Watson & Boston: Providing High-Quality Hair And Skin Services At Affordable Prices

Nature of the Business

The business planner will launch the business which basically deals in servicing the customer and the business represents the barbing salon. The name of the business decided by the business planner is Watson & Boston and this will be located in the part of the United Kingdom. The salon deals in hair services, body care services and other services. Furthermore, the business planner also makes organic skincare and body care products to attract large customers.

The Business Strategy Canvas’ value proposition seems to be a rare combination of goods and services that add value to the clients by finding a solution or adding value to the consumer.

The business summary of Watson & Boston is that the main motive of the business manager is to provide the services to its clients with high quality and at affordable prices. Another business planner wants to expand the business in the other part of the UK.

Business Offering  

Watson & Boston will provide multiple services and products to their customers

Services includes

• Hair services:Hair spa, haircutting, head massage and hairstyling
• Body care:Body polishing, waxing and body massage
• Makeup:Eyes makeup, bridal makeup and horror makeup (Yuliazmi and Gata,  2020)
• Other services:Threading, nail art, nail extension and manicure

Products include: Organic skincare and body care products

Adding Value for Potential Customers 

• Complimentary services:The business planner must have to provide complementary services to their clients like if the clients take the assistance of £3000 from the salon and the complimentary services will be free nail art and extension.
• Participate in a hair and beauty exhibition:Establishing a booth at a hair exhibition is a fantastic method of raising the salon’s brand recognition and introducing itself to new customers. Beauty and hair exhibitions are a wonderful method to show off their skills (Veerupen, 2021).

Differentiation  

Three competitors of Watson & Boston are as follows:

• Look fantastic:Provide services to only females
• Leeds salon:Provide services to only males
• Kia salon:provide services to both genders but does provide products

The Watson & Boston will be unique from its competitors because it provides services to both type’s gender and all types of age groups and this salon also deals with providing services to children. Another salon Watson & Boston makes organic skincare and body care products all these things make this salon unique in the market.

Target Market 

The target market of the Watson & Boston will be the youngster both males and females, working women, people who suffer from skin diseases, college students, acne problems people and rich class people. The age between of 17 to 35 will be the target market for the salon business. The company uses marketing strategies to attract large customers by providing cash discounts, refund policies, and complementary services (Riley, 2021).

The business planner uses online modes like Instagram and Facebook and referrals for the distribution of their product and services. Another is the business also distributes the products by making door to door services. Lastly, the business makes the distribution via the use of pamphlets and brochures with some amazing offers.

Competitors 

PEST analysis of Watson & Boston

• Political:The guidelines of the governments in the nations where Watson & Boston works have a significant impact on the company’s operations. Various countries have imposed safety standards that must be followed.
• Economical:The firm’s sales are heavily influenced by economic sustainability and people’s wealth. However, given the recent worldwide downturn and trade conflict, people’s demand for products and services has declined dramatically, putting Watson & Boston and many other enterprises in a non-peak situation (Jortner et al., 2021).
• Social:Today’s age enjoys bravado. They enjoy beautifying themselves and sharing it with the rest of the world. This has opened up a world of possibilities for Watson and Boston. Nowadays, people do not need to go to a hairdresser for a head spa; instead, they want items that allow them to go to the spa at home.
• Legal:Watson & Boston spends more money on future research to create cutting-edge products and acquire market share. Watson & Boston’s business planner introduces new categories such as organic beauty goods.

SWOT analysis of Watson & Boston and competitors

Supply Chain 

Watson & Boston manufactures skincare and body care products from natural and organic ingredients for its clients. And the business will have to maintain the supplier relationship where the business planner gets the raw material. The business planner makes the distribution of products and services by various modes such as online delivery without charging a shipping amount and through referrals and advertisement (Ananda and Wisudawati, 2022).

Operations 

The customer will find out about the product and services through multiple modes such as social media platforms (Instagram and Facebook), referrals, reviews, feedback, and advertisement. The customer has made the payment by visiting the store physically. Another is by making the payment via online mode by using Paytm or Google pay (Wenny and Fitrianingrum, 2022).

Market Analysis

To maintain sustainability, the business planner must have to follow the rules and regulations related to CSR. The business planner must have to consider social responsibility while launching the business this would enhance the business growth (LeBaron, 2021).

Logistics

The Watson & Boston business provides multiple products and services under one roof to their clients. Another business planner provides home services to clients.

Business Owners 

The business planner is the business owner of the salon Watson & Boston. The business possesses a bachelor’s degree in finance and a master’s degree in marketing and finance. The company’s business owner also has experience of 9 years in the field of salon sector. Apart from this, the business owner also possesses the other certification course in the salon sector.

