Business Plan for Hey Beauty Saloon & Spa

The assignment outlines a comprehensive business plan for Hey Beauty Saloon & Spa, covering aspects such as market research, target audience, pricing strategy, and financial projections. It also includes a section on complying with equality and diversity laws in the recruiting process, highlighting the importance of fairness and non-discrimination. Additionally, it addresses the rights of new employees, emphasizing their basic rights to privacy, fair compensation, and freedom from bias or discrimination.

Assessemenet

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Summarising the business plan ..................................................................................................1
REFERENCES................................................................................................................................3
TASK 2............................................................................................................................................3
1. Primary research for Heybeauty salon & spa .........................................................................3
2. Secondary research for Heybeauty salon & spa ....................................................................3
3. Quantitative research for Heybeauty salon & spa .................................................................3
4. Qualitative research for Heybeauty salon & spa ...................................................................4
REFERENCES................................................................................................................................4
TASK 3............................................................................................................................................4
1. Ethical Dilemma of Heybeauty salon & spa .........................................................................4
REFERENCES................................................................................................................................5
TASK 4............................................................................................................................................5
1. How Heybeauty salon & spa will complying with equality and diversity law in recruiting
process.........................................................................................................................................5
2. The rights of the new employee in Heybeauty salon & spa ..................................................5
REFERENCES................................................................................................................................6
TASK 5............................................................................................................................................6
CONCLUSION................................................................................................................................8

INTRODUCTION
Preparation of a business plan is essential for an entrepreneur as it would help in
providing the proper activities in order to set up a new business venture. Business plan helps in
reflecting all the management activities and different information that are essential in order to
start a new business venture. The present report will include a business plan for Heybeauty salon
& spa . Business plan will include complete operations that are required in setting up different
business. Report will also includes the dilemma that are facing up by Heybeauty salon & spa .
The budgeted cash flow for the new business is also prepared.
TASK 1
Summarising the business plan
Industry
The business will be relating to the salon which is involved in the industry of beauty and
cosmetics. Beauty and cosmetics industry is gaining popularity due to increase in demand of this
sector. This industry is gaining popularity due to increase in the income level of customers
which has increased their spending powers. The customers now as days are spending money on
beauty treatments and other beauty products to look attractive and beautiful.
Location
The business will be starting in Edinburgh which is the city situated in United kingdom.
The demand for the products and services offered by salon is more in this city which has
increased demand of this business in that city. The location is selected by identifying the various
demands and needs of customers of that place to provide them products and services according
to their requirement. The location for the salon is selected by gathering information from
customers about the products and services which will be offered by salon to identify the demand
of services in that city.
Target customers
The target customers for this salon will be the people from all age group and will provide
services to the men, women kids etc (Lim, Chae and Jeon, 2014). The salon will provide them
services according to their requirement to attract more customers towards the salon.
Business model
The business model which will be selected for this business will be revenue business
model as it provides information about the different sources of revenue and value for the
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products and services which will be offered by the salon. The revenue model will help the salon
in identifying the different sources of revenue.
Name of the business
The name of the salon will be selected to attract customers towards the business. The
salon will be providing services for all the age group people to increase their market share and
profitability to attract more customers towards the salon. The name of salon will be “HeyBeauty
hair and beauty salon & spa”
Visual Identity
The logo of Heybeauty salon & spa will include name of salon and image of male and
female to provide the customers with information that the salon is providing services for both the
males and females. The salon will be having attractive interior and exterior to gain attention of
the customers. Also, It will have attractive reception and waiting room for the customers to
provide them better experience at the salon.
Values for the business
The salon will include the various values that will include social, environmental and
values relating to equality and diversity. The social values for salon will consist of providing
contribution for the development of society by giving share of profit earned by salon in charity
etc. The environmental values will be related to reducing the wastage of hair cut by degrading
the waste and also can contribute to the environment by reducing the wastage of hairs by
converting them into wigs which can be provided to the cancer patients that have lost their hairs.
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REFERENCES
Lim, S., Chae, H. and Jeon, H., 2014. The Effect of Experience Marketing on Brand Attitude
and Brand Loyalty of Beauty Salon Franchise Stores. Fashion business. 18(5). pp.42-55.
