Business Plan for Barber and Hairdressing Service

The provided report outlines the business plan for 'Blue and Pink Saloon', a barber and hairdressing service for men and women in Africa. The plan includes market analysis, competition analysis, sales forecast, cash flow forecast, balance sheet, and legal requirements such as business licensing and registration, employee identification number, resale certificate, and tax collection accounts.

UNIT 19: PITCHING FOR A
NEW BUSINESS: PART B & C

Table of Contents
Business Description.......................................................................................................................2
Market analysis- ..........................................................................................................................2
Target market- .............................................................................................................................3
Marketing and sales strategy- .....................................................................................................4
Consideration of legal requirements- ..........................................................................................5
Funding requirements- ................................................................................................................5
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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Business Description
Barber shop is known to be a place in which individual visits to groom themselves. Thus,
present report will be based on barber and hairdressing service for men and women in Africa.
Henceforth, firm will be named as "Blue and pink saloon" and it also ensures that are customers
will be well treated. Henceforth, Services needs to be carried out by the professionally trained
individuals. Therefore, it will be a standard and licensed barbering saloon that will be located in
27 Caledon St, Zonnebloem of Cape town, south Africa. The main aim of this entity is to offer
the quality services so that long term profitability and productivity to the enterprise can be
enhanced.
This entity will offer the facilities as cutting, dressing and grooming of the dress hair for
both male and female. Therefore, this firm will come up with the innovation as to scan face of
person in software and to find out the best suitable hair design cut with help of software. Hence,
this entity will offer the additional service as-
 Cut the hair for both male and female.
 Groom hair for both male and female.
 Dye/ colouring of the hair.
 Sales of the barbing accessories and clippers.
 Sale of shaving powder and cream
 Home service to the nearest customers.
Vision- To become the number one choice that will be based on solid foundation. To enhance
the profitability firm need to recruit well-qualified and licensed barbers to render expert services.
Mission- To establish the barber that will focus over the both high and medium class customers
so that they in order to enhance affordability of services.
Market analysis-
Market trends- The one of the major trend in Barber business is not only limited on
customers coming to their barbing saloon to patronise their business but also relates with to go
the extra mile to offer the same service to customer by visiting their house. Hence, the home
service to customers is one of the latest trend. It is service that charges some extra cost and it
gives opportunity to this business to make more money.
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In this current scenario, the majority of people wants to grooming themselves. Hence,
business if it is well located then it can experience massive backing all year around.
Target market-
Before, choosing the location for saloon, feasibility study and market research to identify
the benefit of service offering at the selected location. Those, who will get benefit from the
service offerings will be Adults and both- male and female. Hence, the market has to be targeted
as per the affordability of the customers. Thus, staff of this enterprise will be well trained to
effectively service so that customer retention to the entity can be enhanced. Hence, customer can
be categorised into following segments are as-
 Celebrities
 Public figures
 Politician
 student
 Young children
 Teenagers
 Elderly people etc.
Competitive advantage- To set up the business firm does not require formal training to achieve
long term profitability and success. Without even proper knowledge and training this entity can
be set up. Any person can easily set up the barbing saloon, if they are having the required start-
up capital. Due to it, possibility of having the high barber shop is continually increasing and
there is also enhancement in competition in the industry.
Therefore, competitive edge for this enterprise is that will be a standard barbing salon
that has the good number of licensed and professional skilled barbers. By providing professional
services to the customers, there can be possible to build competitive advantage. This will be
helpful in terms to standby to meet the needs of the customers in both shop and home service. In
addition to this, it can be stated that business offering will also be easy in order to assist and to
attract the new customers to the enterprise.
Blue and pink saloon will come into the market in manner as well prepared to favourably
compete in the industry. This firm has come up with various innovation facilities so that
customer within the market can get attracted towards it. Thus, shop will be located at the centre
of location and this needs to be visible enough to parking with the strong security. Hence, taken
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staff will be well groomed in all aspect of the business and all employees are trained in terms to
provide customized services to the customers. By carrying out the services with professionally
trained and licensed barbers aids to have highly esteemed customers value for their money.
Marketing and sales strategy-
It must be adopted in order to run business operations effectively. Thus, marketing and
sales strategy for the Blue and pink saloon will be based on generating long term personalised
relationship with the customers. Home health care services at the affordable price aids to attract
the customers. Henceforth, this is defined as plan of action that designed to promote and sell the
product and services effectively within the market.
With the help of providing the consistent high quality service to the customers, the firm
can enhance in the number of customer by more than 25% for the first and then it will more than
the 40% percent subsequently.
In order to attract the customer at the first level, firm will provide discount opportunities
to customer as- After each 2 service customer will get 50% on third service. This aids to attract
the customers at the initial level.
In order to conduct the marketing, the firm will use promotional method as advertising,
digital marketing, sales promotions and public relations. Hence, website can be selected as
marketing strategy in terms to develop the awareness for the product and services within the
market.
To enhance the sales in the firm, Blue and Pink will choose price skimming and
penetration strategy for the selling of new and innovative services. Entity must have use this
strategy, as on the first level price of the commodities will be relatively at the high price to cover
the cost of expenditure but after some period firm will have reduction in prices of service. By
offering the services at the affordable price aids to provide the better and efficient services to the
customers.
Sales forecast
In UK ()
Year 1 Year 2 Year 3
Sales
Saloon expenditure 15000 18000 19000
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Accessories of saloon 10000 12000 12000
Total sales 25000 30000 31000
Year 1 Year 2 Year 3
Direct cost of sales
Saloon expenditure 2200 1500 2800
Accessories of saloon 1300 2500 2000
Subtotal direct cost of
sales
3500 4000 4800
Consideration of legal requirements-
In order to ensure and operate function of the business in legal manner, it is crucial to be
aware about the laws and jurisdictions. Hence, the number of things are needs to be focussed as
employment, business, tax and all other kind of federal regulation. Therefore, to meet legal
requirement the following license and permits must have as-
Business licensing and registration- Business need to get registered with city and town in
which their firm functions operates. Therefore, it is crucial to complete registration in the city in
which business operations will get start. In order to run the better services, it is crucial to obtain
license and to have registration of the enterprise.
Employee identification number- In order to set up the entity in legally manner, this is crucial
to have this number from the internal revenue service.
Resale certificate- In order to sale the commodities as such are as shampoo, conditioner and
styling commodities it is crucial to have sale certificate. Hence, it aids to enhance the
authenticity of the commodities.
Tax collection accounts- If the commodities that plan are to sell are taxable in state and
municipality than it is crucial to tax collection account with any specific department and revenue.
Funding requirements-
Start up cost-
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Sales forecast-
7

