Beauty Products for Healthier Skin & Hair Business Plan Sample

Introduction Of Chemical-Free Beauty Products for Healthier Skin & Hair

Business Description And Value Proposition

Mission

Mission is to enhance the beauty as well as confidence of clients by using talent & skills and high quality organic products.

Justification

The company's mission statement is to provide our clients with the best services that will enhance not only their physical appearance but also their mental health. Owner's main motive is to make the company a well-established worldwide brand in the salon industry. Florae want to be a homely brand for all. Florae want to build an organic culture which will also be environmentally friendly as well. The company's uniqueness lies in its mission only. Instead of using chemical and harmful products, firm will be using organic chemical-free products which are nature friendly as well. Nowadays, there is a great demand for products which are chemical free in nature. Chemical products were not only harmful to our skin & hair but also they are dangerous to our eyes. People having sensitive acne-prone skin are shifting to organic products rather than chemical products. Organic products take us back to our roots. Organic or ayurvedic products are scientifically proven to be best for us. Florae will provide top-quality organic products for skin, hair, and nails which are made just for you (Chakraborti, Dasgupta and Jana, 2022). The products will be paraben, sulphate and chemical free. The products will contain grape seed extract which assessed as very useful for the skin (Sreenivasan and Suresh, 2023). The best part is that our company uses natural products which people who have few allergies can also use. This is the reason why our company is different from all.

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Legal structure

The legal structure of the company will be private. Florae Salon is a privately operating company. As an inspired entrepreneur, want our salon to be beneficial for all. Florae wants to build opportunities for others by giving them employment so that they can showcase their talent and skills. Also, they will be financially independent. Being an entrepreneur of the salon believes in teamwork, the functionality will depend on each other. Our work will go hand in hand. As the sole owner of the company, Entrepreneur will be responsible for every decision-making. Every role in the company will be provided based on skills and knowledge so that the salon could serve the clients the best services. Another important factor is that as a sole owner, the entrepreneur is always involved in every decision- making and it is his/her responsibility to support the business plan and check whether the company is running profitably or not.

Target market and industry trends

The target market of the company is upper class, middle class, and teenagers. The chosen target market is very well aware of organic products and their benefits. People are health conscious and they want to apply those products which are not harmful (Handayani, and Agustina, 2022). Also, organic products are a little bit more expensive than chemical products which not everyone can afford. The industry trend in the beauty salon is that this industry uses AI technology for treatment. The use of a laser for hair extraction is one such example. Growing awareness among people about using cruelty-free products is the main reason for the industry trend.

PRODUCTS AND SERVICES

Service Offerings

The salon's location is set to be very convenient for all the clients. Salon will be located in the heart of the city so that clients can easily reach. If by chance they cannot come to the salon, at that moment owner will also provide home services as well.

Our products are natural and do not give any side effects on the skin after being used. The salon will be using products which are derived from the roots of nature. The products will be paraben, sulphate and chemical free. Usage of grape seed extract in our products which is very useful for the skin (Oktariani, Ramadanti, Purba, 2020) The best part is that Florae uses natural products which people who have few allergies can also use.

The salon also provides different services according to the need of the client. The salon provides services like skin care, hair care, peppermint services, makeover services, etc. The business entity also appointed a dermatologist who comes every Saturday of the week so that our clients could talk to him regarding any issue or problem they are facing. The salon will provide world-class services to the clients (Lavuri, Jabbour, Grebinevych and Roubaud, 2022). The salon studies the ongoing trend happening in the beauty industry. By following celebrities who are involved in promoting organic beauty, we formulate our services accordingly. Also, Florae will be using products which are meant for all skin types regardless of skin tone. The salon provide the following services to our clients:

Manicure and pedicure

This is the second most demandable service the salon provide after facial treatment. Florae will use creams for the hand and foot which are moisturizing and have a soothing effect on the body. It will also give nail color options to the clients which they can choose. The salon use products which are used by celebrities as well.

Skincare

Business entity will also provide skin care treatments which include exfoliation and acne treatment. This is the foremost and the most demandable service of the salon (Lee, and Kwon, 2022). To maintain healthy, nourished, and brighter skin Florae will use high-quality products which are made by the team of experts. The facial treatments also include hair bleaching as well. The skin care tips will make your skin glow, also you can get a free consultant from us whenever you need.

Haircare

Hair care is an important part of beauty care. Good hair will not only make the appearance good but it will also impact overall health. It is very important to maintain our hair and scalp. The hair care comes with a powerful package which includes hair cutting, blow drying, hair spa, and keratin treatment (Lavuri, Jabbour, Grebinevych, et.al, 2022). The salon also provide hair wigs to our clients which are made from 100 per cent natural hair.

