LCBB5001: Business Plan for a Health and Beauty Salon in London

This report outlines a business plan for a health and beauty salon, focusing on effective decision-making processes and a comprehensive business strategy. It details the decision-making framework, assigning roles for financial, operational, human resources, marketing, and administrative decisions. The plan includes market and industry analysis, revealing growth opportunities and competitive pressures in the UK beauty sector. A digital marketing strategy utilizing social media platforms is proposed, alongside an operational plan outlining appointment scheduling, technology use, and cleaning protocols. The report also presents a financial plan with budget projections for the first three years, covering website development, marketing, and other operational costs. The overall goal is to establish a unique salon concept offering both health and beauty services, catering to health-conscious individuals with natural and herbal beauty products.

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Table of Contents
Effective decision............................................................................................................................3
Written Business plan......................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Appendix..........................................................................................................................................7
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Effective decision
It is necessary to make effective decisions in a business to that goals and objectives are
attained. The decisions enable in deciding what has to be done in future, how activities are to be
performed, etc. similarly, in our group the decision will be taken mutually (Azoulay, Jones, and
Miranda, 2020). For that a meeting will be called and each one views is considered. Then, by
analysing all things we will take a decision. Along with, it each member will be assigned their
own role and division. Thus, they will take decision of particular unit. Here, Mark will take
decision regarding finance, Smith will take decision of operation, George will take decisions
related to human resource, Thomas will take decision of marketing activities and Shawn will
take decision of administration. So, basically generic decision like assigning roles, daily
activities, etc. will be taken at individual level whereas overall business in a meeting.
However, it is necessary to follow a specific process of decision making so that right
decisions are taken. Thus, in our business process will be as :
Identify decision- here, it will be identified that what decision has to be taken. It means that
tactic, operational or strategical.
Gather info- it is second step in which info will be gathered regarding the type of decision to be
taken. It is necessary to collect relevant info in order to take decision.
Identify alternative- this is stage where alternative will be analysed. In this it will be find out
whether what changes can be made or additional info required. Besides all possible angles are
analysed in it. (Blaug, and Towse, 2020)
Weighting- in this weighting is given to each alternative that how close it is to achieve goal. So,
more weight of alternative then it is selected.
Choosing alternative- by reviewing of weight given to alternative then the highest is selected.
Also, combination of decision is also taken in it.
Taking decision- it is important stage where decision is taken. The decision taken should be
effective and match with goals and objectives.
Review of decision- here, the consequences related to decision taken are reviews and evaluated.
Then, accordingly measures and actions are taken for it.
Thus, the group will follow this process to make decision. In that all types of decision
will be taken that is tactical, operational and strategic. Moreover, in order to make decision,
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various information will be required. The info will be market data such as profit, competitor
services, customer base, etc. to make strategic decision. For tactical one, cost per customer,
return on investment, info is required. However, for operational daily expenses, per visit
customer, information is necessary. Apart from it, various other info is needed seasonal sales,
number of competitor, other beauty salon in area, and many more. It is stated that the generic
decision will be include daily operational tasks, change in marketing technique, hiring of hair
stylist, etc. also, it has been identified that there be certain exceptional decision as well which
needs to be taken (Florida, Adler, and Mellander, 2020). That is dealing with quality issue in
offering services, handling of customer complaints and delay in offering services to customers.
In all of these various factors are to considered. Therefore, in order to take these exceptional
decision a procedure will be formed which will be followed. It will enable in taking effective
decisions and resolving all issues that is occurring in company. furthermore, if decision taken are
not effective than it directly impact on business operation and goals are not attained.
Key partners
Yoga
specialist
Fitness expert
Grooming
experts
Celebrities
Key activities
Hair cut
Make up
Facial and
grooming
services
Yoga and
exercise
Fitness tips
Value propositions
It will give yoga
and exercise
sessions as well
Also, fitness tips
will be given to
customers.
