Beatuy salon Buisness
This report is investigating marketing strategies for a hair and beauty salon called ‘Serenity’. The purpose of this report is to help me understand the steps and processes that have to be undertaken when setting up and starting a new business. I have decided to choose a hair and beauty salon for my business. I decided upon this type of business, as I was attracted to the industry because I am fond of the idea of meeting, helping people and expressing my talent of being a beautician.
Also, my business is unique from other sectors and provides different types of services and products. One of the main reasons the beauty industry has become very popular, and has widened this is because many people especially my main target audience being women have taken great interest in their health and general appearance. Serenity will be also catering for the needs of men. Some features of my business include the selling of brand name skin care products and cosmetics i. e. Oil of Ulay, Clarins and Tony & Guy hair products.
The service and products provided by Serenity will be at a high level of quality. From the advantages and disadvantages listed above, I decided to make my business a sole trader business to start with, as it is very easy and quick to set up unlike the other businesses, but the problem is that if the business fails, then I am fully responsible for all the business’ debts. In the future I may decide to change the ownership of my business to a private limited company, as this isn’t so risky.
I may turn to this alternate type of ownership, as I can gain maximum revenue with the least amount of total cost, which therefore enables me to obtain the maximum profit. Gladly, Serenity does not have many competitors, which is a good advantage. Serenity is competing with is another hair salon located approximately fifteen shops away called ‘Simons’. The location is shown on the map above. To make my business different from my competitor, my unique selling point will be the beauty sector of my business as ‘Simons’ is only a hairdresser and my business is a hair and beauty salon.
Below, is a photograph that I have taken of my competitors’ salon along with their business card. Sources of finance I will use budgetary control and I have decided that I will need an overdraft and a loan to pay the first and second years of my costs. This includes paying employees, rent, equipment, supplies, and investing in my staff for courses, (See loan brochure in appendix). Once my business starts, I will be able to form a loyal customer base; my business will eventually make a turnover.
The salon will make sufficient profits, which will enable me to pay the bank, and I will be fortunate to have enough income to cover other costs. My aim is to borrow a loan off the bank and will require i?? 10,000. I will be investing i?? 4,000 of my own, which I will borrow off my family and friends. I created this table to make it easier to see the advantages and disadvantages of the sources of finance available to businesses.
I collected the information from class notes and use of GCSE Business Studies by Alan Anderton textbook. Market Research Market research is the process of planning, collecting, and analysing data relevant to marketing decision-making. Using a combination of primary and secondary research tools I will be able to understand a situation better. The reason for carrying out market research is to find out what people want, which may give the manufacturer a change to improve the product and evaluate any problems.