RUE’S BEAUTY AND MARKETING AGENCY

PR9F+2G9, Tom Mboya St,

Post Office Box – 00400,

Platinum Plaza, Nairobi.

Owner

MISS RUTH MUNYIRI

ACDI/00961/2019

DECLARATION

1
 I hereby declare that this business plan is my original
document and is derived from my own knowledge, thoughts
and research and not copied from another source.
Candidate's name: RUTH MUNYIRI
Signature

Date

Reviewed and approved by;

Lecturer

Lecturer's Title:.

Department:
Signature

Date

2
DEDICATION

I dedicate this business plan to my lovely family for providing

me with the basic needs and financial support during the coming
up of this business plan.

I also present this business plan to my lecturer Esther Mwiti, for

providing me with enough knowledge of coming up of the
business plan.

3
ACKNOWLEDGEMENT

I would like to acknowledge the Almighty God for granting me

this opportunity and the gift of life.

I also acknowledge the TECHNICAL UNIVERSITY OF

KENYA for the seen support.

4
TABLE OF CONTENTS

EXECUTIVE SUMMARY……………………………...(i)

CHAPTER ONE………………………………………….(ii)

CHAPTER TWO………………………………………….(iii)

CHAPTER THREE……………………………………….(iv)

CHAPTER FOUR…………………………………………(v)

CHAPTER FIVE………………………………………….(vi)

CHAPTER SIX…………………………………………….(vii)

5
EXECUTIVE SUMMARY

Business Overview

Rue’s beauty and marketing agency is a newly established,

independently owned beauty supply store located in Platinum
Plaza, Tom Mboya St, Nairobi. It will be the go-to-supply store
for anything and everything beauty related. It will be located in a
high-trafficked area where there are thousands of residents with
disposable income.

Rue’s customer based will consist of males and females from all
walks of life that shop for hair products, makeup, skin care
products and nail products.

The salons in the area will also purchase their salon inventory
from Rue’s beauty store.

6
CHAPTER ONE

BUSINESS DESCRIPTION

INTRODUCTION

Name: Miss Ruth Munyiri

Age: 24 years

Marital status: Single

Address: ruthhassan48@[Link]

Occupation: professional designer and beautician

Education: Bachelor’s Technology in Design

Professional qualifications: Degree in Design and Cosmetics

Business experience: 6 years in Beauty and Cosmetics industry

7
1.1 Business Name

The business will have the name, Rue's beauty agency under the
owners first name “Ruth”. This is because it will give the
business a unique identity that can help it stand out in a crowded
marketplace.

The name is so specific that it will help people remember this

business, especially because they already know the owner as an
individual. Also, customers like to know the real people behind a
business who will be accountable for their products and services.

Vision

Rue’s beauty agency is a soon-to-be-launched beauty supply

agency that aims to create business world full of prosperity,
meaning and connection for all. The business also aims to
enhance the inner beauty and confidence in our clients by using
superior quality products.

Mission Statement

8
Rue’s beauty agency mission is to serve our customers with the
best skin care and beauty products and also to provide
phenomenal beauty services in a relaxing and welcoming
environment that leaves our clients pampered and confident.

1.2 Business Location:

We aim to rent the following site as the location of our store:

Platinum Plaza along Tom Mboya street, [Link] 00400

Nairobi,Kenya 00100. This is the best site to set up the business

as it is located in the busy downtown of Nairobi and is equipped
with backup generator and full time running water.

Directions on the map

9
1.3 Form of Ownership

The business will be a sole proprietorship. This is because the

start-up costs are low as it’s easy to manage. The business
wishes to start with an initial capital of ksh 500,000.

Advantages

 You’re the boss.

 You keep all the profits.
 Start-up costs are low.
 You have maximum privacy.
 Establishing and operating your business is simple.
 It’s easy to change your legal structure later if
circumstances change you can easily wind up your
business.

Disadvantages

 Less financial and legal protection.

 The inability to add a partner.
 Higher self-employment taxes.
 Obstacles to getting approved for startup or sustenance
funding.

10
  No guidance from board members.

1.4 Type and Status of the business

Rue’s beauty and marketing agency will be a start-up business.

It will be launched on 3rd January 2026. The business will help
grow beauty brand’s online presence and increase sales in
competitive marketplace.

1.5 Products and Services:

Rue’s beauty agency aims to provide competitively priced and

high-quality beauty supplies to various customers located within
our area. We have haircare and skincare products on offer.
Moreover, there are nail products and cosmetics available too.

