Business Plan for Your-Care Beauty Salon: Financial Plan, Funding Requirements, Legal and Compliance Issues

This report is a business plan for Your-Care Beauty Salon, covering financial plan, funding requirements, legal and compliance issues. It discusses sources of funding, licensing requirements, insurance, and ethical issues such as discrimination and harassment. The report provides a comprehensive overview of the business plan for a new beauty salon.

Business Plan

Executive Summary:
In this following report it based on Beauty Salon business plan segments which aims
towards identifying about purpose and STP which specify target market and customer. It is
important legal and compliance issues in perspective of beauty salon that essential for new
beauty salon start ups.

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Financial Plan and Funding requirement:...................................................................................2
Legal and compliances issues ..............................................................................................11
CONCLUSION..............................................................................................................................13
References:.....................................................................................................................................14
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INTRODUCTION
Business plan is a form of written document that describe about specific company's core
business activities, objectives and how it plans to accomplish its goals. A good business plans
should include an executive summary, product and services, marketing strategy analysis,
financial and budget (Cant and Wiid, 2020). All these requirement helps to company for well
strategy planned for making better opportunity and attain competitive advantages. In this
following report, the objective to conduct a business plan of beauty salon in which financial
plan, funding requirement, legal and compliances issues would be discuss. The company is
“Your-Care” which is new beauty salon business in London, United Kingdom.
MAIN BODY
Financial Plan and Funding requirement:
Financial plan is different from financial statement where it defines as step to step
approach to meet one's life goals. A financial plan acts as guide through company or life journey.
Financial planning helps to determine about short or long term financial goals and create plan to
meet those goals.
There are some of important reason which depicts about why financial plan is needed to new
business plan are:
 Income: It can be possible for managing income in more efficiently through better
planning. To manage income will help to understand how much need for tax payment
where other monthly, expenditure and saving.
 Cash flow: To increase cash flows by carefully monitoring spending patterns and
expenses. Tax planning, prudent spending and carefully budgeting which makes keep
more hard earned.
 Capital: An increase in cash flow can leads to an increase in capital.
 Family Security: To providing family security is an important part of the financial
planning process. In that security it covers family insurance and policies in place can
provide peace of mind.
 Standard of living: The saving is also part of financial planning where it helps to create
good planning in difficulties times.
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 Financial Understanding: There are better financial can be accomplished when it
measurable financial goals are set which create effects on decisions that understood and
result reviewed.
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Particulars Amount (In million
pounds)
Rental charges for location of beauty salon 2000
Promotional cost 4000
Salaries to beauticians and other staff 1500
Service cost 200
Exhibit related cost 500
Total cost 8200
Funding requirements:
The process of funding requirement is refers as sources of funds that generates on the
basis of specific cost which helps to identifies in the cost baseline. It also include better
management reserves and the funds can be arrange on the basis of short term and long term
aspect. There are different sources of funds which “Your care” new beauty salon company are as
follows:
Internal Source of Funding
 Retained Earning: Business is having purpose to maximise profit through selling of
product in higher prices as they assure about quality of product manufacture. This is most
primitive source of funding of any company. After generating profit, a company decides
what to do with earned capital and how to allocate it efficiently.
Advantages Disadvantages
 The use of retained earning does not
involve about any acquisition cost. The
company has no obligation for paying
anything of retained earning.
 Through retained earning strengthen
the financial position where business
where thereby provide financial
 The improper utilisation of funds is
having purpose of better utilisation
where retained earning which is not
clearly stated.
 Shareholders would not able to enjoy
the benefits that generate from actual
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stability to business. earning from company.
 Reducing working capital: This is could be either interesting internal source of finance
where reducing capital is well managing available money more closely. This is having
process of receive funds faster and pay more bills more slowly. This approach will better
require in a good relationship with better stakeholders.
Advantages Disadvantages
 Business usually face trouble due to
lack of cash needed for operation and to
repay short term debts. It happens
because of an ineffective or not having
working capital management policy
enterprise.
