Business Plan for Pearl Beautique Salon and Spa

Read the business plan for Pearl Beautique Salon and Spa, an online library for study material with solved assignments, essays, dissertation etc. Learn about their vision, mission, values, marketing and promotional strategy, target market, location and timings, organization and MIS, sales forecast, start-up costs, sourcing finance, profit and loss account, cash flow projections and more.

Business Plan

VISION, MISSION, VALUES
Vision:
PEARL BEAUTIQUE‘s vision is to become the leader for the salons and
spa from North West London, by bringing to the clients a new and different
feature about beauty salons, by creating strong relationships between customers
and beauty therapists for a better understanding of their needs and wants in order
to tailor individual services for each one of them.
Mission:
Venture’s mission is to inspire every client in achieving their personal
needs through providing our best practices. However, owners believe that the
beauty is in everyone and we are here to enhance it out for you.
Values:
Saloon values for all three major component of its business which
consist of customers, employees and suppliers.

Business Description
There are several products and serveries that are offered by the company which consist of:
 Gerovital products
 Bruno Vassari Products
 Facial treatments
 Body massages
 Exfoliating body polish
 Body wraps with thermal heat
 Electro body sculpting
 Body waxing
 Nail and feet treatments

Marketing and Promotional Strategy
Marketing strategy
 Offering accessible location near bus underground station with better parking
facilities.
 Providing mobile services to those customer who are unable to visit salon.
 Developing suitable and reliable relationship with customers by understanding
their needs and wants.
 Offering services at affordable prices to attract large number of audience.
 Providing training and development session to the employees about regularly
updating beauty products and technology.

Contd..
Promotional Strategy:
There are two components of this strategy that owners of Pearl Beautique
Salon and Spa are focusing on so as to create awareness about the products and
services offered by the cited firm.
Advertising: Promotions
Online Launch party
Business cards Discounts
Loyalty cards Offers
Flyers Packages
Student accommodation Weekdays offers
Local Newspaper Weekends offers

Identification of Skills Required
Role Total cost £/
week Duties and Work
experience
Skills or qualification
Salon
Owner/Manager/
reception/ senior
beauty
therapist/nail
technician
£ 300/ week for 7
days working, fix
wages
Manage the entire business by taking
care of the stock, training of the staff,
promotions and performance of the staff
as well as the finances of the business by
keeping under control the costs.
Performing beauty treatments and
answering to the calls and emails from
customers.
HND Diploma in Business Management
and currently study for Bachelor of
Honour Degree in Business Management
AAT Level 2 Certificate in Accountancy
NVQ Level 2 in Customer Service
ITEC Diploma in Beauty Level 2&3
Driving license
Senior beauty
therapist/ reception
£370 for 5 days
per week plus
bonuses
Assisting manager for the daily basis
activities and also performing beauty
treatments.
NVQ Level 2 &3 in Beauty
NVQ Level 2 in Customer Service
Driving license
Junior beauty
therapist/ senior
nail technician
£180 for 3 days
per week plus
bonuses
Working part time as beauty therapist and
performing beauty treatments especially
nails treatments.
NVQ Level 2 in Beauty
NVQ Level 2 &3 in Nail Technician
Junior beauty
therapist/ nail
technician
£180 for 3 days
per week plus
bonuses
Working part time as beauty therapist and
performing beauty treatments especially
nails treatments.
NVQ Level 2 in Beauty
NVQ Level 2 in Nail Technician

Market Research

Target Market
Target Customers:
Services offered by PEARL BEAUTIQUE are aiming to attract men and
women, aged 20-55, with different backgrounds but with the same needs and
wants: desire to be pampered, to relax and enjoy in a luxury environment, with
the goal of achieving that feeling to look and feel good from inside to outside.
Nowadays, demand from male customers is increasing as more and more men are
attracted towards such services as well as want maintain the skin properly.
PEARL BEAUTIQUE is targeting to approach the nurseries from the
area and to offer 20% off from all the treatments for any mum that is coming from
the following nurseries: Little Pebbles Nursery, Busy Bees at Mill Hill, Bright
Little Stars Nursery. As market research shows an increase in the male market
using the beauty treatments, PEARL BEAUTIQUE will offer the male clientele
the possibility of using mobile treatments in order to feel more relaxed in their
own intimacy.