Rue’s beauty agency shall also sell fragrances, body care items,
and all the limited branded items that are otherwise hard to find.

Rue’s beauty agency USP is it’s high-performance, transparency

and honesty about its ingredients, formulations and benefits.

Rue’s USP is attractive to customers who want to understand

what they are putting on their skin, hair, body and get the best
value for their money.

1.6 Justification of opportunity

11
The main factor that favors the choice of this proposed business
and its location is because of high demand for products by the
customers.

The business will be creating employment to the jobless people

and will ensure maximum security of its employees, consumers,
suppliers and the entire society in order to improve their living
standards.

1.7 Industry

This store is part of the beauty industry, with various brands

competing with each other. This is a fast-paced industry where
new products are constantly launching. The store aims to keep
up with the pace to offer all the beauty and care products that the
rest of the market has available for sale.

It will be run by Ruth Munyiri, who is the owner with the help
of a management team. We aim to launch the store on 3rd
January 2026, giving our customers all the products they require
to maintain their looks.

1.8 Goals of the business (SMART)

12
The business intends to have both long term and short term
goals.

It also intends to diversify its products both locally and

internationally.

Goals

 To create Instagram, Facebook and TikTok accounts for the

beauty brand and post 1-3 times a week on each in 2026.
 To create the business beauty store on Shopify, upload 5
products after taking product photos and writing beauty
product descriptions, and launch it by Jan 2026.
 To average at least 40 orders per month in 2026 and grow
the monthly revenue to over $5000.
 Spending less by reducing package sizes by 20%.
 Start a blog to grow the customer acquisition through
content marketing.
 Research and pick an advertising channel, create relevant
content and launch the business first paid advertising
campaign with its own specific goals before 2026.
 To offer a product range in each niche to fit various clients’
needs.

13
1.9 Entry and Growth Strategy

The business intends to produce high quality products that will

satisfy consumers. In addition, it also intends to utilize the
available resources in order to maximize it’s profits effectively.

CHAPTER TWO

MARKETING PLAN

Rue’s beauty agency wants to build a brand that focuses on the

following:

 Providing competitive prices

14
  Offer high-quality products
 Generate monthly profit

The business intends to sell it’s products and other related

services both locally and internationally. The business will price
its products affordably and employ unique advertising and
promotional techniques that will help gain more customers.

The business will also distribute products both at wholesale and

retail prices through authorized agents. This will guarantee
quality products at reasonable prices hence gaining and retaining
customers’ confidence in the business.

2.1 Customers

Customer Focus

Rue's beauty agency primarily will serve (men/women) of age

groups (18-35) looking for beauty products to meet their body
needs. These customers live or work close to our possible
location.

Here is a breakout of our target customers:

% of customers: (70%)

Average income: (15000-above)

15
Median Age : (25)

Customer Needs:

The key needs of our customers are:

 Reasonably priced beauty products

 Quality of skincare items
 Availability of the latest beauty and care products
 Delivery of products on demand

Target Customer Profile:

We will majorly target these customer segments:

Women aged (18-35)

Men aged (20-40)

The business will have a high percentage of customers from

within and around the business premises. The business is also
situated in a strategic position surrounded by major residential
areas in the town center who will place orders on quality
products from the enterprise.

2.2 Market share/size

16
2.3 Competition

Competitive Analysis

List of competitors:

Rue's beauty agency has direct and indirect competitors, some of

which are located around the enterprise and others away from
the business premises.

Below are their addresses and other details:

1. Reones Beauty and Cosmetics

17
 2. Best Lady center – Tom Mboya St
3. Metropolitant Cosmetics
4. Ratino Beauty Spa – Tom Mboya St
5. Bellani nail Spa – Tom Mboya St

Competitive Advantage:

Rue's beauty agency has a competitive advantage over its

competitors due to the following reasons:

 Well-qualified and experienced founder

 A disciplined and experienced management team
 Excellent location
 Flexible opening and closing hours

2.4 Methods of Promotion

The business will employ unique advertising and promotional

techniques in order to make products and other related services
known to its potential customers.

The business intends to use television mostly for advertising its

products and services for at least three days immediately after
the news highlights when the audience is still attentive.

18
The business samples and pictures of its products are to be
displayed on the screen in order to win the confidence of the
audience towards the products and the confidence of the
business.

The effectiveness of this advertising process will therefore be

measured by the rate at which the sales increase in the business
during and after the advertising period.

2.5 Pricing Strategy

The business will carry out an intensive marketing research on

the available prices in order to come up with appropriate price
for its products. The main factor that will influence the price
setting are the customers which the business intends to retain by
quoting reasonable prices to them.

