FINANCIAL FEASIBILITY OF BUSINESS ON BEAUTY SALON STARTUP: A CASE OF NALA BEAUTY BAR SALON PROJECT

• Main Author: Annisa Desomsoni, Ghifalda
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83402
• Institution: Institut Teknologi Bandung

The beauty sector in Indonesia is currently undergoing strong expansion, propelled by growing consumer consciousness and an upward trend in people's willingness and ability to spend money on beauty products and treatments. The Greater Bandung area is one of many cities with the highest spending on the beauty industry, indicating significant opportunities for growth in this sector. Nala Beauty Bar, founded in Lampung in 2019, has relocated its store to Bandung, reflecting this prevailing trend by offering a variety of semi-permanent cosmetic treatments specifically designed to empower individuals and enhance self-assurance. The salon's primary objective is to challenge conventional beauty standards and societal pressures by prioritizing the fostering of self-confidence among its clientele. Nala Beauty Bar places a strong emphasis on the feasibility and sustainability of its financial operations to ensure long-term viability. This is achieved through strategic investments in technology and supplies, alongside meticulous financial planning. This i study evaluates the financial feasibility of Nala Beauty Bar's expansion in Bandung by employing scenario analysis to identify and analyze potential risks. The research methodology is action research, which involves a cyclical process of planning, acting, observing, and reflecting to continuously improve the business model. The study reveals a payback period of 2.2 years and an impressive Internal Rate of Return (IRR) of 46.94%, surpassing the Weighted Average Cost of Capital (WACC) of 9.48%. Furthermore, the Net Present Value (NPV) in the base scenario is positive at IDR 109,791,609.53, indicating a significant level of profitability. The findings underscore the strategic opportunities for Nala Beauty Bar to enhance its financial prosperity by providing confidence-boosting beauty treatments in Bandung.