Contd..
Competitors:
Looking at the present condition of Spa industry in London UK, it can be said
that there is high level of competition available for the Pearl Beautique Salon and Spa.
However, there are several firms already exiting in the market and providing quality of
services to the target market.
 Spa London Swiss Cottage
 Spa Chic Beauty
Prices:
Affordable prices which can vary from £10 to £40 for the treatments.

Location and Timings
The premises of the salon are situated not far from the Middlesex
University and student’s accommodation therefore the business will target them
as potential customers by offering 10% off from all the treatments. Along with
this, mobile services will be provided within the 5 km range of North West
London so that large number of audience can be reached and demand for services
can be met.
The opening hours are Monday to Friday 9-19 and Sunday and Saturday
appointments only.

Organization and MIS
PEARL BEAUTIQUE SALON AND SPA is a luxury spa that offers
various beauty services such as: facials, body massages, body wraps, focus body
sculpting and toning, body waxing and nail treatments. PEARL BEAUTIQUE
will provide to the clients the best quality of products and services at affordable
prices and in a convenient surroundings: at the salon’s premises or in the comfort
of their own home.

Contd..
Distribution channel:
Volkswagen Golf will be purchased for the use in the mobile treatments, at the
price of £4,400. Through the means, owners are planning to carry out the entire distribution
channel. However, providing mobile services this vehicle consist of all the products and
services that will help in providing suitable and reliable experience to the customers while
getting the treatments.

Sales Forecast
Description Numbers- including mobile treatments plus
premises
Equation Results
Clients in 1 year 10 hours,7days a week, 52 weeks per year,1
hour per service
10*7*52/1 3,640 services per staff
Potential earnings if
working every day
3,640 services *£20 average
price/service*3staff
3,640*20*3 £218,400
Sales forecast for 1st year 55 % of potential £218,400 55% * £218,400 £120,120
Sales forecast for 2nd
year
Increase with 20% from Sales forecast 1st year (20%*£120,120)+£120,120 £144,144
Sales forecast for 3rd
year
Increase with 20% from Sales forecast 2nd year (20%*£144,144)+£144,144 £172,972.2

Start up Costs
Equipment £ 5,452
Stock for salon use £ 2,500
Vehicle £ 4,400
Vehicle insurance plus other taxes for 1 year £ 1,065
Fuel for 3 months £ 600
Rent deposit (3 months) £ 3,900
Furniture (reception desk, seats, couch for waiting area etc.) £ 1,500
Premises Insurance (6 months) £ 570
Marketing ( website, business cards, flyers, brochures) £ 1,500
Business Licenses (Band A+ Band B + Band C) for 1 year £ 966
Professional liability insurance for 1 year available at
www.professionalbeautydirect.co.uk
£ 265
Professional Employee 4* (130+VAT) £ 624
Wages for all staff for 2 month £ 8,240
Utility bills (3months) water, electricity, gas, phone, internet £ 750
Consumables £ 1,250
Other expenses £ 1,000
Total £34,582

Sourcing Finance
Particulars £
Start-up costs 34,582
Personal savings - 10,782
Other savings (family) - 8,800
Total required = 15,000

