”Cut and Fun…All in 1”

EXECUTIVE SUMMARY

Most of us hated getting a hair cut in their childhood. We had to go to the old guy who used to

cut dad's hair. Over the years we've seen plenty of little boys being dragged into the barbershop

by their mom or dad, their parents holding them down in the chair while the kids kick, cry and

scream to stay away from the rude barber. Getting a child’s hair cut can therefore be a

challenging task difficult but not impossible to accomplish. If we look around, there are many

salons established for catering the grooming needs of males and females but the children

segment is ignored in this regard. There are no such barbershops or hair salons specially made

for the kids in Islamabad or even in Pakistan, keeping this opportunity in mind, we are coming

up with the first ever kids salon in Pakistan by the name of “Tiny Clippers”.

Tiny Clippers will be a kids themed hair salon, featuring child friendly environment being

provided by the mix of specially trained kid-friendly employees, whimsical furniture, child

attracting fittings, play place, special scissors and a great ambiance. The styling chairs will

feature cartoons, cars and animal patterns on them, the mirrors in front of chairs will have LCD

monitors fitted into them attached to gaming consoles on which the kids can either play video

games or watch cartoons while getting their hair clipped. The waiting area will features a play

place where the kids waiting for their turn can enjoy and get entertained.

Tiny Clippers will be a privately held company. It will be based on general partnership between

six legal partners M. Bakir Hassan, Mr. Ahmed Ali Malik, Mr. Saim Ali Shah, and Mr.Usman

Khalid. All of them will be the owners of Tiny Clippers with equal liability and profit share.

Tiny Clippers will be located at Sector F-6 shop No. 22 Super Market. The premises will be a

rented property of 600 sq-ft with the monthly rent of PKR 55,000. Our strategic partners will

include Beau Tek, Trend International, New Era Furnitures, Mc Donald’s and Wikkid Plus.

There is no direct competition for Tiny Clippers in the market. There are no kids’ themed salons

in Islamabad or anywhere in Pakistan. On the other hand substitutes include the small size barber

shops opened on small streets across the city. Being the pioneer in kids’ salon Tiny Clippers has

to compete for market share with its indirect competitors which includes both good women’s and

men’s salons in Islamabad operating on moderate scale like; Trim Time, G.Q, Smarts, John 2,

Prince, Anumeeka, Cuts, Newlook, Godeon, and etc.

Tiny Clippers will be the first of its kind in the market specializing in the kids therefore it will be

the trend setter rather than being a trend follower. It will be bringing continuous innovation to

the services and products sold which will be the key to sustain the competitive advantage since it

won’t be easily duplicated, substituted or imitated. The location would play a major role since

it’s the only factor which if planned properly can result in a competitive advantage that cannot be

Imitated and copied by the other competitors. The employees will lead to a competitive

advantage that will be sustainable and hence not imitate able by anyone easily.

Our target market will include the parents living in the areas of F10, F11, E11 E9, F6 and F7 in

the city Islamabad with kids belong to the ages from 2 months to 13 yrs, both males and females.

Our total budgetof our project is 40 million. To monitor and control the actions in order to

implement the marketing plan, every possible step is taken in order to ensure “A Strong Brand

with A Strong Following”.

The closing of this project will be done when the first day of Tiny Clippers will start giving there

services to the customers.

PROJECT CHARTER

Tiny Clippers

Project Name: Tiny Clippers (kids’ salon)

Prepared by: Saim Ali Shah

Date: 12/10/2010

INITIATION:

Tiny Clippers (kids’ salon)

Provide Plan for tiny clippers kids’ saloon.

Project Manager: Saim Ali Shah

SYNOPSIS: Built to target the market niche for good quality hair cut for kids on weekly or monthly basis. Targeting the Islamabad market and providing the benefit of an untargeted niche which is still untapped. It is not only a small investment but has the potential to provide huge returns. This proposal, along with drafts of related documents, will be used by management to determine whether or not to approve work on this project. A clear and precise project plan helps set expectations that will be used later to evaluate the success of the project.

PURPOSE/ BUSINESS

NEED:

Most of us hated getting a hair cut in their childhood. We had to go to the old guy who used to cut dad's hair. Over the years we've seen plenty of little boys being dragged into the barbershop by their mom or dad, their parents holding them down in the chair while the kids kick, cry and scream to stay away from the rude barber. Getting a child’s hair cut can therefore be a challenging task difficult but not impossible to accomplish. If we look around, there are many salons established for catering the grooming needs of males and females but the children segment is ignored in this regard. There are no such barbershops or hair salons specially made for the kids in Islamabad or even in Pakistan, keeping this opportunity in mind, we are coming up with the first ever kids salon in Pakistan by the name of “Tiny Clippers”.

