Business Plan
1.
Summary.......................................................................................................... 4
2.
Business overview............................................................................................ 5
4.
Marketing......................................................................................................... 6
5.
Team and management structure............................................................................................................... 7
6.
Financial budgets and forecasts............................................................................................................... 8
Market research
Dovile’s
Beauty salon
South street,
Romford,
Essex
Mob.tel. 07880337364
Contents
Page
1.
Summary.......................................................................................................... 4
2.
Business overview............................................................................................ 5
Introduction
Competitive advantage
4.
Marketing......................................................................................................... 6
SWOT and critical success factors
Market research
5.
Team and management structure............................................................................................................... 7
Skills, experience, training and retention
Advisors
Management systems
6.
Financial budgets and forecasts............................................................................................................... 8
Profit and loss forecast
Cash flow forecast
Break-even analysis
Summary
Business
overview
Introduction
This business plan is for a unisex
beauty salon business. This business will operate in beauty sector.
I’ll provide range of most popular
beauty services for men and women – eye and eyebrow treatments (e.g. eyelash
extensions, eyelash and eyebrow tinting), manicure and pedicure, facial and
body massages, instant tan, body and face waxing and make up.
My chosen location is South Street
in Romford, Essex. It is a very busy and popular location with many different
shops and two big shopping centres, it attracts many different people from East
London and it’s a very good location for new business.
I set a few
aims and objectives for our business that helps our organisation to show itself
as a distinctive brand from other companies and have a business strategy.
The first aim is for breakeven – to breakeven within 1 year. Objectives - to price products correctly and to make sure it’s competitive with other businesses. We’ll also need to work on business advertising.
The first aim is for breakeven – to breakeven within 1 year. Objectives - to price products correctly and to make sure it’s competitive with other businesses. We’ll also need to work on business advertising.
The second aim for survival –to stay in
business for 10 years. Objectives – always improve quality of our services and
promotions, which will attract new customers and help to build relationships
with regular customers.
The third aim for
diversifying – to expand our business within 3 years. Objectives - to open at
least two more salons in different locations. To do this we’ll need and to
expand our products and services range, this will attract more customers and
increase business revenue.
Competitive advantages
Our business will have a few strong
advantages over competitors. I noticed that most of my competitors are selling
their services for very high prices, probably not affordable for an average
customer.
Firstly, we’ll provide our services
at lower prices than our competitors, because we already found suppliers that
will supply us the same or even better products than our competitors at lower
price. This will give our firm the ability to sell or services at a lower price
than our competitors and generate a larger margin on sales. Our working hours
will be longer than other beauty salons in Romford. There’ll be more people
coming to our salon after work. We’ll also provide very high quality of
services and we’re planning to create very luxurious design of our salon and
website. This will make us different from other salons in Romford, as they all
look quite similar and their design is very simple.
Marketing
SWOT and critical success factors
Internal
|
Strengths
|
Weaknesses
|
Internal
|
External
|
Opportunities
|
Threats
|
External
|
Market research
I researched Romford demographics to find out
my target market and what will be possible customers. My target market will be
20-45 aged men and women but mostly women. There are slightly more women living
in Romford than men and it’s very good for my business as women visit beauty
salons more regularly than man and they use wider range of procedures than men.
I will still include all the possible treatments for men to attract the most
customers possible.
I researched my competitors to find
out strengths and weaknesses of services they provide, website design. It was
also important to find out their opening hours, compare their prices. This
information will help me to avoid mistakes they’ve made, make better prices
than theirs and to be more attractive for customers than they are.
Name of salon
|
Nature of business
|
Opening hours
|
Notes
|
“Tahiti”
|
Beauty salon
|
Mon- Thu 9am – 10pm
Friday –
9am – 6pm
Saturday – 9am – 4pm
|
High prices, variety of services, but price list
are not organised. Wouldn’t call it premium even if it has high prices,
website design looks cheap.
Website structure is good, not too much information is written, and it extends in new windows. Good working hours |
“Beauty pot”
|
Beauty salon
|
No information
|
Looks more like beauty salon than “Tahiti”, good
colour scheme of website, soft, gentle colours, but not good for unisex
salon.
They don’t have a price list and I think it’s not
good, customers need to have an idea of how much will they have to spend in their
salon. Can only get in touch with them
by phone.
Poor range of services and not enough information
about them comparing with “Tahiti” beauty salon. No information about working
hours which is bad for customers.
|
“Halls of Ivy”
|
Beauty Salon
|
Mon, Tue –
9am – 5pm
Wed, Thu – 10am – 9pm
Friday – 10am- 8pm
Sat – 10am – 6pm
|
The first thing I noticed – too
much text in a home page, confusing. Nice colour scheme, good for unisex
salon.
