style, follow current

trends, or opt for timeless elegance, all while receiving professional and creative

nail care services.

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50
7. Positioning

Queen of Nails positions itself as a premier destination for discerning

clients seeking an elevated nail care experience. The salon's positioning is

characterized by several key elements:

1. Quality and Expertise: Queen of Nails prides itself on delivering top-notch nail

care services executed by skilled professionals. The salon's nail technicians are

trained in various techniques and stay updated with industry trends, ensuring

clients receive high-quality and expertly executed nail designs.

2. Luxurious Ambiance: The salon's sophisticated and inviting atmosphere sets it

apart as a luxurious retreat for clients. From elegant furnishings to soothing color

schemes and subtle lighting, every detail is curated to create a calming and

upscale ambiance.

3. Personalized Service: Queen of Nails prioritizes personalized consultations to

understand each client's preferences, style, and nail care needs. This

personalized approach ensures that every client receives tailored

recommendations and customized nail designs for a truly individualized

experience.

4. Premium Products: The salon uses premium nail care products, including

high-quality polishes, treatments, and accessories, to deliver exceptional results

and ensure long-lasting nail health and beauty.

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5. Customer Satisfaction: Queen of Nails places a strong emphasis on customer

satisfaction, going above and beyond to exceed client expectations. From

attentive service to meticulous attention to detail, the salon strives to create a

positive and memorable experience for every client.

By positioning itself as a provider of top-tier nail care services in a

luxurious setting, Queen of Nails aims to attract clients who value quality,

expertise, personalized attention, and a premium salon experience.

52
 FINANCIAL PLAN

It provides a comprehensive overview of the business’s financial health,

goals and strategies to achieve them. The financial plan outlines the major

assumptions, projected statement of comprehensive income, cash flows, change

in equity, financial statement, and the financial statement analysis.

1. Major Assumptions

The financial plan for Queen of Nails encompasses a strategic overview of

the business's fiscal health, goals, and the methods to achieve them. Key

assumptions include a targeted increase in the customer base by 20% within the

initial year of operations, reflecting a proactive approach towards growth and

market expansion. This growth projection underscores the company's focus on

capturing market share and building a loyal clientele.

The projected statement of comprehensive income outlines expected

revenues, expenses, and net income, providing a clear picture of the business's

financial performance. Cash flow projections detail the inflows and outflows of

cash, ensuring adequate liquidity for day-to-day operations and strategic

investments. Changes in equity track how investments, profits, and other factors

impact the ownership structure of the business over time.

Financial statements, including balance sheets and income statements,

offer a snapshot of the company's financial health at specific points in time.

These statements are crucial for assessing profitability, solvency, and overall

financial stability. Additionally, financial statement analysis involves evaluating

53
key financial ratios, trends, and benchmarks to assess performance, identify

areas for improvement, and make informed financial decisions.

The line graph below illustrates the projected yearly profit for Queen of

Nails over a three-year period. As per the assumptions stated earlier, we

anticipate a steady growth in revenue, resulting in an increasing trend of profits

each year. However, it is important to note that unforeseen circumstances or

changes in market conditions may impact the actual financial performance.

Year 2035-2038

The graph demonstrates a positive trajectory in Quenn of Nails yearly profits. In

the first year, the salon expects to generate a profit of, the salon expects to

generate a profit of ₱4,800,000. As the business gains traction and expands its

54
customer base, the profit is projected to increase to ₱5,760,000 in the second

year and ₱6,912,000 in the third year.

These figures indicate a healthy growth rate a positive financial outlook for

Queen of Nails.

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56
 The bar graph above illustrates the monthly profit, monthly expenses, and

yearly expenses for Queen of Nails. This graphical representation allows us to

analyze the fluctuations and trends in salon financial performance on monthly

basis.

The bar graphs highlight the monthly profitability of Queen of Nails along

with its corresponding monthly and yearly expenses. The monthly profit varies

throughout the year, influenced by factors such as seasonality and consumer

spending patterns. The salon monthly expenses remain relatively stable, with

occasional fluctuations due to factors like inventory replenishment or

maintenance costs. Yearly expenses over the course of each year.

57
 These visual provide a comprehensive overview of Queen of Nails

financial performance, indicating the periods of higher profitability and the

associated expenses. By closely monitoring these metrics, the salon can make

informed decisions regarding pricing, cost control measures, and investment

strategies to minimize its profitability and ensure long-term sustainability.