SCOPE STATEMENT:

Tiny Clippers, wants to be the pioneer of specialized kids’ hair salon aims to provide the best of haircutting and styling experience to our customers i.e., the kids and their parents.

SERVICE DESCRIPTION

A better hair cutting saloon for kids would be valuable because it could greatly increase customer satisfaction and less time searching for the right hair cutting saloon. Introducing a high quality service that will increase the customer satisfaction. The benefit to us could come in the form of selling our services at not very high price between the hair saloons for aged people and the barber shops on the street side price increasing satisfaction and awareness and then to enhance it beyond Islamabad and to other cities.

PROJECT MANAGEMENT

Project Management processes according to the standards and methodology set forth in the Project Management Institutes' Body of Knowledge will be used to manage the process of making a hair cutting saloon for the kids. The Project Management Plan (PMP) will include the following elements:

· Project Charter

· Description of the Project Management (PM) approach

· Scope statement

· Work Breakdown Structure

· Cost estimates, start and finish dates, roles and responsibilities

· Performance measurements baselines for scope, schedule, and cost

· Major milestones and target dates for each

· Resources, effort, and related costs

· Plan Quality

· Develop human resource Plan

· Plan communications

· Identify risks

· Plan risk responses

· Plan Procurements

· Risk Management Plan

· Quality Management Plan

· Communications Management Plan

The project management plan is a living document that will be updated by the Project Manager. The plan will be executed and overall project performance evaluated on a regular basis to provide confidence that quality standards are being met. The project team will be developed to maximize skills and competencies to enhance project performance. Information will be disseminated to project stakeholders on a schedule outlined in the Communications Plan.

ASSUMPTIONS, CONSTRAINTS,

RISKS:

High level project risks and constraints include, but are not limited to

● Funding availability

● The best place to open a shop

· The schedule for this project is very short. We will manage this by planning a conservatively scoped functional core and series of functional enhancements that can be individually slipped to later releases if needed.

A detailed Risk Assessment is included in the PMP.

RESOURCES:

Project Resources:

Human Resources:

Skilled workers

Material and Services Resources:

Equipment

Financial Resources:

Labor: Rs 84000

Equipment: Hardware: Rs 3,714,875

CHANGE MANAGEMENT

All change requests will be documented, submitted to, and assessed by the Project Manager (PM) and Team Lead for impact and project necessity prior to PM approval. If change is approved, the project schedule, scope, and budget will be updated accordingly and communicated to appropriate stakeholders in accordance with the Communications Plan. The PM/project team will communicate the approved change and updated schedule to the staff responsible for implementing

the change.

PROJECT TEAM:

PROJECT TEAM ROLES AND RESPONSIBILITIES

Mr. Saim Ali Shah (PM): Plan, develop, and implement strategies for generating resources and/or revenues for the company.

Miss Sabahat Jamil (Marketing Manager): Manage and coordinate all marketing, advertising and promotional activities

Mr. Saqib Khan (HR Manager): Development of a superior workforce, recruiting and staffing

Mr. Hashim Sheikh (Finance Manager): Maintain day-to-day financial control

Mr. Zohaib Hassan Khan (Purchasing Manager): Search for the highest quality merchandise at the lowest possible purchase cost

Mr. Awais Akhtar (Artistic Manager): Active involvement in recruiting and interviewing potential staff, coordinate training

Customer and Contractor Managements' Project Team participation is important to provide clarification and guidance on any and all matters affecting the project team's ability to execute the project successfully.

APPROVAL(S): Project Manager: Saim Ali Shah

Date: 12-10-2010

Identify Stakeholders

Project charter:

Described above.

Procurement document:

We will be procuring different things through the following suppliers and we will also be forming business partnerships with our suppliers. This will be a contract agreement. Our suppliers include:

Beau Tek: For providing scissors and manicure productsTrend International: For providing all the cosmetics, shampoos and kids’ beauty productsNew Era Furniture: For providing us with Disney Furniture and other fittings

Detailed procurements are being described in the procurement plan.

Organizational process assets:

Culture:

The shop will have a child friendly environment where there will be specially trained kid-friendly stylists to groom the kids. The shop will feature whimsical furniture, LCD monitors inside the mirrors in front of every seat on which the kids can watch cartoons and play games while getting their hair trimmed, scissors and other cutting and styling tools with cartoon patterns on them, small play place for the kids in waiting and the stylist will be wearing special costumes to amuse the kids. All-in-all it will be a kid-friendly experience to an extreme.

