Business Analysis of Mobile Hair Salon

✓ Paper Type: Free Assignment	✓ Study Level: University / Undergraduate
✓ Wordcount: 2235 words	✓ Published: 2nd Nov 2020

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This report analysis the prospects of a mobile hair salon in the comfort of your own home. The chosen name for the business in “Vanity Salon”. This business is located in Manchester but travels within 50 kms to its clients. The purpose of this business is give its clients the best service with affordable prices, a time that suits you best and in a place where you are comfortable. This business is registered and standard mobile hair salon that is incorporated under the law of United Kingdom. Our basic services offer to our highly esteemed customers as a mobile hair salon company will revolve around haircutting services, hair colouring and dyeing and other hair services. The business model that is applied is SWOT, this allows to build a successful business on the strengths, weaknesses and protecting against the internal weaknesses and protect the business against external threats. A SWOT analysis also allows the business to keep a watch on the overall business environment and recognise new opportunities faster than its competitors. This model will help create goals for building vanity salon. The recommendations suggest that in the long term the business should start employing employees to grow the business.

Introduction

After doing ongoing research, I have come up with the conclusion, to open a mobile hairdresser business. Which will be a limited company. The reason to this is that a hairdressing business is popular and hair trends are changing very quickly, people are wanting to do different styles such as cutting braiding, dying hair etc. Women and Men style their hair to improve their appearance and for comfort. A different hairstyle can alters a person’s appearance more than almost any other physical change. Hairdressing can accent good features and hide bad ones, and it can draw attention away from undesirable characterises. It provides attractive, manageable hairstyles that meet the needs and desires of the people who wear them. https://www.studymode.com/course-notes/Hairdressing-Services-Offered-In-Salons-1088251.html I feel like there are not many mobile hairdressers in Manchester as this is where my business will be located. Many working mums or people that go to work or even children don’t get the time to visit hairdressers so I want to help those people and give them the service in the comfort of their own house and a time that will suit them and have affordable prices. Another reason to choose a mobile business is to give the treatment to people in hospitals or care homes where residents are unable to visit a salon.” Revenue growth in the industry is expected to increase by 3.3 percent annually through 2017, partly due to people having more disposable income to spend on higher end services, such as facials, massages and special skin care products. According to the Professional Beauty Association, the number of positions available in the beauty industry is expected to grow by 16 percent between 2010 and 2020, so finding experienced salon employees may get more difficult” (Nancy Wagner).

The model I will be using is the swot model this is because it’s simple and a useful framework for analysing a business it unpicks the strengths, weaknesses, opportunities and threats. This will be useful because it will help me build on what the business is doing well and what the business is lacking to minimize risks, and to take the greatest possible advantage of chances for success.

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Background to Vanity Hair Salon

Vanity hair salon keeps in mind the values and quality of the services it offers this will help drive the business to enviable heights and also attract customers as this will make the business profitable. To achieve this Vanity Hair Salon dedicate the establishing good business relationship with the customers by giving them the value for their money and reasons to hire our services over again and again. The services that Vanity Hair Salon offer is: haircuts, hair colouring, blow dry’s, hair plaits, wedding hair and other hair service. Our vision statement of Vanity Hair Salon is to become the most well-known and the number one mobile hair salon in Manchester. And our mission statement is to expand and become successful, profitable and become an all-round mobile salon which will provide hair dressing services in Manchester and within 50 kms. There are many factors that need to be taken to account of, such as dealing with all enquiries and bookings, offering client consultations for future work and dealing with administration work such as ordering items and products, banking, accounting and also expenses. https://www.lhaa.co.uk/blog/how-to-become-a-successful-mobile-hairdresser To do this you would need an scheduled timetable with either one or two days off to work on the office side of the business. This is very important as customers is a very big factor to the business making them satisfied and happy allows more customers. It’s essential to build a client base this will to ensure the success of the business the way this will be done is by advertising on social media platforms, newspaper, leafleting. And a word of mouth is good way of getting to know the business so asking friend and family to recommend this mobile hairdresser. The plan for a successful business is to finding clients to do this you would need to consider of approaching wedding venues to work with as a preferred partner. And also parties and proms are good opportunities for reaching clients at once. By offering introductory promotions to get recognised. There will also be discounts and offers once in a while to reward the customers. Another very important factor before starting the mobile hairdressing business is tax and accounting. It is important to ensure you are keeping in track with the business expenses and are registered to HMRC this is to let them know that you are self-employed and using an self-assessment process to submit my earnings. To do this you need to have an knowledge of the outgoings to confirm that the fees are firm at a profitable rate. https://www.lhaa.co.uk/blog/how-to-become-a-successful-mobile-hairdresser Another factor is making sure the health and safety because you responsible to this. As you will be working with sharp items such as razors, scissors, and chemicals in the clients home, it important that you have insurance cover that is adequate. This insurance will allow the cover for equipment that gets lost or damaged. By renting a hair dressing chair will save the business money and is beneficial to the business as you are an independent business owner and spending unnecessary money when renting a chair and paying a fixed amount is sustainable. Once the business is running then considering buying my own chair. There will be different payment methods, as customers prefer different payment options that will be available for the customer: payment via bank transfer, cash payment, payment via mobile money.

