SPA AND SALON

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Step 1

WRITE A SUMMARY

Write a brief description of your SPA

and Salon which include details about:

How you are planning to start?

Objectives behind starting a SPA and

Salon?

What will be the services?

What will be the location of your Spa

and Salon?

Will you take it to online platform or

not?

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Write snippet of market you have covered in Business Plan.

Write brief description about your Founder and Management

Team?

Strategies you have planned to use for your SPA and Salon?

How much amount of fund you are seeking from investors? In what

you will use this fund? For example : Ongoing research and

development, working capital, organizational and marketing

expenses.

Where do you see your SPA and Salon in future? Your Mission,

Vision and Objectives?

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Step 1 continue

PROBLEMS

SOLUTI

ONS

Step 2 SITUATIONAL ANALYSIS

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Note : Write the problems which are faced in day to day work.

Note : Provide solutions to problems. How will you solve these problem by opening your SPA and Salon.

Situational analysis is the analysis of, what are the problems and what solutions will be provided by your SPA and Salon

Example

In SPA and Salon what are you offering

???

After analyzing the problems and solutions for your business write, what services in the SPA and Salon will you offer. For example, some of the SPA services are Massages, Body treatments and Facials. Salon services are Nail and Hair Services. Write Operational Plan for, how will you provide above services to your potential customers?

Step3

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Example: By 2015 revenues of beauty business in the U.K.

are projected to reach approximately £4

billion. PRIVATE DOCUMENT

MARKET ANALYSIS

Step 4

Write your market potential analysis to

justify the demand for your services.

Get complete demographic information

about your perspective clients.

Carry out in-depth market study that

profiles the target customer base,

current sales, trends, opportunities,

growth in the market area for the Spa

and Salon category, pricing and special

features of the competitors.

Plans for differentiation , and expected

sales,

in the proposed Spa and Salon .

Write Barriers to Entry by using Five Force Model. It includes :• Bargaining Power of Buyers • Bargaining Power of Suppliers• Rivalry among Existing Firms • Threats of Substitutes • Threats of New Entrants

Include competitive analysis, which includes comparison

between competitor’s features.

Competitors

Services Prices

XYZ spa and salon

Spa :For 2 people

£ 20

Manicure £8

Hair Cut £11.50

ABC spa and salon

Spa :For 2 people

£ 15

Manicure £ 10

Hair Cut £ 10

Example

Example

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•Bargaining Power of Buyers : High bargaining power because there are so many bakeries providing same products at cheaper price

•Bargaining Power of Suppliers: Bargaining power of suppliers is high

• Rivalry among Existing Firms : Competition in this business is very high

• Threat of Substitutes : Threat of substitutes is high

• Threat of New Entrants : Potential for new entrants is high

Step 5

Include your expertise and qualifications and the details about, how you will manage your Spa and Salon. Who all are your team members? How will you manage as a team? What roles will they be performing? What will be the organization structure?

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MANAGEMENT TEAM

Step 6 MARKETING PLAN FOR SPA AND SALON

What will you do to get your customers to come to your SPA and Salon? Write a Marketing Plan for that first. A Marketing Plan should contain details about your marketing strategy, pricing and promotional strategies for example, outline your pricing strategy, what all products and services you will sell, what will be the rates for those products and services. Examples :Some of the strategies you should include : Free mobile application download Free online registration Discount offers and coupons on festive season Word of mouth You can ask clients for referrals and reward them with discounted or free services depending on the number of clients they bring PRIVATE DOCUMENT

Include SWOT(Strength, weakness, Opportunity and threat) analysis

Strengths Weaknesses

Opportunities Threats

• Team of skilled expertise• Clean and Hygienic services.

Note : Here, you can include your Spa and salon team and working Strengths

• Limited services• Low marketing budget

Note : Here, include your spa and salon weaknesses if any

• High potential target market• High number of opportunities to expand business with new services

Note : You can include your possibilities for expansion etc

• High competition in market • Competitors provide same services at low prices

Note : Here, include your spa and salon external threats

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Step 6 continue

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EXPANSION PLAN

Step 6 continue

Write details about the expansion of Spa and Salon which should include details about :

In what location you will expand your business ? Who will be your competitors at the target locations? Competitive analysis between other SPA and Salons in your target locations.

FINANCIAL PROJECTIONS

Write down your goals for sales and profits, as well as for your operating budget. Make the financial projections for your SPA and Salon. Outline all your costs such as rent supplies, salaries, equipment costs for SPA and Salon services, and other overheads, project your revenue, profit and loss , Cash flow statement, Balance sheet, breakeven analysis etc to complete your financial projections. 

Step 7

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Step 1

Prepare a startup table which will include information about expenses and assets incurred by SPA and Salon before starting up the saloon

operations.

Step 2

Revenue and Cost is the most important part of business. Profit and loss of SPA and Salon will totally depend on revenue and cost. Prepare

assumptions to calculate revenue and expenses.

Step 3

Step 4

Prepare a projected cash flow statement by breaking the analysis down to operating, investing and financing activities.

Prepare projected profit and loss statement on the basis of revenue and total cost incurred(Direct and Indirect) by SPA and

Salon .

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Step 5

Step 6

Prepare a summarized report which will contain an yearly overview of profit and loss statement, Cash flow statement, Balance sheet

statement and ratios.

Step 7

Calculate BEP(Breakeven point) by preparing the breakeven analysis to know in which year SPA and Salon achieving BEP.

Step 8

Prepare a projected Balance Sheet and give effect of assets and liabilities incurred by SPA and Salon

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Prepare ratio analysis to evaluate various aspects of SPA and Salon’s operating and financial performance such as, its efficiency, liquidity, profitability and solvency.

Step 9

Calculate ROI (Return on investment) to know how much amount of return investors will get in future.

Step 10

Prepare a Business Valuation to know how much return SPA and Salon will achieve in future and what will be the market value in future?

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Step 7 Continue

GET YOUR COPY OF PLAN TODAY!!

So are you ready to start your own Spa and Salon?

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