TASK 2
1. Primary research for Heybeauty salon & spa .
It is very important to have the accurate market information regarding the services that
are being offered. Primary research helps the owner to get information directly from the target
customers. This information will assist in providing new data for the business. Primary research
is conducted as it assist in getting the relevant data and the recent trend in saloon and spas
(Brace, 2018). In primary research the the owner can take information from customer via
telephone, emails or face to face conversation.
2. Secondary research for Heybeauty salon & spa
It is a type of research that has already been complied and done by some one else, owner
can get information from the strategies and business operations. The main source of information
of secondary research is magazine, trade journals, blogs, articles etc. Secondary research is not
much affective as it already been used. But secondary research is conducted as the information
provided by this research has wide range of data as compared to primary research. It also saves
time and money of the owner.
3. Quantitative research for Heybeauty salon & spa .
This type of research is methodology that includes mathematical calculation and
statistical graphs. Quantitative market research represents the information of market and
customers requirement as the statistical data analysis method. It helps in representing the
information using the number and mathematical calculations. Quantitative research is conducted
as it helps in highlight the important information in a mathematical framework and through
computerized data of the Heybeauty salon & spa in the industry in which it operates (Levy,
Weitz and Grewal, 2012). The quantitative research use the information that is gathered by
secondary data that represents in a way which makes it more useful for predicting the future
business operations.
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4. Qualitative research for Heybeauty salon & spa .
It is a methodological method that assist the new business on focusing mainly on the
needs and preferences of the customers regarding the services offered. The information from the
primary research will assist in making the analysis regarding the business through qualitative
research. Thematic analysis approach is very useful in conducting the research on the basis of
themes of Heybeauty salon & spa . Focusing on the market segmentation and done research
through interview and discussion with customers (Gustafsson, Herrmann and Huber, 2013). It
will assist in making in responding to the customer preferences in more convenient manner.
REFERENCES
Brace, I., 2018. Questionnaire design: How to plan, structure and write survey material for
effective market research. Kogan Page Publishers.
Gustafsson, A., Herrmann, A. and Huber, F. eds., 2013. Conjoint measurement: Methods and
applications. Springer Science & Business Media.
Levy, M., Weitz, B. A. and Grewal, D., 2012. Retailing management (Vol. 6). New York:
McGraw-Hill/Irwin.
TASK 3
1. Ethical Dilemma of Heybeauty salon & spa .
Considering the scenario, collaboration with a popular website that are offering the a
promote Heybeauty salon & spa on discounted basis will not only saves the cot also helps in
increasing the number of customers. It also helps Heybeauty salon & spa to make more revenue
of business. But, considering the business ethics Heybeauty salon & spa should not unite with
the website (Knapp and VandeCreek, 2012). The reason is, as per the business ethics a company
should treat their employee in such way. But the website is already legally accused of harassing
and bullying its employees. Uniting with such company for promotional sake will create negative
impact on the behaviour of employees of Heybeauty salon & spa . They can be worried from the
fact that, if company just to increase its profit can collaborate to such companies it can also start
such unethical practice in their business also.
It will also affect their image for investors and creditors, uniting with legally accused
company can negatively affect Heybeauty salon & spa also which directly impact on their
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investment. Hey beauty salon & spa will also loose the trust of the customers thus, it will have
great impact on its brand value in market. In UK there are lot of businesses that are facing the
same issues of unethical practices, it involves harassment and bullying of employees, bribery,
facilitation and corruption are also there. The companies are facing many ethical dilemmas which
a company is facing is regarding the safety and security basis, environmental impacts of business
operations (Cook, Hsu and Marqua, 2014). Involving with legally accused company will raise the
question the values of business which includes equality and diversity values of Heybeauty salon
& spa .
REFERENCES
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
Boston, MA: Pearson.
Knapp, S. J. and VandeCreek, L. D., 2012. Practical ethics for psychologists: A positive
approach. American Psychological Association.
TASK 4
1. How Heybeauty salon & spa will complying with equality and diversity law in recruiting
process.
