Services Description
Services provided by Pretty Girl Dreams will include hairdressing services, such as styling, haircuts, coloring, and extensions. In addition, manicure and pedicure masters will be in the salon, ready to take care of their hands and feet, including cleaning, extension, correction, nail coloring, shellac, pedicure, and airbrushing. The beauty salon will also provide image services, such as applying professional makeup.
Competitive Advantages and Disadvantages
The factors that will give me a competitive advantage are the availability of all possible running types of care and imaging services in one salon simultaneously. Disadvantages will include the lack of an ideal specialization in a particular field.
Pricing, Fee, and Leasing Structures
The pricing will belong to the affordable category and represent the average price in the cosmetic services market. A fee of 2% is set for taxpayers when applying the simplified taxation scheme “Income” and 5% when applying the simplified taxation scheme “Expenses”. Leasing structures of my services will be aimed at taking expensive equipment. Classic leasing will be used, which has a three-way relationship: the lessor, the lessee, and the seller of cosmetic equipment.
Day‐to‐Day Managing
I will manage the business on a day‐to‐day basis myself. My special distinctive competencies are that I have many years of consumer experience, which has allowed me to clearly understand the client’s needs. This will allow me to better understand the salon visitors and meet their needs more efficiently. There is a plan for the continuation of the business if I am lost or incapacitated. In this case, my deputy will take over the salon management, who will gain experience managing all the salon processes by then.
Key Employees
Key employees will include a hairstylist working with an African-American hair structure. The key will also be a manicure and pedicure master who gives manicures and pedicures to clients, makes nail extensions, performs procedures to improve and prevent nail health, and massages clients’ hands and feet. A cosmetologist is a specialist who performs a variety of cosmetic procedures. The salon will also employ a makeup artist who is a specialist in the field of makeup, creating an image with the help of makeup art.
Professional and Advisory Support
- Board of Directors. This body will be elected for the year by the shareholders’ meeting of the Pretty Girl Dreams beauty salon and will manage the joint-stock company’s activities.
- Management Advisory Board. This is a collegial advisory body that discusses strategic issues and develops recommendations—guidelines for management action.
- Attorney. The lawyer will be a professional lawyer representing the interests of Pretty Girl Dreams organizations in court.
- Accountant. This is a specialist who will keep accounting records for the company, Pretty Girl Dreams, and manage documents, prepare accounting and tax reports, and submit them to regulatory authorities.
- Insurance Agent. This is a representative of an insurance company specializing in providing legal entities with insurance services.
- Banker. This specialist manages the opening and maintenance of accounts and deposits in a beauty salon.
- Consultant. The beauty consultant will create a facial and hair care program based on the client’s characteristics. They will also suggest makeup and hairstyles suitable for that person, taking into account individual preferences and characteristics.
- Mentors and Key Advisors. These are professionals who will transfer their knowledge, skills, and practical experience to me as a less experienced and novice specialist in the beauty field. They will introduce me to the profession and show me the specifics of work processes and relationships.
Expenses Forecasts
In addition to purchasing equipment already indicated in the business plan, monthly and daily expenses will be required. Monthly expenses will include paying salaries to employees and maintaining equipment. Daily expenses will include materials and ingredients, disinfecting equipment, and premises.
Proposed Loans
The proposed loan source will be a loan from the salon employees, who are my friends, and the creation of the salon will give them jobs in the beauty field. The loan amounts will be from one to two thousand dollars for each employee. The terms of repayment of loans will be three quarters, since, according to the estimated calculations, the salon will pay off during this time. Loans will be refunded not in a single payment but in several payments. Each investor will invest as much as their existing savings allow, and receive a percentage ownership in proportion to the size of the deposit.
12-Month Profit
The net 12-month profit takes into account the fact that five people will come daily and be serviced for $1,500, and in a year, 251 working days will be $1,882,500. Half of the amount will be spent on employees’ salaries, and half of the remaining amount will be spent on equipment and unforeseen expenses. Thus, a 12-month profit can be $470,625.
Loss Projection
The business plan defined the sales forecast using the statistics of other beauty salons in the region I selected. The cost of goods sold is twice that of consumables. Increased expenses in unforeseen circumstances, such as equipment breakdown or litigation with the customer, may cause losses. Month‐by‐month profit in certain months may also be less than stated in the absence of many holidays or extraordinary circumstances, such as COVID-19.
Major assumptions regarding loss and profit are based on the analysis of my competitors’ data in Downtown Dallas, published in the public domain. Profit was calculated as the difference between the revenue received and the expenses for its receipt, such as utilities, rent of premises, and purchase of consumables. Expenses, including unforeseen ones, are considered when calculating profits and potential losses.
Break-Even Analysis
Operating at a Loss
A beauty salon will operate at a loss if fewer than five clients come daily and are served for less than $1,500. Break‐even sales are associated with this fixed amount in variable costs for various salon services.
Operating at a Profit
A beauty salon will operate at a profit if at least five clients come daily and are served for at least $1,500. At the same time, to avoid losing points, the salon will have a margin of financial strength. It is equal to the difference between the company’s actual revenue and the revenue at the break-even point, divided by the actual revenue.