Detailed Business Plan and Financial Analysis: Dave Beauty Salon

This project presents a comprehensive business plan for "Dave Beauty Salon," a proposed establishment in the UK. The plan outlines the salon's core offerings, including hair, facial, and nail services, along with a range of organic beauty products. It details startup costs, ongoing expenses, and potential funding sources. The report includes a projected income statement and cash flow statement for the first year, highlighting revenue, cost of sales, and operational expenses. It identifies assets and liabilities and provides a market analysis, emphasizing the importance of competitive advantages and customer satisfaction. The plan aims to provide a roadmap for the salon's operations, financial sustainability, and market positioning.

PROJECT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question. 1..............................................................................................................................3
Question. 2..............................................................................................................................4
Question. 3..............................................................................................................................4
Question. 4..............................................................................................................................5
Question 5...............................................................................................................................5
Question 6...............................................................................................................................6
Question 7...............................................................................................................................7
Question 8...............................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This report contains a detailed business plan. Business plan is a blueprint which contains
all relevant information and details regarding a newly started business (Flori, 2018). Such plan
includes basic details about the company, its capital requirement for set up, sources of finance by
which a company is financed, products and services offered to the customers. This report is
about “Dave Beauty Salon” which will establish in UK. In this report, a detailed analysis has
been carried out about the basics of the company, all type of set up costs required to incur,
sources of finance by which it can be financed, ongoing costs or overheads it require to incur, its
revenue model, different assets and liabilities of the business, market survival strategy. As well
as projected profit/loss and revenue for the first year of its incorporation are provided in the
report.
MAIN BODY
Question. 1
Dave Beauty Salon will be planning to establish. The main USP of beauty salon is to
provide efficient services to the customers with products which are made up of natural and
organic herbs.
The products and services the salon is offering are listed below: -
Products: -
1. Hair Colour
2. Face wash
3. Bleaching cream
4. Face pack
5. Moisturiser
6. Face powder
7. Face cream and lotion
8. Foundation
Services: -
1. Facial
2. Bleaching
3. Hair colouring, cutting, straitening

4. Nail art
5. Bridal Make-up.
Question. 2
To set-up a business, capital is required. There are many costs which are required to
incurred by the beauty salon to start-up the business. These can have classified as one time cost
or ongoing costs, essential costs or optional costs, fixed costs or variable costs (l Aziz, 2019). A
list is provided below to identify the above stated set-up costs required to incur by beauty salon
which is as follows: -
 Research costs incurred for researching the herbal and organic products regularly to cater
the customers.
 Rental cost for the space from where the business will be conducted.
 Basic supplies cost.
 Advertising costs to advertise products or services to the customers so that customers are
aware of products and services offered by the salon.
 Employee costs to pay the employees of the salon.
 Office furniture costs to set-up the salon.
 Interest costs on the debt acquired for the capital requirements.
Question. 3
Finance is an important concern for newly established businesses. Every start-up needs
access to capital, whether for funding product development or paying salaries to employee.
Here are some of the sources through which the beauty salon can obtain funds: -
 Personal financing
 Personal credit lines
 Family and friends
 Peer-to-peer lending
 Crowdfunding
 Microloans
 Vendor Financing
 Purchase order financing
 Factoring accounts receivables.

Question. 4
To make the business sustainable some costs are required to incurred on regular basis.
These are the costs required to run a business for longer period. These can be in nature of either
fixed or variable. Ongoing costs are the costs which are paid regularly to meet everyday
expenses. In order to make the salon sustainable for longer period, it required to incur many
ongoing costs. These can be -
 Rental costs
 Interest costs
 Basic supplies costs: - electricity costs, maintenance costs etc.
 Labour costs.
 Web hosting costs.
 Operation costs.
Question 5.
Revenue models describe the process by which business obtains funds through its
operations (RAHMA, S.A. and IDRIS, 2021). Target customers of beauty salon are customers
who are of age gap 18 to 40 years having skin problems or who use these cosmetic products.
Products of beauty salon will make sure that their customers will experience organic products
helping them to solve their skin problems and services of beauty salon will help the customers to
experience quality services to maintained their health. It is significantly important for the beauty
salon to obtain feedbacks from their customers regularly so that it will help the business to
improvise their products and services to cater qualitative services to the customers.
Beauty salon will offer its various products and services to the customers for a reasonable
price. Firstly, various services of beauty salon are offered to the customers and then they will
make payments for such services. Services can be offered jointly or individual, to make them
lucrative reasonable discounts are offered upon such services. By offering discounts, its
customers basis and repeat customers will increase.
Question 6.
In the first year of their incorporation, sometimes it is possible that start-up is non-
profitable or at break-even point. Businesses are required to incurred a huge advertisement costs
or sales promotional costs to advertise its products and services to general public (Lipp, 2021).
The projected income statement for the first year of the beauty salon are provided as follows: -

