Business Plan for Beauty Bounce Salon

The business plan outlines the establishment of Beauty Bounce, a salon offering personalized services for good looks. It includes a marketing analysis, financial projections, and operational structure. The salon will offer a wide range of services, including hair cutting and coloring, nail and eye-related services, and more. The marketing strategy will focus on social media and traditional marketing techniques. The financial projections show an increase in sales and repeat customers, and the operational structure includes a team of 12 professional employees. The legal structure is sole proprietorship, and the salon will have three physical stores and an online website. Key performance indicators will be used for monitoring and control.

Project 2

TABLE OF CONTENTS
OVERVIEW....................................................................................................................................3
Vision..........................................................................................................................................3
Mission........................................................................................................................................3
Business objectives.....................................................................................................................3
Description of products and services..........................................................................................3
MARKETING ANALYSIS.............................................................................................................3
PESTLE analysis.........................................................................................................................3
SWOT.........................................................................................................................................4
Competitor analysis.....................................................................................................................5
STP approach..............................................................................................................................5
Marketing mix.............................................................................................................................6
Operational and legal structure...................................................................................................6
Financials....................................................................................................................................6
Monitoring and control...............................................................................................................8
REFERENCES..............................................................................................................................10

OVERVIEW
In the current competitive and modern working environment, the people have become
more conscious relating to the way they appear and way of living. Thus, there is high
requirement of focus on personal well- being and standard of living. With reference to current
scenario, there is development of business idea of starting up a Beauty Salon, named Beauty
Bounce.
Vision
The vision of company involves providing personalised services to consumer and provide them a
perfect blend of good looks which they require.
Mission
The mission of Beauty Bounce involves providing heavenly experience to consumer and relaxing
environment so that they can create good looks.
Business objectives
 To increase the sales by 23% till the end of July 2022.
 To increase the number of repeat consumers by 7 % every month.
 To raise the investment by 12 % in use of latest technology so that personalised services
can be provided to consumers.
Description of products and services
The product and services of Beauty Bounce salon involves a wide range of variety. The
salon will be providing all the services which a good salon provides. But the major focus is over
providing good hair cut along with hair colouring. In addition to this, another service provided to
consumer will involve relating to nail and nail extension (Benzon and et.al., 2019). Moreover, it
will also include the services relating eyes that is eyelashes and eyebrows for women as well.
along with this, Beauty Bounce will be providing all the services which a salon need to provide.
MARKETING ANALYSIS
PESTLE analysis
 Political factor- Currently the tax rates are low and this will help Beauty Bounce in
improving the working efficiency as they have to pay less taxes.

 Economic factor - The consumer spending or the purchasing power is increasing. Hence,
this acts as an opportunity for Beauty Bounce as more people will buy their product.
 Social factor- With respect to the current environment, perception and attitude of
consumer has shifted more towards their looks and appearance. Thus, because of this it
will create an opportunity for Beauty Bounce.
 Technological factor- There are many different technology being used within beauty and
wellness is important and Beauty Bounce is complying with all latest techniques which
makes it performance much better.
 Legal factor - With respect to legal aspect, Beauty Bounce undertakes the use and
compliance with all the laws and regulation relating to health and safety and this
improves the working efficiency of company and its presence.
 Environmental factor - The environment involves the protection of environment and
society and this improves the working of company and society as well. currently
consumers have become conscious relating to the protection of environment and this will
improve the working efficiency of company. Beauty Bounce is complying with all the
environment protection laws and strategies are used like CSR and others.
SWOT
Strength
 Key strength of Beauty Bounce is that it employs professional and expert hair artist
 Along with this another strength is the market research is very strong which help Beauty
Bounce to comply with latest trend.
Weakness
 The weakness of company involves that they are not globally established.
 Another weakness involves the online presence is low
Opportunity
 The key opportunity for Beauty Bounce is to work on expanding the business in other
countries as well.
 In addition to this, another opportunity for company is to work on online website and
providing beauty consultancy services online as well.
Threat
 The most common threat for Beauty Bounce is the competition is very high.

 Moreover, frequent changes in the need and preference of consumer also poses threat to
Beauty Bounce and its operations.
Competitor analysis
 Beauty Bounce- The major focus of Beauty Bounce is on hair and eye related service.
The pricing strategy used is penetration because it charges low at initial and then
increases. For promotion use of mix of modern and traditional marketing strategy is being
undertaken.
 Elite Nail and Beauty Studio- The major focus is on services relating to nail like gel
polish for hands and feet and other beauty services as well. The competitive pricing
strategy is used by Elite Nail and Beauty Studio. The focus on only modern and digital
marketing is done.
 Selina’s hair & beauty salon- This salon deals with all the services which a beauty salon
must have. Here the price skimming strategy is used for charging to consumers. Major
focus on modern promotion and some traditional techniques are also used.
STP approach
 Segmentation- The segment selected for the promotion of Beauty Bounce is based on
demographic and behavioural.
 Targeting- The target for promotion of services of Beauty Bounce is on basis of age that
is 22- 55 and on basis of gender that is particularly women will be targeted.
 Positioning - For the positioning of services within mind of consumers, Beauty Bounce
will be focusing on the good quality at nominal range of charges.
Marketing mix
 Product- The product is the thing which is being offered by company and in context of
Beauty Bounce product involves the hair cutting and colouring service (Cunnington,
2019). Along with this, the product also involves services relating to eye that is eyebrows
and eyelashes.
 Price- The pricing strategy that will be used by Beauty Bounce is penetration pricing
strategy. This will be used by company because it provides low price at initial level and
as product is liked by consumer then they increase the price slightly.

