Gelly's Beauty Salon Business Plan and Cash Flow Analysis

The provided document is an assignment on Gelly's Beauty Salon, which includes a business plan, equality and diversity laws followed by the salon, asset and liability details, expenses, gains, and a cash flow analysis. The salon has started its operations in London with employees on zero-hour contracts. The cash flow problem is identified, and solutions are proposed to avoid such issues in the future. The assignment also includes references to relevant books, journals, and online resources.

HOW TO START A
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Summarising business plan.........................................................................................................1
TASK 2............................................................................................................................................2
Market research for developing business....................................................................................2
TASK 3............................................................................................................................................3
Ethical dilemma for Gelly's beauty salon...................................................................................3
TASK 4............................................................................................................................................4
Compliance with equality and diversity law for selecting applicants.........................................4
Rights of new employees hired on the basis of zero- hour contract..........................................5
TASK 5............................................................................................................................................5
Assets, liabilities, expenses and gains for Gelly's beauty salon..................................................5
Methods of solving cash flow problems.....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
This study will include about the beauty salon and its industry, location and target
customers. Also, it provides the understanding of the name of business and values of the
business. Furthermore, it will include the ethical dilemma faced by the salon and decision to
solve the problem. Moreover, this will contain the assets, liabilities, gains and incomes for the
salon.
TASK 1
Summarising business plan
Industry
The small business which is going to start will be beauty salon which is involved in
beauty and cosmetic industry (Brazeal and et.al., 2017). This industry is developing its market
share in the economy due to increased awareness in public about this industry. It is related to
providing beauty treatment and various other treatment which makes the people look attractive.
This industry is gaining demand due to increase in their income of the individuals and their
increase demand for beauty care. The small business will be related to the beauty salon as it is a
passion to apply gel on the nails and there will be other activities in the salon which will be
related to make-up and other things.
Location
The business will be located in London , UK as it is gaining popularity in that city due to
increased awareness about the beauty and the demand to look more attractive than other people.
The beauty salon will be situated at that place because there is more demand for this business as
there is high scope and growth of this business in that area.
Target consumer
The target market for the beauty salon will the young generation people as they are more
conscious about beauty and other products. Young generation people includes the girls and boys
which are more attracted towards the business and this is the reason the business will be
successful in London as it has high population of the young generation people.
Business model
The business model for this business will revenue business model which is a framework
for generating revenue. It provides information about which revenue source will be chosen by
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organisation. Also, it provides revenue generation techniques, revenue sources and the target
consumer of the product which is offered.
Name of business
The beauty salon name will be selected on the basis of its speciality and the speciality of
this salon is applying gels on nails so the name selected for this business will be “Gelly's beauty
salon”. It is selected on the basis of the speciality of apply gel on the nails. And it will provide
information to the customers directly about the speciality of the beauty salon.
Visual identity
The Gelly's beauty salon will be providing services such as apply gel on nails, make-up
and other services. The logo of the salon will be different and unique and will be attractive to
attract more customers. The logo will include the name of the salon and image of the speciality
service with the face of the celebrity to gain the attention of people towards the salon.
Values for Gelly's beauty salon
The business will create some values for the equality and various social, environmental
values etc. The Gelly's beauty salon will treat its staff member equally to provide them respect
and motivate them to work with the salon. The salon will contribute for the development of
society by contributing the part of profit for social welfare. Also, The salon will have diverse
nature where staff members from different t religion, age etc. will be hired and they will be
equally treated without any discrimination.
TASK 2
Market research for developing business
Primary research
The Gelly's beauty salon will conduct primary research for developing the business
through survey which will include the questions relating to the business products and services to
identify the taste and preferences of the people to provide them services according to
requirement and identify the information to know about the customer demands from the salon.
The primary research will include survey through which salon will be able to identify the success
of the business on the basis of answers provided by the people.
Secondary research
The secondary research will include the information about the market trend and demands
from various books and journals to know about the demands of the products and services
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provided by the salon will be effective of not. The research will be conducted in order to know
about taste and preference of the customers to identify their requirement. The salon by
conducting the secondary research will be able to know about the customer's taste and
preferences and their needs and requirement regarding the beauty products and services. This
research will help the Gelly's beauty salon in gathering information about the current trend of the
beauty salon and increased number of customers in this industry for successful developing the
business.
Quantitative research
This research is included for analysing the market to identify the behaviour of customers
by way of descriptive, correlation, quasi- experimental and experimental analysis of the data.
The quantitative research will help the Gelly's beauty salon to identify the information about the
various data relating to the customer's demands by conducting descriptive research in which the
overall population will be included for analysing the data gathered to the various information for
the growth and success of the business.
Qualitative research
The qualitative research will be conducted in order to identify the information about the
customer opinions, values and beliefs for the product and services offered by the salon. The
research will include questions which will be asked randomly to the any person or group of
people for gathering information about the products and services of the salon. It includes
unstructured and semi- structured techniques for conducting the research. Qualitative research is
conducted by the salon for identifying the information about the variables that have their impact
on the business to know about the future profitability of the salon.
TASK 3
Ethical dilemma for Gelly's beauty salon
Gelly's beauty salon has got the opportunity for promoting its business through a popular
website at a discounted rate but due to some accusation relating to discrimination, inequality,
harassment etc. The company is facing ethical dilemma about whether to accept the opportunity
or not as it will affect the brand image and will demotivate its staff members . The salon before
passing any judgement must identify the truth about those accusations.
This accusation will affect the brand image and will demotivate the staff which may
increase the salon staff turnover. The company has the moral values which includes values
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relating to equal treatment of the staff members and no discrimination between the employees on
the basis of the age, gender, religion etc. (Koumenta and Williams, 2016). The Gelly's beauty
salon must not accept this opportunity as it will affect the business because it will hamper the
brand image and will increase the staff turnover which will affect the business profitability and
will reduce the customer attraction towards the salon if there is high turnover of staff.
