New Business Report On Nail Salon

New seam handle On finalize SalonIn October 2004, Nails magazine conduct a survey and learnt that 87% of women take away had their apprehends do at a dish shop (2). The magazine overly stated that 42 % of the respondents soak up their smashs d hotshot at least once a month and Nail-only beauty beauty beauty parlours be the preferred excerption over total- supporter beauty parlors or spas for narrow c be (1). Almost every women go to dig beauty beauty salons in order to look good.Nicer Nails salon is a beauty subprogramfulness establishment that supply a personal ser vice to predominantly distaff clientele. The salon plead discover c argon akin grooms, manicures as well as bang up enhancements which involve applying false nails, nail extensions, and decorating fingernails according to requirements including nail parties. We are accreditledgeable slightly hygiene and wellness issues relating to their profession.The desire to wear beautiful nails first b egan during the Ming Dynasty of China, long artificial nails were worn out by noblewomen as a status symbol indicating that, unlike commoners, and they did non do manual labour. In the early 19th century in Greece, the upper class women wore empty pistachio shells over their nails, then tardily spreading the artificial nails trend across Europe. In the new-made twentieth century, artificial nails for women became widely popular all(a) over the world (4). The fascination with beautiful nails has grown over the centuries and cash in ones chips a multi-billion stab fabrication. adjunct nail is now a thriving grocery store. Exploiting the development of technological and adjectival advancements, Nicer Nail salon depart entrust a wide-eyed-service nail technician with high-pitched customer satisfaction by delivering speedy, excellent service, an enjoyable atmosphere at an acceptable price.The demand for nail technician service is growing since women bemuse development the disposable income which they are keen to pass off on treatments that ordain debase the stress of everyday life. At Nicer Nail salon, our high qualified technicians lead offer a comfortable and relaxed environment. We are the true cut preceding(prenominal) otherwise nail shops. Our mission is to supply run that enhance our clients tangible appearance and mental relaxation.The timing is right for starting smart casualty one perfect location was found in Kingston shop centre. To achieve our objectives, Nicer Nail salon is seeking 40,000 in scoopow financing. This impart go out be compensable from the cash flow from the commerce and will be secured by the assets of the comp whatever.1.0 IntroductionBeauty industry in the U.K is booming, on that point is a lot of money to be made in this industry more(prenominal)(prenominal) than ever, making today a great time to collapse the industry. Salons and spas have become a cure to the fast-paced lifestyles nowadays.It has b een estimated that the aver eon person spends one third of her cosmetic budget on nail tutelage. Because todays discourseion regards captain nail care services increasingly fundamental.However, this billion pound industry screwing be influenced by changing in governance and economic. The give out will show how important it is for stage caper to react with the diverseness of environment. This report is non only an environmental analysis that supports the nail salon but too a financial plan to help the fit of opening Nicer Nail Salon.Product service2.1 Target customer female over 16 year olds. consort to the Nail magazine, nail salon patrons begins their habit early. 55% were under 25s when they first starting having their nails done professionally (1). Moreover, result from 2010 mass of Hours and Earnings show Women salary is highest in the age group at bottom 30-39 (12). On the other hand, nails art parties are on the rise in popularity, particularly for hen nights and teenage parties. Therefore, the need to offer an array of services to attract clienteles of all different age and income groups is necessary. For example, high-end clients are looking to be pampered. Although we cannot ignore the segment of customers, who would still want to have their nails done, dont want to spend out of their comfort areas.Services Principally, the salon will generate revenues from the direct nail technician services. A nail technician lets painting, nail filing, manicure, pedicure and artificial nails services including acrylics, airbrush nails and nail jewelry. The most popular new(a) foot service which is gel toenails also be provided. To a lesser extent, the salon generates revenue from sale of nail care and hand plectrum products. Furthermore, a deluxe service involves playing around with colored gels and dabbling in 3-D art will also be offered.Location the salon will be located on Fife Road, Kingston -upon-Thames, U.K. the location is strategicall y situated on one of the busiest street in Kingston undermentioned to a hairdresser importantly, there is a big car parking lot nearby the salon. This is a high profile area and easy penetration from all parts of the town. It is also very convenience for clienteles to locate our salon. set According to nail magazine survey, 11% of respondents have graspped having their nails done at a salon due to the expense (3). Thus it is important to offer service that available for customers who cant quite afford high-end lavishness salons.After sales service our customers will leave with tips on how to hit their nails healthier. To gain the clienteles trust, clean and safe quality products are used. In addition, clients are always welcome to question about our products. We are confident that grape vine about such a salon would be the best advertisement for this type of business, it is not only attract local clienteles but also reach customers far away the boundaries of Kingston. A cre ative and innovative expression always applies to generate very high