The Mission of Stylin Beauty Salon - Business Plan Example

Business Plan - Beauty Salon Executive Summary Stylin is an all time service salon devoted to constantly providing high customer contentment by rendering outstanding service, classy products, and providing a serene atmosphere at a satisfactory value or price relationship. The Stylin beauty salon will also maintain a sociable, creative and fair work environment that respects ideas, diversity as well as hard work. Mission The mission of Stylin beauty salon is to supply products and services, which augment the customers’ bodily looks as well as mental relaxation. The timing for beginning the new business venture is right. The salon owner identified Oregon, in Portland as the perfect location for the business, having searched for a long time. The demand from the loyal customers of the owner, the dreams of the owner to one time begin her own salon business, the procurement of extremely professional and competent beauticians to maintain the salon business, has made this deal one of great potential. Mariah Steve, co-owner with Jerry John, has operated in a prominent, fashionable salon in Oregon, Portland for the last five years. Consequently, Maria has built up an outsized customer following by dedication and hard work. Maria together with her gifted team of beauticians has all it requires to make this business enterprise an extremely thriving one. The company expects the growing status to lead to many customers and beauticians to endorse the projected growth. In order for the company to attain its objectives, Stylin Salon is looking for additional loan funding. The owners will pay the loan from the cash flow building up from the business. Assets of the salon will collateralize for the loan. Furthermore, the experience, character, as well as the individual assurance of the owners will back up the loan collateralization. Keys to business success The keys to achieving success in the salon business are as follows (Tezak, Terry, and Edward 101): Location site, the salon will provide a simply accessible site for clients. Surroundings, the salon will provide an environment favorable to offering professional and relaxing service. Convenience, the salon will be proving customers with a wide variety of services in one setting, as well as unlimited business hours. Reputation, the salon will be having a good reputation of the owner as well as other beauticians, as offering superior individual service. Summary of the Company Stylin salon will upon beginning of operations, vend a wide variety of beauty services as well as products. They will provide classy nail, hair, as well as skin services, together with top lines of the best beauty products. The commitment to offering all of these services and products in one expedient location will set Stylin salon aside from the competition. The location of the salon will be in a trade strip mall at Oregon City in Portland. The salon will spend 1,450 square feet. The site is one of the most active streets in Oregon. It is a very high profile region, with simple access from all areas of town. Company Start-up synopsis Having spent many months looking for a salon to buy, the owners disputed to begin a salon from the bottom up. The company will use the beginning capital for the leasehold improvements, design, as well as apparatus of the salon. Leasehold expansion will sum to roughly $31,400, and salon apparatus will cost roughly $29,000. The salon owner will put in $700 for cash-on-hand at initial date. Initial Requirements Initial Expenses Rental fee deposit $1,716 Others $0 Total initial Expenses $1,716 Initial Assets Cash needed $600 Additional Current Assets $700 Long-time Assets $60,500 Total Assets $65,500 Total Requirements $67,418 Products and Services Stylin Salon is a fashionable full-service salon that will provide a wide variety of services that incorporate: Nails: pedicures, manicures, sculptured nails and polish. Hair: The services will include curling, cuts, shampoo, weaving, relaxers, waving, colors, and conditioning. Skin Care: The services will include Massage, European facials, and body waxing. Strategy and execution summary Proficiency at what the company will do, ensuring a pleasant environment for clients, and good customer service, will be significant to executing the business plan. Competition Strategy Stylin salon wants to set itself away from other similar salons, which can provide only one or two types of services. Maria operated in such a salon, and she realized, through talking with her customers, that they needed all of the services that the company is proposing. They were very frustrated since they had to get their hair made at one salon, and nails done at another salon. Even though the hub of Stylin Salon is hair services, the company desires to provide their customers the expediency of these other services in one salon. There are a several salons like the Stylin salon in Oregon, although they are mostly in the very upper classes parts of Oregon and neighboring areas. The company does not have any intentions to compete with these salons. Instead, it wishes to provide an average ground for those customers who cannot quite pay for those expensive luxury salons. The business environment will be a relaxing one where the service providers can pamper be clients. The salon