Business Plan Assignment sample

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Introduction - Business Plan

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The Herbal Beauty Salon (HBS) creatively satisfies the need of customers regarding organic beauty products. It aims to revolutionize the beauty and health sector by providing herbal therapies in an environmentally friendly setting. There is a big need in the beauty and health sector for natural, environmentally friendly cosmetics products. Remedies to synthetic items, which may be detrimental to the environment as well as customer health, are becoming more and more popular. By providing a variety of herbal cosmetics, encouraging healthy beauty improvement and wellness, while minimizing the utilization of harmful chemicals, HBS will close this gap. The remedy is to open a specialty HBS with an emphasis on sustainable practices and client education, providing natural remedies and products.

A wide range of customers, involving men as well as women of every generation make up the intended market. The company will divide the market into niches according to gender, age, lifestyle and kind of skin as well as hair in order to offer specialized herbal remedies. Target customers who are concerned about their health, the environment, and distinctive natural beauty treatments. By emphasizing herbal cures and eco-friendly practices the firm will set itself apart in the extremely competitive health and beauty sector. This has examined major rivals like Beautification as well as Rock 'N' Beauty Salon and found ways to outperform them by focusing on natural items, eco-friendly operations & consumer education.

The management group brings together a wealth of manufacturing expertise as well as entrepreneurial know-how. With an education in business management and herbal remedies, the company's founder as well as CEO has established and overseen successful businesses selling herbal health products. The CMO is an experienced advertising expert within the beauty business, while the COO offers over ten years of expertise in the health and beauty sectors. Every team member's dedication and accomplishments are reflected in the ownership hierarchy. By encouraging sustainability, overall wellness, and the development of organic beauty, the HBS is prepared to upend the beauty as well as the health sector. It has the ability to become the primary resource for anyone looking to experience the advantages of natural beauty in an organized manner because of its distinct vision, well-trained management staff and emphasis on client education.

Management Team's Entrepreneurial Expertise

CEO and founder

Being an entrepreneur and driven company owner with a solid background in natural health will help in meeting business objectives. Educational history consists of a master's degree programs in herbal medicine and a Bachelor of Business Administration degree. The foundation of the HBS endeavor is this special mix of credentials. This provides a thorough awareness of company operations and a deeper knowledge of herbal treatments.

During this entrepreneurial adventure, he founded and oversaw two businesses that produced herbal health products, both of which had significant market dominance and were profitable (Santos, et.al, 2019). These endeavors provided priceless insights into client pReferences, supply chains, and the herbal and health industries. Protecting alliances with regional organic suppliers, expanding the product line, and forging a unique brand presence in the herbal well-being market are examples of accomplishments. These encounters have sharpened my aptitude for seeing market gaps as well as coming up with workable solutions for them.

Co founder and Chief Operations Officer

The new business COO has worked in the beauty as well as health sector for more than ten years, most recently as an Operations Manager for a well-known spa chain (Lahiri, et.al, 2019). They thrive at managing teams and streamlining operational procedures, which raises client satisfaction and boosts income. They hold an education in business administration. Their knowledge is essential to the regular operations of the new venture. 

CMO (chief marketing officer)

The novel venture CMO has a background in health company promotion and an education in marketing. Prior positions at an herbal beauty firm entailed developing successful marketing strategies, increasing brand recognition and fostering client interaction. Their knowledge will help us position the salon as a unique herbal beauty center.

Venture ownership structure

The new business's structure of ownership gives the entrepreneur 60 percent equity, along with the COO as well as CMO each owning 20 percent of the firm.

The organization is in line with what every member has contributed. The CEO contributes vision, knowledge of herbal remedies, and business acumen. Operational/marketing abilities and industry understanding are added by the CMO and COO. For the HBS, this well-balanced arrangement promotes shared accountability and long-term achievement (Lazar, et.al, 2020).

Market and Competitive Industry Analyses

PESTEL Analysis

Political- The United Kingdom’s political climate is typically stable, which is advantageous for conducting a company. The government’s emphasis on protecting customers and sustainability fits in nicely with the idea of an HBS. Nonetheless, it is crucial for the beauty sector to adhere with regulations regarding protection and hygiene requirements.

Economical- The economic situation of the UK is diverse and somewhat robust and there is a rising demand for wellness and cosmetic treatments (PESTLE Analysis, 2023). The beauty as well as wellness industry has demonstrated resilience in the face of economic changes.

Social- Organic and environmentally friendly beauty items and services are becoming more and more popular within the UK. This style is in line with the focus we have on natural as well as herbal treatment at the salon.