levels of customer satisfaction. Providing customers with the option of troth appointments and consultations online.3.0 The Business environment (PESTLE analysis)Like both other business, the Nail salon has to act and react to external factors influences it. Since markets are changing all the time. guest develops new needs and wants, new competitors enter a market, new engineering means that new product can be made. Government introduces new legislation e.g. increase minimum wage means that the disposable income increase it may lead to higher level professional service. Therefore, it is essential to know the influence of external factors include governmental, economical, socio-cultural, technological, effective and ethical environment is (13).The governmental environment is one of the most important factors acting the operation of a business. It is part of the macro-environment which is external to an organ isation and completely beyond its control.The effect of political on business in general Politic consider business in varieties of levels.Business is affected directly by tax insurance policy high tax rate will attract less investor (chart 8 in appendix1).Policies of government are very important. For example UK is the democratic country, sight have full voting authority they would be able to acquire government that would work for the bet bourneent of the country. It helps businesses to thrive because of the good policies of the government.In contrast, if there is no democracy, there is no respect for the chosen government. Instability and disbelief in the country arise, government comes and goes and so will their respective decisions and policies. Business will suffer in such case as they do not know what will be their future. An example of instability political causes negatively influencing is the effects of anti-government remonstranceors on hotel operators in Thailand in D ecember 2008. map 9 (Appendix1) shows a loss of room revenue during period of stature tourist season. It is clear that the political instability is negatively influences travelers decision making (7).Furthermore, a stable political situation will attract more and more investors from other nations.The effect of the political environment on nail salonTax policy as a sole bargainer Nicer Nail salon owner has responsibility to pay for local business tax, VAT, corporation ceiling income tax for business and national insurance for employees. Because by doing so the government know the presence of the business.The conservative government late announced a new austerity plan. It causes higher wager rates, more business failures, lead to shaper rise in unemployment, directly affect the bank and national disposable income. As a result, the salon revenue may shave significantly.Economical environment It is believed that the level of demand for nail treatments can change fronting on con sumers level of disposable income. Businesses are in areas hard-hit economically will suffer because batch lost jobs they have to trim back their belts and take control of their spending habits. Since many people are of the depression that having nails done is not a necessitate thing. As a service industry, many beauty salons are being hit severely. Retail sale is another(prenominal) example of industry that suffers when the surrounding economy turns down. Chart 11 (appendix 1) shows a lot of retailers report losses and in fact go out of business.Fortunately, the economy in the UK is in fast retrieval (Chart 5 appendix 1). Additionally, chart 6 (Appendix 1) show household expenditure and resume employment rose (5). change magnitude in disposable income means that people can spend on luxuries like nail treatments.Furthermore, The British Lifestyles report by research group Mintel found that in the last decade we have spent 50% more on trips to hairdressing and beauty salons. T his proves that the beauty market increases continuously despite the fact that the economic market condition in the UK is still in recession. Regardless of the recession, there are still people who enjoy being pampered. It wreaks professional nail care is a business with many good advantages.Socio-cultural environmentEvery business works in society and consequently is subject to a motley of social influences. These influences include demography, social class and culture (13).For example, result from 2010 Survey of Hours and Earnings (chart 10 appendix 1) show that median earning of female employees grew. Increasing number of career women trends developing a high maintenance sentiment towards beauty regimes. This is reflected in the increasing tally of nail bars and services available.Nicer Nail Salon is the place where hard working people can come to get away from their daily stresses and be truly spoilt, a place that had the look and feel of a posh city salon.Nail arts can be a fashion statement and express individual for young clienteles who follow the latest trends and styles with a desire to be fashionable. Other services such as ear piercing, facial, and waxing eyelashes treatments are also offered to attract new clients. On the other hand, UK population is maturement (chart 4 Appendix I), ageing population means that the need to provide for a wider age range of clients is essential.Nodaway, Women earn more they will spend more money to look good. Plus the influence of fashion and changes in attitude toward health make professional nail care become booming industry.Technological environmentAdvances in technology can have a major impact on business success. For example, one of the easiest and speedy way to let high-end class clienteles know that the salon are employ to serving them with luxurious pampering is creating a website that speaks to their needs and wants. Since, today the earnings has major influence on the way consumers research and purc hase products. By scaning the nail salon with online portals the potential customers can easily reach the salon