Waxing

Waxing is another beauty service which is preferred by our clients. Florae use natural wax which is made from beeswax and is pure no harmful chemicals are mixed. The clients can choose which type of wax they want to be applied to their body (Welter, Scrimpshire, Tolonen, et.al. 2021). Another thing is that the salon have laser hair removal facility also which is done by our experts. Florae use the best technology and equipment which are imported from abroad.

Body massage

The salon provides relaxing and calming body massages. Our massage experts are trained in their profession. The salon offers different types of massages such as hot oil massage, hot stone massage, Swedish massage, sports massage, aromatherapy massage, trigger point massage, deep tissue massage, and reflexology (Díaz-Santamaría, and Bulchand-Gidumal, 2021). All the massages are at reasonable prices and will improve your blood circulation, relieve external pain, boost your energy, and make you active. If in any case, the client is not able to come to the salon we also provide home services as well. All you need to do is just take an appointment and give a date & time according to your suitability and our expert will reach out to you.

Our salon has different types of revenue models:

Subscription model

Florae provide subscriptions to our clients. Our subscriptions include monthly packages. Our monthly subscription starts from 1 month, 3 months, 6 months, and 12 months. Different packages have different services. All packages have services like skincare, hair care, and waxing. With an increase in time & money, the services also get increased. The most recommended package from our side will be of 3 months and 12 months (Nuseir, Aljumah, and Alshurideh, 2021).

Salon's gift cards

The business entity provide gift and promotion cards to the customers. Salon's daily customers will get an extra discount if they buy these gift cards. The salon have an app for the clients called FloraeForYou, the app is available on the play store and ios. With this app, the clients can track their gift card sales and can do payments as well.

Payment system

The payment system of the salon is very simple. We accept both cash and cards. Also, the salon provide its clients with a platinum card of the salon which they can use to avail the services at our end. (Dijkstra, van Beukering, and Brouwer, 2021)

Marketing Plan

Marketing mix

The 7ps of our salon's marketing mix are:

• Product:The salon offers a variety of services. For providing those services the salon have a team of experts like trained barbers, a shower facility, hair loss therapy, a comfortable waiting room, a separate section for grooming, a separate styling section, etc.
• Price:Penetration pricing strategy will be undertaken by Florae with the motive to build high customer satisfaction and loyalty. Meanwhile, at initial level services will be offered at lower and highly reasonable prices.. Everyone can afford it. The firm offer different kinds of discounts like friend discounts, family discounts, weekend discounts, etc. Firm also offer packages to its clients (Fichter, and Tiemann, 2020). These include wedding packages, daily customer packages, and monthly packages as well. With the help of these discounts & packages, the customers get the best deals and best services.
• Promotion:Florae wants to target the people who are living nearby the salon. To create awareness business entity will be using posters, banners, social media marketing, leaflets, newspapers & magazines. Moreover, all type of customers is highly active on social sites. Thus, by advertising services on Facebook, Instragram etc firm would become able to attract large audiences. The company also gives free haircutting in the initial week of our salon opening (Woehler, and Ernst, 2023).
• Place:The salon will be opening our salon at street 9 of Birmingham Gay Village which is a porch area. Along with this, customers can also book services through the means of company's website. There are many salons existing in this area but all these salons are missing separate waiting rooms and our salon has this so it will attract the customers.
• Process:The delivery of every service the salon provide is a gradual and smooth process. The clients get satisfaction only if the process of providing any service is good (De Regt, Montecchi, and Lord Ferguson, 2020). The process includes hygiene & safety we make sure that all the tools used are cleaned properly before use. The salon also focus on the quality we give to our clients.
• People:The motto of giving customer satisfaction works in a two-way process. Firm's experts give suggestions to the clients. Giving suggestions helps the customer to decide what his needs are and what exactly he wants. The clients are free to give feedback as well after getting the services. Clients can put Google reviews as well (Aljalahma, and Slof, 2022).
• Physical evidence:The salon is very spacious. We have used light colours and an eye-catching interior & exterior design to create a homely atmosphere. The team members and experts are dressed in a proper uniform so it will give an impact of professionalism. The salon also provide a proper digital bill receipt to our customers.