Technological- This may use developments in beauty technology, such as the creation of herbal products, to improve its services as well as item line. Technology helps with scheduling appointments and marketing as well.

Environmental- There is a growing market for organic as well as environmentally friendly method due to the growing awareness of the adverse ecological impacts of conventional beauty items.

Legal- It is crucial to abide by the laws and moral principles that govern the beauty business. Compliance with data protection legislation is crucial for the handling of consumer information.

Porter's Five Forces

Threat of new entrants- One obstacle to participation in the organic beauty market is the need for large capital expenditures and highly qualified employees. Older rivals have a stronger market position because of their well-known brands and devoted consumer bases.

Bargaining power of suppliers- Salons that specialize in natural beauty have a reasonable amount of negotiating leverage with suppliers of goods and services. Minimize the threat by expanding its sources and building good connections with the vendors.

Bargaining power of buyers- Consumers have a moderate amount of bargaining power, which is impacted by their decisions due to price sensitivity as well as the accessibility of other options within the beauty business (Bardos, 2020).

Threats of substitutes- Conventional salons as well as over-the-counter items pose a threat to HBS. In order to reduce the impact of alternatives, it is imperative to highlight distinctive herbal remedies and inform customers of their benefits.

Competitive rivalry- The beauty sector within the UK faces moderate rivalry from both well-established market giants and specialized companies. Its differentiation approach sets us apart in the industry by highlighting our herbal and environmentally friendly items.

Target market

Young people to the elderly seeking organic as well as natural beauty treatments are expected to be among the varied clients served by the HBS, which will include both men as well as women.

Market segmentation- HBS will segment its customers on the basis f age and gender (both men and women). Age groups such as young adults (18-35), adults (36-55) and elderly people will be the main customers of HBS. The salon takes into consideration the lifestyle choices of those who are healthy and search for environmentally friendly beauty products. To further cater to various skin as well as hair kinds, the salon will also provide personalized herbal treatments.

Targeting- The salon's primary clientele will consist of those who are interested in herbal beauty products, are ecologically sensitive, and are health-aware (Dess, et.al, 2021). Unique skin as well as hair demands will determine the customized treatments that are delivered. In order to attract more customers and attaining business goals differentiated targeting strategy will be followed. On the basis of this, varied marketing mix will be drafted for enticing decision making of customers.

Positioning Strategy- HBS will become the go-to option for comprehensive herbal beauty & health services. It will set itself apart by providing a premium selection of herbal items, encouraging environmentally conscious, sustainable business practices, exhibiting proficiency in herbal medicines, organic beauty items and placing a strong emphasis on educating clients about the advantages of organic beauty.

F. Business Sales and Operations Strategy

General approach to operations

The HBS will run its business with a sustainable and smooth client experience at the heart of its comprehensive strategy (Seeling, et.al, 2022). This method promotes well-being and organic beauty development by offering a variety of herbal beauty treatments customized to each customer's requirements. Sustainability is going to be a fundamental component of operations, emphasizing the use of environmentally friendly goods, environmentally friendly technology, and herbal substances. The group will place a high priority on educating customers, informing them of the advantages of natural beauty, and making tailored suggestions. Tight quality control procedures will guarantee dependability and superior service performance.

Sales plan

A combination of in-salon treatments, retail natural product sales, and an internet store will be part of the sales strategy (Shad, et. al, 2019). Offering bundle discounts, loyalty plans, and seasonal specials is how an entrepreneur draws in and keeps clients. The marketing plan to boost sales is going to involve influencer partnerships and wellness-related events.

Business location

The North Laine salon site in Brighton and Hove, England, was picked with purpose because of the area's active and healthy population. The region is well-known for its multicultural population and commitment to the environment, which makes it the perfect backdrop for the sustainable and natural beauty approach.

Facilities and equipment

In keeping with its herbal and environmentally conscious values, the salon will provide a calming and natural atmosphere (Dittfeld, 2021). The new business will spend money on sustainable furnishings and décor, natural skin care items, and cutting-edge herbalist beauty equipment. Additionally, individual consultation spaces, treatment spaces, and shop spaces for herbal items are all part of the new company facilities.

Key milestones

Prioritizing community involvement and obtaining insightful early client input. The Salon will begin the process with a test run at its initial North Laine site. To increase its reach, the salon will immediately introduce its e-commerce portal. Another salon in Brighton and Hove is planned, subject to market conditions and demand (Abhayawansa, 2021). In addition to pursuing accreditation for sustainable practices, the company entity plans to gradually expand into other parts of England, taking into account market research and growth possibilities.

