Coursework Assignment: Starting a New Small Business - Hair Salon

Starting a New Small Business: Hair Salon
Name
Institution
Date
Present a comprehensive business proposal that address all relevant aspects of business startup
Reasons for your choosing type of business ownership
The proposed business is a hair salon where applicable laws are prioritized when opening the business including licenses, safety and working conditions. Since the economy rebounded, opening a hair salon is one option for self employed individuals as there is growth potential. The hair salon will abide by all regulations focusing on safety, licensing safety and dress codes. It is expected that everyone will treat the clients with respect and be punctual to avoid delay in service delivery. This will create a good reputation and is expected to benefit the hair salon. Other than this, there will be fire, benefit, and liability insurance coverage.
Even with the salon industry being competitive, players still generate profits. Similar to other start up one must look for viable sources of finances and evenassess the cash flows as this show whether the business will be a going concern. Business owners are mostly risk tolerant in comparison to non owners and tend to be more open to the idea of self employment (Brown et al., 2013). To ensure the success of the business start-up there is a need of a business plan and this will address the company’s services, mission, objectives, the hair salon competitive market, operational summary, management summary and financial information
2. Selecting this type of business
The owner seeks to begin operations in hair salon and beauty products, and we will focus on providing quality hair and beauty services. Besides meeting the legal and financial aspects of the business, promotion activities including pricing and location are prioritized to improve revenue. The business will provide all the services in one convenient location. The salon is strategically located in a busy street that is easily accessible from different parts of the town. It is expected that providing support customer service will be vital to increasing the market shares over time. The business is a sole proprietorship, and while the company allows adults and accompanied children, the shampoos will only be used to adults. One of the best promotion and advertising strategies in offering the best services and this spreads by word of mouth that the services provided are superior (Sandlin, 2014, p.186). This is prioritized since the clients will leave the business premises satisfied and more likely to recommend the place to other people.
3. The key goals and objectives for your business (SMART!)
The hair salon will provide affordable hair care, nail and facials services. The business will also attract and maintain customers, and will seek to meet and even exceed to the customers’ expectations.
* To increase customers by 10% in each of the first three years of operation through providing quality services and promotion activities
* Support a sustainable business that is open to employees from different backgrounds with experience and skills
* To provide hair care service and improve service delivery and exceed the customers’
4. Human resources
The owner of the hair salon will focus on improving the working environment and managing people and it is expected that this will generate customer satisfaction and a good working environment. The employees have prior experience and have positive reviews from their previous places of work. These will be contract workers, and over time there will training to improve their skills even as they will already be experienced. There will be one barber, two chair stylists as well as a nail and facial technician. The hair salon will abide by all regulations focusing on safety, licensing safety and dress codes. It is expected that everyone will treat the clients with respect and be punctual to avoid delay in service delivery. This will create a good reputation and is expected to benefit the hair salon. Other than this, there will be fire, benefit, and liability insurance coverage.
5. Maintaining the books
To manage the financial details of the business, the I will record and store the financial details electronically, and an accountant will be consulted to reconcile and oversee that the expenditures are properly recorded and utilized.
6. Details of your target market
.I plan on opening a hair salon in a neighborhood where working mothers with children and men, preferably those in the 25-45 age bracket. The hair salon market is competitive, but as families disposable income increase this creates an opportunity, as they will spend more and people increasingly seek many services in one convenient location. The professional hair care market continues to grow with promotional activities having improved the growth and performance of this market. This includes value packages and TV ads. In the case of a small start up like the business, the gift of purchases is viable as is using the internet to target the local customers and create awareness. Conditioners, shampoos and hair styling products are the most popular
7. Results of market research undertaken
Initial market research will be undertaken, by first visiting other salons, their websites and even information in the media. I created an email where potential customers can respond to a survey, and this provided direct information that targeted clients wanted convenience in one location and, competitive prices and good services. This includes focus on whether the location is good as this determines the clientele who visits the hair salon, and whether they are able to visit the location if they have scheduled hair appointments.
1 Pricing the products
The hair salon targets middle class customers and is less expensive than the more exclusive up-scale hair salons. The consumer monetary swing costs for hair salons are low and customers can easily select one salon form another, but loyalty still influences where the customers visit (Bove & Johnson, 2009, p. 188). The business will provide various services that meet the customer needs, focusing on hair, nails and skin care. The salon also targets families as men can get haircuts while women can get their hair done, and services will be offered too those who walk into the premises, and there is emphasis on better customer services
2 Types of pricing strategies
One of the changes in the hair salon market in the recent years has been the need to integrate lean principles. Many customers are tired of waiting for long after appointment having a relaxed customer experiences combined with efforts on improving hair health improves service delivery in the hair care market The pricing decision affects the competitiveness of firms, and the costs that businesses face affect their ability to generate revenue. As more people seek the services from the hair salons the market has expanded and having more than one hair stylist or hairdresser makes it easier to manage operations (Carpenter, 2011, p.22).
3 Main competitors
The main competitors are high end hair salons and those proving services directly to the customers, when they can meet them. One of the issues that need to be prioritized is to ensure that the business becomes more competitive. It is necessary to attract more clients to expand the business by offering diverse services. The customers who get their hair done in one place and beauty services in another pace desire the convenience of getting such services in one place. The case for addressing convenience and competitiveness is that it is possible to get more clients visiting for one or more services (Sandlin,, 2014, p. 65). While there are many hair salons near and high income areas, there is a gap in the market for the easily accessible and yet affordable businesses targeting the middle class people who are young to middle aged. There are many who cannot afford the high-end salons, and would find the new venture convenient for them.
4 Their USPs
The luxury hair salons offer more exclusive services and the other competitors focus on convenience since there is emphasis on meeting the customer needs. . In the case of the location when the salon is rented out it is expected that customers can access the place because of its location.
5 The ways in which your USP better than theirs?
The USP is better since there is focus on convenience targeting both male and female clientele who are not delayed by long scheduled appointments. The services are price competitive and there is emphasis on customer services to improve the salon’s brand, reputation d customer experience. The purchase of hair care products will be on a cash basis, focusing on...