“Hair World” is a new beauty salon that is mostly oriented on providing people with high-quality cutting and dyeing. Men and females with different purposes and requirements can be served at the salon. The approximate cost to open “Hair World” in the United States is $12,000 as the first month of rent and purchase of equipment will not be covered in the first several months of operation. About $5,000 will be spent on rent, and the rest will be invested in the design and material used in the services. It is important to keep to the budget as extra costs may cause a quick bankruptcy due to the inability to cover rent in the future months. Additionally, understanding the return between net income and investments should be easier to estimate performance and acknowledge risks.
The “Hair World” target audience is people of different ages and genders. Parents can bring their children to have a child haircut, and elderly people can visit the company to refresh their look. To attract customers and make them feel more comfortable and welcomed, the business will provide discounts for children under 13 years old, students at local universities, and retired people who do not want to spend a lot on haircuts. Knowing the current target audience is important as it can be easier to build a marketing promotion that will attract more people with common needs and wants (Scarton & Specia, 2018). Basic services like haircuts, barbering, and dyeing should be promoted efficiently as these services are popular and may influence customer behaviors.
The goal of the “Hair World” is based on SMART objectives. The business needs to specify the key task and set realistic deadlines (Reeves & Fuller, 2018). The company aims to become the first in the rating of beauty salons in New York by 2027. The goals can be achieved by increasing the speed and quality of services and introducing unique techniques that may make customers more integrated into the provided beauty package. The business stays relevant over time as people always require hair procedures that can make them look better. To meet the goal, it is also crucial to understand the operation of competitors and aim for a higher level by increasing corporate social responsibilities and uniting workers.
Timescale
Some risks may occur during the opening of the business, and it is important to understand what can go wrong to be able to manage problems in the future. One of the main risks is going over the set budgeting, and to avoid this issue, it is crucial to calculate all costs at the beginning of planning and ensure that suppliers provide the right prices for their products. Moreover, some problems with communication may appear when employees have arguments with their co-workers or clients. In this case, weekly training and meeting should be prioritized and taken seriously by managers.
To evaluate the performance of the business, I would record financial information every month to understand if the company stays profitable and successful for a long period of time. Additionally, I would look through customer reviews on different websites to understand what services should be improved in the future. The retrieved outcomes will be used to improve the business’ operations and achieve a set goal.
References
Reeves, M., & Fuller, J. (2018). When SMART goals are not smart. MIT Sloan Management Review, 59(4), 1-5. Web.
Scarton, C., & Specia, L. (2018). Learning simplifications for specific target audiences. Proceedings of the 56th Annual Meeting of the Association for Computational Linguistics, 2, 712-718. Web.