The stylists will be specially trained to handle the kids in a proper way while cutting their hair and parents won’t have to stand there to calm the screaming child. This type of environment would induce kids to happily go for a haircut which has been a misery for the kids and the parents in the past. The best thing is once the kids will get a haircut in such an environment it would be hard to take them back home and they’ll be waiting eagerly for their next haircut. This is what we want the kids to feel like when they leave.

Structure:

Tiny Clippers will be a privately held company. It will be based on general partnership between six legal partners Mr. Saim Ali Shah, Miss Sabahat Jamil, Mr. Hashim Sheikh, Mr. Saqib Khan, Mr. Zohaib Hassan Khan and Mr. Awais Akhtar. All of them will be the owners of Tiny Clippers with equal liability and profit share. All the owners are the students of a business school majoring in different fields and therefore are well capable of handling such a business.

General Partnership Agreement will help us in settling issue on equal basis, since everyone will be equally liable and will get equal shares of the profit. There would be lesser conflicts and thus lesser threats to the partnership and this will aid in stable growth of Tiny Clippers.

Process:

Our process of providing the service is totally customer focused. We are committed towards our customers in providing them the service with complete convenience, comfort and according to their likings in an environment of excitement and joy.

In short, the process can be explained through the following flowchart:

The process of how a customer will be dealt with at Tiny Clippers can be explained by the following steps:

1. As soon as the customers will enter they will be greeted by the receptionist.

2. They will be allotted a customer number or in case of their pre-scheduled appointment the kid will be escorted to the hairdresser’s seat.

3. After receiving the customer number customers will be taken to the waiting area where the kids can enjoy board games, play with toys or play inside the play place.

4. The child caretakers in the waiting area will stay alert and keep observing the kids so that they don’t get into trouble or hurt themselves.

5. Upon coming of the turn the caretaker will take the kid to the hairdresser’s seat and provide the kid with a controller which will be used to watch the cartoons and play video games.

OUTPUT:

Stakeholder Register:

The main stakeholders for this project of making a hair saloon will be all the partners who have invested in this business. The list of the stakeholders for this project is as follows

1. Mr. Saim Ali Shah

2. Miss Sabahat Jamil

3. Mr. Hashim Sheikh

4. Mr. Saqib Khan

5. Mr. Zohaib Hassan Khan

6. Mr. Awais Akhtar

Stakeholder management strategy:

The partners in this business don’t have much experience in the practical field but with this opportunity, they are looking forward to utilize their knowledge in the management of their business. Each one of the member is responsible for the field he/she is capable of handling well. Hence the tasks are distributed among the partners keeping their abilities and knowledge about various aspects of the business in mind. So as the task has been distributed to them according to the knowledge the posses so there will be no misunderstanding between the partners. Also as the project stakeholders are the six legal partners so each member has the right to know that what is the position of the project and how is the project going so after 2 weeks there will be a meting in which each of the member has to give a report on the task allotted to him. In this way if the project is going well decision can be made to make it right and also the rights of the stakeholders will be kept as each and everything will be happening in front of them.

Planning Process Group

Scope:

Project scope management includes the processes required to ensure that the project includes all the work required and only the work required to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling what is and is not included in the project. Following are some steps involved in the scope management process.

· Scope statement· Collection of project requirement· WBS

Scope statement:

Tiny Clippers, wants to be the pioneer of specialized kids’ hair salon aims to provide the best of

haircutting and styling experience to our customers i.e., the kids and their parents.

Opportunity:

Most of us hated getting a hair cut in their childhood. We had to go to the old guy who used to cut dad's hair. Over the years we've seen plenty of little boys being dragged into the barbershop by their mom or dad, their parents holding them down in the chair while the kids kick, cry and scream to stay away from the rude barber. Getting a child’s hair cut can therefore be a challenging task difficult but not impossible to accomplish. If we look around, there are many salons established for catering the grooming needs of males and females but the children segment is ignored in this regard. There are no such barbershops or hair salons specially made for the kids in Islamabad or even in Pakistan, keeping this opportunity in mind, we are coming up with the first ever kids salon in Pakistan by the name of “Tiny Clippers”.

Objectives:

Knowing that right goals and objectives lead to the ultimate success Tiny Clippers will have the following objectives:

• To provide quality in terms of haircuts, hairstyling and other kids’ grooming services that is there in the country.

• To reach break-even during the second quarter of 2012.

• To generate annual revenue between Rs. 3million to Rs. 4 million during 2011.

• To have branches in the cities Karachi and Lahore by the end of 2012.

• To attract at least 50% of the target market during the first year.

• To have more than 50 employees by the end of 2011.

• To keep the costs of hair care and other such products less than 35% of revenue.

