The Business Plan – Target Market Analysis

Hello,

Today’s entry is part 4 of the business plan , where you identify your customers.

Their demographics, buying patterns and most importantly your competitors.

Hair Oasis will be targeting two diverse groups of customers. Hair Oasis will work hard to distinctly appeal to each of these groups. By focusing on more than one group, Hair Oasis is lowering their risk that in a downturn one group will negatively effect the company.

 

4.1 Market Segmentation

 

Hair Oasis will target two different market segments:

 

  • Men. Men have shorter hair requiring a faster, simpler job.

 

  • Females who cannot afford an upscale salon. Women tend to favor a female specific upscale salon if they can afford it. There is not often a difference in quality of an upscale salon relative to a family hair salon other than a upscale salon will tend to pamper you more, only accepts appointments, and the facility is generally a bit plusher. Someone who is fiscally responsible as opposed to someone who likes opulence will favor a family style salon.

 

4.2 Target Market Segment Strategy

 

Hair Oasis will target each of the two groups separately.

 

The males will be targeted by offering, a quick and convenient service. Because men tend to have shorter hair, they usually require haircuts more often. If they are getting a cut every four weeks and work normal business hours, most barbers are closed when the male customers have free time. Hair Oasis will cater to males with evening hours, no appointments necessary, and quick turn around times.

 

Generally females prefer the allure of upscale salons, however, not everyone can afford this luxury. For this reason Hair Oasis will provide the same quality hair styling, without the expensive price. Hair Oasis will target these customers by emphasizing the sophisticated, ultra-hip styling that Oasis can offer.

 

4.3 Service Business Analysis

 

The “hair” service industry is fairly diverse. On one end of the spectrum you have the traditional barber, on the other end you have the fashionable boutique salons. Somewhere in between there are independent hair stylists, franchise barbers and stylists, and beauty salons

 

4.4 Competition and Buying Patterns

 

Hair Oasis competitors include:

 

  • Traditional barbers. They rarely serve appointments, it is generally a walk-in service. While barbers are usually willing to provide whatever cut you are interested, they are generally providing straight forward haircuts, typically on the conservative side. The advantages of a barber is they are inexpensive and easy to use. Their disadvantages is often conservative styling capacities, sometimes a long wait as the barber may be an old timer who enjoys to chit chat.

 

  • Franchised salons.  An example of this would be Supercuts, Jean Yip Hair and Monsoon. In essence this is a franchised version of Hair Oasis. The advantage of this style is the store will be the same from location to location and some people like this predictability.

 

  • Independent salons. These shops typically focus on a specific niche and do not serve a wide group of customers. The advantages to these could be an independent salon that fulfills all of your needs. The disadvantage is that because they tend to be more focused, more often than not this type of salon will not offer exactly what customers are looking for.

 

 

The buying patterns of men and women are quite different. Typically men are more price or convenience sensitive. Men typically care less about the task of getting their hair cut. For them whatever is easiest or available wanted styles works best. Women on the other hand are more caught up in hair styling and tend to bond more with their stylists. Because they bond more, they are much more loyal to their stylist. Once a stylist has earned their trust they are more willing to blindly put their hair in the stylists hands.

 

The Business Plan – Service/ Product

Today’s entry is relatively short.

This 3 part of your business plan, you will be talking about your services / product. The 4 W s 1 H.

Who, Where, What , When , How

Here’s a sample of it .

Hair Oasis provides hair styling for the entire family. This includes haircuts for men and women, permanents and hair coloring for women, and as well as hair cuts for children. Shampoos will be offered at part of the services. Service is offered on a walk in basis or by appointment. Hair oasis will emphasize a customer centric service where the customer’s needs are always the priority.

Hair Oasis will sell hair care products, which is forecasted to account for 15% of sales. These professional quality supplies will include shampoos, conditioners, reconstructors and styling aids.

