Hair and Care: Detailed Business Plan Report for Entrepreneurship

This report presents a comprehensive business plan for a beauty salon named 'Hair and Care,' focusing on the UK market. It begins with the motivations behind the business idea, including personal and professional reasons, and details how the business concept was generated through various research methods such as brainstorming, focus groups, internet research, mind maps, surveys, and questionnaires. The report conducts feasibility studies covering service, market, organizational, and financial aspects. It outlines the start-up funding sources and provides details on the services offered, including hairdressing, coloring, styling, and other beauty treatments, along with a pricing strategy. The marketing plan utilizes the 5Ps of marketing, describing the products/services, place, price, promotion, and people involved. The industry's attractiveness is analyzed using Porter's Five Forces model. The report concludes with a vision for the business, aiming to be a customer-centric salon catering to a specific target demographic, and emphasizes the importance of confidence for entrepreneurs. References to support the research are also provided.

BM564 Enterprise and Entrepreneurship
1

Introduction
In this report, there will be a discussion of the motivation for a business of beauty salon. The
name of the business will be Hair and Care. As there are profits in this business sector,
there are possibilities that the investors show interest. Also, earning within a salon is quite
easier in the UK. In this business, there will be a good guideline. This business will be based
on service. The way for developing this business will be focused here. Entrepreneurship skill
is necessary in the case of business. The importance of this skill will be discussed here too.
Motivation for choice of business
Personal reasons
The people of the UK live a busy life. They don’t have that much time to take care of their
hair and body. So, a beauty salon from the perspective of the UK is a necessary service. My
mother used to work at a beauty salon. I am inspired by her. I am familiar with the technique
of hair cutting (Sen, 2014). Besides, I have acquired some certificates from courses regarding
hairdressing and styling. From my early childhood, I was interested in this job. I focus on the
new style of the celebrities and try to apply them to people. I am passionate about this task.
Professional reasons
In the UK, the future of beauty salons is not that bad. Annually, beauty salons of the UK can
easily earn 5000 pounds to 7000 pounds. From this it can be said, there are demands of this
service. An entrepreneur will have to deal with fewer difficulties while opening a salon.
Managing a salon can be easier for this reason. The demand for the service is changing. If the
demands are met, there are chances that this area will play a major player in the business. In
the post-pandemic situation, people are trying to be. So, there are chances that this kind of
self-caring service will have a special appeal in the market.
How the business idea was generated
Starting a start-up like Hair and Care needs an effective approach to strategy. To ensure an
effective strategy, the help of the research is taken. While researching, marketing objectives
are also focused (Salam, 2012). The steps are followed in the research are explained below:
2

Brainstorming: Brainstorming is necessary while going for research. brainstorming can help
to figure out the challenges and the opportunities for Hair and Care as an emerging startup.
Also, various issues that can create serious issues for Hair and Care can be figured out. With
the help of brainstorming, it will be possible to figure out the solution to problems.
Focus groups: The group of people with common traits or similar experiences can be
considered as the focus groups. Their pattern of behavior or reaction to a certain situation can
be helpful in the case of research. These reactions can help to reach an objective.
Internet research: Internet research is considered the secondary source of research.
Sometimes the data collected from the internet can be proved helpful. But sometimes the data
can be less helpful. The vague data is found because the research is not focused on the need
of the owner. The owner of Hair and Care would have to be sincere while choosing data. He
must know which data is relevant and which is not (phillips, 2014).
Mind Maps: In this process, the obtained information is visualized with the help of
diagrams. Through this process, concepts, tasks can be presented with the connection
between concepts and the tasks. As a result, figuring out the flaws will be much easier.
Again, the understanding of the concepts and the tasks will be easier. The execution process
becomes easier when the concepts and tasks are visualized. To survive, in the long run, Hair
and Care would have to go for a strategic approach (Hutchinson, 2016). This process is
effective enough for the execution process.
Surveys: Survey is a reliable method of the research process. This process allows managing
the information from the people directly. Surveys can be conducted by asking questions to
the people who will be associated with the business further. Through the survey process, the
demand of the customers will be able to measure (Horvath and Forte, 2011).
Questionnaires: Some open-ended questions and closed-ended questions are used to get the
idea of the target audience. In this process, email is a great way to help.
Feasibility studies conducted
The feasibility studies will cover four areas they are Service feasibility, market feasibility,
organizational feasibility and financial feasibility.
3

Service feasibility: Through this study, appeal and the demand of the business and customers
will be evaluated easily. Any business with less demand in the market cannot survive longer.
So, the demand for the service needs to be evaluated. Hair and Care are going to give the
service of hairdressing, face treatments, body spa, waxing etc. In the market, there is a huge
demand for these services. From the perspective of the UK market, there is a huge market of
personal care. People of the UK try to add color to their lives with some changes. In the UK
there are 8766 beauty salons and an increase of 73% since 2014.
Market feasibility: The success of the product or service will decide the market feasibility
of this certain product or service. In the UK, there are a huge number of beauty salons. These
are running successfully their operations. From this situation, it can be said that there is a
demand o this service and the chance of getting success in the market.
Organizational feasibility: This is about if the organisation is capable of utilizing their
management and resources properly while they are going launch their product or service n the
market. To evaluate this feasibility, the values and practices of the values need to be
measured of the Hair and Care (Hart, 2021). Also, professional skills need a certain amount
of focus.
Financial feasibility: To start a business, start-up cash is a necessary factor. The financial
performance needs to be assessed to get a comprehensive idea of the business.
Start-up funding resources
Owner and owner’s family will fund in this project to get profit. Bank will comw forward to
get interest from the loan. The raised fund is almost 41000pounds which is enough to start a
startup. The amount is determined through research. In the UK, the smallest start up can
cause 5000 pounds. To maintain all the operation, the cost of the salon can be around 40000
pounds.
Source Amount
Owner Funds 20000.00
Bank Loan 18000.00
Family Loan 3250.00
4

Total funds raised 41250.00
Details of the product/service to be offered
In Hair and Care, hairdressing, colouring, styling, waxing and other forms of hair removal.
will be available as a form of service (Grey and Antonacopoulou, 2017). Hair and Care will
offer nail treatment too. As a beauty salon, facial and skin care treatments will be offered. In
the UK market, there is demand for Massage, tanning and other complementary therapy such
as aromatherapy. So, these will be available here too. People of the UK focused on their
regular lives more. They cannot afford to take care of themselves regular. Hair and Care will
offer solutions for these issues. It will offer self-care activities under one roof. People have
the desire to look like celebrities in their regular life. So, Hair and Care will be offering some
unique and trendy hairstyles as their signature service.
Service Pricing
Haircut From 18.95 pounds
Shampoo and haircut From 23.00 pounds
Wash and blow dry From 20.00 pounds
Grooming package From 21.00 pounds
Treatment From 5.50 pounds
Colour packages From 73 pounds
5Ps of Marketing
5ps will be used to define the potential market properly.
5

Products/Services: Hair and Care will try to provide the best quality of their services. The
demand will be met through maximum effort (Gopal, 2009). The services that will be found
here are: Haircut, Shampoo and haircut, Wash and blow dry, Grooming package, Treatment,
Colour packages etc.
Place: The service of the Hair and Care will be available at a convenient place for the target
audience. They will find their service in time. Hair and Care will be situated at Clapham,
London.
Price: The price will be affordable for the target audience of Hair and Care. To decide the
price some factors will be considered. These are the cost of the materials, quality of the
service, brand position in the market, competition etc. Service list with the price which is
discussed above are showing that the price range is starting from an affordable amount.
Promotion: While starting a business, promotion is necessary to create awareness about the
service among the target audience. Hair and Care will take the help of social media,
advertisements, website marketing etc. In social media, the uniqueness of Hair and Care will
be presented.
People: The people working in Hair and Care will be skilled and confident. They will enjoy
their work within Hair and care. As example the assistant manager of Hair and Care has the
experience of 3 years working in a renowned salon named Beauty Kulture.
The attractiveness of the industry
Porter’s renowned five model is discussed below to define the attractiveness of the industry.
Supplier power (Low): Supplier’s bargaining power, in this case, is low. The reason behind
it is there are a lot of suppliers in the market who will be able to provide similar products.
Buyer power (High): Buyers are quite powerful because there is a lot of option. Hair and
Care will have to grab the customers with the quality. It might be the unique selling point.
(Hart, 2021).
Competitive rivalry (High): There is a huge competition for Hair and Care and there are a
lot of alternatives in the UK(Horvath and Forte, 2011).
6

The threat of substitution (High): In the UK, there are a lot of beauty salons. Customers
can easily go to any beauty salon (Goddard and Melville, 2011). So, Hair and Care will have
to consider the high threat of substitution. Alternatives of this hair salon existing in the UK
are The Hair Shop, Beauty Kulture, Cute Hair& Beauty Salon etc.
The threat for the new entry (High): To start the business of a beauty salon won't be that
much costly. So, the threat of new entry for Hair and Care is huge. Anytime anyone can start
this business.
Vision for the business
Hair and Care are trying to target the people of middle earnings. Their mission is to be a
customer-centric salon, where customers will be able to get the service according to their
demand (Dwyer, 2006). Specific goals of Hair and Care is to serve the children and women
of age 18 to 30.
Conclusion
To be an entrepreneur, confidence is necessary. Without confidence, entrepreneurs might not
be able to face the primary challenge while starting a business. The challenges and the
opportunities need to be evaluated properly.
7

References
Dwyer, J., 2006. Customer diversity and the future demand for outdoor recreation. 9th ed.
Fort Collins, Colo.: U.S. Dept. of Agriculture, Forest Service, Rocky Mountain Forest
and Range Experiment Station.
Goddard, W. and Melville, S., 2011. Research methodology. 11th ed. Kenwyn, South Africa:
Juta & Co.
Gopal, N., 2009. Business communication. 6th ed. New Delhi: New Age International.
Grey, C. and Antonacopoulou, E., 2017. Essential readings in management learning. 12th ed.
London: Sage.
Hart, P., 2021. Studies in Profit, Business Saving and Investment in the United Kingdom
1920-1962. 4th ed. Milton: Taylor & Francis Group.
Horvath, C. and Forte, J., 2011. Critical thinking. 12th ed. Hauppauge, NY: Nova Science
Publishers.
Hutchinson, R., 2016. A Comparison of Intake Counselors' and Clients' Perceptions of
Clients' Presenting Problems. 12th ed. London: Pearson.
phillips, W., 2014. Research plan. 9th ed. Denver, Colo.: Animal Damage Control Program,
U.S. Fish and Wildlife Service, Denver Wildlife Research Center.
Salam, Z., 2012. Organisational management. 6th ed. London: CIMA Pub.
Sen, J., 2014. Human factors in management. 10th ed. Beverly Hills, Calif.: Roundtable
Learning Systems.
8