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Eco Beauty Business Plan

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Executive Summary

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Eco Beauty is a full time service salon that is dedicated to provide superior services to the clients in a manner that will satisfy their needs. It works on the basis of constantly providing quality services that are satisfactory to the clients at affordable costs. Its aim is to render exceptional quality products and set an environment that is comfortable to the clients and to the staff members. Eco Beauty’s management and staff work with the focus of creating a customer friendly environment by considering the diversity of people’s ideas, cultures and preferences. As the name almost suggests, Eco Beauty salon focuses on promoting environmental awareness in its service to the larger community and the preservation of nature.

1.0. Situation Analysis

1.1. Mission and Motto

Our Mission: The mission of Eco Beauty salon is to offer and supply products and services that will enhance the physical beauty and mental relaxation of the clients as this promotes positive living in the society. 

Our Motto: "The Trend Begins with Eco Beauty salon!"

This venture has just been started at the right time and in the best location. After a relentless exploration of possible sites for seven months, it was established that the Texas Arena was the suitable and perspective location. The spirit of hard work and undying efforts of this noble idea was facilitated by the high demand from our customers at friendship level. Besides, the recruitment of highly qualified beauty professionals to support the venture made it a potential creation.

1.2.  Management

David Hey, co-owning this venture with Janet Thatcher, had worked in some high class salon and gained customer popularity due to his superior services and this will boost the client base of Eco Beauty salon. David has excellent skills and attractive dexterity when handling customers. This dedication and interest in work is responsible for the fame that Eco boasts of among the competitors. We highly expect our reputation to improve with the aim of capturing more than half of the existing market size in this industry in the area.

To attain our goals, Eco Beauty salon seeks to source additional finances through loans. It is expected that the loan will be repaid from the firm’s revenues and the collateral security for its acquisition will rely on the existing assets, personal guarantors of the business owners, the exceptional goal oriented and experienced staff.

1.2.Keys to Success

The major keys to success of Eco Beauty salon enterprise will include:

  • Location: Eco Beauty salon will be situated in a place that is accessible and open to all most of the time. Appropriate place makes the customer flow effective and adds to the advertisement and publicity.    

  • Environment: The salon management will strive to ensure comfort of the clients through the use of ultra-modern equipment for relaxation with a pleasant service environment both to the clients and the staff.

  • Convenience: To ensure total satisfaction of the clients, the management will provide a variety of services under one roof with consideration to extended time outside regular business working hours.  

  • Reputation: The public image and perception of people about the staff and management of Eco will be important on the basis of excellent and faithful service to customers.  

2.0.   Company Summary

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2.1. General Information

Eco Beauty salon is planning on commencement of its operation to deal in a wide range of products and services that will capture all the beauty related desires of the clients.

Eco Beauty salon supplies high quality nail, hair and skin services coupled with a variety of the global class beauty and skin care products. The salon is committed to do all it takes in line with acceptable business ethics to set pace ahead of its competitors in beauty and skin care services. This will be enhanced by providing the services under one roof in a convenient location.   

2.2. Place

Eco Beauty salon will be located in the commercial lane in Texas Arena in Mall 1453 Holy Street in Texas. This salon will cover a metric space of 1645 square feet. The site of the business is strategic in respect to the heavy human traffic that uses the road and will likely bump on the Eco Beauty salon. It is at a junction and this boosts chances of accessibility by many potential clients from any side of the town.

2.3. Start-up Summary

The initial plan was to acquire an established salon, but after this failed a decision was made to start Eco Beauty from the ground up. There is a heavy capital requirement that will be needed to lease the premises, do interior design of the salon and purchase equipment for operation of the business.       

The capital requirement for leasing is approximated at $32,500 while the acquisition of the basic salon equipment will cost approximately $27,000. The expenses will be covered through personal investment by the owner. Additionally, it is necessary to have $500 in cash at hand by the commencement date.

3.0 Products and Services

Eco Beauty salon is set to scale the heights of a full service beauty and skin care center. The range of services and products enlisted by its management to offer includes:

  • Hair: relaxers, curling, perms, colours, cuts, shampooing, conditioning, curling, weaving, waving and reconstruction.

  • Nails: pedicures, polish, manicures and sculptured nails.

  • Skin Care:  modern facials, body waxing and massage.

  • Skin care products: body lotions, petroleum jelly – free procedures and application of other skin care herbal oils.

