Beauty Nails: Complete Business Plan for a Beauty Salon in London

This project presents a detailed business plan for 'Beauty Nails,' a beauty salon proposed for Chelsea, London. The plan outlines the business overview, including services like hair, skin, nail, and massage treatments, targeting women aged 15-50. It covers the management structure, including roles like receptionist, makeup artist, and hairdresser, with a focus on skilled and experienced staff to establish a competitive advantage. Market research, including primary and secondary methods, is used to understand customer preferences and competitor analysis. The marketing strategy involves a marketing mix (product, place, price, promotion) with a focus on social media and digital marketing to reach the target market. The operations section addresses premises, equipment, transport, legal, and insurance requirements. The financial aspects include cost and pricing strategies, cash flow forecasts, and seed capital requirements. The plan emphasizes providing excellent customer service and innovative services to differentiate the salon in a competitive market. This business plan aims to provide the necessary steps to launch a successful beauty salon, with a focus on financial sustainability and customer satisfaction.

Beauty Nails
Insert graphic or logo
Insert ID number
Table of Contents:

Sec one
Business overview
Sec two
management structure
Sec three
customer profile
Sec four
marketing
Sec five
operations and logistics
Sec six
costs strategy
Sec seven
cash flow forecasts

Section One
Scenario: A: B: C:
Business Overview
1.1 Business summary: Please write business outline. (who, what, where, When and
how)
Business idea is opening beauty salon with the name of 'Beauty nails' which is located in
Chelsea, London. The beauty treatment in which company will specialize are hair care, skin care,
massage, nail care etc. they provide services to the customers at their salon and also provide services
at clients place. This business idea is chosen because beauty salon is more in demand and to look good
many people are visiting salon every month. This business will provide every necessary services which
a beauty salon can provide. This salon is also situated at the prime location of London so that they can
get more footfall.
1.2 Describe your core product or service:
Main services which is provided by salon is related with skin care, massage, services related to nails or
hair care services. They will provide all services which will make their customer feel relax and also help
them look healthy and good. Business will provide various nail care services like manicure, nail art, dip
powder nails etc. as the craze of getting good nail care is increasing. So that is why opening this
business will have great potential and also help business in making good profits (Docwra, 2018).
1.3 Your immediate and future business aims:
The aim of business is to provide good salon services to their clients and can make profits with good
sales. As it is beauty salon so they want to provide such services which in better and new. As services
will remain same only but it will be delivered to the customers differently. In order to make customers
feel comfortable they are also providing services to their customers by visiting their place. Future aim
of business is to provide such innovative services which other salon is not providing. As in order to run
business for long time they should have launched new services.

1.4 Please state the amount of seed capital required and partner investment
: (Up to a maximum of £40,000)
The capital which is required in this start up business is £40,000. If the new business is starting then
there are various expenses like documentation expenses which be related to legal documents etc. to
open salon they also required property on rent where they will open salon (Clements, 2017). Expense
will also occur while promoting the salon. Promotion is important activity because it will bring sales to
the company. Salon also have to bring machines in order to provide beauty services to their customers.
Along with that they have hire such staff who can provide beauty services to their clients.

Section Two
Management structure.
2.1 Professional team skills:
Skills which are required in team of beauty salon are:
Communication and listening skills: the client is the most important person because they will give
sales to the business. So workforce should listen what they are saying because when professional
listens to them carefully then only they will know about client preference (Ali, Katty and Idrus, 2020).
Time management skills: as the schedule of salon is often hectic if the footfall is more especially
during wedding season. So professionals should write down all appointments and should given different
time to every client. If professional will not organise work properly then how they will give good
services to customers.
2.2 Each team member’s roles and responsibilities:
Receptionist: the responsibility of receptionist is to take appointments and maintain register so that it
can be recoded properly. They also act like customer service provider. As they give answer to every
customer query whether on call or face to face.
Makeup artist: the role of makeup artist is to provide makeup related services to the clients. They
should have skills to do makeup as per client's requirements.
Hair dresser: the responsibilities of hairdresser is to provide hair cut, hair spa etc to the client. They
should have skills which a hairdresser requires so that client will get better services.
2.3. Identify your company’s skill gaps, then chose one role and create an
advert with the skills required and their roles and responsibilities.
Advertisement for Salon stylist:
We have vacancy for Salon stylists. An individual must be graduate and person who will have
beauty course related degree will be preferable. There responsibilities will be providing various services
related to hair and skin care. Candidate have to handle all daily appointments. The should have good
communication skills in order to retain customers and should also have marketing skills so that can sale
beauty products which will be kept at salon (Ylimartimo and Lehtinen, 2019). They will give various

duties like pedicure, manicure, facial, massage, make up etc.
Feel free to come at salon for interview.

