Entrepreneurship and Leadership: Divine Beauty Business Plan Report

This report presents a comprehensive business plan for Divine Beauty, a proposed vegan salon in Rainham, London. It details the business concept, targeting a demographic of 18-50 year olds with cruelty-free makeup and nail services. The plan includes a thorough market analysis using PESTLE and Porter's Five Forces models, assessing political, economic, social, technological, environmental, and legal factors, along with competitive dynamics. The report outlines marketing strategies, including a 20% discount on products, loyalty programs, and monthly raffles. Operational details, resource requirements, financial analysis, and risk mitigation strategies are also discussed. The business aims to provide high-quality vegan products and exceptional customer service, focusing on capturing market share and satisfying customer needs within one year. The report is a detailed exploration of the salon's potential, covering various aspects from market research to financial projections.

Individual Business
Plan Report

EXECUTIVE SUMMARY
The success and growth of any organisation is depending on the planning. Business plan
is of important methodology for reducing the future risk with putting all activities in a systematic
manner. Business plan is a blueprint or road map which helps to guide a business person to run
their organisation in the complex business environment. Day by day the complexity of business
environment is increasing which becomes the main reason for companies to formulate their plan.
Organisation which focuses on business plan than they are over coming and reducing their
challenges as compared to other organisations. This report is focusing on all the activities which
should be included in the business plan of a company. It becomes more important for a new
business as they have no knowledge or experience in the marketplace.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Business prospects..................................................................................................................4
Market analysis.......................................................................................................................5
Segmentation analysis............................................................................................................8
Competitor analysis................................................................................................................8
Competitive advantage...........................................................................................................9
Marketing strategy..................................................................................................................9
Marketing communication mix............................................................................................10
Market development and expansion strategy.......................................................................11
Operational details................................................................................................................11
Requirement of resources.....................................................................................................12
Sources of finance................................................................................................................12
Financial analysis.................................................................................................................13
Risk analysis and mitigating strategy...................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Books and Journals...............................................................................................................15

INTRODUCTION
Business is a trading activity that enables individual to earn money from the marketplace.
Every individual wants to open their own business so that they grasp an opportunity of success
and growth. Businesses are the most common way for making money and it is identify that a
person to take higher risk is able to make higher profits (Kamshad). Those people want to earn
money and are able to take risk then they are always going for start their own business. It is not
an easy task to start a new business in the market place. It needs a proper business plan which
assists a business person to run their business in a systematic manner. Business planning is a
process in which a businessman make a roadmap that how all the activities are undertaken in
respect of run their business (Grit, 2019). Business plan is a blueprint which gives direction to
the owner of a business that what they have to do in which manner. So that's why this report is
focuses on a new business plan which gives detailed information about all the activities that
should be considered while start their business. For running a new business in the marketplace is
not an easy task and because of that owner need to consider some important things such as
market analysis, competitor analysis, etc. This report covers details of a new business idea and
products or services which offer to the customers in the marketplace. It also covers a market
analysis with appropriate tools, segmentation analysis, competitor’s analysis, strategies for
marketing, financial analysis, and risk analysis.
MAIN BODY
Business prospects
The name of a new business is Divine Beauty which supposed to introduce in the market
with the business plan. Divine Beauty is start up or small size business that open in Rainham,
London. Divine Beauty is a salon which provides makeup, nail art for both male and female.
This business is start with cost of approximate 10,000 pounds (Susanto and et. al., 2018). The
salon uses only vegans and curtly free nail polish and makeup materials at very good prices. This
salon is open for male and female both. The target audience is covered by Divine Beauty is 18-
50 years age. That means male and female which are under this age able to take services of
Divine Beauty. The reason behind choosing this business is because day by day vegan industry
and beauty industry are doing very well in the marketplace. It is found in the last year that beauty
industry was thrived. It becomes very attractive for young generation because now every person

