Annual Report 2018
Introduction Page 3
Business Plan Page 4-5
Finance and budgeting Page 6-8
Type of business Page 9-10
Staff Page 11
Training Page 12-13
Insurance Page 14-15
Services, pricing and products Page 16-17
Business advertising Page 18-19
Bibliography Page 20
This document was requested by Lloyds bank to obtain the business loan requested to start up my own beauty salon called ‘Te Mooi’ which from Afrikaans translates to too pretty.
This report will have everything included in it from training, to services offered and prices, all the information, charts and evidence will be in this report to support my ideas.
This report will not only help me, but it will help to banks and possible investors to see what potential this vision has. With all of this in mind I do have the qualifications in the beauty industry ranging from nails, hair, varicose vain removal and many more which will allow me to train employees should they be lacking skills in a certain area.
Te Mooi will offer many services at an affordable price, it will be a company that not only cares about the standard of work but our clients too. Te Mooi’s mission is to bring the inner beauty out at an affordable cost, so getting pampered is no longer a luxury but a necessity.
For Te Mooi to make the start it wants it needs a lot of things to happen before it can be the beauty salon every doesn’t know they need.
Te Mooi will be a beauty salon that offers a wide range of services at an affordable price, these days to get a set of gel nails costs between £20-£30 and many people either can’t afford that or aren’t willing to spend that much money on a set of nails. With the cost of the beauty industry rising so much many people often turn to cheaper alternates that can really put them at risk.
Having beauty treatments doesn’t need to be expensive, if the services, quality and price is all outstanding why would the business not thrive? The best form of advertising is word of mouth and all it costs is the business doing what they promised in the first instance.
The goals for the business would be to be rated the number one beauty boutique on the Isle of Wight, this is a long-term goal and will take time to achieve. The starting goal would be to establish Te Mooi and have a regular client base, this would start the business of small and once the regular clients being to realise we are the one stop beauty shop word should start to spread.
Our main form of marketing will be through facebook, Instagram and word of mouth all three of these are free and can create a good impact of done correctly, before the opening of the business flyers will be given out and a competition will be created on facebook the winner will get a manicure, pedicure, facial, hair treatment of their choice and a fully body massage for free.
Loyalty cards will also be given out and on their 6th pedicure they get the 7th one free, this should entice clients to get pedicures more often and spend more money on the business.
Our logo will be known as the “One Stop Beauty Shop” and our mission will be providing all the beauty treatments at an affordable price.
Beauty is such a diverse trade by being a beauty salon that caters for all ages we can aim our advertising from ages 18-60 and up, everyone needs a hairdresser and the older generation like to have their feet done as this is not something they can do.
The beauty market is such a large one and offers so many services it is easily apart of every woman’s life. Most woman get their hair done, nails done, have spray tans and many other aspects done. The only problem with the beauty industry is that a lot of the services cost more than what the average person can afford or wants to afford.
It is difficult to say what our targeted group does as means of living, the beauty industry is not intended for a set of people, the range of jobs that our clientele would be doing could range from a home maker to business owner.
The services offered would be popular to all ethnic groups and economic population, offering woman a service they want at a cheaper rate with outstanding quality is something no lady would be able to resist.
Not only would the service be at a better rate it would also be a place where clients are allowed to come and feel apart of a bigger thing, it will be a place where woman come and encourage other woman while seek a place where they can feel recharged and beautiful.
The ideal customer would be one that comes to Te Mooi at least once a month, they don’t need to live in a certain area so long as they live on the Island and refer clients then what more could the company need?
Te Mooi wants to create a beautiful salon that makes woman feel welcomed and enjoy the pamper time they get to themselves. Each service will be tailored to their specific requirement and each client will be treated as special as possible.
The clients information will be entered into a system that will alert the secretary of which clients birthday is coming up, each client will receive a free pedicure voucher as a little something special.
It doesn’t take much for a client to feel valued and by giving them small vouchers or little gifts every now and then makes the client feel special and enticed to refer the beauty salon that gives back.
Finance and Budget
To create the image, I have in mind for Te Mooi there is a lot of money and investment that is needed. Creating a budget allows the business to know what they have to spend to get them started, and what their limits are which can stop the business from getting into debt.
A budget allows the business to see where they are on the financial ladder, overspending can get the business into serious debt and cost the business to fail before its even started.
When doing a finance budget, the business needs to consider all of the finer details such as employee salaries, expenses and possible income. The business always needs to be prepared for the worst outcome financially while aiming for the best outcome.