Looks more like beauty academy than beauty salon. Variety of services, but don’t provide make – up services. Nice and clear price list, good prices, quite cheap services. |
“Elegance of Gidea Park”
|
Beauty Salon
|
Mon – 10am – 6pm
Tue – closed
Wed – 10am – 6pm
Thu – 10am –10pm
Friday – 10am – 6pm
Sat –
10am – 5pm
Sunday – 10am
– 4pm
|
First impression – doesn’t look
very professional. Bad colour scheme – grey background and black font.
Messy and confusing working
hours. Why is it closed on Tuesdays?
Nice and clear price lists,
information about prices extends in new windows.
Very good use of graphics.
Average or high prices.
|
“Beauty heaven”
|
Mobile beauty therapist
|
Flexible
|
Nice colour scheme, contrasting
colours, but not good for unisex. Too much text written, it confuses.
They don’t provide popular services for men – back, chest waxing. Prices are quite low but could be lower for mobile therapist. Flexible working hours – good for customers. |
Prices charged by my competitors:
Treatment
|
Tahiti
|
Beauty pot
|
Halls of
Ivy
|
Elegance of
Gidea Park
|
Beauty
Heaven
|
Brazilian wax
|
£20.45
|
£25.00
|
£20.00
|
||
Half leg wax
|
£16.50
|
£12.00
|
£14.00
|
£11.00
|
|
Full leg wax
|
£26.75
|
£17.00
|
£22.00
|
£14.00
|
|
Under arm wax
|
£11.25
|
£7.00
|
£9.00
|
£6.00
|
|
Bikini wax
|
£12.25
|
£8.00
|
£9.00
|
£8.00
|
|
Upper Lip or Chin wax
|
£7.15
|
£4.00
|
£6.00
|
£4.00
|
|
Full back wax
|
£29.75
|
£15.00
|
£18.00
|
||
Upper back wax
|
£8.00
|
||||
Chest
|
£18.50
|
£8.00
|
£18.00
|
||
Abdominals
|
£8.00
|
||||
Additional area
|
£4.00
|
||||
Special make-up
|
Prom Make-
Up £26.95
£35.95
|
||||
Make up consultation
|
£51.25
|
||||
Eyelash extensions
|
Full Set £89
Half Set £52 Lash Flicks £36 Lash removal £5.00 Duralash Eyelash Extensions £19.95 LaLa Lashes Application £5.15 |
+
|
Full Set £38 -£55
Half set
£28 -£45
Infills
£15 -£30
Removal
£8.00
Express budget set -
£25.00
Party lashes - £8.00 -
£12.00
|
Party lashes - £20.00
|
|
Eyebrow tint
|
£6.45
|
£5.00
|
£6.00
|
£5.00
|
|
Eyelash tint
|
£14.50
|
+
|
£7.00
|
£10.00
|
£7.00
|
Lash and Brow Tint
|
£17.95
|
£14.00
|
£10.00
|
||
Eyebrow Shape Wax or Tweezers
|
£7.15
|
£5.00
|
£8.00
|
£4.00
|
|
Threading - eyebrows
|
£8.75
|
||||
Eyebrow Wax and Tint
|
£12.25
|
||||
Eyebrow wax
|
£7.15
|
£4.00
|
|||
Express Manicure
|
£20.50
|
+
|
£12.00
|
£25.00
|
£14.00
|
French Manicure
|
£21.50
|
£30.00
|
|||
Express Pedicure
|
45 min £30.75
|
+
|
£18.00
|
£30.00
|
£15.00
|
French Pedicure
|
£35.00
|
||||
Pedicure + Reflexology
|
|||||
Nail extensions – Gel/ Acrylic nails
|
Gelish Manicure £39.95
Gelish Pedicure £49.95 |
Full set of overlays - £20.00
+tips £25.00
Infills £18.00
Repair (each) £1.50
Soak off - £5.00
|
Full set tips with French overlay -
£30.00
Acrylic overlay - £25.00
Overlays - £18.00
Infills - £17.00
|
||
Aromatherapy massage - body
|
£51.25
|
||||
Stress relief massage
|
£25.00
|
£20.00
|
|||
Back, neck and shoulder massage
|
£18.00
|
£25.00
|
£16.00
|
||
Body scrub & massage
|
£35.00
|
||||
Body scrub & moisture
|
£25.00
|
||||
Full bodywrap
|
£66.75
|
||||
Swedish Massage
|
£38.00
|
||||
Cellulite massage
|
30mins £16.95
|
||||
Aromatherapy - facial
|
£25.00
|
||||
Deep cleanse - facial
|
Children - £29.95
men - £46.25
|
£32.00
|
|||
Anti ageing - facial
|
£66.75
|
||||
Acne treatment
|
£31.95
|
||||
Basic facial
|
£40.95 – 1h
|
£18.00
|
£36.00 – 40min
|
£19.00 – 30min
|
|
Instant tan – full body
|
£37.95, £27.75,
£23.75
|
+
|
£12.00
|
£25.00
|
£20.00
|
Instant tam – half body
|
£10.00
|
£18.00
|
|||
Instant tan - face
|
£5.00
|
||||
Instant tan - course
|
Of five- £50.00
|
||||
Instant tan – face shoulders and arms
|
£19.50,
£17.50
|
£16.00
|
|||
Instant tan – Legs only
|
£16.50 , £17.50
|
||||
Promotion plan
In my research I discovered that
reputation is very important for beauty salons. People tend to choose beauty
salons that their friends or relatives recommended for them. This means that
most effective ways to promote my business will be through public relations.