Customer
relationship
Repeat business
Presence on social
media
Ease in user
interface mobile
app
Discounts and
rewards
Membership
Customer segment
Fitness freak
Business class
Working
professionals
Men and women
Key resources
Interior design
Channels
Website
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Outer space
Fun music
Mobile app
Social media
Cost structure
Salary and wages to barber
Rental space
Operational cost
Marketing cost
Revenue stream
Direct sale
Home delivery services
Written Business plan
Executive summary
In this plan it has been described about the health and beauty salon. Also, it is discussed
on industry and market analysis of salon industry in UK. In that it is analysed about market
opportunity, growth and current market of industry. In addition to it, marketing plan of business
has been described along with operational plan. Here, how marketing is done and entire
operational process is shown. Moreover, in order to attract investor and bank financial
projections of business of specific time period has been mentioned. It is defined about how much
cost and profits are generated through it.
Overview
A new business idea has been developed by our team in which we are working on
concept of opening a health and beauty salon. It wbe a completely new concept where both
health and beauty service will be provided. In this the focus will be on fitness as well as
grooming of a person. Besides that, the services provided will be to both men and women.
Alongside, the services offered will be haircut, facial, body massage, meditation, yoga, etc.
Moreover, all materials used in beauty will be natural and made of herbs and flowers. Thus, there
will be no chemical based material used in it (Hampel, Perkmann, and Phillips, 2020). This will
help in providing a unique beauty services to people. Here, main focus will be on those people
who are health conscious.
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At initial level only one store will be opened in outskirts of London where there is greenery and
open space. Then, with rise on growth more stores will be opened in other areas of city. In this, a
new concept is added that is customer booking will be done via mobile app. This means that
customer can book what type of services they want and at what time they are willing to come.
So, by matching the time with other customers they will be sent a confirmation message about
time. In this way it will be easy to provide timely services to customers. In App the price of
services will be included as well. In order to promote business for 1 month combo service will be
offered at low price. In addition, at starting 10 staff will be hired, 5 barber and 5 fitness
specialist.
Industry and market
It is important to do market research so that opportunities are identified and area of growth as
well. Also, it helps in finding out the market gap so that it can be overcome and people needs are
identified. Furthermore, doing this help in analysis industry and gathering some data and info.
So, in order to collect data secondary and primary research was done (Hong, 2020).
It was analysed that in 2018, 495 beauty salon opened in UK. This was rise of 40% since
previous year. Besides that, ther revenue generated in industry in 2019.
Over the 5 years 2019-20, industry revenue is expected to grow at a compound annual
rate of 1.5%, reaching £4.1 billion. However, consumers are becoming more informed and
willing to compare prices online, which has created pressure for operators to set lower prices,
negatively affecting profit.
UK beauty industry has generated $31.7 billion in 2018 by selling its products and
services. It has contributed in 1.3% in UK GDP. They have employed 590,000 people in UK.
150,000 are employed directly in this sector. It has generated $8.5 billion in each year.
Apart from it, primary research was done to collect data and info about market and
industry. For that questionnaire was used to gather data. However, beauty salon industry is
rapidly growing in UK.
Marketing plan
It is necessary to do effective marketing of business so that people can be attracted. Also,
for that it is important to generate awareness in the market about new services been offered by
business. Furthermore, there should be a proper marketing plan so that it gives clear insight on
what activities are to be done and what tools has to be used. Marketing is process of promoting
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and advertising products and services to target audience. Thus, for present business idea, digital
marketing will be used. In that, promotion will be done through use of internet and other social
media platforms (Jones, and Sakong, 2020). Digital marketing will be used because in recent
times it most new business ideas are effectively promoted through it. Along with it, use of social
media sites in advertising will help in attracting large number of people. Moreover, large area
can be covered through it. In this, sites such as Facebook, Instagram, Twitter, etc will be used
and on that official page will be created where details of all services will be provided. It will help
in promoting. Furthermore, print media will be used as well for it. The ads will be published in
newspaper, magazine, etc Also, on YouTube marketing will be done.
Operational plan
Every business is having a different concept of operation on basis of which they work.
The operational activities depends on nature and type of business. Also, it varies upon size as
well. The operational plan is a framework on how business activities will be performed. Hence,
for health and beauty salon the plan is as follows:
Process - All appointments will be organized by that each employee are to buy for themselves.