Setting up a business all forms that will cost the business should be considered, below is a graph as an example of how much it would cost to do a gel manicure and how much these products would cost over a month versus the income the company would make doing the services.
Gel nail polish £6.50
Base Coat £18.98
Top coat £6.50
Nail files pack of 12 £7.69
Buffer files £0.89
100 Fake nails £8.69
LED Lamp £79.99
For one set of gel nails requires 10 fake nails, a base coat, a coat of gel polish, filing the nails to the desired shape and a top coat a gel manicure normally takes about an hour due to the gel nail polish having to be cured under a led lamp.
Below I have broken down a monthly cost of only doing Gel manicures.
One set takes an hour and costs £20.00
All the expenses together are £53.44
If one nail technician does 8 set of nails a day that comes to a total of £160
If there were 3 nail technicians doing this that would bring in a total of £480 a day, over a month that would be £9,600 this covers the expenses it takes to do gel manicures while making a profit and covering other expenses.
All the above expenses excluding the LED lamp would need to be replaced regularly, the lamps only need to be replaced once a year. There are many other costs it takes to be the one stop shop Te Mooi dreams of being, below is a wider detailed list of all the services that Te Mooi wishes to offer and the expenses cost next to them.
Massage full body
Facial (Wide range)
From £10.00- £18.00
Waxing (wide range)
Eye lash extensions
Hair treatments from haircuts to hair dye
When doing one service such as the gel nails every other service would need to be in depth too, finding the exact costs as well as the best products gives the business an advantage because they can offer the best services with the best possible product.
Not only does the expenses of making the service matter but also the cost of salary for each member of staff. Ideally Te Mooi would like to have 3 nail technicians, 2 hair dresses, 1 misuse, 2 ladies who do lash extensions and waxing, 1 lady who does facial treatments.
Each profession has its own salary group of what they should earn, but each profession has its own idea of what they would like to earn, so when employees are hired a discussion must be had between the employer and employee and they must come to an agreement that they are both happy with.
The UK has strict laws about salaries and so the following must be kept in mind when employing staff members;
- Employees aged 21-24 is at a rate of £7.38 per hour.
- Employees aged 18-20 is at a rate of £5.90 per hour.
- Employees aged 16 and 17 is at a rate of £4.20 per hour.
- Apprentices aged under 19 or in the first year of their apprenticeship is at a rate of £3.70 per hour.
If a business doesn’t take this into account, there could be serious consequences that could lead to employees leaving and the business being in greater trouble with the government.
The business needs to look out for themselves as well employees, investing in employees can lead to the business succeeding as happy staff lead to a better services and customers feeling happier and more likely to come back.
Type of business
When setting up a new business, you must pay attention to selecting the correct organizational structure for the business. This organizational structure should be decided according to the company’s size, industry and aims.
There are so many different types of business to choose from it is often best looking at all options and seeing which one better suit your business and your finance. Because there are so many forms of a business organization it is better to understand each one in greater detail, so you can make the correct decision.
1. Sole Proprietorship
A sole proprietorship is a business owned by one person, it is easy to set up and doesn’t cost much compared to the other forms. The owner has unlimited liability which means the creditors of the business may go after the personal assets of the owner if the business cannot pay. The sole proprietorship form is usually used by small businesses.
A partnership is a business owned by two or more people who contribute resources and finance into the business. The partners divide the profits of the business and have unlimited liability. The creditors cannot go after the partners personal assists.
3. Limited Company
A limited company is a private company where the owners are legally responsible for its debts but only to the extent of the amount of money that was invested.
After looking at the 3 most popular options for a business organization I have decided that Te Mooi would thrive best under a Limited company this way the business would be in my name alone and I would be protected should the business not succeed as planned. Other perks of going with the Limited organization is that the business might find that customers have a bigger confidence in the company if it is limited, simply because limited companies are monitored better.
Clients, investors and suppliers will be able to investigate the business openly as everything will be online, the business also has better tax profit because the company can choose to pay the money as personal tax or invest.
Once the business names have been registered I will legally own the business name and no one else can trade mark the name. Another benefit of being a limited company is that one can sell shares to investors as well as finding more opportunities to borrow money. A sole trader doesn’t have to pay income tax and national insurance while making more tax relief claims against salaries and pensions.
Even though the limited company only seems to have beneficial outcomes we do need to keep the cons in mind. Some of the disadvantages of being a sole trader is that each year the business would need to fill in the self-assessment tax return each year which includes a lot more paper and –
Set of accounts
Being a limited company also means that there are more legal duties and failing to fulfil the duties could result in fines. Another down fall is that as a limited company there is less privacy everything about the company will be public and accessible to the public and anyone should they wish to access the records.
