Equity Investment Needed in Beauty Hair Salon Business with 40% ROI

Opportunity Snapshot

  • Country: Ghana Ghana
  • Industry: Retail Trade
  • Stage: Start-up
  • Investment size: $100,000 / min. $50,000
  • ROI: 40% in 5 years
  • Type of investment: Equity

Investment Opportunity

A full-service beauty salon dedicated to consistently providing high customer satisfaction is seeking funding with a ROI of 40%.

We are a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Our beauty salon will upon commencement of operations sell a wide range of beauty services and products. We will provide quality hair, nail, and skin care products, along with top line of beauty products. What will set our salon apart from the competition is our commitment to providing all of these services in one convenient location.

Our Mission: To supply services and products that enhances our customer's physical appearance and mental relaxation.

Our Motto: Customer Satisfaction is Guaranteed

The timing is right for starting this new venture. Patiently searching for almost two years for the perfect location, one was finally found. The ambitions of the owners to one day start their own salon and the zeal to procure highly professional and qualified beauticians to support the salon has made this business one of a great potential. To achieve our objectives, we are seeking capital financing. This loan will be paid from the cash flow from the business coffers.

The keys to success in our business are:

Location: Providing an easily accessible location for customers.

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

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

We will be opening January 1st 2016 once the finances are received. To begin with, our hair salon will concentrate on the marketing aspect to target new customers.
We expect to service approximately 100 customers a week for hairdressing, an average of 7 customers per day between the 3 hairstylists. It is expected that approximately 10 customers a week will use the nail, facial and massage services.
The products will average approximately Ghc50.00 a day in sales. Within the first six months we expect all of these figures to increase by 15%. Each following year we expect a sales increase of 15%.

Competitive Advantage

Our salon wants to set itself apart from other beauty salons that may offer only one or two types of service.

Having lived within the neighbourhood for years, we realised from talking to most women within the neighbourhood, that they desire all of the services that we are proposing, but they remain frustrated because they must get their hair done at one place, and nails at another. Although the focus of our salon is hair services, we do plan to offer our customers the convenience of all these services in one location.

There are a number of salons like ours, but they are mainly in the very high-income parts of Accra and surrounding areas. We do not intend to compete with these so called “day spas”. We wish to offer a middle ground for those customers who can’t quite afford those high-end luxury salons.

Our business atmosphere will be a relaxing one where customers can kick back and be pampered. Soft drinks and confectioneries will be offered to customers as they enter for service. Televisions will be located in the waiting and hair-drying areas.

Our advertising strategy is a simple one: satisfied clients are our best marketing tool. When a customer leaves our business with a new look, he or she is broadcasting our name and quality to the public. Most of our clients will be referrals from existing customers.

Rationale for the deal

The beautification industry is economically stable in Ghana. However, our market share is driven by the rise in more women joining the workforce. Industry trends show that as time becomes more limited, people want faster, easier and more economical services all in one location. Customers are more educated and more demanding of quality service. Our market area includes the Ga West Municipal district and surrounding communities. This will include a target population of 200,000-300,000 people who fit our customer profile.

Our salon will be organised and managed in a creative and innovative fashion to generate high levels of customer satisfaction. This will also create a working climate conducive to a high degree of personal development and economic satisfaction for employees.

The founder of the company is a MBA graduate of Coventry University London Campus in 2012, she has quickly developed the skills that have led to her success. She loves dealing with people, and has the drive, ambition and discipline to manage the business and its employees.

Use of financing

The requested funds are needed for start-up costs and working capital. The start-up cost includes License/permits, Insurance, Office supplies, Furniture, Advertising, Utilities, Land and Buildings, Renovations (leasehold improvements), Special Equipment, Professional Fees and Salaries (for pre-opening). The working capital includes Insurance Premiums, Payroll Expenses, Rent, Advertising/Marketing, Repair and Maintenance and other miscellaneous expenses. Estimated amount for start-up capital stands at $70,000 and working capital is estimated at $3,000.

Opportunity for the investor

A true partnership is based on respect. Respect is based on fairness. Both the silent partner and general partner have a stake in the profit and loss statements of the business venture. The profits enjoyed by a silent partner can be a predetermined interest rate or a portion of the annual profits and losses incurred by the venture. A silent partner only plays the role of an investor in exchange for passive income or interest accrued from a business’s profits.

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