Hair Oasis will run a mini café in the oasis that will only sell tea, coffee and cakes. This is forecasted to be 10% of sales

The Business Plan – Company Summary

Company Summary 

This is the next part to the business plan. To explain on the ownership of the company and provide information about the start up capital that you will to start your business.

Company Summary

Hair Oasis will, upon commencement of operations, sell a wide range of hair services and products. We will provide quality hair service and top of the line hair products. Hair Oasis will accept walk-ins as well as appointments for the entire family. Providing our customer an “experience” hideout and superior customer attention. What set us apart from the competition is our commitment to providing all of these services in a convenient location.

2.1 Company Ownership

Hair Oasis, the company will be divided accordingly amongst the founder, Jennifer Kwek and the Investors. Stylist will be given shares to the company as an incentive.

2.1 Start – up Summary

The start-up capital will be used for the following items:

è Leasing of premises

è Design

è Leasehold improvements

è Equipment for salon

è Salary

è Marketing of Hair Oasis

( Note: you would have to insert a table on how much each of the items would cost and such )

Words of Encouragement

To my readers:

I almost done something silly today, by shutting down this blog! I was feeling defeated after receiving comments from someone whom i was seeking an approval from. Yes, I am one of those people who feels reassured when someone gives the nod of approval. The comments that I’ve received made me feel stupid. Yes, i am not one to churn out flowing streams of meticulously formed words neither am i one who is able to spot grammar error. If being able to write out flowing composition was wired in my system, would i be here starting a business on my own? But i believed that everyone is made fair, what you’ve got, i do not have. But what I’ve got, just make people envy me!

So to all my reader who got a great idea and is letting the nod of approval stand in your way. I’ll say DON’T! Just keep on going! One day, you’ll look back and say ” Hey, I did it my way! Need not your approval anymore!”

The Business Plan – Executive Summary

The Business Plan that you are about have several parts to it.

I will break it down for you into the different sections

1. The Executive Summary – A Summary of your idea, market, reach ,and most importantly your selling points. ( keep this straight to the point)

2. The Company Summary – Who will own the company and a summary of the start up capital.

3. Services / Products

4. Market analysis – Your research , target group

5. Strategy and implementation

6. Management Summary – Your direction for the company

7. Financial

Let me start , by showing you a sample of the executive summary

The Executive Summary 

After having researched and have gained better understanding of the industry, it’s time to start writing the executive summary . This executive summary is important as this is what you would need to catch the investors’ interest or even if bank interest if you are taking out a loan.

The executive summary should include the following:

1. Introduction

2. Mission/ goal

3. Market

4. Services/ Products

Well, have a look at my executive summary.

Executive Summary

Introduction

Hair Oasis is a hair Salon that is built on the concept of “ experience”. Creating a whimsical oasis where one is able to sooth away everyday stress and indulge in one’s childhood dreams. Hair Oasis salon allows the entire family to have their hair needs satisfied in one convenient visit.

Hair Oasis is a full service hair salon dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products and furnishing an enjoyable and relaxing atmosphere.  Pioneering creative styles for the modern trend setters.

Many Customers spend at least an hour sitting down and with nowhere to go for a stretch. Creating this small oasis allows them to have the luxury and not garner stares from passers-by. This oasis acts to retain customers who are waiting for either their cut or spouses.

Hair Oasis perceives an unfulfilled customer need for reasonably priced salon that provided maximum flexibility and strong customer attention. Using this strategy, Hair Oasis will gain significant market share and create critical long Term Relationships with clients

Company

Hair Oasis is tasked to provide an unforgettable experience through personalized services and products that enhances our clients physical appearance and mental relaxation.  We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers

The ambitions of the owner to one day start her own salon, and the procurement of professional and qualified stylist to support the salon, has made this business one of great potential. .

All our talented stylists have created large client following through hard work and dedication. We have what it takes to make this venture an extremely successful one. We expect our growing reputation to lead to new clients and stylist to support our growth.

Our stylists will operate on a combination of basic and commission basis to create incentives for superior customer attention. We will continue to invest time and money into training to ensure that clients receive the best experience possible making it easier to turn them into long term customers.