The prices of the products will not be fixed because of the credit
that will be offered depending on the terms and conditions of the
business. The business will also offer discounts in order to
attract and retain potential customers.

2.6 Sales tactics

19
The business will use various methods in order to reach its
potential customers. The business will use some of its authorized
agents to sell its products on its behalf. On the other hand, the
business will employ qualified salesmen who will directly talk
to customers in the area.

2.7 Distribution Strategy

Rue’s beauty agency intends to use different distribution

channels that will be the most appropriate for its products. The
business will mainly use road transport to distribute the products
to its consumers. This is because road transport is cheaper and
flexible, hence reliable and suitable for both the business and
customers.

2.8 Budget

 Content marketing: (30-40%) – content marketing costs

involve creation and publication of content such as blog
posts, videos, graphics, social media tools and guides.
 Paid ads: (20-30%) – paid ads to consider in the budget
include:

20
  Pay per click and social media advertising
 SEO and display ads
 Newspapers and magazines
 TV and radio
 Billboards and posters
 Creative design and branding: (5-10%)
 Public relations and events: (5-10%)
 Analytics: (2-6%)
 Tools and software: (10%)
 Staff members: (10%)

CHAPTER THREE

21
 ORGANIZATION AND MANAGEMENT PLAN

The organizational structure will flow from top management to

the low level personnel.

3.1 Organization structure

General Manger

Manager

Production Management Quality

section section Assurance
section

Production Sales dep

management Research dep
Marketing dep
Manufacture dep Quality control
Human &
dep
Packaging dep financial dep
Quality
Filling dep Purchase dep
Assurance dep
Warehouse dep Document
control dep

3.2 Management personnel

22
Rue’s beauty agency is looking forward to have a well-planned
management together with co-ordinated personnel to enhance
well planned strategies for the achievement of the desired
objectives. The management will also clearly show how the
business will act with respect to compensation of its employees
in terms of retirement or even in case of accident.

3.2.1 Owner/Manager and members

Rue’s beauty agency is led by Ruth Munyiri who has extensive

experience in running and managing a store. Ruth Munyiri also
has excellent knowledge of beauty products and stays aware of
new beauty and care items.

Ruth Munyiri wishes to hire Tabitha Njeri Ndung’u as their

customer service manager. She has(5) years of experience in the
beauty industry.

3.2.2 Key personnel

1. Operations manager
2. Marketing manager
3. Purchasing manager
4. Receptionist

23
3.2.3 Other personnel

Other staff members required are:

Accountant

Cleaning staff

Menial staff

Revenue and Cost Drivers

3.3 Recruitment, training and promotion

The business intends to develop its personnel and train them in

relation to enterprise rules and regulations in order to prove
them to be useful and more resourceful to the business.

3.3.1 Recruitment

Rue’s beauty agency will recruit its employees using the internal
sources of recruitment.

3.3.2Training

24
The business intends to conduct its training process for its
employees thrice a year. The process will be carried out through
seminars, shows and exhibitions in order to equip them with
necessary skills and knowledge.

3.3.3 Promotion

The business will award occasional promotions to the hard-

working employees. It will at times transfer employees from one
department to another to motivate them and enhance efficiency
in order to achieve greater quality [Link] business will
also sometimes use posters in advertising of its vacancies
together with the specific qualifications for the respective
positions.

3.4 Remuneration and incentives

3.4.1 Remuneration

The business shall be more focused on employee’s welfare

which will be an incentive to the employees. The business shall
have clear remuneration guidelines to its employees regarding
their salaries and allowances.

25
3.4.2 Incentives

The business intends to motivate its employees through

incentives such as free medical benefits, house allowance and
even provide them with cup of coffee during the course of their
work in order to provide them with strength to enable them
perform their duties well.

26
CHAPTER FOUR

PRODUCTION/OPERATIONAL PLAN

The business will employ appropriate technology in the business

operations and also high conduct to ensure customers get quality
services.

4.1 Production facilities will be acquired before the business

operations start to ensure effective delivery of services. Rue’s
beauty agency is looking forward to lay down strategies as far as
the production of items as well as delivery of related services to
its customers is concerned.

4.2 The strategies include how the business will acquire its
equipment in order to maximize creativity and innovation from
employees in the designing of its products. The business will
include the production room, store room, manager’s office,
supervisor’s office, cashier’s office and the reception office.

4.3 Regulations affecting production

27
Trade licensing act so as to start the business.

The business will ensure that all employees meet the health
requirements by checking their legal health documents. This will
ensure that the business premises are kept tidy.