Profit & Loss Account Year 1 (£) Year 2 (£) Year 3 (£)
Total expected sales of services 120,120 144,144 172,972.2
Less variable costs ( average 15% for an average price/service of £20) 14,742 17,690.4 21,228.48
Gross profit (sales less variable costs) 105,378 126,453.6 151,743.72
Gross profit margins %(gross profit /total sales*100) 87.73 % 87.73% 87.73%
Wages ( 2months from first year will be already covered by initial start up costs) 41,200 49,440 49,440
Premises(rent, utilities, other bills)-3months of the first year covered by initial start-up costs 13,950 18,600 18,600
Advertising and promotions( other £1,500 covered by initial start-up costs) 3,300 3,600 3,900
Insurances for premises( 6 months from 1st year covered by initial start-up costs) 570 1,140 1,140
Professional liability insurances( 1st year covered by initial start-up costs) - 265 265
Professional employees fees( 1st year covered by initial start-up costs) - 624 624
Business licenses(1st year covered by initial start-up costs) - 966 966
Bank interest 285,72 285,72 285,72
Bank charges 3,000 3,000 3,000
Equipment( 1st year covered by initial start-up costs) - 1,000 1,000
Stock (other £2,500 stock covered by initial start-up costs) 18,000 21,600 25,920
Fuel (3months from 1st year covered by initial start-up costs) 1,800 2,400 2,400
Vehicle insurance plus taxes( 1st year covered by initial start-up costs) - 1,065 1,065
Consumables 500 600 700
Other expenses 3,000 3,300 3,600
Total fixed costs 85,605.72 107,885.72 112,281.72
Net profit ( gross profit less fixed costs) 19,772.28 18,567.88 39,462
Net profit margins(net profit/total sales *100) 16.46 % 12.88% 22.81%
Break even Year 1 Year 2 Year 3
Total variable costs +total fixed costs 100,347.72 125,576.12 133,510.2

Cash Flow Projections
Pre-Start Year 1
2017
Year 2
2018
Year 3
2019
Total
Opening Balance 11,355 36,279.28 75,537.56 123,171.28
Sales 120,120 144,144 172,972.2 437,236.2
Investment 34,582 34,582
TOTAL RECEIPTS 34,582 131,475 180,423.28 248,509.76 594,990.04
COSTS:
Rent 3,900 11,700 15,600 15,600 46,800
Wages 49,440 49,440 49,440 148,320
Stock 2,500 18,000 21,600 25,920 68,020
Insurance premises 570 570 1,140 1,140 3,420
Business licenses 966 966 966 2,898
Professional liability 265 265 265 795
Professional Charges 624 624 624 1,872
Marketing and Advertising 1,500 3,300 3,600 3,900 12,300
Equipment 5,452 1,000 1,000 7,452
Furniture 1,500 1,500
Vehicle 4,400 4,400
Vehicle insurance/tax 1,065 1,065 1,065 3,195
Fuel 2,400 2,400 2,400 7,200
Utility bills (tel., gas, elect. etc.) 3,000 3,000 3,000 9,000
Loan repayment 3,000 3,000 3,000 9,000
Interest charges 285.72 285.72 285.72 857.16
Consumables 1,250 500 600 700 3,050
Other expenses 1,000 3,000 3,300 3,600 10,900
TOTAL
PAYMENTS
23,227 95,195.72 104,885.72 112,905.72 336,214.16
Closing Balance 11,355 36,279.28 75,537.56 135,604.04 258,775.88

Critical Success Factors
There are several critical success factors that top level management of Pearl
Beautique Salon and Spa has to focus on so as to evaluate and analyze the critical
success factors.
 Prices
 Quality of services
 Skilled Personnel

Key Performance Indicators
There are various key performance indicators that can be used by the owners of
Pearl Beautique Salon and Spa to analyze and evaluate the actual performance of
business against the expected or budgeted performance.
 Sales Performance
 Gross Profit
 Net Profit
 Breakeven point

References
 Statistics Portal, 2015. What was the primary reason for your latest spa visit?. [Online].
Available through: <http://www.statista.com/statistics/198412/primary-reasons-of-us-
citizens-to-visit-a-spa/>. [Accessed on 1st February 2016].
 UK spa industry is booming, 2012. [Online]. Available through:
<http://www.director.co.uk/7891-uk-spa-industry-booming//>. [Accessed on 1st
February 2016].
 Phillips, J., 2014. Inaugural UK spa statistics highlight key growth opportunities.
[Online]. Available through: <http://www.spaopportunities.com/detail.cfm?
pagetype=detail&subject=news&codeID=313221>. [Accessed on 1st February 2016].
 Gibbons, V., 2015. 8 biggest spa trends for 2015. [Online]. Available through:
<http://www.marketwatch.com/story/8-biggest-spa-trends-for-2015-2015-01-14>.
[Accessed on 1st February 2016].
 Aidin, B., 2014. [Online]. Available through: <http://raconteur.net/lifestyle/business-
face-of-uk-beauty>. [Accessed on 1st February 2016].