Business Planning for Cosy Health and Beauty Club - Case Study Example

Business Planning For Cosy Health and Beauty Club Introduction It was after realizing the high demands placed on health and beauty club that I decided to start one of my own. This would also help in averting the increased stress levels in the workplace experienced by a huge percentage of workers in the globe. Through intensive research I learnt that stress in the workplace has been costing billions to the many nations of the world, this was also revealed by the survey conducted on psychosocial working conditions, which indicated that in 2004 and 2003, 16.5% and 15.2% of workers respectively behaved that their jobs were stressing them. This in itself brought the need of starting a health and beauty club on the other hand I learnt that the number of those people who are obese had risen at an alarming in England, for example more than 30,000 people die annually as a result of obesity. My initiatives to start ma health club was based on the assumptions that all these people suffering obesity would not be experiencing their present conditions had there been a health and beauty club to offer them their required services. (Packham, 2002) The Business I therefore settled on starting Cosy health and beauty club. The club opened at a very spacious and strategic room so as to attract as many clients as possible as well as providing the necessary comfort required by the visitors. The vision of the Club is ensuring quality services to the clients with a mission of becoming the market leaders in health and club services .I ensured that the club was well staffed so as facilitate lending of services to the customers the club had also to employ professional consultants and doctors who would provide advanced professional services, most of these doctors had a Chinese origin who were very resourceful and conversant with Chinese treatments and traditions. To diversify my services I also hired some doctors from India, United States and Australia thereby bringing many professionals and talents from various corners of the world to my business for the convenience of my clients I choose a strategic location i.e. at the heart of London. This location would ensure that the repurchase – satisfaction intensions relationship were fair – the city of London is a known place in attracting many visitors annually who come to relax and have fun. (Bob and Ron, 2OO2) Marketing Plan To come up with a desired business plan I applied the PESTLE Framework that helped me in examining the external environmental factors that influences a health and beauty club that has all the considerations regarding the external environmental factors. In addition I applied the Porters 5 forces model that assisted me in establishing features that would place the club in a competitive advantage over its competitors within the health industry as well as in establishing its weak points. I also conducted a financial assessment, which was supposed to guide me on how to use my finance as well as the expected repayment period (Hakim, 2000) I carried out an analysis on the political environment in the UK where I discovered that most Britons view the money spent on pampering and relaxation as a form of private health insurance. This goes in hand with their traditional belief that prevention is better than cure. This greatly motivated me in my new venture of health and beauty club since I knew that I was certain of having a considerable number of clients. The Britons seek to receive nutrition counselling, manage stress, lose weight, look and fell better, slow ageing process, relieve discomfort via naturopathic medical treatments and consuming natural supplements for instance, minerals and vitamins which help in improving health. In the political limelight the idea had the government support since the UK government support spa industry due to its ability in solving occupational problems it means that increased returns would be realized in various industries, a boost to the UK’s economic growth and development will not doubt receive the governments backing and support. (Hakim, 2000) On the social environment I was guided by a report from Mintel (2005) which revealed that markets penetration rates of the health resort were expected to rise as long as there were increased awareness to the general public on the benefits accrued from a health club, more opening of health clubs with operators’ appealing to the broaden target markets. The sustained market demand, which range from 15 – 25%, is another indicator that the current social environment accommodates the business survival of a health and beauty club. Obesity is a major concern in the UK and also the increased stress levels. News from the British Broadcasting Corporation (2004) revealed that obesity claims more than thirty thousands lives in England alone, with the condition costing NHS a staggering £500 million annually and the overall countrywide Costs being £7.4 billion annually. Considering that three quarters of Britons are overweight with 22% being obese the health Spa will receive a thunderous welcome from Britons. Obesity is known to bring diseases such as hypertension, cardiopathy, among others. Starting a professional health club with therefore assist in solving the two problems. Masso therapy with a Spa of essential or will be meant to relax stress while moxibustion therapy will help in improving conditions of obesity. The health club will therefore help in developing overall well-being through the use of professional services that promotes the renewal of body, mind and spirit. Management Team Bearing in mind that technology is a salient feature in any business organization I ensured that I availed technology in my health and beauty club. These were through introducing moxibustion and acupuncture therapy and massage technology. To ensure that the two technologies were well implemented I hired the services of a Chinese doctor due to