To achieve our objectives, Hair Oasis is seeking investors to join us in this venture

 

Services

Hair Oasis provides hair styling for the entire family. This includes haircuts for men and women, permanents and hair coloring for women, and as well as hair cuts for children. Shampoos will be offered at part of the services. Service is offered on a walk in basis or by appointment. Hair oasis will emphasize a customer centric service where the customer’s needs are always the priority.

Hair Oasis will also sell hair care products, which is forecasted to account for 15% of sales. These professional quality supplies will include shampoos, conditioners, reconstructors and styling aids.

Keys to Success

The Keys to success in our business are:

* Location: Providing an easily accessible location for customers.

* Environment: Providing a whimsical and conducive to giving relaxing and professional services.

* Convenience: Offering clients a wide range of services in one setting.

* Service: A service based company whose goal is to exceed customer’s expectation

* Sale: To increase the number of clients served by at least 20% per year through superior performance and word-of mouth referrals.

* To develop a sustainable start- up business.

The next post in writing your business plan , the Company summary.

The Business Plan

Welcome to my 4th fourth post on Imagineer’s Mind,

Today is the day, that reveal my business idea to all of you.  It’s not that conventional neither is it unconventional. Its something that is available just revamping giving it, to give a different feel to attract today’s demand.

I am venturing into Hair Services. Why hair services and what is going to make my place set apart from the rest of the places? Is it the location? Is it the ambience? Or a team of friendly creative genius in hair styling?  Well i have to say it’s a bit of all that.

OVERVIEW OF BEAUTY INDUSTRY

Fast growing and prolific, the beauty salon industry is focusing on developing talent to grow a loyal customer base willing to spend on expanded products and services.

The industry felt declines during the economic downturn, but still remained one of the strongest performing within personal care. The industry is now even one of the fastest growing industries and barriers to entry to the industry are minimal, creating intense competition for the consumer spending dollars available. The main draw for beauty salons is the stylists they employ.

Based on the Stats provided by Singapore stats board, there is an increase of spending in the area of recreation and personal services over the years.

With this understanding and a clear idea of the concept i have in mind, i head over to the table and start with THE BUSINESS PLAN. Here are some basic to help you in creating the awesome plan.

Business Plan Basics

The best way to show bankers, venture capitalists, and angel investors that you are worthy of financial support is to show them a great business plan. Make sure that your plan is clear, focused and realistic. Then show them that you have the tools, talent and team to make it happen. Your business plan is like your calling card, it will get you in the door where you have to convince investors and loan officers that you can put your plan into action.
Once you have raised the money to start or expand your business, your plan will serve as a road map for your business. It is not a static document that you write once and put away. You reference it often, making sure you stay focused and on track, and meet milestones. It will change and develop as your business evolves.

A business plan should prove that your business will generate enough revenue to cover your expenses and make a satisfactory return for bankers or investors.

  1. Executive Summary–features the highlights of your plan and sells your idea in two pages or less.
  2. Company Summary–a factual description of your company, ownership, and history.
  3. Products (or Services or both)–describes your products and/or services and how they stand out from competitive products and services.
  4. Market Analysis-provides a summary of your typical customers, competitive landscape, market size, and expected market growth.
  5. Strategy and Implementation-describes how you will sell your product, how you will put your plan into action, and establishes milestones.
  6. Management Summary-provides background on the management team, their experiences, and key accomplishments.
  7. Financial Plan-contains key financials including sales, cash flow, and profits.


The Journey- Business Action Plan ( Supp.)

To my other readers who wants a detailed Business Action.

Wondering what you should do first? This handy checklist tells it all !