Collection of project requirement:

The business is of opening a barbershop shop which specializes in haircuts for kids and other kids grooming services. The shop will feature whimsical furniture, LCD monitors inside the mirrors in front of every seat on which the kids can watch cartoons and play games while getting their hair trimmed, scissors and other cutting and styling tools with cartoon patterns on them, small play place for the kids in waiting and the stylist will be wearing special costumes to amuse the kids. All-in-all it will be a kid-friendly experience to an extreme.

Many organizations categorize requirements into project requirement and product requirement. Project requirement can include business requirements, project management requirement, delivery requirement etc. To make this project a success we need the following requirements

· A shop · Financing· Stakeholder register· Equipment· Skilled workers· Cosmetics· Furniture· Kid’s beauty products· Scissors· Manicure products· Interior designer· LCD monitors· Special costumes· Games DVD· Other fittings

Key Project stakeholders:

1. Mr. Saim Ali Shah

2. Miss Sabahat Jamil

3. Mr. Hashim Sheikh

4. Mr. Saqib Khan

5. Mr. Zohaib Hassan Khan

6. Mr. Awais Akhtar

Key Project Deliverables:

The key project deliverable in my project is the services of the hair cut that we will be giving to the kids. The main efforts and contributions in the opening of this kind of business in Pakistan include all the formation of status reports including the major parts in the designing of the shop. The project deliverables also include all the documentations of planning that will be provided to the stakeholders. It also includes status reports and meeting schedule reports.

Create WBS:

Refer to MS project doc.

Human Resource Plan

Management Team:

Managerial duties will be divided into the partners; Mr saim will be the project manager, Mr. Awais Akhtar will be managing the Artistic activities, Miss Sabahat Jamil will be handling Marketing activities, Mr. Muhammad Hashim will look after Financial issues, Mr. Zohaib Hassan Khan will be responsible for the Purchasing activities and Mr. Saqib Khan will be in charge of the HR activities.

The partners do not have much experience in the practical field but with this opportunity, they are looking forward to utilize their knowledge in the management of their business. Each one of the member is responsible for the field he/she is capable of handling well. Hence the tasks are distributed among the partners keeping their abilities and knowledge about various aspects of the business in mind. The responsibilities of each of the members are enlisted below:

Mr. Saim Ali Shah (PM)

• Responsible to communicate with higher management for project information.

• Responsible for the meeting time of that available for team members to discuss and develop project.

• Special rights in making final decisions if the team is unable to reach a decision.

• Encourage members to produce to their best ability.

• Manage and Coordinate the Project Activities.

• Submitting project reports on time.

• Research in the project areas.

• Assign appropriate tasks to members according to their responsibilities and ability.

• Ensure the program adhere to design specification.

• Final compilation of report.

Miss Sabahat Jamil (Marketing Manager):

1. Manage and coordinate all marketing, advertising and promotional activities

2. Use all forms of media and communication to build, maintain, manage and

increase/enhance the reputation and image

3. Conduct market research to determine market requirements for existing and future

services

4. Analysis of customer research, current market conditions and competitor information

5. Develop and implement marketing plans and projects for new and existing products

6. Manage the productivity of the marketing plans and projects

7. Monitor, review and report on all marketing activity and results

8. Determine and manage the marketing budget

9. Deliver marketing activity within agreed budget

10. Develop pricing strategy

11. Liaison with media and advertising

12. Analyzing potential partnership relations

13. Participate in staff meetings

Mr. Saqib Khan (HR Manager):

1. Development of a superior workforce

2. Recruiting and staffing

3. Hiring

4. Communication .

5. Performance Management

6. Employee orientation, development, and training

7. Policy Recommendation

8. Salary and Benefits

9. Team Building

10. Employee Relations

11. Employee safety, welfare, wellness and health

12. Quality Control

13. Develops and monitors an annual budget that includes Human Resources services,

employee recognition and administration

14. Participate in staff meetings

Mr. Hashim Sheikh (Finance Manager):

1. Maintain day-to-day financial control

2. Advise on the proper allocation of resources

3. Provide financial planning and analysis services

4. Assisting with drafting the budget

5. Providing monthly reports and analysis to the Director

6. Managing the internal audit procedures

7. Making payments and preparing staff payroll

8. Assisting with staff recruitment

9. Ensure that all finances are properly administered and monitored, including credit control

10. Develop and implement plans to enable the organization to achieve its financial

objectives

11. Establish and maintain effective working relationships with the CEO

12. Participate in staff meetings

Mr. Zohaib Hassan Khan (Purchasing Manager):

