Beauty Salon for Ladies - Essay Example

Beauty salon for ladies- Business Plan Executive summary It apparent that every person has his/her own desires and ambitions in life. Owning a business is a great idea as it denotes the ability to organize and manage people. Although different people study different professionals according to their ambitions in life, practicability of their professions is ideal in executing their desired goals in life. Every individual is delighted to make money and progress effectively. Thus, owning a business that articulates on ones ambitions is considered an ideal idea. The passion involved in the beauty salon business comprises of the tenets of satisfying customers as well as putting into practice the expertise of beauty therapy. The chief aim of the business is to earn profit as well as meet the needs of customers. Schein (2010) argued that successful business culture is achieved by a way of ensuring that customers are satisfied with the services offered. This calls for diligence dealings with the customers. For any business to thrive in a highly competitive market, it is recommended that the business managers exercise professionalism in every aspect of the business. In this regard, top quality and a unique way of doing business are considered ideal in executing professional mandates. The latter is that one should meet the needs of his customers and ensure that the business is sustainable enough (Root & Koenig, 2006). This is indispensable in that customers are considered as primary assets of any business and that meeting their needs is a primary goal that must act as a driving force. With the increased need for women to acquire more beauty and the urge of wanting to be smarter, the salon business is increasingly becoming critical in meeting their needs. In this regard, the salon will be composed of both the beauty and hair products. In addition, all services related with the hair and beauty will be offered. However, the hair products will include brushes, combs, conditioners, hair extensions, styling products, treatments, shampoos and any other hair product. Beauty products will include skin care products, pedicure and paraffin wax, cosmetics, jewelry and other beauty products. McGrath (2013) argued that for any business to thrive in any market, it is indispensable to have measures devised and put in place to develop and maintain competitive advantage. In this regard, the salon business will have strategic measures devised to ensure all the objectives are met. Among the strategies will be a business culture that will be developed with regard to the laid down mission of the business. The business will have unique products and services that will surpass other competitors. Different products will also be available and from which customers can choose from. Marketing The target market will be women in the city of Sohar. Although there are many salons in the city, it is apparent that few of them offer distinct products and services. Different age groups would wish to have products and services that match their age. For instance, women over 50 years would not mind using the old hair styles as long as they feel they look good in them. This is contrary to young women in their early 20s who would always want to go for the new fashions in the market. Thus, the salon will target all types of women. In addition, there are those products that are cheap as well as those that are expensive. In this regard, every person will find the salon ideal for them since everyone will have the opportunity to be served depending on their ability to pay. Sohar is one of the fastest growing cities in Oman. With an estimated 150,000 population, the city is better placed in terms of making salon business thrive. Some of the competitors include Shirin’s salon, Lamer beauty center and JP hair & beauty salon. Although the prospect of the business is to diversify to other cities and probably in foreign markets, it would be critical to first concentrate on making it thrive in Sohar to first develop competitive advantage that would give the business foundation required for foreign markets. Besides, according to McGrath (2013) any business that would want to thrive in a foreign country, it is imperative for the business to first develop a strong foundation locally as it tries to study the foreign markets. Only then a business can boast of having the threshold of entering a foreign market. In addition, this will entail studying other competitors and what they offer in the market. Deliberations of their operations would entail focusing on the most successful competitors and then focus on how to offer more comprehensive and improved products and services. On the other hand, it is critical to also focus on the failing businesses. This is necessary in that it helps the upcoming business to identify the causes of the failure of these businesses (Root & Koenig, 2006). This helps the business in avoiding the same mistakes that were committed by the falling ones. A market research has been carried out especially on specific aspects of the market. First, research on the demand of the salon products and services was prioritized. This was ideal in helping to determine the viability of the business as a new entrant in the market (Richbell, et al., 2006). Any business requires having enough demand that will sustain it even in future. When supply is more than demand, then such a market is not viable for new market entrants. This means that the forces of the market will force the prices to