LCBB5001 - Beauty Paradise Ltd Business Plan: Entrepreneurship

This document presents a business plan for Beauty Paradise Ltd, a cosmetic and parlor firm, focusing on the introduction of nail art and hair massage services in the One Plus cocktail bar. It includes an analysis of the market, competition, and industry using Porter's Five Forces, along with a STP analysis to define target segments and positioning strategies. The plan outlines operational and management aspects, technology utilization, and financial projections, including income statements, balance sheets, and cash flow statements. The goal is to increase profitability and market share through digital marketing and unique service offerings, with a financial plan requiring £1,000,000 for startup costs. Desklib provides access to similar business plans and solved assignments for students.

BEAUTY PARADISE

Executive summary:
With the changing times there is unique combination of services that are coming together
for the purpose of satisfying the dynamic customer requirements. In preset scenario the beauty
brand Beauty paradise Ltd is starting a new service of nail arts and hair massages facilities in
The cocktail bar for the purpose of developing some of effective digital marketing strategy in
order to enhance the revenue for new services that are being extended to the cocktail bar.

Table of Contents
Introduction:.....................................................................................................................................1
Competition............................................................................................................................2
INDUSTRY ANALYSIS ......................................................................................................2
OPERATION AND MANAGEMENT TEAM PLAN..........................................................5
Milestone and Metrics............................................................................................................5
FINANCIAL PLAN ..............................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCE ..................................................................................................................................7