Cash flow forecast-
8

Balance sheet
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CONCLUSION
Hereby, it can be concluded that business plan aids to frame the plan that outlines the all
requirement relates of business. The present report has covered the topic as to draw business plan
on barber and hairdressing service for men and women in Africa. Henceforth, firm will be named
as "Blue and pink saloon" and it also ensures that are customers will be well treated.
Hence, the report has covered the market analysis and competition analysis so that all can
be conducted in effective manner. Lastly, legal requirement has been defined to undertake
business service of Barbering.
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REFERENCES
Books and Journals
Alnsour, M.S., 2018. LATEST TRENDS IN JORDANIAN LOCAL BUSINESSNAMES AND
BRANDS.
HOSSAIN, N., ALAM, R.M.K. and GAVLOVSKAYA, G., 2018. Effective Microcredit
Banking for Growth and Development of Small Business and Improve the Poverty
Condition in Bangladesh. Journal of Applied Economic Sciences. 13(2).
Ntshingila, B.S., 2019. Lessons To Be Learnt From The World's Great Icon’ s Life
Experiences. Lulu. com.
Courtwright, D.T., 2019. The Age of Addiction: How Bad Habits Became Big Business. Harvard
University Press.
Abaasa, A., Nash, S., Mayanja, Y., Price, M., Fast, P.E., Kamali, A., Kaleebu, P. and Todd, J.,
2019. Simulated vaccine efficacy trials to estimate HIV incidence for actual vaccine
clinical trials in key populations in Uganda. Vaccine.
Online
What Licenses Do I Need to Open a Barber Shop?. 2019. [Online] Available through :
<https://smallbusiness.chron.com/licenses-need-open-barber-shop-18315.html>
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