go down as well as lack of enough customers because similar businesses are many and customers are few. In this regard, a thorough market research was carried out and the results denote viability of the business in the city (Mason & Stark, 2004). Second, a research on the possibility of the market growing or falling was carried out. This is also very indispensable since it gives a picture of what the business would be in the future (Drejer, 2002). Various indicators such as population growth, infrastructure, the rates of rural-urban migration and other socioeconomic indicators are imperative in determining the success of any business. Various indicators pointed out that the city of Sohar is actually a fastest growing city in many aspects and that it has prospects of sustaining the business. Lastly, the research on the culture of the people of Sohar was also worth researching. This gave the idea of the kind of products and services that women from the area want. In most cases, although there are common beauty styles across the globe, some culture do not allow some of them to be used by women in their culture. In such a situation, it is indispensable to have a thorough research to identify some of those cultural variations. This way, the business services would be compatible with the cultural needs of such people thus the growth of the business (Root & Koenig, 2006). The stakeholders of the business will be composed of the customers, suppliers, distributors and the employees. With all the above stakeholders, it would be necessary to devise strategic marketing tools that will be used for promotion purposes. For instance, distributors can be used in promoting different products. In most cases, distributors are in a better position to promote business products faster than other means because they know the market well and have already their customers they can directly contact for promotion purposes (Havaldar, 2005). Advertisement through media will also be used as a way of promoting products and services. Television and radio will be ideal for advertising various products in store. For services, television will be more ideal since it will display some processes undergone for customer service. Free samples can also be ideal especially for people who like purchasing products they have knowledge about. Alongside these methods, special prices and displays will highly serve the purpose of advertisement and promotion (Havaldar, 2005). Distribution of the products will be mainly through selected distributors and sales person. However, since the business is new, using distributors will be cost effective as opposed to employing a sales person. However, as the business progresses, the need for other ways of distribution may arise. The same case will apply when purchasing new products. Instead of using middle men in getting new products, direct purchase from manufacturers is always profitable. Operations Specifically, the business will be set up at Sallan Street. Due to proximity of the street, many tourists will find it convenient to visit the salon during their relaxing time or just before they leave for other tourism businesses. Any business must have a clear guideline on how to conduct its businesses. Coyle (2009) noted that a clear supply chain is necessary as a guideline to various operations. All processes involved in the cost benefit strategy were evaluated and articulated upon. Competent employees have already been identified and briefed about the business operations. Furnishing of the store has also been done with every fine detail of the requirements purchased and put in standby. Management Every organisation must have a well structured management with every employee having been designated his/her duties and responsibilities. At the top will be the CEO of the business. Then there will be three managers. One will be human resource manager. He will be responsible for recruitment and selection of the employees. He will ensure that all employees perform their duties accordingly. He will also be responsible for firing incorporating employees. The human resource manager will work hand in hand with supervisor who will be briefing him about the work progress and in case there is a problem within the workforce. He will possess a degree in human resource management. Two years experience will be required for one to be considered for this position. Additional skills in hair and beauty business will be an added advantage. Finance manager will be responsible for all transactions in the business. All purchases, sales and balancing of accounts will be his mandates. He will be expected to advise the CEO about the progress of the business. In case the business will record continuous profits, he can advise the CEO on the expansion strategies. Conversely, if the business continues performing poorly, he will be expected to advise the CEO on the best strategies to apply to revive the business. The finance manager will be required to have a degree in finance and accounting. Three years experience will be needed. Operations manager will also be an important part of the management team. His responsibilities will entail overseeing general operations of the business. He will be reporting to the CEO regularly and brief him about the progress of the business. A degree in project management will be required for one to be considered as operations manager. Two years experience will be needed. Financial From the available savings, the money will be enough to set up the business. However, in case of any