1. Search for the highest quality merchandise at the lowest possible purchase cost

2. Negotiating the lowest prices

3. Acquiring materials and parts needed

4. Establishing domestic and foreign suppliers

5. Studying sales records and inventory levels

6. Placing orders and checking shipment

7. Analyze market conditions

8. Assisting in the planning of sales promotions

9. Working with advertisers to create ad campaigns for newspapers, television and direct

mail

10. Visit the selling floor to make sure that all goods are displayed accurately

11. Ensure Quality of material received

12. Inspection

13. Participate in staff meetings

Mr. Awais Akhtar (Artistic Manager):

1. Active involvement in recruiting and interviewing potential staff

2. Coordinate training

3. Create and articulate programs in line with the Tiny Clippers artistic rationale, that

expresses the vision, mission and goals of Tiny Clippers

4. Facilitate the artistic vision of each product and service

5. Act as the Company spokesperson for the media

6. Facilitate the development of media skills within the company

7. Act creatively

8. Ensure innovation

9. Participate in staff meetings

PERSONNEL PLAN

Tiny Clippers will be organized and managed in a creative and innovative fashion to generate very high levels of customer satisfaction and to create a working environment beneficial to a personnel development and economic satisfaction for employees.

In the first few years, there will be limited number of employees. In the first 3 years, assumptions are that there will only be four hairstylists, baby sitter, a sweeper, a receptionist and part time nail, facial, and massage personnel until the business can build a reputation that will attract others to work here. There will also be a receptionist who will greet customers and receive payments for services and products. One sweeper will be appointed to ensure that the place is tidy all the time. Everyone but the receptionist and sweeper will be contract workers. Future

plans include the hiring of more hairstylists, barbers, shampoo technicians and massage therapists as the business expands.

The employees would be working from 10 am onwards till 10 pm. Training classes to help improve employee knowledge and skills will be conducted every month on a regular basis. This is so in order to help them find improved ways of interaction with the kids.

The personnel hired along with their job description are as follows:

1. Hair stylist: Preferably woman. Must have at least two or three years of experience. Must be able to provide customers with barbering services including cuts, shapes, trims, and tapers hair, using clippers, comb, blow-out gun, and scissors. Must be able to perform other tonsorial services, such as applying hairdressings or lotions, shampooing, , or styling hair, and massaging face, neck, or scalp. Must be specialized in styling or coloring hair. Must be able to use equipment such as rollers, curling and straightening irons, and color treatments. Must have a know how to perform various processes such as highlighting, frosting, or streaking hair. In addition, hairstylist must fit, shampoo, and style wigs and hairpieces. Must ensure quality in his/her work. Salary: Rs. 10,000

2. Facial and Massage Therapist: No experience required. Must know the basic skills for facial and massaging. Must ensure quality in his/her work. Salary: Rs. 6,000

3. Nail Specialist: Must have 1 year experience. Must be able to provide nail related services and grooming. Communicate service knowledge to the clients served. Must ensure quality in his/her work. Salary: Rs. 6,000

4. Receptionist: Must have completed high school. Require good communication skills. Must be able to understand and speak English. Must greet all clients and customers within the first 10 seconds with a smile. Make them feel welcomed and comfortable. Direct them to the waiting or salon area. All new clients must be given a menu and tour of the facilities. Handle all phone calls politely and professionally using your name when answering the call. Booking appointments. Taking client's name, phone number, and type of service. Repeat the time, day, and date of appointment to client. Confirming appointments. Appointments for the following day are to be confirmed by the end of the shift. Must have knowledge about all services offered and their prices. As a receptionist, you will be responsible for handling all financial transactions of clients. Proper maintenance of change in the cash drawer is expected. Maintenance of the reception area, waiting area, and display units are also responsibilities. Must ensure that the receipts are given to the customers when they leave. Also file any complaints that the customers may have. Salary: Rs.12,000

5. Baby Sitter: Preferably a female. Must have completed high school. Experienced candidates are preferred. Must be able to provide temporary custodial care of young children when the parents are not around. The care typically is on a part-time or an as-needed basis. The babysitter should possess the ability to respond to a crisis situation, communicate effectively with parents, and have some basic first aid skills. Ensure safety of kids at all point. Salary: Rs. 8,000

6. Sweeper: Must have 2 years of experience. Must keep the environment clean all the time including the floor, furniture, walls, play area, etc. Must ensure quality in his/her work. Salary: Rs. 6,000.

