Business Plan Final Version (RRBN).edited

6.1 Competition Analysis 7. Marketing Strategies (Bijaya, Rohithnag ) 7.1 Introduction 7.2 Marketing Mix 8. Fundraising (Rohithnag) 8.1 Capital Requirements 8.2 Risk/Opportunity 9. Financial Forecast (Rohithnag, Bijaya ) 9.1 Forecast 10. References (Rohithnag, Rupinder Kaur, Bijaya, Neetu) RRBN SALON 3 3 Other participations by Teams: Compiler: Bijaya, Neetu Editor & Designer: Neetu, Rupinder, Bijaya Grammar: Neetu, Rupinder APA Reference List: Rohithnag, Bijaya APA Table/Image Captions: Rupinder, Rohithnag 3

Management Team: Salon Manager Financial Manager RRBN SALON Rupinder Kaur brings five years of experience in operational management, having served as an assistant manager in esteemed organizations. In overseeing the comprehensive administration of the cosmetology enterprise, she adeptly manages day-to-day activities and prioritizes client engagement. Leveraging substantial expertise in the cosmetic sector, she is dedicated to maintaining high proficiency levels and ensuring optimal client satisfaction. Rohithnag has 6 years of extensive knowledge of finance in financing and accounting while working as a financial assistant in a large organization. He assumes the roles of proprietor and financial manager inside the business. The individual will develop budgets, formulate economic forecasts, oversee account management, and maintain its robust financial well-being. Bijaya is in charge of advertising and marketing, having 4 years of experience in evaluation experience, market study, and abilities of systems. His task is to develop and implement strategies to attract new customers and retain existing ones. he will also manage the salon's website and social media channels, leveraging his expertise to reach the target market effectively. 6 6

4. Product/Service 4.1 Product/Service Description Our salon provides different services for people's needs, such as hair care, skin care, nail art, bodywork and makeup. Here is a detail of our service; RRBN SALON Hair Care Skincare Makeup Beauty Nail-Art Men’s Grooming Bodywork 9 9

4.2 Uniqueness and Competitive Advantage We are a vibrant celebration of diversity and inclusivity at our salon, making us more than just a destination for beauty. Our commitment to fostering a friendly and inviting environment for clients and staff is the foundation of our distinctive approach. We ensure our salon represents its diverse community by conducting regular diversity assessments. As we understand it, inclusion is about giving everyone a sense of being heard, valued, and accepted, regardless of appearance. Established on the foundation of trust, our salon culture values transparency, legitimacy, and decency as fundamental principles that shape our welcoming atmosphere and make everyone feel included and appreciated. Promoting diversity and inclusivity is something we at our salon are passionate about. Unconscious biases are addressed through thorough staff training, guaranteeing a courteous atmosphere. With an objective and impartial recruitment process, we prioritize diversity in our inclusive hiring practices. Offering a wide range of options to meet the diverse needs of our community, we strive for excellence in our products and services. Our product line is carefully chosen to accommodate a wide range of needs and textures, and our stylists receive specialized training to work with all hair types. Regardless of background, we are a place where people come to find services and products catered to their individual needs, making us more than just a salon. We strive to create a welcoming environment for everyone. Our genuine dedication to diversity, our belief that beauty knows no bounds, and our commitment to fostering a safe and trusting environment is what give us a competitive advantage. Come along on this journey where everyone is vital to our inclusive and diverse family, not just a client or a team member. 4.3 PRICING STRATEGY Pricing strategy : Price is the amount a business charges for a good or service. It takes balance to determine what your service should be priced at. Low prices are sometimes the best choice because a service may sell well without generating revenue. In this way, a retailer that offers a high-priced service may lose market positioning due to low prices. Sometimes, this is the best choice because a service may sell well without generating sales and "price out" more thrifty customers. Treatments: Prices: Packages offer: Price: RRBN SALON 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12

Industry Analysis: Both big chains and individual salons are significant participants in the salon sector. The industry provides a broad range of services, including skincare, makeup, haircare, and nail care, which enables salons to expand the range of services they offer. The growth of eco-friendly and organic beauty products has impacted trends in the industry. In addition, the sector is using technology more and more for marketing, appointment scheduling, and customer interaction. 5.2 Customer analysis: Demographic Profile: People living in our city's urban and suburban areas between 18 and 45 comprise our main target demographic, including men and women. These people usually have middle-class to upper-class incomes, allowing them to regularly treat themselves to salon services. Serving people who live 15 to 20 miles from our salon, we attract customers from a variety of the city's neighbourhoods and communities. Numbers of adults aged 20 to 64 In 2027, 57.4% of all Canadians are expected to be members of this group, a decrease from the current 65.8%. In absolute terms, the cohort is expected to slightly grow, mostly due to immigration. Many of the baby boomers who are still in this population will move into the 65 and older group throughout the five years leading up to 2026. Birthrates have decreased since the 1970s, which has limited the population entering this section of ageing, thus these people won't be replaced at the same rate they are leaving it. RRBN SALON 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15