Introduction:
Beauty paradise is a cosmetic and parlour firm it has a major task to provide reliable
service to customer and reach up to the maximum customer. To reach up between maximum
customer there are some plan and strategies should be taken out and brief analysis of market also
driven before establishing the business. Such as porter fives forces to know rivalry in market,
marketing plan, operating plan and financial plan to know what are the gross outcome should be
achieved by organisation.
Business description:
Beauty paradise Ltd. Is a company that is having presence in London, England. They are
dealing different services that includes hair dressing, beauty treatments, different types of spa
facilities for their target segment of customers (HR and Aithal, 2020). They are having a mission
and vision to expand to different new areas in order to increase their present market revenue
across different geographical locations of England.
Values: the main values of Beauty paradise Ltd is to be a one stop destination for all
the beauty related solutions for their target base of customer. They have main focus on
establishing higher standards of services in order to build up a sanitised base of customer. Their
staff is courteous and prompt of proving assistance to their customers.
Problem:
The major issues that is faced by the organisation is related to the no available services of
massage facilities for people and nail art facilities in the one plus cocktail bar. It can also be said
that people are willing to visit for relaxation or recreational time (Wu and Li, 2018). So there is
a need to offer something unique to the customers who are visiting the cocktail bar.
Solutions
For this problem Beauty paradise Ltd. Is working towards dealing with this issue by
starting of a new services in the one plus cocktail bar.
STP analysis:
It is a criteria that is used by Beauty paradise Ltd for the purpose of enhancing their present
market share. There is use of STP analysis as mentioned below:
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Segmentation: In this the whole target market of Beauty paradise is divided according to the
different behavioural characteristics that are shared by people. Such as the services will be
starting in the cocktail bar. There is use of behavioural segmentation as the technique where
customers will be divided according to the similar behavioural aspects that they are sharing.
Targetting: So the main target segment of customers in this is the millennial generation who are
regularly willing to visit such bars (Andika and Susanti, 2018). There is use of digital marketing
strategy as a tool to promote this new services of Beauty paradise Ltd. That is also going to assist
this brand in enhancing their promotion easily by use of higher creativity to increase the present
level of customer engagement.
Positioning: Beauty paradise Ltd will be creating a unique position in the market by use of the
unique approach as they will be establishing their facilities in these areas where people are
visiting for some recreational activities. The use of unique promotional means and high quality
of services are the two major aspect that will assist Beauty paradise Ltd. To enhance the
satisfaction level of their customers.
From the above discussed STP analysis it can be said that there is focus on use of E
commerce as a digital strategy for the purpose of increasing their market share.
Competition
It is analysed that there is high competition prevailing at marketplace as there are lot of
business entities that provide the same service as Beauty Paradise LTD. In addition to this, it is
determine that there are lot of alternatives available that arise choice to the customers to shift to
another organisation who provide same offerings.
In relation to Beauty Paradise LTD, it provide quality and on time service to customer at
an affordable price that attract large number of customers towards the brand and help in attaining
competitive advantage at marketplace. In addition to this, it make use of natural and organic
products that is not used by its competitors and assist in raising the profitability in an appropriate
manner.
INDUSTRY ANALYSIS
Industry analysis is defined as a observation of organisation in term of stability, growth
and other section. As per the context, beauty paradise is a small business which is based a type of
saloon and parlour. They used to serve service and create a bunch of customer and after that
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reach up to they maximum level of customer with their service and new product. It is usually a
cocktails of services like hair spa, nail massage and many more which is available for customer
in fix prices. Their is number of factor which affect the industry plan and their strategies. This all
factor will analyse by porter fives forces, which is mentioned below:
Porter's five forces: This forces help in business to know about what are the various
factor which affect the regulation of business. This factor affect profit margin and profitability of
any organisation. In the context with beauty paradise, the organisation must know about their
competitor and other rival who affect various function and scale margin of selected firm.
Competition rivalry: Technological creation and innovation help to bring many of major
element which is essential and non essential component for organisation. This is valuable for
helping the organisation to customize tools for competitive market and they enhance the profit.
This tool is develop in plan to make realise that sources of the competitive forces. In which
customer have more power but due to plenty of seller it is being challenging to capture the
customer for their firm (Özsungur 2019). In the context with beauty paradise, the competition
rivalry is access in term to provide better and effective services.
Supplier power: in many organisation there is fix supplier in which they decide to deliver
product and rate of services, in the case of supplier when the they are low in number, then the
price is high and if the supplier are high in number in their market place then the supplier power
is low and for organisation they have various choices to gain the product and service which is
being deliver to customer.
Buyer power: this power is eligible for customer, it may be occur sometime when the
number of buyer are maximum for any organisation then it is helpful for organisation to just put
one pricing decision and there is no chances of bargaining is occur. And due the competition
rivalry buyer take advantage to low down the price and take service is low cost due to this. The
buyer have many opportunity to gain the maximum bargaining in market place.
Threat of substitution: this is about same product and service is launched by any other
organisation. Which create a competition rivals between the product and if the alternative
product is adopted many of customer. It difficulties for existing companied to establishes their
market of product again by lowering the price which create a loss of account for organisation.
The new product and service are introduced in such a way by other organisation to gain
maximum profit and customer attract for them like same product on low price and they acquire
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it. In this the current organisation face in their profit margin. At per context of beauty paradise
there are number alternative product but organisation based on service so alternative threat is low
in the case beauty paradise.
Threat of new entry in marketplace: the new entry can create threat for organisation.
They came with new strategies and new plan and their target is gather the market for short and
they established for long. They came in market with promotional tool and many effective terms
which affect other organisation profit (Pathak and Muralidharan 2018). At context with beauty
paradise this threat is numeration for other in which new entry should decrease profit of beauty
paradise in term with new tool an new technique, and customer want to to be try for once and
this create the bad impact in the profit of beauty paradise.
Competitive Force
Threat to
Industry
Profitability
Low
Threat to Industry
Profitability
Medium
Threat to Industry