Entrepreneurial Team Background 

The business planner must forecast how many employees are required and the criteria for selecting the employee according to their qualification. The business planner must have to make the department analysis for this reason. After that choose the candidate who has sufficient qualifications and must also have communication skills. In the salon business communication skills plays an important role to attract various customers. The business planner must have to provide the training for at least 30 days to train the employees in the related field and after the probation period, the employees become permanent employees. The business planner must have to appoint or hire the right staff to achieve the business’s objective (Samson and Umar, 2020).

The HRP procedure is divided into four phases. They include analyzing:

• Current employee supply
• Projecting employee demand
• Balancing predicted employee demand with supply, and
• Assisting in the achievement of organizational objectives

Staff Required 

The business planner must have to fill multiple roles such as hair specialist, makeup specialist, manager, finance manager, staff boy, a person who manufactured the products and other employees.

The business planner is looking for employees who have good communication skills because it would attract larger clients. Another is the employees who have sufficient qualifications along with having a good standard of living and dressing style.

The finance manager will be responsible and accountant to maintain the accounting data and information. The hair specialist will provide hair services to their clients and the staff boy clean the office and serve the refreshment to clients and employees of the business (Pierce et al., 2021).

The business planner does not make any outsourcing for the particular field from the external environment because the business planner hires every specialist in the business.

The salon Watson & Boston will be organized and managed by a single owner who introduces the idea as a business planner. There is not any kind of partnership. This business is owned and run by a single owner.

Multiple members contribute to the success of the business and they are:

• Manager:The manager manages the day to day activities of the business and maintains the coordination among the employees and clients.
• Finance manager:The finance manager manages the company’s financial activities and the manager looks incomes and expenses of the company, which helps the business planner make effective decision and forecasting.
• Hair specialist:Hair specialist contributes to the success of the business by providing effective hair services to their clients that will directly increase the company’s revenue and enhance the business growth.
• Staff boy:Staff boy also contributes to the success of the business by maintaining the cleanliness in the salon, which would attract the consumer and make the environment fresher.

The business canvas of the Watson & Boston is as follows:

This picture depicts the business canvas of the salon Watson & Boston. The key resources for the business Watson & Boston will be high-quality content and brand reputation. This business is run by a single owner and as per the cost structure, 51% goes to the sales and marketing department. To build the brand image the employees must have communication skills as per the customer relationship (Thitisuda, 2019).

Supply Chain, Operations and Logistics

The business planner does not need to require any type of licensee or qualification for launching the Watson & Boston barbing salon in the UK. The business planner only needs to make the registration of the business through the registrar and has to obtain the GST and PAN card registration number

Another, the business planner has to acquire the environmental health sector license for the establishment of the business (Rosokhata and Chykalova, 2020).

The business planner must have to make the insurance for the salon to protect the business from any kind of disasters like theft and fire. The insurance covers the risk of the business by shifting the risk to a third party. Another business planner must have to make the pantry area or kitchen for their employees so they can use that area for relaxation.

The COVID pandemic increased inflation in the country, which would directly impact the company’s tax policy. Due to an increase in taxes the business planner has to raise the prices of the product and services.

Due to COVID, the business planner must launch the business as per the new guidelines and regulations everyone has to wear a mask and either maintain social distancing. Another business planner must put the sanitizing machine at entry and only allows the vaccinated people.

The business name is not known which failed recently but the business planner has found out the multiple salons which closed down during the pandemic of COVID 19 and due to this, many businesses have grown through the huge amount of loss. During the first quarter, only sales go down, but after the lockdown, clients stop visiting the store, forcing the salon closure.

The business planner learned from this obstacle is that they compared the beauty company’s recuperation to each situation, taking into account two key aspects: where and how grooming goods are offered, and what will be acquired.

The business planner takes the next level steps to mitigate these risks by reacting well to the situation, switching production to sanitizers as well as washing chemicals and providing free makeup services to the first responder. Another provides free home delivery services to its clients.

Strength as a leader: At the same time, representatives must do everything possible to ensure that businesses succeed in the future and earn higher profits.

Weakness as a leader: Unable to understand the reason behind the decreasing sales and inability to manage the team effectively due to miscommunication which impacts the quality of services.

The contingency plan is made by the business planner to mitigate those risks and after that, the business will run normally. The business planner can mitigate these risks by accumulating more reserves rather than distributing them as dividends (Huang and Lee, 2020).

