Business plan for Beauty and Spa business

RUNNING HEAD: Business plan for Beauty and Spa business
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Name of the student
Topic Business plan for Beauty and Spa business
University name

Business plan for Beauty and Spa business
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Executive summary
This document focuses on the business plan to identify whether it will be profitable to
set up new business in London or not. This Kohinoor Beauty and Spa private limited
company would be set up as private company initially due to its less legal compliance
program. However, after analysing the internal and external factors of the business, it is
evaluated that newly set up Kohinoor Company would have high profitability in its business
if it is set up in London. Nonetheless, it will offer high quality of beauty and spa products and
services to attract clients in market.

Business plan for Beauty and Spa business
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Table of Contents
Executive summary...............................................................................................................................2
Table of Contents..................................................................................................................................3
Introduction...........................................................................................................................................5
Business overview.................................................................................................................................5
Aim of the business...........................................................................................................................6
Mission..............................................................................................................................................6
Vision................................................................................................................................................6
Purpose..............................................................................................................................................6
Structure of business..............................................................................................................................6
Products and services offered by Kohinoor Beauty and Spa..............................................................7
Unique selling price of the Kohinoor Beauty and Spa...........................................................................8
Target market........................................................................................................................................8
Market opportunities and risk................................................................................................................9
Market mix of the Kohinoor Company................................................................................................11
Market and industry analysis...............................................................................................................12
Portal’s five model industry analysis...................................................................................................12
Strategic map.......................................................................................................................................14
Draft preparation of the strategic Map adopted by Kohinoor Beauty and Spa.................................14
Balance score card of Kohinoor Beauty and Spa.................................................................................15
Competitors analysis...........................................................................................................................16
Marketing strategy and plan................................................................................................................18
Operation plan of the Kohinoor Company...........................................................................................21
Funding required setting up Kohinoor Beauty and Spa.......................................................................24
Funding of the business...................................................................................................................25
Preparation of the income statement of the Kohinoor Company......................................................25
Projection of the balance sheet for the three years...........................................................................28
Projection of the cash flow statement..............................................................................................33
Analysis of the business...................................................................................................................36
Conclusion...........................................................................................................................................36
References...........................................................................................................................................38
Appendix.............................................................................................................................................42

Business plan for Beauty and Spa business
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Introduction
In this documents business plan for Beauty and Spa business have been prepared
which will divulge the potential outcome of setting up beauty and spa in London. It is
analysed that success of business plan is highly based on the strategies formulated and
internal and external business factors. In this document, in depth analysis has been conducted
to evaluate the business viability and feasibility of the implemented business plan in the long
run such as marketing and industry analysis, market opportunity and risk, competitors
analysis and marketing plan have been taken into consideration. The name of the new
business would be Kohinoor Beauty and Spa private limited company.
Business overview
This Kohinoor Beauty and Spa private limited company would be set up as private
company and after that with the expansion of the business, same will be converted to public
limited. However, with the increasing amount of turnover, the nature of business would
change to public limited company. In the initial years, all the services and products would be
sold at very low price. In the first year, company will strive to achieve breakeven point, after
that it will go for earning profit. This business will be located near the city of London. The
business is aiming to be the one to go for royalty treatments for all types of people in the
market. Kohinoor aims to provide quality handmade products for clients to purchase and
receive prestigious treatments when required. However, the store will be opened up in
Shoreditch area due to its attraction to young people in London. This market is accompanied
by the high numbers of visitors and women and people age between 20 to 35 years age would
be the target customers for Kohinoor Beauty and Spa private limited company.

