Serenity Salon and cafe is a business partnership that seeks to provide its services in the food and beauty industry. The company will be located in a two-story building where the salon (nails, makeup, and hair) will be found on the first floor while the cafe (coffee, tea, sandwiches, drinks, desserts, and salads) will be on the second floor. Our primary customer base comprises females accounting for 97 per cent of the target customers. The company seeks to employ highly qualified professionals to deliver our services. Social media, website, content, and face to face marketing will be critical for compiling any success. Lastly, the management will depend on debt financing from AlRajhi Bank to do the construction and pay all the startup expenses.
Serenity business is a startup partnership form of business that is privately owned. Serenity will offer salon services integrated with a cafe. We seek to satisfy our customers by s offering them a relaxing environment where their services are accomplished over a hot cup of coffee. The salon will provide specialized services consisting of nails polishing, hair styling, and makeup over affordable pricing. The mission of the Serenity business is to translate value to our esteemed customers at very reasonable prices.
Target Market Description
Serenity Business seeks to target three major groups of customers. The company will put in much effort to create value for all these three groups. Since Serenity targets more than one group of target customers, there will be a reduced risk of low customer turnout that may affect the company. Justifying the competition Within the states yellow pages, there is a total of fifty beauty salons. Less than ten out of the possible fifty beauty salons have incorporated cafe in their operations. As it stands, Serenity salon and cafe is the only business existing that offers a full quality range of forex and beauty services at affordable costs. Therefore our quality products with professional service providers will provide a competitive advantage over others in the market.
The owners seek to invest in the food-beauty industry, where Serenity Company will start its operations as a salon and cafe business. The salon business located on the first will entails nail polishing, makeup finishing, and hairstyling. Our clients will choose from the above range of services at very affordable prices. Before or after the salon, our customers can go to the cafe serenity, located on the building’s second floor. With panoramic window s from the ceiling to the level, the cafe is exceptionally open, spacious, and roomy with a wide range of fr›nd products such as coffee, team sandwich, cakes, desserts, and many more products at reasonable pricing.
Our services most important target markets are female college and university students, with over 7fi per cent of the total clients, mothers with little girls, and less than fixed per cent of men who require our services. These groups range from upper to middle-class members who can afford our services. The target population is over one hundred thousand people scattered in our environment. The frequency of customer repurchases ranges between one week and four weeks; therefore, Serenity will break even as early as possible after it starts operations.
Customers in this business tend to love attention and care for their hair as well as their family. Therefore, whenever the communication, machinery, quality service, and booking procedures are right, our services will be satisfied. They will be able to invite others regardless of where they are located.
Our marketing team will provide the various primary data sources, including use interview’s, questionnaires, and a visit to our critical competitors to gather information and ask questions to the target market. They will also utilize secondary sources such as beauty magazines and demographic reports available in the Capital to make decisions on their potential customers.
Currently, this market is underserved, and attracting sales awareness is critical. With social media marketing, content marketing, website marketing, and a suitable location, success is guaranteed for Serenity salon and cafe.
- Well trained personnel with a relatively five years’ experience in plaiting. Customer services and hospitality
- Located within the CBD of Muscat city with high traffic.
- Timely and dependable working hours
- Variety y of options for both salon and cafe.
- Paper appointment bank,
- Small capacity
- Lack of online appointment facility
- Reliable market growth
- Local business partnerships
- More people can book online
- Male grooming
- The emergence of home beauticians
- Cost of paying skilled technicians and chefs
- Lower pricing by the competition
Serenity will employ the conventional way of marketing to reach its target market. Face to face marketing and content marketing using fliers and brochures will ensure we gain a reasonable market size. Social media marketing will be employed to reach college and university students.
Serenity Salon and cafe will use a unique propositional selling pricing strategy for our customers (Payne et al., 2017, p.469). We will tailor our prices to the services required by our customers. Market research on the prices offered by our competitors will be crucial in setting our fees. We seek to provide quality and affordable services to our clients.
Serenity will create a conducive environment where our customers will enjoy as they receive quality services. The building will have a panoramic window’s stretching from the ceiling to the floor, where the cafe will be open, spacious, and roomy.
We intend to advertise Serenity online, on all social media platforms, and on our website. We will also do advertising in beauty magazines and local newspapers.
Operations and Logistics Plan
Serenity business will be established as a partnership business located in Muscat, Oman, operating out at a rented building with two floors. The salon will occupy the first floor, and after they finish the salon, they can go to the cafe serenity, which is located on the second floor. With panoramic window s from the ceiling to the level, the cafe is exceptionally open, spacious, and roomy. Both the Salon and Cafe Serenity will entail the latest equipment, technologies, and materials to facilitate service delivery. The business will require a fire insurance cover, breakage, and professional liability insurance cover. Other legal requirements consist of local permits and health compliance certification.
Meeting customer requirements and expectations is our primary objective of why we exist as a Serenity business centre. Due to our convenient mention, the Serenity business (salon and cafe) will adopt very flexible operating hours daily. Serenity will be open between 8 AM and 9 PM from Mondays to Fridays. However, on Saturdays, the centre will be available for operations between IO AM and 7 PM.
Human Resource and Organizational Structure
Serenity y Salon and Cafe business will be owned and managed by Oliver Curtis Junior and Barbra. The cafe manager and Salon manager will be hired to ensure smooth business operations. The marketing executive will also be crucial for the success of the Serenity business. Hairst lists, salons, senior chefs, and chefs will also be hired to guarantee service delivery.
The owners seek to acquire debt financing estimated to be 200,000 SAR from AlRajhi Bank. This money will meet all the company expenses incurred while starting up the company, construction, and salary payments to the staff members. Serenity intends to pay back its loan in 2 years with a monthly payback amount of 10,000 from the fourth month after starting its operations.
Serenity Salon and cafe is projected to gain 13,875 dollars, $25,028, and $47,764 for the first three years, respectively. On the other hand, the cash balance of Serenitys projected cash flow is expected to increase in the first three years with $44,593, $61,500, and $ 105,514, respectively. Lastly, the business net worth is projected to be 34,039 dollars for the first year in operation. The primary ratios to indicate profitability consist of the gross profit margin, which is estimated to be 25% in the first year, 34%, and 47% in the second and third years. The current ratio is expected to stay above 1.23, which implies the company will be in an excellent position to repay its debts.
Task 3 – MOOC
The course is about Entrepreneurship and creating a business. This short courses critical learning outcomes are the ability to understand how an entrepreneurs mind is. Another critical learning outcome identifies the common characteristics that entrepreneurs exhibit or show while running businesses (Fairlie and Fossen, 2018). Another crucial aspect that the student learns from this course is launching a new product by recognizing and understanding the product development stages. Lastly, the system provides a good ground for students to examine the various business models existing in the market.
The first skill that students can gain from this course is concerned with Entrepreneurial skills. These skills are related to how to manage a product and seek financing accordingly. Students need to be visionary, creative, and full of passion for students to develop this skill. The next set of skills gained includes selling skills and product development skills.
Selling skills are related to the ability to communicate the value of the product to customers in a manner that increases revenue. On the other hand, product development skills are gained where students learn how a product is conceived, developed, marketing, and exit from the market.
- Fairlie, R.W . and Fossen, F.M., 2018. Opportunity versus necessity entrepreneurship: Two components of business creation.
- Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution, development, and application in marketing. Journal of the Academ y of Marketing Science, 45(4), pp.467-489.