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EXECUTIVE SUMMARY

This plan is to set up a cosmetic shop in the name of " Bare Cosmetics Enterprise ", which will
be located in Easy View Arcade Garage street Mbarara. The cosmetic shop will be a sole
proprietorship owned by Akampurira Brian. I will use startup capital of 52,380,000 Uganda
shillings. UGX 34,380,000 will be owners’ equity and the remaining UGX 18,000,000 will be
a bank loan which will be secured from centenary bank at 10% interest rate. The key personnel
at the cosmetic Enterprise will include Senior manager, buying inputs and overall supervisory
work, operations and production staff, sales and marketing staff, skin therapy and hairdressing
staff, record keeping and accounting, stock control and direct selling staff.

The key objective of the cosmetic shop will be to provide fresh quality cosmetics to our clients
to enable them improve their general skin beauty, to obtain maximum customer satisfaction
through continued quality production, to obtain continuous production and supply of our
products to the customers, to create customer loyalty to our products such that they become
well pronounced in the customer minds.

To achieve our objective, the cosmetic shop will employ strategies such as: Offering quality,
body skin lotions, oils and herbal cosmetics that help fight the skin diseases made from fresh
fruit and vegetable which are nutritious through adequate research and proper mixture of the
lotions, oils and herbal ointments to meet the standard skin contents and characteristics of
customers in the market through advertisement by use of sign posts, direct selling and radio
stations, offering special incentive to our regular clients, offering our cosmetics at relatively
lower prices for market penetration, creating a conducive environment for our clients,
employing people who understand the meaning of customer care and meaning of quality by
giving them samples for use as a way of expanding our markets especially among the young
children, youth and women. All this encompasses our strategies that include, communication
strategy, supplier relationship strategy, marketing strategy, competitive strategy and human
resource strategy.

The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh and health
skin booting cosmetics product’

Our mission will be, dedicated at improving the skin health and body look and appearance of
our client. "We seek to become the recognized leader in our targeted local and international
market for carrying a diverse line of in demand cosmetics including perfumes, makeup, and
other accessories that will have a competitive edge towards customer satisfaction and retention

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at attractive prices. Our major customers will be corporate employees, students, market
vendors, tourists and retailers who will be consuming a range of our products including;
Perfumes 1st class, Lemon body lotion, Hair relaxer cream, Avocadoes body cream smoother
and Hair glow. Our forms/ ways of distribution will include, through Retailers, distributors and
wholesalers who will buy and sell in bulk to our final customers which we cannot sell to directly
we shall also sell directly to the customers because we have a high customer traffic at our main
outlet in Mbarara. We shall as well be using a van that will be leased to distribute to our
customers who order in large quantities.

In terms of our legal responsibilities, the following taxes apply to our business, sales tax,
employees’ income tax, national social security fund and Mbarara Municipal Council Tax and
other licenses like trading license, and Uganda National Bureau of Standards license. We shall
as well need to the insurance for our business and also carry out other social responsibilities
like corporate social responsibility, being environmentally friendly, and ensuring cleanliness
of Mbarara town. Our products are costed and priced after comparison with our major
competitor’s prices and costing information acquired through market research. We have as well
carried out cash flow estimates to ensure that our business does not run out of cash.

Our startup capital has been allocated to what we intend to start our business with that is renting
building for two months, buying machines for mixing the inputs, Machines, leasing van, buying
furniture and fittings, massage equipment, cloths and uniforms and other necessary things to
start with including the employee salaries for the first two months.

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Chapter 1
BUSINESS DESCRIPTION

1.1. Name of the business

Bare Cosmetics Enterprise

1.2. Produce the following products

Bare Cosmetics Enterprise will provide different kinds of cosmetic products ranging from body
lotion to hair relaxers with potentials of using local fruits, both rare and common fruits as key
primary ingredients in the production of body oils and lotions. This will be intended to improve
the general skin health as well as boosting the beauty skin of our clients especially ladies.
Among the fruits we will use to extract include grapes, Chew cumber, palm fruits, avocadoes,
lemons, oranges, among others to produce a body lotion that moisturizes and smoothens the
skin for healthy attractive look of the boy and hair.