 Working capital management involves
where utilise of ration analysis. Such
information which would helps in
managers in planning to execute
business.
 This strategy takes only monetary
factors into accounts. Monetary items
with the value of debts receivables
where the value of finished of good etc.
External Source:
 Debt Capital: The companies obtain debt financing privately through bank loans. The
specific business can also acquiring new funds through issuing debt to the public. In debt
financing about borrower issues debt securities where such corporate bonds or
promissory notes.
Advantages Disadvantages
 One of the major advantages of debt
financing which wont giving up from
any kind of ownership of business. It
takes out from financial institution
where alternative lender.
 Unfortunately predatory lender which
exists and techniques which is use of
rope of unsuspecting small business
owners.
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 Strong advantages where debts
financing is the tax deduction. To
classified as business expenses where
the principle and interest payment on
that debts may be deducted from
business incomes taxes.
 When the business goes well proprietor
still need to pay vendor as because the
money which lender get back from
proprietor .
 Equity capital: The companies raise funds from the public in exchange for proportionate
ownership that stake in the company (Rashid and Ratten., 2020). In the form issued to
investors who become shareholder after purchasing the shares.
Advantages Disadvantages
 There is no system of repayment
requirement on initial investment.
Through debt capital on the other hand
where it better requires periodic within
interest payment and repayment of
borrowed principal.
 Business is having uses of more equity
than debts has a lower risk involved
like risk of bankruptcy.
 Equity does not require any form of
interest payments. It typically overall
cost than debt capital. Stockholder
shoulder would have more risk which is
compared from creditors.
 It takes a good deal of time towards
getting loan from getting through
application through under writing
process.
 Crowdfunding: It is mainly utilise from small amounts of capital where large number of
individuals provide finance a new business venture. Crowdfunding makes use of easy
accessible of vast network of people through better social media and crowdfunding own
websites where entrepreneurs and investors arrange funds together.
Advantages Disadvantages
 It would easy to raise finance upfront
fees and pitching project on through
online platform.
 This good way for testing better public
 Sometimes crowdfunding is not
essential process for go through to
better compared where more traditional
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reaction with product or idea.
 Ideas which may appeal to
conventional investors which can often
get financed more easily.
way for raising finance.
 To getting reward or returns wrong can
define for giving away too much of the
business to investors.
Evaluation:
On the basis of above sources of funding, that describes on the perspective of “Your-
Care” beauty salon company. The suitable sources of fund is considered is Crowdfunding as
because company is start up and they can target investors and large entrepreneurs for investment
purposes. This practise can helpful for “Your-Care” beauty salon company for making their
business expansion effectively.
Legal and compliances issues
The role of legal section of the business plan that must include explanation of any
patents, copyrights, trademarks, trade secrets and contracts. There are some minimum legal
requirement that are followed and required to be fulfilled at the time of establishment new beauty
salon business. There are some of licence that are needed to be taken in time of new business
implementation. Some of the licence that are to be taken are as follows for Beauty Salon new
business aspects are:
Business licence: The licence focuses on getting permission from the local city on which
operate the better business plans with local jurisdiction where better business plan to decide at
the time of implementation. That specific business licence have rules and regulation involves
which is regulates on the basis of government.
Insurance for beauty salon: This is most important aspect, where every business need to
make sure that they must have clear up with their business insurance. Similarly for Your-Care
beauty salon company require insurance regarding with their premises, content and stock,
employer liabilities, business interpretation etc. There is one regulation which is essential that is
British Association of beauty therapy and Cosmetology which offers members a range of
specially tailored insurance packages.
Healthy and Safety fire: Some of the areas where health and safety regulation that create
affects of business (Rukayat, Derevianko and Karintseva, 2021). In this legal factor Your-Care
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beauty salon need to make sure that their business infrastructure along with staffs and equipment
must be under control for fire and healthy issues.