My marketing method will be marketing
mix:
1. I’ll provide high quality and
attractive beauty services – will choose longer working hours. Will make the
salon and its website look good and luxurious, will use good colour scheme with
contrasting colours suitable for unisex salon in both of them. Will provide wide
range of services. I’ll choose staffs that are high qualified, have experience
working in beauty industry and have very good customer service skills.
2. at lower price than my competitors.
Price lists in the salon and in website will be nice and clear written with
easy to read fonts.
3. In the busy street, popular
shopping and leisure destination; with parking nearby (it’s very important for
customers).
4. Will use the most suitable promotion.
a) Firstly I’ll need people to know
about my business so I’ll hire people to handout my business’s leaflets.
b) Then I’ll advertise my business
on Facebook. It’s free and effective way to advertise business as so many
people are using this social website. It’s similar method of promoting business
as word of mouth method. I will create my beauty salon page and share it with
my relatives and friends, and then I’ll ask them to share with their friends
and relatives.
c) In my research I discovered that
reputation is very important for beauty salons. People tend to choose beauty
salons that their friends or relatives recommended for them. This means that
most effective ways to promote my business will be through public relations and
good customer service. I’ll make sure that my staffs always provide good
customer service and that clients are satisfied. This is too attract more
people, have regular customers and a good reputation.
Team
and management structure
I don’t have a beauty background so
I’ll need to ensure the staffs I’ll take on are highly qualified. It is
essential that staff is able to provide high quality services so I’ll require
them to be qualified to at least
level three in beauty therapy or holistic treatment.
Available qualifications:
NVQs; City &Guilds; SVQs; Vocational
Training and Charitable Trust (VTCT) certificates; BTEC HNDs; Confederation of
International Beauty Therapy and Cosmetology (CIBTAC); Comite International
d’Estethique et de Cosmetologie (CIDESCO); ITEC and Edexcel qualifications.
Management
Organisational structure of business structure
will be hierarchical. The owner – me, will be at the top of structure.
Salon Owner - my primarily concerns will be customer service, human
resources and financial details. I will make hiring, marketing, property,
inventory and design decisions, and be responsible for staff licensing and
business certifications.
Salon Manager – will be reporting to the salon owner. The manager will
work with staff members to improve performance and ensure quality service,
explain them operational procedures and functions of our business. The manager
will also be in cooperation with the salon owner.
Therapists and Technicians – each of them will perform his own
specialty service and will be reporting to the manager.
Receptionist - a salon receptionist will report to the salon's manager.
Duties will be to answer the telephone, schedule appointments, greet customers,
maintain reception’s cleanliness, explain services to callers and visitors, and
operate a cash register. The receptionist will be responsible for creating a
comfortable and welcoming atmosphere for customers.
Salon assistant - a salon assistant will provide additional support
to the staff e.g. laundry, handling retail sales, sterilizing equipment,
sweeping floors and preparing clients for services. Client preparations that a
salon assistant may Assistants will report to the manager or to other staff
members.
Legal requirements
1. As soon as I’ll choose a property for my business I’ll have to
apply for a beauty salon’s license with the Local Council – and they
only give licenses if you have qualified staff.
2. Treatments that will
probably need a licence: aromatherapy, massage, beauty treatments, pedicure,
reflexology and manicure. Too offer those treatments I’ll need to register with
the Care Quality Commission.
3. Health and safety is very important. Some
products used in beauty salons can contain harmful
substances that can cause skin and respiratory problems, so it’ll essential to
assess the safety of my products and obtain hazard data sheets from the
manufacturers. The Control of
Substances Hazardous to Health (COSHH) Essentials can help to comply with
safety laws.
4. I’ll need a license from Phonographic Performance Limited
(PPL) if I’ll want to play sound recordings in my salon.
5. Parking is essential alongside the location as most clients leave
salons with no makeup or maybe have some reddening on the skin after wax
treatments. I’ll need to check parking allowances for my premises.
6. As a self employed person I’ll have to pay taxes: Class 2 NICs, income
tax and Class 4 NICs.
Financial
budgets and forecasts
Attach the following financial documents
to the business plan, together with brief notes explaining them:-
Profit and loss forecast
Cash flow forecast
Break-even analysis