Section Three
The market/customer profile.
3.1 Describe your target market profile and where are your proposed
customers based:
For this salon business target market of company will be female who fall in age group between 15-50.
As this age group female needs beauty care services. It is observed that mainly this age group female
comes in salon for hair care, skin care, massage or for various other services. Mainly those customer
will get targeted who are residing in London city. This is also the main reason that salon is existing at
main street of London so that client can get easy transportation. They will also target women who are
getting married, so that can give business to the salon.
3.2 Describe your perceived competitive advantage/USP:
Unique selling price of beauty nails is they have experienced, skilled and knowledgeable staff. This will
help salon in getting competitive advantages. They hire such candidate who have basic knowledge of
salon as complete fresher is not hired by them. They also provide training related to beauty care to
their staff so that they learn more skills and provide customers their best services. Apart from
professional work workers are also taught regarding how to deal with customers (Vlados, 2019). As
salon is providing services to the customers and not products so that is why good customer service is
more important here. Salon is making experienced staff their UDP in order to attract more customers.
As every salon is giving almost same services so where beauty nails will get competitive advantage. So
by providing services differently with the help of their knowledgeable staff they will able to increase
their customers.

Section Four
Marketing
4.1 Explain your market research with references, Using primary and secondary
research.
Provide a questionnaire with 5 suitable questions and state the objective of said
questions.
1. how frequently you visit beauty nails salon?
1 time in a month
2 times in a month
once in 6 months
other
2. what are your reasons of choosing this salon?
Attractive offers
word of mouth
social media promotion
none
3. one what social media platforms are you active on?
Facebook
twitter
Instagram
What app
all
4. how do you rate our staff?
1
2
3
4
5
5. How would you rate prices of beauty nails?
Affordable
expensive
The objective behind asking these questions is to know what customers are
feeling and with what they are not satisfied with so that can improve customer
services. By gaining more customer information will help salon to target them
properly.

4.2 Competitor analysis

(Based on your market research, analyse two key competitors and explain
how your business will compete with them) (You may consider a SWOT here)
SWOT analysis:
strength:
The biggest strength is that salon is situated at main street of London where an
individual can find out easy transportation facilities. They also have talented and
experienced staff which can provide better services to the clients.
Weaknesses:
they does not have expert for all salon services. They only have one staff who can
provide massage services.
Opportunities:
they can book or target such client who are getting married so that can get many
clients in one shot.
Threats:
Competitors are the biggest threat (Vlados, 2019). As it is observed that there are
massive competition in this industry and almost all salon is providing same services.
The London salon and Taylor Taylor salon are the biggest competition for beauty
nails because these are established salon and have more customer base. This salon
will compete with their rival salon by providing innovative services to the customers
and also providing good customer services.

4.3 Marketing strategy
(In support of your business social media campaign, describe your
marketing and branding strategy, with reference to researched materials.
Identify the most appropriate strategies, (You may consider a 4 or 7ps
etc. )
Marketing mix:
product:
beauty salon provides beauty related services to their customers like hair care, nail
designing, skin care etc. they also sell beauty related products at salon.
place:
beauty nails will provide services at their salon which is present at London and they
will also provide services to customer at their place.
Price:
salon will follow low pricing strategy because beauty nails is new salon and to attract
customers they have to provide services at low prices.
Promotion:
Salon will promote their services by using modern promotional techniques which is
digital marketing and social media marketing. These online marketing options are
choosing by lot of companies these days because advertising on them is cost effective
and also takes less time. Beauty salon very well know that with the help of various
social media platforms they can target wide audience easily. As users of social media
is increasing everyday. They will take help from Facebook advertisement for
advertising their products. As with the help of various Facebook tools salon can target
only those customers which has fall in their targeted customers category.
4.3b. How and where will you launch your product or service.

On social media platform only salon will launch their business. As salon can target many clients through
social media and aware them regarding opening of new salon. They can also trend hashtags on social media
because hashtag is helpful in attracting more customers. They can even give mobile advertisement regarding
opening of new salon (Niranjanamurthy, Nithya and Jagannatha, 2019). They can also send promotional
emails to local people. Word of mouth is also another way through which information can be spread.

Section Five
Operations and logistics
5.1 Premises and location.:
5.2 Equipment & Set up Costs and suppliers:
Product Supplier Cost.
Advance Rent/deposit 15000 15000
Purchase of raw
material
- 10000
Rent
- 5000
Transportation
charges
- 15000
Total cost 45000
5.3 Transport needs:
There is a need of transportation as the company need to sell the goods through supply
network apart from this company is selling goods from online website as well for that
Reason Company need transport (Verhaeghe, 2021).
5.4 Legal requirements:
Partnership Agreement etc.
Partnership Agreement etc.
Partnership agreement refers to the contract which takes place between two individual and their main
objective is to earn profit. Partnership agreement state that how much profit and loss will be shared by
each and every partner (Mishra, 2017).
5.5 Insurance requirements:
Business Insurance etc.Business Insurance etc. Business insurance is being required to protect the
goods and services of the business.
5.6 Other required Certifications:
5.7 Fixed monthly Costs as per cash flow:
Items Costs
Inventories 50000
Rent 10000

Phone 5000
Insurance 15000
Advertisement 10000
Others 5000
Total 95000

Section Six
Costs and pricing strategy
Product/service name ( Select a single unit) Product
Cost to your business per unit 12
Price you charge per unit 15
Profit margin (£) 3
Profit margin (%)
(Profit / Price x 100 = Profit margin)
20
Mark up (%)
(Profit / Cost x 100 = Mark Up) 25
6.b Your Pricing Strategy:
The pricing strategy is competitive pricing because company wants to grab the market share and wants to build
a loyal consumer base.