Particulars 2021 (£)
Revenue £26000
Less:- Cost of Sales
Herbal products Purchase 8635
Freight 3454
Total costs of sales 12089
GROSS PROFIT £13911
Less:- Expenses
Salary 4190
Electricity 2165
Insurance 1245
Rent 1652
Depreciation and amortization 950
Financial costs 1425
Office supplies 1512
Total Operating Expenses £13139
NET PROFIT £772
Projected cash flow statement are given below: -
Particulars 2021 (£)
Cash Inflows
Investments 17000

Loans 4550
TOTAL CASH INFLOWS £21550
Cash outflows
Marketing 2785
Products purchase cost 3684
Salary to staff 5231
Other expenses 1348
TOTAL CASH OUTFLOWS £13048
NET CASH OUTFLOWS £8502
Question 7
There are no. of assets and liabilities a business concern possesses. Assets are the
resources controlled by an enterprise having a right to befitted by those resources having
potentials to generate economic benefits (Singh, Sontakke, and Nayak, 2020). Liabilities are
present obligations caused by past events to transfer economic resources to another party by the
enterprise. These assets and liabilities can be either current or non-current.
Beauty salon can possess several assets which are listed below: -
1. Financial assets: - investments
2. Inventories
3. Accounts receivables
4. Tools
5. Cash and cash equivalents
6. deferred tax assets.
7. Prepaid assets.
Beauty salon can also have liabilities as well which are as follows: -
1. Owner's Capital
2. Financial Liabilities: - debts.

3. Accounts payables
4. Accrued interest on debts
5. Advance tax liabilities
6. Outstanding expenses.
Question 8.
A detailed market analysis has been carried out in which the beauty salon will operate.
Market analysis is very crucial part as it provides information regarding competitive
environment. Competitors have been identified for the beauty salon which are operating in the
same market addressing the same customer base as of Dave Beauty Salon. To get an edge over
the competitors, beauty salon should focus on the quality and uniqueness of products and
services offered to the customers as customers' satisfaction are very substantial for the salon to
run in longer period.

CONCLUSION
The business plan is prepared by the businesses before starting their operations. It
provides thorough information regarding the market environment in which it willing to operate,
customer base whom it is planning to cater. Dave beauty salon will operate in a customer focus
market, in which it required to emphasize on improving the qualitative aspects of the products
and services offered by the salon. Projected income statement and cash flow statements are also
provided in this report indicating whether it will be beneficial and sustainable project for long
run.

REFERENCES
Books and Journals
Flori, G., 2018. Business plan for an Autonomous Driving Formula car in the FSG17
competition.
l Aziz, O.B.A., 2019. Business plan for spreading awareness and impacting buying decisions for
eco-friendly diapers.
Singh, H., Sontakke, S. and Nayak, S.K., 2020. Developing a detailed business plan (farm to fork
model) for livestock (fisheries) in a specific state (Jharkhand) of India.
RAHMA, S.A. and IDRIS, I., 2021. BUSINESS PLAN PENGEMBANGAN BAVERLY
WEDDING ORGANIZER (Doctoral dissertation, UNDIP-Fakultas Ekonomika dan
Bisnis).
Lipp, M., 2021. Business Plan-Vorlagen im Internet–Eine vergleichende Darstellung im
deutschsprachigen Raum.