Total cost for HR:

Designation Quantity Job Description Salary

Hair stylist 4 Permanent 10000 each

Baby sitter 1 Permanent 8000

Receptionist 1 Permanent 12000

Sweeper 1 Permanent 6000

Nail specialist 1 Part time 6000

Facial and massage therapist 1 Part time 6000 each

Total cost: 84000

Communications Plan

Plan Communications is the process of determining project stakeholder information needs and defining a communication approach. This part of the plan includes the processes require to ensure timely and appropriate collection, distribution, storage, retrieval and ultimate disposition of project information. Following is the communication plan table. This approach will be used in the project.

Communication Plan Table:

Deliverables Type Delivery method

Delivery frequency

Who responsible?

Status reports

Mandatory Through e-mail After every three weeks

Project manager (SAIM ALI SHAH)

Stakeholders management strategy

Proper documents through courier services

After 1 month Project manager (SAIM ALI SHAH)

Updated documents according to emerging needs

Mandatory Proper documents through courier services

After every six months

Support department

Meeting schedules reports

Mandatory Through e-mails After every two weeks

Project manager (SAIM ALI SHAH)

Risk Management Plan

Management Risks:

The management risk we are prone to includes the following:

· Any dispute in the management team due to any unforeseen reasons may result in any of

the members leaving the business which would be a risk to the business as a whole

· Competitors can take away our trained employees on better salary and hence take away

one of our sustainable competitive advantage as well

Following are the steps that can be taken to mitigate the risk:

· Handsome salary packages, rewards and recognition, other fringe benefits should be

offered to the employees so as to retain them

· Appreciate employee’s suggestions to make them feel a part of the organization

· When any of the management team members leaves the company, neither he would be

entitled to use the name of the company nor start the same business with any other name

Marketing Risk:

The marketing risks we are prone to include the following:

· Changing market conditions may pose a great threat as it would require a new market

research and the whole new marketing plan has to be prepared

· Confusing advertisements must be avoided so that the positioning of our service is

accurate in the minds of the customers

· Our business is underestimated by the target market which may be due to faulty tactics

These risks are so far focused keenly to avoid. Following are the steps that can be further taken to mitigate the risk:

· Strong promotional campaigns and strongly pointed target market can help ensure the

effectiveness and efficiency of pour marketing efforts

· Utilizing the contingency marketing plan in case if the existing plan fails

· Keeping ourselves informed about any changes occurring in the market so we can react

proactively rather than reactively.

Operational Risk:

The operational risks we are prone to include the following:

· The lead time for the order processing and delivery of beauty and other grooming items

must be properly managed in order to ensure customer satisfaction at all times

· Developing uniformity in services is a must but it is difficult to achieve

· Electricity shortage represents an ongoing crisis in Pakistan

Following are the steps that can be further taken to mitigate the risk:

· Suggestions and consumer feedbacks can help in providing uniformity of services and

ultimately leading to customer satisfaction

· Having employees who can do multiple tasks can prove to be helpful

· Using Generator to ensure electricity supply

Financial Risk:

The Financial risk we are prone to includes the following:

Pakistan is politically an unstable country for operating business as riots, bomb attacks, strikes and procession are very common. Any harm to the physical location of our premises can cause huge financial loss

To overcome financial risk cash reserves have been formed as a percentage of the total revenue gained. These reserve funds will be used in time of company downfall, any mishap and especially in the shake-off period.

Inexperience:

Although the partners forming Tiny Clippers are talented and possess good knowledge regarding the business matter, they do not have any sort of practical experience which is one the biggest risk that we will experience.

The risk for inexperience can be catered by giving trainings to the partners as they have management skills but yet they don’t have qualified skills for marketing, HR and financing.

Threats to new entries:

Since it’s a good opportunity many people will be looking forward to starting this business.

As the business is new in Pakistan and it has many opportunities so many people will focus to open the same business as our competitors but this problem can be catered by keeping our quality level high as compared to the competitors.

PROBABILITIES OF RISK EFFECTING PROJECT:

· Financial Risk 20%

· Operational Risk 20%

· Marketing Risk 25%

· Management Risk 15%

· Inexperience 50%

· Threats to new entries 90%

Quality management plan

Quality Control:

Quality of service is what Tiny Clippers stresses upon. Hence there is no compromise on quality. It is to be made sure that each and every customer gets the best quality from our employees and at our shop. Our HR manager Mr. Saqib Khan is responsible for ensuring the quality of service at each and every step. Ensuring quality is also enlisted in the job description of each of our employees. Hence at Tiny Clippers the managers and the employees will eliminate any hurdle that will come in the way of delivering quality services and hence ensuring that the best of the quality is delivered to all.

