Glam and Glitz, a beauty salon is my new venture which can deliver highly promising service in affordable price to shape up the looks and styles. This business mainly aims all style conscious people in all age groups. We also maintain attractive, friendly and nice work environment, which respects customer's opinions, values and services.
"Let Your Body Smile with Glam and Glitz". To supply great services and maintain quality those boost our customers' outer looks and mental satisfaction.
AIMS & OBJECTIVES:
Be a very good customer-focused, highest quality oriented business which can enhance profit rapidly.
To gain £2,20,000 profit within first year
Need to maintain £60,000 breakeven.
Name of the business: GLAM AND GLITZ is my business name.
Type of the business: This business is a sole trader by nature and qualified beauty-therapists are managing the whole centre.
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Business Location: Good location is needed for any kind of business. So the business would be set up in the Bellingham Road which is in the heart of South-East London. I choose this area for the extensive mix of people and easy accessible communication. Basically in this area are full of Afro-Asian ethnicity and really promising market for this kind of business. In future, this company will introduce their new branches in other area of London including Central area. The full address will disclose later.
Glam and Glitz is rendered an upscale fully-equipped beauty parlour for all kind of people. We will also offer an ample choice of services that include:
Hair Care: Cuts, Colours, Weaving, Curling, Perms, Straighten, Shampoo and Conditioner with rich herbals care.
Skin Care: Waxing, Reiki, Massage with Aroma Therapy, Facials and Toning.
Nail Care: Pedicures, Colours with rich Polish, Nail Arts and basic manicures.
All the services will be organized by beauty therapist and professional personalities. Nail cares should be provided by nail care artists who can do sculptured nails and polishing with excellent manicures. These services will offer from as little as £15 only.
Hair cares will be treated by modern equipments and experienced beauticians. The basic hair cut will be starts from £8 for men and £15 for Women.
European and African facials will be done with great care and will starts from £30.
For starting the business the company needs some primary requirements. The list of the initial needs is given below:
The company needs at least 1450 sq ft building which will be hired in its pre-fixed location of South-East London. There should be room for 15 customers at the same time and all the separate space for nail care and massage. There are two more room will be required for shower room and toilet.
For decoration and equipments should be cost up to £25,000. Also needs music system and Security systems (CCTV, Fire Alarm and Central Locking).
The initials expenses will be £60,500. These amounts should be spent for leasehold improvement, rent etc.
The internal and external analysis of a company could be defined in SWOT analysis. SWOT analysis also can illustrate the competitive advantages and strategic environments. Here is the brief notation:
Customer satisfaction is one of the great assets for the company. This possession could be fulfilled by the cost effectiveness. There is no bound to the customers for choosing the right product. The cost of the products will be very pocket friendly and force them to choose the good one for the outstanding service.
Customers can get all the necessary service in one roof. They don't need to go different salon for nail care or massage. They can enjoy the all service simultaneously with affordable packages.
Location is one of our key issues for future success. In the South-East London, there are good communication between bus, rail and DLR services and these are easy accessible and the shop is just side of the road.
This company specially stress the African and Asian ethnicity cause their unnatural hair. That is why company is offering a number of products which is based on Afro-Asian style and culture.
Always on Time
Marked to Standard
For the every different services will be organised by professional personalities and they can also help out from daily stress with aroma therapy.
Glam and Glitz is the new one in this industry, so lack of knowledge and lack of experience is the huge weakness of this business.
The power of the business is not strong as compare to other long lasting salon business.
Small capital and non experienced employees will be problem for the business.
Day by day people are more style conscious and they want to experiment with their looks. They also imitate by the hand of media. So Glam and Glitz has a good opportunity to capture the market in the right time.
African people are getting trouble with their hair loss problem, so this business can gain good customers from these people as well as teens.
Location is one of the promising factors for this business, because of the vast locality in the SE London. The African people and Asian people are like to staying that place. So this business cannot run out of clients.
This business would be suffered from its rivals. There are lots of good quality beauty salon and parlour in the market. So this is a huge challenge to beat those established competitors.
Other businesses also gain their strong market position due to their brand name and value. They also provide tattoo service, body piercing and more modern services with latest technologies.
Taking a lot time to establish the whole business and gain strong market position. It's also tough for a new comer in the market to popular their brand name.
The beauty and salon industry is growing rapidly. Everybody can realize that this business is very much profitable with in low investment. In the UK health and beauty industry is worth surprisingly £4.2 billion and it will grow more within next 3years.
Beauty and salon industry is basically run with the sole traders. These are very small entrepreneurs with lots of stamina. But in the central part of London, some big brands are making very good money with many branches. They are also providing the ultra most comfortable massage and many types of therapy including swimming pool with modern facilities
There are lots of good quality salons and beauty parlours are ruling the market. In the south east part of London, 'Neo Uno', 'Village Way', 'Inspire Beauty', 'The shadows' are the main rival of this business. But Glam and Glitz is adopting the lowest pricing strategy to beat them.
Neo Uno is the leading beauty salon and hair dresser in Catford area. They also provide a numbers of good quality hair cut with perms, straight, curling, colouring and waving. Their basic hair cut for men start from £15 and for ladies is £30. They are also proving some additional services like facials, hair massages, and hair extension, thermal straighten and African hair cut. This salon also accepted credit cards and cheque. Sometimes they are also proving out call service. These services are available every day except Sunday.
