Beauty Nails: Detailed Business Plan for a Beauty Salon in London

This document presents a comprehensive business plan for 'Beauty Nails,' a proposed beauty salon located in Chelsea, London. The plan details the business overview, including services like hair, skin, nail care, and massage, targeting women aged 15-50 in London. It outlines the management structure, emphasizing communication, time management, and specific roles like receptionists and stylists, along with a job advertisement. The market analysis includes a target market profile, competitive advantages (experienced staff), and a SWOT analysis. The marketing strategy covers market research, competitor analysis, a marketing mix (product, place, price, promotion), and social media launch plans. Operations and logistics address premises, equipment, transport, legal and insurance requirements, and fixed monthly costs. The plan also includes a cost and pricing strategy. The business aims to provide innovative services with experienced staff, offering services at the salon and clients' locations, leveraging digital and social media marketing to attract customers.

Beauty Nails
Insert graphic or logo
Insert ID number
Table of Contents:
Sec one
Business overview
Sec two
management structure
Sec three

customer profile
Sec four
marketing
Sec five
operations and logistics
Sec six
costs strategy
Sec seven
cash flow forecasts
Section One
Scenario: A: B: C:
Business Overview
1.1 Business summary: Please write business outline. (who, what, where, When and how)
Business idea is opening beauty salon with the name of 'Beauty nails' which is located in Chelsea, London. The beauty
treatment in which company will specialize are hair care, skin care, massage, nail care etc. they provide services to the customers at
their salon and also provide services at clients place. This business idea is chosen because beauty salon is more in demand and to
look good many people are visiting salon every month. This business will provide every necessary services which a beauty salon can
provide. This salon is also situated at the prime location of London so that they can get more footfall.

1.2 Describe your core product or service:
Main services which is provided by salon is related with skin care, massage, services related to nails or hair care services. They will
provide all services which will make their customer feel relax and also help them look healthy and good. Business will provide various
nail care services like manicure, nail art, dip powder nails etc. as the craze of getting good nail care is increasing. So that is why
opening this business will have great potential and also help business in making good profits (Docwra, 2018).
1.3 Your immediate and future business aims:
The aim of business is to provide good salon services to their clients and can make profits with good sales. As it is beauty salon so
they want to provide such services which in better and new. As services will remain same only but it will be delivered to the customers
differently. In order to make customers feel comfortable they are also providing services to their customers by visiting their place.
Future aim of business is to provide such innovative services which other salon is not providing. As in order to run business for long
time they should have launched new services.
1.4 Please state the amount of seed capital required and partner investment : (Up to a maximum of
£40,000)
The capital which is required in this start up business is £40,000. If the new business is starting then there are various expenses like
documentation expenses which be related to legal documents etc. to open salon they also required property on rent where they will
open salon (Clements, 2017). Expense will also occur while promoting the salon. Promotion is important activity because it will bring

sales to the company. Salon also have to bring machines in order to provide beauty services to their customers. Along with that they
have hire such staff who can provide beauty services to their clients.
Section Two
Management structure.
2.1 Professional team skills:
Skills which are required in team of beauty salon are:
Communication and listening skills: the client is the most important person because they will give sales to the business. So
workforce should listen what they are saying because when professional listens to them carefully then only they will know about client
preference (Ali, Katty and Idrus, 2020).
Time management skills: as the schedule of salon is often hectic if the footfall is more especially during wedding season. So
professionals should write down all appointments and should given different time to every client. If professional will not organise work
properly then how they will give good services to customers.

2.2 Each team member’s roles and responsibilities:
Receptionist: the responsibility of receptionist is to take appointments and maintain register so that it can be recoded properly. They
also act like customer service provider. As they give answer to every customer query whether on call or face to face.
Makeup artist: the role of makeup artist is to provide makeup related services to the clients. They should have skills to do makeup
as per client's requirements.
Hair dresser: the responsibilities of hairdresser is to provide hair cut, hair spa etc to the client. They should have skills which a
hairdresser requires so that client will get better services.
2.3. Identify your company’s skill gaps, then chose one role and create an advert with the skills
required and their roles and responsibilities.
Advertisement for Salon stylist:
We have vacancy for Salon stylists. An individual must be graduate and person who will have beauty course related degree
will be preferable. There responsibilities will be providing various services related to hair and skin care. Candidate have to handle all
daily appointments. The should have good communication skills in order to retain customers and should also have marketing skills so
that can sale beauty products which will be kept at salon (Ylimartimo and Lehtinen, 2019). They will give various duties like pedicure,
manicure, facial, massage, make up etc.
Feel free to come at salon for interview.
Section Three
The market/customer profile.

