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Beauty salon business plan

University: University of South Wales

  • Unit No: 18
  • Level: High school
  • Pages: 12 / Words 3059
  • Paper Type: Business Plan
  • Course Code: EBIS75
  • Downloads: 307
Question :

This sample will let you know about:

  • What is SWOT analysis?
  • What is business plan?
  • Explain Technological Factors.
Answer :
Organization Selected : Serenity Beauty salon



Executive Summary

This business plan discusses briefly about Serenity Salon which is a beauty parlour. It highlights PEST factors which can impact business and strategies which helps Salon top resolve all the challenges and improve the efficiency to achieve competitive advantage. This plan provides information of long term goals of Serenity Salon and techniques which helps to improve brand value of Salon and increase sales to generate more profit effectively. Business plan also provide understanding about potential of business and substantial growth in five years.

Mission Statement

Main aim of Serenity Salon is to increase customer satisfaction and experiences by providing excellent quality of services and products. Improving skills and knowledge of employees to increase customer engagement to gain profitability.  Want to get Assignment Samples?Talk to our Experts!

Company Background

Serenity Salon is located in Newport, UK and provide beauty services tom its customers. Company was established to provide customized hair styling to all customers according to their needs and wants of customers . Business was established in central Newport to increase the sales and brand image in the market. Salon analysis that there is increase in beauty consciousness in market which benefit business to attract more customers who want to improve their beauty. Business operates in market as the company has many products which are produced by Serenity Salon and has trademarked on it.

Product and Service Description

Salon provides different types of services to its customers like hair styling, head massage, hair treatment to stop hair fall and nourishment . Salon also provide dry texturing spay which is unique in market and provide unique selling point. As Salon produces its own products which give business competitive advantage in market to increase customer base and increase sales effectively. Salon provides hair dyes and hair removal products which are herbal and have not side effects. Serenity Salon also has skilled employees which help to ease customers by improving the quality and techniques which reduces pain and increase quality of results effectively. Serenity has specialized team which look after exfoliation process to provide better experience to customers and increase sales and profitability and survive in market effective.



Suppliers are the services and products providers to business which help to operate the daily activities. Salon need more suppliers which helps to reduce the bargaining power of suppliers and provide low cost products which helps to increase efficiency of the company . Company needs to improve the efficiency of the products and also purchase high quality products which helps to increase efficiency of services. Suppliers also helps to improve the market reachability as unique suppliers provide competitive advantage to business.


Combs and brushes are required in salon daily and buying these products in quality can decrease the cost and increase profit margins of the business effectively . Scissors and hair styling station need provides quality of styling for customer and also increase opportunities to increases product differentiation to increase customer retention effectively.

Business Strategy

Serenity Salon is development new website for salon which helps customers to book their appointment online and also check for their waiting time which can help them to save time for waiting in salon This also provides better facilities to customers and customers can also purchase herbal products online with extra discounts to make them loyal and earn better profits.

Stakeholder’s aims and objectives behind establishment of serenity salon business can be understood by the fact that top management is highly effective and focused towards operating the structure of delivering personal care beauty and spa services to customers. Newport city has been chosen as the place of business operation by serenity salon as all relevant resources, capital funds and various other resources through which company can establish management are highly present within nearby places. The products which are being used in salon for treatments are strongly natural and chain of suppliers is focused towards cost effective targets and relevant with the business needs. Serenity salon business is viewed with varied services to be provided among customers who look for treatments with high quality products and natural products where the herbal factor is being focused highly to be unique in all products.

Pest Analysis

Serenity Salon need to analyse external factors which can impact the business operation and market share negatively.

Political factors

Changes in government policies and stability of government need to be analysed by salon as government has implemented policies to ban the use of chemicals which are also used in beuty products this can decrease the sales of business.

Economic Factors

Salon need to analyse all the taxation policies which can impact the pricing policies and profitability of business. Due to Brexit it has impacted import and export of business products and decreased the opportunities of Salon to purchase raw material as this increases the cost lower the profit margins.

Social Factors

Behaviour patterns of customers which includes trends, lifestyle, income level, preference need to be analysed by business. Change in preferences of beauty parlour and herbal products can lower the Salon;s profitability and sales which impact the growth of the company.

