Entrepreneurship in Business Management: A Comprehensive Plan for a Hair and Beauty Salon

This article discusses the concept of entrepreneurship in business management and provides a comprehensive plan for starting a hair and beauty salon. It covers topics such as executive summary, industry analysis, operations and management team plan, marketing plan, and financial plan.

ENTREPRENEURSHIP
Assessment 2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Executive summary/ description of business...........................................................................3
2. Industry analyses.....................................................................................................................4
3. Operations and management team plan...................................................................................6
4. Marketing plan.........................................................................................................................7
5. Financial plan...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship in business management is the art of initiating a step towards starting
new venture offering products, services and processes. An entrepreneur possess special abilities
of managing leadership and team building skills that are essential to manage, operate and balance
the business as per the current environment. Business management entrepreneurship combines
world class academics and perceptive business experience and creates powerful blend to
empower an individual to become leader of business (Ibidunni, Peter and Ogbari, 2017). The
program delivers skills needed to grow concepts into new ventures or develop existing business
in an inventive ways.
MAIN BODY
1. Executive summary/ description of business
The entire business plan is about new venture of Hair and beauty salon in United
Kingdom (McKeever, 2016). It has very lavish and hygienic environment which makes it
different from other salons. It delivers huge range of cosmetics products, services and treatments
for both men and women. The business plan includes business description, analysis of industry,
management and operations team plan, marketing plan and financial plan.
Business description
Hair and beauty salon business is fully dedicated to constantly delivering high level client
satisfaction by rendering outstanding services; quality certified products and furnished its
atmosphere enjoyable and acceptable in terms of value and expectations. The establishment aim
and mission is to supply its products and services which can enhance mental relaxation and
physical appearance of its customers. The business is targeting female and male clients who are
conscious about fashion and has convenient income to spend on their appearance. Currently the
parlour clients are women but it is trying to include men’s who are eligible to fit in their targeted
criteria. The brand new venture takes an innovative approach of safe, secure environment in
physical salon by wearing masks, gloves and maintaining proper arrangements of social
distancing pertinent to the post world of covid-19. It started delivering virtual amenities like
online classes for supporting and educating peoples effectively with an easy process in response
to the current pandemic situations. It has started delivering courses of beauty treatments
through online in which a course will be assisted with theories, videos and pictures. The parlour
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provides a wide range of courses such as National vocational qualifications in part like NVQ1, 2,
3, 4, 5, 6 in makeup and beauty treatments for a period of 6 months. The price of courses may
vary from £500 to £3000 and the salon conducts online lectures, workshops, seminars and tests.
It weekly host beauty classes and provide customized combos of preferred products. It also
launched coupons for future treatments that attracted customers and makes them excited for the
reopening of beauty therapists. The venture sends weekly newsletter for its VIP clients to
support them in maintaining salon result in their homes. The ownership structure of the salon is
Limited Liability Company and planning further for opening a chain of parlours that will be set
in the form of LLC in certain preferred location. The salon provides a wide variety of services
related to skin, nail and hair services such as professional hair styles and hair cutting, pedicure
and manicures, unique makeovers and makeup products. The new venture has many competitors
in its surroundings and high standard areas but it does not have any intentions to compete with
opulent and magnificent salons but it mainly focuses on the middle class clients those who can’t
afford those luxury facilities of high class parlours (Aithal, 2017). The salon is providing all
those essential amenities in one convenient place that helps the establishment to be a part trend
setter’s community and acquire great success by fascinating clients towards their offerings. The
new venture believes in being realistic and even conservative and plans to keep an eye on the
forecast of results on monthly basis ( Ivanisevic and et.al, 2016).
2. Industry analyses
It is a framework which facilitates Hair and beauty salon understands of its currents
position comparative to other parlours that provide and produce same products and services and
make adjustments in the strategies that suits competitive environment. The new venture uses
porter five forces analyses to recognize its dynamics in terms of sales, size and growth in the
beauty industry (Kharub and Sharma, 2017).