Our business will also provide moisturizing creams, body lotions, hair lotions of various types
and varieties to our esteemed customers. Our product will be offered to the young, the youth
and the old, who will need to improve their general health and skin beauty.

1.3. Provide the following services

We will also offer the cosmetic products to our esteemed customers while providing
consultancy advice inform of skills for mixing and using the oils for their own benefit.

We will provide free consultancy services about lotion use, making and maintenance and caring
for the skin especially mostly by the ladies and young girls who our major customers and advise
them on maintaining a healthy balanced diet which include fruits and vegetables.

1.4. The customers will be

Other businesses that deal in cosmetics, retail shops, supermarkets all over the country, in
foreign countries in East Africa like Kenya, Rwanda, Tanzania, and Burundi and other
customers will be buying from our company directly and from our mobile distributors and they
will be both the young children, men and mostly women.

1.5. The business will sell in the following way

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Distribute to our national and international distribution centers, supermarkets, retail outlets, our
agents all over the countries in East African regions and some customers will buy directly from
our company main outlet in Mbarara.

1.6. The business will satisfy the following needs of the customers

Bare cosmetics will offer reliable cosmetics, lotions, and jerry’s intended to improve the
general skin health as well as boosting the beauty skin of our clients especially ladies, skin
treatment, cure skin rashes, and ensure all time beauty of our clients.

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Chapter 2
MISSION AND VISION

2.1 Vision statement

The vision of the cosmetic shop will be ‘To be the leading suppliers of quality, fresh
and health skin booting cosmetics product’

2.2 Mission statement

It will be, dedicated at improving the skin health and body look and appearance of our
client. "We seek to become the recognized leader in our targeted local and international market
for carrying a diverse line of in demand cosmetics including perfumes, makeup, and other
accessories that will have a competitive edge towards customer satisfaction and retention at
attractive prices.

2.3 Goals

 To be leading supplier of quality, fresh and health skin beautifying cosmetics


 To expand to the other markets across East Africa.
 To exploit opportunities in the market including the gaps left out by already
established firms like Movit and Samoan.

2.4 Objectives

The Enterprise is dedicated to achieving maximum customer satisfaction at the lowest


possible cost and therefore has the following objectives.

 To obtain maximum customer satisfaction through continued quality production


 To obtain continuous production and supply of our products to the customers
 To create customer loyalty to our products such that they become well
pronounced in the customer minds.
 To efficiently publicize our products to create awareness among the customers
 To provide high quality products to the clients through use of quality and
standard in puts that is natural inputs.
 To use our experience to operate at lowest costs possible.
 To come up with new products in the Cosmetics industry.

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Chapter 3

DESCRIPTION OF PRODUCT AND SERVICES


3.1 Products
Bare Cosmetics Enterprise will provide different kinds of cosmetic products ranging from body
lotion to hair relaxers with potentials of using local fruits, both rare and common fruits as key
primary ingredients in the production of body oils and lotions. This will be intended to improve
the general skin health as well as boosting the beauty skin of our clients especially ladies.
Among the fruits we will use to extract include grapes, Chew cumber, palm fruits, avocadoes,
lemons, oranges, among others to produce a body lotion that moisturizes and smoothens the
skin for healthy attractive look of the boy and hair.

Our business will also provide moisturizing creams, body lotions, hair lotions of various types
and varieties to our esteemed customers. Our product will be offered to the young, the youth
and the old, who will need to improve their general health and skin beauty.

3.2 Services

We will also offer the cosmetic products to our esteemed customers while providing
consultancy advice inform of skills for mixing and using the oils for their own benefit.

We will provide free consultancy services about lotion use, making and maintenance and caring
for the skin especially mostly by the ladies and young girls who our major customers and advise
them on maintaining a healthy balanced diet which include fruits and vegetables.

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Chapter 4
MARKET RESEARCH AND ANALYSIS

4.1 Market research

Bare Cosmetics Enterprise intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. This will be achieved
through market research on our customers, competitors, competitor suppliers, their products
and their pricing.

4.2. Competitors

Our major competitors are KK shop, Dan cosmetics and Baby Face Organic that sell the
same cosmetics. Below is the analysis of our major competitors’ strength and weaknesses.

