1:Type of Business

Kishan's Hairdressers















Business type

The business type I will be choosing for my hairdressing business will be sole trader. This is because I have got good business knowledge and can run the business independently. There are several advantages of choosing this type which will benefit me. Those are:

1. All the profit is mine
2. Can make my own decisions
3. Open and close at my own time

There are also some few drawbacks which could make it hard for me, which are:

1. Can be tiring
2. Carry a large amount of responsibility
3. Unlimited liability

Aims and Objectives

Aim: I want to become the number one hairdresser in my location
Objectives:

1. To make a turnover of £12000 each month.
2. I need to receive 1715 customers in a month

Unique selling point

A unique selling point of my business would be that I provide an efficient service for a reasonable price. This is because customers will be happy to pay a low price and receive a quality service they are satisfied with. Even if my service is good but my price is high, that will put customers off one day. The high price will make them keep an eye out for other barbers who provide the same service as me or better.

Potential demand

In order to do good business it’s vital for me to find out potential demands. I need to indentify the methods to find the target market for my business. I can find out my target market by doing: market research, sales forecast, customer behaviour analysis, competitor analysis etc.

Balance between personal and business needs
It is vital for me to keep a balance between personal and business needs. Loads of people suffer from stress which leads to insufficient results in the business. Therefore I need to be careful and keep the balance. There are various types of personal needs which will affect my business life sooner or later, such as kids, elderly people etc. Therefore having an idea how to balance and tackle needs will help me in the long run.

Potential (estimated) Profitability

Gross profit = (TSR) Total Sales Revenue – cost of sales

Assume: Total Sales Revenue = £84,000 per year
Cost of sales = 50% of Sales Revenue
Number of customers = TSR / Revenue per sale

Therefore: Gross profit = £84,000 - £42,000 = £42,000

Net profit = Gross profit – Expenses

Assume: Expenses = 50% of Gross profit

Therefore: Net profit = £42,000 - £22,000 = £22,000

Business trends

I need to be up to date with my business trends. In simple words “new fashion”. So for my business I need to know all the new hair styles. If I don’t know it then I won’t be able to fulfil customer’s needs. Therefore this will affect my turnover.

PEST

I will be linking political, ethical, social and technological analysis to my business.
P- Political factor can increase my business. i.e. Headscarf banned in France. Therefore Muslim women need to maintain their hair.
E- Due to economic crises and cuts people may not visit their local barbers that regularly.
S- Cultural influences could affect styles. i.e. Sikhs
T- I may need to come out with new technology to improve my service. E.g. nose trimmers


Caroline Marsh

As a mentor I would choose Caroline. This is because I think that’s she’s an excellent advisor with loads of experience which will help me. She is apart of the worlds first property investment market. I think she has got interesting background journey and she knows the seven steps how to start a business. Therefore I think her advice and ideas will motivate me and this will lead to better outcome.

Business planning

I think a well structured business plan will help me to gain more from my new business. A business plan will make me consider things that I will need in my business. E.g. a loan
Without having a stable and genuine business plan will make it really hard for me to obtain funds. Due to loads of frauds and crises banks are pretty tough with giving out money. So, in my plan I need to show how much I need in total a why I need that amount. There are special stages which would make your business plan more effective:

1. Type of business
2. Target market
3. Human Resources
4. Legal & Physical resource
5. Financial Resources
6. Growth and development
7. Financial contingency