New Look Salon Business Plan

This report presents a comprehensive business plan for New Look Salon, a beauty salon aiming to expand its operations across the UK. The plan includes an executive summary outlining the salon's services (haircut, hair spa, manicure, pedicure, etc.), its current operation in Westfield London, and its funding goals from institutions like Lloyds and Barclays Bank. A detailed table of contents organizes the report into sections covering business overview (product/service description, company details, mission statement, ethics), market strategy (SWOT and PESTEL analyses, marketing mix), and financial analysis and projections (cash flow projections, loan requirement calculations). The business overview section describes the salon's services, operational capabilities (online booking system, use of innovative technology), mission and vision, and ethical considerations (CSR). The market strategy section analyzes the competitive landscape, identifies opportunities for expansion, and details the marketing mix. The financial analysis section provides detailed profit and loss statements, cash flow forecasts, and loan requirement calculations, including assumptions about sales growth, expenses, and loan repayment. The report concludes with a list of references.

Business Plan

Executive Summary
It can be evaluated from the study New Look Salon provide wide range of products or
services to its customers such as hair cut, hair spa, manicure, pedicure, body massage, body spa,
nail art, bride and groom package etc. Also, business provides attractive schemes and packages
for bride and groom so that it attracts more number of customers towards firm. Currently
business is operating in Westfield London and in regard to expand the business operation all
across UK, firm aims to obtain funds from different financial institutions such as Lloyds and
Barclays bank.

Table of Contents
BUSINESS OVERVIEW................................................................................................................1
Product/Service description....................................................................................................1
Company details/ operational capabilities..............................................................................1
Mission statement/ vision.......................................................................................................2
Ethics......................................................................................................................................2
MARKET STRATEGY...................................................................................................................3
SWOT.....................................................................................................................................3
PESTEL..................................................................................................................................4
Marketing Mix........................................................................................................................5
FINANCIAL ANALYSIS AND PROJECTIONS..........................................................................5
Cash Flow Projections............................................................................................................5
Loan Requirement Calculations.............................................................................................8
REFERENCES................................................................................................................................9

