Summarising the Business Plan - Havemore Beauty Saloon & Spa

PROJECT AS3 CASE
STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Summarising the business plan...................................................................................................1
REFERENCES................................................................................................................................3
TASK 2............................................................................................................................................3
1. Primary Research for Havemore Beauty Saloon & Spa.........................................................3
2. Secondary Research for Havemore Beauty Saloon & Spa.....................................................4
3. Quantitative Research for Havemore Beauty Saloon & Spa..................................................4
4. Qualitative Research for Havemore Beauty Saloon & Spa....................................................4
REFERENCES................................................................................................................................4
TASK 3............................................................................................................................................5
1. Ethical Dilemma of Havemore Beauty Saloon & Spa............................................................5
REFERENCES................................................................................................................................5
TASK 4............................................................................................................................................6
1. Ways in which Havemore Saloon & Spa in compiling with diversity and equality in the
process of recruitment.................................................................................................................6
2. The rights of new employees in Havemore Beauty Saloon & Spa.........................................6
REFERENCES................................................................................................................................6
TASK 5............................................................................................................................................7
1. Budget Cash Flow of Havemore Beauty Saloon & Spa........................................................7
.........................................................................................................................................................8
CONCLUSION................................................................................................................................8

INTRODUCTION
Preparation of business plan is very important for an entrepreneur as it helps in providing
the systematic activities in order to set up a new business venture. Business plan is the document
setting out a business's future objectives as well as strategies in order to achieve them. It is the
formal written document containing the goals of business along with the methods on how these
goals can be attained and the time frame within which these goals needs to be achieved ( Burns
and Dewhurst, 2016). This present report will include the detailed business plan for Havemore
Beauty Saloon & 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 Eat Create and
Repeat Restaurant. The budgeted cash flow for the new business is also prepared.
TASK 1
Summarising the business plan
Industry
Beauty and Cosmetics is the industry in which this new business will be working in
coming time. This industry has become one of the famous industry as in 2016, the global market
of cosmetics has grew an estimated cost of 4 percent as compare to last few years. Hair care,
make-up, perfumes, deodorants and skincare. This industry is gaining high popularity because
the spending on cosmetics items and saloon services are increasing. People are mow spending
huge amount of money on treatments of hairs, skins and others.
Name of the business
The name of the saloon will be chosen with the purpose of gaining the attention of
customers. Havemore Beauty Saloon & Spa will be selected as the name of the business. The
name clearly reflect like having beauty more.
Visual Identity
The vitality of this business will be reflected through its logo which included the image
of both men and women so that it will be clearly understood that the services are for both the
genders. In addition to this, the interiors, furniture of the saloon will be very attractive as it gains
the attention of customers in very designated way. There will be separate area for receptionist
where customers will be sited like waiting area (Ward, 2016). Moreover, there will be separate
sector for bridal/ groom and party make-ups, hair cutting areas, waxing, body massage etc. Thus,
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with that customers will feel better as well as recognised experience from the visual of the
saloon.
Location
The location of the business will be selected near to Imperial College of London which is
located in white City. The location selected by determining the demand of the business. The
reason behind the selection of this location is that youngsters are now very aware of there looks
like youngsters needs hair, skin, body and every thing perfect. Further, professors and lecturers
will also visit the saloon as they also need to keep everything perfect. In addition to this, the
cosmetic products are offered by taking the reviews of the people, students and others who are
residing near to the saloon area.
Target Customers
The target customers of this saloon will be selected as per the increasing needs and
demands of the particular segment. This Havemore Saloon & Spa is going to target the students,
lecturers, professors and youngster especially women who are resigning near to the saloon. Apart
from this, for spa services like acupressure massage, abdominal massage, Thai message, head
message business class group will especially be targeted.
Business Model
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Business model refers to the rationale of how organisation creates, delivers as well as
captures. The business model which will be selected for the business and it will be revenue
business model. With the helps of this model, entrepreneur will get information from various
sources as well as the value of the products and services which saloon is offering. On the other
hand, entrepreneur will also like to use customer relationship model as they will build effective
and long lasting relationship with the customers (Brinckmann and Kim, 2015).