3.1 Describe your target market profile and where are your proposed customers based:
For this salon business target market of company will be female who fall in age group between 15-50. As this age group female needs
beauty care services. It is observed that mainly this age group female comes in salon for hair care, skin care, massage or for various
other services. Mainly those customer will get targeted who are residing in London city. This is also the main reason that salon is
existing at main street of London so that client can get easy transportation. They will also target women who are getting married, so
that can give business to the salon.
3.2 Describe your perceived competitive advantage/USP:
Unique selling price of beauty nails is they have experienced, skilled and knowledgeable staff. This will help salon in getting
competitive advantages. They hire such candidate who have basic knowledge of salon as complete fresher is not hired by them. They
also provide training related to beauty care to their staff so that they learn more skills and provide customers their best services.
Apart from professional work workers are also taught regarding how to deal with customers (Vlados, 2019). As salon is providing
services to the customers and not products so that is why good customer service is more important here. Salon is making experienced
staff their UDP in order to attract more customers. As every salon is giving almost same services so where beauty nails will get
competitive advantage. So by providing services differently with the help of their knowledgeable staff they will able to increase their
customers.

Section Four
Marketing
4.1 Explain your market research with references, Using primary and secondary research.
Provide a questionnaire with 5 suitable questions and state the objective of said questions.
• how frequently you visit beauty nails salon?
1 time in a month
2 times in a month
once in 6 months
other
• what are your reasons of choosing this salon?
Attractive offers
word of mouth
social media promotion
none
• one what social media platforms are you active on?
Facebook
twitter
Instagram

What app
all
• how do you rate our staff?
1
2
3
4
5
• How would you rate prices of beauty nails?
Affordable
expensive
The objective behind asking these questions is to know what customers are feeling and with what they
are not satisfied with so that can improve customer services. By gaining more customer information will help
salon to target them properly.

4.2 Competitor analysis
(Based on your market research, analyse two key competitors and explain how your business will

compete with them) (You may consider a SWOT here)
SWOT analysis:
strength:
The biggest strength is that salon is situated at main street of London where an individual can find out easy
transportation facilities. They also have talented and experienced staff which can provide better services to the
clients.
Weaknesses:
they does not have expert for all salon services. They only have one staff who can provide massage services.
Opportunities:
they can book or target such client who are getting married so that can get many clients in one shot.
Threats:
Competitors are the biggest threat (Vlados, 2019). As it is observed that there are massive competition in this
industry and almost all salon is providing same services.
The London salon and Taylor Taylor salon are the biggest competition for beauty nails because these
are established salon and have more customer base. This salon will compete with their rival salon by providing
innovative services to the customers and also providing good customer services.
4.3 Marketing strategy
(In support of your business social media campaign, describe your marketing and branding
strategy, with reference to researched materials. Identify the most appropriate strategies, (You
may consider a 4 or 7ps etc. )
Marketing mix:
product:
beauty salon provides beauty related services to their customers like hair care, nail designing, skin care etc.
they also sell beauty related products at salon.
place:
beauty nails will provide services at their salon which is present at London and they will also provide services to
customer at their place.
Price:
salon will follow low pricing strategy because beauty nails is new salon and to attract customers they have to

provide services at low prices.
Promotion:
Salon will promote their services by using modern promotional techniques which is digital marketing and social
media marketing. These online marketing options are choosing by lot of companies these days because
advertising on them is cost effective and also takes less time. Beauty salon very well know that with the help of
various social media platforms they can target wide audience easily. As users of social media is increasing
everyday. They will take help from Facebook advertisement for advertising their products. As with the help of
various Facebook tools salon can target only those customers which has fall in their targeted customers
category.
4.3b. How and where will you launch your product or service.
On social media platform only salon will launch their business. As salon can target many clients through social media and aware them
regarding opening of new salon. They can also trend hashtags on social media because hashtag is helpful in attracting more customers. They
can even give mobile advertisement regarding opening of new salon (Niranjanamurthy, Nithya and Jagannatha, 2019). They can also send
promotional emails to local people. Word of mouth is also another way through which information can be spread.

Section Five
Operations and logistics
5.1 Premises and location.:
5.2 Equipment & Set up Costs and suppliers:
Product Supplier Cost.
Advance Rent/deposit 15000 15000
Purchase of raw
material
- 10000
Rent
- 5000
Transportation
charges
- 15000
Total cost 45000
5.3 Transport needs:
There is a need of transportation as the company need to sell the goods through supply network apart from this
company is selling goods from online website as well for that Reason Company need transport (Verhaeghe, 2021).
5.4 Legal requirements:
Partnership Agreement etc.
Partnership Agreement etc.

Partnership agreement refers to the contract which takes place between two individual and their main objective is to earn profit.
Partnership agreement state that how much profit and loss will be shared by each and every partner (Mishra, 2017).
5.5 Insurance requirements:
Business Insurance etc.Business Insurance etc. Business insurance is being required to protect the goods and services of the
business.
5.6 Other required Certifications:
5.7 Fixed monthly Costs as per cash flow:
Items Costs
Inventories 50000
Rent 10000
Phone 5000
Insurance 15000
Advertisement 10000
Others 5000
Total 95000
Section Six
Costs and pricing strategy
Product/service name ( Select a single unit) Product