deficit, getting a loan from a bank will be considered the next option. In case the roan is acquired, there will be a strategy of minimizing the costs to take care of the loan. Nevertheless, since the loan will only be applicable in situations where business expansion will be required, it is presumed that there will be no issues in repaying the loan. Actually, sourcing for loan will be the last option. It would be imperative to plough back the profits for expansion purposes. This is more convenient since there is no pressure to return the money (Honig & Karlsson, 2004). The business will be under sole proprietorship. Therefore, the possibility of sourcing or seeking financial assistance from other people will be not be possible. Although setting up a sole proprietorship business is a bit tricky due to lack of sharing responsibilities and loses, it is also the most advantageous because profits are not shared. Compensation of all employees will be evaluated after every two years depending on individual performance and the overall performance of the business. However, Doerhoff (2014) noted that employees are part of the primary asset of a company thus must be treated in such a way that they feel comfortable working with the company. In this regard, one of the best ways of making employees feel that they are comfortable is by a way of compensating them competitively. This will motivate them and make them feel part of the business. Risks A business that faces different risks is always on alert to avoid the risks. The major risk is the already established salon businesses in Sohar. If prior proper preparations that prevent poor performance are not put into consideration, the risk of the new business being pushed out if the market by the established giants is high. Such businesses have an advantage of being established and known in the area. However, with good strategic plans, it is easy to take over the new market, thus eliminating the risk of the old giants (Drejer, 2002). There is also the risk of dealing with fake or counterfeit products. This is common to new businesses which have little knowledge of how the market operates. This is very critical in that it can lead to loss of business or even bring about health related problems to the customers especially if they apply the fake products on their bodies. To overcome this, it would be indispensable to carry out a thorough market research to find out the genuine products to sell or to use in the salon. In case the business fails, it is important to go back to the drawing board and come up with a new strategy of doing the business, and this time round with the help of business professionals (Drejer, 2002). Since the failure will be attributed to certain things, it will be easy to identify the problems and devise new ways of approaching the business and on how to overcome similar challenges if they happen in the future. Additional information The business will be located at Sohar city along Sallan Street. The size of the business premise will be 40 feet by 45 feet. This will be enough for the service area, two offices and a store. In case of new signs of business growth, a new bigger business premise will be chosen. For the first one year, leasing the premise on rental basis will be ideal until such a time that the business shows signs of progress and growth. The same case applies to major machinery and vehicles. All machinery that would require large sums of money to purchase would first be leased. However, the basic equipments will be purchased. Summary With all deliberations put in place, it is apparent that the business is promising and will thrive. With the adequate market research carried out, there is no doubt that the business will be profitable and has the potential of expanding to other areas. In addition, with the uniqueness of the services offered, winning over customers will be easy as well as retaining them. Thus, ambitious investor will find it necessary to invest in the business. Conversely, with a proficient workforce, it is apparent that the quality of services offered will be appealing and this will attract more customers thus viability of the business. Reference list: Top of Form Top of Form Top of Form Top of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Coyle, J.J. (2009). Supply chain management: A logistics perspective. Mason, OH: South- Western Cengage Learning. Doerhoff, B. (2014). Six steps to small business success: How to start, manage, and sell your business. Palmyra, VA: Maven House Press. Drejer, A. (2002). Strategic management and core competencies: Theory and application. Westport, Conn: Quorum Books. Havaldar, K. K. (2005). Industrial marketing: Text and cases. New Delhi: Tata McGraw-Hill. Honig, B. & Karlsson, T. (2004). Institutional forces and the written business plan. Journal of Management, 30(1), 29–48. Mason, C. & Stark, M. (2004). What do Investors Look for in a Business Plan? International Small Business Journal, 22(3), 227–248. McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Boston, Massachusetts: Harvard Business Review Press. Richbell, S., et al. (2006). Owner-managers and Business Planning in the Small Firm. International Small Business Journal, 24(5): 496–514. Root, H., & Koenig, S. (2006). The Small Business Start-Up Guide: A Surefire Blueprint to Successfully Launch Your Own Business. Naperville: Sourcebooks, Inc. Schein, E. H. (2010). Organizational culture and leadership. San Francisco: Jossey-Bass. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More