4.3 Assessment of competitor’s strengths and weaknesses

Competitors Strengths Weaknesses

name

KK shop ∙ Extensive ∙ High prices for their products


cosmetic dealers research
∙ High costs of operation
∙ Huge capital
∙ Weak skills (leadership,
investment
interpersonal, communication, teamwork)
∙ More experience in
∙ Limited work experience.
this business ∙
Customer loyalty

Dan cosmetics ∙ Has many ∙ Limited financial resources for startup. ∙ Lack
customers who buy of own premises to capitalize the concentrate
in bulk all activities in one place.

∙ High advertising ∙ Limited marketing expertise.


rates
∙ Poor sanitation

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∙ Strategic location

∙ Creative and
innovative

management

Baby Face ∙ Low operating ∙ Un reliable supply


Organic costs
∙ Un experienced staff
∙ Wide distributional
∙ High Labor intensive operations
channels
∙ Limited product and service lines. ∙ Un
∙ Dedicated,
motivated staff
competent and

flexible work force

The results of the market research are summarized below.

I used the information gathered from the potential customers and came up with the
following information

MARKET RESEARCH

Product Needs and preference of Competitors

Customers customers

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Perfumes 1st Corporate employees they Low quality perfumes
class need unique scent that that are not unique
Is packed in luxurious
Does not always have
containers and can last long
when used. knowledge of the latest

Must be available in time products

and in recognizable Inconsistent supply and


supermarkets and shopping so shortages in the market
malls

Lemon body Students Wide range of High prices and


lotion differently colored and limited varieties not
Flavored lotions offered consistently supplied.
atrelatively low prices.
Low quality and
Different sizes and shapes. unattractive colors and
shapes.

Avocadoes Tourists High quality products Low quality lotions with


body cream availed in recognized less moisturizing content
smoother shopping centers and malls

High level of skin


moisturizing and
smoothening.

Hair glow Retailers Reliable supply at the Delays in supply and


Right time and place in UN coordinated supply
chainand distribution
right quantities.
channels.

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Chapter 5
MARKETING PLAN

THE MARKETING PLAN

Bare Cosmetics Enterprise intends to maintain an extensive marketing campaign that will
ensure maximum visibility for the business in its targeted market. This will be achieved
through market research on our customers, competitors, competitor suppliers, their products
and their pricing.

5.1 PRODUCT PLAN

We will specialize majorly in cosmetic products and manufacturing of locally made


cosmetic products to treat the skin illness such as fungal diseases using locally produced
vegetables and fruits as ingredients in the manufacture of these cosmetics

We will offer free consultancy services to our clients, free cold water, and warm water for
washing our hands. We will employ people who are easily accessible, customer oriented,
efficient and effective. We will provide customized services like skin therapy and hair dressing
to our most esteemed customers during the weekends when we are not very busy so as to meet
their demands and needs by being agile.

5.2 PRICE

The different sizes of our products will be charged different prices and my basis of pricing
will be based on the total costs incurred, competitors’ prices and how much my customers are
willing to pay.

I have studied the prices of Baby Face Organic who are my major competitor and I think
that selling at lower prices will be one of the most important ways of competing them. A low
price is important especially for students, market vendors and retailers.

I know that customers are willing to pay for my products in different sizes and shapes. I
have studied the costs of production, distribution and marketing for each product that is for
Perfumes 1st class all sizes averagely UGX 4,500, Lemon body lotion all sizes averagely UGX
4,000, Hair relaxer cream all sizes averagely UGX 3,500, Avocadoes body cream smoother
all sizes averagely UGX 45,00 and hair glow UGX 4,000. With these prices in mind, I will fill
in the price section of the business plan.

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Products, services or range of products offered

Perfumes 1st Lemon Hair Avocadoes Hair glow


class body relaxer cream body
lotion cream
smoother

Costs 4,500 4,000 3,500 4,500 4,000

How 35,000- 10,000- 9,000- 21,000- 10,000-


much lowest 40000- lowest 12 lowest, 10000- lowest, lowest, 12000-
customers highest 000- highest (market highest
25000-
are willing (corporate highest vendors
highest (retailors and
to pay (students and retailors)
Employees market
and low (tourists
and tourists). vendors)
income and

earners) corpora ate


employees)

Price 38000 9000(stu 10000(market 25000(touri 11000(market


(cooperate dents) vendors and sts) vendors and
employees), 11000(lo
retailers) 20000(corp retailors)
w
39000 (tourists) orate
income
employees)
earners)

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Reason for Relatively Low Relatively High price is Relatively
setting this high price price low price in relation to low price will
price will help will will ensure a the high quality ensure a high
us recover enable us high demand of the products demand from
the get a wide from our produced. our
costs market intermediaries
intermediaries
incurred from the
who can sale who can sale at
in low
at a profit a profit
production income
n.
earners
and
the
student s.