Operational Timings:

Rue's beauty agency will conduct all its operations based on a

walk-in basis. It aims to stay open all seven days of the week
from 8 am to 10 pm.
To execute its business model, Rue's beauty agency should have
the right personnel to perform the following tasks:
Floor sales
Product sales
Hiring and training of staff
Administrative functions
Storing and sourcing of products

28
CHAPTER FIVE
FINANCIAL PLAN
5.1 Key revenue and costs
Rue's beauty agency aims to earn its revenue from the sale of its
beauty products. Similarly, its major costs are rent of the store,
maintenance expenses, staff salaries, and marketing expenses.
The financial statement will contain a pro-forma income
statement portraying the profit or loss for the three financial
years respectively.
Funding requirements and use of funds
Rue’s beauty agency is seeking Ksh 1,000,000 in debt financing
to open a beauty supply store in Nairobi.
The funding will be dedicated for product inventory, leasehold
improvements, working capital, advertising agency and three
months of payroll. The breakout of the funding is below:

Beauty supply store design/build: 500,000

Opening inventory:200,000
Working capital: 100,000
Three months of payroll: 100,000

29
Advertising agency and website developer: 100,000

Key Assumptions
The following outlines the key assumptions required in order to
achieve the revenue and cost numbers in the financials and in
order to pay off the startup business loan.

Number of Initial Customers Per Month: 300

Average Item Cost: $25
Average Ticket per Customer: $75
Annual Lease: $100,000
No description costs
Tools and equipment – 28,000
Rent- 3,000
Water bills- 300
Electricity – 700
Transport – 800
Advertisement – 200
License and legal document -2,000
Insurance – 1,500
30
Others- 850
Total = 37,550

5.2 Working capital

Shows the difference between total current assets and the total
current liabilities as shown below;
ITEM Kshs(1st yr) Kshs(2nd yr) Kshs(3rd yr)
Cash at bank 150,000 200,000 270,000
Cash at hand 800,000 900,000 1,100, 000
Immediate 100, 000 150,000 200,000
assets
Moveable 200,000 250,000 300,000
Total 1,250,000 1,500,000 1,870,000

Liabilities cost
ITEM Kshs(1st yr) Kshs( 2nd yr) Kshs(3rd yr)
Bank 400,000 350,000 300,000
overdraft
Creditors 250,000 200,000 150,000
Bank loans 150,000 100, 000 50,000
Total 800,000 650,000 500,000

5.3 Proforma cash flow

31
Beginning cash- 200,500
Cash sales- 150,000
Cash at bank- 50,000
Cash at hand- 40,000
Purchases- 68, 000
Salaries- 61,000
Electricity- 700
Insurance- 1,500
Rent-3,000
Advertisement- 200
Transport- 800
License- 2,000
Total cash flow= 137,500 for the first year

32
CHAPTER SIX
6.1 Risk identification
1. Business risks: sanitary crisis, information and cyber
security systems, data, market and innovation, business
ethics, human resources risk, product quality and safety
2. Environmental risks: climate change, environment and
safety
3. Legal and regulatory risks: intellectual property;
trademarks, design and models, domain names, patents
4. Financial and market risks: Inflation and currency risk,
risk on financial equity interests, risks relating to
impairment of intangible assets.
6.2 Risk management
Risk management is the process of identifying, assessing and
controlling threats to an organization’s capital, earnings and
operations. These risks stem from a variety of sources, including

33
financial uncertainties, legal liabilities, technology issues,
strategic management errors, accidents and natural disasters.

As an important daily necessity, the safety of cosmetics is

extremely important. How to ensure the safety of cosmetics
production requires proper preparation and risk supervision from
the early stage of testing. Rue’s beauty agency must be prepared
to deal with the technical capabilities of cosmetics testing,
establish a sound quality risk management system of raw
material, and ensure the safety of cosmetics. Based on the data
management method of visualization in scientific computing,
possible risk factors are analyzed by combing the development,
production, sales, and other chains of new cosmetic products,
and these risks are quantitatively analyzed and evaluated to
build a corresponding risk assessment model, realize effective
supervision and traceability of new cosmetic products, and
realize the risk strategy and related management of new
cosmetic product development. The simulation experiment
results show that the data management method of visualization
in scientific computing is effective and can support the risk
management of the development of new cosmetic products.

34
Reasonable management and control of the quality risks of
cosmetic raw materials can enable the cosmetics industry to
achieve sustainable development on a healthy track.

35