Business Plan | Assignment help
INTRODUCTION
Salon Loop is a healthcare services provider that allows the senior citizens, business women and college girls to have their healthcare and makeup needs satisfied at their doorstep in Melbourne, Victoria. Salon Loop serves the senior citizens, business women and teenagers and accepts the appointments over website, phones or android/iOs application. Salon Loop also sells retail healthcare products to its customers while serving the entire family in one quick and convenient door visit. While there are several Salons and makeup stop shops, Salon Loop will excel due to its focus on providing healthcare and grooming services at door step with superior customer service. Through unheralded customer attention, Salon Loop is likely to gain market share as its services are for senior citizens and business women who do not get enough time or resources to drive all the way to salon locations. Lastly, Salon Loop will allow it to attract a lot of customers through mobile application and online appointments.
MISSION
“To supply healthcare services and products that enhances our client’s physical appearance and mental relaxation”.
PRODUCTS/SERVICES
Salon Loops offer the following services at the door step of clients:
- Hair: cuts, makeovers, reconstruction, shampoo, conditioning, curling, straightening, perms and dye
- Nails: manicure, pedicure, polishing, sculpting and nail art
- Skin care: body waxing, face waxing, polishers, massage, threading and facials
- Range of organic products to be sold directly to clients
EXECUTIVE SUMMARY
Salon Loop is a healthcare services provider that allows the senior citizens, business women and college girls to have their healthcare and makeup needs satisfied at their doorstep in Melbourne, Victoria. Salon Loop also sells retail healthcare products to its customers while serving the entire family in one quick and convenient door visit. The Beauty Services Industry in Australia has expanded exponentially in past five years. The rising demand for the beauty and healthcare services has propelled in Australia due to higher discretionary income and growing population. The beauty services industry revenue is expected to increase by an annualized 2.0% over the five years through 2017 to reach $4.8 billion. According to IBISWorld (2017), 39% of all beauty treatment demands come from hair cutting and hair care services segment. The customers are getting haircut, hair color and other beauty services at bricks and mortar salons. In order to attract the customers, Salon Loop will have to give customers a reason to change. In this case, the reason to change is “getting beauty services at door step”. Salon Loop will also use mobile technology through offering mobile apps over which customers can book appointments and level of services needed. The designing of salon bunker and provision of services will be provided in-house. Salon Loop will have to comply with Cosmetic Compliance and Safety Law of 2014 and Australian Consumer Law. Since beauticians are making use of compounds and techniques that need special skills and may entail risks for clients, they are shouldering even more responsibility. The beauticians are ethically liable to let their customers know about the risks of a treatment before starting it. With mixed blend of perfect human, financial and technical support, Salon Loop can quickly gain market share in the current industry.
FEASIBILITY ANALYSIS
Feasibility analysis allows the entrepreneur to determine if the proposed business plan examples is technically and financially viable (Currie et al., 2009). It is also used for assessing the strengths and weaknesses of the proposed business idea and presents the directions of activities in order to improve the project and achieve the desired results out of proposed business idea. The report will outline the market, technical, human and financial feasibility of Salon Loop.
Market Feasibility
The Beauty Services Industry in Australia has expanded exponentially in past five years. The rising demand for the beauty and healthcare services has propelled in Australia due to higher discretionary income and growing population (IBISWorld, 2017).
Market Size and Growth
The beauty services industry revenue is expected to increase by an annualized 2.0% over the five years through 2017 to reach $4.8 billion (Euromonitor, 2017). The projected revenue is to improve by 0.4% in the current year. Currently there are over 21,949 businesses beauty service salons operating in Australia while no companies have a dominant market share in the industry. According to IBIS World (2017), 84% of all women invest in their hair and beauty treatments for themselves. This shows an opportunity for Salon Loop to capture the market share by catering the beauty and healthcare needs of women while sitting at home.
Market Characteristics
According to IBISWorld (2017), 39% of all beauty treatment demands come from hair cutting and hair care services segment. The customers are getting haircut, hair color and other beauty services at bricks and mortar salons.
Source: (IBISWorld, 2017)
PEST Analysis
The PEST analysis allows the entrepreneur to scan through the macro environment in order to check the feasibility of the business venture (Koumparoulis, 2013). This entails the factors that are not in control of company. These include political, economic, social and technological factors. The PEST analysis for Salon Loop is given below:
Barriers to Entry
An important step for assessing the business idea is to analyze the kinds of obstacles that a business faces (also known as barriers to entry) (Caves & Porter, 1997). If the barriers to entry are low, almost anyone can join the industry and compete against established ones. The biggest entry barrier in beauty salon and healthcare service industry includes the following:
- Customer loyalty to existing salons: Since beauty maintenance is a priority for many women around the world, so the businesses tend to build customer base through provision of prime services that solidify the customers’ loyalty(Wei, 2013). In order to attract the customers, Salon Loop will have to give customers a reason to change. In this case, the reason to change is “getting beauty services at door step”.
- New technology in salons’ industry: Beauty and healthcare salons require sophisticated skills and new technology. Use of technology in beauty salons has come a long way in past decade(Brand & Ahmed, 2010). Salon Loop will streamline newest technology and install it into the mobile bunker that can be carried over wheels. Apart from the relevant technology, Salon Loop will also use mobile technology through offering mobile apps over which customers can book appointments and level of services needed.
Technical Feasibility
The designing of salon bunker and provision of services will be provided in-house.
Technology
In order to setup a business venture of mobile salon services, several technologies will be required. Since Salon Loop is primarily a service provider, so it will buy the technology related to hair styling, facial treatments and nail/feet treatments off-the-shelf. There are several suppliers available that deal with beauty suppliers. Salon Loop will buy the technological equipments from Zhav International and Aussie Medi Tech.
Services
Salon Loop will provide the services in-house by having trained beauticians and helpers on the wheels. Salon Loop will bring the best on-demand beauty treatments including the manicures, massages, makeup and hair cut at the door step of its clients. Hence, the services will be provided totally in-house. However, Salon Loop will acquire business partnerships with L’Oreal and other beauty brands to get products at discounted prices.
Sales & Distribution
Salon Loop is dealing with services provision. Apart from the services, it will also sell a line of beauty products to its existing clients ranging from hair care to skin care. The products will also be sold in-house at the spot. The products will be bought from different suppliers and brands who want their products to be marketed.