Company Financial Needs

 
The business planner of the company would forecast the expenses and revenue of the company. The total expenses include variables and fixed expenses of £1,200,000 and £1,077,000 respectively. The revenue will be forecast by the planner as £3,250,000 and after meeting all the expenses the company will make a profit of £973,000 (Shumakova et al., 2018).

Break-Even Analysis 

 
The business planner of Watson and Boston must have made sales of 43080 per year to make the no profit or no loss situation. The breakeven point is the point where the company makes no profit or no loss situation (Sintha, 2020).

Required Funding

The Watson & Boston Salon required £2,850,000 million to introduce the business in the market.

• Firstly the business is funded by the business owner by around 25% (£7, 12,500 million) and this amount is used by the manager for launching the business.
• Then the business would take a loan of 50% from the banks and this amount is used by the manager for research and development.
• And 25 % remaining will be generated from the investors and this amount is used for expansion.

The business canvas of Watson & Boston will include key resources like employees and the high-quality content, customer relationships linked to effective communication, and 51% of sales and marketing is connected to the company’s cost structure.

The business planner has decided everything related to business and now in 12 months, the planner has to launch the business in the part of the UK for successful planning the planner considers multiple strategies.

The business planner of Watson and Boston make use of the material like make the deleted research regarding the salon sector in the UK and after that also studies the legal requirement of the UK related to salon sector. The business planner also forecasted the expenses and applied the breakeven formula to find out the no profit no loss situation.

Conclusion: The business planner required hiring a professional accountant to manage all relevant accounting information.

Reference

• Ananda, I.G.N.Y.A. and Wisudawati, N.N.S., 2022. THE INFLUENCE OF SOCIAL MEDIA MARKETING, CONTENT MARKETING AND BRAND IMAGE ON INSTAGRAM TOWARD BUYING INTEREST (A Case Study on Consumer at Dahlia Beauty Salon). JIM UPB (Jurnal Ilmiah Manajemen Universitas Putera Batam), 10(1), pp.38-50.
• Barra, S., Carta, S.M., Corriga, A., Podda, A.S. and Recupero, D.R., 2020. Deep learning and time series-to-image encoding for financial forecasting. IEEE/CAA Journal of Automatica Sinica, 7(3), pp.683-692.
• Huang, V.L. and Lee, S.K., 2020. Contingency plans: an introduction. Women & Performance: a journal of feminist theory, 30(1), pp.1-19.
• Jortner, D., Lanki, C. and Salz, J., 2021. An international perspective on the pandemic’s impact on Japanese theatre: J-Pest September 2020 Roundtable. English Journal of JSTR, 2(1), pp.40-69.
• LeBaron, G., 2021. The role of supply chains in the global business of forced labour. Journal of Supply Chain Management, 57(2), pp.29-42.
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• Pierce, L., Wang, L.W. and Zhang, D.J., 2021. Earnings Equality in Teams with Common Microgeographic Origins: Evidence from Laoxiang Guanxi in Chinese Beauty Salons.
• Riley, T.L., 2021. Small Business Hair Salon Owners Effective Marketing Strategies(Doctoral dissertation, Walden University).
• Rosokhata, A.S. and Chykalova, A., 2020. Marketing activities features for different classification types of business structures(Doctoral dissertation, Sumy State University).
• Samson, A.T. and Umar, D.M., 2020. An examination of the relationship between entrepreneurial creativity and firm performance. Journal of International Business and Management, 3(2), pp.1-18.
• Shumakova, O.V., Gapon, M.N., Blinov, O.A., Epanchintsev, V.Y. and Novikov, Y.I., 2018. Economic aspects of the creation of mobile units providing everyday services in off-road conditions in Western Siberia. Entrepreneurship and sustainability issues, 5(4), pp.736-747.
• Sintha, L., 2020. Importance of Break-Even Analysis for the Micro, Small and Medium Enterprises. International Journal of Research-Granthaalayah, 8(6).
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• Thitisuda, S., 2019. A STUDY OF BUSINESS PLAN DEVELOPMENT OF NAIL SALON IN BANGKOK(Doctoral dissertation, Mahidol University).
• Veerupen, N., 2021. Starting a Business in the Beauty Sector in Turkey Remotely.
• Wenny, W. and Fitrianingrum, A., 2022, February. Designed The Digital Service as Revisit Intention Program During Pandemic For The Beauty Salon. In ConCEPt-Conference on Community Engagement Project(Vol. 2, No. 1, pp. 202-213).
• Yuliazmi, Y. and Gata, G., 2020. Application of E-CRM in Salon Business in Increasing Loyalty and Service to Customers. Jurnal RESTI (Rekayasa Sistem Dan Teknologi Informasi), 4(2), pp.268-275.

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