Segmentation, targeting and positioning (STP) approach

• Segmentation:For getting success in the competitive business arena, customers will be segmented on the basis of demographic and psychographic aspects. Florae segment the market on the basis of age, income, personality and lifestyle aspects. The firm target both males & females who are aged between 20-56. The rationale behind this young age people prefer unique look for showing luxurious lifestyle in society. Further, in UK, ageing population is increasing with the very high pace which is more concerned towards their beauty and look. Thus, by targeting these customers owner can fulfill business goals. According to income, the target is upper-class and middle-class income people. These people focus on quality, price, and loyalty. These people are more conscious about their health so business entity will use only natural products.
• Targeting:Business entity will use a differentiated targeting strategy. By using this, the salon can easily segment the market according to its size and purchasing power of the clients. As Florae is targeting teenagers and young fellows who use social media, Florae will target them by using social media marketing (Nazari, Taghavi, Valizadeh, et.al, 2021). The firm will also give special student discounts on student IDs to attract them.
• Positioning:The quality, price, hygiene, trained staff, and separate waiting & grooming room will create a strong image in the minds of the clients. We have focused on creating a peaceful environment for our customers. The differentiation between our salon and other salon lies in the quality of the products used. Florae use high-quality products which are made naturally. Another thing is that the firm has a team of experts who are very well trained in their job.

Operational Plan

Suppliers

The salon gets all the secondary products, tools, equipment, and furniture from different dealers based in Mumbai. Firm gets the raw materials like beeswax, flower extract; massage oil, etc. directly from the farmers. The business entity needs good furniture for making our customers comfortable. Salon has comfortable chairs in our waiting room, beds, tables, and others in our salon. Florae are connected to the farmers for getting the raw materials which help the salon to maintain its identity of keeping natural products. The salon has a wide range of grooming machinery which is imported (Varma, and Dutta, 2023).

Production

The firm believes in perfection in our products and services. The salon offers services which are priced competitively according to the market trend therefore it reduces the chance of not bringing the clients into the salon. The main differentiation lies in using all-natural & pure products with the highest quality. The ingredients used are pure, organic, and naturally extracted so this creates a huge difference. Before serving the clients, every product goes through a quality check process. This makes our clients believe in the quality assurance that our salon offers. This also helps in maintaining the standard of the salon (Leelavathi, 2020)

Facilities

The business entity offers a wide variety of services in our salon. It includes all the packages, gift cards, promotions, daily customer discounts, home services, free haircuts, and many more. The customers can visit our salon for the whole week. They also get to meet the dermatologist every Saturday to discuss their concerns (Secundo, and Capaldo, 2020). The wedding packages and weekend packages are most preferred by our clients. To enhance for salon experience we offer hair spas, body spas, and steam baths. The massage experts are well-trained to give our clients the most relaxing experience. Florae have expertise in hair styling and coloring. According to the customer's face length and hair type, our experts style their hair. For coloring, we use high-quality colors that are not harmful to the hair.

Equipment's

The requirement of the salon and availability of experts to run the services helps us to find the best equipment for our customers. Every piece of equipment helps in building the physical appearance of the salon. Not only hardware we require software also like the app which we have built for our customers to book online appointments, schedule time, pay money, etc. Equipment includes

• Salon facial machines (ice roller, skin scanner, facial vaporizer, facial steamer, ultrasonic skin scrubber),
• Beauty salon chairs (shampoo chair, dryer chair, styling chair),
• Hair styling tools (hair accessories, hair curler, hair dryer, hair straightener, professional scissors, detangling brush, hair sculpting tool),
• Beauty beds: Premium beauty beds help in keeping the client happy by giving a peaceful experience. It gives a comfortable and relaxed mode to the customers. For doing facial massage and waxing a comfortable soft beauty bed is essential (Silva, Ghezzi, Aguiar, et.al, 2020).
• Trolleys: A salon trolley is one of the most important pieces of furniture equipment. It helps hair stylists to keep all the tools with them in one place without creating any mess. It is a way to keep things organized which can be easily sorted (Matovi?, 2020).
• Electric massage beds: The electric massage beds are multifunctional beds which include a roll holder, a foot lever, a stopping lever, interchangeable armrests, and a rotating. It can be converted into a chair from a bed easily. It is also very adjustable.

Inventories

The firm has an inventory to keep the stock in a safe place. Firms keep ordering the tools and equipment required at the salon to keep them in one place the salon have a huge inventory located at the backside of the salon. Another reason for having an inventory is that the salon is selling our products too to our clients like shampoos, hair colors, and machines like hair cullers or hair straighteners. For selling purposes, the salon needs to manage the inventory so that the salon is never out of stock. The salon needs to stock things in bulk to meet the demand of the client. Thus, for ensuring prominent stock management economic order quantity method will be used which in facilitates uninterrupted services.