website which provide company name and contact information with online directories. Furthermore, option of consultants online 24/7 shows the salon is dedicated to deliver professional service.Moreover, electric nail file, unlike manual tool, enables a nail technician to filling acrylic nails frequently easier since the areas that were once hard to reach when filing manually such as cuticle areas and undersides of nails are now easily accessible. The electric nail example is a time saver it allows the salon to serve more clients in a day and this should increase profit.In 2010, 19.2 million households had an Internet friendship in the U.K. This represented 73 per cent of households and an increase of 0.9 million since 2009 (15) an wonderful increase in the number of home computer. This makes internet becomes one of the best ways to advertise the salon. On the other han d, improvements in technology will reduce the costs of nails equipment and products for example nail varnishes, jewellery. This should increase salon revenue.The legal environmentwellness and safety is important when working as a nail technician. Health and safety legislation is part of criminal law. distress to comply with the law has serious consequence for example if there is a severe risk to health and safety, the salon will be cosyd down until improvements have been made.The salon has to work in spite of appearance the legal and professional frameworks that set the standards for employment. The law demands that every place of work is a good and safe for clients, workers, and other visitors. For example, potentially hazardous substances like glues or acetones should be carefully handle. The salon must follow the Control of Substances Hazardous to Health Regulations 2002 (COSHH) (10).My salon also looks forward to Legal requirement such as accident insurance and safety dispo sable products. The salon will confirm to the Health and Safety guidance produced by Habia for nail technicians (9). This involves controlling and minimizing clamber exposure to nail products, disinfecting equipment for manicuring, cleaning and minimizing inhalation exposure to nail productsA nail technician should provide a service with apt care and skill, indoors a reasonable space of time and at a reasonable charge (The Supply of Goods and Services Act 1982). The nail technician will buck a criminal offence if published misleading advertising that deceives another trader (The Business Protection from Misleading Regulations 2008). Hence, it is crucial to know about the laws.Ethnical environmentMethyl methacrylate (MMA) is a monomer used in nail enhancement application but it should not be used in the salon due to its dangerous effect such as vesicate and nail loss for natural nails or respiration problem and bronchial asthma for some people even though it is still legal to use in the UK.Acrylic contaminated materials should be loaded in a bag before disposal in the bin reducing the amount of chemicals in the air. Gauze pads, cotton wool etc. that have been close in chemical should be disposed of in a sealed bag.The intended legal entity for my companyThe salon operates as sole trader. I have look and found that being a sole trader is the easiest way to start a small business like a nail spa. Accounting is much easier hence bills for accountants are lower. Plus no complicated paperwork is necessitate. Importantly, decision can be make quickly and close contact can be kept with clients and employees. However, you have to make decisions and provide all pay by yourself. The business income is the owner income therefore it is harder to reduce tax bill.Registration and regulationNail technicians are required to register their business and apply for a license to trade. The licence is known as a special treatment licence. The fee to register will depend o n each local authority.As a Sole Trader, the salon owner needs to register with Her Majestys Revenue and Custom (HMRC) as freelance at the moment the business has started otherwise the financial penalty will be charged.Financial planThe startup capital of 45,000 (appendix II for details) is required to use for the design, leasehold improvement, and equipment of the salon. There are many ways to raise finance for examples borrow from family, get a bank loan or from outside investors. I did research and found that the best way to raise capital for Nicer Nail Salon is borrowing from my kick upstairs because they provide with better harm than the bank or private loan guarantees.In order to have successful business with family an agreement letter (Appendix II for details) between me and my put up is necessary in case thing dont go as planned. This also helps to protect everyone from each other and eliminate all conversations that start with you neer said that. This scar emphasizes that my parent lend me 45,000 as a debt loan rather than equity. The interest will be paid quarterly to my parent account. Borrowing from parent is better than borrowing from private loan guarantees as the limit time frame stems is much longer. Compare to bank term loans, the interest rate is also much lower.Conclusion Based on the result from 2010 Survey of Hours and Earnings and British lifestyles I can shut that Nicer Nail Salon is a necessary service nowadays. Owning a nail salon is promising as little start-up cost is needed and importantly, it is neer out of season., it will be a good start of firing somewhere with nail business. Explain in greater details of executive compact how and why the conclusions were reached. This is based on result of findingsAppendix ITable 1 shows the places where customers have their nails done.Table 2 shows how often they have their nails doneTable 3 show the main reason stop customers having their nails done at a salonChart 4 Estimated and intercommunicate population and percentage of population by age group, UK, 1984, 2009 and 2034 (3)Chart 5 show the economy from 2006 to 2010 (2)Economy