Table of Contents
- Executive Summary
- Price for an Essay
- Business description
- Mission statement
- Business description
- Products and services
- Market approach
- Target Population
- Consumption trend
- Competitive analysis
- Employment Overview
- Regulations and Legislation
- Insurance Coverage
- Start-up Costs
- Related Free Economics Essays
The proposed business will be located at Guildford city although its operation is expected to extend to other cities in due time. The business is expected to serve ten customers simultaneously before the business expands. The men’s salon will be dedicated to providing services that delivers customer satisfaction. This will be achieved by rendering quality products, excellent services, and developing an atmosphere that is enjoyable. The business creates a price relationship with the clients that serve to attract customers to the business. The business will maintain a fair, friendly, and work environment that is creative which enables hardwork and diversity of ideas.
The market research that has been undertaken indicates that there are very few businesses that specialize on men salon. This business will take the advantage of the unexploited market to deliver services. Offering of quality products and services is the main basis of maintaining customers in the business. Dealing exclusively with men give confidence to the men seeking the services as they may shy away from sharing services with ladies. The constant increase for health and beauty products by men has invoked the need to establish such a business.
The financial requirement of the business amounts to $76,000. This cost caters for the start up costs and the working capital at the onset of the business. The start up cost includes the cost of purchasing the necessary stock required to establish the business. The raising of this amount is through external financing.
The mission of the business is to become the largest service provider for men’s beauty services that enhances physical appearance of the clients.
The business will be based on a location that is easily accessible to most of their clients. Since the demand for beauty services by men is high in the town setting, the business will be set in Guildford city. This ensures that the business will make maximum sales of their services thus ensuring its existence. The environment of the business will highly conducive to enable the provision of professional and relaxing services. The business is expected to offer a big range of products and services. This will also ensure there is extended services to the customers by having extended operational hours. The extended operational hours is meant to cater for individuals even in employment sector who will find it convenient to access services after work. The business will embark on creating a reputation through provision of superior services hence creating a competitive edge among other beauticians.
Products and services
The men’s beauty salon will provide both products and services to enable accomplishing the needs of the customers. The services offered by the business include manicure, pedicures, sundbeds, massages and waxing. These services are meant to provide physical fitness for men especially those who feel uncomfortable to share beauty salons with ladies.
To cater for the several needs of the clients, there will be a bar within the premises to cater for those who want to drink and are over 18 years of age. The age limit ensures that the drinks are sold to adults only according to the legal requirement of the state. As the business expands more products will be brought to the business through dealing with several beauty products. These include selling of skin care products. The business will identify major distributor of beauty products within the city to supply it with the products. All these products and services will be provided in one location that is convenient to the customers. This offers a competitive advantage to the business in ensuring all services are under one roof.
The hair products will cost from around $5 to $50. The cost of the drinks will also be within this range. The costs will not have big difference from what is charged in the market to ensure attraction of customers. Given this is an investment in a new field the cost of the products will be relatively lower.
The average cost of the services will be $50 thya will be ranging from $15 in the case of hair cut to $175 for clients seeking a full package of services. The full package will include manicure, pedicure, hair cut, and massage. The competitor’s pricing is higher than the prices set for this business. This ensures that the competitors do not edge us out of the business.
The products and services offered by this business will definitely sell due to the existence of unexploited market in this field. Given that there are very few businesses within the market that deals in men beauty, this business is expected to thrive and achieve progressive growth over time. This trend will result to expansion of the business and opening up of other branches within the major cities of the country.
This business targets the rich, poor and the middle class individuals who seek to be associated with the values of prestige. Every man would like to maintain a certain style of his hair. The market of the hair cutting services is assured since all men have to seek these services regardless of their status in the society. The young generation is highly associated with the aspects of beauty and thus the pedicure and manicure services are targeting this group. Musicians and celebrities will also seek these services and they form another target group for the business. The massage services are associated with the rich and the middle class citizens. This group of citizens will always seek relaxation services particularly after a hard day work.
For those who take drinks, the business offers a joint for them. When these clients come to purchase drinks, they will also be influenced to have the beauty services.
The economic stability of the beautification industry has been on the increase over the past. The market becomes more stable as the disposable income among the individuals within the economy increases. Although the population of men seeking beauty products and services is not significantly large compared to the ladies, there has been notable increase in the population of men seeking these services. Studies that have been undertaken indicate the need for faster and effective services. The trend has been so due to the existence of limited time and people seeking faster and economical services (Hamermesh 2011). This has developed the need for the business to provide all services in one location. Customers have become more educated over the years, therefore, resulting to an increase in the demand of quality services. The market coverage for the business will be the city of Guildford and the communities that are surrounding.
