Business address

Organic beauty

Laurdale Street

125 Maida Vale

London W9 1UR

(b) Personal objectives

There are many advantages and disadvantages when starting a business. In order to start a successful business, I must be in a content state first. Having a possitive engergy and healthy state of mind is essential for managing a big responsibilty a new business brings. Boosting my self-esteem and confidance is very important, this will have a huge impact on my relationship with suppliers and customers. Starting my own business is good for me, this is because I would like to be in control of how I work and make decisions for myself and my business. Managing my own business brings me sense of freedom and leadership.

(c) Nature of the business and USP

This is when a particular feature separates a product from competitor’s products. This can involve lower prices, more features and options, improved version of other products competitors use. To make my business stand out I would offer high quality product and services and affordable prices for my products and services. I would offer customers who are waiting for their turn or appointment free drinks and cookie or free mini facials. I would consider sending e-mails to customers to remind them of their upcoming appointments or about new innovating products they can use at home. I would promote my product by using bold and eye-catching leaflets that highlights the main features and benefit of my products. For my employees I would provide pink uniforms that has the name of the salon on it. this is to attract customers. I would consider playing soft music (nature melody or classic).

(d) Long-term plans for the business

My Long term plans for Organic Beauty:

• To grow successfully
• Introduce new beauty treatments
• Maximise profit
• create my own label beauty products

Below is a diagram which includes some of the actions I should take to make my business a success.

It is very important that I carefully plan how I want to grow. I would introduce new beauty treatments, first I would create a survey and ask my customers and members of the public on which beauty treatment they would like to have access to. I would like to take further training to expand my knowledge around the beauty industry.

(e) Legal status

      I have decided that I will start my business as a sole trader. There are numerous advantages and disadvantages for starting a business a sole trader. The structure of my business will be flat, there will be me and few other employees who will take care of adminstration and beauty treatments.

Here are some of the advantages

• Sole mangement of income, profits and desicions.
• Freedom and indepentance.
• Control of business's fate (how big or small the business may grow)
• close and direct relationship with customers

the disadvantages;

• Higer pressure and stress (when making sure the business will survive and turn into success)
• Lack of motivation and boredom can occur when there are less people working with you.
• Lack of structure (no fix hours and working days and salary)
• Unlimited liabilty (if business goes bust there is a risk of losing personal assets)

(f) Skill(s) of owner(s)

Working in a beauty environment always requires excellent creative skills. I am a very creative individual; I have passion for learning new beauty treatments and hair techniques. I previously undertook a beauty therapy course; this has benefited me for the long run. I was also learned many practical beauty skills. Also I am currently studying a business course, I would like to strengthen my business knowledge by going to university and continue learning different business aspect. I will need to build my confidence as this is most important for my business. My business will solely dependent on customers, therefore confidence is fundamental. In the future I will consider taking studying a beauty course, this is to help me gain more knowledge and insights, this is because beauty changes and I must make sure I stay updated.

self confidence and self-esteem

Working on my confidence and self esteem is essential for my business. In the hair and beauty industry it is vital that the individual is very confident when communicating with customers, suppliers and the general public. How I see my self will reflect on my business. 

(g) Description of market, types and planned number of customers

The area that I have chosen to operate my business in is mainly home to affluent and comfortably well of people and there are few hard pressed people around as well. I am targeting wide range of different backgrounds.

Categories	Group	Type
Wealthy achievers	This group will be 20% targeted. (prosperous executive and thriving families  )	01 – 02
Comfortably well off	This group will be 40% targeted. They are the  cautious pensioners and settled families	27, 33 and 35
Moderate means	This group will be targeted by 30%. This group is made up by Asian Communities and Blue Collar Root	38, 40 and  43
Hard pressed	This group will be targeted by 10%. They are the struggling families and hampered singles	44, 50 and 52

http://www.caci.co.uk/acorn2009/acornmap_ext.asp

(h) Analysis of competitors

The area that I have chosen to open my salon is in Maida Vale. This area is mainly residential; this will be good for my business, only few  salons operate there. Also there is an award winning salon not very far away, the price for their services and products is very high and they target their business to only wealthy achievers.

This will only appeal to affluent people. I am willing to charge at reasonable price that suits most people. I will visit my competitor as a customer to see how they meet the needs and expectation of customers. Also looking at their website to see their customer feedback and what kind of promotions they offer. 

(i) Marketing Plan

Customers will not pay attention to a business that has no marketing plan. It is very important that for my business I plan who I target my products and service also plan how I would promote my business. Marketing plan is a business document that states the business's aims and objectives, strategies and the business's position within the market. My marketing plan will include details of competitors, strength and weaknesses within the market and competitors viewpoint.

(J) Financial forecast

Building a thriving customer and supplier relationship brings success to business. It is important that my relationship with my suppler is based on respect and trust. This will benefit me and my salon. I could ask my suppler for extended credit period (the amount of days before paying) and discounts.  Gaining customers trust is fundamental to my business. This is most important because without satisfied customers my business is unlikely to become successful. I must inform my customers of any new developments, offers, products and services this will make them feel important to the business and well cared for. I would consider making regular customers feel part of my business by starting to build personal relationship; this is where I would get to know my customers personally. Inviting regular customers to launch once in a while will strengthen relationship and trust within the business and me as a stylist. 

(K) Resources needed

Managing a hair and beauty salon require great amount of resources. Finding a suitable building is the most essential part to start my business. There are many types of equipment that I need to help me complete my beauty treatments on customers. I would have to stock many hair and beauty care products, electrical goods and other essentials.

(L) Sources of finance

It is pivotal to have access to money, in order to start and run a business. There are many ways to get money, the most suitable sources are:

·         Own savings

Personal saving is an advantage for entrepreneurs; this will prevent stress and pressure of gathering money from scratch.  Savings can be from previous employments, inheritance, and redundancy. This will be a positive head start for the business and a helping hand also advantage is its interest free.

·         Partnership

This is when two savings is used to help start the business. This is an advantage as there is more money and less pressure. There is a disadvantage for this scheme; sometimes entrepreneurs may fall out over disagreements.

·         Loans

Entrepreneurs may ask loans from family and friends. This is a hassle free loan, as family may not charge high interests and pressurise to pay back by certain time. Also there a new schemes for entrepreneurs who are looking for a loan. Local, national and European governments now offer special loans and grants. For example The Princes Trust can help budding entrepreneurs with loan to start business.

(M) Information on suppliers

choosing a good and trusted supplier that supplies good quality products for my business is fundamental. I must maintain a positive and healthy relationship with my suppliers. The links below are some of the suppliers I will mainly use and one of them is a back up suppliers
  http://www.salonsdirect.com/
http://www.ellisons.co.uk/cms/
http://www.capitalhairandbeauty.co.uk/

(N) Start-up plan

It is very important to create a start-up plan before starting a business. This is to be organised and realistic. My start-up plan will cover various topics that are essential to my business.

·         Market research/plan (this is to identify targeted consumers)

·         Research the industry of my business

·         Study how my business will perform in this economy and see if there is a place for my business in the market

·         Write a business and market plan

·         Get hold of funding

·         Secure deals with vendors and establish good relationship with them

·         Scout for appropriate and attractive locations/ finalise lease

·         Hire staffs

·         Finalise important governmental document

·         Get hold off stocks and equipments