Discounts No discount No vendors No discount vendors


will be given will be discount and retailers will be given and retailers
to given will be that buy in that buy in
the given large large
followingg quantitiess quantities s

customers

Reason for N/A N/A Discount N/A Discount will


giving disco will be given be given to
unts to the vendors the vendors
and retailers and retailers
that buy in that buy in
large quantitie large quantitie
s s

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Credit will vendors No credit Vendors Vendors and Vendors
be given to will be and retailors retailors
retailors
the followin given
g

customers

Reason for To N/A To create To make To create


giving credi increase ve a wider vendors a wider
t ndor loyalty market. stop selling our market.
to our competitor pro
products ducts.

5.3 PLACE

Our location is in Mbarara, Easy View Arcade, Garage Street. The location is very good
since they a lot of hair dressers in this arcade hence full of women who potential customers for
the cosmetic products because they want to look good and. The place is chosen due to a boom
of commercial activities, an expected client base from students, tourists, corporate
women employees, and the large population is women as compared to men. The cosmetic shop
will have adequate lighting.

Location.

we plan to rent a place in Mbarara, Easy View Arcade, Garage Street. It is located opposite
Agi Motel near bus park garage street.

The location is chosen because of the following reasons.

It is ideal because there is a high customer traffic Enough packing space for the clients/
individual customers. Clean environment and closeness to the main road that is Mbarara-
Masaka road.

Method of distribution , Individuals retailer wholesalers distributors The ways of distribution


are chosen because of the following reasons.

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Retailers, distributors and wholesalers, will buy and sell in bulk to our final customers which
we cannot sell to directly

Individuals, will be used because we have a high customer traffic and so we shall sell to them
directly at our main outlet in Mbarara.

Distributors, will help to deliver our products to all our customers all over the country
and even outside countries in East Africa in the right time and place.

5.4 PROMOTION

We intend to invest heavily in advertisement of our products through the use of signposts,
face book, use of radios such as; Galaxy, Vision radio, which have a wider coverage. We also
intend to use a highly skilled marketing manager to market our products; for example; in
Kampala town universities, offices and other local areas around. We intend to also visit
personally our general stores and major wholesalers of our products and use other few methods
of promotion.

The objectives of promotion are;

⮚ To create awareness of our products to our customers

⮚ To persuade the customers to prefer our products to those of our competitors

⮚ Communicate to the potential customers about where our products can be found.

⮚ Create a good initial image of our products in the society and our potential customers.

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CHAPTER 6
OPERATIONS
6.1 Form of Business operation

The business will operate as;

⮚ A Sole proprietorship

The reasons for choosing this business are;

⮚ Low cost involved in starting the business

⮚ Easy registration process of the business

⮚ Simplicity in starting the business

⮚ Increased level of control over the business

⮚ Easy decision making in the business

⮚ Easy taxation criteria that is business profits

The owner of the business will be

Name: AKAMPURIRA BRIAN

Description of skills:

⮚ Business manager and high selling skills

⮚ Marketing skills and customer care skills

⮚ Sales promotion skills

⮚ Motivational skills

⮚ Leadership and management skills

Relevant experience

⮚ Experienced with mixing appropriate chemicals and natural fruits in making the cosmetics
and perfumes acquired from the three years working with Baby Face Organic.

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⮚ Experience in managing business that is a retail shop already owned in previous years.

⮚ Experience in working with and through people (leadership) and motivational


experience to the employees.

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CHAPTER 7
ENTREPRENEURIAL TEAM AND ORGANIZATIONAL STRUCTURE

7.1 STAFF

I do not know much about running my own business but I plan to work hard and study to
learn all in need to know. According to my staff plan, I will be responsible for buying inputs
and assume the senior management role.

The business will be small so I will need more few employees to assist in some functions
as follows.