The men’s beauty salon wants to identify itself as the business that offers the most quality services and products among the competitors. Most of the other existing beauty services only offer one or two services. The proposed business will offer several services and products hence creating a competitive nature of the business. Research that has been done indicates that customers suffer frustrations from having to acquire beauty services from different stalls. Although the core role of our business is to offer beauty services to the men, the presence of the bar will cater for the needs of the adults who may need to drink (Gearhart 2005).
Our prices and services are consumer friendly to ensure the business attracts and retains new customers in the business. The business room will have television installed to ensure our clients are treated with some form of entertainment as they are serviced.
The field of beauty salons has been highly exploited with the objective of satisfying the needs of ladies. Ladies have been associated with the issue of beauty having to incur a lot of costs just to achieve a desired physical outlook. Ladies have also been associated with prestige and pride and hence the need for beautification to maintain this value. In this regard, most of the investors and business persons in this field have been targeting ladies. However, the trend is now changing with men and mostly those of high prestige wanting to achieve the beautification products. The proposed business takes advantage of the unexploited market and hence there is guarantee of success for the proposed business.
The business is expected to be the pacesetter of other businesses that are existing in this field and that are likely to emerge. The management of the business will ensure delivery of valuable services to ensure this prestige is maintained.
The form of advertising for this business will be the kind of word of mouth advertising. The best marketing tool for this business will be the satisfied customers who will deliver the information to the potential clients. We have to ensure the client’s look after the services is attracting and hence he broadcasts the business and the quality of services and products. The services delivered will ensure retention of the existing customers.
The business will not undertake major advertising campaigns. Research indicates that the best form of business advertising of this kind is the word of mouth. However, there will be special offers that will be given to our existing customers. The new customers will be offered some discounts which serves as an incentive to retain them. As the business expands, more advertising strategies will be developed like the use of fliers and billboards. This form of advertising ensures that the business reaches for a larger market. The advertising budget of the business will cost an approximate value of 1% of the sales received.
The growth and advancement in technology will play a critical role in the advertisement strategy of the business. With the higher expected growth in the future, businesses are required to develop new strategies of advertising. In the future, the proposed business is expected to take advantage of the internet services in undertaking promotional services of the business. Use of the social sites and the websites will be encouraged. This will serve to reach the young and educated generation who also forms part of the target population.
All the products required in the business will be purchased from the major supplier of the beauty products within the city. Until the establishment of credit rating, all the purchases will be done on the basis of cash on delivery. Once the credit rating has been established, the servicing of the credit account will be done on monthly basis. Items like drinks that are not found in the beauty shop will be purchased from the relevant wholesalers within the city (Rhode 2010).
The location of the beauty salon will be on one of the busiest street of Guildford city. This will ensure accessibility by most of the clients. The strategic location of the business enables access from the various parts of the city. The business space fro the salon will be rented.
Initially the beauty salon will have to employ a receptionist. The receptionist will serve the role of welcoming customers as well as receiving payments fro products and services delivered. Financial manager will also be necessary in ensuring proper management of the cash inflows and cash outflows. The business will employ five beauty specialists at the beginning but will engage more as the business grows. All the employees will be on contract basis apart from the financial manager and the receptionist. Commission will be paid to these employees based on the revenue generated by the business. There will be regular training of the employees to ensure they have skills and knowledge of the existing and upcoming products in the market. at the later stages of growth, the business will create a benefit package for the employee. The benefit will include vacation and health facilities.
The business will also offer indirect employment to the citizens. The increased market of the beauty products implies that the producers have to produce more of the products. This calls for increased workforce within the industry.
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Regulations and Legislation
The operation of the men’s beauty salon will be based on strict guidance in regard to dress codes and health requirement. Punctuality is supposed to be observed by all employees and observance to the business program. The employees are expected to be polite and show respect for the customers.
The business will have to acquire business permit from the relevant government authority. This will ensure that the business is legally in existence. Since the business will have a drinking joint, acquiring of license is a must. The business will seek the license of operating the bar.
The business will require several kinds of insurance policies. Insurance ensures security of the business as it incurs the losses suffered by a business in cases the business experiences the insured risk. The men’s beauty salon will have to buy certain policies to ensure security of continued existence. The business will insure against fire, fire, and liability (McKeever 2002).
To start the operation of this business, the various financing needs of the business have to be met. These costs relate to the operating expenses of the first month of inception and the working capital required setting off the business. The financial requirements of the business are as indicated in the following statement.
|Subscriptions, professional fees/dues||$50|
|Repair and Maintenance||$250|
The business is expected to achieve an increasing growth after its inception. The revenues generated from the business are expected to increase progressively in each year of operations. The graph below indicates the projected growth of the business in terms of the revenue generated by the business.
The above financial forecasts indicate the prospective growth the business expects to achieve for a period of three years. The trend is expected to continue with the opening of more branches within the major cities of the country. The above values of revenue given are just but forecasts of the cash outflows and inflows. Changes may occur according to changes in other factors that are external to the business. The trend of the economic growth of the country may act favourably to induce increment in the revenues generated (Young 2007).