Treatment – $40+ FORME Hair Salon Men’s Cut – $45 – $65 Women’s Cut – $40 – $65 Color – $80 – $280+ Perm – $40 – $280+ Treatment – $35 – $250+ Barriers; In the Vancouver area entering the Salon business like any other market involves a number of challenges. Some of them are;  Regulations and permits - Meeting local regulations and getting a business license is quite tough. Along with that, we also need permits for the salon business, which is time-consuming. https://vancouver.ca/doing-business/licenses-and-permits.aspx  Real state cost - In the current situation due to the crisis of real estate the cost of commercial space is relatively high. Rental costs can be a significant barrier for a new Salon business.  Branding and Marketing - In a crowded market, marketing effectively and building a brand can be a significant challenge for newcomers.  Manpower and Labor Costs - Finding skilled professionals and managing costs to hire them can be a barrier as well. It becomes expensive, especially for newer businesses.  High competition - Vancouver has numerous established salons and spas which makes competition tough for newer businesses to establish. Market distribution There are a total of 1956 hair salons in British Columbia. (Smart scrapers data - 2023). The market size of hair and nail salons in British Columbia is $703995.1 bn, with 9,368 employees and 5,536 businesses. Some of the hair salons in Vancouver and their total revenue are shown in the graph below: (Data from zoominfo.com - 2023) RRBN SALON 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18

Promotions Referred to the point 7.1 References Data from thebestvancouver.com – 2023 https://www.thebestvancouver.com/best-hair-salon- vancouver/, Data from zoominfo.com – 2023 https://www.zoominfo.com/c/tlhairsalon/1285646633, Smartscrapers data – 2023 https://rentechdigital.com/smartscraper/business-report- details/canada/british-columbia/hair-salons. 8. Fundraising 8.1. capital requirements Sources of fund: Source of Funds Amount Percentage Owner's Contribution $80,000 26.67% Term Loan $120,000 40.00% New Equity Financing $100,000 33.33% Total $300,000 100.00% The table illustrates the allocation of financial resources necessary for the implementation of Saloon. We have made the contribution of $80,000, which accounts for 26.67% of the total investment required. This amount has been obtained from the personal finances of the founding team up till now. The purpose of seeking a term loan is to secure a loan amount of $120,000, which represents 40.00% of the overall capital required. This loan will be obtained from financial institutions or other lending sources, and its primary objective is to provide financial support for both the initial launch expenses and ongoing operating expenditures of the venture as per Adams, (2022). An extra sum of $100,000, or 33.33% of the overall cash, will be obtained via possible investors or partnerships in the form of RRBN SALON 21 21 21 21 21 21 21 21 21 21 21 21 21 21 21

equity finance to augment the capital needs of the firm. The primary objective of this financing approach is to get the necessary funds amounting to $300,000 in order to facilitate a successful launch and maintain the ongoing operations of Saloon during its crucial first phase. Use of funds Category Amount Percentage Sales & Marketing $90,000 30.00% Capital Expenditures $100,000 33.33% G & A Expenses $50,000 16.67% Other $60,000 20.00% Total $300,000 100.00% An explanation of the categories: The Sales & Marketing department has been granted $90,000, which accounts for 30.00% of the total funds. This budget will be used for strategic marketing initiatives, advertising campaigns, promotional activities, and the creation of branding strategies. The primary objective is to acquire and maintain consumers (Kuan et al. 2021). The allocation of money for capital expenditures in the establishment of the salon amounts to $100,000, which represents about 33.33% of the total funds. This allocation encompasses many aspects such as leasehold improvements, furniture, fixtures, equipment, and an initial inventory of high-quality beauty goods. The General and Administrative (G&A) expenses amount to $50,000, representing 16.67% of the total funds. These expenses are allocated towards paying administrative charges, licensing fees, legal bills, insurance, and other necessary overhead expenditures. An allocation of $60,000, which accounts for 20.00% of the total funds, has been set aside to address unanticipated expenditures, contingencies, or any extra working capital requirements that may arise during the first phase of operations. According to Nadila et al. (2019), the allocation of finances in this manner assures a comprehensive strategy for launching and maintaining the salon's commercial operations, with a particular emphasis on critical aspects such as marketing, needed capital investments, and necessary operating expenses. RRBN SALON 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22