wants to use vegan products and cruelty free makeup. Now makeup becomes the essentials of
daily life and that’s why it is necessary for people that they should use eco friendly products
which can not harm their skin as well as environment (Malinda, 2019). This business completes
the corporate social responsibility as it used only vegan products. Those customers who want to
purchase the products of Divine Beauty get an extra 20% discount. Company is also giving offer
in which if a client takes services for 10 times than the next service will be free for them. They
also provide many facilities such as refreshment like tea, coffee, etc. In addition to this, they are
conducting a monthly raffle in which the first three winning clients get free services in their
salon.
Aims: “To provide best quality of vegan products with beauty of person.”
Objectives: Divine beauty has certain objectives which are mentioned below:
 To capture the market with providing best customer experiences.
 To satisfy customers needs and wants with their cruelty free makeup and vegan products.
 To increase the market share within one year.
Management: There are four employees working in the company in which one of the
owner who manages all activities of Divine Beauty (Inkon, 2019). Other two are employees who
offer services to the customers so that they can get best experience and the remaining one is
doing cleaning of salon. It becomes very necessary for Divine Beauty that they should manage
their business for long-term running in the market. But for that purpose company need to
perform more activities in order to run their business in the market such as market analysis,
competitor analysis, etc.
Market analysis
Market analysis is one of the important ask for a new or an existing business that they
need to perform a market analysis which helps to understand the nature and dynamics of market.
It is identified that market it is very complex and filled with full of dynamics (HARUNI). This is
due to many factors such as up gradation in latest technologies, continuous changing in taste and
preferences of customers, etc. That's why Divine Beauty needs to analyse the market. Market
analysis can be conducted in many ways and it become more effective if company use some
important tools such as PESTLE analysis and Porter’s Five Forces Model, Industry statistics, etc.
These tools become very important for organisation as they are able to analyse the market
effectively and efficiently.

PESTEL analysis
PESTEL analysis is a tool that helps to analyse the external environment which creates
many e challenges for organisation. To start a new business it becomes very important for
businessman that they should firstly analyse the external environment because it gives a great
impact on the growth and development of organisation (Peng, 2017). Divine Beauty is a new
start-up which needs time to manage and to run their business in the new market. But they need
to understand the market because it creates many uncertainties organisation which can be created
barriers in the success of company. PESTEL is the best tool to identify all factors of external
environment which may be impact on the organisation functions and operation. PESTEL has
some important factors which are mentioned below:
 Political factors: It is the factor that consists of all government intervention in the
organisation such as political stability, corruption, text policy, government policies, etc.
This gives a great impact on the organisation and that's why company need to take in the
consideration when they assessing the attractiveness of market. Brexit is a main factor
which impacts on trade policies of UK that directly affects on every business.
 Economic factors: It consists of inflation rates, economic growth, interest rates,
disposable income, etc. These are the factors which may be direct or indirect impact on
company as its effects on purchasing power of consumers (Podobnik, 2021). COVID-19
is become one of the factor which decline overall economic growth of UK that gives a
great impact on every organisation and it becomes very tough for Divine Beauty to start
their business after pandemic situation.
 Social factors: Social factors consist of customs and values, demographic characteristics,
norms, etc. are impact on marketers as they have to target their certain customers. For
marketing of a products or services of Divine Beauty they should understand and analyse
the current trends in society.
 Technological factors: It consists of all fact technological factors which include
automation, level of innovation, research and development, etc. Day by day the
technological up gradation is increasing which becomes challenge for organisation that
how they can able to use new technologies (Whitmore, 2018). In a beauty industry, there
are many equipments come in front of the salons which is the work of beauticians. That's
why they should focus on to adopt because their Technology become obsolete very soon.

 Environmental factors: Divine Beauty is already taking care of environmental factors as
they use vegan products which are eco friendly and cannot harm any environment as well
as the skin of human beings (Lin, 2019). It is the duty of every organisation that they
should focus on the activities such as climate change, air and water pollution, natural
disasters, etc. as they are all occurring due to human activities. That's why it is the
corporate social responsibility which should be fulfilled by every organisation.
 Legal factors: It includes antitrust laws, education laws, consumer Protection laws;
health and safety laws, etc. should be followed by every organisation in order to run their
business successfully. It is the legal duty of organisation that they should perform
activities under rules and regulations.
Porter's five forces model
Porter's five forces model is the model that used for analyzing the company’s competitive
environment. It consists of five main forces which affect every organization. For new
organization it is necessary that they should analyze competition in the market with the help of
this model so that they can take corrective action in order to deal with competitive world.
 Competition in the market: It is the first force which refers to number of competitors
exists in the market (Jones and Georges). In beauty industry there are already number of
customers exist in the market which become very tough for Divine Beauty to achieve a
position. The competitive rivalry is high in beauty industry which becomes a challenge
for Divine Beauty.
 New entrants in the market: In the case of beauty industry, it becomes easier to enter in
the market as they require less time and money to start their small business. That’s why
the new entrant in the market is also high which needs Divine Beauty to formulate
strategies for establishing position in the market.
 Power of suppliers: Beauty industry faces low bargaining power of suppliers because
there is high number of market player exists which supplies diverse range of products in
the market (Rocafull Piqueras, 2018). It is identified that small and large scale
manufacturers producing many beauty products which reduce the power of suppliers. It is
beneficial for Divine Beauty as they cannot face and complexity and influence on market
prices.

 Power of customers: Beauty has a high bargaining power of customers that means
customer can influence the prices of products because it increase competition and gives
high substitute to the customers. It becomes very tough for Divine Beauty to earn profit
as they cannot able to increase prices of their services and products.
 Threat of substitutes: There are number of competitors available in the market which
creates high threat of substitute for Divine Beauty. It becomes very necessary for
company that they should provide best quality of products with innovation which makes
them unique as compared to other organisation.
Industrial statistics
The cosmetic industry is an industry that is grown year by year which results becomes a
billion dollar industry (Abdullah, 2020). Consumers are getting more aware about the cosmetics
products because now they know the importance of cosmetics. It helps them to improve their
image, self esteem and confidence. That’s why it is rising day by day. It is identified that global
cosmetic industry generates dollar 160 billion which shows that both males and females equal
give importance to cosmetic industry. Show the decision of opening a Divine Beauty salon is
right as they have chances to grow their business very well.
Segmentation analysis
Segmentation is the process where an organisation is focusing on division of their
customer into small groups with their specific characteristics such as age, income, personality
and behaviour. In the case of Divine Beauty segmentation plays a very important role because
children’s are generally not their target audience (Turner and Endres, 2017). That’s why they
consider age for segmentation. Divine Beauty segmented their target on the basis of age. The
focuses on 18 – 50 years age population which covers both male and female. It is very necessary
that they should study of customers who make them easy to advertise their company’s products
and services. This is more important because their advertisement should be highly targeted to the
characteristics of segmented group. That's why segmentation analysis is necessary. Generally
segmentation analysis consists of five important types that are demographic, geographic, price,
time and psychographic segmentation.
Competitor analysis
For a new business it is very important that they should know about their competitors in
the market. It helps them to make a strategy in order to run their business very well and stay for

long term period in the market. But competitor analysis is not just focusing on identification of
number of competitors in the market but also it focusing on strategies which used by their
competitors (Bulatova, 2018). This becomes very helpful for organisation as they can improve
their strategies for selling and marketing purpose. It will help to take a competitive advantage. It
also helps in identification of their products unique value proposition which makes them
different from their customers. This is the one of the most important target of any organisation
and it becomes very helpful for Divine Beauty to run their business in a flow. It can be done with
the help of following steps that are as mentioned below:
 Identification of competitors that is exists in the market.
 Determine the products which offered by their competitors to the customers.
 Analyse the sales tactics of competitors.
 Company should analyse the competitors pricing which they offer to the customers.
 It is necessary to understand the marketing strategy of competitor’s products.
 Make a note of their competitions content strategy.
 Technologies used by their competitors.
 Analyse competitor’s content which ensures the level of engagement.
 It is necessary to observe the promotion of their marketing content.
Competitive advantage
It is very necessary for organisation that they should analyse the factors which helps to
take a competitive advantage in the market. It helps organisation to grow their business
successfully (Bacon and Tate, 2019). Competitive advantage is reference to those factors which
allow companies to produce goods or services better or cheap as compared to their competitors.
It is an additional advantage which can gain by organisation with the help of their strategies.
Divine Beauty is already having additional factors which help to gain competitive advantage in
the market. Their products or services are unique from other organisation and provide at lowest
cost which become the factors that attracts consumers. Divine Beauty will be use vegan products
and cruelty free makeup which every consumer wants. This will help in taking a competitive
advantage even in the competitive business environment.
Marketing strategy
Marketing strategies is one of the most important strategies that should be adopted by an
organisation if they want to stay in the market and create their own position. Marketing strategy

is refers to a plan that helps to reach their prospective consumers for turning them into their
potential buyers (Damayanti and Rahadi, 2021). Divine Beauty is necessary to formulate
marketing strategies in an appropriate way and they should be formulated after analysing the
market environment. They have menu options for choosing marketing strategies such as
relationship marketing, cause marketing, scarcity marketing and undercover marketing. Divine
Beauty should adopt those strategies which helps them to create values for their organisation and
give a survival for long term period in the market place. It should be unique and different from
their competitors which help to take a competitive advantage.
Marketing communication mix
Marketing of products or services of any organisation is the most important tool which
helps to being aware of their potential buyers about their products or services (Efstathiou, 2018).
That’s why it is very necessary that they should adopt those tools and methods should which
helps to promote the company’s products to their target customers. Marketing communication
mix are some important methods which used by organisation in order to promote products in
front of their targeted customers. It consists of 5 important elements that are as mentioned below:
 The advertisement element: It is identified that advertising element is a most prominent
element which comes under communication mix as it includes messages which business
wants to convey to the targeted audience (Sousa, 2019). It can be done with the help of
print publication, radio station, etc. Divine Beauty is a new business which cannot record
this element because it requires lots of money.
 Discount and promotion: These are similar to advertising in which companies offer
discounts in order to their products or services. It includes percent off deals, coupons and
rebates. Beauty already provides 20% discount for the new customers in order to attract
for purchasing of their services.
 Direct marketing to target customers: It is the best method in communication mix which
used by organisation to personally talk with their customers. It’s really helps to
understand the customer’s behaviour which includes email, online or print surveys, etc.
 Public relations and messaging: In this method company involves messages which they
want to communicate with the help of mass media that’s why it is most similar to
advertising.

 Personal selling and direct marketing: When new business is open then they always
adopt this method as it is cheap as compared to other communication mix methods
(Olaore). It helps to convey the message in which they provide detailing of their products
and services to the customers directly. But for that purpose company use is their sale
force in order to sell their product directly to customers with the help of personal selling.
Market development and expansion strategy
Divine Beauty is a new start-up which needs at least one year to set their position in the
market. For their growth and success it is very necessary for organisation that they should adopt
market development strategies (Maňáková, 2018). Market development strategy is refers to a
growth strategy in which companies introduce their products in front of their target audiences. It
introduces their products to that audience who have not knowledge of their production services.
There are many types of market development strategy which can be used by organisation but it
depends on the nature of their products or services. Some of the market development strategies
are mentioned below:
 Geographic expansion- It is this strategy where organisation choosing new place to
introduce their products or services in front of new customers (Tamarit Marzo, 2020). For
example, Divine Beauty is offering their services in Rainham, England. But with the use
of this strategy they tried to introduce their products in more cities and countries.
 Attracting non users: Companies ultimate goal is to increase their customers but it is not
necessary that all customers know their products or services. So this is strategy is
focusing on making a plan which tries to influence or attract non users of their products.
It can be done with the help of providing cold outreach, offering free trials, etc.
 Up selling to existing customers: This strategy is focusing on building relationship with
customers who are benefited to their products.
Operational details
Divine Beauty is offering the services of nail polish and makeup as it is increasing day by
day to both male and female. They operate their business in Rainham, England. They started a
new business which has no other subsidiaries. They have four employees which run and manage
the business in the marketplace (Paavilainen, 2018). They provide many benefits and office to
the customers such as discount of 20%, free services after registration of 10 services, first 3

winner get free services in a monthly raffle, and additional benefits such as drinks in beverages
at free of cost. They use only vegan products which are helping in doing cruel free makeup.
Requirement of resources
New business needs many resources in their organisation in order to comments their
business operations. It is very important for organisation that they should allocate all resources.
Allocation of resources is must and that's why they firstly need to identify the available
resources. After identification and analysis of existing resources now they have to make a list for
more necessary resources which helps to start the organisation functions. Some important
resources are required by every organisation such as money, man, machinery, etc. These sources
are must that every organisation should have in order to start their functions. Divine beauty
requires some important resources that are as follows:
 To start a business Divine Beauty needs money or financial resources for purchasing raw
materials which can be used in the services that they offer to customers. Financial
resources are most and business cannot be start without these resources.
 Human resource is the most important resources which cannot be avoid by owner of
Divine Beauty. For this reason, they have four employees recruited in order to offer
services to customers.
 Other essential resources such as equipments which are used in salon should be arrange
or purchase. Divine Beauty needs many types of equipment because day by day latest
technology increases and provides assistance to the beauticians.
Sources of finance
Financial resources are very important to start a business that’s why it is known as
backbone of any organisation. Without financial resources organisation cannot purchase
anything which results not to start a business. Financial resources are needed at every stage of
organisation functions such as purchasing of raw materials, salary for employees, miscellaneous
expenses like rent, light, etc. For that purpose, Divine Beauty needs financial resources. Starting
of new business finance can be arranged in many ways. In the case of Divine Beauty, they are
self independent in arranging of finance as they have enough money to start a business. Some
important sources of finance are mentioned below:
 Savings: The first source of arranging finance is personal savings which every person
save in order to start a business. But it is identified in every case that personal savings are