With all the above kept in mind the evidence points to Te Mooi thriving under a sole trader organization, like anything the business would need a lot of work, time and effort put into it for it to succeed.
For any business to thrive and function smoothly each day they require the correct amount of staff each that can function in their own separate way but also as a team. Te Mooi has been created to be the one stop beauty shop and so there for requires quite a few members of staff.
For Te Mooi to be the beauty shop that has been dreamed about the following staff members will be needed;
Te Mooi requires one reception who will be working Monday to Friday 9am-5pm. Their duties will include taking calls, welcoming guests, making appointments and keeping the front of the office neat and tidy with updated magazines.
Te Mooi requires at least 4 nail technicians to perform the hand and feet treatments, only certified nail technicians with 3 years’ experience will be hired.
Te Mooi would need a total of 3 hairdressers to perform all duties and provide treatments.
Te Mooi would be a total of 4 fully qualified beauticians with at least 6 years’ experience as they will be performing the more surgical side of beauty treatments.
Te Mooi would need 1 Piercer who will be performing all piercings and treatments for infections.
Every staff member at Te Mooi will already been fully qualified and have at least 2 years’ experience and must be able to show qualifications and references. The beauty community is something that is always changing and is a fast-passed environment as new beauty trends are always coming up.
If Te Mooi wants to be the one stop beauty shop every beautician needs to be on top of their game and up to speed with all the latest techniques, there are always beauty events where the new techniques are taught and all staff members at Te Mooi will attend these.
Every year there are countless refresher courses that allow beauty professionals to refresh their knowledge and to learn new skills. The Beauty Academy on the move is a beauty academy that is aimed at refreshing beauty therapy skills their website is beautyacademyonthemove.co.uk they offer refresher courses on all the services Te Mooi offers.
For the staff of Te Mooi to do a refresher course and keep up to date with beauty trends the course costs £50 deposit per person, Te Mooi would cover this cost allowing the staff members to go such as the nail technicians, hairdressers etc.
Another beauty refresher course is the UK Beauty Schools they offer packaged courses that is based on a wide range of treatments that are highly sought out after, the price ranges from £250-£1600 with a finance plan available. The packaged course allows the employee from Te Mooi to mix and match three courses they would like to be refreshed on while learning new edge techniques that are in demand.
Uk Beauty School website is www.ukbeautyschools.co.uk and they even offer free courses that te Mooi employees can attend although their training schools are not on the island they are relatively close, the beauty courses take place in Kent, Essex, Surrey, East Sussex, Brighton, Hove and London.
For obvious reasons the UK Beauty School stands out the most and is the better option for Te Mooi to use due to the extensive list of courses they offer and the promise of learning new skills.
Because there are so many refresher courses that a company can choose from it is good to always do research and see all the options available, knowing what discounts the business can get and what courses they offer gives the business an advantage. Lining up two or more options for the business to choose from benefits the business, Te Mooi can ensure that the employees gain the best benefit at a price that is reasonable.
Due to services Te Mooi will be offering there will be a few employees that get training refreshers every year as apposed to every second year, nail technicians’ skills don’t often have new and high cutting skills sometimes the shapes which clients want can change but it is often between the same options. However, the Te Mooi employees who will be doing the more intricate skills such as eyelash extensions and semi-permanent makeup will have to keep up with the changing procedures and tools.
For the microblading refresher course Te Mooi will be using GMA (Gina Microblading Academy) the courses are 2-5 days long and training is done one on one and costs £1,300 this includes the training and tools needed that the Te Mooi employees can take back with them. The website for this course is ginaspmu.co.uk.
For the eyelash extension refresher course Te Mooi will be using The Eyelash Emporium they have a wider range of training classes across the UK, each class has a small number of pupils which allows for one on one training. Once the training is done each person receives a £125 training eyelash kit for free which they can then take back to Te Mooi.
Learning and knowing edging skills that competitors don’t have gives Te Mooi an advantage as the business will have better skills and services to offer to the clients, continuously improving skills and knowledge can never be a down point as the business will always be bettering itself.
Knowing what insurance to choose for the business is an important aspect as this protects the business from clients, employees and damages due to unforeseen circumstances such as water damage etc. By having the right insurance in place, a business can avoid financial loss due to lawsuits or unforeseen circumstances.
Because there are so many things that could happen on a day to day basis the business needs to be protected so that is can still thrive. England has very strict laws when it comes to insurance, so it is always best to be prepared than sorry, below I will be discussing insurances and selecting all the suitable coverage for Te Mooi.