The operations staff will be responsible for manufacturing and mixing the inputs to produce
the cosmetics and all our products and will include three employees with the relative skills as
will be described and one of the three will assume the role of being a supervisor of production
and operations.

Sales and marketing. I will need one employee who will be responsible for marketing
the products and selling at our main out let in Mbarara to our direct customers and will be

responsible for customer service.

Two more employees responsible for offering additional services to our customers that is
skin therapy and hair dressing.

Two more family members will be employed and will assume the roles of stock control,
and selling to the market vendors, retailers and distributors and record keeping role
respectively.

7.2 Staff form

Task Required skills and Performed by Monthly


experience pay

Senior manager, buying Business management and Akampurira UGX


inputs and overall leadership skills. 1000000
Brian
supervisory work

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Operations and Skills in mixing different Three Each
production staff inputs and making fulltime employees UGX
perfumes and cosmetic
350000
products

Sales and marketing Skills in customer care and One fulltime UGX
marketing and sales 400000
employee

Skin therapy and Skills in massage/ rubbing, Two UGX


hairdressing and fulltime employees 300000

hairdressing and women

Record keeping and Skills in fundamentals of One family UGX


accounting and record 350000
accounting member
keeping

Stock control, selling to Skills in supply chain One family UGX


market vendors, retailers management and personal 350000
member
and selling skills

distributors

There are few Entrepreneurial team which involve Strategies. This will include the
communication strategy, marketing strategy, supplier relationship strategy, promotion
strategy, Human resource management strategy and competitive strategy.

7.3 Communication strategy

One of the most important aspects of a successful launch is a positive publicity for our
cosmetics products. We will develop awareness campaigns to promote our product through
several avenues. Our management team will fiercely have pursued positive perception through
societal endorsement promoting the benefits of our product by actively seeking local news and
media coverage to help on awareness.

7.4 Competitive strategy

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Position of the business in the heart of Mbarara and the whole of Uganda and also being near
the high market area makes the product easily accessible by our customers. An aggressive
advertising campaign will be undertaken so that we create much awareness of our product than
our competitors through our highly skilled management team and employees that will be highly
in contact with our customers.

7.5 Marketing strategy

Bare Cosmetics Enterprises plans to communicate through outdoor advertising and


television advertising to generate sales. This will be spearheaded by our marketing team to
manage the marketing campaign. The key message associated with our products is high quality
beautifying cosmetics and skin care.

7.6 Human resource management strategy.

Bare cosmetics Enterprises will start up with its experienced members in various fields that
are useful in the business to form competent team of trustworthy staff for efficiency and
effective operations and goal oriented. Provision of favorable working conditions to maintain
a high degree of personal development and satisfaction of both employees and employers and
ensuring that our employees are constantly trained where need arises.

7.6 Supplier relationship strategy.

Briox Cosmetics Enterprises will ensure a close working relationship with our suppliers
and where necessary undertake supplier development programmes that is providing
improved varieties of agricultural inputs for example grapes, Chew cumber, palm fruits,
avocadoes and lemons and tools that will ensure constant supply of our core inputs.

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Chapter 8
FINANCIAL PROJECTIONS
8.1 FINANCIAL PLANNING

We shall follow the following steps to plan and monitor the financial situation of Bare
cosmetics enterprise.

1. We Make a sales and costs plan

2. We make a cash flow plan

3. Compare records with both plans every month

4. And we shall take action if anything goes wrong

8.2 A SALES AND COSTS PLAN.

A costs and sales plan shows the sales, costs and profits my business is likely to have each
month and it is made annually.

I have forecasted my sales and costs for the first year in business and I have been helped by
my productions team to develop the forecasts.

Sales and costs plan 2018 (00)

Details Jan Feb Ma Apr Ma June July Aug Sept Oct Nov Dec
r . y

Sales 200 250 400 400 700 1000 1000 1000 1000 1500 2000 2000
0 0 0 0 0 0 0 0 0 0 0 0

Direct 100 150 200 200 300 4200 4200 4200 4200 4800 5000 5000
0 0 0 0 0
material c
osts

Direct 200 200 200 200 200 2000 2000 2000 2000 2000 2000 2000
0 0 0 0 0
labour

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costs

Indirect 2500 1500 1500 1500 150 150 150 150 150 150 1500 1500
cost 0 0 0 0 0 0

Net (350 (250 (150 (150 500 230 230 230 230 670 1150 1150
0) 0) 0) 0) 0 0 0 0 0 0 0
profit

8.3 CASH FLOW PLAN

To make sure that I do not run out of cash, when I start up by cosmetics enterprise, I make a
cash flow plan for the first 12 months and below is a sample for the first seven months.

