ENTREPRENEURSHIP MANAGEMENT

A project on
MANAGING THE EARLY GROWTH OF
BUSINESS

Submitted by:
Divya Patil - 2019129
Advait Parkhi - 2019126
Keyur Patankar - 2019127
Honey Shah - 2019149
Managing The Early Growth of Startup: Mobile
Beauty Salon

INTRODUCTION
The beauty industry is booming these days. This makes it a great time to
get into the business, or expand your existing business. There are plenty
of ways to do so, but today we’re going to talk specifically about Mobile
enterprises.
They are gaining in popularity across the country. Entrepreneurs are
turning to these businesses on wheels because they are a fairly
inexpensive and easy way to start a business. They are not just ice cream
trucks or food vendors; mobile businesses have grown to encompass an
eclectic mix. Across the country, florists, hair stylists and even dancers
are gutting old vehicles and are turning them into decked-out mobile
shops, avoiding the overhead costs associated with brick. “Customers
can now enjoy all the benefits and privacy of visiting a salon with only
going a few steps from their home."
It isn't only the extra attention that makes the beauty
truck trend appealing to entrepreneurs. As they expand their brand's
reach, here is a look at four benefits of going mobile – and what you can
learn by taking your business on the road.

Smart entrepreneurs know that there are many benefits to taking a

company mobile. Here are the top four reasons to get going:

1- Drive to Your Market – Taking your skin care business on the

road means you can travel to your customer’s homes or offices.
Convenience is a great competitive advantage that you can tap to grow
sales. The incredible flexibility allows you to make your own market
area instead of depending on a walk by traffic in a stationary salon. Plus,
your vehicle will be fully equipped so you don’t need to pack every time
you travel to see a client.

2- Meet Your Customers Nationwide – Many beauty businesses

are located online via e-commerce websites and find that having a
mobile beauty van can be a wonderfully effective promotional method to
connecting with their customers’ face-to-face right in their hometowns.
Drive your van to street fairs, county events, and food festivals to meet
and greet with both existing and new buyers.

3- Eliminate Expensive Rents – Opening a salon on wheels is

substantially cheaper than leasing commercial space. Also, you can
avoid issues with increasing rental payments and uncertain lease
renewals with your own beauty truck. Yes, you will need to factor in
your gas costs as part of your business overhead expenses. Successful
mobile beauty experts recommend getting guaranteed business gigs such
as bridal shows and birthday parties as your best profit maker.

4- Test Demonstration Products – Many larger cosmetic brands

such as Votre Vu, uses their mobile spas, theirs is an Airstream named
vuBAR, to test new product concepts and treatments. The transient
nature of mobile beauty vans allows for daring experimentation to
introduce new items and gauging customer interest while collecting
valuable feedback to improve the line before launching nationally.

Pros and Cons

If you’re on the path of a mobile salon there are a number of things to
keep in mind. On the positive end you have:

 No rent – If you open a mobile beauty business, you don’t have to

rent a space for your salon. Instead, all you need is a bag to hold
your equipment. You don’t even need a car, though depending on
where you live, it can be more convenient than a taxi or bus.
 You’re your own boss – The hours you work are up to you. That
means no more scheduling shifts, or being available on the days
your employer wants.
 You set the rates and get all the money – When you set up your
own mobile barbershop business, you get to set the rates. That
means you charge what you think your services are worth, and
keep the full amount.

On the less positive side:

 You’re always on call – You may not have a boss telling you
when to come in, but you have a personalized service. This means
you will often feel pressure to be available when clients want. And
this often includes evenings and weekends.
 Drumming up business is up to you – As with any business,
when becoming a mobile hairdresser, the responsibility is on you
to build your client base. If you don’t bring in customers, you don’t
get paid.
 The fear factor – Working with strangers can be scary. You may
want to be selective in the customers you take, to protect yourself.
For example, you may decide you want to work only with women,
at non-smoking homes, or places without dogs.
About Company:
The name of our company is Beauty On Wheels™; we are a registered
and standard mobile salon business that is currently operating in Mumbai.
At Beauty On Wheels™, we are passionate in the pursuit of excellence
and financial success with uncompromising services and integrity which
is why we have decided to start our own mobile salon business; we are in
the industry to make a positive mark.
We are quite optimistic that our values and quality of service offering will
help us drive our mobile salon business to enviable heights and also help
us attract the numbers of clients that will make the business highly
profitable. We are a company that will be dedicated to establishing good
business relationship with our clients giving them value for their money
and reasons for them to hire our services over and over again.
We are quite aware that in order to become the number one choice in our
city, we must continue to deliver quality and affordable services and that
is exactly what we will do. We are open to the use of latest technology in
the Salons industry. No doubt our excellent customer service, honesty and
the range of services we offer will position us to always welcome repeated
customers.