will offer soft drinks to customers as they go in for service. They will position the TVs in the hair-drying and waiting area. Such unique services and comfort encourage more clients (Cressy 15). Marketing Strategy The salon is going to apply a very simple marketing strategy. Contented customers will be the excellent marketing instrument. Once a customer leaves the salon with a different look, she or he is spreading the identity and superiority to the public. The majority of the customers will be recommendations from on hand clients. The company does not anticipate advertising their products and services because research revealed that the word of mouth is the greatest advertising tip for salon business (Love 145). They will nevertheless, run specials all through the week. They will also request customers to recommend other customers, and prize them with low-priced or free services relying on the number of customers they take in. The salon will also give price cuts to the new referred customers. Forecast of Sales The data below, shows estimated sales. The company expects income to rise progressively over the next two to three years, as the name of the salon, its services and stylists become clear to the public. The second year returns also foresee the increase of one more stylist. It is worth noting that the data listed has no direct sales cost for services, but merely for products. This is because the company accurately tracks service costs as ordinary monthly costs. The forecasts for sales Year 1 Year 2 Year 3 Sales made The owner $45,700 $58,030 $64,690 First stylist $48,650 $58,550 $65,550 First barber $15,330 $19,550 $23,550 Second stylist $21,650 $26,720 $30,550 Third stylist $0 $24,000 $25,000 Massage and nail $17,980 $21,550 $23,550 Sales of Product $10,101 $9,890 $12,540 The Total Sales made $159,411 $218,290 $245,430 The Direct expenses of Sales Year 1 Year 2 Year 3 Costs of products $4,320 $4,300 $4,400 Others $0 $0 $0 Total Direct expenses of Sales $4,320 $4,300 $4,400 Summary of the Management Stylin salon owners will manage and organize the company in an innovative and creative fashion to make very high levels of client contentment, and to make a work climate favorable to a high degree of individual expansion and economic contentment for workers. The company will conduct training on a regular basis to assist advance the workers’ product skills and knowledge. As the salon business expands, the company will think about giving a worker benefit package to incorporate vacation and health benefits for everybody. Employees Plan The workers plan needs a receptionist who can welcome clients and get payments for products and services. The company will have one barber, five hair stylists, a single nail artist, a single facial maker, as well as a massage psychotherapist. Everybody apart from the receptionist will work as contract employees. The company will pay them depending on the revenues generated. Employees plan Year 1 Year 2 Year 3 The owner $25,000 $26,000 $27,000 The receptionist $13,300 $16,120 $16,876 The shampoo person $7,000 $12,800 $14,000 Total number of people 3 3 3 The total payroll $45,300 $54,920 $57,876 The company’s goal is to be a moneymaking business starting from the first month. The company will not have to stay long before customers find out about it as the stylists will have an obtainable customer base. To guarantee the initial funds lender that the salon owners are monetarily stable, the owners enclose an individual financial report showing other sources of income that incorporate dividend and interest income from other investments. The chart below shows also the gross margin of the company for three years. The data below, shows estimated gross margin for the three years. The company expects income to rise progressively over the next two to three years, as the name of the salon, its services and stylists become clear to the public. The second year returns also foresee additional of stylists, increase in the products as well as clients, and hence the high rise. It is worth noting that the data listed does not put into consideration the direct sales cost for services, but merely for products. This is because the company accurately tracks service costs as ordinary monthly costs. The third ear will have the greatest gross margin, as the company advances. Some assumptions made Returns will increase at a yearly rate of 13%, rising 18% in September and January due to a past jump in returns at this time of year. The company anticipates this rise to remain stable throughout the subsequent year to take care of the ordinary flow of new customers appearing into the salon. Approximates for sales returns and increase are deliberately low, while it overstates its projected expenses to the high side to show a worst-case situation. The company did not include the cost of goods sold in their computations of total service sales, but incorporated all linked recurring costs, like supplies and payroll Works Cited Love, Toni. The World of Wigs, Weaves and Extensions. Albany, NY: Milady/Thomson Learning, 2002. Print. Tezak, Edward J, Terry Folawn, and Edward J. Tezak. Successful Salon & Spa Management. Clifton Park, NY: Milady/Cengage Learning, 2012. Print. Cressy, Susan. Business Management for Hairdressers and Therapists. London: Heinemann, 2003. Print. Read More