To start up this business you would need loan from the government up to £500 this is to buy the equipment such as towels, shampoo, hair clips, hairspray, hair dye etc. as you will be working with hair dyes and offering hair colouring it is important I have a supplier to work with. To do this I would need to find an supplier that offers suitable prices for the items are in the UK, this is important e.g. if I have supplier in US I would need to consider consume prices which could be expensive if I am an new business and also still trying to pay off the loan from the government. Another reason to consider or not buying outside the UK is Brexit which could affect items being delivered late. “True to this prediction, the pound has lost between 15-20% of its value against the euro and dollar since the UK voted to leave the EU three-and-half-years ago. For businesses that rely on imported goods and raw materials from outside the UK, this translates into an increase in the cost of doing business”( the week business).

Business Analysis

The strengths will be because this is a new business the start-up prices will be lower than he salon prices which is an advantage because you are getting the same hair service but much cheaper and you are getting this service in the comfort of your own home. Secondly, Because you will be travelling you can take my business to people and the fact you will be travelling allows me to visit different places on different days and you are able to attend special events where you can find huge audiences. Because this business is small, so customers will not expect you to have a lot of different varieties of product instead they are looking for a niche selection. This allows you to try out a small selection of products and test them. This enables you to find out which products sell quicker than others and would more customers prefer. Because Vanity Hair Salon is located in a populated area in Manchester therefore the location is major strength to the business.

The weaknesses to a mobile hairdresser business will be considering the legal laws and codes. Because you would need to go through a process of signing up the business and the long paper works. Another weakness will be confusion because you are a mobile business which is a start-up customers may not be able to search you up on google maps so you would need to make sure you use and embrace social media and mobile marketing. You would need to make sure you put some profits aside for emergency repairs work on the mobile business, if my business isn’t working you will be unable to make sells. Also you would need to make sure you make note of all the profit used on fuel to get to different places. Vanity Hair salon is a new business therefore the business may not have the financial muscle to obtain the publicity that the business may need. As this is a new business it will take to build trust with the customers.

As you have read above Vanity Hair Salon is located in Manchester it is one of the most busiest places and this opens up opportunities that the city has to offer. Vanity Hair Salon is positioned to be a one stop shop in the mobile hair salon business. There are no standard and well equipped mobile salon within the area where this business is located. The closest mobile hair business in within 6 miles away. Therefore there is no direst competition within our target market area.

The threats include cyber attacks having a strong social media to prevent this. According to Travelers Cos., 19% of businesses surveyed cited they “worry a great deal” about cyber, computer and technology risks and data breaches. Another threat may be if the business doesn’t do well in the future this suggests that there will not be enough expenses to run social media ad’s. Another threat would be because this is the only business in Manchester at the moment this may mean that new mobile hair salon could be opened. Another threat could be if social media is down this will affect the business as customers will not be able to book appointments.

CONCLUSION

Overall, this report has analysed what the business may need in the long term to make the business successful for the future. It outlines the threats and opportunities that the business may need to take an account to and this was done through the use of the business model SWOT. This business will be successful in the future as it has analysed what the business will need and what they need to focus on. Making customers happy and making them the first priority will lead to the success of the business by this the business will have the chance to securer there social medias and get rid of cyber-attacks, data breaches etc. the grow the business in the future it will be important if the business start hiring employees and accountant so the hair dresser them self don’t need to take days off to look at this.