Our Service Offerings

Beauty On Wheels™ Mobile Salon Company is a standard and well –
equipped mobile salon company that offers a wide range of services that
revolves around the Hair & Beauty Salons industry and other
complementary services. We intend giving our customers every reason to
always hire our services which is why we have customized our services.
Basically, our services will involve us going out to services of clients’
needs. These are the services we will offer as a mobile salon company;

 Haircutting services
 Hair coloring services
 Other hair services
 Resale of merchandise and cosmetic products
 Skin care services
 Manicure and pedicure services
 Massage Services
 Providing hairstyling services
 Providing temporary makeup services
 Providing facials and skin care services
 Other complimentary services

Our Mission and Vision Statement

 Our Vision is to become the number one mobile salon company in
the country.
 Our mission as a mobile salon company is to develop a highly
successful, and profitable – all round mobile hair salon business
which provides quality hair dressing and beauty services in our
community and to become a standard for an ideal mobile salon
business.
Our Business Structure
We are quite aware that the success of any business lies in the foundation
on which the business is built on, which is why we have decided to build
our mobile salon company on the right business foundation.
As a matter of fact, we are set out to build a mobile salon business that
will be a standard for the mobile salon line of business in the India. We
want to build a business of dedicated workforce who will go all the way
to ensure that our customers are satisfied and they get value for their
money.
In other to achieve this, we aware that it takes a business with the right
employees and structure to achieve all what we have set to achieve, which
is why will be putting structures and processes in place that will help us
deliver excellent services and run the business on auto pilot.
The success of our mobile salon business will be anchored on the team
not on any individual. With the wide range of our service offerings, we
are only expected to employ more than it is required to run a conventional
mobile salon business.
Definitely, we will have various employees to man the various services
offering of Beauty On Wheels™ Mobile Salon Company. Nora Bee™
Mobile Hair Salon Company will employ professionals and skilled people
to occupy the following position;

 Chief Stylist – Manager (Owner)

 Accountant / Cashier
 Marketing and Sales Executive
 Client Service Executive
 Field Workers (Mobile Hair Stylist, Hair Dressers and Beauticians
et al) (6)
 Truck / Van` Driver
Job Roles and Responsibilities
Manager (Owner):
 Responsible for providing direction for the business
 Creating, communicating, and implementing the organization’s
vision, mission, and overall direction – i.e. leading the development
and implementation of the overall organization’s strategy.
 Responsible for fixing prices and signing business deals and
payment of salaries
 Responsible for signing checks and documents on behalf of the
company
 Evaluates the success of the organization
 Responsible for managing the daily activities in the organization
 Prepares budget and reports for the organization
 Defining job positions for recruitment and managing interviewing
process
 Responsible for overseeing the smooth running of HR and
administrative tasks for the organization
 Design job descriptions with KPI to drive performance management
for all employees
 Regularly hold meetings with key stakeholders (clients and member
of the board) to review the effectiveness of the business Policies,
Procedures and Processes
 Maintains office supplies by checking stocks; placing and
expediting orders; evaluating new products.
  Ensures operation of equipment by completing preventive
maintenance requirements; calling for repairs.
Marketing and Sales Executive
 Identify, prioritize, and reach out to new clients, and business
opportunities et al
 Identifies development opportunities; follows up on development
leads and contacts; participates in the structuring and financing of
projects; assures the completion of project.
 Writing winning proposal documents, negotiate fees and rates in line
with organizations’ policy
 Responsible for handling business research, market surveys and
feasibility studies for clients
 Responsible for supervising implementation, advocate for the
customer’s needs, and communicate with clients
 Develop, execute and evaluate new plans for expanding increase
sales
 Document all customer contact and information
 Represent Beauty On Wheels™ Mobile Hair Salon Company in
strategic meetings
 Help increase sales and growth for Beauty On Wheels™ Mobile
Hair Company.
Accountant / Cashier
 Responsible for preparing financial reports, budgets, and financial
statements for the organization
 Provides managements with financial analyses, development
budgets, and accounting reports; analyzes financial feasibility for
 the most complex proposed projects; conducts market research to
forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and
financial reporting for the organization
 Responsible for developing and managing financial systems and
policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for Beauty On Wheels™ Mobile
Salon Company
 Serves as internal auditor for Beauty On Wheels™ Mobile Salon
Company.
Client Service Executive
 Welcomes clients and visitors by greeting them in person or on the
telephone; answering or directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS
or phone) provides the client with a personalized customer service
experience of the highest level
 Through interaction with clients on the phone, uses every
opportunity to build client’s interest in the company’s products and
services
 Manages administrative duties assigned by the manager in an
effective and timely manner
 Consistently stays abreast of any new information on the
organizations’ products and, promotional campaigns etc. to ensure
 accurate and helpful information is supplied to clients when they
make enquiries