8.2 Risk opportunity The launch of Saloon comes as a growing number of people place a premium on personal grooming and health and fitness. The beauty business is a growing market that is now worth more than $500 billion worldwide, therefore there is a lot of room for expansion in this field (Slyvia et al. 2020). This expansion is being fueled by a rise in the demand for beauty treatments across all age groups as people take better care of themselves. The inspiration for opening a salon came from a desire to provide people with a relaxing space to indulge in high-end cosmetic services while also giving them the opportunity to rediscover their inner glow. Offering a broad variety of high-quality treatments in a warm and inviting setting, Saloon aspires to fill a void in the market by fusing luxury with approachability. The reasons we're well-positioned to seize this opportunity are multifaceted. Our business model hinges on several key strengths: 1. Unique Service Offering: Saloon distinguishes itself by providing a comprehensive range of services, catering to diverse clientele seeking top-notch beauty treatments, skincare solutions, and haircare services, all under one roof. 2. Quality and Innovation: Our commitment to using premium products, employing highly skilled stylists and aestheticians, and incorporating innovative techniques ensures an unparalleled customer experience (Adams, 2022). 3. Customer-Centric Approach: Our focus on customer satisfaction, personalized services, and attention to detail sets us apart in an industry where relationships and trust are paramount. 4. Strategic Marketing and Branding: A strategic and compelling marketing approach, combined with a strong branding strategy, will help us effectively reach our target market, ensuring visibility and engagement within the community. 5. Location and Ambiance: Our salon's prime location in a high-traffic area, coupled with a well-designed, inviting ambiance, will attract urban professionals, beauty enthusiasts, and those preparing for special occasions. 9. Financial Forecast RRBN SALON 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23

9.1 Forecast Developing a monthly sales projection, including three distinct scenarios (best case, anticipated case, and worst case), is a fundamental component of strategic business planning. Below is a comprehensive projection outlining the anticipated performance of Saloon, a salon enterprise, throughout the first 12- month period. Month Best Case ($) Expected Case ($) Worst Case ($) Month 1 $15,000 $12,000 $10,000 Month 2 $18,000 $14,000 $11,000 Month 3 $20,000 $16,000 $12,000 Month 4 $22,000 $18,000 $14,000 Month 5 $25,000 $20,000 $15,000 Month 6 $28,000 $22,000 $16,000 Month 7 $30,000 $24,000 $18,000 Month 8 $32,000 $26,000 $20,000 Month 9 $35,000 $28,000 $21,000 Month 10 $38,000 $30,000 $23,000 Month 11 $40,000 $32,000 $24,000 Month 12 $42,000 $34,000 $26,000 1. Best Case: If the salon's marketing is successful, its clientele is dedicated, and word of mouth is favorable, then the business should increase steadily each month as per Sylvia et al. (2021). The sales figures have been constantly rising and improving. 2. Expected Case: The most likely scenario is a modest but consistent revenue growth rate. Assuming market research and industry data, this scenario makes a reasonable and feasible estimate. RRBN SALON 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24

3. Worst Case: according to Adams (2020), in the worst situation development is expected to slow down. It ensures that the company will be able to satisfy its basic financial obligations even if there are unforeseen external obstacles or economic downturns. References Adams, C. T. (2022). Business Planning Strategies to Sustain Hair Salons (Doctoral dissertation, Walden University). https://search.proquest.com/openview/f41df45cea0e20489a731fec8a3d419c/1?pq- origsite=gscholar&cbl=18750&diss=y Kuan, N. Y., Yang, F. C., & Fei, L. K. (2020). An Application of Quantitative Strategic Planning Matrix for Small Business: A Case of a Beauty Salon. Global Business & Management Research, 12(2). http://www.gbmrjournal.com/pdf/v12n2/V12N2-3.pdf Nadila, K., & Hasan, G. (2022, February). IMPLEMENTATION OF DIGITAL MARKETING PLAN TO INCREASE BRAND AWARENESS SALON JAVE HAIRDRESSING. In ConCEPt- Conference on Community Engagement Project (Vol. 2, No. 1, pp. 1031-1034). https://journal.uib.ac.id/index.php/concept/article/view/6514 Sylvia, M., & Sumadhinata, Y. E. (2021). Business Development of Lie Tulip Salon Using a Canvas Business Model. Technium Soc. Sci. J., 17, 343. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/techs sj17§ion=32 The business model versus the business plan. (2016). Engineering Entrepreneurship from Idea to Business Plan , 149–152. https://doi.org/10.1017/cbo9781107261389.029 Ekanem, I. (2017). Introduction to the business plan. Writing a Business Plan , 9–10. https://doi.org/10.4324/9781315465814-3 Lucash, P. D. (2011). Disaster and Business Continuity Plan. Medical Practice Business Plan Workbook , 81–84. https://doi.org/10.1201/b11737-18 Saloon, ante-room, vestibule, lobby, etc. (2012). The Gentleman’s House , 193–195. https://doi.org/10.1017/cbo9781139177009.064 RRBN SALON 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25

CANADA BUSINESS ENVIRONMENT PROFILES REPORT (July 2022) Consumer spending https://my.ibisworld.com/ca/en/business-environment-profiles/ca003/business-environment-profile S.M.G. (2022a, June). IBISworld . Https://My.Ibisworld.Com/ca/En/Industry/44612ca/Industry- Outlook. Retrieved August 13, 2022, from https://my.ibisworld.com/ca/en/industry/44612ca/industry-outlook RRBN SALON 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26