As Heybeauty salon & spa is going to hire two new employees, the firm needs to
consider and established policies which required to adhere certain practices in their recruiting
process. As per Equality law 2010, Heybeauty salon & spa should be ensure that there will not
be any discrimination of the applicants in recruiting process. Firm has to ensure that the applicant
will be free from any discrimination on the basis of age, gender, nationality, religion, belief etc.
Heybeauty salon & spa can compile the law in their recruiting process by making policies that
all applicants will be judged on the basis their skills as per the job description (Barnard, 2012).
Diversifying the recruiting process can be achieved when firm ensures that there will be no
discrimination of applicants or any kind of stereotyping in the recruiting process. As per Equality
law, employer should have positive approach towards having diverse workforce.
2. The rights of the new employee in Heybeauty salon & spa .
According to the Employment right 101, the new employees in the company has basic
rights that employer should given to them. The new employee should be treated fairly in
workplace. The new employees in Heybeauty salon & spa had right of privacy, fair
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compensation and salary and free from any kind of bias or discrimination on the basis of age,
gender, race, nationality etc. According to the Employment Protection act 1975, it helps in
providing the basic rights of employees like unfair dismissal, reasonable notice before dismissal
(Twomey, 2012). All new employees also have rights to know the firm's management and
operational activities, goals and mission of the company.
REFERENCES
Barnard, C., 2012. EU employment law. Oxford University Press.
Twomey, D., 2012. Labor and Employment Law: Text & Cases. Cengage Learning.
TASK 5
1. Budgeted cash flow of Hey Beauty Saloon & spa:
Particulars
Initia
l
inves
tmen
t
Janu
ary
Febru
ary
Marc
h April May June July
Augus
t
Septe
mber
Octob
er
product and
Services
Facia
l Facial Facial Facial Facial Facial Facial Facial Facial Facial
Number of
customers 2450 2573 2701 2836 2978 3127 3283 3447 3620 3801
Average
selling price 18.5 18.5 18.5 18.5 18.5 18.5 18.5 18.5 18.5 18.5
Total revenue
from
beverages
4532
5 47591 49971 52469 55093 57847 60740 63777 66966 70314
product and
Services
Body
Mass
age
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Body
Massa
ge
Number of
buyers 4300 4429 4562 4699 4840 4985 5134 5288 5447 5611
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Average
selling price 15 15 15 15 15 15 15 15 15 15
Total revenue
from Snacks
6450
0 66435 68428 70481 72595 74773 77016 79327 81707 84158
Total revenue
(Inflow)
1098
25
11402
6
11839
9
12295
0
12768
8
13262
1
13775
6
14310
4
14867
2
15447
2
Operating
expenses
Salaries 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500
Advertisement 275 275 275 275 275 275 275 275 275 275
Machineries 1000 0 0 0 800 0 0 200 0 0 200
Furniture 1700 0 150 0 0 0 350 0 0 80 0
Equipments 950 0 0 350 0 300 0 0 0 0 400
Supplier
commission 200 0 250 0 0 80 0 0 350 0
Total
operating
expenses
(Outflow) 3650 4975 4925 5375 5575 5075 5205 4975 4775 5205 5375
Net cash flow -3650
1048
50
10910
1
11302
4
11737
5
12261
3
12741
6
13278
1
13832
9
14346
7
14909
7
Capital
investment
2000
0
Opening
balance of
cash
2000
0
1635
0
12120
0
23030
1
34332
5
46070
0
58331
3
71072
9
84351
0
98183
9
11253
06
Closing
balance of
cash
1635
0
1212
00
23030
1
34332
5
46070
0
58331
3
71072
9
84351
0
98183
9
11253
06
12744
03
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Break-even analysis
Selling price 33.5
Fixed cost 57300
Variable cost 24.5
BEP= Fixed cost/ Selling
price -variable cost
6366.66666
66667
CONCLUSION
By summing up the above report it can be concluded that, preparing a business plan is
very essential in order to start a new business venture. The above report has concluded a plan for
a beauty saloon, named Hey beauty salon & spa. The plan has also concluded a budgeted cash-
flow for the new venture.
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