 Place- The place refers to as the area through which services will be provided to
consumer. Beauty Bounce will include 3 physical stores. Along with this, online website
will also be created where consultancy relating to beauty and wellness query will be
conducted.
 Promotion- The promotion of services will be done on basis of social media marketing
and also traditional marketing techniques like sales promotion, print media advertising
and others.
Operational and legal structure
The legal structure of Beauty Bounce will be of sole proprietorship because it will be
owned by the single owner only. Hence, all the risk and profits earned by company will be of the
owner itself. Further the operational aspect of salon involves the team of 12 professional
employees. This is necessary because in case the employees will not be trained well then this
will be improving the operational efficiency of salon (Cunnington, 2019). These 12 employees
will be expert in every aspect relating to every aspect of beauty services like hair cutting,
colouring, eye related services, nail related services and many other different types of services.
The management of the services will be done in better manner such that all the aspect of business
is done in proper manner. In case management will not be good then this will be affecting
working and operational efficiency. Hence, the proper management strategies will help company
in improving its performance.
Financials
Funding sources
For running of the business, the most important aspect is to manage the finance because
without it, company cannot operate successfully. There are different sources from which funds
can be arranged which are as follows-
 Borrowing from friends and family is the most common source of finance for gathering.
This is the source wherein Beauty Bounce can borrow money from some family and
friends.
 In addition to this, another source of finance for Beauty Bounce is taking loan from
banks. These banks can be both mortgaged and non- mortgaged (de Silva and et.al.,
2021). Here company can avail loans and against which they have to pay interest.

 Along with this, venture capital can also be used for arranging the funds. This type of
financing is also known as private equity financing which provides funds to the start- up
companies and small businesses which have the potential of long term growth.
Projected income statement

Year 1 Year 2
Particulars
Amount
($)
Amount
($)
Amount
($)
Amount
($)
Sales unit 9500 9690
Selling price 95 96.9
Sales Revenue 902500 938961
Less Cost of Sales 689000 699335
Gross Profit 213500 239626
Gross Profit Margin 24% 26%
Expenses:
Payroll 10000 10600 0
Sales and Marketing 6500 6890
Depreciation 1050 1113
Utilities 1500 1590
Insurance 650 689
Rent 5500 5830
Payroll tax 1500 1590
Less Total operating
expenses 26700 28302
Profit before interest and
tax 186800 211324
Less Interest 1150 1150
Profit before tax 185650 210174
Less Tax @ 20% 37130 42034.8
Net Profit 148520 168139
Net profit Margin 16% 18%
Monitoring and control
For the business plan to be successful it is very necessary for Beauty Bounce that they
effectively monitor the working in better and effective manner. This is particularly because of
the reason that when there will not be proper monitoring then this will be affecting the working
efficiency. Hence, for the proper monitoring Beauty Bounce undertakes the use of KPI that is
Key Performance Indicators for proper monitoring of plan (Gottlieb, 2019). This is important for
the reason that under KPI, company sets an indicator and measures the performance in
comparison to that indicator set. Thus, this will assist Beauty Bounce in improving the working
efficiency and will improve the successful implementation of the plan.

REFERENCES
Books and Journals
Benzon, A. D. and et.al., 2019. A Business Plan on the Establishment of Gandara Palace Salon at
194 AFP Road, Barangay Holy Spirit, Quezon City. Ascendens Asia Singapore–Bestlink
College of the Philippines Journal of Multidisciplinary Research. 1(1).
Cunnington, J., 2019. Face facts-A business loan would help. Professional Beauty, (SepOct
2019), pp.100-101.
D'Anna, G., 2020. Business: The tipping point. Professional Beauty, (Jul/Aug 2020), pp.56-58.
de Silva, M. T. and et.al., 2021. Empowerment through women entrepreneurship: A case from
the beauty salon sector in sri lanka. Journal of Women's Entrepreneurship and
Education. 2021(1-2)). pp.121-146.
Gottlieb, M., 2019. From side hustle to self employed: Turning your beauty obsession into a
business. Professional Beauty, (Nov/Dec 2019), pp.80-81.
Kuan, N. Y., Yang, F. C. and Fei, L. K., 2020. An Application of Quantitative Strategic Planning
Matrix for Small Business: A Case of a Beauty Salon. Global Business and Management
Research. 12(2). pp.24-34.