grows by 0.7% in Q3 2010Chart 6show consumer Spending trend from 2006 to 2010Household expenditure grows by 0.3% in Q3 2010Household final consumption expenditure percentage change, quarter on previous quarterChart 7 GDP and the Labour trade (5)From recession to recoveryThe labour market in recession and recoveryThe UK continues its path of recovery from recession(5)The UK economy over the past trine recessionsAccording to the latest figures, UK GDP grew by 0.7 per cent in quarter three 2010.GDP grew by 0.7 per cent in quarter three 2010. This was the after part consecutive increase since the end of the recent recession. The 0.7 per cent growth caulescent fromService sector (0.4 per cent)Construction sector (0.2 per cent)Production sector (0.1 per cent) harvesting in the Service sector was driven by the government and other serv ices, transport storage and communication and distribution hotels and restaurantsChart 8 high tax rates discourage investment by lowering investments upshot(6)Chart 9 Daily hotel reservation requests in Thailand from 16/10/2008 to 16/12/2008(7)Chart10 Earnings 2010 survey of Hours and earnings (12)Chart 11UK Retail Sales during recessionAppendix IIBelow is the summary of money needed to start up Nicer Nail SalonStart-up Expenses take in deposit 1,500Legal 500Brochures 500Stationery 1,000Sundry salon equipment 2,500Total Start-up Expenses 6,000Start-up Assets NeededCash Balance on Starting hear 15,000Other Current Assets 24,000Total Assets 39,000Total Requirements 45,000This is an installment promissory note between me and my parentInstalment Promissory line of descent (17)Full call ____Kim Anh Tran_____Address___Kingston -upon- Thames , UK, KT2 7SB(Hereinafter referred to as the Borrower/s)Full rings ____Kim Pham____________________________Address Kingston -upon- Thames , UK, KT2 7SB(Hereinafter referred to as the Lender)For nourish received, the Borrower hereby unconditionally promises to pay to the order of Lender the sum of __45,000 together with interest accrued at the rate of __ten six_percent (_6%) per year on any unpaid balance.Payment TermsBorrower will pay ______one__payment of __2,000___each at unceasing quarterly intervals on the __first day of each month, starting on the 11/01/2011 until the Principal amount and accrued interest is paid in full. solely payments shall first be applied to outstanding late fees, then to interest and the balance to the Principal amount.P refundThe Borrower may prepay this Note in full or in part at any time without allowance or penalty. All prepayments shall first be applied to outstanding late fees, then to accrued interest and thereafter to the principal loan amount. dress of PaymentPayment shall be made at the above stated address of the Lender or at such place as may be designated from time to time in wr iting by the Lender or holder of this Note. For ease of payment the Borrower may pattern the option to effect payment by direct deposit or electronic transfer of funds into the account of Lender as contract in writing.Late Payment FeesIf payment is not made within _10___ days as stipulated in the payment terms the Borrower shall pay an special late fee in the amount of __500.Acceleration of Debt upon DefaultIf the Borrower fails to make any payment when due for whatever reason and the Lender provides ceremonial of such failure, the Borrower must effect payment of the amount due within __30__ days, failing which the Lender can demand immediate payment of the finished outstanding Principal amount and accrued interest.Collection FeesIn the suit of default this Note may be turned over for entreaty and the Borrower agrees to pay all reasonable legal fees, collection and enforcement charges to the extent tolerable by law, in addition to other amounts due.SecurityThis Note is secur ed by a Security Agreement which will remain in full force and effect until this Note and the Security Agreement are released in writing by the Lender.TransferThe Lender may transfer this Note to another holder without notice to the Borrower and the Borrower agrees to remain bound to any attendant holder of this Note under the terms of this Note.Replacement of NoteThe Borrower agrees to do a new Note with the same terms and conditions and remaining entertain in the event that this Note is lost, stolen or mutilated. The Lender shall release the Borrower of all obligations under the lost, stolen or mutilated Note in lieu of a replacement new Note.Joint and Several LiabilityAll Borrowers or Co-signors identified in this Note shall be equally liable for the repayment of the debt described in this Note.Borrowers WaiverThe Borrower waives demand and presentment for payment, notice of non-payment, off-set, protest and notice of protest and agrees to remain fully bound until this Note is paid in full.Lenders IndulgenceNo relaxation, indulgence, waiver, release or concession of any terms of this Note by the Lender on one precedent shall be binding unless in writing and if granted shall not be applicable to any other or future occasion.Binding issueThe terms of this Note shall be binding upon the Borrowers successors and shall accrue to the benefit and be enforceable by the Lender and his/her successors, legal representatives and assigns.JurisdictionThis Note shall be construed, interpreted and governed in accordance with the laws of the U.K and should any provision of this Note be judged by an appropriate court of law as invalid, it shall not affect any of the remaining provisions whatsoever.GeneralWhere appropriate words signifying one gender shall include the others and words signifying the singular shall include the plural and vice versa.Paragraph headings are for convenience of reference only and are not intended to have any effect in the interpretation or det ermining of rights or obligations under this Note.Signed on 10/01/2011(1) Borrowers Name ___Kim Anh Tran__________________________(2) Lender Name _____Kim Pham________________________