Management And Organisation

Staff roles and responsibilities

In order to manage operations successfully, autocratic style will be followed by business. Thus, staff will follow all the instructions and decisions taken by the team of higher management. Further, feedback and loyalty scheme strategy will be adopted for managing competent relationship with customers. This in turn ensures customer satisfaction, loyalty, word-of mouth publicity, maximization of sales and profit as well. Specific waste and recycling strategy will be undertaken by Florae with an aim to ensure ethical & responsible behaviour.

Financial Plan And Projection

The finance is referred to as the money which is required to run the business successfully. Without the use of finance, the work cannot be accomplished and it is very crucial for successful working of business. In setting up the new herbal salon the use of finance is very important as it will provide money to the business to run its operations successfully.

Start-up funds

Hence, for starting up the business funds must be arranged from different sources so that they can be utilized properly and business needs can be met. There are different sources of funds which can be used to gather money for running the salon easily (Lusardi, 2019). These different sources of funds for the salon are as follows-

• Debt capital- this is a source of funds in which the company will be borrowing money from other companies or banks and financial institutions. This is a source wherein a salon can borrow money from others and against that they will have to pay some interest on the money borrowed.
• Venture capitalist- this is another source through which the salon can borrow money for running the operations effectively. Within this source of finance, people having more money provide capital for innovative business ideas having a high growth potential. In exchange for the money provided, venture capitalist demands an equity stake within the business.
• Crowd-funding- it is another type of source of funds in which a company can get money with the help of social media websites. Here the new business idea is presented and individuals who are interested pitch for the idea and provide funds to that business. Here different businesses ideas come for funds and some only are selected and because of this, it is named crowd funding.

Funding need

Within business for performing any of the tasks, there will be a requirement of funds. Without the fund, not a single activity can be performed and because of this, enough funds must be present in the company (Setyawan, 2020). For a new business start-up, they must have enough funds so that every activity within the business can be managed. For the new business idea of the herbal salon, at every stage, there is a requirement for business funding. Starting from the initiation phase the money is needed to research the idea and to gather the latest trend. Further, money is required for the research and arranging of the resources necessary for the management of the business. Also, money is needed for effective marketing and promotion of the business so that more people become aware of the services provided by the salon. For all these needs the business requires money and in case enough funds will not be present then this will be affecting the efficiency of the business to a great extent.

Projection of financial statements

The prediction of the financial statement is very crucial for the reason that it will guide the company that how they have to allocate the funds within different expenses so that more income can be generated.

Projected income statement

Projected balance sheet

Projected cash flow statement

With the evaluation of the projected financial statements, it is clear that in year 1 performance of the company will be moderate. But in the year the performance of the company has increased to a great extent. This simply means that as the business operates, gradually the sales and profits increase which is good for the business. Now the salon can save money and these retained earning can be used by them for future work and investment.

Evaluation and control

Benchmarking technique will be used for measuring, evaluating and controlling business performance. By setting KPI's related to sales, profit, market share etc firm can do comparison of current performance in against to the standards. In this way, by assessing deviations and finding relative causes business entity can undertake competent measures for performance enhancement.

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Conclusion

In conclusion, the business will expand as more people become aware of the benefits of natural skincare products. The Salon's present corporate approach will prominently display the goods or offerings it provides. It will also contain information on the operating, branding, managerial, and economic plans related to the company concept in question. All these will help in its future growth. Further, it has been articulated from the evaluation that business idea is feasible in monetary terms. It can be seen in the report that, in the upcoming time period, owner will get positive and higher return. Referring this, it can be inferred that concerned idea will prove to be more beneficial for business entity in terms of growth or success.

Recommendations

Online booking services

Florae should improve its online booking services and ensure that time of the different customers do not collapse. If this happens then there will be a huge crowd which is difficult to handle.

Availability

The salon should work every day in the initial days of opening to increase the consumer base. Also, it will help in gaining consumer trust and they will come according to their time so it will become easy to handle them at different days.

Discounts and other schemes

The salon should introduce different schemes for wedding people so that they can get extra bonus. Also, the salon should avail surprise offers on odd days for its customers.

Training to staff

Giving training according to the staff needs is important. This will help in polishing their skills and help them in giving best services to the customers.

References

Books and Journals

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Online

• Revenue of the natural cosmetics market in the United Kingdom. 2023. Online. Available through: < https://www.statista.com/forecasts/1219672/uk-revenue-natural-organic-cosmetics-market >