Cosmetic or beauty product must authorised: As Your-care is mainly work on all
organic based cosmetics product that must comply with regulations which require every product
to have better safety assessment and quality. It is essential because it specify for customer health
consideration.
Ethical issues of “Your Care” beauty Salon company needs to follows :
 General operating philosophies: This code of ethical issues include statement which
will not discriminate against customer and employees on the basis of age, gender, race,
caste etc. It is might also include commitment which is use to only safe product and
promise to openly post changes and payment policies.
 Dealing with Customer: Customers are the lifeblood towards any small business and it
never more than a service business catering towards their self image (Shrikant, 2021).
Salon etiquette for staff must cover keeping customer happy which responding towards
their needs and desire and treating them with respect current clients to attract new ones
for beauty product explore.
 Discrimination: This is one of major ethical issue that happen in organisation world in
2020 is discrimination. As per last few months where many corporation have under fire
for lacking a diverse workforce. This is major often down to discrimination that happens
through gender, colour etc.
 Harressment: This is second major ethical issues business which faces is harressment
that often related towards racism or sexism. This can be happen from verbal abuse, sexual
abuse, teasing, racial slurs or bullying. Every business need to make sure that there
should be strict rules and regulation regarding of harressment.
 Health and safety issues. This is an ethical that often protected through laws health and
safety measure which need to take care of workplace employees and infrastructure. These
health precaution where well injuries towards falling towards take owner can leads to
psychological risk .
Evaluation:
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On the basis of above ethical issues are highlighted that summarise on the basis of “Your-
Care” new beauty salon need to implement important issues like Discrimination, harressment
and health safety issues that makes more positive workplace environment.
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CONCLUSION
From above Business plan of new beauty salon is summarise about overall company
profile and major focus on legal and compliance issues aspect that provide how specific beauty
business need to concerned. Apart from it in this report there is explain about business or
marketing analysation to generate better competitive advantages.
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References:
Books and Journals
Cant, M.C. and Wiid, J.A., 2020. The Role and Importance of Marketing in South African
Township SMMEs. Academic Journal of Interdisciplinary Studies, 9(5), pp.90-90.
Daniels, M. and Wosicki, C., 2020. Wedding planning and management: Consultancy for
diverse clients. Routledge.
Gehlhar, M., 2021. The fashion designer survival guide: start and run your own fashion
business. Simon and Schuster.
Kampani, N. and Jhamb, D., 2020. Uncovering the dimensions of servicescape using mixed
method approach–A study of beauty salons. Benchmarking: An International Journal.
Kirby, A., 2020. 6 steps to ensure business survives coronavirus. Professional Beauty, (May/Jun
2020), pp.76-77.
McCann, H. and Myers, K., 2021. Addressing the silence: Utilising salon workers to respond to
family violence. Journal of Sociology, p.14407833211031005.
Rashid, S. and Ratten, V., 2020. Commodifying skills for survival among artisan entrepreneurs
in Pakistan. International Entrepreneurship and Management Journal, pp.1-20.
Rukayat, H., Derevianko, Y.M. and Karintseva, O.I., Management of Business Promotion for
Small Company.
Shrikant, N., 2021. Cultural difference as a resource for arguments in institutional interactions.
Communication Monographs, 88(2), pp.219-236.
Tungohan, E., 2020, November. Settlement, separation and forming new families: a multi-scalar
intersectional analysis of Filipino family immigration in Saskatchewan, Canada. In
Women's Studies International Forum (Vol. 83, p. 102403). Pergamon.
Yunus and et. al., 2020. Enhancing the Economic Potential of Indigenous People in the Jababeka
Industrial Area through Corporate Social Responsibility. Pertanika Journal of Social
Sciences & Humanities, 28.
Online:
The Good Trade, 2021., Beauty salon based venture in UK. Available through <
https://www.thegoodtrade.com/features/natural-cosmetics-uk>
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References:
Books and Journals
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