1. EXECUTIVE SUMMARY
This business plan is created to apply for funding of €10,000 for the purchase of stock, marketing expenses, and working capital needs of the business. This plan covers details about the business, its founders, the hair extension products it offers, market analysis, sales and marketing strategy, and detailed financial projections for the next 3 years.
HAIR SALON SUPPLIES is a new start-up business founded by hair salon experts Patsy Kavanagh and Margaret Kelly. They have their color masters degree which will enable them to make a customized set for each client individually with a wider understanding of how the hair works with chemicals/objects so it would be safer to have your extensions applied by “masters”. They will operate as a partner in the business. HAIR SALON SUPPLIES is a hair extension business that supplies pre-bonded and tape hair extensions to its customers- mostly hair salon businesses. It is located in Co Kildare, Ireland.
The hair extension products offered by HAIR SALON SUPPLIES are of the highest quality. These extensions are virgin Remy double-drawn hair, designed to achieve fullness and length while looking natural. The main users of these extensions will be the hairdressers who are required to source high-quality products that are gentle to the hair.
For one fitting of HAIR SALON SUPPLIES hair extensions, it can cost between €350-€850 depending on whether our clients choose pre-bonded tips or tapes. Our pre-bonded tips work anywhere from 3-5 months but it depends on the customer’s hair. Our tapes can be reused 3 times after the initial application and it will cost anywhere from 95-150 for a re-tape application depending on the number of tapes that are being replaced.
The ultimate users of this product are mainly young people who are more conscious about their looks and keeping them up with the current fashion trends. HAIR SALON SUPPLIES hair extensions can solve many women’s problems with thinning hair or insecurities.
HAIR SALON SUPPLIES hair extensions are created by hairdressers who work with problematic hair every day so this business has a better understanding of how to create extensions for different people. HAIR SALON SUPPLIES hair extension has custom created a color ring with clients in mind and they have added colors that are usually missing from competitor brands to ensure better service for everyone. Our tapes are customized to be as small and discreet as possible; this makes the tape light in weight and invisible once placed in the hair. HAIR SALON SUPPLIES tape extension sizes are 3cm wide and o.5cm in height. It deals with Qingdao Haiyi Hair as they are the manufacturer of hair extensions based in Shandong, China.
Initially, HAIR SALON SUPPLIES hair salon will be managed by two people as it has two owners and it will be operating through personal savings. The owners are experts in Caucasian and Asian hair types but they are determined to cover African hair types in the future as well.
HAIR SALON SUPPLIES hair salon will hire another member of staff to speed up operations and when the business grows, Later on, HAIR SALON SUPPLIES hair salon will hold educational courses to expand their Stuckists, opening the training academy and also expanding the brand further by including brush sets/homecare/hair accessories. Celebrities and social influencers will be hired to gain more customers and brand visibility.
HAIR SALON SUPPLIES is a hair extension company focused on delivering the highest quality pre-bonded and tape hair extensions to their clients using double-drawn Remy cuticle hair. The goal is to create beautiful natural-looking hair with desirable treatments and top-quality hair tools to maintain their hair at home.
KEY TO SUCCESS
To succeed in this business, HAIR SALON SUPPLIES hair salon must:
- Sell the products that are of the highest quality as well as keeping the customers happy with all of our product categories
- Provide 100% satisfaction to their customers.
- Maintaining an excellent level of
- Getting their hair salon products to reach the masses of the selected target market.
- Promote good values of beauty and fashion.
2. Business Description
The business structure of HAIR SALON SUPPLIES hair salon is based on partnership with 50% ownership each for Patsy Kavanagh and Margaret Kelly
2.1 PROMOTERS AND SHAREHOLDERS
Patsy Kavanagh and Margaret Kelly are the founders of the business. This is going to be their first business venture. They have a great passion for the beauty and fashion industry. They are keen to set up a place where people can get their required hair extensions according to their needs. By experiencing various elements of the business and by questioning and studying many surrounding businesses, Patsy Kavanagh and Margaret Kelly are better prepared to launch the hair extension business in a busy location in Kildare, Ireland. They have excellent people skills and feel uniquely qualified to find the right mix of products to make this place a visible and popular location in the area.
2.2 Legal Status
The business will be established as a company under the laws of Ireland.
2.3 Main Products and Services
HAIR SALON SUPPLIES is a hair extension business that will sell double-drawn Remy cuticle pre-bonded and tape hair extensions including keratin bonds. Their keratin bonds will be made up of 20%glue and 80% keratin. HAIR SALON SUPPLIES hair salon will design this ratio to keep the natural hair integrity while guaranteeing the sustainability of the bond. HAIR SALON SUPPLIES hair bonds will come in both standards and double drawn designed to guarantee a great fit for everyone. These bonds will have a lifespan of 3-5 months depending on the client.