Section Seven
Cash Flow forecasts
7.1 Realistic cash flow Sales and costs forecast, including next 3 years’ projections, assuming you’ve received the start-up fund’s
you’ve requested. (Please edit to suit your need)
Jan Feb March April May June July
Sales 1: 2,00,0
00
2,00,000 3,00,000 3,50,000 4,00,000 4,50,000 5,00,000
Loan 50,00
0
90,000 20,000 50,000 40,000 20,000 10,0000
Investment. 20,00
0
40,000 50,000 60,000 40,000 50,000 20,000
Total Sales: 30,00
0
70,000 2,30,000 24,0,000 3,20,000 3,80,0000 4,70,000
SET UP COSTS
TOTAL
Direct Costs:
Materials. 5000 6000 5000 4000 3000 2000 2500
Stock. 3000 4000 2000 2000 3000 2500 1500
Additional Staffing 1000 1500 2000 1500 2000 2500 1000
TOTAL Direct
Costs:
9000 11500 9000 7500 8000 7000 5000

Fixed Costs:
Salaries 1 2500 2500 2500 2500 2500 2500 2500
Rent. 1500 1500 1500 1500 1500 1500 1500
Rates 1000 1000 1000 1000 1000 1000 1000
Staff Wages. 2000 2000 2000 2000 2000 2000 2000
Utilities/Gas/Elec 1200 1200 1200 1200 1200 1200 1200
Phones. 1500 1500 1500 1500 1500 1500 1500
Freight & Postage 1800 1800 1800 1800 1800 1800 1800
Stationary. 1500 1500 1500 1500 1500 1500 1500
Promotion & Ad. 5000 5000 5000 5000 5000 5000 5000
Website. 3000 3000 3000 3000 3000 3000 3000
Accountant 1500 1500 1500 1500 1500 1500 1500
Legal 4000 4000 4000 4000 4000 4000 4000
Transport 5000 5000 5000 5000 5000 5000 5000
Vehicles 7000 7000 7000 7000 7000 7000 7000
Insurance 3000 3000 3000 3000 3000 3000 3000
Maintenance 8000 8000 8000 8000 8000 8000 8000
Computers. 6000 6000 6000 6000 6000 6000 6000
Misc. 1000 1000 1000 1000 1000 1000 1000
Loan repayment. 50000 90000 20000 50000 40,000 20,000 10,0000
Interest on loan. 750 1350 300 750 600 300 150
TOTAL: 10725
0
147850 76800 99750 97100 76800 66650
Sub Total: Fix +
Direct Costs.
11625
0
159350 85800 107250 105100 83800 71650
Net Profit: Sales –
Sub total
83750 40650 214200 242750 294900 366200 428350
7.1: Three-year projections, annual proposed sales and Net profit only

7.2 Notes and assumptions to cash flow and projections:
Interest rate has been assumed to 1.5%
Conclusion:
Through this report it can be concluded that beauty nails salon will going to open in London. Communication skills are the most important skill which is
required in salon workers. Capital will be raised from government loan. Female will be the target market for salon. They will opt for social media
marketing in order to promote their services. Report has also discussed various costs and cash flow forecasts.

References/Bibliography
Ali, W.N.A.W., Katty, K. and Idrus, S.Z.S., 2020, April. Promoting Salon Service Business through Interactive
Video. In Journal of Physics: Conference Series (Vol. 1529. No. 3. p. 032070). IOP Publishing.
Clements, P., 2017. From salon to stage: The art of collaboration. Professional Beauty, (Nov/Dec 2017),
p.62.
Docwra, J., 2018. The rise of the luxury salon. Professional Beauty, (JulAug 2018), p.94.
Mishra, N., 2017. The role of the Trans-Pacific Partnership Agreement in the internet ecosystem: uneasy
liaison or synergistic alliance?. Journal of International Economic Law, 20(1), pp.31-60.
Niranjanamurthy, M., Nithya, B.N. and Jagannatha, S., 2019. Analysis of Blockchain technology: pros, cons
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Urbaníková, G., 2019. Design of Marketing Communication for Beauty Salon.
Verhaeghe, E., 2021. The (post) politicisation of timber trade:(Un) invited participation in the EU-Vietnam
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Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management.
Ylimartimo, I. and Lehtinen, J., 2019. Marketing plan for a hair salon.