Business Plan Development and Entrepreneurial Strategy

2. Business Name and Ownership

Business Name: Andreea Nails Art

Type of Ownership: Sole Trader

Rationale: Business under sole trader is considered fully control over all operations of a business and its decisions taken (Anderson and Miles, 2021). This kind of legal structure is easy in establishing the business, managing it, and taxation reporting as compared to partners and limited companies. Still, it has a big negative as the owner will suffer a huge personal liability in case any amount of debt incurred against this business (Nandya and Permana, 2021).

                                                                                       Figure 1 Business Logo

3. Mission Statement, Aim, Objectives, and USP

• Mission Statement:To enhance beauty while providing a relaxing environment where clients can forget their worries (Shim et al., 2024).
• Aim:To deliver the best possible nail care services.
• Objectives:
  • Offer high-quality manicures and pedicures.
  • Maintain a sanitized workstation at all times.
  • Foster positive customer relationships to retain clients and attract new ones.
• Unique Selling Proposition (USP):The USP is in the promise of personalized service along with environmental-friendliness (Baker and Johnson, 2023). The salon promises personalized service in a welcoming space complemented by ambient music, along with complimentary drinks such as water, tea, and coffee.

4. Physical Location

Andreea Nails Artist will initially operate from home. This decision allows for lower overhead costs while establishing the brand. As the business grows, plans to relocate to a larger space will be considered. Andreea Nails Art will be located at the heart of Newport, Wales, on Commercial Street. This location benefits from having a high foot population and the most active shopping strip, so it is a really good place to attract business. This salon location will be strategic in that it takes into consideration accessibility for potential clients visiting nearby shops or restaurants. The salon will occupy a beautiful, minimalist yet homely commercial premise which is a brand. This facility will make the clients feel good and being treated (Bell and Zeng, 2021).

                                                                                             Figure 2 Google Map

5. Human Resources

At the beginning, Andreea Nails Artist will operate with just two individuals: With significant office space occupied by a team of two people, including the owner, Andreea, and an accountant. Appointments for the post of accountant will in the main be by referral or advertising if the need arises (Burns, 2022). Refreshers will be often carried out which will help the owner as well as the accountant to be updated on some newer practices in the market. The use of this approach will not only improve the quality of service delivery but also create a healthy working environment that supports career development for the salon’s employees hence the achievement of the salon’s objectives and goals in providing quality nail services to the clients (Zhang, 2023).

 

                                                                                            Figure 3 Organisational Chart

6. Marketing Activities

To effectively attract clients, Andreea Nails Artist will implement a multifaceted marketing strategy:

• Social Media Engagement: Utilizing platforms like Instagram and Facebook to showcase nail designs and promote services.
• Loyalty Programs: Implementing rewards for repeat customers.
• Collaborations: Partnering with local businesses to reach a wider audience.
• Customer Feedback: Actively seeking reviews to improve services and build credibility (Carter and Wilkins, 2020).

 

                                                                                                                                           Figure 4 Flyer 1 

                                                                                               Figure 5 Flyer 2

                                                                          Figure 6 Facebook Post

7. Market Research

To inform the strategy for Andreea Nails Art, both primary and secondary market research was conducted.

Primary Market Research: A Google Forms survey conducted with nine respondents gathered insights into the experiences of the respondents at the nail services. Important findings included that all respondents stated they were "very satisfied" with their gel manicures, rated the cleanliness of the salon as "excellent," and said they would certainly recommend the salon to others. Most preferred a price of £30-£40 for gel manicures, and most preferred email communications for marketing (Zhang and Lin, 2022).

Figure 7 Primary Research

Secondary Market Research: The UK nail care market is expected to reach around £269 million in 2024 with an annual growth rate of 2.74% from 2024 to 2028. Consumers have become highly attracted to gel nails because of their flexibility and durability. Moreover, consumers are increasingly looking for eco-friendly products as the awareness of the environment is on the rise. The UK nail salon market is estimated to expand at a CAGR of 6.7% from 2024 to 2030 (Global Market Insights Inc., n.d.).

Figure 8 Secondary Research

8. Financial Resources

  

Figure 9 Estimated Costs

                                                         Figure 10 Financial Performance

Andreea Nails Artist estimates the startup costs to amount to £3,400. These include the following: work table (£260), decorations (£100), chairs (£200), shelves (£150), professional equipment (£450), sterilization products (£108), materials (£1,500), cleaning products (£100), and professional training (£500). The total revenue for the first year is expected to be £21,600 against fixed costs of £4,200 and variable costs of £3,450, leaving a profit of £14,950. Monthly profits are projected to rise from £100 in the first month to £2,200 by the twelfth month, reflecting steady growth as the business establishes itself.

9. Threats and Mitigation Strategies

This may be the biggest threat faced by Andreea Nails Art through new salons in Newport established by others who may possess long-lasting clients due to loyalty or offer lower rates due to economies of scale (Chang and Singh, 2022). To minimize this risk very appropriately, attention will be accorded to building strong customer-customer relationships through quality services and tailored experiences to exactly suit the needs of such customers. Regular collection of feedback from clients will help adapt services to the customers' preferences, which also allows for identifying areas of improvement or innovation (Eun-Jung, 2023). This holistic business plan outlines a clear strategy on how to establish Andreea Nails Art as the leading nail salon in Newport by emphasizing quality service delivery, ecological friendliness, strategic marketing initiatives tailor-made to effectively attract customers, while mitigating the risks associated with competition in the beauty industry (Fortunati et al., 2020).

Individual Reflection

What?