Threat of new entrants
This threat is low in the beauty industry because the reality of this business structure is it
demands equipment’s which are very costly and expensive that all cannot afford. Developing
unique products and amenities needs a lot of employees both in the terms of R&D. This industry
wants innovations frequently according the trends and the new players cannot easily survive by
competing with the existing dominant beauty salons. Beauty industry suffers from supply
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imbalance excessively sometimes and makes harsh for new entries to take pleasure of high profit
margins.
Threat of substitutes
The risk and danger of substitutes/replacements in the beauty industry is very high
because the fact is that the supplier of United Kingdom competes in the market shares with high
standard professionals. This displays a high degree of competition where producers have designs
and also have capacity of growth. It becomes very necessary for the new comers to handle the
challenge and threat of duplicate.
Bargaining power of buyers
It is related to the price modifications in the industry. Hair and beauty salon has high
bargaining power of buyers due to the maximized availability and rivalry of beauty products
from the collection of manufacturers. Since products related to beauty have many duplicates and
replacements then it is very easy for buyers to force manufacturers for decreasing prices of items
by buying those from their competitors. It is the challenge that is faced by every manufacturer of
beauty products worldwide.
Bargaining power of suppliers
This element analyses the power that suppliers regarding the modifications in prices for
their beauty products. Those suppliers who have this power influence price modifications via
utilizing techniques like market manipulation through restraining and hoarding supply. Although
these strategies are illegal around the world but some of suppliers apply these strategies when
they want to impact price changes.
Competitive rivalry
In this factor, the new venture looks around the strengths and number of competitors Hair
and beauty salon has and compares the quality of their products with its own. When the
competition is very intense, the other companies can fascinate clients with aggressive cost cuts
and high impact of market campaigns (Wang, and Li, 2020).
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3. Operations and management team plan
Operational plan
This plan involves the description of operations that are performed in Hair and beauty
salon meeting the above explained aims. This plan has two definite sections that are:
Daily short term procedures include all the tasks which run in the salon in terms of venture,
employees and customers (Towbin and et.al, 2018).
 Salon always maintains the hygiene and cleanliness on its floor and every single
materials and equipment’s present over there.
 It frequently checks the products and its balances its atmosphere by maintain freshness.
 The salon behaves the attitude of its employees over the client satisfaction.
 The venture counts its revenue daily.
Working hours: Monday to Sunday 9.00am to 8.00pm.
Employees: The resources in salon should come before one hour to assemble themselves and
have briefing every day. They should go home one hour later after their working hours to make
final checking. Employees have to maintain appropriate relationships with customers and salon
give them common opportunities to handle work according their preferences.
Long-term goals of a salon are client and employee retention, to achieve increased profits, to
centre on efficiency, to acquire great growth and provide top notch consumer services.
Management team plan
Hair and beauty salon has mentor style of management that helps employees to take
certain knowledge from the managers in need. The venture has essential strong management
team. This management style is necessary and used when the salon has ability to encourage its
staff that leads to achieve success in business. Salon has full of skilled employees who knows to
listen clients, provide proper amenities as per the needs and contributes their abilities to develop
Hair and beauty salon.
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4. Marketing plan
This plan mainly focuses on the process of business to sell or provide its items and facilities.
Overall aspects of marketing plan are described by articulating its strategy of market. The salon
will deal with marketing bolts and buts in terms of price, promotional mix, and distribution
strategy and also process of sales (Chernev, 2020).
Price: Hair and beauty salon delivers the best amenities and products in very reasonable costs.
Its basic products range start from £10 which is very low as compared with other beauty salons.
Young people of United Kingdom can avail Hair and beauty salons services by subscribing
monthly in ventures subscription offer that is 25% cheaper than the services which are provided
by the salon on regular basis (Türko, 2016).
Promotional strategy: The venture regularly advertises in newspapers and fix posters of its
provisions on the street walls of local areas. It offers discounts on referral process and launch
loyalty programmes for its clients. It uses mobile ads as beneficial promotional strategy to
advertise and promote its business. It shows off the unique skills of its employees, allows
appointments online and capitalizes promotions on social media platforms to grow effectively
and get famous.
Positioning: Hair and beauty salon is located in south-east London because most of the residents
are immigrants over there and look for price effectiveness. All the leading salons are very
expensive for their geographic location so this salon expects to cover good clients in its radius.