Appointments will also be entered into the salon's schedule that will be made using Excel. When
a hair appointment is made, the employee will notify the receptionist on duty and they will enter
the information into the schedule. Each client is to organize and manage their hair appointments
with their personal planner, and also check in with the receptionist concerning clientele
information and appointments. Staff will be notified 48 hours and 24 hours in advance about
their scheduled appointments by the receptionist (Kolb, 2020).
Technology
the salon will be using, cash register and transaction software by Vision from ICS. In order to
keep up with current levels of inventory. the Inventory Software will be purchased and used.
Managers and receptionists will be trained thoroughly on how to use the equipment.
Cleaning- Employees are required to throw away their trash and thoroughly clean their area at
the end of the night and during the day as needed. The receptionist on duty is responsible for
cleaning, organizing and keeping the front desk area, and salon floor free of dirt and trash.
Finance
In order to start a business, it requires a huge capital and finance. It helps in conducting of
business operations. With the help of funds, resources are purchased such as land, labor,
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machine, etc for that it is essential to estimate the budget requirement of business. This is
because it helps in analysis resources required and its distribution. Moreover, income and
expenses are identified from financial plan (Shankar, Elam, and Glinski, 2020). Likewise, for
present business idea the capital required is defined below :
Budget plan for
marketing mix
strategic
planning
2020 2021 2022
Product
diversification
$ 120 $ 100 $ 80
Maintaining
variety of
products
$ 80 $ 60 $ 50
Warehouse
management
$ 80 $ 90 $ 100
Website creation $ 100 $ 150 $ 160
Development of
mobile
application
$ 200 $ 150 $ 100
Designing the
email
$ 100 $ 125 $ 150
Creation of
YouTube videos
$ 45 $ 60 $ 90
Blog and
Twitter creation
$ 50 $ 60 $ 80
Social
campaigning
$ 55 $ 70 $ 86
Introducing
electric cars for
distributing the
products
$ 100 $ 120 $ 140
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Managing
people
$ 80 $ 100 $ 120
Total business
budget
$ 930 $ 1085 $ 1156
CONCLUSION
It is summarized that a business idea of opening health and beauty salon is proposed in
which various services will be offered to customers. Also, a mobile app will be used to save time
of people. The target people are men and women. Moreover, marketing will be done by using
social media sites like Facebook Twitter etc. the operational plan will all appointments will be
organized by that each employee are to buy for themselves. Appointments will also be entered
into the salon's schedule that will be made using Excel.
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REFERENCES
Books and journals
Azoulay, P., Jones, B.F. and Miranda, J., 2020. Age and high-growth entrepreneurship.
American Economic Review: Insights, 2(1), pp.65-82.
Blaug, M. and Towse, R., 2020. Cultural entrepreneurship. In Handbook of Cultural Economics,
Third Edition. Edward Elgar Publishing.
Florida, R., Adler, P. and Mellander, C., 2020. The city as startup machine: the urban
underpinnings of modern entrepreneurship. In Urban Studies and Entrepreneurship (pp.
19-30). Springer, Cham.
Hampel, C., Perkmann, M. and Phillips, N., 2020. Beyond the lean start-up: experimentation in
corporate entrepreneurship and innovation. Innovation, 22(1), pp.1-11.
Hong, J., 2020. The financing of alliance entrepreneurship. Journal of Business Venturing, 35(1).
Jones, L.P. and Sakong, I., 2020. Government, business, and entrepreneurship in economic
development: The Korean case. Brill.
Kolb, B., 2020. Entrepreneurship for the creative and cultural industries. Routledge.
Shankar, A., B Elam, A. and Glinski, A., 2020. Strengthening the Women’s Entrepreneurship
Ecosystem within the Energy Sector.
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Appendix
Q-1 Do you think that health is also important as grooming?
Yes
No
Q-2 Does your time is wasted when you visit a salon and no staff is free?
Yes
No
Q-3 Are you able to get timely services at salon?
Yes
No
Q-4 Will you require some new type of services at salon?
Yes
No
Q-5 Do you like to have an hair cut in open space?
Yes
No
Q-6 Do you think that natural products are better than chemical products?
Yes
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No
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