Field Workers (Hair Stylists, Hair Dressers and Barbers et al) (6):
 Responsible for handling haircutting services, hair coloring services
and other hair services
 Resale of merchandise and cosmetic products
 Handle skin care services
 Handle manicure and pedicure services
 Responsible for handling massage Services
 Providing hairstyling services
 Providing temporary makeup services
 Providing facials and skin care services
 Handle any other duty as assigned by the manager
Truck / Van Driver:
 Responsible for transporting equipment, supplies and workers to
project site
 Run errand for the organization
 Handle any other duty as assigned by the manager.
SWOT Analysis

Mobile salon business is one of the many businesses that can easily
generate sales with little stress as long as they are well positioned and
equipped to carry out their services. We are building a standard mobile
salon business with variety of services which is why we have decided to
subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal mobile salon business
without the stress of going through the required protocol of setting up a
new business including writing a detailed business plan, but because of
the nature of the kind of mobile salon business we want to establish, we
don’t have any option other than to follow due process.

Strength
Beauty on Wheels Mobile Salon Company is centrally located in a
densely populated industrial and residential area in Mumbai our location
is in fact one of our major strength. We have a well – equipped state of
the art mobile salon equipment and tools and we are also one of the very
few mobile salons in the whole of Mumbai that offers a wide range of
services for both households and corporate clients.
Another strength that counts for us is the power of our team; our
workforce and management. We have teams that are considered experts
in the salons industry, a team of hardworking and dedicated individuals.

Weakness
Beauty on Wheels Mobile Salon Company is a new business which is
owned by an individual (family), and we may not have the financial
muscle to sustain the kind of publicity we want to give our business. As
a new business, we are also quite aware that it will take time for us to
build trust with our clients. Moreover, we are operating on the busiest
streets of Mumbai. So the traffic situation and busy streets are a
challenge for us.
Opportunities
We are centrally located in one of the busiest area in Mumbai and we are
open to all the available opportunities that the city has to offer. Our
business concept also positioned us to be a one stop shop in the mobile
salon line of business.
The truth is that there are no standard and well – equipped mobile hair
salon businesses within the area where ours is going to be located; the
closest salon company to our proposed location is about 2 kilometers
away. In a nutshell, we do not have any direct competition within our
target market area.

Threats
Some of the threats that are likely going to confront Beauty on Wheels
Mobile Salon Company are unfavorable government policies, seasonal
fluctuations, demographic / social factors, downturn in the economy
which is likely going to affect consumers spending and of course
emergence of new competitors within the same location where our target
clients are located. Global Economy and various other factors arising
from it can also affect the purchasing power of the customers which in
turn can affect our business.
Target Market
Before choosing a location for our mobile salon business, we conducted
our feasibility studies and market survey and we were able to identify
those who will benefit greatly from our service offerings. Basically those
who will benefit from our service offering are households, hotels,
hospitals, hostels, and camp grounds et al. They cut across different
sectors of the economy.
The demographic component of those who need the services of mobile
hair salon services spreads across the public sector, the organized private
sector, and individuals from different strata of the society and from all
walks of life. Below is a list of the people and organizations that our
mobile hair salon services are designed for.
Businessmen are the main target for this business as they have to be well
groomed and have fewer time frames so they can book appointments
with us and we will operate as per their convenience.
Tourists are also one of the main targets as they don’t know the locality
and nearby area. Therefore, we can provide services at their place of
stay.
Catering to tourist will also help our publicity as they spread the word of
mouth which will help us in future for our business expansion.
These are our other target market: -