HAIR SALON SUPPLIES hair salon will use customized tapes made of 3cm width and 0.5cm in height which looks invisible when applied on the scalp and also feels light in weight. Tapes will come in double drawn and standard to accommodate all clients. These tapes need to be refitted every 6-12 weeks depending on hair growth of clients and are guaranteed to be applied 3 times after initial application. Each shade has been custom-made by both co-founders and master colorists with keeping every hair type/color in their mind.
HAIR SALON SUPPLIES is a business that will use the highest quality virgin hair and ensuring that their clients get the best possible results. Their manufacturer will be Qingdao Haiyi Hair Products Co Ltd which is located in China. The owners have a trustworthy relationship with this manufacturer over the past year by making these extensions together. The owners have worked very closely with Qingdao Haiyi Ltd. building hair extensions to ensure these hair extensions are perfect and up to the top standard to compete with other top brands.
HAIR SALON SUPPLIES hair salon will appoint Grand Business Plans as Accountants and financial adviser.
2.5 Key Suppliers
Qingdao Haiyi Hair is a manufacturer based in Shandong China. All production will come from China and it will be shipped over via Fastway. HAIR SALON SUPPLIES hair salon will use DPD as their delivery service to various salons as it offers fast and secure services.
3. Market Analysis
3.1 PESTLE ANALYSIS
- In Ireland, Government is stable, and political stability is a significant factor affecting trade business especially if someone is exporting from China.
- Good political conditions for business, lesser corruption, economic freedom, and competitive tax rates are positive political factors for any business in general.
- Government policies regarding business, in general, are good and any economic activity which is competitive is encouraged. The company offers hair extensions that will fill the market needs of the market and will provide a better variety and options to the customer.
- Although the economic condition of Ireland is getting better yet there is Low inflation and high taxation rates, a common aftermath of the global financial crisis.
- Being a member of the EU, the exchange rate in Ireland is stable. Likewise, the interest rate is similar to that prevailing all around Europe. This represents no devaluation of local currency or appreciation, making prices stable.
- Ireland’s economy has passed through a strategic shift i.e. it is emerging as a high-tech and knowledge-based economy from an agricultural economy. This means there is a significant shift in lifestyles resulting from the increased per capita income of Irish people. This has a good resultant impact on people to have more consumable income to explore more fashion trends outside their home.
- Language is English so no major communication barrier for international clients as well
- County Kildare is a county in Ireland. It is located in the province of Leinster and is part of the Mid-East Region. There is a huge dynamic Asian and European population living among other nationalities of the world so HAIR SALON SUPPLIES hair salon will fulfill their needs.
- Co Kildare has 73,596 households and the population is about 220,000 which is a good target market for business.
- Beauty and personal care industry’s products and services demand has become increasingly over the last decade.
- Advance methods of manufacturing hair extensions
- Rapid advancement in the beauty and hair industry
3.2 SWOT Analysis
3.3 COMPETITOR Analysis
There are many hair salons in County Kildare which gives HAIR SALON SUPPLIES hair salons the platform to sell their products to as many hair salons as they can. Competitors such as hair extension suppliers are currently working in Ireland but they get these supplies from the manufacturers which are already manufacturing inside Ireland and hence costs are expensive to sell. There are a lot of choices for hair salons to order from hair extension suppliers so it is always a very healthy competition
3.4 COMPETITIVE Advantage
This business believes that its services will have significant competitive advantages against potential competitors. The main difference between HAIR SALON SUPPLIES hair salon and their competitors is that HAIR SALON SUPPLIES hair salon offers affordable prices in hair extensions. Products that will be offered by them are going to be very specific which will help the business to create brand awareness and leadership among the potential customers as they will provide quality and affordable hair extensions
The main significant competitive advantages of the HAIR SALON SUPPLIES Hair Salon products will be:
- Affordable prices
- In demand extensions
- Lower cost of supplies
- Long-lasting and premium quality hair extensions
3.5 Target Market
HAIR SALON SUPPLIES hair extension’s main customers will be young people around age 20-40 who are generally more conscious about their looks and keeping them up with current fashion trends. HAIR SALON SUPPLIES hair extensions can solve many problems related to female hair like thinning hair or any sort of insecurities related to their hair. The reason for selecting one of the busiest locations of the city is the fact that the target market extends from hair salons to students, job holders, and an increasing number of tourists that come to visit this area. HAIR SALON SUPPLIES hair salon’s potential target market will be also the people which like to attend different parties and meetings.