Customer Support:

We are targeting the age group of children who normally do not make their own decisions and they are dependent on their parents for the entire decision making. Hence for us it is very important that the parents of such children choose Tiny Clippers for getting a haircut for their kids. Hence our customers are given top priority so that we are able to not only attract them but also retain them. For this we have designed customer support strategies and obligations which are as under:

Customer Support Strategies and obligations:

Tiny Clippers will have its very own website where the customers can get the information about it services and they can also view the outlook of the shop. The website will also enable them to book an appointment for a hair cut. They may also give suggestions and any complaints regarding Tiny Clippers. This facility will help the customers to save their time because they can easily access the website at any place. They do not have to visit company outlet just to get information.

The customers can also call at the reception desk to book an appointment or to address any problem that they might be facing.

The customers if dissatisfied with any of the services provided to them, we will be responsible to offer the same services again which would be free of cost.

Availability of Qualified Labor Pool:

As mentioned many times before, we look forward to making our human resource as one of our sustainable competitive advantage. For this, it is very much important that we hire qualified labor force that will be able to deliver our value proposition which is more for less. Hence hiring of labor force is given extreme importance. We have made sure that we have not only hired those people who are qualified and experienced but also those whose attitudes are kid-friendly. Majority of our employees are females as they are better capable to handle kids. Other parlors or salons in Lahore deal either with men or women. Tiny Clippers on the other hand will be dealing kids. Hence a whole new expertise would be required to deal with the children. Keeping this in view, we are very much satisfied that we have been able to hire a qualified labor pool that includes four hairstylists, a baby sitter and part time nail, facial, and massage personnel.

Procurements Plan

After the detailed meetings from all the key stakeholders, and different experts in cost management, we are able to make a detailed report on the criticality of each item used in our project. In this whole process, our project team and other experts review the limits or boundaries of the project. The most important part in the procurements is the arrangement of shop in the best place suitable for our business, so we have decided for the complete outsourcing (on rent) in this matter.

Vendor Bid Analysis:

After viewing all the main vendors who are providing the equipments that we need to procure, the project team has decided to procure all the equipment from the following vendors on the basis of quality and cost.

Beau Tek: For providing scissors and manicure productsTrend International: For providing all the cosmetics, shampoos and kids’ beauty productsNew Era Furniture: For providing us with Disney Furniture and other fittingsSamsung: For providing us LCDs.

Detailed procurement products along with there quantity and there cost is as follows.

Consumable Products Quantity Price Each Total Cost

Scissors 25 75 1875

Manicure products 50 500 25000

Kids beauty products 100 500 50000

LCDs 4 30000 120000

Special costumes 5 5000 25000

DVD games 10 100 1000

Lotions 50 200 10000

Creams 50 200 10000

Shampoos 50 200 10000

Soaps 50 50 2500

Barber Chairs 4 5000 20000

Sitting Chairs 8 2000 16000

Soft Footballs 20 50 1000

Lego’s 5 200 1000

Colors 10 100 1000

Puzzles 5 200 1000

Cars 10 250 2500

Stuff toys 25 200 5000

Drawing books 10 100 1000

Story books 10 100 1000

Total Procurement cost: 304875

FINANCIAL PLAN

Financial Structure:

Since Tiny Clippers is a partnership the startup investment is 40 million and it will be equally shared by the all the partners namely; Mr. Saim Ali Shah, Miss Sabahat Jamil, Mr. Hashim Sheikh, Mr. Saqib Khan, Mr. Zohaib Hassan Khan and Mr. Awais Akhtar.

So total budget for this project becomes

Total Budget: 40 million

The overview of financial projections is as follows:

Project Investment

Item CostSetup Cost 750,000Premises 660,000Working Capital 1,000,000Marketing Expenses 1,000,000Preliminary Expenses 304875

Total 3,714,875

Setup Cost: It includes all the fixtures, panels, windows, flooring and fittings.

Premises: The agreement of tenancy signed requires payment of 10 months’ Rent in advance and 2 months’ Rent as a refundable security. The Agreed upon rent is Rs. 55,000/month.

Preliminary Expenses: They include buying of all the products required to start the business like all the equipments, shampoos, lotions, creams, soaps and etc.

Salaries

Designation/Type Number Monthly Salary (Rs.) Total Salary (Rs.)Hair Stylists 4 10,000 40,000Baby Sitter 1 8,000 8,000Nail, Massage and Facial Specialist(PT) 3 6,000 18,000Janitor/ Sweeper 1 6,000 6,000Receptionist 1 12,000 12,000

Total 84,000

In the first 3 years, assumptions are that there will only be four hairstylists, baby sitter, a sweeper, a receptionist and part time nail, facial, and massage specialist until the business can build a reputation.