Value for the business
Havemore Salon & Spa will include the different values that will include social, and
environmental values associating to equality as well as as diversity. Havemore have decided to
provide a minimal percent to the charity for social well-fair and growth. Further, wastage will be
degraded as per the environmental frameworks. In addition to this, hairs will be store so that it
can be used for the cancer patients. Thus, the business will create value for the society by
satisfying the needs and expectations of the society.
REFERENCES
Books and Journals:
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal, 9(2), pp.153-166.
TASK 2
1. Primary Research for Havemore Beauty Saloon & Spa.
Primary research is very important as it provided fresh and reliable information. the
research is very important in order to collect the information or data regarding the services which
Havemore Saloon & Spa is going to offers in the market. In order to identify the needs and wants
of customers, primary research is best and effective for the fulfilling the demand and
expectations of customers (Quinlan and et.al., 2019). In addition to this, it also creates personal
relationship with the customers which is also very important for the success of the businesses.
3

The entrepreneur will collect the information like what brand is used by them, how long they
visit in saloons and many other questions related to current trends. The entrepreneur will collect
the information through telephones, survey and emails.
2. Secondary Research for Havemore Beauty Saloon & Spa.
It is the type of research which includes the summary, collection and synthesis of existing
investigation. This type of research is conducted from any other sources like books, journals,
internet articles, diaries etc. For new start-up, secondary research is not best because as it provide
used and second hand information. But, as compare to primary research, secondary research took
less time and it saves cost and resources.
3. Quantitative Research for Havemore Beauty Saloon & Spa.
The type of research which is based on statistical data or numeric figure is called as
quantitative research. With the help of this methods, the results are more reliable and valid as it
represent the market information as well as demand of customers with the use of statistical
methods (Jugenheimer and et.al., 2015). Entrepreneur will identify the information after used
SPSS tools, spread sheets for identifying the relationship between the market information
regarding the cosmetic business and customer requirements so that Havemore Saloon will
provide services accordingly. Thus, with the following information Havemore could raise the
profit by raising the customer base too.
4. Qualitative Research for Havemore Beauty Saloon & Spa.
This is the type of research which is used to gain an understanding of underlying
opinions, feelings and expectation of customers. It is non-numerical information. Entrepreneur
will gather the information through survey, interview and after that they use thematic analysis
and present the outcomes in graph and tables (Hartas, 2015). With the graph and tables, it
becomes easy to understand the views and opinions of customers. The market segmentation will
also done with the help of qualitative research.
REFERENCES
Books and Journals:
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South Western
Cengage.
Jugenheimer, D.W., Kelley, L.D., Hudson, J. and Bradley, S., 2015. Advertising and public
relations research. Routledge.
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Hartas, D. ed., 2015. Educational research and inquiry: Qualitative and quantitative
approaches. Bloomsbury Publishing.
TASK 3
1. Ethical Dilemma of Havemore Beauty Saloon & Spa.
As per the scenario, it is the opportunity for Havemore Saloon & Spa to market there
products and services because it is one of the most popular website that promoted the business at
very discounted rate. The website will make the saloon very popular in the market and make
more revenue and profit for the business. The website is probability to raise the popularity of the
business as it has a target audience of thousands of people. But this opportunity is creating the
situation of dilemma because as per the information from the scenario, the company is very
badly known for treating there employees in very bad manner (Wang and Calvano, 2015).
Company used to discriminate, harassment and bullying by the top authorities. The situation of
dilemma is that if Havemore Beauty Saloon makes the contracts with the company it will
directly influenced the image because company is known for discrimination and harassment of
the company.
According to the business ethics, employees are the backbone of the company as it is
very important to treat the employees as a valuable assets not machines. If they employees are
not treated in designated manner it is fact that it directly hit the image of the company. Thus,
uniting with such organisation for promotional sake will create negative impact on the
organisation. The entrepreneur is worried if they want to raise the market share and profitability
of the company they have to start unethical practices within there operations and functions. It is
fact that not only profitability of company is affected but it also influenced the decisions of
investors to invest in the company (Bjelica and et.al., 2016). It might be happen that, the trust of
customers will also lose by making agreement with the marketing website company.