Technological Factors

Technological changes are the trends which the company can use to increase the efficiency and attract customer. Salon analyses that change in technology can impact the sales and decrease the efficiency of their equipment and lower the customer satisfaction.

SWOT Analysis

Swot analysis is the technique to asses organization current business position and how it can enhance its position in the competitive industry by working towards strengths, weaknesses, opportunities and threats. It enables company to analyse internal factors which are integral element of company working stricture and efficiency of operational structure greatly depends on it. Serenity beauty salon is a new salon near Newport, UK which offers variety of products and services to various customers of all age groups. Take Marketing Assignment Helpfrom professional experts!


  • Well-trained young employees with high commination skills to provide customers comfortable experience.
  • Wide range of services offered
  • Excellent spacious salon with hygienic space for all customers
  • Competitive price range


  • Large capital costs for starting up
  • Lack of brand equity as new entrant in competitive business industry.
  • High competitive scenario along with changing preferences of customers


  • Steady growing market with large customers looking for new salons to experience lavish beauty treatments.
  • Ability to decrease marginal fixed cost as customer base grow rapidly and aim towards cost efficiency in reaching targets.
  • Increasing sales opportunities through online marketing promotions


  • High competition from already established beauty salon chains.
  • Changing traffic patterns of customers along with changing dynamic preferences.

SWOT analysis relevant to business

This refers to relevance of conducting swot analysis for serenity beauty salon which enables company to study the internal factors of company. It aims towards positioning itself firmly by working towards strategies for enhancing the strengths, reducing weakness by working towards opportunities which lie before for market spread. Eliminating threats for large market share and grow by potentially targeting the customers it can attract. Serenity beauty salon can address the weaknesses and threats emerging from swot analysis by working towards various strategies which are as follows.

  • It should increase large capital investments for offering high comfortable experience with large variety of beauty treatment and haircare services for retaining the customers' loyalty for long term growth in market share.
  • Serenity salon must aim towards increasing online promotions on various social media platforms for attracting large audience of al age groups. This strategy will enable company to face high competitive growth in market.
  • Salon must work towards enhancing the skills of employees for catering to changing preferences of customers, and enhance their communication skills to provide quality services.

Competitor Analysis

This refers to analysing elements of marketing and strategic management which includes assessing strengths and weaknesses of potential competitors in industry. It enables company to figure out ways for strengthening the position in market share by enhancing strengths and opportunities against competitors and work towards eliminating the potential threats .

Porter 5 Forces

Porter's Five Forces is a framework for analysing company competitive environment which includes competitive business rivals, mew market entrants, suppliers, customers and substitute products which influence company profitability to great extent.

  • Competitive rivalry-. Serenity salon faces high competitive rivalry with many established salons offering undifferentiated products and services with high customers' loyalty towards services. Salon must aim towards strategies to define target market, business plan which must include promotion criteria on online platforms about serenity salon advanced services and products. Competitiverivalry is one of the most important element of business establishment into an industry which can be achieved through advanced competitive services and high quality performance standards.
  • Threat of substitution- This refers to high threat of substitution in salon industry where there are large competitors offering wide range of services which increases threat of substitution by customers. Serenity salon must aim towards delivering high quality experience to customers by offering attractive styling services, beauty treatments and minimize customer wait-times in salon.Threat of substitution is one of the foremost force which affects company positioning in industry with long term sustainability margins. This element may determine various factors which needs to be implemented for building innovation in products and services.
  • Threat of new entrants- This refers to threats of new entrants in beauty salon business where market growth is highly volatile and rapidly changing due to increasing customer preferences. Serenity salon must aim towards building strong durable barriers in form of high quality services and attaining customers satisfaction for long term market sustainability.Threat of new entrants is strong business factor which enables business mangers to get detailed analysis of new companies and brands coming in industry, by which expansion decisions are made for long term profits.
  • Buyer power- This refers to number of buyers and the importance of each buyer has on influencing the price range of products and services. Serenity salon must aim towards keeping competitive price ranges of services and all products offered at salon for gaining large customer growth in market spread. It will enable salon to position itself firmly in the initial phase and promote the services strongly to customers. Customers usually have high power and vitality to bring rapid changes in prices and affect company profitability margins, serenity salon must aim to keep competitive prices for reaching an equivalent margin between company profits and customer satisfaction.
  • Supply power- This refers to number of suppliers for each essential output, relative size and strength of suppliers and cost of switching for company management. Serenity salon must aim towards strategies to maintain strong relations with the suppliers of beauty products for treatments and styling at salon. This will enable salon to work with cost efficiency and highly reach the business goals by keeping strong control on suppliers. Supplier power affects company performance longevity in industry as the revenue profits have huge impact due to supplier prices demands.
Business objectives for year 1 to year 5 can be analysed on the basis that management has large focus to built internal strength and functional operational efficiency for reaching large segments of customers. The quality of services offered at salon needs to be enhanced by giving training toe employees and bringing innovation in technology usage at salon.

