BM564 Enterprise & Entrepreneurship: Beauty Salon Business Plan

This report presents a comprehensive business plan for "Naturals," a beauty salon specializing in herbal and organic products located in Manchester. It details the proposed business venture, including the unique selling proposition (USP) of using herbal products to cater to customers with sensitive skin, particularly those over 40. The plan includes an analysis of the target customer base, a competitor analysis using the STP model, and projected two-year income and cash flow statements. Suitable funding sources, such as investments and bank loans, are identified, along with a breakdown of startup costs. The report concludes with a discussion of the future prospects for the salon, including potential expansion and online sales. This business plan aims to demonstrate the feasibility and profitability of the proposed beauty salon venture.

BEAUTY SALON BUSSINES
PLAN

Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Proposed Business Future including the product and services offered:.................................4
Identification of Target Customers:........................................................................................5
Competitors Analysis:............................................................................................................5
Projected 2 Year Income Statement and Cash Flow Statement:............................................6
Explanation of Suitable Sources of Funding:.........................................................................7
Break down of Start Up Cost:................................................................................................7
Future of Salon Business:.......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
In this report the business plan has been prepared related to Beauty Salon business. Such
business is set on the rented building on Manchester. The main USP of opening such salon is to
provide services with the usage of herbal products. The projected final accounts are also attached
for the period of two years so that profitability in the report could be judged accordingly. Not
only this, the competitor analysis using STP model has been laid down that indicates the
suitability of such plan in the market.

INTRODUCTION
Business Plan is the plan that show complete details of future business that needs to be
started by the individual in a short duration of time. Such plan contains complete list of nature of
business and survey regarding the proposed profitability that needs to be achieved. This report is
about a Beauty Salon names as NATURALS which is situated hamster street, Cross Road
opposite HSBC bank, Manchester. In this report the detail analyses have been carried out that
what are the business competitors, market positioning, target customers and son on. Not only this
the projected 2 years’ cash flow statement and income statement are being prepared in order to
ensure that the business is feasibly viable to start or not (CAMPISI, 2018).
TASK
Proposed Business Future including the product and services offered:
The business plan is relating to Beauty Salon named as Naturals. The main USP of this
saloon is that the product and services they offered are made up of usage of organic material. The
advantage for the same is that it does not harm the skin of customer that arrives to the outlet. The
products that are being offered in the salon are being listed below:
Services:
 Hair - Cutting or Hair Color
 Nail Art
 Bridal Makeup
 Facial or Bleach
Products:
 Natural Lipstick
 Nail Paint
 Hair Color
 Face Cream and Body Lotion
 Shampoo and Conditioner
The evaluation has been made in these products is the mix of herbs that are being used
at the time of their usage on the customers so arrived to store in obtain the services.

Identification of Target Customers:
The target customer is those customers who are above 40 years that have the skin problems
when they use cosmetic product onto their skin. The herbal product will make sure that their skin
does not gets hampered. It is significantly important for the NATURALS to get regular feedback
of their client regarding the services they offered to them as it improvise their business chain and
model accordingly (Khakhina and Chataeva, 2021).
Competitors Analysis:
In the competitor’s analysis the identification has been carried out regarding direct and
indirect competitors for the salon business who can hamper the revenues of NATURALS.
Indirect competitors for the business are the products they are using in their salon such as hair
dryers, nail polish and similar other products they are selling from their store. In order to reduce
their impact, it is necessary for them to patent their formula for the herbals products they offer
from their salon. This will reduce the impact to an acceptable level. Naturals can also do one
thing that the products they offering to their customers could be sell through a different retail
outlet so that they can earn more profits on such products. The direct competition is those who
are their existing competitors such as James Roberts hair and beauty, Beauty and Bubbles, Pretty
Women hair and beauty salon and so on. In order to reduce their effects, it is important for
Naturals to use market penetration technique and keep the price as low as possible as the
beginning so that they can cover maximum market in short duration of time. Further STP
analysis is also being carried out below:
STP Analysis
STP analysis is considered as model that analyze the offered services and goods,
communication medium to provide all the information to their consumers. It is used to help the
organization to increase personalized and messages also prioritize the work to create common
interest of the consumers. This analysis is made by the entrepreneurs of Naturals to examine the
market gap and develop strategies related to market (Marcelli, 2019). All the essential elements
of STP Analysis are made in accordance with Naturals are mentioned thereunder:
 Segmentation:

In this phase, group of customers are divided into small denominations in accordance
with the characteristic and features. This will help the entrepreneurs of Naturals in
emphasizing on segmented customers and deliver personalized messages instead of
campaigning among large audiences. Usually consumer segments are used to divide the
factors like geographical boundaries, values, trends etc. In context to Naturals,
segmentation is made on the basis of interest, personality and business startups
(Mercader, Bruno, and Dacuno, 2020).
 Targeting: The next step of STP framework assists in identifying the audience and target
the certain group of consumers. Here, the entrepreneur of Naturals chooses the profitable
segment to optimize the profit by involving in the marketing campaigns. Positioning: At this stage, entrepreneur have valuable approach to select target group of
audience. This aims to create effective marketing strategic tool and identifies unique
selling price to engage large consumer base. The Naturals formalize the effective tool to
promote advertising tool and convey the true message about product in front of their
customer.
Projected 2 Year Income Statement and Cash Flow Statement:
2 Year Projected Cash Flow Statement are mentioned below:
2021 (£) 2020 (£)
CASH INFLOWS
Investments 15000 12000
Loans 5000 3000
Total inflows 20000 13000
CASH OUTFLOWS
Marketing 2785 2568
Products Purchase Cost 3684 3495
Salary to Staff 5231 4965
Other Expenses 1348 1245
Total outflows 13048 12273
NET CASH FLOW £6952 £727

2 Year Projected Income Statement are mentioned below:
2021 2020
Sales (Revenue) £26000 £31000
Less Cost of Sales
Herbal Products Purchases 7835 8300
Fright 8229 8321
Total Cost of Sales 16064 16621
GROSS PROFIT £9936 £14379
Less Expenses (Operating expenses)
Salary 2054 2096
Electricity 1289 1239
Insurance 1410 1410
Rent 1652 1652
Depreciation 950 950
Office supplies 1512 1752
Total Operating Expenses £8867 £9099
Breakeven
NET PROFIT £1069 £5280
Explanation of Suitable Sources of Funding:
For the funding of such business the with the help of investment and bank loan that has been
taken from the nationalised bank at 12 % rate of interest. The initial investment that has been
made are arranged with the help of family members and the friends. The loan that has been
obtained will be repayable on monthly instalment basis for the next 5 years. Further the structure
of the business as legal entity should be sole proprietorship at the beginning of the business and
later on it could be changed depending upon the expansion so far.
Break down of Start Up Cost:
The start-up cost that has been used in the business are mentioned below:
Start-up resources needed (these will include operating
resources)
Costs

Equipment £1200
Parlour Space £750
Herbal Products Used £250
Total Start Up Cost £2000
Future of Salon Business:
The business started initially with the intension that target audience are captured so that
regular flow of income is being started for Naturals. Once the customer base has been developed
that expansion could be carried out with an intention to open retain stores for sale of herbal
cosmetic products across Manchester. The focus of the business is to maintain regular flow on
income during the starting stage of six months and thereafter the expansion could be made. The
future prospects of Naturals to sell their product using the online platform also so that diverse
customer base could be developed for them for long run. Initially online platform generation will
take time and money and it is not possible at the beginning state for start-up.

CONCLUSION
The business plan is the written document that has been prepared by the individual who is
willing to start the business. In such written document the complete analysis has been carried out
regarding plan, proposed competitors, market trend and positioning, projected financial
statement that show the profitability of the project, start-up cost included in the project etc. In the
above report the business plan has been prepared for Beauty salon named as Naturals which
deals in providing salon services to their customer. The speciality of such Salon is they are
targeted 40 Plus customer as they suffer skin problem if they use regular cosmetic product.
However, Naturals uses herbal products which does not harm the skin which is the USP of the
business. At the end of the project the 2 year financial are also being attached which indicates
that whether such project is fruitful for the entity or not so that investment could be made
accordingly in the beauty salon business.

REFERENCES
Books and Journals
Assefnia, K., 2018. Specialty Smoothie Bar Business Plan (Doctoral dissertation, CALIFORNIA
STATE UNIVERSITY, NORTHRIDGE).
CAMPISI, G., 2018. Development of a business plan for the expansion of CESI in Southeast
Asia.
Khakhina, A. and Chataeva, A., 2021. Drawing up an effective business plan as a pledge of the
resultive strategy of the functioning of the enterprise.
Marcelli, M., 2019. Industry 4.0 and business intelligence: business plan development for a new
software launch in the market (Doctoral dissertation, Politecnico di Torino).
Mercader, A., Bruno, A., and Dacuno, A.M., 2020. Business Plan of Establishment of Vider
Zone in Barangay 186, Barrack Road, Tala, Caloocan. Ascendens Asia Singapore–
Bestlink College of the Philippines Journal of Multidisciplinary Research, 2(1).
Pérez Ortega, D.C., 2020. Business plan based on a new business idea: Gadget PC.
Prieto Estévez, S., 2022. Business plan and cleanrooms design of a pharmaceutical
plant (Master's thesis, Universitat Politècnica de Catalunya).
Wu, M., 2020. Development of a Business Plan with a Marketing Emphasis for an Eyewear
Company (Doctoral dissertation, California State University, Northridge).