BUSINESS OVERVIEW
Product/Service description
Business plan is considered as the crucial concept that prepares idea for starting the
business through identifying the needs of customers and fulfil them. Here, present business idea
is based upon starting salon services for both men and women offering varied beauty treatment
to customers. The proposed business plan of salon services will provide wide range of products
of services through which they could plan effective service package for customers and satisfy
their needs (Barringer, 2012). Main purpose behind preparing this business plan is to raise funds
from different sources and attract investors as well for providing funds. Owner wish to raise
funds from different financial institutions such as Lloyds Bank and Barclays Bank so that they
could start their beauty services in UK market.
Company details/ operational capabilities
Here, the new proposed business named is New Look which is a beauty salon providing
services to both men and women. Company is operating in UK and thus providing different
products or services such as hair cut, hair spa, manicure, pedicure, body massage, body spa, nail
art, bride and groom package etc. Apart from this, there are various other services as well which
are being provided by New Look salon to its customers in UK. As per the current demand, New
Look is also providing tattoo services for its customers (Brinckmann, Grichnik and Kapsa,
2010). UK population is very busy and thus they do not have time to spend on beauty treatment.
Therefore, due to such problems, New Look salon is providing services to customers as per their
suitability and convenience. There is an option for online booking system in which customer can
register and choose their preferred date, day and time to avail the services and do not waste their
time waiting for their services. New Look is being located in Westfield London where large
number of working professionals are present and thus they will prefer to consume the salon
services on weekly basis. Company also uses innovative technology machinery to provide better
look and beauty treatment to customers. Company registration is under corporation act and thus
obtain license for starting the business. There is team of professionals working in salon that
consists of hair stylist, make up professional and other skin specialist. They possess different
roles and responsibilities in regard to provide appropriate beauty care treatment to working men
and women so that goals could be attained.
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Mission statement/ vision
Mission of New Look beauty salon is to provide variety of services to target customers
both men and women. It is because generally people face issue related to time due to their busy
schedules and thus they are not able to spend time on salon services. Therefore, New Look is
providing innovative technique for its consumers such as online booking system through which
customer can register through the application and thus select their preferred day, date and time.
New Look mission is to provide quality beauty care services for its target market in UK and
satisfy their needs (Finch, 2010). Both short and long term goals of New Look beauty salon is
that they are focused upon providing quality services to customers and attain satisfaction. Main
aim of proposed business is to render quality beauty services to working professionals in UK.
Following are the different objectives of New Look such as-
 To attain competitive edge in market through overcoming rivals.
 To achieve leading position of firm by offering wide variety of beauty products or
services.
 To raise customer base by 20% till 2018.
 To enhance sales and profitability by 15% till 2018.
Ethics
It is essential for New Look company to carry out effective CSR activities and Ethical
responsibilities so that it does not affect the environment in any form. Following are the different
4 P's of CSR which are described below- Purpose- Here, the business aim is to provide quality beauty care services to customers
so that their needs could be fulfilled. Also, it helps in satisfying the needs of UK market
by providing various beauty services and thus achieve desired targets (Jasra and et. al.,
2011). People- New Look involves different stakeholders such as employees, customers and
shareholders. They possess different roles and responsibilities so that business could
provide them appropriate option to attain desired success. New Look appoints skilled
staff who are professionals and thus satisfy the needs of clients. Planet- Further, it is another crucial element of CSR as it is essential for New Look
management to carry out sustainable environment, heritage and society in regard to
protect the environment and do not affect the same. However, it is essential for firm to
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overcome the environment problems and thus protect them so that it does not impact
upon the society (Kwong, Thompson and Cheung, 2012).
 Probity- It is another component of CSR and thus assesses that management needs to be
developers integrity, honesty and compassion so that desired outcomes could be attained.
MARKET STRATEGY
SWOT
Following is the SWOT analysis of New Look is described underneath-
Strengths
 Provides wide range of services related
to beauty care.
 Hires skilled professionals such as hair
stylist, skin specialist, tattoo artist.
 Selected location where high number of
working professionals are present
(Neck and Greene, 2011).
 Provide online booking through
application and thus customer could
choose their preferred day, date and
time for obtaining beauty care services.
Weaknesses
 There is tough competition in market.
 At initial stage, there are low customer
base.
 Requires skilled professionals to satisfy
the needs of customers.
 Requires large amount of investment
for launching the salon services
(Osterwalder and Pigneur, 2010).
Opportunities
 New Look focuses upon expanding the
business across UK market.
 Company need to hire skilled team of
professionals for rendering quality
treatment of skin as well as beauty
services to customers (Trompenaars
and Hampden-Turner, 2011).
 Providing online registration so that
time could be saved of customers.
 New Look could also expand its
Threats
 Company faces threats from other
significant rivals operating within
similar industry.
 External factors influences upon
operations of New Look (Barringer,
2012).
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business through selling different
brands beauty products from the salon.