Marketing Plan

Marketing plan refers to understanding market size in industry which describes the past and future growth potentialities by analysing the marketing sector, competitors and the selling techniques foe effective market spread. It includes marketing mix which are 4PS Product, Price, Place and Promotion which are important elements of marketing plan.

Market size-Serenity salon is a new beauty salon in Newport area where there are large opportunities for occupying firm position among all age group customers. Marketing should be done to effectively promote about salon treatments and product services to customers who look for quality lavish experience at salons.

Aims and objectives-

  • Serenity salon aim to occupy firm position in market share by enhancing customer satisfaction, delivering high quality beauty treatments and working towards offering wide variety of services according to changing preferences of customers.
  • Serenity salon aims towards opening new branches for large availability by people in city by marketing effectively about all salons' information to public through online platforms.
  • Salon aims to reach set financial goals and attain profit margins by cost efficiency and optimum utilization of all resources available, which includes training employees to deliver high quality services
  • Salon aims to enhance its position in highly competitive market where beauty industry is highly volatile due to increasing new salons and high competition from already established salons.

Selling techniques-Serenity salon by using innovative selling techniques and online promotion through websites and advertisements on social media platforms, enhance its market spread among public in Newport. Internet is wide platform through which salon can reach large audience quickly, promote about variety of treatments along with their benefits for customers. Salon by using internet as marketing platform to promote and increase the selling graphics enable completion of business goals and reach the targets with large cost efficiency.

Marketing mix-

  • Product- Serenity salon can market the products and services offered at salon with innovative approaches to attract customers who look for large variety of beauty treatments. It can promote about salon services through online platforms to customers who look for high quality comfortable experience when it comes for having beauty treatments
  • Price- Serenity salon can reach large customers through competitive prices and large discounts for initial services at salon. This will enable company to vastly spread in market share and attain large sustainability in the industry.
  • Place- Serenity salon can place itself firmly in the market share by opening large number of salons in city, where there is easy access to customers and large business opportunities. Salons must aim to keep hygienic environment for customers, clean and satisfied service will keep the customers retained for long term.
  • Promotion-Serenity salon can promote about the variety of services and large products it offers to customers through online platforms with the use of internet and advertise among potential customers. Through online promotion salon can reach large audience with cost efficiency and large capital on sales promotion can be saved Ask for assignment help from our experts!

Financial Plan

Cash flow forecast -This refers to analysis of cash flow which explains company financial position regarding total capital in for investment and how much capital company earns through sales and business operations.

Cash flow statement shows the salon financial performance has been increasing with high capital sales revenue through months which shows high profit margins.

Profit and loss forecast- Profit and loss statement refers to analysis of financial position regarding profits earned and loss sustained by company. It helps management to attain high profit margins with increased production levels and reduce losses through effective better use of resources.

Annual profit and loss statement shows salon has attained high profit margins with cost efficiency and services are highly operative to reach the set business goals.

Break even point- It refers to a point where total costs and total revenues are equal for company. It describes a point where there is no net profit or loss and financial position is strong for long term sustainability .
Serenity salon is able to reach profitable break even point where the sales are effective enough to complete fixed cost revenues, and it is able to attain profits after completion of variable nad fixed costs.


This report concludes that is very essential for business to evaluate and identify all the factors which are present in the market and internally to formulate effective market and business plan to facilitate growth and increase market share and profitability effectively. Report has discussed brief about market strategies which helped Salon to improve its market penetration and targeting of customers according to business strategy and mission statement. Report discussed about competitors analysis and strengths and weakness of business to increase its potential effectively.

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