 Celebrities
 Busy business men and woman
 Households
 Corporate Executives
 Business People
 Hotels
 Hospitals
 Hostels
 Camp grounds
Pricing Strategy:
Our pricing system is going to be based on what is obtainable
in the hair salon industry cum mobile hair salon line of business, we don’t
intend to charge more (except for premium and customized services) and
we don’t intend to charge less than our competitors are offering in
Mumbai – India
Be that as it may, we have put plans in place to offer discount
services once in a while and also to reward our loyal customers especially
when they refer clients to us. The prices of our services will be same as
what is obtainable in the open market knowing fully well that home
services attract extra charges compare to what a conventional salon would
charge.
Marketing and Sales Strategy:
The marketing strategy for Beauty On Wheels Mobile Hair
Salon is going to be driven basically by excellent customer service,
honesty and quality service delivery. We will ensure that we build a loyal
customer base. We want to drive sales via the output of our jobs and via
referral from our satisfied customers. We are quite aware of how satisfied
customers drive business growth especially businesses like mobile hair
salon services. Beauty On Wheels Mobile Hair Salon is a mobile hair
salon business that is strategically located and we are going to maximize
the opportunities that is available which is why we spend more to locate
the business in a location that will be visible and enable us to access our
target market.
Our sales and marketing team will be recruited based on their
vast experience in the industry and they will be trained on a regular basis
so as to be well equipped to meet their targets and the overall goal of
Beauty On Wheels Mobile Hair Salon. Our goal is to grow Beauty On
Wheels Mobile Hair Salon to become the leading mobile hair salon
company in Mumbai which is why we have mapped out strategy that will
help us take advantage of the available market and grow to become a
major force to reckon with in the car hair salons industry. Beauty On
Wheels Mobile Hair Salon is set to make use of the following marketing
and sales strategies to attract clients;

 Introduce our mobile hair salon business by sending introductory

letters alongside our brochure to households, hotels, hospitals,
hostels, and camp grounds and key stake holders in Mumbai
 Print out fliers and business cards and strategically drop them in
offices, libraries, public facilities and train stations.
 Use friends and family to spread word about our business
 Post information about our company and the services we offer on
bulletin boards in places like schools, libraries, and local coffee
shops.
 Placing a small or classified advertisement in the newspaper, or
local publication about our company and the services we offer
 Leverage on referral networks such as agencies that will attract
clients who would need our customized services
 Advertise our mobile hair salon company in relevant magazines,
newspapers, TV stations, and radio station.
 Attend relevant expos, seminars, and business fares to market our
services.
 Engage in direct marketing approach.
 Encourage the use of word of mouth marketing from loyal and
satisfied students.
 Join local chambers of commerce and industry to market our
services.
Startup Expenditure (Budget Estimation):
In setting up a mobile hair salon business, the amount or cost
will depend on the approach and scale you want to undertake. If you
intend to go big by renting a place, then you would need a higher amount
of capital as you would need to ensure that your employees are well taken
care of. This means that the start-up can either be low or high depending
on your goals, vision and aspirations for your business.
The materials and equipment that will be used are nearly the
same cost everywhere, and any difference in prices would be minimal and
can be overlooked. As for the detailed cost analysis for starting a mobile
hair salon business; it might differ in other countries due to the value of
their money. However, this is what it would cost us to start our own
standard and world class mobile hair salon company in Mumbai;

 The Total Fee for Registering the Business in Mumbai– 65,000rs

 Legal expenses for obtaining licenses and permits – 30,000rs
 Marketing promotion expenses for the total amount of 13,000rs
(Commencement purpose only)
 Cost for hiring Business Consultant – 45,000rs
 Insurance (general liability, workers’ compensation and property
casualty) coverage at a total premium – 55,000rs
 Cost of accounting software, CRM software and Payroll Software
– 37,000rs
 Cost for leasing small office facility – 12,000rs p.m.
 Cost for facility re-modelling – 30,000rs
 Other start-up expenses including stationery – 20,000rs
 Phone and utility deposits – 10,000rs
 Operational cost for the first 3 months (salaries of employees,
payments of bills etc.) – 1,60,000rs
 The cost for Start-up inventory / supplies – 75,000rs
 Cost for the purchase of equipment (Hand dryers, comps, hair
washing kits, and towels et al) – 50,000rs
 The cost for the purchase of furniture and gadgets (Computers,
Printers, Telephone, TVs, Credit card machine, POS, tables and
chairs et al): 30,000rs
 The cost of Launching a Website: 2,000-6,000rs
 Cost for the rent of utility truck / mobile hair salon – 20,000rs p.m.

Please note that the amount is on the high side because we have
decided to start a business that does not revolve around one man; a
mobile hair salon business with the ideal business structure of a
business with the potential to grow and sell franchise in future.