Legal form

The limited liability company (LLC) structure is what this business organization has chosen for this Salon. The advantages of a dynamic managerial structure and limited liability protection are combined in this regulatory form (SAMOUCHE, et. al, 2019). It permits effective administration and tax versatility while guaranteeing the protection of the owner's private assets. As the firm looks for possible investors and plans to expand, the LLC form provides the necessary legal structure to run the company effectively and safeguard investors' as well as founders' rights.

Business Financial Strategy and Risks

For meeting financial requirement personal saving and bank loan source will be used. By using own funds approximately (150000 GBP) business entity would become able to initiate business operation & activities effectually. Further, entrepreneur will take loan of 120000 GBP @ 5% interest rate. Moreover, banks always prefer to give financial assistance to the organization which is highly growing (Park, 2020).

Start-up cost

Income statement

Cash flow statement

Referring above financial assessment, it can be stated that business entity will get positive return over the time frame. On the basis of this, concerned business idea or plan is feasible in monetary terms.

REFERENCES

Books and Journals

• Abhayawansa, S. and Adams, C., 2021. Towards a conceptual framework for non-financial reporting inclusive of pandemic and climate risk reporting. Meditari Accountancy Research, 30(3), pp.710-738.
• Bardos, K.S., Ertugrul, M. and Gao, L.S., 2020. Corporate social responsibility, product market perception, and firm value. Journal of Corporate Finance, 62, p.101588.
• Bigelow, L.S. and Barney, J.B., 2021. What can strategy learn from the business model approach?. Journal of Management Studies, 58(2), pp.528-539.
• Delic, M. and Eyers, D.R., 2020. The effect of additive manufacturing adoption on supply chain flexibility and performance: An empirical analysis from the automotive industry. International Journal of Production Economics, 228, p.107689.
• Dess, G.G., McNamara, G., Eisner, A.B. and Lee, S.H.S., 2021. Strategic management: Creating competitive advantages. McGraw-Hill.
• Dittfeld, H., Scholten, K. and Van Donk, D.P., 2021. Proactively and reactively managing risks through sales & operations planning. International Journal of Physical Distribution & Logistics Management, 51(6), pp.566-584.
• Doole, I., Lowe, R. and Kenyon, A., 2019. International marketing strategy: analysis, development and implementation. Cengage Learning.
• Johanson, U., Aboagye, E. and Yao, J., 2022. Integrating business model for sustainability and performance management to promote occupational health and safety—A discussion of value. Frontiers in Sustainability, 3, p.950847.
• Lahiri, A., Pahnke, E.C., Howard, M.D. and Boeker, W., 2019. Collaboration and informal hierarchy in innovation teams: Product introductions in entrepreneurial ventures. Strategic Entrepreneurship Journal, 13(3), pp.326-358.
• Lazar, M., Miron-Spektor, E., Agarwal, R., Erez, M., Goldfarb, B. and Chen, G., 2020. Entrepreneurial team formation. Academy of Management Annals, 14(1), pp.29-59.
• Park, H. and Kim, J.D., 2020. Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1), pp.1-25.
• Paul, J., 2020. Marketing in emerging markets: a review, theoretical synthesis and extension. International Journal of Emerging Markets, 15(3), pp.446-468.
• Radic, M., Herrmann, P., Haberland, P. and Riese, C.R., 2022. Development of a business model resilience framework for managers and strategic decision-makers. Schmalenbach Journal of Business Research, 74(4), pp.575-601.
• SAMOUCHE, H., EL BARKANY, A. and EL KHALFI, A., 2019. Performance of Sales and Operation Plan: Literature review & Perspectives of improvement. ICAMOP journal, 1(1), pp.47-53.
• Santos, S.C., Morris, M.H., Caetano, A., Costa, S.F. and Neumeyer, X., 2019. Team entrepreneurial competence: multilevel effects on individual cognitive strategies. International Journal of Entrepreneurial Behavior & Research, 25(6), pp.1259-1282.
• Seeling, M., Kreuter, T., Scavarda, L.F., Thomé, A.M.T. and Hellingrath, B., 2022. The role of finance in the sales and operations planning process: a multiple case study. Business Process Management Journal, 28(1), pp.23-39.
• Shad, M.K., Lai, F.W., Fatt, C.L., Klemeš, J.J. and Bokhari, A., 2019. Integrating sustainability reporting into enterprise risk management and its relationship with business performance: A conceptual framework. Journal of Cleaner production, 208, pp.415-425.
• Varadarajan, R., 2020. Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, pp.89-97.

Online

PESTLE Analysis. 2023. [Online]. Available through: < https://www.indeed.com/career-advice/career-development/what-is-the-pestle-analysis>