3.6 Total Market Valuation
Kildare is a county in Ireland. It is located in the province of Leinster and is part of the Mid East Region. It is named after the town of Kildare. Kildare County Council is the local authority for the county. It is the 24th largest of Ireland’s 32 counties in area and seventh largest in terms of population. It has a population of more than 222,504 so there is a huge demand for hair salons in Ireland which will enable to make more customers for HAIR SALON SUPPLIES hair extensions.
3.7 Market Growth
The beauty industry in Ireland is growing as it contributes more than 540 million annually to the Irish economy, according to research carried out by Phorest Salon Software which provides software to 3000 salons in UK, Ireland, Finland, Germany, and the USA. It is estimated that there are about 4000 salons and spas across Ireland, which is impressive when comparing it to the population of the country which is approx. 4.7 million.
3.8 Market Trend
The global hair extension market is expected to grow at a CAGR of over 8% during the period 2018-2024. This analysis of the hair extensions market provides market sizing and growth opportunities for the forecast period 2019-2024. The urge to improve the physical appearance is another major factor driving the hair extensions market worldwide. The rise in income levels has pushed people to increase spend on personal grooming and beauty products, which in turn is boosting the end-user confidence to invest in personal grooming including hair extensions. The hair care segment accounted for 18% of the total revenue of the global beauty market in 2017 and was the second-largest segment after skincare.
There is a visible shift in middle-class spending patterns, which is likely to affect the global hair extensions market. In China and Ireland, the middle-class population accounts for a major share of the hair extensions market and is growing faster in the European and North American regions, where the population of the middle class has stagnated but their median income has increased significantly. Therefore, with the rise in the disposable income in the middle-class population, their standard of living and shopping modes are rapidly changing which is affecting the grooming market in a positive way.
The following factors are likely to contribute to the growth of the hair extension market during the forecast period:
- Growing Demand from Consumers of African Descent
- Middle-Class population to lead market demand
- Rising demand for Beauty and lifestyle accessories
- Increased demand on social media
4. Marketing and Sales
4.1 MARKETING STRATEGY
HAIR SALON SUPPLIES hair salon understands the importance of marketing and will pursue an integrated marketing effort that will encompass both traditional media such as local newspaper and contemporary media such as website and social media. The main thing which will differentiate HAIR SALON SUPPLIES hair salon with their competitors is that they are providing all their quality products on affordable prices. HAIR SALON SUPPLIES hair salon will use different strategies to promote themselves on Facebook, Instagram. The business will use Fastway for shipment. And it will use DPD as their delivery service to various salons as it offers fast and secure services. Using integrated marketing communication business will align its image in the mind of the target customer without creating any confusion. All the tools of marketing will be utilized in an appropriate proportion sending out a similar and well-defined message regarding the services.
4.2 SALES STRATEGY
HAIR SALON SUPPLIES Hair Extension will adopt certain strategies to attract customers. For example, it will invite the owner of hair salons to visit our place.
Businesses will also distribute brochures and leaflets to local businesses.
Providing affordable prices to customers will be one of the key objectives of HAIR SALON SUPPLIES Hair Salon. Initially, the business will adopt market penetration strategy pricing in order to penetrate the market. Price will be the key factor that creates the difference in the products of HAIR SALON SUPPLIES hair salon. Most of the companies are focusing on market-based pricing and break-even pricing strategies. However, others are using market penetration and value-based pricing strategies. Some market leaders are also using market skimming. The price will be designed to value the effort being put in to produce the required quality. Price is actually the psychological factor that either convinces the consumer to purchase the product or it enforces doubts that this is not the right type of product that the customer requires. The price of the product should not be too high to let the consumer shy away or not too low that the consumer perceives it as the low-quality product.
4.4 INCOME SOURCES
All the income will be generated by selling hair extensions. For one fitting of HAIR SALON SUPPLIES hair extensions, it can cost between €350-€850 depending on whether the client chooses pre-bonded tips or tapes. The pre-bonded tips work anywhere from 3-5 months but it depends on the customer’s hair and tapes can be reused 3 times after the initial application and it will cost anywhere from 95-150 for a re-tape application depending on the number of tapes that are being replaced.
5. R&D, BUSINESS ASSETS
5.1 BUSINESS ASSETS
HAIR SALON SUPPLIES Hair Salon will operate from home as the business grows, they will rent new property to maintain their stock. It is located in County Kildare.
a) Financial Information
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