Profitability
High
Threat of substitutes Low
Threat of new entrants Medium
Rivalry among existing
firms
Medium
Bargaining power of
suppliers
Medium
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Bargaining power of
buyers
High
OPERATION AND MANAGEMENT TEAM PLAN
Location: Beauty Paradise LTD has its store in the central of London that involves 2
floors and consist of around 10 employees. In addition to this, it take bookings online and
provide at home services which help in raising the number of bookings and enhance its
profitability.
Technology: This factor plays an important role for Beauty Paradise LTD as it help them
in raising their customer base level and market performance as well. The technology used are as
follows:
E-mail: In order to develop relationship with customer, Beauty Paradise LTD sent mail
to its customers in order to provide them update and offerings as well. In addition to this, the
customer also have the option to raise queries on mail that is resolve by respective company
rapidly and timely.
Social media platforms: Beauty Paradise LTD make use of social media platforms that
is YouTube, Facebook, Instagram as it help them to reach large number of people within short
span of time. In addition to this, it also has its own website that consist of all its information so
that customer can easily access and book its services.
Equipment and tools: Beauty Paradise LTD offers hair massage service and for this it
require equipments and tools that is given below:
 Cart and Trolleys
 Hair clippers
 Hair styling tools
 Hair combs and brush
 other Basic equipment that is massage cream, gloves and so on.
Milestone and Metrics
 To increase the profit by 10% in coming 12 months by increasing the offerings and
promotion.
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 To become the leader in this respective industry by the year 2022.
 To expand the market share by entering into new market by the year 2013.
FINANCIAL PLAN
Financial plan is about how much is generated in a month and ho much expense are drive
to run organisation this all are collected in such a brief to formulate a business plan.
Income statement: it define the statement is more commonly called as profit and loss
statement and profit and loss account (Provasnek and et. al., 2017).
Balance sheet: its help to determine the total asset and liabilities of organisation.
Cash flow statement: it help to determine how much amount of money start to grow the
business.
Sources of fund:
Banks: It is determine that bank provide loan to the companies by verifying all the
documents in a proper manner and in return charge a percent of interest on the amount.
Equity investment: It is the money which is invested by business entity by buying shares
of that organisation in the stock market. In addition to this, such shares are typically tracked on a
stock exchange.
For Beauty Paradise LTD, Bank loan is feasible and suitable option as it help in easily
getting funds for performing the activities associated with the business plan.
Profit and loss statement:
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BALANCE SHEET:
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Cash flow statement:
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Financial plan has been showcase that Beauty Paradise LTD need 1000000 £ for started
up their new plan. They are able to collected monetary resource by taken loan from bank or any
other financial institutions. They can also issue their equity through which they are able to raise
up their fund at 2018 200000. Organization by investing in their project and run business
activities able to generate 62400 profits their value of cash inflow also increases by increment in
their cash inflow business activities.
There value of profit has been raised due to the increment in the sale rate. This represent that
organization able to generate profit for the years if they invest for formulating business plan.
Manager find that they can able to control their cost incurred in wastage of business activities by
cutting irrelevant business activities.
Beauty Paradise LTD by investing their money in project can able to run their business in
effective manner. They by identifying initial cash inflow activities generate 146800 profit, their
value of balance sheet has been increase as compare to previous year as the vale of gross margin
ration has been increase from 59 % to 70%. Value of current asset as well as fixed also increase
as compare to 2018 however their value of liabilities increase with increment of selling rate.
Beauty Paradise LTD projected value of this organization if they took decision of
investing in particular portfolio the then value of their total assets and liabilities will be 1500000
on the other side this capital will be raised from 1500000 to 2500000 which showcase growth of
organization. Their cash flow statement also show the cash inflow as well as cash outflow value.
On the basis of which manager of Beauty Paradise LTD recognize activities which may
become reason of over cash out flow activities. This projected cash flow statement show case
that value of current asset has been increase which directly impact on the cash outflow business
activities and the rate of debtor and account receivables has been increase . Tax rate of the
organization also been increase due to the increment of profits .
Management department of Beauty Paradise LTD able to recognize that they can able to
generate cash inflow for their organization by investing in issuing shares they can also improve
their effective rate by selling those equipment or machine which are not useful for organization.
Value of tax has been increase which cause of high rate of cash outflow however by
implementing and investing in further investment organization able to maintain their cash inflow
business activities. Their balance of 2019 cash flow was 16126600 it is positive balance and this
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statement show that investing in specific portfolio help enhance financial performance and
potion of organization. Thus Beauty Paradise LTD need to invest in their particular portfolio for
spread their mark area.
CONCLUSION
As per the above discussion, this is about beauty paradise who want place himself in
market. The market strategies and industry analysis is develop by porter's five forces in which
they know about different factor which affect organisation goals and profit. Marketing plan were
also discussed where number tools are used to promote business like place, product, price and
promotion. The financial plan help to provide the statement of profit and loss. This analysis help
to develop new plan and strategies for organisation to achieve goals.
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REFERENCE
Books and journals
Morgan, J. and Sisak, D., 2016. Aspiring to succeed: A model of entrepreneurship and fear of
failure. Journal of Business Venturing, 31(1), pp.1-21.
Öner, M.A. and Kunday, Ö., 2016. A study on Schumpeterian and Kirznerian entrepreneurship
in Turkey: 2006–2013. Technological Forecasting and Social Change, 102, pp.62-71.
Özsungur, F., 2019, May. A research on women's entrepreneurship motivation: Sample of Adana
Province. In Women's Studies International Forum (Vol. 74, pp. 114-126). Pergamon.
Pathak, S. and Muralidharan, E., 2018. Economic inequality and social
entrepreneurship. Business & Society, 57(6), pp.1150-1190.
Piñeiro-Chousa and et. al., 2020. Innovation, entrepreneurship and knowledge in the business
scientific field: Mapping the research front. Journal of Business Research, 115, pp.475-
485.
Provasnek and et. al., 2017. Sustainable corporate entrepreneurship: Performance and strategies
toward innovation. Business Strategy and the Environment, 26(4), pp.521-535.
Purzer and et. al., 2016. Evaluation of Current Assessment Methods in Engineering
Entrepreneurship Education. Advances in Engineering Education, 5(1), p.n1.
Andika, A. and Susanti, F., 2018. Pengaruh Marketing Mix Terhadap Keputusan Pembelian
Parfum di Azzwars Parfum Lubeg Padang.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing in
India. International Journal of Applied Engineering and Management Letters
(IJAEML), 4(1), pp.191-218.
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