There are 6 types of insurances that every business needs to have in place to protect themselves. Below are the 6 types of insurances that are a MUST;
1. Professional liability insurance
This type of insurance is also known as errors and omissions insurance it covers the business against negligence claims due to failure of services. There isn’t a set professional liability insurance for all businesses. Each industry will have its own customized policy written up.
2. Property insurance
Insurance for property is a must as this insurance covers equipment, furniture. Although this insurance covers such events most of the time it does not cover mass-destruction such as floods and other similar events.
3. Workers compensation insurance
This insurance covers medical treatments, disability and death benefits in the event an employee should be injured or dies because of the business. This policy should be in place even if the job is classed as low risk as accidents can happen such as an employee slips and falls or gets carpal tunnel syndrome. Any of the above could result in a pricey claim.
4. Home-based businesses
Many small businesses such as Te Mooi smart in the business owners’ own homes, unfortunately homeowner policies do not cover home based businesses in the way it would cover commercial property. Any business that starts out at a home would need to have a specific insurance in place which can be arranged.
5. Product liability insurance
If the business is making its own products and selling them to the general market must have product liability in place. Te Mooi will be making a range of its own products that will be on sale.
Even if Te Mooi takes every measure to ensure that the products are safe it can still find lawsuits against the business due to damages caused by one or more of the products.
6. Business interruption insurance
If a catastrophic event does happen the business day to day operation will likely be interrupted causing the business to lose income. This insurance benefits businesses that need a specific location to do business, this type of insurance covers businesses for the lost income during these events.
Insurance for businesses is a risk management that helps the business to transfer the risk of any loss to an insurance company. By Te Mooi paying a relatively small premium to the insurance company the business can protect itself against the possibility of sustaining a much larger financial loss.
By purchasing an insurance cover every aspect of the business will be covered, the insurance will help the business and protect them against personal liability ensuring the business is protected at all costs.
Not only does insurance protect the business but it helps makes the business look credible, it shows clients that the business is safe and that whatever work is done for them if it should go wrong that the business has way to compensate for it.
Services, pricing and products
Te Mooi will be offering multiple services along with its own range of beauty products, everything Te Mooi has to offer will be shown below.
Services and Pricing
Gel Manicure £18
Gel Pedicure £15
Gel Manicure and Pedicure £20
Manicure and Pedicure £16
Foot wax treatment £20
Eye brow waxing £20
Under arm waxing £25
Full Leg waxing £30
Bikini waxing £15
Lip waxing £10
Eye lash extension £23
Eye brow tinting £28
Threading eyebrow £16
Threading of face £21
Threading of under arm £20
Threading of upper lip £16
Permanent lip makeup £30
Permanent eyeliner £35
Permanent eyebrows £30
Haircut and Blow dry £25
Hair treatments £20-30
Full hair dye £60
Roots touch up £35
Men’s haircut £10
Neck massage £15
Full body massage £28
Hot stone massage £36
Products and Pricing
Te Mooi will be making a few of its own beauty products that will be sold to clients who want to buy them.
Body Scrub £10
Lip Scrub £6
Lip moisturisers £6
Body butter £10
Hair mask £15
Bath bombs £3.50
Business advertisement is the one thing that can boost sales and increase awareness of the business, creating a good image of the business is hard to do especially for a new business where people have not yet used the services.
There are so many forms of advertising these days that advertising doesn’t have to be expensive. A popular way of advertising the business and its services are through Facebook and Instagram, with these types of advertising the company can share posts and clients can get involved and share their experience with the business and the service they received. Facebook and Instagram are also free and doesn’t cost the business anything.
Other forms of advertising the business can use is newspaper or magazine articles, flyers and word of mouth. Each advertisement has its own perks, and each will attract a different type of clientele, the younger generation will use Facebook and Instagram where as the older generation will use magazines and newspapers.
One thing that needs to be kept in mind when advertising is how the advertisement will be laid out, you want the advert to be eye catching but also tells the prospect clients what to expect. An advertisement is the business selling itself to the potential clients and making them realise that this is something they always wanted.
Te Mooi will be using Facebook and Instagram daily as this won’t cost the business anything, both pages can be laid out the way the business wants and changed regularly to suit the changes of the businesses. Not only can the business post new and exciting things about the business but these forms give the business a chance to share all its treatments all the time.
Newspaper and magazine adverts will be used but not as often as the other forms, they will be used to help boost the business twice a year in the beginning and near the end of the year.
For the above case research, I had used multiple websites to obtain my information needed for my insight, I have listed all these websites below.
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