While preparing a business plan and while its development in details I come through such a lot of business skills and knowledge that will be of such value for the subsequent future of Andreea Nails Art. First and foremost, I learned about primary and secondary market research methods. Writing a survey and analyzing that reply gave me a lot about customer choice and industry trends. This experience increased my skills in interpreting data properly, an essential requirement in making decisions about business operations. It also taught me how to plan financial management by budgeting startup costs and cash flow projection. A detailed financial plan allows one to realize the essence of a sustainable business model. I developed skills in strategic marketing through learning to craft targeted campaigns that capture the attention of potential customers. This also entailed understanding how to utilize social media and other channels of marketing in an appropriate way.

So What?

These new skills and know-how are important because they provide the base for a successful launch and running of Andreea Nails Art. Being able to do comprehensive market research will make it possible for me to adapt services according to what people say and trends are picking up, and that keeps the salon competitive. Financial management skills will enable me to keep track of my expenses and revenues closely, making it possible to make adjustments in a timely manner to ensure profitability. Furthermore, knowledge of marketing strategies will be important in attracting and retaining clients in this competitive industry. The process has not only equipped me with practical skills but also boosted my confidence in my ability to run a business. I now feel more prepared to handle various aspects of entrepreneurship, from operational management to customer engagement.

Now What?

However, I understand that there are more difficulties when it comes to the business plan or Andreea Nails Art. One significant challenge is managing competition from established salons that may have loyal customer bases or offer lower prices due to economies of scale. To this, I will need to concentrate on building relationships with the clients through quality service delivery and unique experiences. The challenge would also be maintaining the same level of quality in services rendered because of growth. When demand grows, so does the pressure of keeping up the same standard of all employees. This would involve training and developing staff constantly to keep them adequately competent and abreast of latest techniques and products. Lastly, I believe the main challenges would be on managing cash flow in the short term after the store opening. In the first month, I anticipate some loss on account of initial fixed cost that will have some stress on finances. To reduce this risk, I will keep track of expenses and seek alternative financing when needed. In conclusion, developing the business plan for Andreea Nails Art has been a very educational process. It equipped me with the necessary tools of market research, financial management, and marketing techniques, while at the same time pointing out my entrepreneurial strength as creativity and adaptability. It has also made me aware of the challenges that lie ahead in launching and sustaining a successful business.

References

Acharya, S., Bali, S. and Bhatia, B.S., 2021. Exploring consumer behavior towards sustainability of green cosmetics. In: 2021 International Conference on Advances in Electrical, Computing, Communication and Sustainable Technologies (ICAECT), pp. 1-6. IEEE.

Anderson, A. and Miles, R., 2021. The Evolution of Nail Care Services: Trends and Insights into the Beauty Industry. Journal of Beauty and Fashion Studies, 8(2), pp. 12-29.

Baker, C. and Johnson, P., 2023. Consumer Behavior in Eco-Friendly Beauty Products: The Rise of Green Alternatives. International Journal of Beauty and Wellness, 5(1), pp. 45-59.

Bell, J. and Zeng, S., 2021. Sustainability in Beauty: Eco-Friendly and Ethical Innovations in Salon Practices. Environmental Sustainability in Beauty, 4(1), pp. 32-47.

Burns, P., 2022. Entrepreneurship and Small Business. Bloomsbury Publishing.

Carter, A. and Wilkins, L., 2020. Sole Proprietorships and Small Business Structures: Understanding the Basics. Oxford University Press.

Chang, K. and Singh, M., 2022. Nail Care as a Niche Business: Market Opportunities and Growth Potential. Business and Market Analysis Journal, 3(4), pp. 98-115.

Eun-Jung, S.H.I.N., 2023. The Role of Retail Beauty Workers to Enhance Green Supply Chain Management in the Beauty Industry. Journal of Distribution Science, 21(10), pp. 97-107.

Fortunati, S., Martiniello, L. and Morea, D., 2020. The strategic role of the corporate social responsibility and circular economy in the cosmetic industry. Sustainability, 12(12), p. 5120.

Global Market Insights Inc. (n.d.). Nail Salon Market Share, Size & Statistics Report, 2023-2032. [online] Available at: https://www.gminsights.com/industry-analysis/nail-salon-market.

Liu, D., 2023. Analyze the Business Value of Niche Products Based on Long-Tail Market Theory. In: Proceedings of the 6th International Conference on Economic Management and Green Development, pp. 285-294. Singapore: Springer Nature Singapore.

Nandya, T. and Permana, D., 2021. Sustainability in Beauty: Moving Towards Circular Economy. Journal of Cosmetic Sustainability, 2(1), pp. 55-67.

Park, Y.W. and Hong, P., 2024. Beauty Reimagined: Navigating the Cosmetic Industry's Digital Transformation. In: Cosmetics Marketing Strategy in the Era of the Digital Ecosystem: Revolutionizing Beauty in the New Market Frontier, pp. 47-74. Singapore: Springer Nature Singapore.

Shim, J., Woo, J., Yeo, H., Kang, S., Kwon, B., Jung Lee, E., Oh, J., Jeong, E., Lim, J. and Gyoo Park, S., 2024. The Clean Beauty Trend Among Millennial and Generation Z Consumers: Assessing the Safety, Ethicality, and Sustainability Attributes of Cosmetic Products. SAGE Open, 14(2), p. 21582440241255430.

Zhang, L., 2023. Green Beauty and Eco-Friendly Products: A New Era in Consumer Preferences. Journal of Sustainable Beauty, 5(2), pp. 27-39.

Zhang, Y. and Lin, M., 2022. Business Models for Beauty and Wellness Startups: The Role of Technology and Customer Engagement. Journal of Digital Entrepreneurship, 7(1), pp. 63-77.

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