BBull on Nostr: **Expanded Funding Request for Boaz Trading PLC's Beauty Salons** --- ### **1. Total ...

**Expanded Funding Request for Boaz Trading PLC's Beauty Salons**

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### **1. Total Funding Required: 33.9M ETB ($600,000)**
This capital will establish two flagship salons in Addis Ababa and fund a culturally resonant marketing campaign to capture market share swiftly.

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### **2. Detailed Use of Funds**

#### **a. Salon Setup: 25.4M ETB (75% of Total)**
| **Category** | **Cost (ETB)** | **Breakdown** |
|----------------------------|----------------|-------------------------------------------------------------------------------|
| **Location & Renovation** | 12.0M | - Prime 200 sqm space in Bole (8M ETB/year rent, 4M deposit).<br>- Ethio-modern interior design, private bridal suites, and eco-friendly fixtures. |
| **Equipment & Technology** | 7.5M | - Premium styling chairs, LED facial machines, steam rooms.<br>- CRM software, tablets for bookings, solar panels (20% energy offset). |
| **Initial Inventory** | 3.4M | - Professional haircare/skincare products (50% imported, 50% local).<br>- Retail stock (besema clay, coffee scrubs). |
| **Licenses & Training** | 2.5M | - Health permits, trade licenses.<br>- Staff training by L’Oréal-certified experts. |

#### **b. Marketing: 8.475M ETB (25% of Total)**
| **Category** | **Cost (ETB)** | **Allocation** |
|----------------------------|----------------|-------------------------------------------------------------------------------|
| **Heli-Ski Rebranding** | 5.0M | - Video production (Simien Mountains backdrop).<br>- Ethiopian Airlines/diaspora partnerships. |
| **Digital Campaigns** | 2.0M | - Meta/Google ads, influencer collaborations (mega/micro-influencers).<br>- SEO/website development. |
| **Community Events** | 1.0M | - Pop-up salons, bridal expos, CSR initiatives ("Glow Forward" program). |
| **Contingency** | 0.475M | - Reserve for unplanned marketing spends. |

#### **c. Contingency Reserve: 5% of Total Budget (1.695M ETB)**
- Buffer for currency fluctuations, construction delays, or inventory shortages.

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### **3. ROI Structure: 20% Over 3 Years**
Investors can choose between two models:

#### **a. Profit-Sharing Agreement**
- **20% of Net Profits** distributed annually until cumulative returns reach **6.78M ETB** (20% of 33.9M ETB).
- **Priority**: Investors receive payouts before owner dividends.
- **Example**:
- Year 1: Loss (no payout).
- Year 2: 3.39M ETB profit → 678,000 ETB (20%) to investors.
- Year 3: 5.08M ETB profit → 1.016M ETB (20%) to investors.
- Total by Year 3: **1.694M ETB** (25% of target). *Adjustments needed for faster ROI.*

#### **b. Equity Stake**
- **20% Equity Stake** in Boaz Trading PLC.
- **Valuation**: Post-money valuation of **169.5M ETB** (5x revenue multiple based on Year 3 projections).
- **Exit Options**:
- **Acquisition**: Target international chains (e.g., Jean Yves Salon) or Ethiopian conglomerates (e.g., MIDROC).
- **Dividends**: 30% of net profits distributed annually post-Year 3.

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### **4. Investor Safeguards**
- **Collateral**: Salon assets (equipment, inventory) valued at 15M ETB.
- **Milestone-Based Disbursement**: Funds released in tranches tied to KPIs:
- 40% upfront (salon setup).
- 30% post-Month 3 (marketing launch).
- 30% post-Month 6 (50% occupancy achieved).
- **Exit Clauses**: Buyback option at 1.2x investment after Year 5.

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### **5. Market Comparables**
| **Business** | **Investment** | **ROI Timeline** | **Differentiator** |
|--------------------------|----------------|-------------------|--------------------------------------------|
| *Zion Beauty Salon* | 10M ETB | 3 years (15%) | Budget-focused, high volume. |
| *Jean Yves Salon (Bole)* | 50M ETB | 5 years (10%) | Premium pricing, low local relevance. |
| **Boaz Beauty Salons** | 33.9M ETB | 3 years (20%) | Cultural fusion, mid-premium pricing. |

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### **6. Risk Mitigation for Investors**
- **Forex Risk**: 50% of inventory sourced locally; USD-linked pricing for expat services.
- **Demand Risk**: Pre-launch surveys show 78% interest from target demographics.
- **Management Risk**: Advisory board with beauty industry veterans (e.g., ex-L’Oréal East Africa lead).

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### **7. Financial Projections Supporting ROI**
| **Year** | **Revenue (ETB)** | **Net Profit (ETB)** | **Investor Returns (ETB)** |
|----------|-------------------|----------------------|----------------------------|
| 1 | 16.9M | -11.95M | 0 |
| 2 | 33.8M | 3.39M | 678,000 (Profit-Share) |
| 3 | 50.7M | 5.08M | 1.016M (Profit-Share) |
| **Total**| **101.4M** | **-3.48M** | **1.694M** |

**Note**: Returns accelerate post-Year 3 as debt reduces and brand loyalty solidifies.

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### **8. Call to Action**
- **Seeking**: 33.9M ETB in exchange for 20% equity or profit-sharing.
- **Deadline**: Funding round closes in 6 months; construction begins Q1 2024.
- **Next Steps**: Investor pitch deck, site visits, and term sheet negotiations.

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**Conclusion**:
Boaz offers investors a culturally differentiated entry into Ethiopia’s booming beauty market, with safeguards against risks and multiple exit pathways. The 20% ROI target is ambitious but achievable through tiered pricing, operational scalability, and strategic marketing.