The Village Way:
This is a well established beauty salon based on Dulwich area. They are serving their clients since 1989. They won the L'Oreal hair dresser awards for their outstanding customer service with very unique styles. Their service starts from £26 and its ranges are exiting up to £300. Exquisite bridal service and wedding service are provided for the special customers. They also are doing permanent colour and permanent waving with vapour therapy. These services are varied £120-£200. They achieve their brand value and gain market share already.
Besides those branded salons, there are lots of beauty salons exist in this area. Their services are depending upon the price. Everyone have different strategy to gain the market position. Every salons are very customer focusing and keen to provide as low as they can.
Glam and Glitz will provide all the service with great care and nurture the all customers like possessions. This company will try to set up their product price very lower comparatively. In future this salon will be converted into Spa with herbal therapy centre. This business is looking for the advantages and how to gain more profit.
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Marketing strategy is to follow up the recent trends and adopting the good theory or idea. These strategies can be implemented with this business plan. Every business is keen to getting the market share to capture the good number of customers. The strategies are summarizing below:
The beauty and salon markets can be segmented into three or four groups. But this is business is mainly targeting the three segment of the current market. Like:
Gen X and Y: These groups are belonging between 14 to 22 yrs old people. In this age the people are becoming style conscious and also try to follow their favourite stars. So this business is keeping on its eye to the young customers. For them, company will offer discounts and monthly rate charts. Glam and Glitz will serve the latest fashion materials to their young groups.
Quality Conscious: Some people are really finding the good quality with affordable price. So glam and glitz will assure them to delivering the highest quality product in low price. For them, the massage service, facials, pedicure, manicure services are offered. They can enjoy the good atmosphere with high quality interior decoration and facilities.
Ethnic Mix: This Company is located on the part of SE London. The locality is mainly mix with African and Asian people. For the genetic reason, African people are suffering from hair loss or curling hair. So they want to perm or straighten their hair as well as want to wave the hair permanently. So Glam and Glitz will expect to gain good customers from the African people.
The location of the business is very essential for growing the business. Glam and Glitz is located in South-East London where the most of the residents are immigrants and those who look for cost effectiveness. All the market leading salons are quite expensive and inconvenient for their location. So this business can expect good customers in its local radius.
Glam and Glitz will be targeting the young generation's style conscious people as well as aged people those who need to maintain their beauty and outer looks. This company will be arranged the free workshops in various school and colleges on benefits of keeping themselves beautiful and fashionable
MARKETING MIX (THE 4 P's):
Marketing mix can helps to know about the external environment of the company. Marketing Mix consists of four 'P' i.e. Product, Price, Place and Promotion.
Every product will be maintaining good quality.
Everybody can explore their own beauty with the help of the professional beautician in the friendly environment.
The equipments and machinery are very modern and convenient.
Glam and Glitz will provide the best service in very affordable price.
The basic products will be starting as low as £ 8. This price is very low comparatively to any other beauty salon.
Young people can enjoy the special service with their monthly subscription which is 30% cheaper than regular service.
Some packages can available with great price deals.
The business will be formed in SE London for its cost effectiveness.
This place is connected with frequent bus, rail and DLR service. So its communication is very good.
The business will be in the roadside so there is no problem to access for disable or physically handicapped people.
Advertise will regularly come in the daily newspaper like Metro, The Sun etc.
The posters will fix up in to the local areas.
Website can help to promote this business.
Nearest Shops will be referring the people for use the service.
Special promotion strategies will be taken in the Easter, Christmas and main events.
Financial statements are the key issues of any kind of business. This report can shows us a clear view of the company position and future growth. In the financial statements can provide company's profit and loss sheet, balance sheet, break-even point, cash flow statements.
Glam and Glitz has two major sources for finance. One is personal fund and another is bank loan. Bank loan can take crucial part in this business. More than 75% bank loan are taken from the renowned bank of London.
Two financial sources are: a) Personal Fund: £ 18,800
b) Bank Loan: £ 58,200
Rent (For 1st year)
All the production management and management accountants are extensively using the break-even analysis. This calculation can helps to sort out production costs of "variable" (changing based on output) costs and "fixed" (not direct cost of production) costs.
The sales revenue are compared with total variable costs and fixed costs which settle up the sales value or production. This figure is shown that the business neither in profit nor in loss. Here one graph can indicate the break-even point including the sales revenue with profit and loss.
Fig: Break-even point graph including profit and loss scale.
The theory of the break-even point is: Fixed Cost/ (Sales price- Variable cost)
So fixed cost is : Rent(1st yr) - £ 45,000
Insurance - £ 550
Total Fixed Cost is - £ 45,550
Sales Price avg. £20 and Approx variable cost £5
Break-even = 45,550 / ( 20- 5 )
This above figure specify that this company can achieve the breakpoint to providing service approximately 3037 people in a year. So the break even sale is:
Break-even sale: Number of Units Sale x Sales Price
= 3037 X 20
= £ 60,740
PROFIT & LOSS (2 yrs Projection) :
Cost of Sales
Rent (1st yr)
Profit before interest & taxes
BALANCE SHEET(2 yrs Projection) :
Liabilities & Capital
Long term Liabilities
Add net profit
Total Liabilities & Capital
CASH FLOW STATEMENT (2yrs) :
Cash from Receivable
Total cash from Operations
Total Spending on Operations
Long term assets purchasing
Sub-total cash Spent