58
2. Projected Statement of Comprehensive Income

Queen of Nails

Projected Statements of Profit or Loss

For the Year Ending December 31, 2038

Year 1 Year 2 Year 3

Net Sales PHP 4,800,000 PHP 5,760,000 PHP 6,912,000

Cost of PHP 2,880,000 PHP 3,456,000 PHP 4,147,200

Sales

Gross Profit PHP 1,920,000 PHP 2,304,000 PHP 2,764,800

Operating PHP 1,440,000 PHP 1,728,000 PHP 2,073,600

Expenses

Operating PHP 480,000 PHP 576,000 PHP 691,200

Income

Interest PHP 20,000 PHP 20,000 PHP 20,000

Expense

Income PHP 460,000 PHP 556,000 PHP 671,200

Before Taxes

Taxes PHP 92,000 PHP 111,200 PHP 134,240

Net Income PHP 368,000 PHP 444,800 PHP 536,960

3. Projected Statement of Cash Flows

59
 Queen of Nails

Projected Statements of Cash Flows

For the Year Ending 2035-2038

Cash Flows Year 1 Year 2 Year 3

Operating

Activities

Net Income PHP 368,000 PHP 444,800 PHP 536, 960

Depreciation and PHP 50,000 PHP 50,000 PHP 50, 000

Amort.

Changes in - - -

Working Capital

Increase in Acc. PHP 10,000 PHP 12,000 PHP 14,000

Receivable

Increase in PHP 8,000 PHP 9,600 PHP 11,520

Inventory

Increase in Acc. PHP 5,000 PHP 6,000 PHP7,200

Payable

Net Cash from PHP 441, 000 PHP 522,400 PHP620,080

Operations

Investing - - -

Activities

Purchase of PHP 30, 000 PHP 30,000 PHP 30,000

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 Equipment

Net cash from PHP 30, 000 PHP 30,000 PHP 30,000

Investing

Financing - - -

Activities

Loan PHP 20,000 PHP 20,000 PHP 20,000

Repayments

Net Cash from PHP 20,000 PHP 20,000 PHP 20,000

Financing

Net Increase in PHP 391,000 PHP 472,400 PHP 570,080

Cash

Beginning Cash PHP 0 PHP391,000 PHP 863,400

Balance

Ending Cash PHP 391,000 PHP 863,400 PHP 1,433,480

Balance

4. Projected Statements of Financial Statement

Queen of Nails

Projected Statements of Financial Statement

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 For the Year Ending 2035-2038

Assets Year 1 Year 2 Year 3

Current Assets - - -

Cash and Cash PHP 391,000 PHP 863,400 PHP 1,433,480

Equivalents

Accounts PHP10,0000 PHP 12,000 PHP 14,000

receivable

Inventory PHP 8,000 PHP 9,600 PHP 11,520

Total Current PHP 409,000 PHP 885,000 PHP 1,459,400

Assets

Property, Plant, - - -

and Equipment

Equipment PHP 90,000 PHP 90,000 PHP 90,000

Accumulated PHP 50,000 PHP 100,000 PHP 150,000

Depreciation

Total Property, PHP 40,000 PHP 10,000 PHP 60,000

Plant, and

Equipment

Total Assets PHP 449,000 PHP 875,000 PHP 1,399,400

- - - -

Liabilities and Year 1 Year 2 Year 3

Equity

Current Liabilities

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Accounts Payable PHP 5,000 PHP 6,000 PHP 7,200

Total Current PHP 5,000 PHP 6,000 PHP 7,200

Liabilities

Long-term - - -

Liabilities

Bank Loan PHP 20,000 PHP 20,000 PHP 20,000

Total Long-term PHP 20,000 PHP 20,000 PHP 20,000

Liabilities

Equity

Owner’s Equity PHP 424,000 PHP 849,000 PHP 1,372,200

Total Liabilities PHP 449,000 PHP 875,000 PHP 1,399,400

and Equity

63
5. Financial Statement Analysis

Projected Statement of Comprehensive Income

The projected statement of comprehensive income for Queen of Nails

serves the purpose of outlining the expected financial performance of the

business over a three-year period ending December 31, 2038. It provides a

detailed breakdown of key financial metrics such as net sales, cost of sales,

gross profit, operating expenses, operating income, interest expenses, income

before taxes, taxes, and net income. By presenting these projections, Queen of

Nails aims to assess and communicate its anticipated revenue generation,

profitability, cost management strategies, and overall financial health to

stakeholders, including investors, lenders, and internal management. This

statement serves as a strategic tool for decision-making, financial planning, and

performance evaluation, guiding the business towards its long-term goals and

objectives within the nail salon industry.

