(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