  • Advice: The firm will offer free advisory services to the clients on basic beauty care issues and the facts and myths surrounding skin care chemicals

4.0 Strategy and Implementation Summary

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The strategic plan of Eco Beauty salon is to apply a lot of skills in what is done, excellent customer services, comfortable and relaxing environment for the clients and the staff.

4.1 Competitive Edge

Eco Beauty salon is committed to set high standards and become the admiration of other competitors that may be offering only a few products and services.  This idea was obtained from clients who claim that they need a wide range of products and co-operating services at the same point. This approach to salon management is less costly and less time-consuming, which is greatly appreciated by the customers. Based on this market research done by the management team and the owners, Eco Beauty is likely to gain large shared in the market. Eco Beauty salon will offer products and services in-house, as well as allow clients to ask for services on demand in the same premise for convenience.

The location of Eco Beauty salon is focused towards taking care of all the clients from different socio-economic classes. This will be a competing edge against similar ventures that are located in the down town, targeting only elite class and discriminating the middle and lower class of customers.

Eco Beauty will provide a relaxing and cozy environment for customers as they received excellent service. Additional free services like soft drinks and hot beverages will be given to customers at the waiting bay which will also have a television set for global and local news updates besides entertainment.

4.2. Marketing Strategy

The Eco Beauty salon will use the customers who profess satisfaction from services. When clients leave the premise with products that meets the desires and the result is observable within the community, people will inquire where the service or product was obtained. The word-of-mouth strategy  will go a long way in selling our image and promoting our business. Basically,  Eco Beauty salon expects to attract the majority of new clients through referrals of current customers.

From our market investigation, beauty business does not require a lot of promotional campaign but instead it requires well-structured oral advertisement of one on one. In support of this strategy Eco Beauty will offer special services as a mode of marketing mix by establishing a referral system. Current customers w will be encouraged to refer others and get discounts as a reward. There will also be a lottery draw for a trip to the annual global beauty contest venue. In this case the client will be given cards to drop each time they come to Eco Beauty salon to purchase service or refer a new client. The basic idea behind the lottery is that the higher the number of cards, the greater the chances of winning. This method will put the salon ahead of others.

4.3. Sales Forecast

Eco Beauty’s projected sales for a period of three years is provided in the charts and tables below. In summary, Eco Beauty salon expects a steady increase in the volume of sales for the three year period. This would be possible as the business will continue to build strong reputation and brand image among the public. Besides, the services and stylists of the beauty shop and other beauty products of the firm will become apparent to the public at large. In the second year of operation, the updated business plans will be presented in order to introduce new product and services as a way of increasing its sales revenue and volume. These anticipate products and services over the second and third years would be essential in increasing the level of sales and service delivery. 

5.0 Management Summary

Eco Beauty will be structured, managed, and organized in an innovative and creative fashion in order to generate higher levels of profitability index as well as satisfy the diverse needs of its customer. Besides, the management will focus on creating a positive and conducive working environment to foster economic satisfaction of its staff and facilitate personal development among the staff. The employees will be trained on a regular basis to build their knowledge and skills on the range of products and services the business (Eco Beauty) offers to its customers. Eco Beauty will consider offering employment packages and benefits including vacations, insurance cover, and healthcare to its staff, depending on the economic growth and other financial bearings. To enhance its competence and competitiveness, Eco Beauty will only employ experts with at least two years of experience. Moreover, personnel must have specialized education in beauty therapy and have experience in salon management.

5.1 Personnel Plan

To oversee its operations, a personnel planner (a receptionist) will be employed in order to receive customers and offer the guide on the range of products and services Eco Beauty offers. Eco Beauty will specialize in more than five hair styles, beauty products, and establish a barber shop. The business with therefore employ 5 hair stylists, a barber, nails technician, a massage therapist, and one facial aesthetician. Except the receptionist, the rest of the staff will be employed on contract, and given a sliding commission rate based on their personal performance. As the business grow, Eco Beauty plans to hire a shampoo technician in order to expand on the quality of the services it offers to its customers. In the first year of operation, Eco Beauty will only hire three hair stylists, part-time nail professional, massage and facial technicians, and one barber. The business with then expand its personnel as it continues to establish in the market. In the first year, part-time employees will be paid commissions which are estimated at $ 15,000.

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