CASH FLOW Jan Feb March April may June July Aug.
PLAN (000)

Cash at the start of 7300 23700 19700 12400 11100 7800 25000 26500
the month

Cash in from sales 2000 2500 4000 4000 7000 10000 10000 10000

Any other cash in 7000 5000 …… …… …….. ……. ……. ……..

Total cash in 16300 31200 23700 16400 18100 17800 35000 36500

Cash out for direct 1000 1500 2000 2000 3000 4200 4200 4200
material costs

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Cash out for direct 2000 2000 2000 2000 2000 2000 2000 2000
labour costs

Cash out for indirect 2500 1500 1500 1500 1500 1500 1500 1500
costs

Cash out for 8000 …… …… …… …… …… …… ……


planned investment
in equip

Loan repayment …… …… 150 150 150 150 150 150

Any other cash out 200 …… …… …… …… …… …… ……

Total cash out 13700 5000 5650 5650 6650 7850 7850 7850

Cash at the end of 2600 26200 18050 10750 11450 9950 27150 28650
the month

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8.4 Capital required for this startup.

Required startup capital


Investments
∙ Business premises
Renting of the building/floor ................................................ 1,200,000
∙ Equipment
Machines Buy .............................8,000,000
Van Lease (2 years) ............ 5,000,000
Office furniture Buy ............................. 1500,000
Fittings Buy............................. 1,200,000
Massage equip Buy ..............................1,500,000
Driers Buy .............................. 1,600,000
Cloths and uniform Buy ............................. 2,000,000
Total equipment startup capital… .................................... 20,800,000
∙ Working capital
Stock of raw material................................ 15,000,000
Promotion ................................................. 1,000,000
Wages ....................................................... 7,500,000
Rent .......................................................... 600,000
Leasing..................................................... 2,200,000
Insurance ................................................... 80,000
Other costs ................................................ 4,000,000
Total working capital… ....................................................... 30,380,000
Total startup capital… .......................................................... 52,380,000

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Chapter 9
CONCLUSION

Beauty and beauty products have always found a favorable audience and continue to be popular
and sought after products, thus making beauty and cosmetic products a serious business
opportunity that is witnessing a steady and consistent growth. This growth and demand for
cosmetic products is seen more so now especially in the times of social media platforms, video
blogs and Instagram, when every new cosmetic product is tried, tested, promoted and
advertised via several influencers and celebrities.

Starting a fashion business is a good opportunity to consider for aspiring entrepreneurs.


Cosmetics business is evergreen & popular sector that has several new products being
introduced routinely and is something that most individuals require routinely.

Cosmetics refers to products and solutions used for skincare, nails, haircare, complexion, which
take care of them and help enhance the skin, hair, nails, complexion, thus further resulting in
an overall enhancement of one’s appearance.

As everyone uses cosmetics so this business will never go out of trend.

The demand for cosmetic products is increasing from different sections of the population. So,
if you are planning to start this business then it will give you a high profit and there is a huge
scope for growth if you worked in a planned way and follow the steps mentioned below.

While starting this business you don’t need any technical skills to run it. At the initial stage of
your business you are not required to invest a huge amount in it and gradually you can increase
the investment in your business.

Without keeping up with the trends you cannot sell your products to your customers. If you
want to give a good competition to your competitors then you must provide more latest
products than your competitors.

You can be up to date with the latest trends in cosmetic products by reading different fashion
articles. You can even subscribe to different well-known websites so that you can stay updated
with the latest products and can provide those products to your customers.

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APPENDIX

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BILBLIOGRAPHY

 https://www.99businessideas.com/beauty-business-ideas/
 https://zocket.com/blog/start/cosmetic-business-plan/
 https://startupjungle.com/how-to-cosmetics-business/
 https://www.zenbusiness.com/best-new-business-ideas-in-the-beauty-industry/

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