Some of the utility expenses assumptions are also made

Utilities Expense

Utility Monthly Expense (Rs.)Electricity 25,000Gas 12,000Telephone 10,000Generator 12,000Internet 2,500Water 3,000Total 64,500

So total cost becomes

Type of Expense Cost

Project Investment 3,714,875

Salaries 84,000

Utilities Expense 64,500

Total cost: RS 3,863,345

Execution Plan

SERVICE DELIVERY

Tiny Clipper is scheduled to launch on 13 May 2011. First day would be an invites only day in which the invited guests will be served, catered and introduced to this new concept in Islamabad. This would be a kind of concept launching in the city of Islamabad.

The working hours for Tiny Clippers are from 10am to 10pm. During these timings, all the services will be fully available. The stylist that we have hired, have certification from reputable institutes and are masters at their craft. Through special training, it is made sure that they have a child friendly attitude and are very patient, which is required when dealing with the kids. We have placed special emphasis on the training and hiring of our employees as they will be ultimately responsible for delivering the services to our customers.

The method of providing services will follow a very simple pattern. The customer may either come to our outlet or call from their homes to get an appointment. The customers may wait in the waiting area for their appointment with the barber or the stylist while the kids can enjoy their time in the play area. When it’s their turn, the customers will be guided by our employees to the salon area where respective services will be simultaneously produced and consumed. Every

effort will be made to ensure that the highest quality of service is provided to each and every customer of ours.

The internal tasks of Tiny Clippers will be handled by the partners. A brief description is as under:

HR Function

Mr. Saqib Khan being the HR Manager will be responsible for hiring, training, retaining and compensating the employees. As soon as the employees will be hired they will be put under probationary training period of 2 weeks during which they will be properly observed and checked if he/she is capable to performing the tasks properly.

Finance Function

Financial matters will be headed by Mr. Hashim the Finance Manager. He will be looking over the daily operational costs and cash flows. He is responsible for making and updating financial plans and for making sure that the business operates at minimum possible costs without any compromise on the quality of services.

Marketing Function

All the Marketing activities will be headed by Miss Sabahat Jamil the Marketing Manager. She will be managing all the promotional activities, setting and updating the prices, generating awareness in the market and educating people about what is a kids’ salon and what are its benefits. She is responsible for developing and updating the marketing plan. She is responsible for bringing changes to the services of Tiny Clippers to make additions and advancements to the current product/service line. She is also responsible for customer loyalty and retention.

Artistic Function

Artistic Manager is responsible for finding out and coming up with new hairstyles, cuts and fashion trends for kids and as well as new services which he will be performing in co-ordination with the marketing manager. This function will be handled by Mr. Awais Akhtar.

Purchasing Function

Mr. Zohaib Khan the Purchasing Manager is responsible for making purchases for Tiny Clippers. He is our link to the outside world of suppliers. He is responsible for keeping healthy and good relations with the vendors thus keeping the flow of supplies smooth, regular and low cost.

AVAILABILITY OF QUALIFIED LABOR POOL:

As mentioned many times before, we look forward to making our human resource as one of our sustainable competitive advantage. For this, it is very much important that we hire qualified labor

force that will be able to deliver our value proposition which is more for less. Hence hiring of labor force is given extreme importance. We have made sure that we have not only hired those people who are qualified and experienced but also those whose attitudes are kid-friendly. Majority of our employees are females as they are better capable to handle kids. Other parlors or salons in Lahore deal either with men or women. Tiny Clippers on the other hand will be dealing kids. Hence a whole new expertise would be required to deal with the children. Keeping this in view, we are very much satisfied that we have been able to hire a qualified labor pool that includes three barbers, a hairstylist, a baby sitter and part time nail, facial, and massage personnel.

BUSINESS PARTNERSHIPS

Tiny Clippers has to acquire the assistance of business partners who can provide it with resources and establish a mode of exchange with it. Following are the business partnerships that it seeks to develop:

Partnership with Suppliers:

We will be forming business partnerships with our suppliers. This will be a contract agreement. Our suppliers include:

Beau Tek: For providing scissors and manicure productsTrend International: For providing all the cosmetics, shampoos and kids’ beauty productsNew Era Furniture: For providing us with Disney Furniture and other fittings

The other supplies are bought from various suppliers carefully managed by our Purchase Manager, Mr. Zohaib Khan

Other Partnerships:

· Mc Donald’s: They will help us in promotion by providing a coupon of a free haircut on purchase of three happy meals. We are looking forward to start this promotional campaign after a month of launch of Tiny Clippers.

· Wikkid Plus: Our partnership with Wikkid Plus will help us to promote ourselves further. We will be acquiring a contract of 1 year to groom their child artists that appear on air. We will be offering them our services at a discounted price and in return they will help us in promoting ourselves.