PESTEL
Following are the macro environment factors that impacts upon business functions such
as-  Political- It can be assessed that the political situation of UK is stable and thus it does not
have any impact upon the performance of New Look salon. Therefore, it is essential for
company to undertake all the policies and practices that results in carrying out the
business functions in an effective way (Brinckmann, Grichnik and Kapsa, 2010). Economic- However, the economic situation might get impacted because of latest effect
with Brexit and thus it minimizes the value of currency that impacts the purchasing
power of customers. Thus, it results in reducing the purchasing power of customers and
therefore, impacts upon the buying behaviour of consumers. Social- Also, the change in taste and preferences of consumers impacts upon the business
such as currently due to busy schedules, people do not have much time to go to beauty
salon and wait for their chance (Finch, 2010). Thus, New Look salon identifies it and thus
provide online booking system for its customers from which they can choose their
preferred day, date and time and avail the services. Technological- It identifies that bringing change in technology results in influencing
more number of customers towards firm. However, introducing innovative equipment for
hair colour, styling and make up would attract more number of customers towards firm. Environmental- Business need to carry out effective CSR activities so that they do not
impact upon the environment and practice sustainability within firm. Also, they need to
promote eco friendly environment and use natural products and services to attain
customer satisfaction (Jasra and et. al., 2011).
 Legal- Also, changes in regulatory framework tends to bring potential changes in
business so that it helps in enhancing overall rate or return and also create competitive
edge in market.
Marketing Mix
Following is the marketing mix elements of New Look Fashion-
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 Product- New Look Salon undertakes various eco friendly products that helps in
protecting the skin of customers. Therefore, salon use such products that do not harm the
beauty of their clients (Kwong, Thompson and Cheung, 2012). Price- Due to high number of competitive rivals present, firm sets minimum prices for its
services in regard to influence large number of buyers towards firm. Thus, adopting
penetration pricing policy helps in influencing customers towards salon. Place- Business starts its operations in crowded area where large number of working
professionals are present so that it helps in attracting target customers towards firm.
 Promotion- Business uses social media platform such as Facebook, Twitter, Youtube etc.
to influence large number of customers towards firm (Neck and Greene, 2011).
FINANCIAL ANALYSIS AND PROJECTIONS
Cash Flow Projections
The projected cash flow has been prepared as follows. It consists all important
information related to New look such as sales turnover, direct expenses and indirect which do
affect the business performance to a great extent.
Table 1: Profit and loss
Year 1 Year 2
Revenue 334340 384491
Less: Cost of goods sold 73554.8 84588.02
Gross profit 260785 299903
Expenses
Marketing expenses 16717 19225
Administration expenses 26747 30759
Rent of the building 6000 6480
salary and wages 101470 111617
Depreciation on equipment 1500 1500
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Insurance cost 600 630
Other operating expenses 6687 7690
Interest 3000 2000
Sum of expenses 162721 179901
PBIT 98064 120002
Tax 19613 24000
Net profit 78451 96002
Table 2: Cash flow forecast
Particulars
Pre-
operating
year Year 1 Year 2
Cash inflow
Opening
balance 30000 193000 270006.16
Sales
revenue 334340 384491
Owners fund 50000
Personal
fund 150000
Cash inflow 230000 527340 654497.16
Cash
outflow
Licensing 25000
Research 12000
Marketing
expense 16717 19224.55
Administrati
on expenses 26747.2 30759.28
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Rent of the
building 6000 6480
salary and
wages 101470 111617
Salaries of
staff 25000 27500
Depreciation
on
equipment 1500 1500
Repayment
of loan 50000 50000
Interest 3000 2000
Insurance
cost 600 630
Other
operating
expenses 6686.8 7689.82
Tax 19612.84 24000.466
Total cash
outflow 37000 257333.84 281401.116
Cash deficit/
surplus 193000 270006.16 373096.044
Closing cash
balance 193000 270006.16 373096.044
Sales turnover calculation
The below mentioned table is showing the sales turnover per year. It is calculated on the
basis of average selling price and number of customers per day. In this manner sales revenue for
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the years has been calculated. Furthermore, the price will be set very nominal so as to attract
more customers and provide them right kind of products and services in the marketplace.
Average price
10 Hair cut 22 80300
10 Waxing 20 73000
10 Hair spa 25 91250
7 Menicure & Pedicure 18 45990
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Nail and Body &Skin
care 15 43800
Sales revenue for a
year 334340
Calculation of staff of personnel
The personnel hire in the corporation will be as follow and the salaries of them have also
been calculated in the below mentioned table.
Staff 2 40588
Marketing manager 1 20294
Finance manager 1 20294
Management 1 20294
Total 101470
Loan Requirement Calculations
The requirement related to loan for each workforce has been calculated as follows. This
proves to be effective to start up the business effectively. However, the start is done through
bank loan only and business targets to pay off loan in three financial years overall. It aids to
reduce the liability and improve corporate performance with the increased rate of return.
Loan requirement 150000 for three years and
interest rate 2%
Payment of loan
First year (interest) 3000 (150000*2%) Nothing
Second year 2000 (10000*2%) 50000
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Assumption related to the project or business plan have been mentioned as follows-
 The increment in sales turnover will be 15% per annum
 There will be increase in marketing cost by 15%
 8% hike will be here in administration and rent of the business
 Staff will be paid 10% higher each year
 Rate of wage is considered by taking into account 6.95 per hour
 Working hours will remain 8 hours
 5% depreciation
 2% of revenue is considered for the insurance payment
 The income tax rate will be 20%
 Rate of interest will be 2%
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