University Business Plan: Sustainable Beauty Salon Strategy Report

This report details a sustainable business plan for a beauty salon, covering various aspects of business development and strategy. The plan outlines the services offered, including waxing, threading, and bridal makeup, and proposes a business model based on a chain of salons with both package and individual service options. The report addresses pricing strategy, advocating for a skimming approach to attract customers initially, alongside a comprehensive marketing strategy emphasizing advertising and promotional activities to build brand recognition. An implementation timeline is provided, outlining the steps from financing to advertising campaigns. Furthermore, the report includes a financial management section with a cost-benefit analysis, indicating a feasible investment with a potential annual return and a payback period of 3.26 years. The report concludes with a list of references.

Running head: SUSTAINABLE BUSINESS PLANNING AND STRATEGY
Sustainable Business Planning and Strategy
Name of the Student:
Name of the University:
Author’s Note:

1SUSTAINABLE BUSINESS PLANNING AND STRATEGY
Table of Contents
Chapter 3: Implementation Strategy................................................................................................2
3.1 Product/Services....................................................................................................................2
3.2 Business and revenue model..................................................................................................2
3.3 Pricing strategy......................................................................................................................2
3.4 Marketing strategy.................................................................................................................3
3.5 Implementation timeline........................................................................................................3
Chapter 4: Financial Management...................................................................................................4
4.1 Cost benefit analysis..............................................................................................................4
References and bibliography:..........................................................................................................6

2SUSTAINABLE BUSINESS PLANNING AND STRATEGY
Chapter 3: Implementation Strategy
3.1 Product/Services
The proposed plan is for a service providing business and the main service of the
business is beauty salon service. The proposed beauty salon will be providing waxing, threading,
hair cutting, Pedicure, Facials and clean ups, manicures and bridal makeups. Services in this
business are not new in nature, rather the business will focus on providing quality services and
highest customer satisfaction (Morden 2016).
3.2 Business and revenue model
The proposed business will have beauty salon in key areas of the city. It will be working
as a beauty salon chain and will be working with its own business units. Services will be
provided on a package system as well as in individual services. In this type of business, selling of
various beauty products can also be added in the product and service line of the business. Hence,
the product line of the proposed business will include selling of various quality beauty products
also. The main revenue generating activities of the business is its various beauty salon services.
3.3 Pricing strategy
There are already various other brands and businesses in the salon and spa market.
Therefore, the ideal pricing strategy for the proposed business would be a skimming pricing
strategy. Initially, services will be provided with least margin of profit and at a lower price than
the existing competitors in the market. Various discount offers and packages can be offered to
attract customers. Later on, the price of the services could be increased with the establishment
and recognition of the brand identity (Horkoff et al. 2014).

3SUSTAINABLE BUSINESS PLANNING AND STRATEGY
3.4 Marketing strategy
The market is already crowded with various other brands and businesses. Therefore, the
proposed business should take such marketing strategies which will help them to create a brand
identity in the market and have a significant market share for a sustainable growth of the
business. Initially, various advertisement programmes and promotional activities have to be take,
such as social media advertising, advertising on television and newspaper advertising. Discount
options and free services could be one more important marketing tool to attract customers and to
gain initial brand recognition at the initial stage. An intensive marketing strategy along with a
competitive pricing strategy could help the business to make a better place in the market for them
(Morden 2016).
3.5 Implementation timeline
Implementation of plans and strategies is important for a new startups. After the complete
plan is made and a feasibility of the business is evaluated, it is required to finance the plan and to
setup beauty salons in key locations of the city. Advanced and improved equipment and facilities
needs to be arranged. Then, with an intense advertising campaign the business activities could be
started. Initially the business would be started with the penetration pricing strategy and gradually
with the increase in brand value and demand for the services, price of the services could be
charged higher with an aim of providing quality services. If there is demand as per the
expectation then the business will be achieving a sustainable and long term growth (Henderson
et al. 2015).

4SUSTAINABLE BUSINESS PLANNING AND STRATEGY
Chapter 4: Financial Management
4.1 Cost benefit analysis
Investment costs:
Cost of building 30,000$
Cost of equipment 12,000$
Working capital 5,000$
Initial investment 47,000$
Minimum expected return 6.00%
Operating costs:
Variable costs per customer 10$
Annual fixed costs 8,000$
Demand and revenues:
Expected demand in first year 500
Expected growth in demand 10%
Average revenue per customer 50$
Year 0 1 2 3 4 5
Expected number of customers 500 550 605 665 731
Revenue 25,000$ 27,500$ 30,250$ 33,250$ 36,550$
Operating costs:
Variable costs 5,000$ 5,500$ 6,050$ 6,650$ 7,310$
Annual fixed costs 8,000$ 8,000$ 8,000$ 8,000$ 8,000$
Total operating costs 13,000$ 13,500$ 14,050$ 14,650$ 15,310$
Operating profit 12,000$ 14,000$ 16,200$ 18,600$ 21,240$
Initial investment (47,000)$
Cash flows (47,000)$ 12,000$ 14,000$ 16,200$ 18,600$ 21,240$
Net present value (NPV) 20,987$
Internal rate of return (IRR) 19.65%
Payback period (Years) 3.26
It can be observed that, investment of $47,000 initially, can help the business to earn
19.65% of return annually. The initial investment can be recovered back in 3.26 years and in five

5SUSTAINABLE BUSINESS PLANNING AND STRATEGY
year time, the business can accumulated $20,987 in capital. Hence, the investment in the
proposed business is feasible, if the desired demand could be met.

6SUSTAINABLE BUSINESS PLANNING AND STRATEGY
References and bibliography:
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting.
Pearson Higher Education AU.
Horkoff, J., Barone, D., Jiang, L., Yu, E., Amyot, D., Borgida, A. and Mylopoulos, J., 2014.
Strategic business modeling: representation and reasoning. Software & Systems Modeling, 13(3),
pp.1015-1041.
Morden, T., 2016. Principles of strategic management. Routledge.