Accounting for Business Decisions: Home Salon Financial Analysis

This report provides a financial analysis of "Beauty at Home," a home salon startup, focusing on accounting for business decisions. The company operates through a website and app, connecting customers with salon service providers. The report details the company's vision, mission, and services, including hair, skin, nail, and massage services offered at customers' homes. It applies the balanced scorecard framework, examining learning and growth, business processes, customer perspectives, and financial data. The analysis includes projected sales, revenue streams, and cash flow, highlighting makeup services as a primary revenue generator. The conclusion summarizes the business model and its potential for growth within the home salon service market.

Accounting for
business decision

INTRODUCTION
The new business idea is about a home
salon, all the services of the organisation
will be provided to the customer at the
place they prefer (Anctil, Grimm and
Maloney, 2020). Unlike a normal salon it
is a home service cum freelancing
platform for salon services provider and
services taker. The company has a website
and app both from where the company
operates.

About the product
“Beauty at home” is a unique idea of salon
business, the business provides wide variety range
of services. Services provided includes hair, skin,
nails and massage at their own home. The business
is going to work through a website. The business is
going to work on website the customer who needs
to use the services and who is available to provide
services will be connected

Details of the business
• Vision of the company: To provide the customer best services from comfort at
their home. Also to become leader in beauty salon services. Also to provide a
platform where beauty experts can freelance and earn.
• Mission of the company: The company will be initial be working in limited
area, but in future the business entity wants its business to be expanded to
different cities.
• Services provided: Since there will be no physical presence of the company
outlet services provided remotely will be: Hair cut, Hair colour and different
treatment, Skin care services like facial, clean-up, waxing, threading and
other.

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• What is the market: The business is dedicated to all the women and men who
want salon services at home. This specially for the one who are to busy to go
out to salon. Generally, people are busy because of their daily chores. This
platform provide them flexibility to take services whenever they want
because services are available throughout the day and night.
• Where is the Market: The operation will be carried out initially in Bristol, UK
though there is no physical outlet the company is present digitally.

Balance scorecard
The terminology balanced scorecard (BSC)
mentions to a strategic management
performance metric. This strategy is used in the
internal environment of the business to improve
the quality of the operations by increasing the
efficiency of outcomes. This balance scorecard,
measures and getting feedback for the corporate
is common among business entities in the United
States, the United Kingdom, Japan, and Europe

Four aspects of BSC
• Learning and growth: In this categories
the evaluation of training and knowledge
is done. This basically seen that how
efficiently the information is collected and
used by employees. This information is
used by the employees for organisational
growth and development. Competitive
advantage is taken by the information
collected with in business environment.

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• Business processes: This category of business focuses on investigation about
how well the company is performing. Operations of the company is analysed
to check if there is any gaps, constraints that restricts the smooth flow of
operations. Any shortage in manufacturing inventory needed. Any extra
waste that is increasing the cost of the product is analysed. This is really
important study about the company's manufacturing and production as this
the base on which the company is dependent. This also investigate the quality
of a product that is prepared and served in the market to the end user.

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• Customer perspectives: This is the most critical aspect, taking review from
the service user about the quality, price and availability of the product helps
the business to grow. The customer reaction and perception provides area of
opportunity where the business supposed to work . Understanding customer
values makes them built trust in the organisation. Treating customer as the
king is good strategy to win over the competition prevailing in the market.
Asking about how well the customer was satisfied from the services provided
is another way of business development. In case of “Beauty at home”
customer take such services to feel better to look better therefore customer
review is even more important.

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• Financial data: This aspect of the balance scorecard deals with information
regarding the monetary data. Sales, expenditure, revenue and losses must be
deeply analysed. Maintaining books of accounts to record, interpretation and
analysis of monetary data helps the organisation to control its financials. This
also incudes financial ratios that are calculated to check the feasibility of the
firm. Budgets are prepared for future projections and evaluation that helps in
making strategic plans. Income targets and variances from budgeted and
actual performance are part of this category of balance scorecard. In case of
“Beauty at home” budgets were prepared and estimation was taken about the
sales that the company might do.

CONCLUSION
In this report, about a beauty salon that provides home services is discussed.
The organisation is a platform where customer and executives who are available
to provide the services contacted. Apart from this the company keeps its own
employees too, who are expert in salon services.

Summary
Beauty at home is a salon startup company that provides home
salon services. the company's projected sales for a year show
an increasing revenue. The cash flow of the company is also
positive for the upcoming months. the highest revenue
generation of the salon is through makeup services.

References
• Anctil, R., Grimm, S.D. and Maloney, M.M., 2020. Atlas managerial accounting
case: Examining joint products in the international scrap metal recycling
industry. Journal of Accounting Education, 51. p.100660.
• Holt, M. and Lang, B., 2021. GADGET: An Accounting Data Generator. Journal of
Emerging Technologies in Accounting, 18(1). pp.113-129.
• Ma, D., Fisher, R. and Nesbit, T., 2021. Cloud-based client accounting and small
and medium accounting practices: Adoption and impact. International Journal of
Accounting Information Systems, 41. p.100513.