A Day at the Beach - Salon Business Plan
By: Shawna Pelowski • November 30, 2016 • Business Plan • 2,395 Words (10 Pages) • 1,344 Views
3018 Oakland Drive[pic 1]
Kalamazoo MI
(269) 969-7137
ADayAtTheBeach@tanning.com
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A Day at the Beach will sell a wide range of beauty products and services. We will provide our clients with quality hair, skin, and nail services. We also will provide a great area for your children to play and have fun while the clients are getting pampered.
Table of Contents
The Business
Description
Marketing
Competition
Operating Procedures
Personnel
Business Insurance
Financial Data
Financial Data
Loan Application
Capital Equipment and Supplies
Blanace-Sheet
Break-Even Analysis
Pro Forma Income Projections
The Business
Description
A Day at the Beach is a full-service beauty salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work. We also have a unique aspect to our salon. We offer a “babysitting” service for the children of our clients. Our hope is to build a stronger customer relationship with our clients by building relationships with their children.
Our mission is to supply products and services that enhance our clients’ appearance and mental health. The beach theme of the salon creates a more relaxed environment of our clients. This also makes the kids have a more fun time since they also get a play day at the beach.
The location is a perfect fit for our salon. It is close to Western Michigan University’s campus, giving students the opportunity to go to a relaxing, affordable salon. It is also near more family-centered neighborhoods in Kalamazoo. This is the cliental we hope that will bring their children in.
The environment of the salon is also a big success. With friendly staff and an “ocean view” our clients will feel as if they are on vacation.
Marketing
Our marketing approach is very simple: happy clients are the best marketing tools. When a client leaves our salon with a new look, they are wearing our company. We gain a lot of our clients from referrals.
We do not plan on any major advertising campaigns. Word of mouth is one of the best marketing tools for our industry. Although, we do plan to run different specials. We will offer rewards to clients that bring in multiple referrals. There are also plans for lottery style drawings for different services that we will offer for free to the winner. We will also offer holiday and seasonal specials on all of our services.
Since our location is also very close to a college campus, we also plan on offering student prices and bundles. We will offer tanning packages and different prices to bring students in to our salon.
Competition
A Day at the Beach wants to set itself apart from other salons in the area. Many clients enjoy the fact that we offer a wide range of services. While spending your day here, you can get your hair and nails done and also get a tan. Although our main focus is hair, we enjoy offering our clients with the convenience of other services in our one-stop location.
There are not many salons like ours. Many other salons have higher prices that drive away clients. We do not intend to compete with these over-priced salons. We offer a middle-ground for the clients that do not want to spend a lot of money, but want the full luxury of a day at the spa.
Another aspect that sets our salon apart is the play area. We want our clients to be able to spend a day at a kid-friendly place. Many salons to not feel like kids belong there. We have a hired staff that’s only job is to watch the children our clients bring in. We will also offer soft drinks and snacks to both our clients and their children to give them an even more relaxed feeling.
Operating Procedures
A Day at the Beach will offer a wide variety of services and products. We will sell high-quality hair products to go hand-in-hand with our high-quality services. The services we will provide will include:
- Hair: cuts, perms, colors, shampooing, conditioning, curling, reconstructing and deep treatments.
- Nails: manicures, pedicures, polishes, shellac, and acrylics.
- Tanning
- Daycare: a fun place for children to play while the client’s needs get fulfilled.
Personnel
The personnel plan calls for a receptionist who will greet our customers and receive payments for the services. The receptionist will also be in charge of cleaning the tanning beds in between uses. We will also have four hair stylists that can do cuts and colors for both men and women. There will also be one nail technician. We will also have one daycare supervisor that is in charge of watching the children. Everybody but the receptionist will work for a minimum hourly rate that can increase based off of how much revenue they each create.
We plan on hiring the four hair stylists and the daycare supervisor in the first year. We also hope to hire somebody who can work as both the receptionist and nail technician part time. As the company grows, we hope to hire additional staff in all areas.
Business Insurance
Our salon will have a Business Owner’s Policy. This will help protect our business facility and our personal possessions. This policy is a safeguard for all of the hard work we have put into our salon. We plan to combine three simple insurance coverages that are important to any business.
We will have business liability insurance, which will protect us if any lawsuits are brought upon us alleging injuries or property damage that has occurred based off of our business operations. It would help cover claims as small as purses or clothes getting ruined from hair dye. It can also cover certain claims of slander or libel against the salon. It, however, does not cover liabilities directly arising out of the professional services we provide.
We will also have business property insurance which will help protect the building. It will also protect our equipment and salon tools that we will own. Another polity that we will have business income insurance which will help cover the loss of income if we are in a situation where we cannot operate due to covered property damage.
Financial Data
We assume that our revenues will grow at a rate of about 5% annually. We anticipate this growth will continue through our second and third year in business. We included our cost of goods sold in the numbers calculated.
The following tables and charts show our projected sales. We expect income to increase steadily over the next three years. This growth will happen hand-in-hand with the growth of our name and reputation in our stylists. We also anticipate our number of clients to grow steadily over this time.
We do not list any direct costs of sales here for our services, only for the products, since our service costs are more accurately tracked as regular monthly expenses.
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Financial Data
Loan Application
We request a small loan of $100,000 to upgrade and purchase the building we hope to be our location. We have a lot of renovations that we would like to do to the property in order to give our salon the desired atmosphere. While we currently have funds to do some of the renovations, others will have to wait until a we have been in business for a few years and have made a profit.
Along with renovations, the money will be used for some of the equipment that we will need in order to start our business. The tanning beds and salon stations are the costliest equipment that we will need to purchase. Since these do not accumulate much depreciation, we will be able to pay off these items quickly.
The third area we would like to use the money is in the advertisement department. Since there are a lot of salons in the Kalamazoo area, we will really need to reach out to potential clients. We hope that our stylists will bring clients from their previous salons, but we would still like our name to grow in the community.
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