Cost to your business per unit 12
Price you charge per unit 15
Profit margin (£) 3
Profit margin (%)
(Profit / Price x 100 = Profit margin)
20
Mark up (%)
(Profit / Cost x 100 = Mark Up)
25
6.b Your Pricing Strategy:
The pricing strategy is competitive pricing because company wants to grab the market share and
wants to build a loyal consumer base.
Section Seven
Cash Flow forecast
Jan Feb March April May June July August Sept
Sales 1: 2,00,000 2,00,000 3,00,000 3,50,00
0
4,00,00
0
4,50,000 5,00,000 5,50,000 3,00,000
Loan 50,000 90,000 20,000 50,000 40,000 20,000 10,0000 50000 20,000
Investment. 20,000 40,000 50,000 60,000 40,000 50,000 20,000 30,000 50,000
Total Sales: 30,000 70,000 2,30,000 24,0,00
0
3,20,00
0
3,80,000
0
4,70,000 4,70,000 2,30,000

SET UP COSTS TOTAL
Direct Costs:
Materials. 5000 6000 5000 4000 3000 2000 2500 1500 1000
Stock. 3000 4000 2000 2000 3000 2500 1500 1000 2000
Additional Staffing 1000 1500 2000 1500 2000 2500 1000 1500 2000
TOTAL Direct Costs: 9000 11500 9000 7500 8000 7000 5000 4000 5000
Fixed Costs:
Salaries 1 2500 2500 2500 2500 2500 2500 2500 2500 2500
Rent. 1500 1500 1500 1500 1500 1500 1500 1500 1500
Rates 1000 1000 1000 1000 1000 1000 1000 1000 1000
Staff Wages. 2000 2000 2000 2000 2000 2000 2000 2000 2000
Utilities/Gas/Elec 1200 1200 1200 1200 1200 1200 1200 1200 1200
Phones. 1500 1500 1500 1500 1500 1500 1500 1500 1500
Freight & Postage 1800 1800 1800 1800 1800 1800 1800 1800 1800
Stationary. 1500 1500 1500 1500 1500 1500 1500 1500 1500
Promotion & Ad. 5000 5000 5000 5000 5000 5000 5000 5000 5000
Website. 3000 3000 3000 3000 3000 3000 3000 3000 3000
Accountant 1500 1500 1500 1500 1500 1500 1500 1500 1500
Legal 4000 4000 4000 4000 4000 4000 4000 4000 4000
Transport 5000 5000 5000 5000 5000 5000 5000 5000 5000
Vehicles 7000 7000 7000 7000 7000 7000 7000 7000 7000
Insurance 3000 3000 3000 3000 3000 3000 3000 3000 3000
Maintenance 8000 8000 8000 8000 8000 8000 8000 8000 8000
Computers. 6000 6000 6000 6000 6000 6000 6000 6000 6000
Misc. 1000 1000 1000 1000 1000 1000 1000 1000 1000
Loan repayment. 50000 90000 20000 50000 40,000 20,000 10,0000 50000 20,000
Interest on loan. 750 1350 300 750 600 300 150 750 300
TOTAL: 107250 147850 76800 99750 97100 76800 66650 107250 76800
Sub Total: Fix + Direct Costs. 116250 159350 85800 107250 105100 83800 71650 147250 81800
Net Profit: Sales – Sub total 83750 40650 214200 242750 294900 366200 428350 402750 218200

7.1: Three-year projections, annual proposed sales and Net profit only
In the 3 years company is generating g profit.
7.2 Notes and assumptions to cash flow and projections:
Interest rate has been assumed to 1.5%
Conclusion:
Through this report it can be concluded that beauty nails salon will going to open in London. Communication skills are the most
important skill which is required in salon workers. Capital will be raised from government loan. Female will be the target market for
salon. They will opt for social media marketing in order to promote their services. Report has also discussed various costs and cash
flow forecasts.
References/Bibliography
Ali, W.N.A.W., Katty, K. and Idrus, S.Z.S., 2020, April. Promoting Salon Service Business through Interactive Video. In Journal of Physics:
Conference Series (Vol. 1529. No. 3. p. 032070). IOP Publishing.
Clements, P., 2017. From salon to stage: The art of collaboration. Professional Beauty, (Nov/Dec 2017), p.62.
Docwra, J., 2018. The rise of the luxury salon. Professional Beauty, (JulAug 2018), p.94.
Mishra, N., 2017. The role of the Trans-Pacific Partnership Agreement in the internet ecosystem: uneasy liaison or synergistic
alliance?. Journal of International Economic Law, 20(1), pp.31-60.
Niranjanamurthy, M., Nithya, B.N. and Jagannatha, S., 2019. Analysis of Blockchain technology: pros, cons and SWOT. Cluster
Computing. 22(6). pp.14743-14757.
Urbaníková, G., 2019. Design of Marketing Communication for Beauty Salon.
Verhaeghe, E., 2021. The (post) politicisation of timber trade:(Un) invited participation in the EU-Vietnam Voluntary Partnership
Agreement. Forest Policy and Economics, 129, p.102487.

Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management.
Ylimartimo, I. and Lehtinen, J., 2019. Marketing plan for a hair salon.