The accusation on that company is against its moral values and this may affect the
business so to resolve this ethical dilemma the salon will not accept the opportunity of being
promoted at website. The decision made by not accepting the opportunity will be beneficial as
staff members will feel motivated and will work effectively and achieve the success and
profitability of the salon (Lopes and Dewan, 2014). By following the values set by the Gelly's
beauty salon the business will be able to provide better services and will reduce the chances of
staff turnover.
The business values that were created by the Gelly's salon included that they will treat
their employees equally and fairly without any discrimination so to stick to those values it is
required not to grab that opportunity that will have negative impact on business. There are
various cases of ethical dilemma in psychology that are relating to protection from harm, Right
to withdraw etc.
TASK 4
Compliance with equality and diversity law for selecting applicants
Gelly's beauty salon will employ two members for staff on the basis on zero – hour
contract which is an agreement between the employer and workers which involves no minimum
hours of working for the workers. The salon will hire the staff members on the basis of this
contract so that workers don't get any burden of work and can easily work without any obligation
of completing particular hours (Finnis, 2016). The Gelly's salon will ensure to comply with the
laws relating to equality and diversity. According to equality law the staff members will be
treated equality and fairly with discrimination on the basis of age, gender, religion etc.
According to equality and diversity law lays emphasis on compliance with human rights and
treating the people at workplace to reduce the chances of discrimination and all the staff
members are treated equally (Lavery, 2014). For complying with these laws and regulation the
Gelly's beauty salon will make sure that the staff is employed without any discrimination on the
age, gender, religion etc. to give them equal opportunities. The selecting the applicants for the
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Gelly's beauty salon it will ensure that equality and diversity laws are compiled for hiring the
staff members on Zero – hour contract (Bowl, 2018). Gelly's beauty salon will select the
employees on the basis of their knowledge and skills and not on the basis of any discrimination.
Rights of new employees hired on the basis of zero- hour contract
The staff members of the Gelly's beauty salon will be provided with various rights that
will include the following:
 Statuary sick pay will be provided to all the staff members working with the Gelly's
beauty salon.
 Statuary leave and pay for the maternity or paternity
 They will be provided with the right of flexible working.
 The staff members will be provided with experience and skills.
 Protection from unlawful discrimination
 Time off for emergencies involving dependants.
The above right will be provided to the employees employed on the basis of Zero- hour
contract to provide encouragement and motivation to employees to work with Gelly's beauty
salon.
TASK 5
Assets, liabilities, expenses and gains for Gelly's beauty salon
Assets
 large Mirror
 Chair
 Couch for reception area
 combs and brushes
 Spray bottle
 Nail gel
 nail refiner
 make-up
 cash
 building
Liabilities :
 Account payable
 Loans
 insurance
 capital
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Assets For the Gelly's beauty salon will include those items that will be required by the
salon to run its business and easily be converted in to cash. Liabilities includes those items which
are obligation of the salon to be paid in future point of time. The gains are the incomes or
revenue generated by the salon by providing its various services. The gains will include the
those incomes which are generated by the salon Expenses for the Gelly's beauty salon will
include rent paid, wages paid etc.
Methods of solving cash flow problems
The following shows the closing cash balance on the basis of the budget of £20000
Particulars January
Cash inflows
Opening cash inflow 20000
Sales revenue 15000
Other income 5000
Total cash inflows 40000
Cash outflows
rent paid 4000
wages paid 5000
advertising expenses 3000
Administration expenses 5000
Other expenses 2000
Total cash outflows 17000
Cash deficit / surplus or closing cash balance 23000
Cash flow problems occur due to more cash outflow and less cash inflow and to avoid
this problem The Gelly's beauty salon will make the forecast of the cash flow to prepare a cash
budget on the basis of which the salon will be able to identify the inflows and outflows to
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identify the variances and can take necessary steps to solve the problem (Cash Flow Problems
and Solutions, 2016). Also, it can be avoided by analysing the expenses on the daily basis.
CONCLUSION
From the above business plan, it has been concluded about the Gelly's beauty salon which
has started its salon in London. This plan has also provided about the equality and diversity laws
followed by the salon while selecting the employees on Zero- hour contract. Furthermore, it has
provided with the assets, liabilities, expenses and gains for the salon such as nail gel, building,
chair mirror, account payable, rent paid etc.
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REFERENCES
Books and Journals
Finnis, J., 2016. Equality and Religious Liberty: Oppressing Conscientious Diversity in England.
Brazeal, D. and et.al., 2017. A Dialogue on How a Trump Presidency May Affect Equality,
Diversity And Inclusion. In Academy of Management Proceedings (Vol. 2017, No. 1, p.
10965). Briarcliff Manor, NY 10510: Academy of Management.
Bowl, M., 2018. Differentiation, distinction and equality–or diversity? The language of the
marketised university: an England, New Zealand comparison. Studies in Higher
Education. 43(4). pp.671-688.
Lopes, A. and Dewan, I., 2014. Precarious pedagogies? The impact of casual and zero-hour
contracts in higher education. Journal of Feminist Scholarship. 7(8). pp.28-42.
Koumenta, M. and Williams, M., 2016. An Anatomy of Zero-Hour Contracts in the United
Kingdom.
Lavery, S., 2014. The Politics of Precarious Employment in Europe: Zero Hour Contracts and
The Commodification of Work. Precarious Employment in Europe içinde, FEPS Young
Economics Network Working Paper. Brussels. pp.6-16.
ONLINE
Cash Flow Problems and Solutions. 2016. [Online]. Available through
:<https://www.comcapfactoring.com/blog/cash-flow-problems-and-solutions/>
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