Distribution: This process in the salon is done by direct mail which includes launching a
website and printing postcards. Professionally printed brochures, booklets and calendars those
can contribute distribution efforts and grows long-term relationships with clients.
Sales process: Venture advertises its products in combining with services to cross sell its items,
makes the reception very clean n organized enough able to display the products so whoever visits
can go through the product. The salon educates its employees to engage customers with their
conversation make partnership with the brand that has great value and trust worthy and deliver
knowledge about the product. Its offer products consultation programmes and sends mails to its
clients on the software of salon, send reminders to those who have purchased the product before
and ensure the salon is stocked up with accurate items. These all sales strategies help salon to
boost its retail sales.
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5. Financial plan
This plan includes financial statements for the first year and estimated costs include
income statement and balance sheets (Dintenfass and et.al, 2016).
Income statement: It is probably called as statement of profit and loss; this statement displays
Hair and salon revenues and then subtracts its costs to manifests whether the venture turned a
profit or not.
ANNUAL PROFIT AND LOSS STATEMENT
Income statement
Total annual revenue
20 stylish generating £1000 in a week £1,000,000 89%
Retail sales at 12% of service = £120,000 120,000 11%
Total service + Retail revenue = £1,120,000 £1,120,000 100%
Cost of service & Retail sales
50% commission service sales 500,000 45%
Retail commission @ 10% of retail sales 12,000 1%
Professional product cost @ 6% 60,000 5%
Retail product cost @ 50% of retails sales 60,000 5%
Credit card processing @ 2% of total revenue 22,400 2%
Total cost of service & retail £654,400 58%
Gross profit £465,600 42%
General and administrative expenses
Front desk/ Guest service @10% of total revenue £112,000 10%
Company share of payroll tax @ 9.5% of payroll £59280 5%
Rent @ 6% £67,200 6%
Balance G&A expenses (insurance, utilities etc.) £168,000 15%
Total general & administrative expense £406,408 36%
Net profit £59,120 5%
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Balance sheets: It includes much details and information to show salons assets and liabilities.
BALANCE SHEET
Assets
Current assets
Cash £10,000
Supplies £630
Total current assets £10,630
Equipment’s £60,000
Total Assets £70,630
Liabilities
Current liabilities
Accounts payable
£630
Total current liabilities £630
Notes payable £20,000
Total liabilities £20,630
Stockholder’s equity
Contributed capital £50,000
Retained earnings -
Total stakeholders equity £50,000
Total Liabilities and stockholders’ equity £70,630
CONCLUSION
The above report concludes that an entrepreneur has to make analyses market of the industry
and prepare appropriate plans related to each and every segment of the business. It is also
concluded that every department has its own responsibilities to carry out in the business
management and mentor management style supports both the ventures and employees to
grow effectively.
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REFERENCES
Books and Journals
Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE). 1(1). pp.1-13.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Dintenfass, K., and et.al., 2016. Modifying an estimated financial plan. U.S. Patent Application
14/723,362.
Ibidunni, A.S., Peter, F. and Ogbari, M., 2017. ENTREPRENEURSHIP EDUCATOR'S
COMPETENCEON UNIVERSITY STUDENTS’COMMITMENT TO LEARNING
AND BUSINESS PLAN WRITING. Academy of Strategic Management Journal. 16(2).
pp.1-10.
Ivanisevic, A., and et.al., 2016. Business plan feedback for cost effective business
processes. Advances in Production Engineering & Management. 11(3). pp.173-182.
Kharub, M. and Sharma, R., 2017. Comparative analyses of competitive advantage using Porter
diamond model (the case of MSMEs in Himachal Pradesh). Competitiveness Review: An
International Business Journal.
McKeever, M., 2016. How to write a business plan. Nolo.
Towbin, A.J., and et.al., 2018. Building and implementing an operational
plan. Radiographics. 38(6). pp.1694-1704.
Türko, E.S., 2016. Business plan vs business model canvas in entrepreneurship trainings, a
comparison of students' perceptions. Asian Social Science. 12(10). pp.55-62.
Wang, Y. and Li, L., 2020. Analysis of Competitiveness of High-Tech Industry in Nanjing Based
on Porter Diamond Model. DEStech Transactions on Engineering and Technology
Research, (mcaee).
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