The business start-up checklist below is meant to remind you of the tasks you may have to perform when starting your business.
Not every small business will have to complete each step.
For instance, you may decide not to register your trademark with state or federal officials. Or, you may not be required to publish a notice of intent to do business.
Since laws vary by state and by type of business, be sure to check with local authorities to determine if there are any additional legal steps you need to take.
  • Choose a business based on your skills and interests

Research the business idea

  • What will you sell
  • Who will buy it and how often
  •  Are you willing to do what it takes to sell the product
  • What will it cost to produce, advertise, sell & deliver
  • With what laws will you have to comply
  • Can you make a profit
  • How long will it take to make a profit
  • Write a business plan and marketing plan
  • Choose a business name
  • Verify right to use the name
  • See if the business name is available as a domain name (check at ipmirror.com)
  • Register the business name and get a business certificate
  • Register your domain name even if you aren’t ready to use it yet
  • Choose a location for the business or make space in the house for it
  • File partnership or corporate papers
  • Get any required business licenses or permits
  • Reserve your corporate name if you will be incorporating
  • Register copyrights
  • Apply for patent if you will be marketing an invention
  • Order any required notices (advertisements you have to place) of your intent to do business in the community
  • Have business phone or extra residential phone lines installed
  • Check into business insurance needs
  • Find out about health insurance if you will not have coverage under a spouse
  • Get adequate business insurance or a business rider to a homeowner’s policy Send out publicity release
  • Call MOM to determine labor laws if you have employees.
  • Find out about workers’ compensation CPF if you will have employees
  • Open a bank account for the business
  • Have business cards and stationery printed
  • Purchase equipment or supplies
  • Order inventory
  • Order signage
  • Order fixtures
  • Get an email address
  • Find a web hosting company
  • Get your web site set up
  • Have sales literature prepared
  • Place advertising in newspapers or other media if yours is the type of business that will benefit from paid advertising
  • Call everyone you know and let them know you are in business.

The Journey – Business Action Plan…

Creating a business startup checklist is essential. The checklist acts as a rough draft for a business action plan. While the list items vary depending on the type of operation you want to establish, a few details apply to almost all new business startups.

1. Business Plan

The planning stage of starting up a new business is extremely important and lack of a plan is frequently cited as a cause for business failure, yet many owners do not write one. Outline your plan and then fill it in with well-researched, relevant details about your business idea. Choose how you will structure your business as a sole proprietorship, partnership or corporate entity. This business plan will become a key to unlock many doors along the way as you start up your business. Lenders, investors, business associates and sometimes suppliers and distributors want to see a business plan.

2. Registration And Licensing

One of the first steps you must take when starting up a business is to get the proper licensing, permits and registration credentials from your state. Customers, banks and other organizations take you more seriously when you can show proof that you are an official business.

3. Secure Financing

How you plan to get financing to support your business startup is one crucial task that you must take care of early on in the process. If you plan to borrow money, it is smart to apply for financing as soon as you have what you need to apply, which usually includes a business plan and proof that you’re a registered business. As soon as your business plan is complete, start investigating possible lenders and investors.

4. Establish Business Location

After you have your plan complete and financing lined up, one of the next steps is to establish a location for your business. The location is a decision that you make when drawing up to your business plan. You can rent office space, establish a home business or create an online web site for your new company.

5. Create Business Alliances
Another important point on your business startup checklist is to create alliances with people who can assist you with the process. That includes consultants, potential business partners and future employees. It is also smart to hire a bookkeeper an accountant. Network with other business owners and contacts within your industry as well.

Well, it time for me to put it into action.

The next entry, I will show you how to create a business plan and all the important key items.

Oh yes , i will start to revel the business concept I have in mind. So stay tune with me…

Hello Everybody! Welcome to My Mind!

Hi Everyone,

Welcome to Imagineer’s Mind. This blog is dedicated to all who wants to own a business and how to start.

Take this journey with me as we set the wheels of knowledge and success in motion. We will start where all businesses starts; at the drawing board. I will take you through from the crafting of a business plan to the final realization of a dream. The day to day running and much much more that would come after

I invited you to the IMAGINEER’S MIND – Part 1 The Journey.  Let me share with you my experience . Knowing that all thing is possible with a simple dream!.  Be part of this exciting route as we venture forth towards the dream.

It all started with an epiphany…….

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