Queen of Nails projects its financial performance over three years,

culminating in significant growth. In Year 1, it anticipates net sales of PHP

4,800,000, generating a gross profit of PHP 1,920,000 after accounting for the

cost of sales at PHP 2,880,000. Operating expenses of PHP 1,440,000 result in

an operating income of PHP 480,000. Interest expenses of PHP 20,000 lead to

an income before taxes of PHP 460,000, with taxes amounting to PHP 92,000

and net income reaching PHP 368,000. Year 2 shows an increase across the

board, with net sales rising to PHP 5,760,000 and net income improving to PHP

444,800. Year 3 demonstrates continued growth, with net sales projected at PHP

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6,912,000 and net income reaching PHP 536,960. These projections reflect

Queen of Nails' successful revenue generation, prudent cost management, and

sustainable profitability over the forecast period, showcasing its potential for long-

term financial viability and success in the nail salon industry.

Projected Statement of Cash Flows

The purpose of the projected statement of cash flows for Queen of Nails,

spanning the years ending 2035 to 2038, is to provide a comprehensive overview

of the company's expected cash inflows and outflows from various activities. This

statement aims to assess Queen of Nails' ability to generate cash from its core

operations, manage working capital efficiently, make strategic investments in

equipment, and handle financing activities such as loan repayments. By detailing

these cash movements, the statement helps stakeholders, including investors,

creditors, and management, understand how Queen of Nails plans to utilize its

cash resources, maintain liquidity, fund growth initiatives, and meet financial

obligations during the specified period. It serves as a vital tool for financial

planning, decision-making, and monitoring Queen of Nails' cash position and

cash flow dynamics over time.

The projected statement of cash flows for Queen of Nails, covering the

years ending 2035 to 2038, provides a detailed overview of the company's

expected cash inflows and outflows from operating, investing, and financing

activities. In the operating activities section, net income is projected to be PHP

368,000 in Year 1, increasing to PHP 444,800 in Year 2, and further to PHP

536,960 in Year 3. Depreciation and amortization expenses are estimated at PHP

65
50,000 for each year. Changes in working capital, including increases in

accounts receivable, inventory, and accounts payable, contribute to the net cash

from operations, which is projected at PHP 441,000 in Year 1, PHP 522,400 in

Year 2, and PHP 620,080 in Year 3.

In the investing activities section, Queen of Nails plans to invest PHP

30,000 each year in purchasing equipment, resulting in a net cash outflow of

PHP 30,000 from investing activities annually.

The financing activities section shows loan repayments of PHP 20,000

per year, resulting in a net cash outflow of PHP 20,000 from financing activities

annually.

The net increase in cash is projected to be PHP 391,000 in Year 1, PHP

472,400 in Year 2, and PHP 570,080 in Year 3. This leads to an ending cash

balance of PHP 391,000 in Year 1, PHP 863,400 in Year 2, and PHP 1,433,480 in

Year 3, reflecting Queen of Nails' expected cash position and liquidity over the

forecasted period.

Projected Statement of Financial Position

The purpose of the projected statements of financial position for Queen of

Nails, covering the years 2035 to 2038, is to provide a comprehensive overview

of the company's expected financial standing during this period. These

statements break down the assets, liabilities, and equity of Queen of Nails,

offering insights into its financial health, growth trajectory, and capital structure.

The current assets section outlines the liquidity of the company, including cash

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and cash equivalents, accounts receivable, and inventory, which are crucial for

day-to-day operations and managing short-term obligations. The property, plant,

and equipment section detail the company's long-term assets, such as

equipment and accumulated depreciation, indicating its investment in productive

resources and the impact of asset depreciation over time.

In Year 1, Queen of Nails anticipates total assets of PHP 449,000,

including PHP 409,000 in current assets and PHP 40,000 in property, plant, and

equipment. This is supported by PHP 5,000 in current liabilities and PHP 20,000

in long-term liabilities, leaving PHP 424,000 in owner's equity. Year 2 shows

significant growth with total assets increasing to PHP 875,000, driven by higher

current assets and a slight decrease in property, plant, and equipment. Current

liabilities rise to PHP 6,000, long-term liabilities remain steady at PHP 20,000,

and owner's equity grows to PHP 849,000. By Year 3, Queen of Nails projects

total assets of PHP 1,399,400, mainly attributed to a substantial increase in

current assets to PHP 1,459,400, reflecting potential business expansion and

improved liquidity. Liabilities and equity maintain a stable trend, with owner's

equity reaching PHP 1,372,200, indicating sustained profitability and value

creation.

Overall, the projected statement of financial position for Queen of Nails

demonstrates the expected growth and financial stability of the business over the

next three years. It highlights the anticipated increase in assets, driven by

improvements in cash flows, receivables, and inventory management.

Additionally, the statement emphasizes the salon’s commitment to maintaining a

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strong equity position, with retained earnings playing a significant role. These

projected provide valuable information for stakeholders, potential inventors, and

management to assess the financial health and prospects of Queen of Nails.

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