REFERENCES
Books and Journals:
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Wang, L.C. and Calvano, L., 2015. Is business ethics education effective? An analysis of gender,
personal ethical perspectives, and moral judgment. Journal of Business Ethics, 126(4), pp.591-
602.
Bjelica, D and et.al., 2016. Ethical dilemmas of sport advertising. Sport Mont, 14(3), pp.41-43.
TASK 4
1. Ways in which Havemore Saloon & Spa in compiling with diversity and equality in the
process of recruitment
Havemore beauty Saloon is deciding to hire two workers at that time it is very important
to consider as well as recognised system to fulfils the required practices in the process of
selection and recruitment. In addition to this, it is also very essential that no any employees
should be discriminated by his/her class, gender, race etc. Saloon should follows the framework
of ethical business practices (Konrad, Yang and Maurer, 2016). It should be ensure by the
management that employees feel freedom and sense of equality while working in the company. It
is also ensure by the management that it is prior cleared that candidates are hire on the basis of
there skills and knowledge as not any personal interest or bias will be there.
2. The rights of new employees in Havemore Beauty Saloon & Spa.
No any person or individual have right to discriminate employees or any one in the
business. As per the Employment Act are as follows-
 Employees should be treated equally while working in the saloon.
 The new employees have right to take fair compensation, right of privacy and free from
any kind of discrimination or bias on the basis of race, age, gender, nationality.
 Employees have right to rights to know the management of the company and objectives,
goals and operational activities (Koivunen and et.al., 2015).
 Employees have right to ask the position and salary in which they are selected.
REFERENCES
Books and Journals:
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Konrad, A.M., Yang, Y. and Maurer, C.C., 2016. Antecedents and outcomes of diversity and
equality management systems: An integrated institutional agency and strategic human
resource management approach. Human Resource Management, 55(1), pp.83-107.
Koivunen, T and et.al., 2015. Informal practices of inequality in recruitment in Finland. Nordic
journal of working life studies, 5(3), pp.3-21.
TASK 5
1. Budget Cash Flow of Havemore Beauty Saloon & Spa.
PARTICULARS
INITI
AL
INVE
STME
NT
JANU
ARY
FEBR
UARY
MARC
H APRIL MAY JUNE JULY
AUGU
ST
SEPTE
MBER
OCTO
BER
Goods 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
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
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
Mirrors 1000 0 0 0 800 0 0 200 0 0 200
Furniture 1700 0 150 0 0 0 350 0 0 80 0
Equipment 950 0 0 350 0 300 0 0 0 0 400
Chair 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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Accounting principles
Accounting principles are such principles which guides the accountant to prepare their
financial statement disclosing the overviews of the company. There are various principles which
reflecting the accounting such as
 Full disclosure principles:- In this principle the accountant have to disclose the
complete information of the organisation in the financial statement so that it is helpful for
the lenders and investors to examine the working of the company. In the financial
statement they also have to impose certain footnote which reflect the important points
which is to be specially designed so that it can identify or reflect the important notes
which is helpful at the time of taking decisions.
 Time period Assumption:- In these principles, it examines the time period in which the
transaction are to be entered in the financial statement. In this, it specifies the time
internal and various statement which are covered under this statement reflect the financial
stability of the organisation. It depends upon the organisation what they follow which
time period statement it can be quarterly, half-yearly and yearly as mainly organisation
follows yearly time periods. They had to disclose all the entries which are executed
between that period which reflects the income and expenditure occurred during that
stipulated time.
 Going concern concept: This principle of the accounting says that while preparing
financial reports of the company, it should be assumed that the company will run for long
time in the future. In other words, it can be said that this principle of accounting states
that a business is not going to attain the liquidity position in the near future. In this
regard, while preparing the accounting reports, if the company is needed to take into
account the life of assets in order to determine the value of asset used by the business in
current period. Further, inclusion of all the expenses that has been recognized but has not
yet been paid by the business are needed to be included in the books of accounts of the
firm.
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CONCLUSION
The above report comes to the conclusion that before the starting the business, it is very
important at to make the business plan so that the business is successfully open without any
interruptions. Further, the report also summarised the importance of primary research for new
start ups as it provide more real and valid information for the company. On the other hand,
employees rights were also discussed in the report which saloon needs to follows for conducting
ethical business practices.
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