the fact that the technologies were not to be applied by just any other doctor besides the Chinese owns a more and complete system of Chinese medicine. After employing Chinese, American and an Australian as my professional doctors in Cosy heath and beauty club. I also needed some more workers to carry out the message therapy I therefore hired a trainer who took out a selected team of employees in the massage process this took him two months to adequately and effectively train the workers. The employer later gained the necessary skills and knowledge which was clearly demonstrated by the manner I which they carried out their duties. I saw the importance of maintaining cleanliness in the surrounding environment so as not to endanger the community around, in this respect I hired two cleaners who possessed some experience in general cleanliness. I also hired a manager to manage the health club and a financial officer to take care of all the financial transactions in the club. I was also to overseer as the club’s director. I had the provision for legal measures through following the British law that clearly guides the foreign labourer on what to follow and what not to do in the healthy and beauty club practice. Still in the legal spectrum I ensured that I have employed two doctors both of whom had professional knowledge and qualification regarding the Chinese medicine so as to conform to the legal requirements. I ensured that my health and beauty club was supervised by Spa business Association (Spa BA) and also supervision from British International Spa Association (BISA) was also essential. The report from Mintel (2005) revealed that British international Spa Association has been the leading representative body for Spas in the United Kingdom and also a global organization which has been formed by professionals so as to help in establishing education provision and quality standards for the health and spa resort industry. It further reveals that the Spa Business Association (Spa BA) commenced at Olympia in March 2004 at what was staged as a professional beauty exhibition. Spa Business Association has been campaigning for the betterment of the Spa industry in Ireland and the United Kingdom. It has been very resourceful in creating opportunities to ensure networking in the industry, advocating for unity, expansion and exchange of ideas aimed to benefit the association members. On the Economic Environment I took the necessary measures to ensure that all people from the various economic classes and most importantly those people from developed countries respected my newly started health and beauty health centre. The Mintel (2005) report asserts that as the developed nations continue to develop, personal levels of stress, tends to increase, the fact that phase people from developed countries earns more for working hours makes them place higher value on leisure time considering the fact that they can easily afford. Besides the female market is also lucrative since the female desires perfect figure free from obesity. I also focused much on the environmental issue, I ensured that activities going ahead in the health and beauty club were environmental friendly with ensured proper disposal of needle head and water. Since I put the spa pool into some essentials oil, I ensured that my health and beauty club had a well-installed sewerage system treatment. The system is very essentials since it prevent the water coming from this club from polluting the environment a thing that guards the surrounding environment from environmental hazards. It is no doubt that the needle head can pose a greater danger than the water, I therefore ensure that the needle head is properly disposed. This protects the employees in the health and beauty club, it customers and the surrounding population from suffering any physical harm as a result of carelessly disposed needle heads. The management ensures that the environment is well conserved through proper disposed disposal. I also applied the five porter’s forces in my business planning rationale. (Udell, 1996) Though the power of buyers had been low with Spa recording lowers market penetration in the United Kingdom. I worked with the assumptions that penetration rates world soon increase. The rising standards of living encouraged me that the consumer would start focusing on the health and beauty. For now the sales of services at my health and beauty club has been sharply rising wit the market demand increasing day in day out. The sales have grown up to thirty percent for now. The Spa market has widened its customer base. Earlier on I had most women as my clients but for now more men have started showing up a clear indication of achieved penetration. (Dix, 1991) Consequently, average price on services offered at the health club has been rather high making most people to shy away. To avert this I ensured that the club provides a range of products along with good services as well as keeping the price reasonable and affordable to my customers. I paid more attention to the buyers on understanding that they played very important role on the health and beauty club business. On the threat if entry I understood that the consumers were becoming increasing concerned with their physical appearance. This has ensured that consumers flock in buy business venture. A research conducted by Mintel (2007) indicates that these days’ consumers have been spending a lot on health and beauty treatments, with the spending recording 174% rise between 2000 and 2006 I the UK alone. Increased campaigns on health and beauty benefits have seen an increase in the opening of health facilities. My health and beauty club business has been receiving new customers daily as well as serving the existing and potential consumers. Upon entry I took into consideration the investment cost that included fixed cost initial cost so for the business has been operating well and consider it a worthwhile investment in addition mintel (2005) observed that customers will go to spa with a aim up combining with other activities for example, sightseeing. Although the spa is doing well in the health and beauty industry, the business is not fully exploited in investor only needs to ensure that services are accessible and very affordable to the clients this way he will be obscured off market every and penetration. (Michael, 1998) The entry is facilitated by the fact that most people will not oppose anything that improve theirs health and health and beauty I also offered the cupping guasha, acupuncture along side spa c thing that ensured widened market entry. On the power of suppliers I have realized that theirs is not such high. Though we have many suppliers who are capable of offering spa facilities that are of high quality in the globe. I have come to realize that the power of suppliers is highly influenced by the number of suppliers that a company has to choose from i.e. the less the choice power the suppliers are likely to have and vice versa in my health and beauty up. I have been having more choices of suppliers a thing that has made the suppliers bargaining Power to be less this has returned improved my business operation through increased profitability and widened costumes base linked with unpaired band high quality service. My suppliers has also bee very instrumental due to their quality supplies and manageable prices (Burns and Dewhurst, 1996) I have ensured that the healthy and beauty club offers after sales services to the consumers through offering guidance on how to use product to use the product to the consumers this has being very helpful in fighting threat that may be bought about by my product close substitute which include shower gel, DIY shampoo among others. The sales grids has created an impression to the customers that the above listed substitutes are not effective or compared to spa though they may appear cheaper and easy available in the market. The business is operating without facing threat from this substitute due to its achieved market penetration. (Michael, 1998) The club is facing competitive rivalry from other clubs that offer similar services. I am seeing the prevailing competition as very healthy since it gives room for products and services innovation leading to high quantity services it also creates a conducive business environment where every company improves on its services so as to satisfy its customers as well as realize financial returns. However my club has many advantages over its competitors thing that rent nut makes it ranked in the first position under the category of health and beauty clubs. The club is located in a strategic place, which is easily assessable to many consumers other than providing general treatments the club has varied origins making it enjoy competitive advantages. The motion of rendering Chinese tradition treatment has specifically put the club which of others. Since it has greatly assisted it gathering more customers. (Packham, 2002) Financial Breakdown My financial projections were as shown below. My business plan has greatly assisted me in obtaining some loans, many lenders have been impressed by my business plan a thing that makes them to continue extending loan services to support my business. The business plan has been revealing some well organized and specific information regarding my venture; this has allowed them to conduct an evaluation of the prevailing business opportunity as well as how the borrowed loan will be repaid. My business plan has therefore been able to clearly define the dealings at the same time bringing out suggestions as to how the business enterprise will be operating in the prevailing market conditions. It has served both internal and external purposes. With the internal purposes my business plan has been very helpful for the management purposes as the Club’s manager I have always been guided by the business plan to achieve the desired managerial skills as well as management experience. Through the business plan I have been able to systematize an entrepreneurial venture and in implementing sufficient and necessary activities for the success of my business. As suggested by Camille (1999) it has also made it possible for me to convince banks and other financial institutions to extend loan services towards my business endeavour. Conclusion Cosy health and beauty club has been doing very well, this follows the full implementation of the Porters five forces and PESTLE analyses. The highly dependable financial evaluations carried out in the club has been attracting more capital and interest from investors as well as making them more confident. This has ensured continued financial support to the club as well as increasing its competitive power. However, I have been experiencing problems in my business planning process most of which I have managed to solve under the assistance of my highly qualified employees. Reference Anderson, H. and Woodcock, P. (1996): Effective Entrepreneurship - A Skills and Activity Based Approach, Oxford: Blackwell Bob, W. and Ron M. (2OO2): Strategy Process; An International Perspective, Third Edition, London, Oxford University Press Bridge, Simon, O’Neill, Ken and Cromie, S. (1998): Understanding Enterprise, Entrepreneurship and Small Business, Basingstoke: Macmillan Burns, P. and Dewhurst, J. (1996): Small Business and Entrepreneurship, Basingstoke, Macmillan Camille, P. (1999): Newer Insights into Marketing: Cross-cultural and Cross-national Perspectives, London, Haworth Press Dix, C. (1991): Enterprising Women: The Lives of Successful Business Women, London: Bantam Press Hakim, C. (2000): Work-Lifestyle Choices in the 21st Century: Preference Theory, Oxford: Oxford University Press Marshall, J. (1995): Women Managers: Moving On - Exploring Career and Life Choices, London, Routledge Michael, E. (2000): Competitive Advantage: Creating and sustaining superior performance. 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