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Aim of the business
The business is aiming to be the one to go for royalty treatments for all types of
people. The company came with the name Kohinoor, as it symbolises royalty. The Kohinoor
is known to be one of the most well-known diamonds in the world (Lifestyle beauty, 2017).
Mission
It offers all the spa and chiropractic services to clients. The mission of Kohinoor is to
provide world class spa experience for both clients and employees at large.
Vision
It has vision to grab at least 25% market share of the beauty spa services in London
by creating competitive advantage in cost leadership and product differentiation strategy.
Purpose
The purpose of having a spa with handmade products is because of the benefits it has.
Having fewer chemicals working with the skin will be better for Kohinoor’s consumers. Our
aim is to provide the best. This contributes to long term benefits. Telegraph has stated, since
2016, there was a growing interest in natural and organic beauty; this curiosity was with all
ages of women (Lifestyle beauty, 2017).
Structure of business
Kohinoor will be owned by two directors who have an equal partnership in the
company. Kohinoor will hire 12 employees. The table below shows the roles that the
employees will have. The business process of organization starts up with the There will be
one marketing officer who will promote the business through the social media. 3 employees

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will be indulged in production services and rest 2 Aestheticians will be indulged in this
beauty and spa services (Abdallah, 2016).
Products and services offered by Kohinoor Beauty and Spa
 Facial- Quick result facial, customized facial, oxygenation facial, powerful
surface peeling facial, Acne-Cleaning treatment facial.
 Body Scrubs and wraps- Aroma Therapy Oil Wrap, Herbology body polish.
 Organic products and services- Body smoothing with the organic treatment
 Hair services and micro treatment- Haircut, Wedding, colouring, single
process head message.
 Facials and body exfoliation that may involve the use of salt glows, body
polish, enzyme peels, and body masks like mud or paraffin
 Massages that include various styles of full body massage, facial massage, and
hand or foot massages
 Wraps and packs used to combat cellulite and reduce water retention
 Hydrotherapy treatments, such as whirlpool baths and hot tub treatments
(Gray, Owen & Adams, 2016).

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Unique selling price of the Kohinoor Beauty and Spa
The Kohinoor Beauty and Spa would offer attractive discounts to its first 1000
customers. However, these services would be provided at its cost to attract more clients in
market. In addition to this, it will also set strategic alliance with the offices and other
organization, to allow their employees to get the spa and saloon services including newly
offered organic beauty spa care at very attractive offers (Hoyle, Schaefer, & Doupnik, 2015).
Target market
The target market for Kohinoor Beauty and Spa would be the primarily the residents
and visitors of Shoreditch area of the London. It could also target business women,
homemakers, college students and business men by using the social media and cyber
computing online search engine functioning (Lubbe, Modack &Watson, 2014).
Geographic
The potential clients for the Kohinoor Beauty and Spa would be more than 10, 00,000 people
in London. It could also grab more clients through social media and cyber computing online
search engine functioning (Boshyk, 2016).
Demographic
It reveals who will purchase the beauty and other spa products and services offered by
company. The business women, homemakers, college students and business men would be
highly attracted with the advance attractive offers of Kohinoor.
Psychographic

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This market will be accompanied with the different values different identity traits, values,
attitudes, interests, and lifestyles from claiming of clients. It will be achieved by grabbing
potential clients through attractive offers (Conway, 2013).
Market opportunities and risk
As per the statistical data, population of the London is 87.9 lacs i.e. more than 35% of
total population are young who are inclined towards availing these beauty and spa services.
Kohinoor Beauty and Spa could easily sale it’s newly developed organic spa and services to
people in Shoreditch area in London. (London, 2017) The main risk which would be faced by
Kohinoor Beauty and Spa is related to the financial and business risk. It is analysed that
setting up of new business would take at least £ 1 million amount of investment. The interest
rate is 12% in London (Finch, 2016). Therefore, it is required to earn more than 12 % return
on investment otherwise it will have to face financial loss. In addition to this, beauty and spa
industry reveals that it has average growth of 15% yearly which is good indicator for the
setting up Kohinoor Beauty and Spa. L’Oreal and Beauty and Melody has increased their
overall turnover by 22% since last three years which shows that beauty and spa industry has
high increased growth rate. Another risk is there are many impacts of using chemical beauty
products on the face. Such as, Parabens and Phthalates are linked in to increasing the risk of
breast cancer (Goi, 2015).
The main market opportunity for the Kohinoor would be starting up new organic
beauty and spa services (Johnston, and Bate, 2013).
There will be several benefits which will come to Kohinoor if the new organic beauty
and spa products and services
Benefits: