Business Enterprise: Hair Salon Business Plan with Peer Review

This project outlines a business plan for 'Gloss Hair Salon,' a startup aiming to provide affordable, world-class salon services. The plan includes key partnerships with brands like L’Oreal, market segmentation targeting both genders and children, and a value proposition focused on accessible glamour. The business model canvas details key activities such as haircuts and hair spas, resources like expert stylists and quality products, and customer relationship strategies including discounts and personalized gifts. Peer group reflections led to improvements in customer segmentation, cost structure, and marketing strategies, emphasizing the importance of children as a customer segment and incorporating print media for advertising. The plan concludes that maintaining quality services at affordable prices and adapting marketing strategies are crucial for success.

BUSINESS ENTERPRISE-CREATING YOUR OWN BUSINESS
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Table of Contents
Introduction:....................................................................................................................................3
Original Business Concept:.............................................................................................................4
Business Model Canvas...................................................................................................................6
Peer Group Reflection:....................................................................................................................7
Concept Improvement Reiteration...................................................................................................9
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11
Introduction:
A foundation of any new business is an innovative mind. When a creative idea strikes an
individual, which is in accordance with the needs of the society and economically viable at the
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same time, a new business is established. The main aim of every business be it a start-up or a
large business organization is to maximize profits and to cater to the needs of the society. The
idea should be unique and such that it grabs the attention of most of the customers in both the
domestic and the global market and can sustain in the competitive market environment. This
project aims to propose a business idea, and thereby considers the opinion of several peer groups
on the same, which will lead to successful alterations in the proposal for business development.
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Original Business Concept:
Businesses focussed on hair salon providing services such as hair colour, hair spa, and haircuts
and some others. The salon industry are extremely profitable businesses, and is very unlikely to
suffer major losses (Scarborough, 2016).. therefore start-ups in this sector are much encouraged.
‘Gloss Hair Salon’ is a hair salon start-up who’s main aim is to provide world-class salon
services to the common man at affordable prices by employing celebrity hair stylists. The key
partners in this business would be L’Oreal. Head turners and Tony, and Guyz. The organization
will spread its branches all over UK, and for the purpose of business development, the views of
various peer groups would be considered.
Key partners: The key partners in this business are L’Oreal, Head turner and Tony and
Guyz .L’Oreal being the number one beauty and cosmetic brand, such partnerships helps to
promote this new business. Additionally, having L’Oreal as a partner would help the salon to
obtain hair styling and hair care products at a much lower cost (Perry et al., 2018). Moreover,
partners like Head Turner and Tony and Guyz would enable the company to bring in
professionals to train their employees.
Customer Relationship: Expert stylists would provide Customers varied range of salon services
such as hair spas, hair colours and haircuts at affordable prices. Customers can make prior
appointments with stylists of their choice according to their schedule by a telephone call or a
simple message. The customers can share their feedbacks and grievances in the social media
pages and the salon website, or using the screen provided in the salon. Their feedbacks would be
highly prioritised. First 30 customers would be provided 20 percent discount in each services.
Value Proposition: The cost of the services provided and the benefits and the values the
customers are given from the organization comprise this category (Onsongo and Muturi, 2015).
The company will give discounts to its regular customers and send birthday and anniversary gifts
to its customers, which would widen its customer spectrum and enable it to reach the global
market. Its value proposition would be; “glamour at your hands reach”, based on the idea of
provision of good quality services in moderate pricing.
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Segmentation: The beauty trends change from season to season. In addition, the beauty choices
and hair styling trends change from person to person and vary across geographical boundaries.
Thus in order to, cater to the varied market needs, the company would consider segmenting the
market by using geographical and demographic segments. It would provide services to both men
and woman and would first target a metropolitan as the number of customers would be high in
such places.
Channels: The salon services would be directly available to the customers without the
involvement of any third party such as ecommerce site or social media platforms (Scarborough,
2016). The customers must visit the salon to avail the services.
Resources: The major resources of this business include well-trained expert hair care
professionals, expert hair stylists, hair care and hair styling products and equipments from
reputed brands. The proper and judicious use of these resources would help the business to make
its mark. Financial resources would be gained from the partner companies.
Key activities: The key services provided by the salon would be haircuts, hair colour, hair
straightening, hair smoothening, hair curling and hair spas and several other treatments such as
Moroccan oil therapy and dandruff treatments.
Budget plan for the business:
Particulars Cost
Human resources cost $1,20,0
Products cost $3,50,0
Salon rent $5,00,0
Others (Electricity bills, phone bills, water
bills)
$7,000
Total $977,0
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Customer
Segments
Ladies
Gents
Value
Proposition
Giving regular
offers, discounts
to customers
Key
Activities
Hair cut, hair
spa, hair
colour hair
styling, and
smoothening
Key
Resources
Human
Resources: 4
hair stylists
Financial
Resources:
key partners
Material: Hair
care products
and treatment
equipments
Customer
Relationship
Sending
birthday and
anniversary
gifts to
consumers
Channels
Direct
provision of
services
without
involvement
of
intermediary
Cost Structure
Purchase hair treatment accessories
Salary structure for staffs: 1200
Promotional Activities
Revenue Structure
Sales
Advertisement
Key Partners
L’Oreal
Tony & Guy
Headturners
Business Model Canvas
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Peer Group Reflection:
After developing business plan, I shared ideas with a group who are having same tastes and
preferences towards a specific concept. They are free to provide feedbacks for my developed
plan. By considering their opinion, I can make some changes in my current business plan
Pre selected working party discussion group:
There is a pre selected working party discussion group with whom I have communicated and
discussed about my business idea for setting up a hair salon named “Gloss Salon”. This process
will be done through online. I have shared each information with them. After a critical evaluation
of my plan, they came up with some rectifications in this and praised me for some unique plans.
They first analyzed the utility of this business in the area, which I have selected to establish. I got
a good suggestion regarding setting up salon near to shopping mall and movie halls. People will
prefer to avail this service, while they will visit to such places. The most important feedback I
got regards to keep a good relationship with key partners as without them business has no base.
My business plan of hair salon was only for both genders.
However, this discussion group suggested me to provide this service to children also. Now a day,
parents are highly conscious for hair styling of their children. The party suggested me to promote
this service not only through social media, but also with coupons and gift cards for shopping and
movies. I got an overall idea for improvement in my business plan, accordingly I will utilise
these feedbacks ensuring a high growth in this business.
Self selected discussion group:
In order to get some more reviews in my plan, I took help of another group of my choice. I have
selected members of this group based upon their experiences and creativity. This group took a
few days to analyze my business plan, discussed each outcomes of this idea and shared me with
proper clarifications. This group was highly satisfied with the idea of starting a business on hair
salon. This business has a quite goof scope in future and there is an opportunity for working with
film and TV industry.
This group suggested me to reduce the cost of budget for initial phase of business. Sometimes,
customers have a perception not visiting new salon, as they are adapted with old ones. Price is an
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important factor to drag their attention. The group recommended me to develop an online
platform, through which customers can book an appointment before a visit. Therefore, the salon
can give them appropriate service in the scheduled time. They also suggested me to use
newsletter and magazines for promoting services. However, the group appreciated my plan and
motivated me to go ahead with this plan. They also told me to reach out them in case of future
business requirement.
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Customer
Segments
Ladies
Gents
Children
Value
Proposition
Different pricing
strategies for
different classes
of people
Key
Activities
Hair cut, hair
spa, hair
colour hair
styling, and
smoothening
Key
Resources
Human
Resources
Financial
Resources
Hair treatment
equipments
and electricity
Customer
Relationship
Coupons, free
treatment
guide and gift
cards
Hair treatment
packages in
one price
bundle
Channels
Direct
marketing
without
involvement
of
intermediary
Cost Structure
Purchase hair treatment accessories
Salary structure for staffs: would be reduced to 1,000 as is
suggested by peers
Promotional Activities
Revenue Structure
Sales
Advertisement
Key Partners
L’Oreal
Tony & Guy
Jordanne Hair
Concept Improvement Reiteration
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The major changes incorporated after the peer reviews are in three sections, that are in customers
segment, cost structure and in marketing. Now I would also consider the segment of children.
The cost for human resources would be reduced to 1,000. Print media would be considered for
marketing.
Conclusion:
In the context of the study conducted it can be concluded that, the newly established hair salon,
can fetch huge revenues and make a mark in the global economy only if it can maintain the
quality of the services it provides at affordable prices. The marketing strategies must improve so
that the organization can target consumers with varied tastes all over the globe. The company has
to think of giving offers such as ‘hair shampoo free with a hair spa’ on a regular basis, which
would widen its customer spectrum. As per the views of the peers, the organization must focus
on providing hair services to children and advertise using social media to reach enhance the
popularity of its brand among the youth.
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Bibliography
Yeh, F.T., 2017. A Study of Innovative Business Model for the Hair Salon Industry: A Case of
Company A.
Onsongo, S. and Muturi, W., 2015. Factors Influencing the Growth of Hair Salon Enterprises in
Kenya: A Surveyof Hair Salon Enterprises in Kisii Town. IOSR Journal of Business and
Management, 17(3), pp.1-15.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Perry, A.S., Rahim, E. and Davis, B., 2018, March. Startup Success Trends in Small Business
beyond Five-Years: A Qualitative Research Study. In 6th International Conference on
Innovation and Entrepreneurship: ICIE 2018 (p. 341). Academic Conferences and publishing
limited.
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